Journals Information
Universal Journal of Accounting and Finance Vol. 10(2), pp. 387 - 398
DOI: 10.13189/ujaf.2022.100203
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Crisis Management Policy and Financial Performance - The Mediating Effect of Government Assistance and Cash Holding: Evidence from Italy
Nayera Abdeldayem Eltamboly *, Maysa Ali M. Abdallah
Department of Accounting, Faculty of Commerce, Tanta University, Egypt
ABSTRACT
This research aims to investigate the main drivers of financial performance during the COVID-19 outbreak, particularly the role of national government and firm policy in relation to the negative economic effects of the COVID-19 outbreak on firms' performance. A generalized linear model (GLM) has been conducted to test the influence of government assistance and cash holding on the financial performance of 79 firms listed in FTSE Italia over 2020. Likewise, our research adopts the Second Stage Least Squares Method (2SLS) and Generalized Method of Moments (GMM) to examine the moderating effect of cash held on the association between COVID-19 outbreak and firms' performance. Our results suggest that the Italian government aids their firms during the COVID-19 outbreak to support their financial performance, and firms themselves increase the level of cash holding to continue their operations as a crisis management policy to face the COVID-19 outbreak. Moreover, cash holding as a moderator weakens the negative impact of the COVID-19 outbreak on the financial firms' performance. Therefore, during the COVID-19 outbreak, national governments and firms should consider a crisis management policy to reduce the negative effects on the firms' performance, mainly government financial assistance and cash holdings to sustain firms' operations during the outbreak.
KEYWORDS
COVID-19 Outbreak, Government Assistance, Cash Holding, Financial Performance, Crisis Management Policy
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Nayera Abdeldayem Eltamboly , Maysa Ali M. Abdallah , "Crisis Management Policy and Financial Performance - The Mediating Effect of Government Assistance and Cash Holding: Evidence from Italy," Universal Journal of Accounting and Finance, Vol. 10, No. 2, pp. 387 - 398, 2022. DOI: 10.13189/ujaf.2022.100203.
(b). APA Format:
Nayera Abdeldayem Eltamboly , Maysa Ali M. Abdallah (2022). Crisis Management Policy and Financial Performance - The Mediating Effect of Government Assistance and Cash Holding: Evidence from Italy. Universal Journal of Accounting and Finance, 10(2), 387 - 398. DOI: 10.13189/ujaf.2022.100203.