FINANCIAL IMPACT OF COVID-19: STOCK MARKET VOLATILITY AND US CASH CRISIS
Abstract and keywords
Abstract (English):
This article examines the financial implications of COVID-19 in the United States. The author examines the problems faced by financial institutions in America and tries to answer two questions. First, is the current level of volatility in the US “normal”? Second, will COVID-19 and low oil prices lead to a cash crisis in the country? To answer the questions posed, the main indexes and indicators of the stock market are assessed. Also, the author analyzes the behavior of companies and how they "adapt" to new realities. Particular attention is paid to the Federal Reserve System, which is trying to help companies get out of a difficult situation.

Keywords:
US stock market, cash crisis, S&P 500, VIX, dividends
References

1. Bykova O.N., Zamirovich E.N. Innovacionnye aspekty strategii social'no-ekonomicheskogo razvitiya na mezourovne [Innovative aspects of the strategy of socio-economic development at the meso-level]. Ministerstvo obrazovaniya i nauki Rossijskoj Federacii, Federal'naya sluzhba po intellektual'noj sobstvennosti, patentam i tovarnym znakam, Gos. obrazovatel'noe uchrezhdenie vyssh. prof. obrazovaniya Rossijskij gos. in-t intellektual'noj sobstvennosti [Ministry of Education and Science of the Russian Federation, Federal Service for Intellectual Property, Patents and Trademarks, State. educational institution higher. prof. education Russian state. in-t of intellectual property]. Moscow, 2008.

2. Bykova O., Suslova S. Logisticheskij transfert tekhnologij kak metod diffuzii innovacij [Logistic transfer of technologies as a method of diffusion of innovations]. Logistika [Logistics]. 2011, I. 8 (61), pp. 23-25.

3. Profatilov D.A., Bykova O.N., Olkhovskaya M.O.CROWDFUNDING: ONLINE CHARITY OR A MODERN TOOL FOR INNOVATIVE PROJECTS IMPLEMENTATION? Asian Social Science. 2015. V. 11. I. 3. S. 146-151.

4. Bykova O.N. Mekhanizmy formirovaniya innovacionnoj deyatel'nosti [Mechanisms for the formation of innovative activities]. Moscow, 2012.

5. Bykova O.N., Anisimov A.Yu., Vojtova L.M., Ol'hovskaya M.O. Sovremennoe sostoyanie i mekhanizmy innovacionnogo razvitiya rossijskoj ekonomiki [The current state and mechanisms of innovative development of the Russian economy]. Moscow, 2015.

6. Blohina T.K., Bykova O.N., Ermolaeva T.K. Ekonomika i upravlenie innovacionnoj organizaciej [Economics and management of an innovative organization]. Moscow, 2015.

7. Bykova O.N., Smirnova V.R., Aushev V.M. Innovacionno-investicionnaya strategiya razvitiya regionov [Innovation and investment strategy for the development of regions]. Gos. obrazovatel'noe uchrezhdenie vyssh. prof. obrazovaniya Rossijskij gos. in-t intellektual'noj sobstvennosti [State educational institution higher. prof. education Russian state. in-t of intellectual property]. Moscow, 2009.

8. Bykova O.N. Formirovanie strategii innovacionnogo razvitiya sanatorno-kurortnogo i turistskogo kompleksa (na primere goroda-kurorta Sochi). Dokt. Diss [Formation of a strategy for the innovative development of a sanatorium and resort and tourist complex (on the example of the resort city of Sochi). Doct. Diss]. Ros. gos. in-t intellektual. sobstvennosti Rospatenta [Ros. state in-t intellectual. property of Rospatent]. Moscow, 2009.

9. Bykova O.N., Ol'hovskaya M.O., Profatilov D.A. Kraudfanding: internet-blagotvoritel'nost' ili instrument investirovaniya innovacionnogo proekta? [Crowdfunding: Internet charity or an investment tool for an innovative project?]. Innovacii [Innovation]. 2015, I. 2 (196), pp. 58-63.

10. Garnov A., Kireeva N. Strategicheskoe planirovanie i upravlenie kak osnova uvelicheniya mnogozvennymi logisticheskimi cepyami stoimosti biznesa [Strategic planning and management as the basis for increasing the value of business by multi-link logistics chains]. Logistika [Logistics]. 2012, I. 1 (62), pp. 20-23.

11. Garnov A., Procenko I. Logisticheskij podhod k povysheniyu effektivnosti informacionno-analiticheskogo obespecheniya biznes-processov [Logistic approach to improving the efficiency of information and analytical support of business processes]. RISK: Resursy, Informaciya, Snabzhenie, Konkurenciya [RISK: Resources, Information, Procurement, Competition]. 2012, I. 4, pp. 30-34.

12. Sidorov M.N., Garnova V.Yu. Neobhodimye korrektivy ekonomicheskoj politiki [Necessary adjustments to economic policy]. Nauchnye issledovaniya i razrabotki. Ekonomika firmy [Research and Development. The economy of the company]. 2019, V. 8, I. 1, pp. 46-52.

13. Garnov A.P., Kireeva N.S. Finansovye, material'nye i informacionnye potoki: tochka vzaimodejstviya v logistike [Financial, material and information flows: a point of interaction in logistics]. RISK: Resursy, Informaciya, Snabzhenie, Konkurenciya [RISK: Resources, Information, Procurement, Competition]. 2017, I. 2, pp. 48-51.

