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

In 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.