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The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business

Author

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  • Anna Doś

    (Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Monika Wieczorek-Kosmala

    (Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Joanna Błach

    (Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland)

Abstract

Recent studies uncover the lack of symmetry in COVID-19-related economic shock distributions among households. Thus, questions arise about the appropriateness of diverse risk-coping mechanisms by households. We add to this strand of research by focusing on households running a business. In particular, we analyze the role of basic legal aspects of running a business by individuals, specifically a legal form of business activity in shaping COVID-19-related business risk perception. We posit that the different legal forms allow for different risk-coping mechanisms. We incorporate analysis of variance (ANOVA) on data obtained via a survey distributed among households running a business in Poland, a country where the pandemic threatens poverty-reducing growth. We confirm that between the groups of households running a business in various legal forms, there are statistically significant differences regarding the impact of COVID-19. Thus, we conclude that the choice of business legal form affects vulnerability to COVID-19-related interruptions among households running a business.

Suggested Citation

  • Anna Doś & Monika Wieczorek-Kosmala & Joanna Błach, 2022. "The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business," Risks, MDPI, vol. 10(4), pages 1-17, April.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:4:p:82-:d:790917
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