Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222964
Authors: 
Carletti, Elena
Oliviero, Tommaso
Pagano, Marco
Pelizzon, Loriana
Subrahmanyam, Marti G.
Year of Publication: 
2020
Series/Report no.: 
SAFE Working Paper No. 285
Abstract: 
We employ a representative sample of 80,972 Italian firms to forecast the drop in profits and the equity shortfall triggered by the COVID-19 lockdown. A 3-month lockdown generates an aggregate yearly drop in profits of about 10% of GDP, and 17% of sample firms, which employ 8.8% of the sample's employees, become financially distressed. Distress is more frequent for small and medium-sized enterprises, for firms with high pre-COVID-19 leverage, and for firms belonging to the Manufacturing and Wholesale Trading sectors. Listed companies are less likely to enter distress, whereas the correlation between distress rates and family firm ownership is unclear.
Subjects: 
COVID-19
pandemics
losses
distress
equity
recapitalization
JEL: 
G01
G32
G33
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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