Did public firms manage the COVID-19 better? A quasi-experimental design for non-financial firms in Türkiye

The impact of public status on the performance of non-financial Turkish firms during the COVID-19 pandemic is analyzed using a quasi-experimental design that combines propensity score matching (PSM) with difference-in-differences (DiD). Firm performance is evaluated across four dimensions: liquidity, profitability, leverage, and efficiency. The results indicate that public firms outperformed their matched private counterparts during the pandemic. When examined by firm size, public SMEs are observed to have performed significantly better than private SMEs, whereas no statistically significant differences are found between large public and large private firms. Despite extensive government support for all SMEs through stimulus packages and credit facilities, the findings suggest that public status conferred additional advantages that enhanced SME resilience during the crisis. Moreover, the public SMEs were also able to expand their assets, exhibit higher investment ratio and lower default rates. The results remain robust across alternative specifications and falsification tests, reinforcing the credibility of the evidence and underscoring the importance of public equity markets in strengthening firm resilience during systemic shocks.