The Impact of the Corona virus and trade credit on the profitability and value of companies

Abstract

This study aimed to identify the impact of the Corona virus and commercial credit risks on the profitability and value of companies. The problem of the study was the presence of real risks that threaten the profitability of companies resulting from commercial credit risks and the Corona crisis. The study adopted the descriptive analytical approach, and the study population represents commercial companies in the Kingdom of Saudi Arabia. Saudi Arabia, and the study concluded with a set of results, the most important of which are: the presence of a significant impact of commercial credit risks on the profitability and value of companies, the existence of a statistically significant relationship between commercial credit risks and corporate profitability, and the study proved the existence of a negative correlation between credit risk and the Corona crisis as an independent variable and between companies’ profitability as a variable. continued.  The study recommended that companies should review the mechanisms and procedures taken to confront the risks of commercial credit on the profitability of companies, and review the mechanisms and procedures taken to confront the risks of the Corona crisis on the profitability and value of companies.