Affiliation:
1. University of Technology and Applied Sciences, Oman
Abstract
This chapter reviews the literature on corporate financing decisions during a crisis. The COVID-19 pandemic impacted all walks of life: individual, corporate, and government. Decisions on corporate finance influence a firm's survival and growth and are influenced by many factors, like the investment opportunities, cost of capital, firm age, current capital structure, availability of funds, etc. This chapter sheds light on the factors that influence corporate financing during a crisis. Various crises, including the global financial crisis and COVID-19 crisis, influenced the corporate world, and corporate responses to these crises were detailed. The chapter reviews the empirical literature on the subject. It is observed that though the availability of external funds during a crisis is affected, corporates prefer to increase their leverage during a financial crisis when funds are required for operations. Similarly, the study also found that firms utilized retained earnings and deferred dividend payments during the crisis to make funds available to meet contingency and maintain sustainability.
Reference80 articles.
1. Factors Influencing Islamic Banks’ Capital Structure in Developing Economies.;A. A. B.Abdullah;Journal of Islamic Accounting and Business Research,2018
2. Ahood & Nobanee. (2021). Main Functions of Financial Management. Academic Press.
3. Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis
4. Akers, H. (2014). Key macroeconomic variables. EHow Contributor.
5. Al-Azzam, B. A.-D. (2022). Factors influencing the capital structure of Industrial Firms during the Covid 19: Evidence from Jordanian firms. Academic Press.