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The economic crisis triggered by the COVID‐19 urgently required active policy interventions to enhance the revival strategies of the world economy. This paper examines the effectiveness of policy intervention of the State Government of Kerala in India in mitigating the risks caused by the pandemic. The policy effectiveness is evaluated by analyzing the data collected from a sample of 300 beneficiaries with the help of descriptive statistics, ordered probit (OP) model, and semi nonparametric extended OP (SNEOP) model. Our results are assertive with the fact that state policies are effective in reviving the crisis‐hit economy as they have primarily helped low‐income groups and other marginalized communities. The majority of BPL families, self‐help group members, and social security beneficiaries rated government policies as highly or fairly effective. Though the policies are found to be highly effective among those who have suffered income loss, the study does not find sufficient evidence to believe that the government interventions are effective in helping those who have lost their jobs. The level of effectiveness is inversely related to age, education, and family size. Our results suggest that an extensive fiscal package is required to help people recover from the crisis. [ABSTRACT FROM AUTHOR]

This study examines whether investing in R&D reduces the impact of exogenous shocks like the COVID‐19 on stock market performance and accounting performance of manufacturing firms in India. For the sample of listed manufacturing firms, the paper finds that the firms engaged in R&D activities had lower negative cumulative abnormal return than those firms that did not invest in R&D in the pre‐pandemic period using multiple event windows. The result suggests that R&D investments can lower value erosion for the shareholders during a severe crisis period. Further, using a difference‐in‐difference fixed effects model, the study finds that manufacturing firms engaged in R&D activities in the pre‐pandemic period exhibited higher return on sales and growth of total income during the pandemic quarter vis‐à‐vis the non‐R&D firms. The favorable accounting performance indicates the possibility of firm‐level R&D being associated with the firm's ability to adjust its functioning during a crisis, thereby reducing the effect of the crisis. Finally, the study documents that government intervention to reduce the spread of the virus had a differential impact on firms based on their industry of operation. The findings have implications for investors, corporate managers, and policymakers in India. [ABSTRACT FROM AUTHOR]