Impact of Covid-19 on Firm Performance: A Systematic Literature Review Using PRISMA Framework

Abstract

Amidst the massive expansion of Covid-19 literature, this paper aims to articulate existing findings, pinpoint practical implications, and provide promising directions for future exploration using a systematic literature review. Following the PRISMA framework, this research analyzed relevant 60 articles published in ABDC ranked and SCOPUS indexed journals during 2020-2024. Moreover, ABS rankings were used to provide an additional layer of quality assessment of sample articles. Using Excel, VOSviewer and Biblioshiny, the authors analyzed the corresponding studies, and results indicate that most research investigating this issue published in B ranked (as per ABDC), Q1 ranked (as per SCOPUS) and ABS-2 and 1 ranked (as per ABS) journals primarily by Elsevier and Emerald publishers. Besides, 43% of papers are Asia based (China contributing most), and the most used databases were CSMAR, BvD, Compustat, Datastream, and Prowess. Quantitative research methods such as Pooled OLS, Logistic regression, Fixed effect model, 2SLS, 3SLS, DID etc. dominated the literature, whereas qualitative methods such as surveys and conceptual studies were rarely used. Around half of the sampled papers used only accounting-based measures (ROA, ROE, NPM, EBITDA, EPS) as dependent variables. Despite the overwhelmingly negative impact of Covid-19 on firm performance, 16.67% of the sampled papers reported mixed results in various regions and countries due to several firm-specific, macro-economic, and industry-specific factors. These articles provide important implications for managers, board of directors, investors, and regulators. Practitioners should adopt a sector- and region-specific approach to combat pandemics. Future researchers may focus on conducting both short-term and long-term studies incorporating factors like government stimulus package, business sensitivity to multiple phases of Covid-19 and the country’s preparedness using longitudinal studies, surveys, meta-analysis, in-depth interviews, observations, and case studies to fully comprehend the effects of Covid-19.

Keywords

• covid-19
• firm performance
• financial crisis
• systematic literature review
• prisma