IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i17p3130-d903573.html
   My bibliography  Save this article

COVID-19 Pandemic and Its Impact on Challenges in the Construction Sector: A Case Study of Slovak Enterprises

Author

Listed:
  • Dominika Gajdosikova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Katarina Valaskova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Tomas Kliestik

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia
    The Institute of Technology and Business in Ceske Budejovice, School of Expertness and Valuation, Okruzni 517/10, 3701 Ceske Budejovice, Czech Republic)

  • Veronika Machova

    (The Institute of Technology and Business in Ceske Budejovice, School of Expertness and Valuation, Okruzni 517/10, 3701 Ceske Budejovice, Czech Republic)

Abstract

The corona crisis has affected not only the economic sphere, but also the sphere of health, health care, employment, safety, and health protection in the workplace, shopping habits, and future expectations, to which people adapt their decisions in various areas of daily life. The COVID-19 pandemic, called a global health crisis, was an unpredictable risk of global proportions that paralyzed the entire world. The main aim of this paper is to quantify the impacts of the COVID-19 pandemic on the construction sector, which is considered a crucial sector of the Slovak economy, to evaluate changes in the development of key indicators using adequate quantitative methods. First, a sample of 2000 businesses were analyzed using the 12 financial indicators that were chosen. Second, using the non-parametric Friedman test, a more thorough study was carried out with a focus on analyzing the existence of statistically significant variations in the values of computed indicators as a result of changes in the development of key financial ratios. The Bonferroni adjustments were employed to pinpoint the areas of stochastic dominance at the conclusion of the study. A detailed analysis of the calculated financial indicators showed that the arrival of the pandemic had a negative impact on many aspects of business in the construction sector and affected the financial and economic situation of companies in the construction sector of the Slovak Republic. However, due to the fact that this sector is characterized by slower reactions to changes in the economy, the most significant impacts will be even more noticeable in the future.

