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Updated: Sep 29, 2025

Author Spotlight: Advancements in Multiplex Detection of Respiratory Viruses
Published on: November 10, 2023
Voluntary disclosure of pandemic exposure and stock price crash risk
Justin Jin1, Yi Liu2, Zehua Zhang3
1DeGroote School of Business, McMaster University, 1280 Main Street West, Hamilton, ON L8S 4L8, Canada.
Abstract:
We examine whether a firm's voluntary disclosure of pandemic exposure increases stock price crash risk in a turbulent stock market caused by the spread of COVID-19 and other epidemic diseases. Pandemic risk is an unprecedented type of economic shock that alters the firm's stock price. Using an innovative firm-level pandemic exposure dataset based on the textual analysis of earnings conference calls, we show that there is a strong positive correlation between firm-level disclosure of pandemic exposure and one-quarter-ahead stock price crash risk.
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