Pandemic public health interventions and corporate communications: Evidence from China

Abstract

We investigate the impact of government public health interventions on corporate communications in this study. Based on a large quarterly sample of Chinese listed firms, we find firms respond positively to the growing information needs during the pandemic mainly through the promotion of online communications, despite government public health restrictions hindering offline investor relations activities significantly. Also, several firm characteristics including industry, financial constraints, and information asymmetry mediate the relationship between government restriction and different forms of communication. Overall, our paper provides evidence on how firms’ communications evolved in response to public health interventions.