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

73 Pages Posted: 2 Apr 2020 Last revised: 3 Jun 2021

See all articles by Tarek A. Hassan

Tarek A. Hassan

Boston University; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Stephan Hollander

Tilburg University - Tilburg School of Economics and Management

Laurence van Lent

Frankfurt School of Finance and Management

Markus Schwedeler

Boston University

Ahmed Tahoun

London Business School

Multiple version iconThere are 4 versions of this paper

Date Written: May 31, 2021

Abstract

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 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.

Keywords: epidemic diseases, pandemic, firms, uncertainty, sentiment, computational linguistics

JEL Classification: E0, E6, F0, G12, I0

Suggested Citation

Hassan, Tarek Alexander and Hollander, Stephan and van Lent, Laurence and Schwedeler, Markus and Tahoun, Ahmed, Firm-Level Exposure to Epidemic Diseases: COVID-19, SARS, and H1N1 (May 31, 2021). Available at SSRN: https://ssrn.com/abstract=3566530 or http://dx.doi.org/10.2139/ssrn.3566530

Tarek Alexander Hassan

Boston University ( email )

270 Bay State Road
Boston, MA 02215
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stephan Hollander

Tilburg University - Tilburg School of Economics and Management ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands
+31 13 466 8288 (Phone)
+31 13 466 8001 (Fax)

HOME PAGE: http://www.uvt.nl/people/s.hollander

Laurence Van Lent (Contact Author)

Frankfurt School of Finance and Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.laurencevanlent.org

Markus Schwedeler

Boston University ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States

Ahmed Tahoun

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

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