Abstract
We evaluate whether the changes in valuation of U.S. corporates during the first wave of the COVID-19 pandemic depend on their downstream or upstream industries’ exposure to social distancing. Using a new dataset on sectoral dependence on the use and sale of intermediate goods, we find that firms whose downstream sectors are more affected by social distancing suffer from a greater decline in stock prices during the first quarter of 2020. Such an effect is mitigated for large firms.
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