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COVID-19 pandemic and firm performance: Cross-country evidence

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  • Hu, Shiwei
  • Zhang, Yuyao

Abstract

Using financial data on firms worldwide, we assess the impact of COVID-19 on corporate performance. We show that firm performance deteriorates during the COVID-19 pandemic. The adverse effects of COVID-19 on firm performance are less pronounced in countries with better healthcare systems, more advanced financial systems, and better institutions. Finally, uncertainty avoidance strengthens the adverse effect of the COVID-19 pandemic.

Suggested Citation

  • Hu, Shiwei & Zhang, Yuyao, 2021. "COVID-19 pandemic and firm performance: Cross-country evidence," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 365-372.
    • Handle: RePEc:eee:reveco:v:74:y:2021:i:c:p:365-372
    DOI: 10.1016/j.iref.2021.03.016
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    More about this item

    Keywords

    Pandemic; Firm performance; Governance; Uncertainty avoidance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • I10 - Health, Education, and Welfare - - Health - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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