Effect of cash reserves on the market performance of brazilian industrial companies during the stages of the Covid-19 crisis
DOI:
https://doi.org/10.21680/2176-9036.2026v18n2ID38891Keywords:
Cash reserves, Market performance, Pre-crisis, crisis and resumption of the crisisAbstract
Purpose: Analyze the effect of cash reserves on the market performance of Brazilian companies during the stages of the Covid-19 crisis.
Methodology: Descriptive, documentary and quantitative research. The sample included 74 Brazilian industrial companies listed on Brazil, Bolsa, Balcão (B3), with data from 2017 to 2022, with 2017 to 2019 being the pre-crisis period, 2020 the crisis period and 2021 and 2022 the period of resumption of the crisis. To achieve the research objective, statistical techniques were used, with emphasis on multiple linear regression models.
Results: Indicate that cash reserves positively influence market performance, and that during the Covid-19 crisis, this positive effect is maximized. On the other hand, during the economic resumption, although the positive effect remains, it is quite reduced, being the smallest in the three scenarios evaluated. Additionally, it is noted that company size and sales growth have the potential to explain the market performance of Brazilian industrial companies, both having a positive effect.
Contributions of the Study: Corporate resilience, especially during unstable periods, has been highly sought after, and it has been demonstrated that the sizing of cash reserves supports financial resilience. Therefore, managers are direct to consider economic stages in order to better manage the volume of available financial resources that they must maintain in the organizations they manage. Specifically, the insights highlighted have the potential to strengthen organizations in the constant search for retaining and attracting investors at different economic stages, providing constant maximization in the market performance of companies. In short, and considering the current globalized economic context, these considerations contribute to Brazilian companies being better positioned in future crises.
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