COVID-19 Pandemic and Firm-level Cash Holding—Moderating Effect of Goodwill and Goodwill Impairment

By Xiu-Yuan Qin, Guoliang Huang, Huayu Shen, Mengyao Fu. Emerging markets finance & trade, 2020

134 citations recorded by the source corpus.

ABSTRACT The COVID-19 outbreak seriously affected all economies, especially the operations of listed companies, around the world. This article studies the impact of COVID-19 on firm-level cash holdings using the difference-in-differences method. It finds that COVID-19 has a significant positive impact on cash holdings in serious-impact industries. Goodwill and goodwill impairment can weaken this positive impact, which may be related to higher business risks in these firms. Therefore, managers should raise firms’ cash holding level during the pandemic to protect firms against contingencies. Managers should also be aware of financing constraints due to risks.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/9ba75e3713030403a84bff92679cbac2e2b95f2f

Citations in the corpus

• The Impact of Corporate Governance on Firm Performance During The COVID-19 Pandemic: Evidence from Malaysia (2021, unknown): “cash holdings (Qin et al., 2020), leverage (Slater, 2020), technology readiness (Sharma et al.”