University of Zurich
Date and Location
Thursday, May 7th 2020 – 11:00 – 13:00
If you want to attend this webinar, please join via this link
The market reactions to the 2019 novel Coronavirus disease (COVID-19) shed light on the importance of international trade and financial policies for firm value. Initially, investors priced negative consequences for internationally-oriented US firms, especially those with China exposure. As the virus spread to Europe and the US, markets moved feverishly. Corporate debt and cash holdings emerged as important value drivers, relevant even after the Fed intervened in the bond market. The content and tone of conference calls mirror this development over time. Overall, the results illustrate how the health crisis morphed into an economic crisis amplified through financial channels.