TY  - JOUR
T1  - The Impact of COVID-19 on Cash Flow and Access to External Financing Amid Financial Constraints‎
A1  - Daniel Morales
A1  - Andres Vega
A1  - Sofia Rojas
A1  - Laura Jimenez
JF  - Journal of Applied Organizational Systems and Behavior
JO  - J Appl Organ Syst Behav
Y1  - 2023
VL  - 3
IS  - 1
SP  - 79
EP  - 86
N2  - This article explores how cash flow affects the demand for external funding among listed companies in Vietnam during the COVID-19 pandemic, particularly under financial constraints. The study develops hypotheses grounded in the self-ranking match theory and relevant literature. Using a dataset of 5,894 observations from 2010 to 2020 and employing a Generalized Least Squares (GLS) regression model, the hypotheses are tested. Findings reveal that cash flow plays a significant role in shaping businesses’ external financing needs. Notably, the effect of cash flow on increased external funding demand is more pronounced during financial constraints and the COVID-19 crisis. The results also indicate that financially constrained firms tended to seek additional funding when experiencing cash flow shortages amid the pandemic. Moreover, a high financial leverage ratio in the preceding year acts as a barrier to accessing diverse external financing sources. This research contributes to understanding the challenges faced by listed companies and suggests avenues for future studies focusing on firms in the financial sector and other macroeconomic factors influencing corporate capital structure.
UR  - https://apsshs.com/article/the-impact-of-covid-19-on-cash-flow-and-access-to-external-financing-amid-financial-constraints-akabz9urkqkkblz
ER  -