The Effect of COVID-19 Pandemic on Firms: Evidence from Vietnam

This paper investigates the effect of the COVID-19 pandemic on firm performance, cash flows, cash holdings and leverage. Using quarterly data of 415 firms listed in the Vietnamese stock market, we find that the pandemic significantly impairs firm performance and its cash flows. In addition, firms are found to hold more cash and reduce their leverage ratios to combat the disease outbreak. Our study also provides the supportive evidence that the Covid-19 pandemic may not necessarily to affect firms across industries equally.