Received:
2021-09-08 | Accepted:
2021-11-15 | Published:
2021-12-30
Title
The impact of COVID-19 on the financial performance: a case study of the Lithuanian transport sector
Abstract
The changing global situation due to the outbreaks of COVID-19 is causing a crisis, not only in terms of healthcare but also in economic terms. Companies are faced with hasty decisions to avoid financial problems or even bankruptcy. Both in theory and practice, there are often more negative than positive effects of the coronavirus outbreak on transport sector business, but this topic has not yet been sufficiently explored due to the novelty of the situation and the divergent opinions of authors on some matters. The most significant impact is emphasised in the case of air transport, and the least studied area is road transport activity, which in Lithuania comprises the largest share of all modes of transport. It is observed that transport companies experience a decline in profitability indicators during the first wave of COVID-19. In the course of the investigation, the expert survey identified the most affected profitability and liquidity indicators of road transport companies. Relative financial indicators and a study of the financial results of coronavirus-related quarantine carried out using paired correlation analysis showed that there is an unequal connection between the number of days of quarantine in Lithuania and the relative financial indicators of road transport companies. Therefore, the crisis caused by COVID-19 is likely to have a positive or negative impact on the financial performance of a company, depending on the company's activity. However, in some cases, there may be no impact at all. The monitoring of the constantly changing coronavirus crisis and the corresponding economic situation is an important immediate and continuous participation in the monitoring and control of the financial situation of companies.
Keywords
coronavirus, COVID-19, financial indicators, transport sector, road transport companies, economic crisis
JEL classifications
A10
, C10
, C83
, M20
URI
http://jssidoi.org/ird/article/83
DOI
HAL
Pages
34-50
Funding
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Abate, M., Christidis, P., & Purwanto, A. J. (2020). Government support to airlines in the aftermath of the COVID-19 pandemic. Journal of Air Transport Management, 101931. https://doi.org/10.1016/j.jairtraman.2020.101931
Search via ReFindit
Ajam, T. (2020). The economic costs of the pandemic—and its response. South African Journal of Science, 116(7/8). https://doi.org/10.17159/sajs.2020/8490
Search via ReFindit
Baak, M., Koopman, R., Snoek, H., & Klous, S. (2020). A new correlation coefficient between categorical, ordinal and interval variables with Pearson characteristics. Computational Statistics and Data Analysis, 152, 107043. https://doi.org/10.1016/j.csda.2020.107043
Search via ReFindit
Baležentis, A., & Žalimaitė, M. (2011). Ekspertinių vertinimų taikymas inovacijų plėtros veiksnių analizėje: Lietuvos inovatyvių įmonių vertinimas (Application of expert evaluations in the analysis of innovation development factors: Evaluation of Lithuanian innovative companies). Management Theory and Studies for Rural Business and Infrastructure Development, 3 (27). Research papers. http://mts.asu.lt/mtsrbid/article/viewFile/269/298
Search via ReFindit
Barua, S. (2020). Understanding Coronanomics: The Economic Implications of the Coronavirus (COVID-19) Pandemic. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3566477
Search via ReFindit
Bilevičienė, T., & Jonušauskas, S. (2011). Statistinių metodų taikymas rinkos tyrimuose (Application of statistical methods in market research). Vadovėlis. Mykolo Romerio universtitetas. https://repository.mruni.eu/bitstream/handle/007/16758/9789955192770.pdf?sequence=1
