Goodwill's Moderating Effect on the Correlation Between the Covid-19 Pandemic and Cash Holdings: The Example of Tunisian Publicly Traded Firms
Purpose: The company's operations will always be a part of its finances. Indeed, the topic of liquidity is essential to proper operation, even during times of crisis. This study examines the impact of goodwill on the relationship between the COVID-19 crisis and the amount of cash held by Tunisian-owned businesses. Design/Methodology/Approach: The company is made up of 40 non-financial Tunisian businesses that are listed on the Bourse des Valeurs Mobilières de Tunis and belong to eight different activity sectors. The study period runs from 2016 to 2020. With the use of the DID method, we employed a methodological approach with panel data. Findings: Our findings show a positive and significant correlation between the COVID-19 crisis and the amount of cash held by businesses. Furthermore, we found that the presence of two moderators goodwill and the devaluation of goodwill reduce the positive correlation between the COVID-19 crisis and the level of cash detention in a meaningful way. Practical implications: Originality/value: