Cash holdings, or the amount of cash and cash equivalents a company holds, become more significant when economic uncertainty increases. Reddaway (1936) argued that cash holdings serve transactional, precautionary, and speculative purposes, underscoring their importance, particularly during economic downturns. This pandemic has encouraged companies to manage their financial resources carefully. This research explores the impact of the COVID-19 pandemic on cash holdings in consumer goods companies across the initial three years of the pandemic. Data were sourced from the Wall Street Journal Database (WSJ), spanning 2018 to 2022. Utilizing the fixed effects model (FEM), the analysis encompasses a dataset of 1.491 companies from 80 countries. The findings indicate a substantial and positive correlation between the COVID-19 pandemic and cash holdings within the consumer goods sector. This effect is pronounced in the first, second, and third years of the pandemic, highlighting companies’ decisions to bolster cash reserves as a response to pandemic-induced uncertainty. This analysis underscores the widespread influence of the COVID-19 pandemic on cash holdings across industries, market types, and geographical regions.

COVID-19 pandemic and cash holding in consumer goods sector: International evidence

This study aims to examine the technical efficiency of Indonesian government-owned banks, especially evaluating their performance during the COVID-19 pandemic. We used quarterly data ranging from the year 2019 to 2022 and a non-parametric approach known as a data envelopment analysis (DEA), and Tobit regression. Our findings show that Bank Rakyat Indonesia (BRI) and Bank Tabungan Nasional (BTN) are the most efficient and stable banks during the observation periods. In addition, the average efficiency trend shows a sharp decreasing trend in all banks from Q2 2020, the period when the COVID-19 pandemic began to spread in Indonesia. Furthermore, the Tobit regression result found that financial ratios — capital adequacy ratio (CAR), loan-to-deposit ratio (LDR), and return on assets (ROA) — have a significant positive impact to affect the efficiency level of the government-owned bank, whereas the bank’s size was found insignificant (Susamto et al., 2023; Ikhwan &amp; Riani, 2022). The paper contributes to the body of knowledge by specifically focusing on measuring the relative efficiency of government-owned banks in Indonesia in the most recent period in addition to existing, which represents the period before and during the pandemic crisis, which would fill the gaps in the available literature. 

Measuring the efficiency of government-owned banks during the COVID-19 pandemic in the emerging economy

This study examines the factors influencing stock performance in banking institutions listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. A quantitative approach using panel data regression is applied to assess the impact of internal financial metrics—such as Earningss per Share (EPS), Dividend per Share (DPS), Price-to-Earningss Ratio (P/E), and Book Value per Share (BVPS)—as well as external macroeconomic variables, including inflation, Gross Domestic Product (GDP), and bank size, on Market Price per Share (MPS). The study employs the random-effect model, along with statistical tests such as Chow, Hausman, and Lagrange Multiplier, to determine the most suitable regression model. The results reveal that EPS, BVPS, and bank size have significant positive impacts on MPS, indicating that higher profitability, strong intrinsic equity value, and larger institutional size are associated with better stock performance. In contrast, DPS, P/E, inflation, and GDP show no significant influence, suggesting that investors in the banking sector focus more on other aspects, such as EPS, BVPS, and bank size rather than the amount of dividends distributed, share price compared to profitability, inflation, and GDP. These findings offer practical implications for bank management to enhance financial performance and attract investments by focusing on improving profitability and equity growth. Additionally, this study serves as a valuable reference for investors in developing stock selection strategies by emphasizing the importance of strong fundamentals. Furthermore, the research identifies limitations in existing variables in capturing stock volatility and recommends future studies to expand the scope by incorporating additional market dynamics and longer observation periods.

Internal and External Determinants of Banking Stock Performance: Evidence From The Indonesia Stock Exchange

The main aim of this research is to figure out how fundamental and macroeconomic factors affect stock returns in Bangladesh. Five companies out of seven that are listed on the DSE and are part of the cement industry were randomly selected for this purpose. The companies involved are Heidelberg Cement Bangladesh Limited, Lafarge Holcim Bangladesh Limited, Premier Cement Mills Limited, Crown Cement PLC, and Meghna Cement Mills Limited. All the data were gathered as time series on a monthly basis, spanning the years 2012 through 2021. For the sake of the study's objective, some fundamental and macroeconomic factors are identified and incorporated into the framework of multiple regressions. In addition to these fundamental factors, which include debt to equity, return on asset (ROA), return on equity (ROE), price earnings (P/E) ratio, and earnings per share (EPS), macroeconomic factors, e.g., inflation (INF), gross domestic product (GDP), interest rate (INT), money supply (M2), foreign direct investment (FDI), and exchange rate (EX), are also considered. According to the study's overall findings, among key variables, Lafarge Holcim Bangladesh Ltd. and Heidelberg Cement Bangladesh Limited both had positive and statistically significant EPS and PE ratios, whereas Crown Cement PLC only had a positive and statistically significant PE ratio. However, only inflation was determined to have a negative and statistically significant effect on Meghna Cement Mills Ltd. among all sample companies. None of the fundamental or macroeconomic factors was found to be statistically significant in the case of Premier Cement Mills Limited. Since it includes a wide range of macroeconomic variables in addition to the selected fundamental variables, this study stands out from others for listed firms within the cement industry of DSE, Bangladesh. Such a study would be more beneficial if it took into account more exogenous variables and stocks that are listed in or outside of this sector. This study's entire data analysis was carried out with the use of the statistical software Eviews version 10. 

