Factors predicting companies' crisis in the engineering industry from the point of view of financial analysis.

A key factor for business management is the assessment of the financial situation of companies. Nowadays, it is essential to monitor the liquidity crisis, which is closely linked to corporate crises. The aim of the paper is to analyse a selected sector of the economy from the perspective of the corporate crisis and to identify the factors of crisis. More than 2000 engineering companies in Slovakia were analysed during the period from 2015 to 2019 with the aim of analysing financial results, especially in the area of financial forecast for the future. In the analysis, statistical testing of the significance of relationships using the Spearman correlation coefficient, the significance of differences by the power of t-test, regression and clustering were used. A significant part of the paper is the analysis of selected indicators of the company's crisis-Altman's Z score and the IN05 index. The results indicate that engineering companies in Slovakia are achieving good results and their financial situation is improving within the years between 2015-2019. The results can also be used as a starting point for research concerning the impact of COVID-19 in this area. In the context of corporate crisis management, engineering companies behave in the same way but it is necessary to monitor individual factors that can detect a corporate crisis. Possible measures would thus lead to the stabilization of financial results and long-term sustainable positive prospects for companies in the future.

Firing discrimination: Selective labor market responses of firms during the COVID-19 economic crisis.

The speed of the economic downturn in the wake of the COVID-19 pandemic has been exceptional, causing mass layoffs-in Germany up to 30% of the workforce in some industries. Economic rationale suggests that the decision on which workers are fired should depend on productivity-related individual factors. However, from hiring situations we know that discrimination-i.e., decisions driven by characteristics unrelated to productivity-is widespread in Western labor markets. Drawing on representative survey data on forced layoffs and short-time work collected in Germany between April and December 2020, this study highlights that discrimination against immigrants is also present in firing situations. The analysis shows that employees with a migration background are significantly more likely to lose their job than native workers when otherwise healthy firms are unexpectedly forced to let go of part of their workforce, while firms make more efforts to substitute firing with short-time working schemes for their native workers. Adjusting for detailed job-related characteristics shows that the findings are unlikely to be driven by systematic differences in productivity between migrants and natives. Moreover, using industry-specific variation in the extent of the economic downturn, I demonstrate that layoff probabilities hardly differ across the less affected industries, but that the gap between migrants and natives increases with the magnitude of the shock. In the hardest-hit industries, job loss probability among migrants is three times higher than among natives. This confirms the hypothesis that firing discrimination puts additional pressure on the immigrant workforce in times of crisis.

Research on the impact of COVID-19 on Chinese small and medium-sized enterprises: Evidence from Beijing.

COVID-19 leads small and medium-sized enterprises (SMEs) to survive very hard. The development difficulties of SMEs lead to weak employment and GDP growth in various countries. In the process of COVID-19's continuous spread, what is the major reason for the difficulties of SMEs? This paper hopes to answer this question by studying SMEs in Beijing. On this basis, this paper uses structural equation model (SEM) to study the relatively fast recovery of SMEs in Beijing, China, to explore the factors affecting SMEs in the pandemic. After detailed desk research and interviews with relevant entrepreneurs, this paper collects 234 valid questionnaires from SMEs in various industries in Beijing with the help of Federation of Industry and Commerce and Chamber of Commerce in Beijing. Then the data is analyzed with the SEM, which shows the relationship between cash flow from financing activities, markets, employees, costs, government policies and the impact of the pandemic. Finally, an impact model of the pandemic on SMEs is established. The result of the model indicates that the direct effect of the pandemic on the market is the most prominent, and government policies can significantly reduce the negative impact of the pandemic on SMEs indirectly. Based on this, this paper puts forward some policy suggestions, such as the targeted issuance of consumption vouchers and the reduction of administrative barriers. This will enable megacities in various countries to improve policy support for SMEs and promote the recovery and development of SMEs.

Epidemiological and economic impact of COVID-19 in the US.

