COVID-19 Vaccinations, Business Activity, and Firm Value
59 Pages Posted: 26 Jul 2022 Last revised: 3 Apr 2024
Date Written: March 29, 2024
Abstract
Using establishment-level data, we show that COVID-19 vaccinations boost business activity and firm performance in the United States. A 10 percent increase in vaccination rates results in a 4 percent to 6 percent increase in customer visits. We document the channels through which vaccinations increase store visits and the limits to the effect of vaccines on business activity. At the firm level, vaccinations increase sales and earnings, impact expansion decisions, and decrease probability of default, but the benefits vary across businesses. Vaccinations create private economic benefits to firms, shareholders and employees, in addition to their intended public health benefits.
Keywords: COVID-19, Vaccinations, COVID Restrictions, Shareholder Value, Capital Markets, Firm Value, Foot Traffic, Store Visits, SafeGraph
JEL Classification: D21, G14, G30, G38, H12, H75, I12, I18, P16
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