VGSF - WU Vienna - LC

Jiri Knesl, Saïd Business School, University of Oxford

Campus WU D3.0.225, online via MS Teams 13:30 - 14:30

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.

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Jiri Knesl, Saïd Busi­ness School, Uni­versity of Ox­ford

Work­ing from Home Dur­ing Cov­id-19: Cor­por­ate An­nounce­ments, Mar­ket Valu­ation, and Op­er­at­ing Per­form­ance

Fin­an­cial mar­kets sig­ni­fic­antly val­ued ob­serv­able work-­from-home ad­op­tion dur­ing the Cov­id-19 crisis. Fur­ther, work-­from-home ad­op­tion was pre­dicted by prior in­dustry-­level meas­ures of labor suit­ab­il­ity, con­trolling for firm char­ac­ter­ist­ics. To es­tab­lish these facts, we develop a unique data­set of vol­un­tary work-­from-home an­nounce­ments. In the five days after an an­nounce­ment, cu­mu­lat­ive ab­nor­mal stock re­turns reached 5%, and ab­nor­mal de­fault prob­ab­il­it­ies de­clined by ten basis points, with stronger ef­fects in non-es­sen­tial busi­nesses. Non-an­noun­cers with sim­ilar char­ac­ter­ist­ics ex­per­i­enced up to half the short-run valu­ation gains. Op­er­at­ing met­rics show Cov­id-period out­per­form­ance for both work- from-home ad­op­ters and their char­ac­ter­ist­ic-matches re­l­at­ive to other firms, with re­versal ap­pear­ing in the second quarter of 2021.



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