Suggested Citation

  • Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Veronika Machova, 2022. "COVID-19 Pandemic and Its Impact on Challenges in the Construction Sector: A Case Study of Slovak Enterprises," Mathematics, MDPI, vol. 10(17), pages 1-20, September.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:17:p:3130-:d:903573
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/17/3130/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/10/17/3130/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scott Régifère MOUANDAT, 2022. "Is Foreign Debt Management in Gabon Efficient?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 10(1), pages 82-94, March.
    2. Alexis Dinno, 2015. "Nonparametric pairwise multiple comparisons in independent groups using Dunn's test," Stata Journal, StataCorp LP, vol. 15(1), pages 292-300, March.
    3. Thiemo Fetzer & Lukas Hensel & Johannes Hermle & Christopher Roth, 2021. "Coronavirus Perceptions and Economic Anxiety," The Review of Economics and Statistics, MIT Press, vol. 103(5), pages 968–978-9, December.
    4. Jun Cai & David Landriault & Tianxiang Shi & Wei Wei, 2017. "Joint Insolvency Analysis of a Shared MAP Risk Process: A Capital Allocation Application," North American Actuarial Journal, Taylor & Francis Journals, vol. 21(2), pages 178-192, April.
    5. Francesco Gangi & Lucia Michela Daniele & Nicola Varrone, 2020. "How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1975-1991, July.
    6. Xin Mai & Roger C. K. Chan & Chaoqun Zhan, 2019. "Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    7. Silvia Jencova & Igor Petruska & Marta Lukacova, 2021. "Relationship Between ROA and Total Indebtedness by Threshold Regression Model," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 17(2), pages 37-46.
    8. Bolton, Patrick & Kacperczyk, Marcin, 2021. "Do investors care about carbon risk?," Journal of Financial Economics, Elsevier, vol. 142(2), pages 517-549.
    9. Lucia Svabova & Katarina Kramarova & Barbora Gabrikova, 2022. "Counterfactual Assessment of the Allowance for School-leaver Practice Performance as a Measure of Active Labour Market Policy in Slovakia," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(2), pages 99-123, February.
    10. Ramy Khalef & Gasser G. Ali & Islam H. El-adaway & Ghada M. Gad, 2022. "Managing construction projects impacted by the COVID-19 pandemic: a contractual perspective," Construction Management and Economics, Taylor & Francis Journals, vol. 40(4), pages 313-330, April.
    11. Sanda Rasic Jelavic & Iva Brkic & Antonija Kozul, 2016. "Financial Indicators Of The Cement Industry In Croatia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 25(2), pages 565-586, december.
    12. Pavol Durana & Lucia Michalkova & Andrej Privara & Josef Marousek & Milos Tumpach, 2021. "Does the life cycle affect earnings management and bankruptcy?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 425-461, June.
    13. Eva NAHALKOVA TESAROVA & Anna KRIZANOVA, 2022. "The Impact of COVID-19 on Sustainability and Changing Consumer Behavior in the Textile Industry. Is it Significant?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 10(2), pages 95-105, June.
    14. 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.
    15. Ahmed Rakha & Hansi Hettiarachchi & Dina Rady & Mohamed Medhat Gaber & Emad Rakha & Mohammed M. Abdelsamea, 2021. "Predicting the Economic Impact of the COVID-19 Pandemic in the United Kingdom Using Time-Series Mining," Economies, MDPI, vol. 9(4), pages 1-19, September.
    16. Sumathi Kumaraswamy, 2020. "Goods and services tax shock on small and medium enterprises working capital in India," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 3464-3476, June.
    17. Pavol Durana & Katarina Valaskova & Roman Blazek & Jozef Palo, 2022. "Metamorphoses of Earnings in the Transport Sector of the V4 Region," Mathematics, MDPI, vol. 10(8), pages 1-14, April.
    18. Ajit Jha, 2021. "Vulnerability of Construction Workers During COVID-19: Tracking Welfare Responses and Challenges," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1043-1067, December.
    19. Katarina Valaskova & Dominika Gajdosikova & Tomislava Pavic Kramaric, 2022. "How Important Is the Business Environment for The Performance of Enterprises? Case Study of Selected European Countries," Central European Business Review, Prague University of Economics and Business, vol. 2022(4), pages 85-110.
    20. Lee, Wei-Ming, 2020. "The determinants and effects of board committees," Journal of Corporate Finance, Elsevier, vol. 65(C).
    21. Kumar, Sonal & Zbib, Leila, 2022. "Firm performance during the Covid-19 crisis: Does managerial ability matter?," Finance Research Letters, Elsevier, vol. 47(PB).
    22. Grzegorz Zimon & Hossein Tarighi, 2021. "Effects of the COVID-19 Global Crisis on the Working Capital Management Policy: Evidence from Poland," JRFM, MDPI, vol. 14(4), pages 1-17, April.
    23. Lucia Svabova & Eva Nahalkova Tesarova & Marek Durica & Lenka Strakova, 2021. "Evaluation of the impacts of the COVID-19 pandemic on the development of the unemployment rate in Slovakia: counterfactual before-after comparison," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(2), pages 261-284, June.
    24. Xiaodong Wang & Liang Han & Xing Huang & Biao Mi, 2021. "The financial and operational impacts of European SMEs’ use of trade credit as a substitute for bank credit," The European Journal of Finance, Taylor & Francis Journals, vol. 27(8), pages 796-825, May.
