How important is social trust during the COVID-19 crisis period? Evidence from the Fed announcements.
Abnormal returns
COVID-19 crisis period
Event study
Leverage
Social trust
The Fed announcements
Journal
Journal of behavioral and experimental finance
ISSN: 2214-6350
Titre abrégé: J Behav Exp Finance
Pays: Netherlands
ID NLM: 101668718
Informations de publication
Date de publication:
Dec 2020
Dec 2020
Historique:
received:
08
07
2020
accepted:
11
08
2020
pubmed:
2
9
2020
medline:
2
9
2020
entrez:
2
9
2020
Statut:
ppublish
Résumé
During the COVID-19 crisis period, firms headquartered in high social trust US states perform better than their counterparts from the low social trust states. Stock returns over the crisis period are 3 to 4 percentage points higher, on average, if social trust increases by one standard deviation. The association is stronger for firms of more affected industries (COVID-19 industries). More specifically, a one standard deviation increase of social trust associates with a 6.45% increase of
Identifiants
pubmed: 32868990
doi: 10.1016/j.jbef.2020.100387
pii: S2214-6350(20)30314-2
pii: 100387
pmc: PMC7448732
doi:
Types de publication
Journal Article
Langues
eng
Pagination
100387Informations de copyright
© 2020 Elsevier B.V. All rights reserved.
Références
Financ Res Lett. 2020 Jul;35:101597
pubmed: 32550842
J Behav Exp Finance. 2020 Sep;27:100326
pubmed: 32292707
Financ Res Lett. 2020 Oct;36:101528
pubmed: 32837360
J Behav Exp Finance. 2020 Sep;27:100343
pubmed: 32427152
Int J Environ Res Public Health. 2020 Apr 18;17(8):
pubmed: 32325710