Publication
Title
The value of corporate cash holdings during the Covid-19 pandemic
Author
Abstract
This paper investigates the value of corporate cash holdings during the recent COVID-19 pandemic. Based on a sample of 147,512 firm-quarter observations of 51 countries, I find that the value of cash holdings strongly increased at the start of the pandemic in 2021, but diminished again in the later part of the pandemic. Using country-level measures of the impact of the pandemic, I further document that the value of cash is higher for firms that are located in countries with higher infection rates of COVID-19. Finally, I find that the positive effect of COVID-19 on the value of cash holdings is stronger in weak corporate governance countries with high infection rates in the first year of the pandemic, which is consistent with the argument that the likelihood of cash abuse is reduced in countries with weak corporate governance where COVID-19 hits hard.
Language
English
Source (journal)
Applied economics. - Oxford, 1969, currens
Publication
Abingdon : Routledge journals, taylor & francis ltd , 2023
ISSN
0003-6846 [print]
1466-4283 [online]
DOI
10.1080/00036846.2023.2276089
Volume/pages
(2023) , p. 1-18
ISI
001097737000001
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 05.11.2024
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identifier
Creation 04.12.2023
Last edited 07.12.2023
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