How an Unforeseen Economic Crisis from the Coronavirus Affects Financial Strategy and Decision-making in Capital Structures

The basis of this study looked into the unforeseen impacts of the coronavirus in the business world. Looking into specifics, a survey was conducted to gain insight into the minds of financial professionals and their strategic shifts in priorities. A look into the relevance of traditional theories like trade off, pecking order, and agency costs were examined. Also, a critical look into the cognitive biases that are at play during an economic shock. Psychological principles like overconfidence and optimism, anchoring, and threat response are measured. This study is a piloted preliminary study into the impact of the coronavirus as the event is taking place. Therefore, it is merely suggestive towards how future research could be conducted.