| Abstract |
This study investigates the profound impact of the COVID-19 pandemic on firm risk, focusing on supply chain disruptions and their spillover effects on environmental commitments. The research highlights the crucial role of information channels in mitigating these challenges. Employing a Difference-in-Differences (DiD) regression design, the findings reveal a significant increase in default probability among US-incorporated firms with heightened foreign relationships post-COVID-19, particularly those connected to Chinese supply chains. Additionally, firms with foreign relationships show a decline in environmental commitments, suggesting prioritization of survival during adversity. Notably, companies with robust information channels with industry peers exhibit resilience against supply chain disruptions. |