IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v56y2024i53p6821-6838.html
   My bibliography  Save this article

The value of corporate cash holdings during the Covid-19 pandemic

Author

Listed:
  • Jan Pieter Veerhoek

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.

Suggested Citation

  • Jan Pieter Veerhoek, 2024. "The value of corporate cash holdings during the Covid-19 pandemic," Applied Economics, Taylor & Francis Journals, vol. 56(53), pages 6821-6838, November.
    • Handle: RePEc:taf:applec:v:56:y:2024:i:53:p:6821-6838
    DOI: 10.1080/00036846.2023.2276089
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2023.2276089
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2023.2276089?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:56:y:2024:i:53:p:6821-6838. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.