Dismissals and Temporary Leaves in Romanian Companies in the Context of Low Demand and Cash Flow Problems during the COVID-19 Economic Lockdown

Elena-Sabina Turnea, Ștefan Andrei Neștian, Silviu Mihail Tiță, Ana Iolanda Vodă and Alexandra Luciana Guță
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Elena-Sabina Turnea: Department of Management, Marketing and Business Administration, Alexandru Ioan Cuza University of Iași, Blvd. Carol I, No. 22, 700505 Iași, Romania
Ștefan Andrei Neștian: Department of Management, Marketing and Business Administration, Alexandru Ioan Cuza University of Iași, Blvd. Carol I, No. 22, 700505 Iași, Romania
Silviu Mihail Tiță: Department of Management, Marketing and Business Administration, Alexandru Ioan Cuza University of Iași, Blvd. Carol I, No. 22, 700505 Iași, Romania
Ana Iolanda Vodă: Social Sciences and Humanities Research Department, Institute for Interdisciplinary Research, Alexandru Ioan Cuza University of Iasi, Lascăr Catargi Street, No. 54, 700107 Iaşi, Romania
Alexandra Luciana Guță: Department of Management, Marketing and Business Administration, Alexandru Ioan Cuza University of Iași, Blvd. Carol I, No. 22, 700505 Iași, Romania

Sustainability, 2020, vol. 12, issue 21, 1-22

Abstract: The aim of this study is to describe the relations between low demand, cash flow problems, employee dismissals, and temporary leaves experienced by Romanian companies during the economic lockdown in the first two months of the COVID-19 pandemic outbreak in Romania (16 March–16 May 2020). For this purpose, we conducted a quantitative study using descriptive, correlation, and regression analyses applied to data collected from company decision-makers. Our results show that demand for products/services and cash flow in companies has decreased significantly, the workforce being affected by dismissals and temporary leaves/furloughing. Additionally, the average linear revenue of companies has been decreasing due to insufficient cash flow, higher absenteeism of workers, customers having been affected, and the demand going down. Therefore, employee dismissals, employee temporary leaves (furlough), and dismissal intentions have been positively correlated with insufficient cash flow in companies and an extremely low demand.

Keywords: COVID-19; pandemic; companies; dismissal; temporary leave; cash flow; low demand; Romania; furlough; challenges (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:21:p:8850-:d:434338

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