Author(s): Mohammad Ahmad Alqam, Yaser Mohd Hamshari, Haitham Yousef Ali, Amer AlSakarneh
The aim of this study is to determine the impact of COVID-19 on long term solvency of firms operating in the Middle Eastern countries. This study is quantitative in nature in which the data has been gathered from Thomson Reuters with respect to 31 countries in Middle East. The variables considered in this study include equity ratio, times interest earned, current ratio and quick ratio and data was gathered for these companies from the year 2013 to 2020. Moreover, the data has been analyzed using the GLS method. The study found that there is significant effect of COVID-19 on both the times interest earned and debt to equity ratio. On the other hand, the effect of quick ratio was significant on times interest earned while it was insignificant with respect to debt to equity ratio. Moreover, the effect of current ratio was insignificant on times interest earned and it was significant on debt to equity ratio. This study is restricted to the companies operating in the Middle East region.