ABSTRACT
This study examines the relationship between financial literacy and student attitudes toward graduate school. In the framework of human capital theory, we argue that graduate school is an investment in an individual's human capital that enhances future earnings capability. We hypothesize that during a weakened job market in conjunction with the COVID-19 pandemic that students who are more financially literate will demonstrate a more positive attitude toward a graduate degree as an appealing and rewarding capital investment than students with less financial literacy. Our robust results are consistent with our hypothesis. We argue that these findings have significant economic implications. (PsycInfo Database Record (c) 2022 APA, all rights reserved)
ABSTRACT
This study examines the relationship between financial literacy and student attitudes toward graduate school. In the framework of human capital theory, we argue that graduate school is an investment in an individual's human capital that enhances future earnings capability. We hypothesize that during a weakened job market in conjunction with the COVID‐19 pandemic that students who are more financially literate will demonstrate a more positive attitude toward a graduate degree as an appealing and rewarding capital investment than students with less financial literacy. Our robust results are consistent with our hypothesis. We argue that these findings have significant economic implications.
ABSTRACT
Using a sample of Chinese firms, we examine stock market reaction to firms that announce a change in their product lines to those related to COVID-19 management (medical masks and ventilators, among others). We find the market reacts positively to the announcements. In addition, when a firm ordinarily has a large share of export sales, the stock market reaction is more salient, indicating that export sales provide a certification effect that positively signals investors. Additional analysis on moderating effects suggest that, conditional on foreign sales, prior experience with medical product lines or less uncertainty about supply availability enhances the cumulative announcement returns (CARs), while the adverse impact of firm size on CAR magnifies.
ABSTRACT
Abstract Using the Hubei province in China as the COVID-19 pandemic epicenter and January 23, 2020 as the event date (the date the Chinese government announced the lockdown of Wuhan, the provincial capital), we document that while Chinese firms generally exhibited negative cumulative abnormal returns (CARs) around the event date, firms located far from the Hubei province experienced relatively less adverse impact by way of negative CARs than firms located close to and in the province. Moreover, firms that engaged strongly in corporate social responsibility (CSR) activities in terms of corporate donations prior to the event date experienced less of an adverse impact than those with no or weak CSR activities, suggesting that CSR serves an insurance-like function that alleviates the adverse impact on stock returns precipitated by the negative investor sentiment stemming from COVID-19.