Publications
Publications
- Forthcoming
- Journal of Accounting Research
The Effect of Firms' Information Exposure on Safeguarding Employee Health: Evidence from COVID-19
By: Lisa Yao Liu and Shirley Lu
Abstract
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.
Keywords
COVID-19 Pandemic; Networks; Knowledge Use and Leverage; Health Pandemics; Decision Choices and Conditions; Corporate Social Responsibility and Impact
Citation
Liu, Lisa Yao, and Shirley Lu. "The Effect of Firms' Information Exposure on Safeguarding Employee Health: Evidence from COVID-19." Journal of Accounting Research (forthcoming). (Pre-published online January 23, 2023.)