PERFORMANCE OF SLOVENIAN LISTED FIRMS DURING COVID-19 OUT-BREAK

Tomislava Pavic Kramaric

doi:10.52950/ES.2023.12.1.008

Authors

Tomislava Pavic Kramaric University of Split, University Department of Forensic Sciences, Croatia Author

DOI:

https://doi.org/10.52950/ES.2023.12.1.008

Keywords:

Firm performance, Dynamic panel analysis, Tobin’s Q, ROA, ROE, Listed firms, COVID-19, Slovenia

Abstract

This research aims to estimate the determinants of firm performance during the COVID-19 pandemic. For this purpose, a sample of Slovenian non-financial listed firms operating in the period 2017–2021 is used. Firm performance is expressed through both market-based and accounting-based performance measures, including Tobin's Q, ROA, and ROE, while potential determinants encompass several firm-specific variables. These include firm size, liquidity expressed through the current ratio, leverage, tangibility, sales growth, firm age, as well as a COVID-19 dummy variable. The results of the dynamic panel analysis disclose that liquidity, leverage, sales growth, and the COVID-19 dummy are statistically significant in explaining firm performance. Specifically, liquidity and leverage are found to be significant in explaining Tobin's Q, sales growth is a statistically significant determinant of both ROA and ROE, while the latter is also negatively impacted by leverage and the COVID-19 dummy.

Data:
Received: 3 Feb 2023
Revised: 18 Mar 2023
Accepted: 17 Apr 2023
Published: 1 May 2023