IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v18y2025i3p135-d1604979.html
   My bibliography  Save this article

Determinants of Financial Risks Pre- and Post-COVID-19 in Companies Listed on Euronext Lisbon

Author

Listed:
  • Graça Azevedo

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal
    Research Centre on Accounting and Taxation—CICF, 4750-821 Barcelos, Portugal)

  • Jonas Oliveira

    (BRU-Iscte—Business Research Unit (IBS), ISCTE—Instituto Universitário de Lisboa, 1649-026 Lisboa, Portugal)

  • Tatiana Almeida

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal)

  • Maria Fátima Ribeiro Borges

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal)

  • Maria C Tavares

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal
    Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), 3810-193 Aveiro, Portugal)

  • José Vale

    (CEOS.PP—Centre for Organisational and Social Studies of Polytechnic of Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal)

Abstract

The COVID-19 pandemic had a significant impact on the economy and the stability of financial markets, creating challenges and financial risks for companies. This study analyzes the financial reports of companies listed on Euronext Lisbon with the aim of examining financial risk disclosures and calculating their determinants. For this purpose, data was collected from the Euronext Lisbon website as well as the companies’ own websites. Once the data were gathered, 16 companies were analyzed over a five-year period, from 2018 to 2022. Using panel data regression techniques (e.g., fixed effects regression models), it was observed that profitability, capital structure, and size have a positive but not statistically significant relationship with interest risk. Conversely, size and capital structure they have a positive and significant relationship with liquidity risk. Profitability has a positive and significant relationship with insolvency risk. Macroeconomic variables do not exhibit consistent signs across all models. This research provides insights into how the determinants of financial risks influence risks during a pandemic period.

Suggested Citation

  • Graça Azevedo & Jonas Oliveira & Tatiana Almeida & Maria Fátima Ribeiro Borges & Maria C Tavares & José Vale, 2025. "Determinants of Financial Risks Pre- and Post-COVID-19 in Companies Listed on Euronext Lisbon," JRFM, MDPI, vol. 18(3), pages 1-20, March.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:3:p:135-:d:1604979
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/18/3/135/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/18/3/135/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Azlan Amran, 2009. "Risk reporting," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(1), pages 39-57, January.
    2. Giovanni Cardillo & Helen Chiappini, 2022. "The Credit Risk of Sustainable Firms during the Pandemic," Global Business Review, International Management Institute, vol. 23(6), pages 1462-1480, December.
    3. Archanskaia, Elizaveta & Canton, Erik & Hobza, Alexandr & Nikolov, Plamen & Simons, Wouter, 2023. "The asymmetric impact of COVID-19: A novel approach to quantifying financial distress across industries," European Economic Review, Elsevier, vol. 158(C).
    4. Baris Kocaarslan & Ugur Soytas, 2021. "The Asymmetric Impact of Funding Liquidity Risk on the Volatility of Stock Portfolios during the COVID-19 Crisis," Sustainability, MDPI, vol. 13(4), pages 1-12, February.
    5. Zélia Serrasqueiro & Ana Caetano, 2015. "Trade-Off Theory versus Pecking Order Theory: capital structure decisions in a peripheral region of Portugal," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(2), pages 445-466, April.
    Full references (including those not matched with items on IDEAS)

