ABSTRACT
This study analyzed the impact of COVID-19 outbreak and targeted required reserve ratio cut policy on stock returns of Chinese listed companies. This paper uses the data of 3,449 A-share listed companies from February 3, 2020 to December 31, 2020 for research, the empirical results showed that stock prices of private enterprises with stronger debt-paying ability and looser financing constraints, and state-owned enterprises with less supply chain credit risks performed better, in the central and western regions, enterprises with stronger solvency and looser financing constraints have better stock price performance during the early stages of pandemic. After the implementation of the targeted RRR cut policy, the stock prices of enterprises with poor solvency, private enterprises, and enterprises in central and western regions with strong financing constraints, state-owned enterprises, and enterprises in eastern region with high credit risks all showed significant reversals, and the stock prices reflected the effect of the targeted RRR cut policy in the short and medium term. Over time, the pandemic has been controlled, and the resumption of work and production has freed most enterprises from financial difficulties. However, due to sporadic outbreaks, large private enterprises and eastern enterprises with strong risk resistance and loose financing constraints enjoy better stock price performance. This study is helpful for enterprises to understand the value of financial flexibility and solvency and provides a reference for enterprises to make financial decisions: how to balance the benefits and costs of solvency. © Tian Wang, Fang Fang and Linhao Zheng, 2023.
ABSTRACT
The COVID-19 has impacted the social economy of various provinces in China to varying degrees. How to quickly restore the social economy has become the most concerned issue of the Party, the country and all sectors of society. This paper combines the entropy weight method and TOPSIS method-technique for order performance by similarity to ideal solution, taking the financial policy transmission mechanism as the theoretical basis, and selects the data of 29 provinces in China to obtain the contribution of finance in the socio-economic resilience under the pandemic situation. The empirical analysis results show that the weights of financial policy, pandemic situation and financial basis are different. It can be clearly seen from the weight data that the financial basis is crucial to the socio-economic resilience. Although the COVID-19 pandemic will cause huge losses to the whole society and will also seriously hinder the socio-economic recovery, the effective implementation of financial policies and the good trend of the pandemic situation have a significant promoting effect on the socio-economic recovery. © 2023, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
ABSTRACT
This paper provides a descriptive analysis of the trends and the main components of public support for agriculture in Italy over the two decades (2000-2019) preceding the outbreak of the Covid-19 pandemic. For this analysis, the wealth of highly informative data contained in the CREA database "Agricultural expenditure of the Regions" was used. This is the most up-todate and consistently available source of information on public spending in agriculture, with regional details that distinguish it from other official statistical sources. Overall public support for the agriculture sector in the period under consideration decreased by over EUR 4 billion (from EUR 15,613 billion in 2000 to just below EUR 12 billion in 2019). The share of support in agricultural added value has also decreased: from 55% in 2000 to about 34% in 2019. Looking at the individual categories of support (EU CAP 1st and 2nd pillar funds, tax and social security reliefs, State transfers and regional funds) included in the analysis, it is clear that this decrease was due to the halving of tax and social security reliefs (from 26.6% to 15.8%), and the significant reduction in the support provided by the budgets of the Regions and Autonomous Provinces (from over 4 billion euros in 2000 to 1,7 billion euros in 2019). To this must be added a reduction in government contributions (from 4.3% to 4.1%). As a result, EU support was consequently stable in the first decade and increased in the last ten years (from 43.1% in 2000 to 63.9% in 2019). This analysis highlights the various support models derived from each Region's particular production and politicaladministrative situations. © 2022 Franco Angeli Edizioni. All rights reserved.
ABSTRACT
This paper shows the effect of banking sector financial relief policies on the loan maturity of MSMEs under a major risk shock. Using 259 loan samples from China both before and after the outbreak of COVID-19, I find that financial relief policies reduced the loan maturity of MSMEs by an average of 4%. Two mechanisms are involved:the proportion of bank liquidity loans increased;banks shortened the loan maturity to respond to the increase in risk-taking of their own. This study provides an example of how macroeconomic policies influence micro-behavior in bank lending decisions. © 2023 Elsevier Inc.
ABSTRACT
Central banks and regulators increasingly consider climate-related financial risks (CRFR) relevant to their responsibilities for maintaining financial stability and using daily data from 2016 to 2021 for China. Specifically, we used the S&P Green Bond Price Index, the Solactive Global Solar Price Index, the Solactive Global Wind Price Index, and the S&P Global Clean Energy and Carbon Price Index as our data set. We use the TVP-VAR method to probe return spillovers and interconnectedness. We test several portfolio strategies, including the minimum variance portfolio, the minimum correlation portfolio, and the more recent minimum connectedness portfolio. However, the evolving policy structure for dealing with CRFR has generally focused on market-based solutions that attempt to address perceived data gaps that preclude the appropriate pricing of CRFR, even though CRFR is thought to have certain distinctive features. Disclosure and openness fall within this category. We propose limiting the approach's influence since CRFR is characterized by extreme attainability. A 'precautionary' financial policy option is presented as an alternative, providing a conceptual foundation for justifying more aggressive financial policy intervention in the present to better cope with these long-term dangers.
Subject(s)
COVID-19 , Carbon , Humans , Investments , Policy , ChinaABSTRACT
The public health measures implemented to reduce the spread of the COVID-19 pandemic have had unexpected consequences in a wide range of industries worldwide including aquaculture. The first case of COVID-19 was also reported in March 2020 in Türkiye. The present study aims to determine the financial and economic effects of the COVID-19 pandemic on the aquaculture in Türkiye by analyzing consolidated financial statements of the industry released by Central Bank of the Republic of Türkiye in September 2021. Within this context, the consolidated financial statements of 2020 were examined using ratio analysis, followed by a comparison of the ratios from 2009 to 2020. As a result of the study, it was determined that the Turkish aquaculture sector continued to grow, the net profit margin improving considerably by 871 % in 2020 compared to the previous year, and the year 2020 achieving the highest profitability performances in the recent 12-year period, despite the severe effects of the pandemic on several industries globally. However, the sector's high financial leverage, inability to produce sufficient revenue to pay its debts, and reliance on foreign manufacturing costs are all concerns that must be managed to maintain economic and financial sustainability. Considering these results, some policy practices related to financial stability are advised so that aquaculture stakeholders can have a stronger financial and economic structure in the face of random shocks such as the Covid-19 pandemic.
ABSTRACT
In poverty-stricken countries, the middle class usually falls out of focus in fiscal policy discussions, especially during crises, such as the COVID-19 pandemic. This research aims to determine if the pandemic has impacted subjective well-being (SWB) and financial anxiety (FAS) for a middle-class Bangladeshi sample. During 14-24 July 2020, 129 respondents completed a self-reported survey questionnaire. The results indicate that although people are happy in general, they are worried about their relationships. Women score lower on total well-being, as do those with household incomes below the average. People living outside the capital score marginally higher, people with well-secured jobs denote their higher well-being too. Furthermore, the FAS results indicate higher levels of anxiety among people with lower incomes and unsecured jobs. Therefore, the COVID-19 experience might inform future fiscal policies, including the potential to introduce universal job security insurance and financial counselling to employees after the pandemic.