Investment, Q and epidemic diseases

Tut D.

Finance Research Letters, vol.47, 2022 (SSCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 47
  • Publication Date: 2022
  • Doi Number: 10.1016/
  • Journal Name: Finance Research Letters
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM
  • Keywords: Capital expenditure, COVID-19, SARS, Ebola, Zika, Pandemic
  • TED University Affiliated: No


© 2022 Elsevier Inc.We study the effects of epidemic diseases on corporate investment. Epidemic diseases tend to be unanticipated and exogenous to firms’ decisions. Using difference-in-difference estimation strategy and a firm-level exposure to an epidemic disease measure, we find that corporate investment declines significantly following the onset of an epidemic disease. We also show that the COVID-19 pandemic has the strongest negative impact on investment when compared to the other most recent epidemic diseases.