The COVID-19 economic crisis in 2020 (COVID-19 crisis) and 2007-2009 global financial crisis (GFC) were both worldwide and posed significant challenges for firms. In this study, using Hofstede’s cultural dimension framework to analyze the cross-country, firm-level data for thousands of firms...

We examine the impact of covenant violation on corporate operational efficiency. Using aggregate measures of operational efficiency developed by Demerjian et al. (2012), we find that covenant violations are negatively associated with operational efficiency, suggesting lower operational...