The paper investigates the financial vulnerability of non-financial firms during the Coronavirus (COVID-19) epidemic … crisis. In particular, it evaluates the extent to which firms may run into a liquidity crisis following the COVID-19 outbreak … face liquidity shortfalls after 10 months since the implementation of confinement measures. Comparing the impact of …

-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it … the expectations of liquidity support that motivate low-quality firms to overinvest pre-crisis. Finally, the size of … on savings discourage firms from self-insurance against crises through internal liquidity accumulation …

Ensuring liquidity is critical for the functioning of banks. This study investigates the functional form of bank … profit-maximizing level of liquidity. However, Islamic banks are less nonlinear than conventional banks, suggesting that … profitability. Additionally, we find that the optimal level of liquidity to maximize profitability fell during Covid-19 as the …