COVID-19 pandemic and firm performance in leisure, arts, and hospitality industries: international evidence


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This study analyzes the impact of the COVID-19 pandemic on the performance of 944 Leisure, Arts, and Hospitality companies from 59 countries listed on global stock exchanges between 2018 and 2022. Using Ordinary Least Squares with robust standard errors, the study reveals a consistent and statistically significant negative impact of COVID-19 on the performance of firms. The results highlight the difficulties faced by companies in this industry during the pandemic. In addition, the study investigates the relationship between firm characteristics and company performance during the COVID-19 pandemic, revealing that company size, liquidity, and leverage play crucial roles in influencing firm performance across industries. Larger corporations exhibit greater resiliency, while greater liquidity facilitates better navigation of pandemic-induced obstacles. In contrast, companies with greater leverage experience more pronounced negative effects on their performance, highlighting the significance of debt management during a crisis. Based on these findings, policymakers are strongly urged to provide targeted assistance to Leisure, Arts, and Hospitality industries to address the challenges the pandemic poses effectively. Regulators should encourage the resiliency of larger firms and stress the importance of maintaining higher liquidity levels for financial stability. It is recommended that managers should prudently manage debt to limit pandemic repercussions and boost performance in the face of extraordinary challenges.

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    • Table 1. Distribution of the sample firms by country
    • Table 2. Dependent and independent variables
    • Table 3. Descriptive statistics for all variables
    • Table 4. Correlation matrix (n = 4285)
    • Table 5. COVID-19 and firm performance (All Sectors)
    • Table 6. COVID-19 and firm performance (Hotels & Restaurants)
    • Table 7. COVID-19 and firm performance (Recreational Services)
    • Table 8. COVID-19 and firm performance (Tourism)
    • Conceptualization
      Felisitas Defung, Rizky Yudaruddin
    • Formal Analysis
      Felisitas Defung, Rizky Yudaruddin
    • Funding acquisition
      Felisitas Defung, Michael Hadjaat
    • Investigation
      Felisitas Defung, Rizky Yudaruddin
    • Methodology
      Felisitas Defung, Rizky Yudaruddin
    • Project administration
      Felisitas Defung, Michael Hadjaat
    • Resources
      Felisitas Defung, Michael Hadjaat, Rizky Yudaruddin
    • Software
      Felisitas Defung, Rizky Yudaruddin
    • Supervision
      Felisitas Defung
    • Visualization
      Felisitas Defung, Michael Hadjaat
    • Writing – review & editing
      Felisitas Defung
    • Data curation
      Michael Hadjaat, Rizky Yudaruddin
    • Writing – original draft
      Michael Hadjaat, Rizky Yudaruddin
    • Validation
      Rizky Yudaruddin