COVID-19 and the Value of CEOs

32 Pages Posted: 9 Jul 2020 Last revised: 6 Jul 2021

See all articles by Juan-Pedro Gomez

Juan-Pedro Gomez

IE Business School - IE University

Maxim Mironov

IE Business School, IE University

Date Written: July 2021

Abstract

In a sample of almost 3,000 firms from across 137 regions in 10 European countries, we investigate whether markets anticipate the potential loss of firm value in the event of a CEO falling sick and eventually dying of COVID-19. We use soccer games as “superspreader” events to instrument the regional number of infected cases per capita. Our results show that markets discount the vulnerability of older CEOs to virus spread. We interpret this as evidence of the value of CEOs in a major crisis.

Keywords: COVID-19, CEO value, soccer, stock returns, superspreader, market efficiency

JEL Classification: G01, G12, G14, M12

Suggested Citation

Gomez, Juan-Pedro and Mironov, Maxim, COVID-19 and the Value of CEOs (July 2021). Available at SSRN: https://ssrn.com/abstract=3645401 or http://dx.doi.org/10.2139/ssrn.3645401

Juan-Pedro Gomez (Contact Author)

IE Business School - IE University ( email )

Calle Maria de Molina 12
Madrid, Madrid 28006
Spain
+34 917821326 (Phone)

HOME PAGE: http://www.ie.edu/faculty/juan-pedro-gomez/

Maxim Mironov

IE Business School, IE University ( email )

Calle Maria de Molina 12, 4izda
Madrid, Madrid 28006
Spain

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