The COVID-19 pandemic is a public health crisis that has triggered a global economic recession. We investigated COVID-19’s effect on firm performance through the case of the U.S. textile and apparel industry and showed that textile and apparel firms experienced a sharp decline in firm performance following the COVID-19 outbreak. Specifically, the textile and apparel industry has been affected more adversely than have other industries, including transportation, entertainment, and hospitality. Furthermore, COVID-19’s adverse effect on firm performance in the textile and apparel industry is greater than that of the 9/11 terrorist attacks and the 2008 recession. We additionally found that the Coronavirus Aid, Relief, and Economic Security (CARES) Act benefited the textile and apparel industry significantly more than other industries immediately following its announcement. The empirical findings of this study contribute to the existing literature by providing insight into the textile and apparel firms’ financial performance during the COVID-19 outbreak.

To maintain the pace of innovation and survive in today’s competitive global market, a growing number of textile companies are acquiring technology assets strategically through mergers and acquisitions (M&A). This study examines how technology-driven M&A affects firm performance in the U.S. textile industry using U.S. patent and stock market data spanning a 35-year timeframe (1980–2015). The study primarily compares technology-driven M&A stock performance with its non-technology-driven counterpart. The results suggest that technology-driven M&A lead to significantly improved stock performance immediately following the M&A announcement, whereas non-technology-driven M&A negatively impact acquiring firms’ stock market performance in both the short and long terms. This study provides direct insight into the impact of technological acquisition on shareholder value in the U.S. textile industry.