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Infectious disease and corporate activities

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  • Suleman, Muhammad Tahir
  • Yaghoubi, Mona

Abstract

We investigate the effect of equity market volatility due to infectious disease on U.S. firms’ corporate activities from 1985 to 2020. Consistent with the theoretical framework, firms decrease their debt levels, debt maturity, corporate investments and dividend payout, and increase their cash holdings, research and development expenditure.

Suggested Citation

  • Suleman, Muhammad Tahir & Yaghoubi, Mona, 2022. "Infectious disease and corporate activities," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000179
    DOI: 10.1016/j.econlet.2022.110302
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