The Role of Inventory in Firm Resilience to the Covid‐19 Pandemic

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aut.relation.journalEuropean Financial Management
dc.contributor.authorDodd, Olga
dc.contributor.authorLiao, Shushu
dc.date.accessioned2024-10-14T03:32:21Z
dc.date.available2024-10-14T03:32:21Z
dc.date.issued2024-09-13
dc.description.abstractWe study the role of inventory in corporate resilience to Covid-19 in 2020, which triggered exogenous shocks to consumer demand, commodity prices and supply chains. Unexpected drops in consumer demand and commodity prices increase the costs of inventory. Conversely, inventory holdings can buffer against supply disruptions. Empirically, US firms with higher inventory experienced more negative stock market responses early in the crisis due to falling consumer demand. However, since May 2020, inventory has become valuable as a hedge against supply disruptions, improving firm performance. During Covid-19, unlike other crises, inventory played a unique role as a hedge against supply disruptions.
dc.identifier.citationEuropean Financial Management, ISSN: 1354-7798 (Print); 1468-036X (Online), Wiley. doi: 10.1111/eufm.12517
dc.identifier.doi10.1111/eufm.12517
dc.identifier.issn1354-7798
dc.identifier.issn1468-036X
dc.identifier.urihttp://hdl.handle.net/10292/18124
dc.publisherWiley
dc.relation.urihttps://onlinelibrary.wiley.com/doi/10.1111/eufm.12517
dc.rights© 2024 The Author(s). European Financial Management published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
dc.rights.accessrightsOpenAccess
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subject1502 Banking, Finance and Investment
dc.subjectFinance
dc.subject3501 Accounting, auditing and accountability
dc.subject3502 Banking, finance and investment
dc.titleThe Role of Inventory in Firm Resilience to the Covid‐19 Pandemic
dc.typeJournal Article
pubs.elements-id571209
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