Learning financial survival from disasters

Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408, Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725 and Muradoglu, Gulnur 2023. Learning financial survival from disasters. Journal of International Financial Markets, Institutions and Money 85 , 101778. 10.1016/j.intfin.2023.101778

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Abstract

This study examines how firms learn financial survival from experience, and how stock markets price this learning. We study American firms during the Covid turmoil which had prior exposure to the 2008 Global Financial Crisis. Our results show firms exposed to the 2008 Crisis had 95% higher monthly stock returns during Covid compared to their unexposed peers. This highlights the role major crises play in shaping organisational resilience. The organisational learning we illustrate includes a strong element of CEO learning but is not exclusive to senior management. Our empirical findings are stronger for firms in ‘shutdown sectors’ and persist after controlling for state interventions, as well as other control factors and estimation windows.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	1042-4431
Date of First Compliant Deposit:	24 April 2023
Date of Acceptance:	17 April 2023
Last Modified:	01 Jun 2023 07:22
URI:	https://orca.cardiff.ac.uk/id/eprint/159019

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