Corporate governance and stock performance: The case of COVID-19 crisis

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27 Citations (Scopus)

Abstract

This paper analyzes the impact of COVID-19 on firm-level stock behaviors (including stock price volatility, trading volume and stock returns). Using US data, this paper examines whether confirmed cases (and deaths) of COVID-19 or COVID-19-associated online searches affect stock behaviors. The results show that our five COVID-19 proxies are all positively associated with stock price volatility and trading volume and negatively associated with stock returns. This paper further investigates the mitigating effect of corporate governance (viz., board and ownership structures) in this COVID-19 crisis. Overall, the results suggest that good corporate governance can mitigate the impact of COVID-19 on stock price volatility and trading volume but may not help to enhance stock returns. This paper also considers key policies used to tackle the COVID-19 pandemic and finds that government intervention plays an important role in stabilizing stock markets in this COVID-19 crisis.

Original languageEnglish
Article number106920
JournalJournal of Accounting and Public Policy
Volume41
Issue number4
DOIs
Publication statusPublished - 2022 Jul 1

All Science Journal Classification (ASJC) codes

  • Accounting
  • Sociology and Political Science

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