IDEAS home Printed from https://ideas.repec.org/p/chb/bcchwp/926.html
   My bibliography  Save this paper

Liquidez del sector corporativo chileno: estimación de disponibilidad de caja bajo escenarios de estrés

Author

Listed:
  • Jorge Fernández B.
  • Fernando Pino M.
  • María Ignacia Valencia B.

Abstract

The sanitary crisis due to the Covid-19 pandemic generated several difficulties in the transport of population because of application of lockdowns enforced by authorities. These actions implied a strong restriction of economic activity and affect the flows of income of non-financial firms, this reduction of their sales and inventories values could stress their liquidity levels, which is an essential factor for repayment of liabilities. In this context we present an indicator that allows to compare the capacity of firm cash generation with the expenses. The indicator represents the months that each company has in order to face their costs and short-term liabilities, which will be denominated as “months of cash”. Utilizing a sample of fifty listed firms of Chile, the results indicate that, under the pandemic crisis and an adverse sales scenario, an 80% of the companies would have enough resources to maintain their expenditures at least for 6 months. This indicator of months of cash has an advantage respect to traditional ratios of liquidity given the flexibility allowed, so it is possible to quantify and identify the future liquidity risk of firms in different shocks scenarios. In contrast, the standard indicators only show an aggregate perspective with past information of companies.

Suggested Citation

  • Jorge Fernández B. & Fernando Pino M. & María Ignacia Valencia B., 2021. "Liquidez del sector corporativo chileno: estimación de disponibilidad de caja bajo escenarios de estrés," Working Papers Central Bank of Chile 926, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:926
    as

    Download full text from publisher

    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_926.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xiaodan Gao & Shaofeng Xu, 2018. "The Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?," Staff Working Papers 18-59, Bank of Canada.
    2. Grjebine, Thomas & Szczerbowicz, Urszula & Tripier, Fabien, 2018. "Corporate debt structure and economic recoveries," European Economic Review, Elsevier, vol. 101(C), pages 77-100.
    3. Thomas GRJEBINE & Urszula SZCZERBOWICZ & Fabien TRIPIER, 2018. "Corporate debt structure and economic recoveries: a cross-country analysis," Rue de la Banque, Banque de France, issue 63, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benjamín García & Mario González & Sebastián Guarda & Manuel Paillacar, 2022. "Unconventional credit policies during crises: A structural analysis of the Chilean experience during the COVID-19 pandemic," Working Papers Central Bank of Chile 954, Central Bank of Chile.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jelena Zivanovic, 2019. "Corporate Debt Composition and Business Cycles," Staff Working Papers 19-5, Bank of Canada.
    2. Stéphane Lhuissier & Urszula Szczerbowicz, 2022. "Monetary Policy and Corporate Debt Structure," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(3), pages 497-515, June.
    3. Feiner Solís, Sara, 2021. "The effectiveness and risks of loose monetary policy under financialisation," IPE Working Papers 159/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    4. Kanwal Iqbal Khan & Faisal Qadeer & Mário Nuno Mata & José Chavaglia Neto & Qurat ul An Sabir & Jéssica Nunes Martins & José António Filipe, 2021. "Core Predictors of Debt Specialization: A New Insight to Optimal Capital Structure," Mathematics, MDPI, vol. 9(9), pages 1-25, April.
    5. Pagliacci, Carolina, 2020. "Financial constraints and inflation in Latin America: The impacts of bond financing and depreciations on supply inflation," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 379-397.
    6. Poeschl, Johannes, 2023. "Corporate debt maturity and investment over the business cycle," European Economic Review, Elsevier, vol. 152(C).
    7. Cappiello, Lorenzo & Holm-Hadulla, Fédéric & Maddaloni, Angela & Mayordomo, Sergio & Unger, Robert & Arts, Laura & Meme, Nicolas & Asimakopoulos, Ioannis & Migiakis, Petros & Behrens, Caterina & Moura, 2021. "Non-bank financial intermediation in the euro area: implications for monetary policy transmission and key vulnerabilities," Occasional Paper Series 270, European Central Bank.
    8. Joost Bats, 2020. "Corporates dependence on banks: The impact of ECB corporate sector purchases," Working Papers 667, DNB.
    9. Thomas Brand & Fabien Tripier, 2021. "Risk Shocks and Divergence between the Euro Area and the US in the Aftermath of the Great Recession," Annals of Economics and Statistics, GENES, issue 143, pages 137-163.
    10. Martins, Manuel M.F. & Verona, Fabio, 2021. "Bond vs. bank finance and the Great Recession," Finance Research Letters, Elsevier, vol. 39(C).
    11. Holm-Hadulla, Fédéric & Thürwächter, Claire, 2021. "Heterogeneity in corporate debt structures and the transmission of monetary policy," European Economic Review, Elsevier, vol. 136(C).
    12. Ayyagari, Meghana & Demirgüç-Kunt, Asli & Maksimovic, Vojislav, 2021. "How common are credit-less recoveries? Firm-level evidence on the role of financial markets in crisis recovery," Journal of Corporate Finance, Elsevier, vol. 69(C).
    13. Simon Schumacher & Stephan Paul, 2017. "Capital Markets Union – Promising Prospects for Corporate Financing?," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(3), pages 289-304, August.
    14. Adão, Bernardino & Silva, André C., 2020. "The effect of firm cash holdings on monetary policy," European Economic Review, Elsevier, vol. 128(C).
    15. Iwata, Kazumasa & Jean, Sébastien & Kastrop, Christian & Loewald, Chris & Véron, Nicolas, 2018. "T20 resilience and inclusive growth," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-10.
    16. Kanwal Iqbal Khan & Faisal Qadeer & Mário Nuno Mata & Rui Miguel Dantas & João Xavier Rita & Jéssica Nunes Martins, 2021. "Debt Market Trends and Predictors of Specialization: An Analysis of Pakistani Corporate Sector," JRFM, MDPI, vol. 14(5), pages 1-16, May.
    17. Thomas Drechsel, 2023. "Earnings-Based Borrowing Constraints and Macroeconomic Fluctuations," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 1-34, April.
    18. Anna-Leigh Stone, 2019. "Unlimited FDIC Insurance and the Implications for Corporate Cash," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-51, November.
    19. Jiří Pour, 2020. "Národní úspory a analýza relativní přespořenosti či podspořenosti ekonomik [National Saving and Analysis of Relatively Oversaving or Undersaving of Economies]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(6), pages 650-678.
    20. Thomas GRJEBINE & Urszula SZCZERBOWICZ & Fabien TRIPIER, 2018. "Corporate debt structure and economic recoveries: a cross-country analysis," Rue de la Banque, Banque de France, issue 63, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alvaro Castillo (email available below). General contact details of provider: https://edirc.repec.org/data/bccgvcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.