Financing firms in hibernation during the COVID-19 pandemic

Didier, Tatiana; Huneeus, Federico; Larraín, Mauricio; Schmukler, Sergio L.

doi:10.1016/j.jfs.2020.100837

Cited by 209 publications

(146 citation statements)

References 45 publications

(46 reference statements)

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“…Thus, if the pandemic or its effects are temporary which seems to be the general belief, the incentive to retain labor (and maintain current output levels) is stronger among firms that use relatively more skilled workers. Didier et al (2021) and Beck et al (2020) elaborate on the issue and provide supportive evidence. Thus, we predict that while having better access to finance helps firms avoid output cuts, this effect is much stronger for firms that tend to use more skilled vs. unskilled workers.…”

Section: Skilled Workersmentioning

confidence: 94%

Does Better Access to Finance Help Firms Deal with the COVID-19 Pandemic? Evidence from Firm-Level Survey Data

Amin¹,

Viganola²

2021

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Skilled Workersmentioning

confidence: 94%

Does Better Access to Finance Help Firms Deal with the COVID-19 Pandemic? Evidence from Firm-Level Survey Data

Amin¹,

Viganola²

2021

Policy Research Working Papers

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“…The outcome is likely to increase vulnerability in the non-financial sector, but the necessary government containment measures will lead to a return to a more stable financial system and thus to a stronger economic recovery. Banks were asked to support a government-led programme of providing emergency loans with permanent liquidity through credit facilities (Didier et al, 2021).…”

Section: Covid-19 Pandemic and The Financial Industrymentioning

confidence: 99%

Green finance and the economic threats during COVID-19 pandemic

Štreimikienė

Kaftan

2021

Terra Econ.

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Our paper aims at describing the links between green finance and sustainable development in the light of the environmental threats and natural disasters represented by the recent coronavirus pandemic caused by the COVID-19 virus. The recent situation heavily impacted on the financial and banking system and transformed the way it has functioned before. Moreover, it demonstrated that the banking system is more vulnerable than it should be. The banking sector has shown little capacity to absorb unexpected risks, owing to far-reaching international financial reforms. There are indications that some banks are on the verge of collapse, while some non-bank financial institutions and markets need immediate support. A decade after the financial crisis, the world is still struggling with the problems posed by the events of 2007-2009. Moreover, decisions taken during the crisis increased the risk that pandemic financial stress would develop into a banking crisis over time. Our paper shows that now there is a need for the creation of healthy environment marked by the carbon-free and environmentallyfriendly approaches, and the green finance might help us to achieve that goal. Our results make it clear that by promoting such instruments as green bonds, green loans and green mortgages stakeholders and policy-makers might help to create a more sustainable future for the people, their natural environment, and the economy as a whole.

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“…Schuknecht et al (2011) also write about the attempt to mitigate the consequences, and they see EU fiscal federalism as a potential solution to future crises. In relation to Covid-19 crisis, exogenous health shock is defined as the source of the crisis (Didier et al 2020). Therefore, Wilkes (2020) studied the impact of exogenous shock on the global recession, that is, it examines its severity and makes an assumption about the form of the recession.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Now, just over a year after the crisis began, many researchers and economists no longer share that optimism (Guillen, 2020), moreover, the expectations are more than worrying. In relation to the further course of the crisis, and the necessity of a "lockdown", according to Didier et al (2020), the crisis could have an "L" shape. Such scenario will happen if there are mass layoffs with the simultaneous abolition of certain jobs.…”

Section: Genesis Of Global Vs Pandemic Crisismentioning

confidence: 99%

“…What is certain is that changes are taking place in economic activity itself. As Didier et al (2020) assume, the pandemic will have long-term consequences on the nature of economic activity, which would mean expansion for some sectors on the one hand, or complete collapse for others. At the same time, changes are taking place on the demand side, as consumers have had very quickly adapted their recent habits to the new circumstances.…”

Section: Genesis Of Global Vs Pandemic Crisismentioning

confidence: 99%

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Effectiveness of bail-out mechanisms in the Eurozone: Global vs. pandemic crisis

Beljić¹,

Glavaški²

2021

Anali Ekon fak Subotica

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This paper analyses the effectiveness of bail-out mechanisms after the global crisis in comparison to Covid-19 pandemic crisis in the selected Eurozone economies. It seems that in the circumstances of global instability, laissez-faire rules in economy are not enough, meaning that government interventions are desirable and unavoidable. In the Eurozone, the implementation of bail-out programs is related with the problem of a new "impossible trinity" and no-bail out clause. However, the adopted clause on non-use of the bail-out mechanism has had to be ignored several times in the past, and those implementations of bail-outs are focus of this paper. The research is based on descriptive statistical analysis and fixed panel model specification using available data in relation to the bail-out programs in the period 2011-2020 in selected Eurozone economies. The research shows that governments appear to have learned at least three lessons from the global crisis in relation to the bail-out mechanisms: (a) the need for quick implementation of emergency measures, (b) the bail-out mechanism was effective in reducing the fiscal deficit, however, caused an increase in the public debt, and (c) strengthening the fiscal framework of the Eurozone economies by defining supranational fiscal rules remains the essence of a stronger Eurozone and the European Union.

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Financing firms in hibernation during the COVID-19 pandemic

Cited by 209 publications

References 45 publications

Does Better Access to Finance Help Firms Deal with the COVID-19 Pandemic? Evidence from Firm-Level Survey Data

Does Better Access to Finance Help Firms Deal with the COVID-19 Pandemic? Evidence from Firm-Level Survey Data

Green finance and the economic threats during COVID-19 pandemic

Effectiveness of bail-out mechanisms in the Eurozone: Global vs. pandemic crisis

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