the impact of the covid-19 crisis on corporate performance: the moderating role of cash and human resources

The main objective of this study was to examine the impact of the covid-19 crisis on firms' financial and market performance. the study employed quarterly data from a sample of firms listed on the tehran stock exchange, covering 22 quarters 11 quarters before the covid-19 crisis and 11 quarters during the pandemic. in total, 2,310 firm-quarter observations were analyzed using panel data methods in eviews 13 software. the findings indicated that during the quarters affected by covid-19, the pandemic had a significant negative effect on the operating profit ratio and return on assets. in contrast, due to the inflationary conditions induced by the pandemic, covid-19 exerted a significant positive effect on stock prices and, consequently, on firms' market performance. moreover, the results showed that adequate cash holdings mitigate the adverse effects of covid-19 on both financial and market performance, suggesting that sufficient liquidity can serve as a financial buffer during crises. conversely, a larger workforce amplifies the negative effect of covid-19 on financial performance, given that covid-19 is a human-centered crisis, while it does not influence the relationship between covid-19 and market performance. beyond confirming the expected negative impact of the covid-19 crisis on firms' financial performance, the findings highlighted two novel contributions. first, they showed that maintaining adequate cash holdings can serve as a defensive shield for firms during crises. second, they revealed that a larger workforce may intensify the adverse effects of human-centered crises, such as the covid-19 pandemic. accordingly, the study suggested that firms should prioritize holding sufficient cash reserves as well as implementing human resource policies—such as training, preparedness, and succession planning—to better withstand future crises.