COVID-19 PANDEMIC AND CASH FLOWS IN ELECTRICITY DISTRIBUTION COMPANIES

Introducción, Desarrollo, Materiales Y Métodos, Resultados, Conclusiones, Bibliografí­a

Abstract

The objective of this applied research was to describe the main effects generated by COVID-19 on cash flows and to determine the relationship between cash flows generated by operating activities and payments for fixed investments and dividend payments. The methodology used was descriptive and correlational, with a quantitative approach, non-experimental design with a cross-sectional cut. The technique used was content analysis; the non-probabilistic sample is 32 annual cash flow statements, from eight electricity distribution companies listed on the Lima Stock Exchange corresponding to the periods 2017 to 2020. The results indicate that there is a positive and significant direct relationship between operating cash flows and fixed investment payments, with a degree of correlation of 0.816, and a positive and moderate direct relationship between operating cash flows and dividend payments, with a degree of correlation of 0.631. It is concluded that due to the COVID-19 pandemic there has been a financial impact on cash flows and that the cash flow adequacy ratio had a significant decrease in the 2020 period.

KEY WORDS: Cash adequacy; Operating cash; Cash management; liquidity; Cash flow ratios