A Comparative Study of Working Capital Management and Short-Term Financing Policies Before and After the Spread of the COVID-19 Virus Evidence from Financial Statements of Listed Service and Health Sector Companies on the Stock Exchange of Thailand

Abstract

This research paper is a descriptive study aimed at comparing working capital management policies and short-term financing policies before and after the spread of the COVID-19 virus. The population of the study comprises hospitals listed on the Stock Exchange of Thailand. The study employs descriptive statistics and trend analysis of working capital management policies and short-term financing policies to examine changes in policy practices over time. The results reveal that after the spread of the COVID-19 virus, more than 70 percent of both large-sized and small-sized hospitals, located in the Bangkok Metropolitan area as well as in other provinces, adopted a restricted policy for managing working capital, even though there was no significant change in the overall level or policy framework of working capital management. In addition, these hospitals applied a conservative policy in their short-term financing after the spread of the COVID-19 virus. Furthermore, the analysis of working capital management strategies indicates that small-sized hospitals located in provincial areas primarily focused on the management of receivables and payables, rather than placing emphasis on the management of inventories and medical supplies.