Firms' performance during the COVID-19 outbreak : international evidence from 13 countries

Abstract

Purpose – The purpose of this paper is to explore the impact of firm-, finance- and country-specificindicators to the performance of companies under the COVID-19 outbreak. Design/methodology/approach – The study uses a regression performance model for enterprisesduring the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countriescollected by the World Bank through enterprise surveys. The author combined the analysis of traditionalperformance measurements with the testing of relatively novel variables. Findings – This study confirms the significance of multiple factors for company performance: sector,size, participation in exports and market demand for firms' products. Robust financing solutions duringthe coronavirus pandemic period include equity contributions, followed by firms' cash balances anddebt. 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 implications – The research outcomes might assist regulatory bodies, policymakers andcompanies in their formulation of public and corporate governance strategies concerning futureemergency preparedness and responses. Originality/value – This paper is among the first empirical studies in the management realm thataddresses the impact of COVID-19 on company performance, with cross-national empirical data.Keywords Company performance, Financial sources, COVID-19, Country-specific factors,Firm-specific indicators