Stock market reaction to COVID-19: evidence from U.S. Firms’ international exposure

Hue Hwa Au Yong, Elaine Laing

Research output: Contribution to journalArticleResearchpeer-review

4 Citations (Scopus)


We examine the U.S. stock market reaction to the World Health Organization's announcement declaring COVID-19 a global health emergency, with a focus on firms' international exposure. We find that while international exposure through foreign sales, foreign assets, imports and exports are significant and negatively associated with standardized cumulative abnormal returns in the short-run, the effect reverses in the long-run. In the long-run, internationalization contributes to multinational firms being more resilient to economic shocks caused by COVID-19.

Original languageEnglish
Article number101656
Number of pages13
JournalInternational Review of Financial Analysis
Publication statusPublished - Jul 2021


  • COVID-19
  • Geographical diversification
  • International exposure
  • Internationalization
  • Multinationality
  • Stock market reaction

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