Does Absorptive Capacity Protect Shareholder Wealth in Times of Crisis? Evidence from the COVID-19 Pandemic
| Autor: | Amanjot Singh |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | American Business Review, Vol 25, Iss 1, Pp 83-91 (2022) |
| Druh dokumentu: | article |
| ISSN: | 0743-2348 2689-8810 |
| DOI: | 10.37625/abr.25.1.83-91 |
| Popis: | R&D capital increases firms’ ability to identify, absorb, and utilize new external information. Firms with absorptive capacity become resilient to external shocks while providing an opportunity to protect shareholder wealth during a crisis period. This study examines the role of firms’ absorptive capacity in protecting shareholder wealth around the COVID-19-induced stock market crisis. Our findings report that firms’ absorptive capacity is positively related to stock returns of US firms during the COVID-19 pandemic. This positive relationship exists irrespective of investor attention and is robust to the propensity-score-matching approach. Overall, the results imply that R&D capital makes firms resilient to external shocks. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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