Naslov
THE IMPACT OF COVID-19 ON THE COMPANY LIQUIDITY

Autori
Pepur, Petar ; Bašić, Ivica ; Laća, Stjepan

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Interdisciplinary management research 2021 / - Opatija, 2021, 757-769

Skup
17th Interdisciplinary Management Research (IMR 2021)

Mjesto i datum
Opatija, Hrvatska, 13.05.2021. - 15.05.2021

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Covid-19, cash flow, liquidity

Sažetak
The Covid-19 pandemic has seated new frame and new challenges in the business sector. The companies are faced with a possible economic shutdown, because the Covid-19 is putting pressure on business performance of companies from all sectors, with direct impact on revenues, profitability and liquidity. Under pandemic Covid-19 many companies have lower revenue which is resulting in less cash flow and also is affecting with delayed receivables collection. Companies’ liquidity suddenly becomes very challenging across the globe as the coronavirus pandemic rapidly escalates. Companies can operate in the short term without profitability, but without liquidity they are doomed to bankruptcy immediately. Cash flow is crucial in the pandemic days so companies should manage with the cash in best possible way, to ensure liquidity. The importance of cash flow has also been recognized by governments which have intervened with various measures especially directed for liquidity to help companies to overcome the Covid-19 situation. The fundamental question is whether Covid-19 pandemic has significantly affected company’s liquidity, so, the aim of this research is answer to this question. To explore Covid-19 correlation with company’s liquidity ratios, the data was taken from the web site of Zagreb Stock Exchange (www.zse.hr), where we collected data for 19 companies. Selected companies are included in the official stock index of the Zagreb Stock Exchange, Crobex as of 8th of September. Sample periods cover second and third quarter of 2020 which we compare with second and third quarter of 2019 and then we explore relationship between liquidity ratios of companies from Crobex with the level of Covid-19 which we measure by Covid-19 number of infected people. So the research objective was to explore if the changes in number of infected people in Croatia from Covid-19 had statistically significant impact on the company’s liquidity. The results show that increase in NFD/EBITDA ratio negatively and statistically significantly affects the current liquidity ratio, while increase in a number of infections from Covid-19 quarterly has a positive impact on current liquidity ratio.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA