Short-term working allowance and firm risk in the post-COVID-19 period: Novel matching evidence from an emerging market


DORUK Ö. T. , KONUK S., ATICI R.

Finance Research Letters, 2021 (Journal Indexed in SCI Expanded) identifier

  • Publication Type: Article / Article
  • Volume:
  • Publication Date: 2021
  • Doi Number: 10.1016/j.frl.2021.102021
  • Title of Journal : Finance Research Letters
  • Keywords: COVID-19 period, Firm risk, Propensity score matching, Short-term working allowance, Turkish economy

Abstract

© 2021In the present study, we examine the effect of government fiscal policy on firm risk in the post-COVID-19 period for an emerging market: Turkey. By doing so, we utilize a propensity score matching method to examine the effect of the short-term working allowance, which is a unique short-term COVID-19 mitigation policy for the Turkish economy, on firm risk. The obtained findings show that the effect of short-term working allowances on firm risk is efficient at mitigating the effect of COVID-19. Our results are also robust as to different robustness checks.