Liquidity Management During the COVID-19 Pandemic

Research output: Working paper

Abstract

With the help of the US government and committed funding from bank credit lines, the US corporate sector responded to the COVID-19 cash flow shock by issuing long-term debt to increase cash holdings. I use a case study, evidence from recent research and a theoretical model to explain the logic behind the changes in corporate financial policy that happened during 2020, and to discuss the importance of US government policies to support the market for long-term debt. I also point out to open research questions about liquidity management, in particular questions that were highlighted by how companies reacted to the COVID-19 pandemic.
Original languageEnglish (US)
Number of pages23
StateSubmitted - Jan 12 2021

Publication series

NameAsia-Pacific Journal of Financial Studies, Forthcoming

Keywords

  • Cash
  • credit lines
  • Coronavirus
  • debt
  • financial markets
  • COVID-19

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