Author: Liu, Hao; Yi, Xingjian; Yin, Libo
Title: The impact of operating flexibility on firms’ performance during the COVID-19 outbreak: Evidence from China Cord-id: omjgxgt2 Document date: 2020_10_20
ID: omjgxgt2
Snippet: This paper investigates the effect of firm-level operating flexibility on stock performance during the COVID-19 outbreak in China. We find that firm-level operating flexibility is significantly positively correlated with the cumulative abnormal stock returns that occurred during the event window, and this positive relation is more pronounced in firms in the provinces most affected by the epidemic. This positive relation is also more obvious in firms that have relatively fewer fixed assets. There
Document: This paper investigates the effect of firm-level operating flexibility on stock performance during the COVID-19 outbreak in China. We find that firm-level operating flexibility is significantly positively correlated with the cumulative abnormal stock returns that occurred during the event window, and this positive relation is more pronounced in firms in the provinces most affected by the epidemic. This positive relation is also more obvious in firms that have relatively fewer fixed assets. Therefore, our results provide direct empirical evidence that the real options embedded in operating flexibility played an important role during the COVID-19 outbreak.
Search related documents:
Co phrase search for related documents- abnormal stock return and lockdown announcement: 1
Co phrase search for related documents, hyperlinks ordered by date