Research on Pandemics 2021
DOI: 10.4324/9781003214687-9
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COVID-19 Pandemic and Firm-level Cash Holding—Moderating Effect of Goodwill and Goodwill Impairment

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 h… Show more

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Cited by 13 publications
(36 citation statements)
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“…A major negative impact is related to firm performances [24]. Today many firms, especially small and medium enterprises (SMEs), are struggling to find survival plans for the next quarter or next month [25,26]. To survive in this turbulent environment, organizations must be agile with dynamic capabilities.…”
Section: Innovation Technology and Coronavirus: State Of The Artmentioning
confidence: 99%
“…A major negative impact is related to firm performances [24]. Today many firms, especially small and medium enterprises (SMEs), are struggling to find survival plans for the next quarter or next month [25,26]. To survive in this turbulent environment, organizations must be agile with dynamic capabilities.…”
Section: Innovation Technology and Coronavirus: State Of The Artmentioning
confidence: 99%
“…5. Chen et al (2020); Devpura and Narayan (2020); Fu and Shen (2020); Gu et al (2020); Liu et al (2020); Mishra et al (2020); Narayan (2020); Narayan and Phan (2020); Phan and Narayan, 2020; Qin et al (2020); Shen et al (2020); Vidya and Prabheesh (2020); Yu et al (2020); Zhang et al (2020). …”
Section: Notesmentioning
confidence: 99%
“…Its impact on economy ( Makin and Layton, 2021 , Yoshino et al, 2021 , Yagi and Managi, 2021 ), government ( Sharma et al, 2020 , Tisdell, 2020 , Park and Chung, 2021 ) and publics ( Vally, 2020 , Watkins and Maruthappu, 2020 ) have unfolded. Given greater availability of data, the research about the effect of COVID-19 on stock market is rich and can be categorized into following aspects: (a) the negative effect of COVID-19 on firm and industry performances ( Gu et al, 2020 , He et al, 2020a , He et al, 2020b , Iyke, 2020a , Qin et al, 2020 , Xiong et al, 2020 ); (b) the increased stock return volatility due to the COVID-19 pandemic ( Dai et al, 2021 , Liu et al, 2020a , Liu et al, 2021 , Nguyen et al, 2021 , Phan and Narayan, 2020 ); (c) the fear sentiment because of the COVID-19 ( Ahmed, 2020 , Baig et al, 2020 , Hoang and Syed, 2021 ); (d) the risk contagion as a result of the COVID-19 pandemic ( Abuzayed et al, 2021 , Akhtaruzzaman et al, 2020 , Corbet et al, 2021 , Jiang et al, 2020 , Sharma, 2020 , Zhang et al, 2021 ). 1…”
Section: Literature Reviewmentioning
confidence: 99%