Search via ReFindit
Bliekienė, R., & Stundžienė, A. (2012). Ekonomikos svyravimų įtaka įmonių veiklos rezultatams (Influence of economic fluctuations on the performance of companies). Verslas: Teorija Ir Praktika, 13(1), 5–17. https://www.ceeol.com/search/article-detail?id=23014
Search via ReFindit
Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial ratios: A decision tree approach. Expert Systems with Applications, 40(10), 3970–3983. https://doi.org/10.1016/j.eswa.2013.01.012
Search via ReFindit
Fenyves, V., Zsido, K. E., Bircea, I., & Tarnoczi, T. (2020). Financial performance of Hungarian and Romanian retail food small businesses. British Food Journal, 122(11), 3451–3471. https://doi.org/10.1108/BFJ-05-2019-0330
Search via ReFindit
Hu, S., & Zhang, Y. (2021). COVID-19 pandemic and firm performance: Cross-country evidence. International Review of Economics and Finance, 74, 365–372. https://doi.org/10.1016/j.iref.2021.03.016
Search via ReFindit
ICAO. (2020). Effects of Novel Coronavirus (COVID-19) on Civil Aviation: Economic Impact Analysis Air Transport Bureau Contents. https://www.icao.int/sustainability/Documents/COVID-19/ICAO_Coronavirus_Econ_Impact.pdf
Search via ReFindit
Jenelius, E., & Cebecauer, M. (2020). Impacts of COVID-19 on public transport ridership in Sweden: Analysis of ticket validations, sales and passenger counts. Transportation Research Interdisciplinary Perspectives, 8, 100242. https://doi.org/10.1016/j.trip.2020.100242
Search via ReFindit
Kadim, A., Sunardi, N., & Husain, T. (2020). The modeling firm's value based on financial ratios, intellectual capital and dividend policy. https://doi.org/10.5267/j.ac.2020.5.008
Search via ReFindit
Kardelis, K. (2017). Mokslinių tyrimų metodologija ir metodai (Research methodology and methods). Vadovėlis. Mokslo ir enciklopedijų leidybos centras.
Search via ReFindit
Kazakevičius, A., & Jakštas, E. (2018). Verslo įmonių finansinių ataskaitų analizė (Analysis of financial statements of business enterprises). Mokomoji knyga. Kauno kolegijos Reklamos ir medijų centras. http://dspace.kaunokolegija.lt//handle/123456789/149
Search via ReFindit
Kendall, M. (1970). Rank correlation methods (4th ed.). Griffin.
Search via ReFindit
Khatib, S., & Nour, A.-N. I. (2021). The Impact of Corporate Governance on Firm Performance During The COVID-19 Pandemic: Evidence from Malaysia. Ournal of Asian Finance, Economics and Business, 8(2), 0943–0952. https://doi.org/10.1016/j.jairtraman.2020.101931
Search via ReFindit
Lietuvos statistikos departamentas. (2021). Oficialiosios statistikos portalas (Official Statistics Portal). https://osp.stat.gov.lt/
Search via ReFindit
Linares-Mustarós, S., Coenders, G., & Vives-Mestres, M. (2018). Financial performance and distress profiles. From classification according to financial ratios to compositional classification. Advances in Accounting, 40, 1–10. https://doi.org/10.1016/j.adiac.2017.10.003
Search via ReFindit
Liu, W., Liang, Y., Bao, X., Qin, J., & Lim, M. K. (2020). China's logistics development trends in the post COVID-19 era. International Journal of Logistics Research and Applications, 1–12. https://doi.org/10.1080/13675567.2020.1837760
Search via ReFindit
Loske, D. (2020). The impact of COVID-19 on transport volume and freight capacity dynamics: An empirical analysis in German food retail logistics. Transportation Research Interdisciplinary Perspectives, 6, 100165. https://doi.org/10.1016/j.trip.2020.100165
Search via ReFindit
Mackevičius, J., & Valkauskas, R. (2010). Integruota įmonės finansinės būklės ir veiklos rezultatų analizės metodika (Integrated methodology of the company's financial condition and performance analysis). Verslas: Teorija Ir Praktika, 3, 213–221. https://epublications.vu.lt/object/elaba:4290300/