This research measures the epidemiological and economic impact of COVID-19 spread in the US under different mitigation scenarios, comprising of non-pharmaceutical interventions. A detailed disease model of COVID-19 is combined with a model of the US economy to estimate the direct impact of labor supply shock to each sector arising from morbidity, mortality, and lockdown, as well as the indirect impact caused by the interdependencies between sectors. During a lockdown, estimates of jobs that are workable from home in each sector are used to modify the shock to labor supply. Results show trade-offs between economic losses, and lives saved and infections averted are non-linear in compliance to social distancing and the duration of the lockdown. Sectors that are worst hit are not the labor-intensive sectors such as the Agriculture sector and the Construction sector, but the ones with high valued jobs such as the Professional Services, even after the teleworkability of jobs is accounted for. Additionally, the findings show that a low compliance to interventions can be overcome by a longer shutdown period and vice versa to arrive at similar epidemiological impact but their net effect on economic loss depends on the interplay between the marginal gains from averting infections and deaths, versus the marginal loss from having healthy workers stay at home during the shutdown.

Do economic effects of the anti-COVID-19 lockdowns in different regions interact through supply chains?

To prevent the spread of COVID-19, many cities, states, and countries have 'locked down', restricting economic activities in non-essential sectors. Such lockdowns have substantially shrunk production in most countries. This study examines how the economic effects of lockdowns in different regions interact through supply chains, which are a network of firms for production, by simulating an agent-based model of production using supply-chain data for 1.6 million firms in Japan. We further investigate how the complex network structure affects the interactions between lockdown regions, emphasising the role of upstreamness and loops by decomposing supply-chain flows into potential and circular flow components. We find that a region's upstreamness, intensity of loops, and supplier substitutability in supply chains with other regions largely determine the economic effect of the lockdown in the region. In particular, when a region lifts its lockdown, its economic recovery substantially varies depending on whether it lifts the lockdown alone or together with another region closely linked through supply chains. These results indicate that the economic effect produced by exogenous shocks in a region can affect other regions and therefore this study proposes the need for inter-region policy coordination to reduce economic loss due to lockdowns.

Assessing the level of digitalization and robotization in the enterprises of the European Union Member States.

One of the main reasons for the dynamic global economic development observed in recent years is the process of digitalization, referred to as Industry 4.0. The significance of digitalization for this development is appreciated by the EU-27. In order for these actions to be effective, it is necessary to diagnose the current level of digitalization in the EU-27countries. The article presents the results of the assessment of the level of digitalization of enterprises in the EU-27 countries. An empirical analysis was conducted using 16 determinants which describe the digitalization in a sample of 27 EU countries. Based on the adopted criteria and the Technique for Order Preference by Similarity to an Ideal Solution method, these countries were divided into four classes in terms of the level of digitalization. The analysis looked at the size of enterprises and was performed independently for small, medium and large enterprises. The adopted indicators allowed for the analysis of similarity between the EU-27 countries in terms of digitalization, using the Kohonen's networks. The result of this research was the division of the EU-27 countries into groups, also taking into account the size of studied enterprises. Due to the immensely diverse EU-27 economy, such a huge undertaking as the digital transformation process requires building logical internal "digital coalitions". The designated assessment and similarity between countries creates such opportunities, also in terms of building an effective policy to support these processes by the EU. This increases the chances of success of joint ventures and building a sustainable European community based on the latest technologies.

Epidemics and the future of coffee production.

In this perspective, we draw on recent scientific research on the coffee leaf rust (CLR) epidemic that severely impacted several countries across Latin America and the Caribbean over the last decade, to explore how the socioeconomic impacts from COVID-19 could lead to the reemergence of another rust epidemic. We describe how past CLR outbreaks have been linked to reduced crop care and investment in coffee farms, as evidenced in the years following the 2008 global financial crisis. We discuss relationships between CLR incidence, farmer-scale agricultural practices, and economic signals transferred through global and local effects. We contextualize how current COVID-19 impacts on labor, unemployment, stay-at-home orders, and international border policies could affect farmer investments in coffee plants and in turn create conditions favorable for future shocks. We conclude by arguing that COVID-19's socioeconomic disruptions are likely to drive the coffee industry into another severe production crisis. While this argument illustrates the vulnerabilities that come from a globalized coffee system, it also highlights the necessity of ensuring the well-being of all. By increasing investments in coffee institutions and paying smallholders more, we can create a fairer and healthier system that is more resilient to future social-ecological shocks.

