Abstract
PurposeThe purpose of this paper is to explore the impact of firm-, finance- and country-specific indicators to the performance of companies under the COVID-19 outbreak.Design/methodology/approachThe study uses a regression performance model for enterprises during the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countries collected by the World Bank through enterprise surveys. The author combined the analysis of traditional performance measurements with the testing of relatively novel variables.FindingsThis study confirms the significance of multiple factors for company performance: sector, size, participation in exports and market demand for firms’ products. Robust financing solutions during the coronavirus pandemic period include equity contributions, followed by firms’ cash balances and debt. Support by a government, however, has not yet been confirmed as a significant source of finance. This paper also suggests the importance of country-specific factors for the performance of enterprises, including the level of economic development and the corporate governance infrastructure.Practical implicationsThe research outcomes might assist regulatory bodies, policymakers and companies in their formulation of public and corporate governance strategies concerning future emergency preparedness and responses.Originality/valueThis paper is among the first empirical studies in the management realm that addresses the impact of COVID-19 on company performance, with cross-national empirical data.
Highlights
In March 2020, the World Health Organisation (WHO) declared that a coronavirus outbreak (COVID-19) was a pandemic
This paper examines the recent scant academic research regarding the impact of coronavirus pandemics alongside literature on past events that, in some ways, are approximately comparable with COVID-19
We combine investigation of traditional performance measurements with the testing of relatively novel variables
Summary
In March 2020, the World Health Organisation (WHO) declared that a coronavirus outbreak (COVID-19) was a pandemic. The 21st century has seen four further pandemic outbreaks: SARS in 2002; “bird flu” in 2009; MERS in 2012; and Ebola which peaked in 2013–2014 (Baldwin and Weder di Mauro, 2020). Considering such a repetitive pattern of pandemics, one might wonder why an explosion of COVID-19 is a distinctive and notable phenomenon. Does this coronavirus outbreak differ sufficiently enough from other pandemics and natural disasters as to constitute a special case for academic research? Does this coronavirus outbreak differ sufficiently enough from other pandemics and natural disasters as to constitute a special case for academic research? In addition, exactly how are private firms navigating the economic disruptions resulting from the spread of COVID-19 and worldwide lockdowns?
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