This paper investigates the influence of COVID-19 exposure and China exposure disclosed by companies in their annual reports on firm value. Research data were obtained from annual reports. The study used observations of 430 companies listed on the Indonesia Stock Exchange during 2019 and analyzed using ordinary least squares (OLS) with fixed industry effects and standard error estimation with Stata 17.0 software. The study also used the Heckman two-stage as a robustness test. The results show a positive and statistically significant relationship between COVID-19 and firm value. The same result is also shown in the relationship between China exposure and firm value. Our research provides evidence that exposure to the COVID-19 situation resulted in an increase in firm value during the period. Additionally, these results were found to be robust by the Heckman two-stage test. With these research findings, companies can identify factors that can influence an increase in firm value, including providing clear disclosure on company conditions such as COVID-19 and China exposure. Companies that comprehensively disclose their information during uncertain environmental situations will provide opportunities for them to generate a more positive performance, as stakeholders provided funding facilities for companies to pursue growth during the COVID-19 period. Therefore, the COVID-19 factor as a form of exposure for companies is expected to encourage companies to continue to adapt and innovate.

Original languageEnglish
Pages (from-to)213-227
Number of pages15
JournalHumanities and Social Sciences Letters
Issue number2
Publication statusPublished - 2023


  • COVID-19
  • China
  • Emergency case
  • Exposure
  • Firm value
  • Governance
  • Investor demand
  • Risk


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