Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic.

Autor: Hoang HV; Lincoln University, Canterbury, New Zealand.; National Economics University, Hanoi, Viet Nam., Nguyen C; Lincoln University, Canterbury, New Zealand., Nguyen DK; IPAG Business School, France.; International School, Vietnam National University, Hanoi, Viet Nam.
Jazyk: angličtina
Zdroj: International review of financial analysis [Int Rev Financ Anal] 2022 Jan; Vol. 79, pp. 101975. Date of Electronic Publication: 2021 Nov 11.
DOI: 10.1016/j.irfa.2021.101975
Abstrakt: Small and medium-sized firms, particularly startups, are highly vulnerable to the COVID-19 pandemic because of their financial instability. Using a sample of listed startups across four countries, we investigate whether a startup's built-up capacity pre-COVID-19 can stimulate corporate immunity to endure the impact of the COVID-19 pandemic, reflected via stock performance. We find that the increase in the accumulated COVID-19 confirmed cases worsens stock returns and that the negative effect is alleviated if startups are greater in size as well as have low debt, large board size and CEO duality. Moreover, national cultural dimensions significantly moderate the relationship between stock returns and COVID-19. The COVID-19 negative impact is relieved in societies where people are more collectivistic and cooperative, less tolerant towards uncertainty, and more long-term oriented. Overall, our results support the consolidation of corporate capacities and suggest policymakers consider national culture when formulating COVID-19 or similar infectious pandemic strategies.
(© 2021 Elsevier Inc. All rights reserved.)
Databáze: MEDLINE
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