The impact of COVID-19 on company performance per industry sector: Evidence from South Africa
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | The impact of COVID-19 on company performance per industry sector: Evidence from South Africa | |
| Creator | Muthu, Kugin Wesson, Nicolene | |
| Description | Orientation: Governments across the world have adopted a variety of preventative measures to curb the spread of the coronavirus disease 2019 (COVID-19). The full socioeconomic costs present a significant threat to economic growth, with developing economies such as South Africa predicted to be the worst affected.Research purpose: This study assessed the impact of COVID-19 on company performance based on the various industry sectors of the Johannesburg Securities Exchange (JSE) of South Africa.Motivation for the study: The study builds on the growing body of knowledge on the impact of COVID-19 on company performance in a South African context.Research approach and method: All JSE-listed companies were analysed for the period 2014–2020. Descriptive statistics and regression analyses were applied to assess the impact of COVID-19 on company performance per industry sector and to identify the mechanisms through which company performance was affected during the pandemic year.Main findings: Company performance per JSE industry sector suffered a significant negative impact during the 2020 pandemic year. Sectors were affected differently owing to the idiosyncratic nature of each industry. Cash-flow-related variables significantly affected company performance during the pandemic year.Practical implications: A healthy cash flow is paramount in times of crisis. Investors and other stakeholders should be cognisant of how industry sector idiosyncrasies affect company performance during crises.Contribution: Results may provide insights into the effect of COVID-19 on company performance per industry sector in South Africa, to support the mitigation of the negative consequences of COVID-19 and future crises or pandemics. | |
| Publisher | AOSIS | |
| Date | 2023-01-30 | |
| Identifier | 10.4102/jef.v16i1.801 | |
| Source | Journal of Economic and Financial Sciences; Vol 16, No 1 (2023); 12 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/801/1508
https://jefjournal.org.za/index.php/jef/article/view/801/1509
https://jefjournal.org.za/index.php/jef/article/view/801/1510
https://jefjournal.org.za/index.php/jef/article/view/801/1511
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