    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. Enrico Santarelli & Hien Thu Tran, 2018. "The interaction of institutional quality and human capital in shaping the dynamics of capital structure in Vietnam," WIDER Working Paper Series wp-2018-66, World Institute for Development Economic Research (UNU-WIDER).
    2. Herenia Gutiérrez‐Ponce, 2024. "Determinants of corporate leverage and sustainability of small and medium‐sized enterprises: The case of commercial companies in Ecuador," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8319-8331, December.
    3. Deshani C. Hettiarachchi, 2023. "Effects of Non-Financial Performance Management and Risk Disclosures on Not-For-Profit Financial Vulnerability: Evidence from The Australian Aged Care Not-For-Profit Sector," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 22(4), pages 723-745, December.
    4. Sohail AMJED* & S.M. Amir SHAH**, 2017. "The Impact of Leverage Variances on Growth: A Longitudinal Study of Pakistan’s Corporate Sector," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 249-266.
    5. Elif Acar & Gamze Vural & Emin Hüseyin Çetenak, 2020. "Evidence for Financial Hierarchy Theory in Capital Structure Decisions: Data from BIST Companies," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(1), pages 29-50.
    6. Rodríguez Domínguez, Luis & Noguera Gámez, Ligia Carolina, 2014. "Corporate reporting on risks: Evidence from Spanish companies," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(2), pages 116-129.
    7. Óscar Carvallo Valencia & Jonathan Barboza Pineda & Ignacio Garrón Vedia, 2018. "Corporate Firms’ Financial Conditions and Investment in Latin America: Determinants and Measurement," Monetaria, Centro de Estudios Monetarios Latinoamericanos, CEMLA, vol. 0(1), pages 39-105, january-j.
    8. Zam Zuriyati Mohamad & Hatijah Mohamed Salleh & Nur Diyana Ismail & Ibrahim Tamby Chek, 2014. "Does Quality of Non-Financial Information Disclosure Influence Firms’ Profitability in Malaysia?," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(4), pages 297-306, October.
    9. Ntim, Collins G. & Lindop, Sarah & Thomas, Dennis A., 2013. "Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre- and post-2007/2008 global financial crisis periods," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 363-383.
    10. Ibrahim, Awad Elsayed Awad & Hussainey, Khaled & Nawaz, Tasawar & Ntim, Collins & Elamer, Ahmed, 2022. "A systematic literature review on risk disclosure research: State-of-the-art and future research agenda," International Review of Financial Analysis, Elsevier, vol. 82(C).
    11. Martinez Cillero, Maria & Lawless, Martina & O'Toole, Conor, 2019. "The determinants of SME capital structure across the lifecycle," Papers WP614, Economic and Social Research Institute (ESRI).
    12. Evana, Einde & Widiyanti, Ade & Fuadi, Raida & Mirfazli, Edwin & San-José, Leire, 2023. "The influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure [La influencia de las características corporativas y el buen gobierno corporativo haci," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 404-417, June.
    13. Jaroslav Mazanec, 2023. "Capital Structure Theory in the Transport Sector: Evidence from Visegrad Group," Mathematics, MDPI, vol. 11(6), pages 1-17, March.
    14. Salem Boumediene & Fatma Ezzahra Abdallah & Salma Ben Moussa & Emna Boumediene, 2022. "Internal Corporate Governance Mechanisms And Risk Disclosure: Evidence From Tunisia," Accounting & Taxation, The Institute for Business and Finance Research, vol. 14(1), pages 15-30.
    15. Moumen, Néjia & Ben Othman, Hakim & Hussainey, Khaled, 2015. "The value relevance of risk disclosure in annual reports: Evidence from MENA emerging markets," Research in International Business and Finance, Elsevier, vol. 34(C), pages 177-204.
    16. Salvi, Antonio & Vitolla, Filippo & Giakoumelou, Anastasia & Raimo, Nicola & Rubino, Michele, 2020. "Intellectual capital disclosure in integrated reports: The effect on firm value," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    17. Jonas Oliveira & Lúcia Lima Rodrigues & Russell Craig, 2011. "Risk-related disclosures by non-finance companies: Portuguese practices and disclosure characteristics," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(9), pages 817-839, October.
    18. Oscar Briones & Melisa Chang, 2017. "Capital Structure Determinants Influence: A Comparative Study," Proceedings of International Academic Conferences 5007097, International Institute of Social and Economic Sciences.
    19. Kijkasiwat, Ploypailin, 2021. "The influence of behavioral factors on SMES’ owners intention to adopt private finance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    20. David Haritone Shikumo & Oluoch Oluoch & Joshua Matanda Wepukhulu, 2023. "Financial Structure, Firm Size and Financial Growth of Non-Financial Firms Listed at the Nairobi Securities Exchange," Papers 2303.10910, arXiv.org.

    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:jjrfmx:v:18:y:2025:i:3:p:135-:d:1604979. 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.