Abstract
All industries around the world have been greatly impacted by the 2019 COVID-19 outbreak. China’s tourism market was almost suspended. Tourism enterprises generally face difficulties in the form of low capital turnover and increased operating pressure, and the overall tourism industry is showing a downturn in its development. In this study, we construct a quasi-natural experiment with the COVID-19 pandemic in public health emergencies using a propensity score matching difference in differences model (PSM-DID) to match the treatment group of tourism enterprises and the control group of non-tourism enterprises. We empirically test that the COVID-19 pandemic has produced a more severe impact on the performance of tourism enterprises than other industries. Further analysis shows that given different enterprise equity natures, the characteristics of the board, supervision, and executive salary incentive levels, the COVID-19 pandemic has a heterogeneous impact on the operating performance of tourism enterprises.
Highlights
In late 2019, the occurrence of a major public health emergency, COVID-19, had a huge impact on social and economic life worldwide
There is no impact of the size of the board of supervisors of tourism enterprises on corporate performance given the impact of COVID-19
Through the table data results, the correlation coefficient between the independent variable COVID-19 pandemic and dependent variables return on total assets (ROA) and total enterprise operating revenue growth rate (Salesgro) are negative and passed the significance test, which can initially verify the correctness of the hypothesis proposed in the theoretical context
Summary
In late 2019, the occurrence of a major public health emergency, COVID-19, had a huge impact on social and economic life worldwide. Given the impact of the sudden COVID-19 pandemic, it is important to explore the development path for tourism enterprises to improve governance efficiency, maintain sustainable operation development, and enhance operational performance. This study empirically examines the impact of the COVID-19 pandemic on the operation performance of tourism enterprises more thoroughly than other industries at the micro-firm level by using a PSM-DID model. This study further explores the moderating effects of the above differential corporate governance factors on the business performance of tourism enterprises impacted by COVID-19, from four perspectives: enterprise equity characteristics, board structure, supervision, and executive salary incentives, proving that a well-developed corporate governance structure can mitigate the impact of the pandemic on the economy during public health emergencies and provide a theoretical basis for research in related fields
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