14. Garnova V., Garnov A., Khudyakov S. Russia and the EU: about the features of pragmatism [Russia and the EU: about the features of pragmatism]. Nauchnye issledovaniya i razrabotki. Ekonomika firmy [Research and development. The economy of the company]. 2016, V. 5, I. 2, pp. 50-55.

15. Almeida, H., Campello, M. & Weisbach, M. S., - 2004. The Cash Flow Sensitivity of Cash. The Journal of Finance, 59 (14), - C. 1777-1804.

16. Campello, M., Graham, J. & Harvey, C., - 2010. The real effect of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, Volume 97, -C. 470-487.

17. Duchin, R., Ozbas, O. & Sensoy, B., 2010. Costly external finance, corporate investment, and the subprime mortgage credit crisis. Journal of Financial Economics, Volume 97, -C. 418-435.

18. Garcia-Appendini, E. & Montoriol-Garriga, J., 2013. Firms as liquidity providers: Evidence from the 2007-2008 financial crisis.. Journal of Financial Economics, Volume 109, -C. 272-291.

19. Halm, Mendelson and Y. Amihud (1987), “Trading Mechanisms and Stock Teturns: An Empirical Investigation”; Journal of Finance, -C. 533-553.

20. Ivashina, V. & Scharfstein, D., 2010. Bank leading during the financial crisis of 2008. Journal of Financial Economics, Volume 37, -C. 319-338.

21. Improvement of approaches to labor regulation in service sector enterprises Reznikova O.S., Korolenko J.N., Enenko G.Y., Tkachenko D.V., Repnikova V.M. Journal of Environmental Management and Tourism. 2019. V. 10. I. 4 (36). S. 886-891.Reznikova O.S., Korolenko J.N., Enenko G.Y., Tkachenko D.V., Repnikova V.M. Journal of Environmental Management and Tourism. 2019. V. 10. I. 4 (36). S. 886-891.

22. Improvement of financial security technologies for entrepreneurial entities. Repnikova V.M., Bykova O.N., Shmanev S.V., Kerimov V.E., Kozhina V.O. International Journal of Engineering and Advanced Technology . 2019. V. 8. I. 5. S. 2256-2260.

23. Jones, Charles, Mark Walker, and Jack Wilson. \"(2004): Analyzing Stock Market Volatility Using Extreme-Day Measures.\" Journal of Financial Research 27 285-601. Social Science Research Network. - Rezhim dostupa: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=518043 (accessed 09 September 2020).

24. Jones, Johnathan, J. H. Mulherin, and Sheridan Titman. (1990), \"Speculative Trading and Stock Market Volatility.\" Anderson Graduate School of Finance. University of California, Los Angeles. - Rezhim dostupa: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1179&context=anderson/fin (accessed 19 September 2020).

25. Perdersen, Casse Heje (2008) “Liquidity Risk and the Current Crisis” Vox Research Based Analysis, - Rezhim dostupa: www.voxeu.org (accessed 19 August 2020).

26. Schwert, William. \"Why does Stock Market Volatility Change Over Time.\" The Journal of Finance XLIV (1989): 1115-153. NBER. Mar. 1990. National Bureau of Economic Research. - Rezhim dostupa: http://www.nber.org/papers/w2798 (accessed 15 August 2020).

27. List of largest daily changes in the Dow Jones Industrial Average. - Rezhim dostupa: https://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average (accessed 15 August 2020).

28. Stock Market Volatility: An Erratic Cycle. - Rezhim dostupa: https://www.crestmontresearch.com/docs/Stock-Volatility-Cycle.pdf (accessed 15 August 2020).

29. Look Beyond Stocks for True Extent of Corporate Devastation. Available at: https://www.bloomberg.com/news/articles/2020-04-24/look-beyond-stocks-for-the-true-extent-of-corporate-devastation (accessed 15 August 2020).

30. Repnikova V.M. Razvitie korporativnyh form hozyajstvovaniya v smeshannoj ekonomike Rossii [Development of corporate forms of management in the mixed economy of Russia]. Moscow, 1998.

31. The scramble for cash: companies need liquidity to survive. - Rezhim dostupa: https://espresso.economist.com/f50f73e7e7cab902f8053efa57918bd3 (accessed 15 August 2020).

32. Federal Reserve Economic Data | FRED | St. Louis Fed. - Rezhim dostupa: https://fred.stlouisfed.org/ (accessed 15 August 2020).

33. Federal Reserve Economic Data | FRED | St. Louis Fed. - Rezhim dostupa: https://fred.stlouisfed.org/series/BAMLH0A0HYM2 (accessed 15 August 2020).

34. Federal Reserve Economic Data | FRED | St. Louis Fed. - Rezhim dostupa: https://fred.stlouisfed.org/series/GS10 (accessed 15 August 2020).

35. Technologies for assessing the level of enterprise development. Repnikova V.M., Bykova O.N., Stroev P.V., Khvoevsky S.A., Gaydarenko V.A. International Journal of Recent Technology and Engineering. 2019. V. 8. I. 3. S. 4407-4410.

36. Bykova O.N., Repnikova V.M. Faktory innovacionnogo razvitiya Rossii kak prioritetnaya zadacha rosta ekonomiki i razvitiya promyshlennosti (gosudarstvennoe stimulirovanie innovacionnoj deyatel'nosti) [Factors of innovative development of Russia as a priority task of economic growth and industrial development (government incentives for innovation)]. Normirovanie i oplata truda v promyshlennosti [Rationing and wages in industry]. 2019, I. 8, pp. 50-54.

Login or Create
* Forgot password?