Search via ReFindit
Maryla, M., Aaditya, M., & van der Mensbrugghe, D. (2020). The Potential Impact of COVID-19 on GDP and Trade. SSRN Electronic Journal. https://doi.org/10.1596/1813-9450-9211
Search via ReFindit
Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. In International Journal of Surgery (Vol. 78, pp. 185–193). Elsevier Ltd. https://doi.org/10.1016/j.ijsu.2020.04.018
Search via ReFindit
Ozaydin, O., & Ulengin, F. (2020). Impacts of COVID-19 on the Transport Sector and Measures as Well as Recommendations of Policies and Future Research: A Report on Turkey. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3686628
Search via ReFindit
Pabedinskaitė, A., & Činčikaitė, R. (2016). Kiekybiniai modeliavimo metodai. Vilnius Gediminas Technical University. https://doi.org/10.20334/1563-s
Search via ReFindit
Petryk, V. L. (2020). An Analysis of the Global Civil Aviation Market and a Forecast of its Development in the Face of Unstable Demand for Air Transportation. Business Inform, 3(506), 112–119. https://doi.org/10.32983/2222-4459-2020-3-112-119
Search via ReFindit
Podvezko, V. (2004). Agreement of expert estimates, Technological and Economic Development of Economy. 11(2), 101–107. https://doi.org/10.3846/13928619.2005.9637688
Search via ReFindit
Poteliūnienė, N., Andruškevič, A., Leipus, A., Keršienė, D., Bagdžiūnienė, I., Stankevič, J., Klepikovaitė, K., Čepauskaitė, S., Guobienė, R., Pupeikytė-Usačiova, R., & Obcarskienė, R. (2020). COVID-19 krizės ir ekstremaliosios situacijos valdymas (COVID-19 Crisis and Emergency Management). Aukščiausioji Audito Institucija.
Search via ReFindit
Rababah, A., Al‐Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing the effects of COVID‐19 pandemic on the financial performance of Chinese listed companies. Journal of Public Affairs, 20(4), e2440. https://doi.org/10.1002/pa.2440
Search via ReFindit
Sahoo, P., & Ashwani. (2020). COVID-19 and Indian Economy: Impact on Growth, Manufacturing, Trade and MSME Sector. Global Business Review, 21(5), 1159–1183. https://doi.org/10.1177/0972150920945687
Search via ReFindit
Savickas, V. (2019). Issues in selecting profitability indicators for the evaluation of corporate financial performance. Buhalterinės Apskaitos Teorija Ir Praktika, 20, 6. https://doi.org/10.15388/batp.2019.14
Search via ReFindit
Serrano, F., & Kazda, A. (2020). The future of airport post COVID-19. Journal of Air Transport Management, 89, 101900. https://doi.org/10.1016/j.jairtraman.2020.101900
Search via ReFindit
Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The Impact of the COVID-19 Pandemic on Firm Performance. Emerging Markets Finance and Trade, 56(10), 2213–2230. https://doi.org/10.1080/1540496X.2020.1785863
Search via ReFindit
Steponavičiūtė, E., & Kamarauskienė, I. (2016). Santykinių rodiklių taikymas viešojo sektoriaus subjektuose (bendrojo lavinimo įstaigų pavyzdžiu). Application of financial ratios in public sector entities (on the example of general education institutions) VU EF Studentų Mokslinės Draugijos Konferencijos Straipsnių Rinkinys, 211–222.
Search via ReFindit
Tamulevičienė, D. (2016). Methodology of complex analysis of companies' profitability. Enterpreneurship and Sustainability Issues, 4(1). https://doi.org/10.9770/jesi.2016.4.1(5)
Search via ReFindit
Tardivo, A., Sánchez, C., Armando, M., Zanuy, C., Martín, C. S., Carrillo Zanuy, A., & Zanuy, A. C. (2020). COVID-19 impact in transport, an essay from the railways' systems research perspective. https://www.worldometers.info/coronavirus/
Search via ReFindit
Thacker, P. G., Witte, R. J., & Menaker, R. (2020). Key financial indicators and ratios: How to use them for success in your practice. Clinical Imaging, 64, 80–84. Elsevier Inc. https://doi.org/10.1016/j.clinimag.2020.03.015
Search via ReFindit