How did gold prices respond to the COVID-19 pandemic?

Paramati, Sudharshan Reddy; Shamsabadi, Hussein Abedi; Kummitha, Harshavardhan Reddy

doi:10.1080/13504851.2022.2117773

Cited by 3 publications

(1 citation statement)

References 11 publications

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“…The COVID-19 crisis, with its unique challenges, is completely different from the prior financial crunches in terms of severity, making enhancement even more difficult because it exposed company managers to a lack of liquidity (Tarkom 2022;He et al 2022b). So far, several studies have investigated the impact of the COVID-19 crunch on energy (Jia et al 2021;Shaikh 2022), interest rates (Lee et al 2023;Garcia et al 2023), exchange rates (Jamal and Bhat 2022;Jawad and Naz 2023), prices of gold and oil (Paramati et al 2023;Cui et al 2023;Terraza et al 2024), unemployment rates (Davidescu et al 2021), etc. Despite COVID-19 being of great importance in determining working capital management strategies, empirical evidence in different markets can rarely be found (Tarkom 2022).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

Tarighi,

Zimon,

Sheikh

et al. 2024

Risks

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The present study aims to investigate the impact of the COVID-19 crisis and firm risk on working capital management policies among manufacturing firms listed on the Tehran Stock Exchange (TSE). The study sample consists of 1200 observations and 200 companies listed on the TSE over a six-year period from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is ordinary least squares (OLS). The results show that the COVID-19 pandemic has led managers to increase current assets to total assets ratio (CATAR), current ratio (CR), quick ratio (QR), net working capital (NWC), cash to current assets (CTCA) ratio, while it has caused a decrease in operational cycle (OC), days account receivables (DAR), and current liabilities to total assets ratio (CLTAR). Furthermore, we find that the higher the company’s risk, the more managers are motivated to embrace the working capital investment policy, net working capital, cash to current assets ratio, and cash conversion efficiency (CCE). In general, our findings indicate that during times of crisis, Iranian companies tend to adopt conservative working capital policies to ensure sufficient liquidity to respond appropriately to unforeseen events. In this study, the theory of liquidity preference aligns with the observed behavior of firms in response to the COVID-19 crisis and firm risk, where the emphasis on liquidity and short-term financial stability becomes paramount.

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Section: Introductionmentioning

confidence: 99%

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

Tarighi,

Zimon,

Sheikh

et al. 2024

Risks

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A wavelet-based time-frequency dependency and safe haven attributes of gold: evidence from the Russia–Ukraine war

Velip,

Jambotkar,

Velip

2023

Applied Economics Letters

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The Impact of the COVID-19 Pandemic on the Volatility of Cryptocurrencies

Karagiannopoulou

Ragazou

Passas

et al. 2023

IJFS

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This study aimed to investigate the interactions between Bitcoin to euro, gold, and STOXX50 during the period of COVID-19. First, a bibliometric analysis based on the R package was applied to highlight the research trends in the field during the period of the COVID-19 pandemic. While investigating the effects of the pandemic on Bitcoin, the number of cases of COVID-19 was used as a proxy. Using daily data for the period 1 March 2020 to 3 March 2020 and based on a vector autoregressive model, impulse response, and variance decomposition were utilized to analyze the dynamic relationships among the variables. The results revealed that the COVID-19 cases and gold hurt the exchange rate of Bitcoin to euro, while there was great volatility regarding the response of Bitcoin to a shock of STOXX50. The Granger causality test was constructed to investigate the relationships among the variables. The results show the presence of unidirectional causality running from new cases to STOXX50 and from STOXX50 to gold. This study contributes to the existing scholarly research into the dynamic relationships that appeared among Bitcoin, gold, and STOXX50 in a period of great uncertainty. Finally, the findings have significant implications for investors, who are interested in diversifying their portfolios.

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How did gold prices respond to the COVID-19 pandemic?

Cited by 3 publications

References 11 publications

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

A wavelet-based time-frequency dependency and safe haven attributes of gold: evidence from the Russia–Ukraine war

The Impact of the COVID-19 Pandemic on the Volatility of Cryptocurrencies

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