COVID－19가 기업의 현금보유 및 가치 관련성에 미치는 영향

[Purpose] This study examines the impact of COVID－19 on the relevance of cash holdings and cash flows, and analyzes how cash reserves and cash flows can be interpreted and evaluated differently in crisis situation such as COVID－19. [Methodology] Specifically, this study compare the relevance of cash holdings and cash flows before and after the outbreak of COVID－19 using data from publicly listed companies in Korea. It also examine the relevance of cash flows generated from operating, financing, and investing activities by separating cash flows according to their source. [Findings] The main findings are as follows: First, after the outbreak of COVID－19, there is a significant increase in the relevance of cash holdings and their value. Second, only cash flows from operating activities show a significant increase in relevance after the outbreak of COVID－19. This indicates that with the increased uncertainty due to COVID－19, companies adopt more conservative cash holding strategies for risk management and liquidity, cash flows from operating activities, in contrast to investing and financing activities, is a more useful indicator of the core business operations' health and sustainability. [Implications] The results of this study demonstrate how the uncertainty brought about by COVID－19 affected the relevance of cash holdings and cash flows in companies. It provides insights necessary for understanding firms' financial resilience and risk management strategies in crisis situations, contributes to preparing for future similar situations, and offers implications for financial management, risk management, and investment decisions.