The Effect of Firms' Information Exposure on Safeguarding Employee Health: Evidence from COVID-19

• 成果类型: Article
• 署名作者: Liu, Lisa Yao; Lu, Shirley
• 署名单位: Columbia University; Harvard University
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12471
• 发表日期: 2023
• 页码: 891-933
• 关键词: SOCIAL-RESPONSIBILITY; diffusion

摘要

We show that information exposure through international business networks enables firms to take proactive measures that benefit employees and potentially the local community. Specifically, in the early days of COVID-19, firms that have business networks with China and Italy are more likely to be aware of the severity of the disease, and proactively implement work-from-home (WFH) policies that can protect their employees. Using Safegraph foot traffic data, we find a higher stay-at-home ratio before local governments impose lockdowns in zip codes where firms have a larger information exposure. These areas are also associated with a lower spread of COVID-19. Our main findings are more pronounced when local governments face constraints in quickly responding to COVID-19 and when firms have a higher WFH capability or have more investors with socially responsible preferences. Collectively, we present evidence on the role of private corporations in mitigating the negative effects of a public health crisis before government intervention.