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An Econometric Approach on Performance and Financial Equilibrium during the COVID-19 Pandemic

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  • Larissa Batrancea

    (“Babes-Bolyai†University)

Abstract

On the account of the current pandemic crisis and recurrent lockdown periods, most of the companies around the world have registered massive decreases in sales, while others were forced to go bankrupt. In the same line, the New York Stock Exchange was seriously impacted by the lockdown measures enacted in countries all over the world. Nevertheless, despite this unprecedented context, large companies have managed to overcome challenges, continued their activities and even made important investments, thus increasing the trust of stock market players in their financial performance. The current study investigates the link between performance and liquidity on a sample of 34 companies listed on the New York Stock Exchange. Results show that liquidity significantly influenced company performance, which ultimately impacted on investors’ willingness to stay active on this capital market.

Suggested Citation

  • Larissa Batrancea, 2020. "An Econometric Approach on Performance and Financial Equilibrium during the COVID-19 Pandemic," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 801-808, December.
    • Handle: RePEc:ovi:oviste:v:xx:y:2020:i:2:p:801-808
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    References listed on IDEAS

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    Cited by:

    1. Larissa Batrancea, 2021. "The Nexus between Financial Performance and Equilibrium: Empirical Evidence on Publicly Traded Companies from the Global Financial Crisis Up to the COVID-19 Pandemic," JRFM, MDPI, vol. 14(5), pages 1-12, May.

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    More about this item

    Keywords

    liquidity; return on assets; return on equity; return on investments;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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