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Short-term working allowance and firm risk in the post-COVID-19 period: Novel matching evidence from an emerging market

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  • Doruk, Ömer Tuğsal
  • Konuk, Serhat
  • Atici, Rümeysa

Abstract

In the present study, we examine the effect of government fiscal policy on firm risk in the post-COVID-19 period for an emerging market: Turkey. By doing so, we utilize a propensity score matching method to examine the effect of the short-term working allowance, which is a unique short-term COVID-19 mitigation policy for the Turkish economy, on firm risk. The obtained findings show that the effect of short-term working allowances on firm risk is efficient at mitigating the effect of COVID-19. Our results are also robust as to different robustness checks.

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  • Doruk, Ömer Tuğsal & Konuk, Serhat & Atici, Rümeysa, 2021. "Short-term working allowance and firm risk in the post-COVID-19 period: Novel matching evidence from an emerging market," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321001021
    DOI: 10.1016/j.frl.2021.102021
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    Cited by:

    1. Baihua Yuan & Wang Leiling & Hayot Berk Saydaliev & Vishal Dagar & Ángel Acevedo-Duque, 2022. "Testing the impact of fiscal policies for economic recovery: does monetary policy act as catalytic tool for economic Survival," Economic Change and Restructuring, Springer, vol. 55(4), pages 2215-2235, November.
    2. Iyer, Subramanian Rama & Simkins, Betty J., 2022. "COVID-19 and the Economy: Summary of research and future directions," Finance Research Letters, Elsevier, vol. 47(PB).
    3. Fasano, Francesco & Javier Sánchez-Vidal, F. & La Rocca, Maurizio, 2022. "The role of government policies for Italian firms during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 50(C).

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    More about this item

    Keywords

    Short-term working allowance; Turkish economy; Firm risk; COVID-19 period; Propensity score matching;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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