Resilience and Asset Pricing in COVID-۱۹ Disaster

The COVID-۱۹ pandemic potentially affected stock prices in two, not mutually exclusive ways: discount rates and cash flows. This paper concentrates on the second and analyzes it through the lens of an asset pricing model. It shows how workplace resilience and financial resilience interacted and significantly affected asset prices. The model-based equity premium is increasing in the probability of disaster. Results suggest the significant amplification of workplace resilience by financial resilience. Specifically, the dividend growth of low-resilience firms is significantly more responsive to workplace flexibility and suffers more severely than that of high-resilience firms.

کلیدواژه ها:

financial resilience ، workplace resilience ، dynamic functional principal components ، Markov-Switching ، COVID-۱۹ disaster ، equity premium