Accounting

Cash

Economics

Business

Coronavirus disease 2019 (COVID-19)

Monetary economics

Stock exchange

Infectious disease (medical specialty)

Internal medicine

Medicine

Finance

Pandemic

Disease

Goodwill

Pathology

Emerging Markets Finance and Trade

The COVID-19 outbreak seriously affected all economies, especially the operations of listed companies, around the world. This article studies the impact of COVID-19 on firm-level cash holdings using the difference-in-differences method. It finds that COVID-19 has a significant positive impact on cash holdings in serious-impact industries. Goodwill and goodwill impairment can weaken this positive impact, which may be related to higher business risks in these firms. Therefore, managers should raise firms' cash holding level during the pandemic to protect firms against contingencies. Managers should also be aware of financing constraints due to risks.

COVID-19 Pandemic and Firm-level Cash Holding—Moderating Effect of Goodwill and Goodwill Impairment