Title: A study on the impact of COVID-19 on the financial health of Indian companies

Authors: R. Ramprakash; C. Joe Arun

Addresses: Loyola Institute of Business Administration, Loyola College Campus, Nungambakkam, Chennai-34, Tamil Nadu, India ' Loyola Institute of Business Administration, Loyola College Campus, Nungambakkam, Chennai-34, Tamil Nadu, India

Abstract: Unexpected lockdown of the country for more than four months has led to a huge reduction of economic activity and adversely affected the profitability and liquidity of companies. The study aims to assess the potential damage caused by COVID-19 to the financial health of Indian companies. NSE NIFTY 50 companies were selected as a sample for the study and Altman Z-Score model was used to measure their financial health at the end of December 2019, March 2020 and June 2020. Paired sample t-test was used to test significant changes in financial health during the period of study. The study witnessed adverse impact of COVID-19 on the financial health of selected companies. Oil, Gas, Metals, Power, Construction, Fertilisers, Pesticides, Services and Telecom are the sectors which are adversely affected by the pandemic.

Keywords: COVID-19; financial health; NIFTY-50; Altman Z-score; economic cost of pandemics.

DOI: 10.1504/IJMEF.2022.128509

International Journal of Monetary Economics and Finance, 2022 Vol.15 No.5, pp.484 - 507

Received: 17 Mar 2021
Accepted: 06 Dec 2021
Published online: 24 Jan 2023 *

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