Finance, Law, and the Crisis of COVID-19: An Interdisciplinary Perspective

The COVID-19 pandemic has had a significant impact on various areas, including corporate social responsibility, legislation in SMEs, insolvency law, behavioral finance, government interventions in markets, financial disclosure, the emergence of unregulated financial sectors, the increase of coronavirus-related crimes, and the development of banking regulations. Governments and the international community prioritized preventing infections and caring for those affected, but this required an unusual increase in health spending and a review of transparency requirements. Financial management systems must be flexible and responsive to all occurrences, ensuring optimal use of resources and minimizing the risks of fraud and corruption.

Format: Paperback / softback
Length: 235 pages
Publication date: 20 February 2023
Publisher: Springer Nature Switzerland AG

The COVID-19 pandemic has had a profound impact on various aspects of society, including corporate social responsibility, legislation in small and medium-sized enterprises (SMEs), insolvency law, behavioral finance, government interventions in markets, financial disclosure, the emergence of unregulated financial sectors, the increase in coronavirus-related crimes, and the development of banking regulations.

Corporate Social Responsibility:

The pandemic has put pressure on companies to prioritize their social responsibilities and adapt to the changing needs of their stakeholders. Many companies have responded by implementing measures to support their employees, customers, and communities, such as providing paid leave, donating resources to healthcare organizations, and implementing social distancing measures. However, there have also been concerns about the ethical implications of some companies' responses, such as prioritizing profits over public health.

Legislation in SMEs:

The pandemic has created significant challenges for SMEs, which are the backbone of many economies. Governments have implemented various measures to support these businesses, such as loan guarantees, tax relief, and regulatory flexibility. However, there have been concerns about the uneven distribution of these benefits and the potential impact on small businesses' long-term sustainability.

Insolvency Law:

The pandemic has led to an increase in insolvencies, particularly in sectors such as hospitality and travel. Insolvency law has been crucial in managing these situations, with courts and creditors working together to find solutions that protect the interests of all parties. However, there have been challenges in implementing these laws, particularly in countries with limited resources and legal infrastructure.

Behavioral Finance:

The pandemic has highlighted the importance of behavioral finance in understanding and managing financial risks. Researchers have studied the impact of fear, uncertainty, and other psychological factors on financial decision-making and have developed strategies to mitigate these risks. However, there are still challenges in applying these strategies in practice, particularly in the context of SMEs.

Government Interventions in Markets:

Governments have intervened in markets to stabilize financial institutions and prevent economic collapse. These interventions have included quantitative easing, bailout programs, and regulatory changes. However, there have been concerns about the potential impact on government budgets and the distribution of benefits.

Financial Disclosure:

The pandemic has increased the importance of financial disclosure, as companies need to provide accurate information to their investors and stakeholders. Companies have been required to disclose their financial performance, risks, and strategies for dealing with the pandemic. However, there have been concerns about the transparency and accuracy of these disclosures, particularly in the context of SMEs.

The Emergence of Unregulated Financial Sectors:

The pandemic has led to the emergence of unregulated financial sectors, such as online lending and cryptocurrency. These sectors have grown rapidly but have also been associated with high risks and fraud. Governments have been working to regulate these sectors to protect consumers and prevent financial instability.

The Increase in Coronavirus-Related Crimes:

The pandemic has also led to an increase in coronavirus-related crimes, such as fraud, theft, and cyberattacks. Governments have been working to address these crimes and protect the public from financial harm.

Banking Regulations in the COVID-19 Pandemic:

The pandemic has led to the development of new banking regulations to address the unique challenges posed by the crisis. These regulations have included measures to support financial institutions, promote financial stability, and protect consumers. However, there have been concerns about the potential impact on banks' profitability and the distribution of benefits.

Conclusion:

The COVID-19 pandemic has had a profound impact on various aspects of society, including corporate social responsibility, legislation in SMEs, insolvency law, behavioral finance, government interventions in markets, financial disclosure, the emergence of unregulated financial sectors, the increase in coronavirus-related crimes, and the development of banking regulations. Governments and the international community have been working to address these challenges and protect the public from financial harm. However, there are still significant challenges that need to be addressed, such as the uneven distribution of benefits, the impact on small businesses' long-term sustainability, and the need for transparency and accountability in financial disclosure.

Weight: 379g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030894184
Edition number: 1st ed. 2022