Effects of COVID-19 related government response stringency and support policies: Evidence from European firms

Janzen, Benedikt; Rădulescu, Doina Maria

doi:10.1016/j.eap.2022.07.013

Cited by 17 publications

(10 citation statements)

References 22 publications

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“…Also in this case, we find that sales growth increases with the number of days since the onset of the pandemic, suggesting that firms are moving towards a recovery from the dramatic impact of COVID-19 outbreak on their sales. Coherently with the findings of Janzen & Radulescu ( 2022 ), firms’ operational performance is found to be strongly hampered by the stringency of country-level containment policies, with a 1% increase in the Stringency index leading to a decrease of firms’ sales by about 0.17 percentage points.…”

Section: Empirical Analysissupporting

confidence: 61%

Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis

Aristei

Gallo

2023

Small Bus Econ

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This paper investigates the consequences of the COVID-19 crisis on firms’ performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank’s “Enterprise Surveys follow-up on COVID-19” for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms’ ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic’s impact on firms’ performance and amplify liquidity stress and financing problems. Credit-constrained enterprises are not only more likely to experience liquidity shortages and repayment problems, but they also face higher difficulties in accessing bank financing. The COVID-19 crisis has also hampered the beneficial role that green management exerted on access to credit in the pre-pandemic period. During the pandemic, firms with sound environmental management practices do not benefit from improved access to finance and have a lower demand for credit, possibly suggesting a slowdown in their green investment activities.

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Section: Empirical Analysissupporting

confidence: 61%

Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis

Aristei

Gallo

2023

Small Bus Econ

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“…But this business makes up about 5% of the studied companies. At the same time, manufacturing companies, which make up 55% of the studied companies, were affected toa lesser extent (Janzen and Radulescu, 2022).…”

Section: Discussionmentioning

confidence: 90%

“…Another study (Webster et al, 2022) concerned the situation on labour markets in Central American countries and European companies (Janzen and Radulescu, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Government financial support for businesses in the period of global threats

Gryshchenko,

Barikova,

Oliinyk

et al. 2023

Cuest. Pol.

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The aim of the article was to analyse the available approaches to the formation and implementation of governmental financial support for enterprises in the period of global threats. The research methodology is based on the identification of key risks and their nature; graphical method of classification of fiscal constraints; construction of scatter diagram; methods of sociological study and comparison of groups; grouping of the main approaches to government policy. The results identified the dependence of fiscal instruments of government support on the possibility of internal indebtedness and external economic problems in middle and low-income countries. The conclusions of the case identified the most effective instruments of government financial policy as a whole and by economic groups of countries and economic sectors. Finally, the need to expand the financial instruments of governmental support of enterprises in view of the consequences of the Russian aggression in Ukraine is emphasized.

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“…Furthermore, many firms experienced a general decrease in sales due to restrictions. Lalinsky and Pál (2022) find that many financially viable firms were strongly affected by the sales drop during the first wave of Covid‐19, while Janzen and Radulescu (2022) show that a complete lockdown resulted in 63 per cent lower sales. Finally, other studies highlight the long‐term detrimental effects of stringent lockdowns.…”

Section: Introductionmentioning

confidence: 99%

“…More specifically, policies that reduced layoffs and liquidity constraints in the short run alleviated problems for small firms, as they have lower cash buffers (Groenewegen et al, 2021), while deferred taxes and tax credits and deferred wages and wage subsidies allowed firms to have better working capital and cash management (Janzen & Radulescu, 2022; Tarkom, 2022). It is thus important to highlight the crucial role of government in supporting firms, given the stringent policies that were implemented during the crisis.…”

Section: Introductionmentioning

confidence: 99%

Did government support delay bankruptcy during the pandemic?

Haini,

Loon,

Abdulwahab

et al. 2024

Economic Affairs

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The literature reports mixed findings on the role of government intervention, even during times of crisis. The recent Covid‐19 pandemic damaged the financial health of many small firms. This study examines whether government subsidies are associated with bankruptcy rates for firms with deteriorating financial health. Using a sample of 18,422 firms from 44 countries, we estimate a logistic model that accounts for rare events. Results indicate that those firms which receive government support are more likely to be associated with insolvency, even in the absence of liquidity issues and overdue financial obligations. Policy implications are discussed.

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Effects of COVID-19 related government response stringency and support policies: Evidence from European firms

Cited by 17 publications

References 22 publications

Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis

Green management, access to credit, and firms’ vulnerability to the COVID-19 crisis

Government financial support for businesses in the period of global threats

Did government support delay bankruptcy during the pandemic?

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