This paper investigates whether and how the COVID-19 pandemic affects bank funding costs in China. We find a significantly positive relationship between the offering yields of negotiable certificates of deposit and banks’ pandemic exposure. The surge in bank funding costs is alleviated by...

This paper studies the COVID-19 pandemic as an exogenous shock to investor uncertainty and examines the effects of uncertainty on stock liquidity. Analyzing data from Chinese listed firms, we find that stock liquidity dries up significantly in response to an increase in uncertainty resulting...

This study investigates whether and how the pandemic is priced in the bond market in China. Using data of COVID-19 daily confirmed cases by city, we find a significant positive relationship between the pandemic outbreak and corporate credit spreads, implying compensation for investor risk...