IDEAS home Printed from https://ideas.repec.org/a/eme/ijoemp/ijoem-02-2023-0264.html
   My bibliography  Save this article

Is COVID-19 a turning point? Evidence from CEOs' investment behavior and risk tolerance

Author

Listed:
  • Md Jahidur Rahman
  • Hongtao Zhu
  • Sun Beiyi

Abstract

Purpose - This study explores the influence of the coronavirus disease 2019 (COVID-19) career experience on the investment behavior and risk tolerance of chief executive officers (CEOs). Specifically, this study focuses on CEOs' abilities to allocate financial assets and maintain solvency. Design/methodology/approach - This study adopts a comprehensive approach to analyze financial assets and asset-to-liability ratios. Financial data and individual information of CEOs from listed companies are collected from 2020Q1 to 2021Q4, along with statistics on confirmed COVID-19 cases. Instrumental and alternative variables are used to examine the robustness and endogeneity of the research, ensuring a thorough analysis. Findings - A significant positive correlation is revealed between CEOs' COVID-19 career experience and their capacity to effectively allocate financial assets. However, COVID-19 has a negative effect on firm performance in terms of solvency. These findings contribute to the empirical evidence linking the pandemic to company performance, representing part of the initial research in this area. Originality/value - The study suggests that the implementation of potential policy implications, such as loose monetary policies and tax and fee reduction measures, may alleviate the tax burden on listed companies.

Suggested Citation

  • Md Jahidur Rahman & Hongtao Zhu & Sun Beiyi, 2023. "Is COVID-19 a turning point? Evidence from CEOs' investment behavior and risk tolerance," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 20(7), pages 2935-2956, December.
    • Handle: RePEc:eme:ijoemp:ijoem-02-2023-0264
    DOI: 10.1108/IJOEM-02-2023-0264
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJOEM-02-2023-0264/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJOEM-02-2023-0264/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJOEM-02-2023-0264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijoemp:ijoem-02-2023-0264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.