Financial Positions of U.S. Public Corporations: Part 2, The Covid-19 Earnings Shock
Abstract: This blog is the second in a series that discusses how the current pandemic affects the financial positions of publicly traded U.S. corporations, the potential implications of these financial developments, and the federal policy response. The first blog discussed the financial positions before the pandemic started. It documented that many nonfinancial publicly traded companies entered 2020 with historically elevated levels of leverage. This second blog explains how we use stock returns to project the potential earnings losses due to Covid-19; this will be used in our next blog to project the evolution of firms’ financial positions.
File(s): File format is text/html https://www.chicagofed.org/publications/blogs/chicago-fed-insights/2020/financial-positions-part2
Provider: Federal Reserve Bank of Chicago
Source: Federal Reserve Bank of Chicago
Publication Date: 2020-05-12