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dc.contributor.authorGopalakrishnan, Balagopal
dc.contributor.authorJacob, Joshy
dc.contributor.authorMohapatra, Sanket
dc.date.accessioned2022-06-24T08:55:45Z
dc.date.available2022-06-24T08:55:45Z
dc.date.issued2022-06-18
dc.identifier.citationGopalakrishnan, B., Jacob, J., & Mohapatra, S. (2022). COVID-19 pandemic and debt financing by firms: Unravelling the channels. Economic Modelling, 105929.en_US
dc.identifier.issn0264-9993
dc.identifier.urihttp://hdl.handle.net/11718/25698
dc.description.abstractThe COVID-19-induced disruptions and the consequent government responses stretched the financial resources of firms. Recent studies document an increase in debt financing by firms during the pandemic. Using firm-level data from 61 countries, we deepen the understanding of the impact of the pandemic by examining the variation in loan and bond financing attributable to COVID-19-specific factors. Indicative of heightened precautionary needs, firms with higher pandemic exposure and those located in countries with stringent lockdowns have a higher propensity to raise debt. Furthermore, firms in industries less amenable to remote working also have a higher propensity to raise debt, but face higher financing costs compared to their peers. Reflective of opportunistic investment motives, firms that hold a relatively positive outlook have a greater likelihood of raising loan financing. The findings draw attention to the role of real-side factors and managerial motives that drive debt financing during a distress episode.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofEconomic Modellingen_US
dc.subjectCOVID-19en_US
dc.subjectPandemicen_US
dc.subjectBond financingen_US
dc.subjectSyndicated loansen_US
dc.subjectWork-from-homeen_US
dc.titleCOVID-19 pandemic and debt financing by firms: unravelling the channelsen_US
dc.typeArticleen_US


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