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. 2021 Mar 19;43:102002. doi: 10.1016/j.frl.2021.102002

Table 3.

COVID-19 Severity and state-level medical resources.

Panel A: Hospital beds
Dependent Variable: AR
(1) (2) (3)
Positive_Cases -9.565**
(-2.536)
Positive_Cases*Hospital_Beds 229.427**
(2.204)
Death_Cases -0.493***
(-2.628)
Death_Cases* Hospital_Beds 11.389**
(2.017)
Hospitalized_Cases -0.190**
(-2.113)
Hospitalized_Cases*Hospital_Beds 9.832***
(3.068)
Hospital_Beds -6.297 -11.952 -2.728
(-0.777) (-1.536) (-1.023)
Control variables Yes Yes Yes
Observations 393,097 393,097 393,097
Industry-fixed effects Yes Yes Yes
Month-fixed effects Yes Yes Yes
Cluster by firm Yes Yes Yes
Cluster by month Yes Yes Yes
Adjusted R-squared 0.067 0.067 0.067
Panel B: Physicians
Dependent Variable: AR
(1) (2) (3)
Positive_Cases -24.026**
(-2.370)
Positive_Cases*Physicians 1376.704***
(2.815)
Death_Cases -0.457***
(-3.074)
Death_Cases*Physicians 19.597**
(2.367)
Hospitalized_Cases -0.236***
(-2.668)
Hospitalized_Cases*Physicians 10.256***
(3.045)
Physicians 7.778 10.033 3.068
(0.271) (0.769) (0.385)
Control variables Yes Yes Yes
Observations 391,987 391,987 391,987
Industry-fixed effects Yes Yes Yes
Month-fixed effects Yes Yes Yes
Cluster by firm Yes Yes Yes
Cluster by month Yes Yes Yes
Adjusted R-squared 0.067 0.067 0.067

This table presents regression results of stock-level market-adjusted stock returns (AR) on interaction terms between COVID-19 severity measures and state-level medical resource measures. In Panel A, we interact each of the COVID-19 severity measures with the ratio of the number of hospital beds in a state over the state population (Hospital_Beds). In Panel B, we consider interaction terms between each of the COVID-19 severity measures and the ratio of the number of physicians in a state over the state population (Physicians). We include a constant term, industry-fixed effects, and month-fixed effects. t-statistics computed standard errors clustered at the industry and month-level (Petersen, 2009) are reported in parentheses. *, ** and *** denote significance at the 10%, 5% and 1% levels, respectively. Variable definitions and data sources are presented in Appendix A.