COVID-19 pandemic and firm performance in leisure, arts, and hospitality industries: international evidence
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Author(s)Felisitas DefungLink to ORCID Index: https://orcid.org/0000-0003-2654-4690
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Michael HadjaatLink to ORCID Index: https://orcid.org/0000-0002-7746-9662
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Rizky YudaruddinLink to ORCID Index: https://orcid.org/0000-0002-0850-9747
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DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.10
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Article InfoVolume 20 2023, Issue #4, pp. 112-126
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Creative Commons Attribution 4.0 International License
This study analyzes the impact of the COVID-19 pandemic on the performance of 944 Leisure, Arts, and Hospitality companies from 59 countries listed on global stock exchanges between 2018 and 2022. Using Ordinary Least Squares with robust standard errors, the study reveals a consistent and statistically significant negative impact of COVID-19 on the performance of firms. The results highlight the difficulties faced by companies in this industry during the pandemic. In addition, the study investigates the relationship between firm characteristics and company performance during the COVID-19 pandemic, revealing that company size, liquidity, and leverage play crucial roles in influencing firm performance across industries. Larger corporations exhibit greater resiliency, while greater liquidity facilitates better navigation of pandemic-induced obstacles. In contrast, companies with greater leverage experience more pronounced negative effects on their performance, highlighting the significance of debt management during a crisis. Based on these findings, policymakers are strongly urged to provide targeted assistance to Leisure, Arts, and Hospitality industries to address the challenges the pandemic poses effectively. Regulators should encourage the resiliency of larger firms and stress the importance of maintaining higher liquidity levels for financial stability. It is recommended that managers should prudently manage debt to limit pandemic repercussions and boost performance in the face of extraordinary challenges.
- Keywords
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JEL Classification (Paper profile tab)E51, L25, G11, G15
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References60
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Tables8
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Figures0
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- Table 1. Distribution of the sample firms by country
- Table 2. Dependent and independent variables
- Table 3. Descriptive statistics for all variables
- Table 4. Correlation matrix (n = 4285)
- Table 5. COVID-19 and firm performance (All Sectors)
- Table 6. COVID-19 and firm performance (Hotels & Restaurants)
- Table 7. COVID-19 and firm performance (Recreational Services)
- Table 8. COVID-19 and firm performance (Tourism)
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The impact of COVID-19 pandemic on performance of small enterprises that are e-commerce adopters and non-adopters
Dirga Lestari , Saida Zainurossalamia ZA ,
Siti Maria ,
Wirasmi Wardhani ,
Rizky Yudaruddin
doi: http://dx.doi.org/10.21511/ppm.19(3).2021.38
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Acknowledgment
We are grateful to Mulawarman University for providing us with the funding necessary to gather the necessary data for the study and complete this empirical investigation. We also would like to thank two anonymous reviewers and seminar participants at Mulawarman University for their helpful feedback. -
Multi-agent modeling and simulation of a stock market
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Rachid Ellaia
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.10
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doi: http://dx.doi.org/10.21511/ee.08(1).2017.01
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