Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

Firm-Level Risk Exposures and Stock Returns in the Wake of COVID-19

Steven J. DAVIS, Stephen HANSEN, Cristhian SEMINARIO-AMEZ
Firm-level stock returns differ enormously in reaction to COVID-19 news. We characterize these reactions using the Risk Factors discussions in pre-pandemic 10-K filings and two text-analytic approaches: expert-curated dictionaries and supervised machine learning (ML). Bad COVID-19 news lowers return...
Keywords: COVID-19, Pandemic, Firm-level risk exposures, Stock Returns
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Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

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

Tarek A. HASSAN, Laurence VAN LENT, Stephan HOLLANDER, Ahmed TAHOUN
We construct text-based measures of the primary concerns listed firms associate with the spread of COVID-19 and other epidemic diseases. We identify which firms expect to lose or gain from a given epidemic, and textually decompose the epidemic’s effect on the firm’s demand and supply. We find th...
Keywords: Epidemic diseases, Pandemic, firms, uncertainty, sentiment, Computational linguistics
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2021

Firm News and Market Views: The Informational Role of Official Newspapers in China

Joseph D. PIOTROSKI, Tianyu ZHANG, T.J. WONG, Shubo ZHANG
State control can turn the media into the government’s mouthpiece and weaken the media’s incentives to meet market demands for corporate news. However, the media’s dependence on the government can strengthen its ability to access information about the government’s industrial and macro polici...
Keywords: Media information, Firm-specific information, Industry and market-wide information, emerging markets
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Annual Conference

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Corporate Finance

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May 2021

Firm Boundaries and Political Uncertainty: Evidence from State Elections in India

Arkodipta SARKAR
Using subsidiary-level data for Indian firms and staggered elections across Indian states, I find that political uncertainty’s impact on firm performance varies by organizational form. I find that the gap in leverage ratio between subsidiaries of conglomerate and stand-alone firms widen by 15% in ...
Keywords: Conglomerate, stand-alone, Political uncertainty, Leverage, Misallocation
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Annual Conference

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Senior Fellows/Fellows, Capital Market Development: China and Asia

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May 2013

Fire-sales and Information Advantage: When Bank-Affiliation Helps

Massimo MASSA, Lei ZHANG
We study how information flows within international financial conglomerates and how such a flow reduces the transmission of liquidity crisis due to fire-sales. We focus on the role of international institutional investors affiliated with banks during the 2008-2009 global financial crisis. We argue t...
Keywords: fire-sales, crisis, bank-affiliation, foreign ownership, liquidity
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