    25. Kristina Kocisova & Martina Pastyriková, 2020. "Determinants of non-performing loans in European Union countries," Proceedings of Economics and Finance Conferences 10913085, International Institute of Social and Economic Sciences.
    26. Chandan Mahato & Gour Chandra Mahata, 2022. "Decaying items inventory models with partial linked-to-order upstream trade credit and downstream full trade credit," Journal of Management Analytics, Taylor & Francis Journals, vol. 9(1), pages 137-168, January.
    27. Rafal Balina, 2018. "Forecasting Bankruptcy Risk in The contexts of Credit Risk Management - A Case Study on Wholesale Food Industry in Poland," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 7(1), pages 1-15, May.
    28. Boisjoly, Russell P. & Conine, Thomas E. & McDonald, Michael B., 2020. "Working capital management: Financial and valuation impacts," Journal of Business Research, Elsevier, vol. 108(C), pages 1-8.
    29. Vandana & S. R. Singh & Dharmendra Yadav & Biswajit Sarkar & Mitali Sarkar, 2021. "Impact of Energy and Carbon Emission of a Supply Chain Management with Two-Level Trade-Credit Policy," Energies, MDPI, vol. 14(6), pages 1-19, March.
    30. Hussam Musa & Zdenka Musova & Viacheslav Natorin & George Lazaroiu & Martin Boda, 2021. "Comparison of factors influencing liquidity of European Islamic and conventional banks," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 375-398, June.
    31. C. Vladimir Rodríguez-Caballero & J. Eduardo Vera-Valdés, 2020. "Long-Lasting Economic Effects of Pandemics:Evidence on Growth and Unemployment," Econometrics, MDPI, vol. 8(3), pages 1-16, September.
    32. Zbigniew Korzeb & Pawel Niedziolka, 2020. "Resistance of commercial banks to the crisis caused by the COVID-19 pandemic: the case of Poland," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 15(2), pages 205-234, June.
    33. Larissa Batrancea, 2021. "The Influence of Liquidity and Solvency on Performance within the Healthcare Industry: Evidence from Publicly Listed Companies," Mathematics, MDPI, vol. 9(18), pages 1-15, September.
    34. Sadok El Ghoul & Omrane Guedhami & Yongtae Kim, 2017. "Country-level institutions, firm value, and the role of corporate social responsibility initiatives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 360-385, April.
    35. Goolsbee, Austan & Syverson, Chad, 2021. "Fear, lockdown, and diversion: Comparing drivers of pandemic economic decline 2020," Journal of Public Economics, Elsevier, vol. 193(C).
    36. Simon Rafaqat & Sahil Rafaqat, 2020. "The Impact of Merger and Acquisition on the Financial Performance of the Nasdaq Listed Small Size Technology Companies," The Economics and Finance Letters, Conscientia Beam, vol. 7(2), pages 200-217.
    37. Biswajit Bera & Sumana Bhattacharjee & Pravat Kumar Shit & Nairita Sengupta & Soumik Saha, 2021. "Significant impacts of COVID-19 lockdown on urban air pollution in Kolkata (India) and amelioration of environmental health," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6913-6940, May.
    38. Katarina Valaskova & Pavol Durana & Peter Adamko, 2021. "Changes in Consumers’ Purchase Patterns as a Consequence of the COVID-19 Pandemic," Mathematics, MDPI, vol. 9(15), pages 1-17, July.
    39. Jozef Čentéš & Michal Krajčovič & Michal Krajčovič, 2019. "Consideration of the effectiveness of flat-rate compensation for damage in insolvency proceedings," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1435-1449, December.
    40. Narayanamurthy, Gopalakrishnan & Tortorella, Guilherme, 2021. "Impact of COVID-19 outbreak on employee performance – Moderating role of industry 4.0 base technologies," International Journal of Production Economics, Elsevier, vol. 234(C).
    41. Bonam, Dennis & Smădu, Andra, 2021. "The long-run effects of pandemics on inflation: Will this time be different?," Economics Letters, Elsevier, vol. 208(C).
    42. Róbert Štefko & Petra Vašaničová & Sylvia Jenčová & Aneta Pachura, 2021. "Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity," Energies, MDPI, vol. 14(2), pages 1-15, January.
    43. Adriana AnaMaria Davidescu & Simona-Andreea Apostu & Liviu Adrian Stoica, 2021. "Socioeconomic Effects of COVID-19 Pandemic: Exploring Uncertainty in the Forecast of the Romanian Unemployment Rate for the Period 2020–2023," Sustainability, MDPI, vol. 13(13), pages 1-22, June.
    44. Omo Aregbeyen, 2013. "The effects of working capital management on the profitability of Nigerian manufacturing firms," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(3), pages 520-534, June.
    45. Simon Rafaqat & Sahil Rafaqat, 2020. "The Impact of Merger and Acquisition on the Financial Performance of the Nasdaq Listed Small Size Technology Companies," The Economics and Finance Letters, Conscientia Beam, vol. 7(2), pages 200-217.
    46. Derek Eldridge & Tahir M. Nisar & Mariateresa Torchia, 2021. "What impact does equity crowdfunding have on SME innovation and growth? An empirical study," Small Business Economics, Springer, vol. 56(1), pages 105-120, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nagy Marek & Valaskova Katarina, 2023. "An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 170-193, June.
