COVID-19 Impact, Sustainability Performance and Firm Value: International Evidence

Accounting & Finance, 61(2), https://doi.org/10.1111/acfi.12801

49 Pages Posted: 14 Apr 2021 Last revised: 11 May 2021

See all articles by Sudipta Bose

Sudipta Bose

Discipline of Accounting and Finance, Newcastle Business School, The University of Newcastle, Sydney, Australia

Syed Shams

University of Southern Queensland

Muhammad Jahangir Ali

La Trobe University - Department of Accounting and Management

Dessalegn Mihret

RMIT University

Date Written: April 12, 2021

Abstract

We examine the impact of COVID-19 on changes in firm value, and the moderating role of firm-level sustainability performance on this relationship. We find that firms domiciled in countries where the COVID-19 impact is more devastating experience greater decline in firm value. The negative impact of COVID-19 on firm value is less pronounced for firms with better sustainability performance. Firms domiciled in countries with a higher level of environmental- and stakeholder-value-oriented culture experience less decline in firm value from the impact of COVID-19. Findings suggest a firm’s stakeholder-value orientation contributes to preserving a firm’s value when general stakeholder value declines.

Keywords: COVID-19, Coronavirus, Stakeholder value, Firm value, Sustainability performance; Environmental-value culture; Cross-country

JEL Classification: G32; I10; M14; M40; M41; M49

Suggested Citation

Bose, Sudipta and Shams, Syed and Ali, Muhammad Jahangir and Mihret, Dessalegn, COVID-19 Impact, Sustainability Performance and Firm Value: International Evidence (April 12, 2021). Accounting & Finance, 61(2), https://doi.org/10.1111/acfi.12801, Available at SSRN: https://ssrn.com/abstract=3824647 or http://dx.doi.org/10.2139/ssrn.3824647

Sudipta Bose (Contact Author)

Discipline of Accounting and Finance, Newcastle Business School, The University of Newcastle, Sydney, Australia ( email )

Sydney
Australia

HOME PAGE: http://www.newcastle.edu.au/profile/sudipta-bose

Syed Shams

University of Southern Queensland ( email )

Sprinfield
Springfield
Springfield, Queensland 4300
Australia
+61734704551 (Phone)

Muhammad Jahangir Ali

La Trobe University - Department of Accounting and Management ( email )

Department of Economics and Finance
Victoria 3552, 3086
Australia

Dessalegn Mihret

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

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