The Impact of the COVID-19 Pandemic on Firm Performance

Using the financial data of listed Chinese companies, we study the impact of COVID-19 on corporate performance. We show that COVID-19 has a negative impact on firm performance. The negative impact of COVID-19 on firm performance is more pronounced when a firm’s investment scale or sales revenue is s...

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Bibliographic Details
Published in:Emerging Markets Finance and Trade 2020, Vol.56 (10), p.2213
Main Authors: Shen, Huayu, Fu, Mengyao, Pan, Hongyu, Yu, Zhongfu, Chen, Yongquan
Format: Web Resource
Language:English
Online Access:Request full text
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Summary:Using the financial data of listed Chinese companies, we study the impact of COVID-19 on corporate performance. We show that COVID-19 has a negative impact on firm performance. The negative impact of COVID-19 on firm performance is more pronounced when a firm’s investment scale or sales revenue is smaller. We show, in an additional analysis, that the negative impact of COVID-19 on firm performance is more pronounced in serious-impact areas and industries. These findings are among the first empirical evidence of the association between pandemic and firm performance.