    2. Tomas Kliestik & Marek Nagy & Katarina Valaskova, 2023. "Global Value Chains and Industry 4.0 in the Context of Lean Workplaces for Enhancing Company Performance and Its Comprehension via the Digital Readiness and Expertise of Workforce in the V4 Nations," Mathematics, MDPI, vol. 11(3), pages 1-21, January.
    3. Roman Blazek & Pavol Durana & Jakub Michulek, 2023. "Renaissance of Creative Accounting Due to the Pandemic: New Patterns Explored by Correspondence Analysis," Stats, MDPI, vol. 6(1), pages 1-20, March.
    4. Marek Nagy & George Lăzăroiu, 2022. "Computer Vision Algorithms, Remote Sensing Data Fusion Techniques, and Mapping and Navigation Tools in the Industry 4.0-Based Slovak Automotive Sector," Mathematics, MDPI, vol. 10(19), pages 1-22, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Maria Kovacova, 2023. "Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries," Mathematics, MDPI, vol. 11(2), pages 1-30, January.
    2. Francesco Gangi & Eugenio D'Angelo & Lucia Michela Daniele & Nicola Varrone, 2021. "Assessing the impact of socially responsible human resources management on company environmental performance and cost of debt," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1511-1527, September.
    3. Beata Bieszk-Stolorz & Iwona Markowicz, 2022. "The Impact of the COVID-19 Pandemic on the Situation of the Unemployed in Poland. A Study Using Survival Analysis Methods," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    4. Ahmed Mohamed Habib & Nahia Mourad, 2022. "Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA-Malmquist Technology," SN Operations Research Forum, Springer, vol. 3(3), pages 1-20, September.
    5. Sumedha Gupta & Kosali I. Simon & Coady Wing, 2020. "Mandated and Voluntary Social Distancing During The COVID-19 Epidemic: A Review," NBER Working Papers 28139, National Bureau of Economic Research, Inc.
    6. Fasano, Francesco & Javier Sánchez-Vidal, F. & La Rocca, Maurizio, 2022. "The role of government policies for Italian firms during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 50(C).
    7. Afrifa, Godfred Adjapong & Tingbani, Ishmael & Adesina, Oluseyi Oluseun, 2022. "Stochastic frontier modelling of working capital efficiency across Europe," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    8. Simon Döring & Wolfgang Drobetz & Sadok El Ghoul & Omrane Guedhami & Henning Schröder, 2023. "Foreign Institutional Investors, Legal Origin, and Corporate Greenhouse Gas Emissions Disclosure," Journal of Business Ethics, Springer, vol. 182(4), pages 903-932, February.
    9. Andrej Privara, 2022. "Economic growth and labour market in the European Union: lessons from COVID-19," Oeconomia Copernicana, Institute of Economic Research, vol. 13(2), pages 355-377, June.
    10. Mrudul Y. Jani & Heta A. Patel & Amrita Bhadoriya & Urmila Chaudhari & Mohamed Abbas & Malak S. Alqahtani, 2023. "Deterioration Control Decision Support System for the Retailer during Availability of Trade Credit and Shortages," Mathematics, MDPI, vol. 11(3), pages 1-27, January.
    11. Ehsan Poursoleyman & Gholamreza Mansourfar & Mohammad Kabir Hassan & Saeid Homayoun, 2024. "Did Corporate Social Responsibility Vaccinate Corporations Against COVID-19?," Journal of Business Ethics, Springer, vol. 189(3), pages 525-551, January.
    12. Gajdosikova Dominika & Valaskova Katarina, 2022. "The Impact of Firm Size on Corporate Indebtedness: A Case Study of Slovak Enterprises," Folia Oeconomica Stetinensia, Sciendo, vol. 22(1), pages 63-84, June.
    13. Larissa M. Batrancea & Mehmet Ali Balcı & Leontina Chermezan & Ömer Akgüller & Ema Speranta Masca & Lucian Gaban, 2022. "Sources of SMEs Financing and Their Impact on Economic Growth across the European Union: Insights from a Panel Data Study Spanning Sixteen Years," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    14. Giménez, Víctor & Prior, Diego & Thieme, Claudio & Tortosa-Ausina, Emili, 2024. "International comparisons of COVID-19 pandemic management: What can be learned from activity analysis techniques?," Omega, Elsevier, vol. 122(C).
    15. Boto-García, David, 2023. "Investigating the two-way relationship between mobility flows and COVID-19 cases," Economic Modelling, Elsevier, vol. 118(C).
    16. George Kapetanios & Nora Neuteboom & Feiko Ritsema & Alexia Ventouri, 2022. "How did consumers react to the COVID‐19 pandemic over time?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 961-993, October.
    17. Asli Demirgüç-Kunt & Michael Lokshin & Iván Torre, 2021. "Opening-Up Trajectories and Economic Recovery: Lessons after the First Wave of the COVID-19 Pandemic," CESifo Economic Studies, CESifo Group, vol. 67(3), pages 332-369.
    18. Katarina Valaskova & Dominika Gajdosikova & Jaroslav Belas, 2023. "Bankruptcy prediction in the post-pandemic period: A case study of Visegrad Group countries," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 253-293, March.
    19. Martin Bugaj & Pavol Durana & Roman Blazek & Jakub Horak, 2023. "Industry 4.0: Marvels in Profitability in the Transport Sector," Mathematics, MDPI, vol. 11(17), pages 1-23, August.
    20. Joanna Landmesser, 2021. "The use of the dynamic time warping (DTW) method to describe the COVID-19 dynamics in Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 12(3), pages 539-556, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:17:p:3130-:d:903573. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.