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Resilience and Asset Pricing in COVID-19 Disaster

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  • Elham Daadmehr

    (Department of Economics and Management “Marco Fanno”, University of Padua, 35123 Padova, Italy)

Abstract

The COVID-19 pandemic potentially affected stock prices in two non-mutually exclusive ways: discount rates and cash flows. This paper focuses on the latter and analyzes it through the lens of an asset-pricing model. It shows how workplace resilience and financial resilience interacted and significantly affected asset prices. The model-based equity premium increases with the probability of a disaster. The results suggest the significant amplification of workplace resilience by financial resilience. Specifically, the dividend growth of low-resilience firms is significantly more responsive to workplace flexibility and suffers more severely than that of high-resilience firms.

Suggested Citation

  • Elham Daadmehr, 2025. "Resilience and Asset Pricing in COVID-19 Disaster," Economies, MDPI, vol. 13(5), pages 1-35, May.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:5:p:123-:d:1647736
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    References listed on IDEAS

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