Compliance with stay-at-home orders can be good news for shareholders

Press/Media: Article/Feature

Description

 

Period8 Jul 2020

Media contributions

1

Media contributions

  • TitleCompliance with stay-at-home orders can be good news for shareholders
    Degree of recognitionInternational
    Media name/outletVoxEU
    Media typeWeb
    Date8/07/20
    DescriptionStay-at-home orders, when effective, can save both lives and the economy. Even though the short-term economic impact is very significant, not getting the pandemic under control can impose even higher economic costs in the future. This column studies the market reactions following staggered lockdown events across US states during Covid-19. It finds that returns on firms located in lockdown states are higher following the lockdown. These reactions can be interpreted as reflecting updated beliefs of market participants in the light of events that follow the lockdowns, such as compliance with stay-at-home orders.
    URLhttps://voxeu.org/article/compliance-stay-home-orders-can-be-good-news-shareholders
    PersonsChen Chen, Sudipto Dasgupta, Thanh Huynh, Ying Xia