Person:
Gómez, Juan Pedro

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Juan Pedro
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Gómez
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IE University
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IE Business School
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Finance
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2020 - 20222
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Author: De Vito, Antonio ×

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Now showing 1 - 2 of 2
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    Publication
    Estimating the COVID-19 cash crunch: Global evidence and policy
    (Elsevier, 2020-04-25) Gómez, Juan Pedro; De Vito, Antonio; Trombetta, Marco; Ministerio de Economía y Competitividad; Agencia Estatal de Investigación; European Regional Development Fund; https://ror.org/02jjdwm75
    In this paper, we investigate how the COVID-19 health crisis could affect the liquidity of listed firms across 26 countries. We stress-test three liquidity ratios for each firm with full and partial operating flexibility in two simulated distress scenarios corresponding to drops in sales of 50% and 75%, respectively. In the most adverse scenario, the average firm with partial operating flexibility would exhaust its cash holdings in about two years. At that point, its current liabilities would increase, on average, by eight times, suggesting that the average firm would have to resort to the debt market to prevent a liquidity crunch. Moreover, about 1/10th of all sample firms would become illiquid within six months. Finally, we study two different fiscal policies, tax deferrals and bridge loans, that governments could implement to mitigate the liquidity risk. Our analysis suggests bridge loans are more cost-effective to prevent a massive cash crunch.
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    Within-firm Pay Inequality and Firm Performance
    (2022-03) De Vito, Antonio; Gómez, Juan Pedro; https://ror.org/02jjdwm75
    Using a unique dataset with administrative information on over two million matched employeremployee-year observations in Italy over the 1994-2000 period, we examine the causal effect of a quasi-exogenous shock to within-firm pay inequality on firm performance. Consistent with the fair wage-effort hypothesis, pay dispersion increases among firms whose workers show lower sensitivity to pay inequality. These firms outperform similar firms whose workers show higher sensitivity to pay inequality. Our results unveil a shadow cost of relative wage concerns for firms and the potential adverse effects of imposing an ad hoc limit on firms’ pay dispersion.