Working Remotely and the Supply-Side Impact of COVID-19

By Dimitris Papanikolaou, Lawrence D. W. Schmidt. Review of Asset Pricing Studies, 2020

180 citations recorded by the source corpus.

Abstract We analyze the supply-side disruptions associated with COVID-19. We find that sectors in which a higher fraction of the workforce is not able to work remotely experienced greater declines in employment and expected revenue growth, worse stock market performance, and higher likelihood of default. The stock market overweights low-exposure industries. Thus, our findings cast light on the disconnect between stock market indices and aggregate outcomes. We combine these ex ante heterogeneous industry exposures with daily financial market data to create a stock return portfolio that tracks news about the supply-side disruptions resulting from the pandemic. (JEL G12, D22, H25, J20, E00) Received June 1, 2021; editorial decision August 16 2021, by Editor Jeffrey Pontiff.

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Citations in the corpus

Did the paycheck protection program hit the target? (2020, unknown): “…of the program in supporting liquidity for ﬁrms of different size, and how the distribution of funds varied with businesses’ ability to work remotely ( Erel and Liebersohn, 2020; Cororaton and Rosen, 2020; Papanikolaou and Schmidt, 2020; Morse and Bartlett, 2020; Chodorow-Reich et al., 2020 ).”
Work from Home Before and After the COVID-19 Outbreak (2020, unknown): “Su (2020). “The impact of the Covid-19 pandemic on the demand for density: Evidence from the US housing market”. In: Available at SSRN 3661052. Maestas, N., K. J. Mullen, D. Powell, T. von Wachter, and J. B. Wenger (2018). The Value of Working Conditions in the United States and Implications for the”
How Valuable Is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis (2020, unknown): “Similarly, Papanikolaou and Schmidt (2020) find that sectors in which a higher fraction of the workforce is not able to work remotely experienced significantly greater declines in employment and stock returns.”
Why Working from Home Will Stick (2020, background): “Davis et al. (2021), Favilukis et al. (2020), Pagano et al. (2020) and Papanikolaou and Schmidt (2020) study the relationship between firm-level stock returns during the COVID-19 pandemic and the capacity of their employees to work from home.”
A literature review of the economics of COVID‐19 (2020, unknown): “The degree to which economic activity is impaired by such social distancing measures depends largely on the capacity of firms to maintain business processes from the homes of workers (Alipour et al. 2020; Papanikolaou & Schmidt, 2020).”
Sheltering in place and domestic violence: Evidence from calls for service during COVID-19 (2020, unknown): “Approximately 35% of workers shifted to working remotely (Dingel and Neiman, 2020; Papanikolaou and Schmidt, 2020; Brynjolfsson et al., 2020) as public school children shifted to learning remotely.”
The Impact of Covid-19 on Productivity (2020, unknown): “Some examples include, Bartik et al. (2020a and 2020b), Brynjolfsson et al. (2020), Gourinchas et al. (2020), and Papanikolaou and Schmidt (2020) who show pervasive impacts on firms.”
The Unprecedented Stock Market Reaction to COVID-19 (2020, background): “Papanikolaou and Schmidt (2020) find higher returns in the wake of COVID-19 at firmswith a larger share of jobs that can be performed at home.”
A First Look at the Impact of COVID-19 on Commercial Real Estate Prices: Asset-Level Evidence (2020, unknown): “Third, the supply chain disruptions created by the pandemic may prevent firms from immediately reopening (Papanikolaou and Schmidt 2020).”