By: The Economist
April 16, 2020
Over the next month the toll that lockdowns are inflicting on businesses will become more visible as big Western companies report their first-quarter results and start to give investors a steer on what to expect for the rest of 2020. For some, bankruptcy beckons—this week America’s banks warned of a surge in bad debts as households and firms go bust (see article). Most companies will remain going concerns, but face a collapse in profits. As a result a fraught debate is taking place in boardrooms all over the world about whether firms should cut their dividends, the recurring payments they make to their owners.