Stronger finances and CSR activities shield firms from COVID-19 stock market hits.
The study looked at how different companies were affected by the COVID-19 pandemic based on their financial health, exposure to the virus, corporate social responsibility, and leadership. Companies with stronger finances, less exposure to the virus, more CSR activities, and less entrenched executives saw smaller drops in their stock prices. Firms with more hedge fund ownership did worse, while those with more non-financial corporate ownership did better. This research is the first to analyze how companies around the world reacted to COVID-19 based on these factors.