Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy
Purpose – This study aims to use a comparative analysis to examine the channel of deferring cash commitments, which can be seen as a strategic solution to mitigate the impact of COVID-19 on Moldova's service sector. Design/methodology/approach – This paper uses the Oaxaca–Blinder decomposition...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-12-01
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| Series: | Journal of Money and Business |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JMB-05-2023-0029/full/pdf |
| _version_ | 1797448172656656384 |
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| author | Ömer Tuğsal Doruk |
| author_facet | Ömer Tuğsal Doruk |
| author_sort | Ömer Tuğsal Doruk |
| collection | DOAJ |
| description | Purpose – This study aims to use a comparative analysis to examine the channel of deferring cash commitments, which can be seen as a strategic solution to mitigate the impact of COVID-19 on Moldova's service sector. Design/methodology/approach – This paper uses the Oaxaca–Blinder decomposition analysis. The World Bank's post-COVID-19 survey is used. The methodology takes into account heterogeneity among firms. Findings – The results of the Oaxaca–Blinder decomposition analysis show that service firms use deferred cash commitments more than industrial firms, corporate governance and their pandemic-related strategies are also effective in the post-COVID Moldovan economy. The results are robust to different modeling alternatives. Originality/value – COVID-19 can be considered a key source of uncertainty for firms, especially those operating in economies where financial frictions occasionally occur in a transition economy. Therefore, this study can shed new light on the impact of COVID-19 on financial strategies in a transition economy. |
| first_indexed | 2024-03-09T14:06:38Z |
| format | Article |
| id | doaj.art-27581c1f79654989abbda6054d38d33e |
| institution | Directory Open Access Journal |
| issn | 2634-2596 2634-260X |
| language | English |
| last_indexed | 2024-03-09T14:06:38Z |
| publishDate | 2023-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Money and Business |
| spelling | doaj.art-27581c1f79654989abbda6054d38d33e2023-11-30T03:56:13ZengEmerald PublishingJournal of Money and Business2634-25962634-260X2023-12-013219721110.1108/JMB-05-2023-0029Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economyÖmer Tuğsal Doruk0Department of Business, Finance Chair, Adana Alparslan Turkes Science and Technology University, Adana, TurkeyPurpose – This study aims to use a comparative analysis to examine the channel of deferring cash commitments, which can be seen as a strategic solution to mitigate the impact of COVID-19 on Moldova's service sector. Design/methodology/approach – This paper uses the Oaxaca–Blinder decomposition analysis. The World Bank's post-COVID-19 survey is used. The methodology takes into account heterogeneity among firms. Findings – The results of the Oaxaca–Blinder decomposition analysis show that service firms use deferred cash commitments more than industrial firms, corporate governance and their pandemic-related strategies are also effective in the post-COVID Moldovan economy. The results are robust to different modeling alternatives. Originality/value – COVID-19 can be considered a key source of uncertainty for firms, especially those operating in economies where financial frictions occasionally occur in a transition economy. Therefore, this study can shed new light on the impact of COVID-19 on financial strategies in a transition economy.https://www.emerald.com/insight/content/doi/10.1108/JMB-05-2023-0029/full/pdfOaxaca-Blinder decompositionCOVID-19Moldavian economyServices sectorCash commitmentsComparative analysis |
| spellingShingle | Ömer Tuğsal Doruk Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy Journal of Money and Business Oaxaca-Blinder decomposition COVID-19 Moldavian economy Services sector Cash commitments Comparative analysis |
| title | Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy |
| title_full | Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy |
| title_fullStr | Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy |
| title_full_unstemmed | Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy |
| title_short | Deferring cash commitments to mitigate COVID-19 impact on the service sector: a case study of a transition economy |
| title_sort | deferring cash commitments to mitigate covid 19 impact on the service sector a case study of a transition economy |
| topic | Oaxaca-Blinder decomposition COVID-19 Moldavian economy Services sector Cash commitments Comparative analysis |
| url | https://www.emerald.com/insight/content/doi/10.1108/JMB-05-2023-0029/full/pdf |
| work_keys_str_mv | AT omertugsaldoruk deferringcashcommitmentstomitigatecovid19impactontheservicesectoracasestudyofatransitioneconomy |