COVID-19 and firm’s performance: A cross-economy comparison of developed, emerging, and underdeveloped markets

Abstract

The aim of the study is to examine the impact of COVID-19 on the firm performance of underdeveloped, emerging and developed countries in order to determine which country was more affected. The sample period used in this study is from 2013-2023 and includes more than

300 businesses from 17 countries. This study employed a fixed effect model. The results show that COVID 19 has significantly impact the firm performance. These results are further supported by contrasting the predicted and real data. Whereas the investment growth did not moderate the relation. Compared to less developed and emerging countries, developed economies have been found to be more affected by COVID-19. Managers can now adjust their policies to be prepared for the post-endemic phase according to this study. It is beneficial for the state since it allows them to create policies that address the loss of all industries and sectors or assist them in advance by foreseeing the loss. It is beneficial for investors to rebalance portfolios by controlling risk to observe the variability of returns.