COVID-19 Impact, Sustainability Performance and Firm Value: International Evidence
Accounting & Finance, 62(1), https://doi.org/10.1111/acfi.12801
49 Pages Posted: 14 Apr 2021 Last revised: 3 Mar 2022
Date Written: April 12, 2021
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: Suggested Citation