pdf/impact-of-fundamental-and-macroeconomic-factors-on-stock-ohu2cq8ib1.pdf

Impact of Fundamental and Macroeconomic Factors on Stock Returns: A Study on Cement Industry in Bangladesh

Objectives: This research aims to conduct a descriptive and verificative analysis of the condition of Activity Ratio, Liquidity, Profitability, Solvency, and Stock Price in the pharmaceutical industry on the Indonesia Stock Exchange from 2009 to 2020. Additionally, the study aims to identify and analyze the extent to which Activity Ratio, Liquidity, Profitability, and Solvency influence Stock Price and its implications on Firm Value. Quantitative data will be used to gather the necessary information for analyzing the relationships between these variables.Methodology: This study utilized a sample of 7 companies selected through purposive sampling, which involves choosing samples based on specific criteria. The data used for analysis is secondary data obtained from the annual reports available on the official website of the Indonesia Stock Exchange (IDX). The data analysis methods employed in this study include panel data regression analysis, multiple linear regression analysis, hypothesis testing, and determination coefficient analysis.Finding: The findings of the study revealed that when considered collectively, the Activity Ratio, Liquidity, Profitability, and Solvency variables had a significant impact on the Stock Price, as indicated by a coefficient of determination (R2) of 69.92%. Individually, the Activity Ratio exhibited a negative and significant influence on the stock price, while profitability demonstrated a positive and significant effect on the stock price. On the other hand, liquidity and solvency were found to have no significant effect on the stock price. Additionally, the study identified a significant relationship between Stock Price and Firm Value The results show that the company's activity (Activity Ratio), liquidity (Liquidity), profitability (Profitability), and solvency (Solvency) have a significant impact on stock prices. Companies with high activity levels, good liquidity, high profitability, and strong solvency tend to have higher share prices. This research provides an understanding of the factors that influence stock prices and can assist investors, financial analysts, and companies in making investment decisionsConclusion: The conclusions of this study are Activities measured by TATO, Liquidity measured by CAR, Profitability measured by ROA in pharmaceutical industry sub-sector companies for the 2009-2020 period tend to decrease, while Solvency measured by DAR and Firm Value in pharmaceutical industry sub-sector companies for the 2009-2020 period tends to increase, 

The Effect of Activity, Liquidity, Profitability, And Solvency on Stock Prices and Implications on Firm Value: Pharmaceutical Industry Sub-Sector Companies

This study aims to investigate the impact of microeconomic and macroeconomic factors on the market price per share using panel data from 13 listed Jordanian commercial banks during the period 2010–2021. Based on a microeconomic level the firm-specific variables are earnings per share (EPS), dividend per share (DPS), price-earnings ratio (PE), book value per share (BV), return on assets (ROA), and size (S). Similarly, gross domestic product (GDP), inflation (INF), and money supply (MS) were chosen as independent variables for the macroeconomics whereas the company’s dependent variable is market price per share (MPS). Earnings per share are the most internal and external factors affecting the share price (Arshad, Arshaad, Yousaf, & Jamil, 2015). This paper has investigated the influence of bank-specific and macroeconomic factors on the share price of Jordanian commercial banks using multiple regression models. Based on the regression results, the coefficient of EPS is positive at the 1% level of significance. implying that the greater the EPS, the higher the MPS. The same positive impacts for DPS, ROA, and S are considered major predictors of stock prices in Jordan. Volume was discovered to be the most important determining variable impacting stock price among the factors. This indicates that the bigger the company’s market capitalization, the higher the stock price. Major variables that impact the stock price include macroeconomic data such as GDP and MS.

https://virtusinterpress.org/spip.php?action=telecharger&arg=10883&hash=0878c2ed556f272862a23ac3bf4c2edfadd379fc

Factors affecting stock price: Evidence from commercial banks in the developing market

This paper aims to analyze the effect of the beta inversion on COVID-19 by applying the capital asset pricing model and difference-in-differences (DiD) model in the US covering the five-year period from April 26, 2017, to April 22, 2022. Coronavirus induced pandemic has altered the fundamentals of the market (Baker, Bloom, Davis, Kost, et al., 2020; Mazur et al., 2021). The higher the value beta, the greater the potential for better long-term returns, according to the capital asset pricing model (CAPM). This study showed that companies that appeared to be safe to invest in are suddenly more dangerous, and the opposite is also true. Such as industries that previously shown a contractionary effect — aviation and retail, during COVID-19 have shown more benign effects on the market. The DiD model also reveals the same. The World Health Organization (WHO) intervention had a negligible effect on the treatment group, according to the model. It is obvious that beta has been inverted before investing in these sectors. The companies that are expected to perform better like pharma and biotech, have underperformed. This study deploys the understanding of the capital asset pricing model to see how different markets performed during and before the pandemic.

Beta inversion effect of COVID-19 pandemic using capital asset pricing model

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Factors affecting stock price: Evidence from commercial banks in the developing market

Beta inversion effect of COVID-19 pandemic using capital asset pricing model