The Chinese University of Hong Kong-Tsinghua University Joint Research Center for Chinese Economy 清華大學-香港中文大學中國經濟聯合研究中心 - COVID-19, firm exposure, and firm value: A tale of two lockdowns The Chinese University of Hong Kong-Tsinghua University <br/>Joint Research Center for Chinese Economy 清華大學-香港中文大學中國經濟聯合研究中心
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COVID-19, firm exposure, and firm value: A tale of two lockdowns
Haoyuan Ding, Haichao Fan, Shu Lin

We examine the stock market responses to two symbolic events in the outbreak of COVID-19: (1) the lockdown of Hubei province; and (2) the containment of the disease in China and its spread to overseas. Overall, market in China responded negatively (positively) to the first (second) event. Regression analysis reveals that, following the first event, firms with Hubei exposures earned significantly lower returns while those with foreign exposures earned significantly higher returns. Foreign exposures, however, had significantly negative effects on returns following the second event. The valuation effects of Hubei and foreign exposures also vary across firm ownership and industries.

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0034
COVID-19, firm exposure, and firm value: A tale of two lockdowns
Haoyuan Ding, Haichao Fan, Shu Lin

We examine the stock market responses to two symbolic events in the outbreak of COVID-19: (1) the lockdown of Hubei province; and (2) the containment of the disease in China and its spread to overseas. Overall, market in China responded negatively (positively) to the first (second) event. Regression analysis reveals that, following the first event, firms with Hubei exposures earned significantly lower returns while those with foreign exposures earned significantly higher returns. Foreign exposures, however, had significantly negative effects on returns following the second event. The valuation effects of Hubei and foreign exposures also vary across firm ownership and industries.

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