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COVID‐19 impact, sustainability performance and firm value: international evidence

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  • Sudipta Bose
  • Syed Shams
  • Muhammad Jahangir Ali
  • Dessalegn Mihret

Abstract

We examine the impact of COVID‐19 on changes in firm value, and the moderating role of firm‐level sustainability performance on this relationship. We find that firms domiciled in countries where the COVID‐19 impact is more devastating experienced greater decline in firm value. The negative impact of COVID‐19 on firm value is less pronounced for firms with better sustainability performance. Firms domiciled in countries with higher levels of environmental‐ and stakeholder‐value‐oriented culture experienced less decline in firm value from the impact of COVID‐19. Findings suggest a firm’s stakeholder‐value orientation contributes to preserving a firm’s value when general stakeholder value declines.

Suggested Citation

  • Sudipta Bose & Syed Shams & Muhammad Jahangir Ali & Dessalegn Mihret, 2022. "COVID‐19 impact, sustainability performance and firm value: international evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 597-643, March.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:1:p:597-643
    DOI: 10.1111/acfi.12801
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    References listed on IDEAS

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    2. Samuel Buertey & Richard Ramsawak & Raymond K. Dziwornu & Yong‐Seok Lee, 2024. "Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 514-527, January.
    3. Beata Dratwińska-Kania & Aleksandra Ferens & Piotr Kania, 2023. "Transparent Reporting on Financial Assets as a Determinant of a Company’s Value—A Stakeholder’s Perspective during the SARS-CoV-2 Pandemic and beyond," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    4. Ardekani, Zahra Fozouni & Sobhani, Seyed Mohammad Javad & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "Transition to a sustainable food supply chain during disruptions: A study on the Brazilian food companies in the Covid-19 era," International Journal of Production Economics, Elsevier, vol. 257(C).
    5. Banu Dincer & Ayşe İrem Keskin & Caner Dincer, 2023. "Nexus between Sustainability Reporting and Firm Performance: Considering Industry Groups, Accounting, and Market Measures," Sustainability, MDPI, vol. 15(7), pages 1-13, March.
    6. Liu, Qingfu & Shi, Chen & Tse, Yiuman & Wang, Chuanjie, 2023. "The value of communication during pandemics," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    7. Faozi A. Almaqtari & Tamer Elsheikh & Omar Ikbal Tawfik & Mayada Abd El-Aziz Youssef, 2022. "Exploring the Impact of Sustainability, Board Characteristics, and Firm-Specifics on Firm Value: A Comparative Study of the United Kingdom and Turkey," Sustainability, MDPI, vol. 14(24), pages 1-27, December.
    8. María‐Florencia Amorelli & Isabel‐María García‐Sánchez, 2023. "Leadership in heels: Women on boards and sustainability in times of COVID‐19," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1987-2010, July.

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