Abstract
The objective of this paper is to investigate the impact of coronavirus disease 2019 (COVID-19) on the financial performance and cash holdings of Chinese agri-food companies. We also examine whether or not company ownership, the affected areas, and leverage level affect this relationship. The empirical results show that the COVID-19 outbreak has had no significant impact on financial performance and the cash-holding level of agri-food companies. In addition, the financial performance of state-owned companies is enhanced during such a crisis, whereas COVID-19 reduced the financial performance and cash-holding level of privately owned companies. In middle- and high-risk areas, the pandemic has had a negative impact on financial performance, while it has had a positive impact on financial performance in low-risk areas. The negative impact of COVID-19 on cash holding is greater in highly leveraged companies than it has been in low-leveraged companies. This paper may provide some new insights for managers to ensure smooth operation and improve firms’ performance in order to overcome this crisis.
Funder
the Shandong Provincial Humanities and Social Sciences Research Project
Subject
Agronomy and Crop Science
Cited by
11 articles.
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