The effect of coronavirus (COVID-19) on companies in Valle del Cauca

ABSTRACT

The health crisis caused by the spread of the COVID-19 coronavirus has brought about the closure of many companies. This article analyses the determinants of the suspension of productive activities as a result of COVID-19 using data regarding companies in Valle del Cauca. By estimating a probit and a survival model, our results show the fragility of smaller companies with respect to size and age in facing adverse and unexpected shocks;while intangibles (dammed income) significantly reduce the probability of company withdrawal during the initial phase of the crisis. Finally, the article exhorts that it is necessary to design priority attention mechanisms for the financing of companies and targeted aid.