COVID-19’s Shock on Firms’ Liquidity and Bankruptcy: Evidence from the Great Recession

Famiglietti, Matthew; Leibovici, Fernando

doi:10.20955/es.2020.7

Cited by 8 publications

(10 citation statements)

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“…This implies that there are fewer firms filing for bankruptcy when they have not received any support. This raises the question of whether government support has delayed bankruptcy as firms potentially continue to operate despite being unproductive (Famiglietti & Leibovici, 2020).…”

Section: Descriptive Analysismentioning

confidence: 99%

Did government support delay bankruptcy during the pandemic?

Haini,

Loon,

Abdulwahab

et al. 2024

Economic Affairs

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The literature reports mixed findings on the role of government intervention, even during times of crisis. The recent Covid‐19 pandemic damaged the financial health of many small firms. This study examines whether government subsidies are associated with bankruptcy rates for firms with deteriorating financial health. Using a sample of 18,422 firms from 44 countries, we estimate a logistic model that accounts for rare events. Results indicate that those firms which receive government support are more likely to be associated with insolvency, even in the absence of liquidity issues and overdue financial obligations. Policy implications are discussed.

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Section: Descriptive Analysismentioning

confidence: 99%

Did government support delay bankruptcy during the pandemic?

Haini,

Loon,

Abdulwahab

et al. 2024

Economic Affairs

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“…However, crisis periods disrupt credit allocation processes, resulting in higher credit costs and limited availability (Khan, 2022). The recent pandemic has intensified this due to the supply and demand shock effects, and revenues of many firms are affected, yet continue to commit large expenditures (Famiglietti & Leibovici, 2020). Depressed business performance and low financing capacity led to worsening financial health (Zhang & Hu, 2021) and a risk of bankruptcy and insolvency (Brunnermeier & Krishnamurthy, 2020; Didier et al ., 2021).…”

Section: Introductionmentioning

confidence: 99%

“…In fact, empirical studies show that delinquent firms were significantly more likely to close during crisis periods (Famiglietti & Leibovici, 2020), and many firms that were affected by the pandemic suffered declines in liquidity levels and an increase in bankruptcy risk (Zhang & Hu, 2021; Khan, 2022). Thus, firms that suffer from weak financial health, i.e., low cash reserves and significant debt rollovers, had to plan deeper cuts in future investments and sold assets to fund operations (Liu et al ., 2021).…”

Section: Introductionmentioning

confidence: 99%

Digitalisation, Exports, Government Support and Firms' Finances during the COVID‐19 Pandemic: Evidence from Central and Eastern Europe*

Haini,

Borhanudin,

Loon

2023

J of App Econs and Policy

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This study examines whether digital technologies and exporting activities are associated with the likelihood of bankruptcy, liquidity issues and overdue financial obligations during the COVID‐19 pandemic. Restrictive measures and lockdowns during the pandemic led to the loss of revenue while incurring costs, resulting in financial issues. Using a sample of 8633 firms from the Central and Eastern economies, we estimate a logistic model and find the following: digitalisation is associated with a decrease in the likelihood of liquidity issues and overdue financial issues; exporting firms experience similar financial outcomes to non‐exporting firms; firms that expect or receive government support are associated with an increase in the probability of facing financial issues. Policy implications are discussed.

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“…Growth prospects are uncertain as most countries in the world require nonessential economic industries to close their doors to prevent the virus spreading. Hence, survival conditions appear to be compromised as many companies have seen their relationships and sales shrinking (Famiglietti and Leibovici, 2020).…”

Section: Introductionmentioning

confidence: 99%

New media marketing as a driver of enterprise country of origin (COO) offer in international markets

Vrontis¹,

Basile

2021

IJEBR

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PurposeThe paper aims to highlight the role of Web 2.0 in international marketing, shedding light on the relationships existing between the country of origin effect and consumer behavior.Design/methodology/approachThe current study, drawn on the country of the origin (COO)W literature and Web 2.0 diffusion data, investigates the relationships between country of origin – seen as an idiosyncratic entrepreneurial offer – and the consumer, within an international marketing framework. Specifically, the paper focuses on the increasing role of Web 2.0 and social media as tools enabling enterprises to create and maintain adaptive and networking capabilities and to implement international marketing strategies.FindingsThe findings presented here reveal that international marketing is becoming increasingly similar to domestic marketing because of social media development. In other words, it is becoming more and more difficult for international products to contain themselves within single markets as local issues seldom remain local.Originality/valueThis paper fills a gap in the international marketing literature focusing on how social media, particularly in a pandemic era, can improve and enhance relationships between the product of origin and consumer behavior both in the assessment and in the actual purchase of products.

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COVID-19’s Shock on Firms’ Liquidity and Bankruptcy: Evidence from the Great Recession

Cited by 8 publications

References 0 publications

Did government support delay bankruptcy during the pandemic?

Did government support delay bankruptcy during the pandemic?

Digitalisation, Exports, Government Support and Firms' Finances during the COVID‐19 Pandemic: Evidence from Central and Eastern Europe*

New media marketing as a driver of enterprise country of origin (COO) offer in international markets

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