Premium
COVID‐19 impact, sustainability performance and firm value: international evidence
Author(s) -
Bose Sudipta,
Shams Syed,
Ali Muhammad Jahangir,
Mihret Dessalegn
Publication year - 2022
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12801
Subject(s) - sustainability , value (mathematics) , enterprise value , stakeholder , business , covid-19 , stakeholder theory , economics , accounting , medicine , ecology , management , disease , pathology , machine learning , computer science , infectious disease (medical specialty) , biology
We examine the impact of COVID‐19 on changes in firm value, and the moderating role of firm‐level sustainability performance on this relationship. We find that firms domiciled in countries where the COVID‐19 impact is more devastating experienced greater decline in firm value. The negative impact of COVID‐19 on firm value is less pronounced for firms with better sustainability performance. Firms domiciled in countries with higher levels of environmental‐ and stakeholder‐value‐oriented culture experienced less decline in firm value from the impact of COVID‐19. Findings suggest a firm’s stakeholder‐value orientation contributes to preserving a firm’s value when general stakeholder value declines.