COVID-19 Vaccinations, Business Activity, and Firm Value

Using establishment-level data, we show that COVID-19 vaccinations boost business activity and firm performance in the US. A ten percent increase in vaccination rates results in a 6.6 percent increase in customer visits. At the firm level, vaccinations increase sales and earnings, impact expansion decisions, and decrease probability of default and firm risk, but the benefits vary across businesses. We document the channels through which vaccinations increase store visits, and the limits to the effect of vaccines on business activity. Vaccinations create economically significant private benefits to firms, their shareholders and employees, in addition to their intended public health benefits.

Keywords: COVID-19, Vaccinations, Shareholder Value, Capital Markets, Firm Value, Foot Traffic, Store Visits, SafeGraph

JEL Classification: D21, G14, G30, G38, H12, H75, I12, I18, P16

Suggested Citation: Suggested Citation

Bizjak, John M. and Kalpathy, Swaminathan L. and Mihov, Vassil T. and Ren, Jue, COVID-19 Vaccinations, Business Activity, and Firm Value (May 18, 2023). Available at SSRN: https://ssrn.com/abstract=4170990 or http://dx.doi.org/10.2139/ssrn.4170990