Determinants and the Impact of COVID-19 Pandemic Crisis in the Continuity of Cooperative Health Plan Operators Through Liquidity

24 Pages Posted: 7 Jun 2021

See all articles by Ederaldo Lima

Ederaldo Lima

Fucape Business School

Aziz Beiruth

Independent

Antonio Lopo Martinez

University of Coimbra; University of Salamanca

Date Written: May 29, 2021

Abstract

This research investigates Brazil's cooperative health plan operators (CHPOs) from the perspective of continuity in terms of liquidity ratios. The principle of continuity presupposes the going concern basis of the entity where liquidity is a critical issue. A detailed study of CHPO's financial accounting statements was made from a quarterly database from 2018 to 2020 to investigate this phenomenon. Two broad research questions were investigated. The first focuses on identifying the impact of ROA, debt ratios, and the surplus in the liquidity ratios, a crucial aspect to evaluate the going concern basis of CHPOs. The second avenue of research studies the effect of the Covid-19 pandemic crisis on liquidity and debt to equity ratios from CHPOs. Methodologically, a fixed-effects panel and a difference-in-differences model were used to measure the determinants of liquidity ratios and impacts of COVID-19 on CHPOs, respectively. The results pointed out a positive effect of ROA, debt-to-equity ratio, and surplus of CHPOs' liquidity, reinforcing their crucial role in the continuity of these health operators. Additionally, the impact of COVID-19's findings remarks on the significant positive effect of the sanitary crisis on the finances of the CHPOs.

Keywords: Cooperatives health plan operator; continuity; liquidity ratios; COVID-19

JEL Classification: G32

Suggested Citation

Lima, Ederaldo and Beiruth, Aziz and Martinez, Antonio Lopo and Martinez, Antonio Lopo, Determinants and the Impact of COVID-19 Pandemic Crisis in the Continuity of Cooperative Health Plan Operators Through Liquidity (May 29, 2021). Available at SSRN: https://ssrn.com/abstract=3855889 or http://dx.doi.org/10.2139/ssrn.3855889

Ederaldo Lima

Fucape Business School ( email )

Brazil

Aziz Beiruth

Independent ( email )

Antonio Lopo Martinez (Contact Author)

University of Coimbra ( email )

Pátio das Escolas
Coimbra
Portugal

University of Salamanca ( email )

Campus Miguel de Unamuno
Salamanca, Salamanca 23007
Spain

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