Emission impacts of China's solid waste import ban and COVID-19 in the copper supply chain.

Climate change will increase the frequency and severity of supply chain disruptions and large-scale economic crises, also prompting environmentally protective local policies. Here we use econometric time series analysis, inventory-driven price formation, dynamic material flow analysis, and life cycle assessment to model each copper supply chain actor's response to China's solid waste import ban and the COVID-19 pandemic. We demonstrate that the economic changes associated with China's solid waste import ban increase primary refining within China, offsetting the environmental benefits of decreased copper scrap refining and generating a cumulative increase in CO2-equivalent emissions of up to 13 Mt by 2040. Increasing China's refined copper imports reverses this trend, decreasing CO2e emissions in China (up to 180 Mt by 2040) and globally (up to 20 Mt). We test sensitivity to supply chain disruptions using GDP, mining, and refining shocks associated with the COVID-19 pandemic, showing the results translate onto disruption effects.

Near-real-time monitoring of global CO2 emissions reveals the effects of the COVID-19 pandemic.

The COVID-19 pandemic is impacting human activities, and in turn energy use and carbon dioxide (CO2) emissions. Here we present daily estimates of country-level CO2 emissions for different sectors based on near-real-time activity data. The key result is an abrupt 8.8% decrease in global CO2 emissions (-1551 Mt CO2) in the first half of 2020 compared to the same period in 2019. The magnitude of this decrease is larger than during previous economic downturns or World War II. The timing of emissions decreases corresponds to lockdown measures in each country. By July 1st, the pandemic's effects on global emissions diminished as lockdown restrictions relaxed and some economic activities restarted, especially in China and several European countries, but substantial differences persist between countries, with continuing emission declines in the U.S. where coronavirus cases are still increasing substantially.

Spatial variation in socio-ecological vulnerability to Covid-19 in the contiguous United States.

The health and economic impacts of the Covid-19 pandemic vary across space because social, economic, health and ecological factors are also spatially variable. Social vulnerability indices are attempts to create a relative ranking of vulnerability to a natural or anthropogenic hazard across space and have been widely used to quantify community vulnerability to natural disasters. Here, we develop a hierarchical socio-ecological vulnerability index that compares counties in the contiguous United States based on 18 variables grouped into four dimensions (ecological, social, health, and economic) in order to capture a range of factors that might contribute to community vulnerability to Covid-19. Variables were chosen based on a review of the emerging literature about the factors associated with poor health outcomes from Covid-19, information about the economic sectors most at risk from the pandemic and pandemic response, and existing social vulnerability indices. We find that socio-ecological vulnerability to Covid-19 and its related economic effects varies across the contiguous U.S., with especially high vulnerability in the Southeast U.S. and especially low vulnerability in the Upper Midwest, Great Plains, and Mountain West.

Global supply-chain effects of COVID-19 control measures.

Countries have sought to stop the spread of coronavirus disease 2019 (COVID-19) by severely restricting travel and in-person commercial activities. Here, we analyse the supply-chain effects of a set of idealized lockdown scenarios, using the latest global trade modelling framework. We find that supply-chain losses that are related to initial COVID-19 lockdowns are largely dependent on the number of countries imposing restrictions and that losses are more sensitive to the duration of a lockdown than its strictness. However, a longer containment that can eradicate the disease imposes a smaller loss than shorter ones. Earlier, stricter and shorter lockdowns can minimize overall losses. A 'go-slow' approach to lifting restrictions may reduce overall damages if it avoids the need for further lockdowns. Regardless of the strategy, the complexity of global supply chains will magnify losses beyond the direct effects of COVID-19. Thus, pandemic control is a public good that requires collective efforts and support to lower-capacity countries.