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Uncertainty, corporate investment, and hiring: The case of COVID-19

Year: 2024

Type: article

Abstract: We investigate how the COVID-19 pandemic affected CFOs’ self-assessed uncertainty about revenue growth and its impact on investment and hiring plans, using data from two consecutive surveys of the same CFOs conducted before and during the pandemic. Following the WHO's declaration, firm-level uncertainty increased, and investment plans were restrained. Furthermore, heightened firm-level uncertainty dampened firms' investment and hiring plans, even after controlling for other pandemic-related factors, as well as financial and investment flexibility.

Source: Economics Letters

DOI: 10.1016/j.econlet.2024.112025

Authors: John R. Graham, Naoshi Ikeda, Kotaro Inoue, Takashi Yamasaki

Institutions: Duke University, Nihon University, Institute of Science Tokyo, Kobe University

Language: English

Topic: COVID-19 Pandemic Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,980