Decline and Recovery of Firm Performance Through an Exogenous Shock: A Study on Indian Companies During Covid-19 Pandemic.

The paper evaluates the impact of Covid-19 pandemic on firm performance along with other corporate finance variables. As expected, Covid-19 had a negative impact on firm’s performance, especially on small firms with pronounced leverage. The paper also highlights that firms with higher cash holdings were resilient in the face of the pandemic. Manufacturing firms were the worst hit as their tasks could not be executed remotely; supply chain of raw materials was severely disrupted. Another sector that bore the brunt was travelling and hospitality, where tasks cannot be digitized. [ABSTRACT FROM AUTHOR]