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Firm-Level Exposure to Epidemic Diseases: COVID-19, SARS, and H1N1

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  • Tarek Alexander Hassan
  • Stephan Hollander
  • Laurence van Lent
  • Markus Schwedeler
  • Ahmed Tahoun

Abstract

We construct text-based measures of the primary concerns listed firms associated with the spread of COVID-19 and other epidemic diseases. We identify which firms perceive to lose or gain from a given epidemic and textually decompose the epidemic's effect on the firm's demand and supply. We find that the effects of COVID-19 manifest as a simultaneous shock to demand and supply, with both shocks affecting firms' market valuations in equal measure on average. By contrast, demand-related impacts appear more important in accounting for the observed collapse in firm-level investment during the COVID-19 crisis.

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  • Tarek Alexander Hassan & Stephan Hollander & Laurence van Lent & Markus Schwedeler & Ahmed Tahoun, 2020. "Firm-Level Exposure to Epidemic Diseases: COVID-19, SARS, and H1N1," NBER Working Papers 26971, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26971
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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F0 - International Economics - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • I0 - Health, Education, and Welfare - - General

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