IMPACT OF COVID-19 (A BLACK SWAN) ON LIQUIDITY AND PROFITABILITY OF THE CEMENT INDUSTRY IN PAKISTAN

Abstract

This investigation examines the special effects of the black swan phenomenon of the COVID-19 Epidemic on Liquidity and returns of cement sector establishments in Pakistan. This unhappy great unknown will present the aftermath evidence of what magnitude the virus has swayed the operating flow of funds indicators and financial performance of the cement industry, damaged by the black swan event. To establish the effects empirically, some of the verily essential three considered factors for liquidness are utilised as proxies, like current ratio (CR), Cash to current liabilities (CL), and (CCC) Cash conversion cycle efficiency. Furthermore, for the measurement of profitability (ROA), return on assets and return on equity (ROE) return on equity were used to drive the relationship between pandemic and profitability. Whereas, (COVID-19 pre-Pandemic proxy duration Period for three years ranges from 2016 to 2018, and the post-COVID-19 period (2019 to 2021). For the hypotheses, testability statistical analysis in EViews was framed and directed using the test of equality of means and analysis of variance between the series and within the series difference.   The data of 12 cement manufacturing firms were collected from the annual financial reports listed in the Pakistan Stock Exchange (PSX) from 2016 to 2021. The study's findings show that the COVID-19 Pandemic has significantly affected the Liquidity and Profitability of the cement industry in Pakistan.

Keywords: Covid-19, Black Swan theory, Cement Industry, Profitability, Liquidity