Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling
The objective of this study is to estimate the impact of Covid-19 on business behavior and its spatial effect among companies. Four specifications have been developed to analyze the pandemic's influence on key variables determining business behavior: liquidity, indebtedness, profitability, and effic...
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| Format: | Article |
| Language: | English |
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AECR
2024-10-01
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| Series: | Investigaciones Regionales - Journal of Regional Research |
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| Online Access: | https://recyt.fecyt.es/index.php/IR/article/view/104421 |
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| _version_ | 1849391388460843008 |
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| author | David Garnés Galindo Manuel Ruiz-Marín María Luz Maté-Sánchez-Val |
| author_facet | David Garnés Galindo Manuel Ruiz-Marín María Luz Maté-Sánchez-Val |
| author_sort | David Garnés Galindo |
| collection | DOAJ |
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The objective of this study is to estimate the impact of Covid-19 on business behavior and its spatial effect among companies. Four specifications have been developed to analyze the pandemic's influence on key variables determining business behavior: liquidity, indebtedness, profitability, and efficiency. This study has focused on the province of Barcelona, Spain, from which a database of failed and non-failed companies has been compiled, both before and after the pandemic. The models have been estimated using the spatial Seemingly Unrelated Regressions (SUR) methodology, and each equation was estimated following a spatial Differences-in-Differences model. The results confirm that the emergence of Covid-19 has had a significant impact on companies' financial ratios, worsening their positions in terms of liquidity, indebtedness, and efficiency, with the existence of a spatial contagion pattern.
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| format | Article |
| id | doaj-art-6bc205608b784698be0f1b3f7e6313cd |
| institution | Kabale University |
| issn | 1695-7253 2340-2717 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | AECR |
| record_format | Article |
| series | Investigaciones Regionales - Journal of Regional Research |
| spelling | doaj-art-6bc205608b784698be0f1b3f7e6313cd2025-08-20T03:41:05ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532340-27172024-10-0110.38191/iirr-jorr.24.047Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive ModellingDavid Garnés GalindoManuel Ruiz-MarínMaría Luz Maté-Sánchez-Val The objective of this study is to estimate the impact of Covid-19 on business behavior and its spatial effect among companies. Four specifications have been developed to analyze the pandemic's influence on key variables determining business behavior: liquidity, indebtedness, profitability, and efficiency. This study has focused on the province of Barcelona, Spain, from which a database of failed and non-failed companies has been compiled, both before and after the pandemic. The models have been estimated using the spatial Seemingly Unrelated Regressions (SUR) methodology, and each equation was estimated following a spatial Differences-in-Differences model. The results confirm that the emergence of Covid-19 has had a significant impact on companies' financial ratios, worsening their positions in terms of liquidity, indebtedness, and efficiency, with the existence of a spatial contagion pattern. https://recyt.fecyt.es/index.php/IR/article/view/104421Business failurecovidDifferences-in-Differencescurrent ratiodebt ratioprofitability |
| spellingShingle | David Garnés Galindo Manuel Ruiz-Marín María Luz Maté-Sánchez-Val Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling Investigaciones Regionales - Journal of Regional Research Business failure covid Differences-in-Differences current ratio debt ratio profitability |
| title | Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling |
| title_full | Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling |
| title_fullStr | Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling |
| title_full_unstemmed | Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling |
| title_short | Unveiling the pandemic's impact: Did COVID-19 drive business failures? A Cutting-Edge Analysis with Spatial Autoregressive Modelling |
| title_sort | unveiling the pandemic s impact did covid 19 drive business failures a cutting edge analysis with spatial autoregressive modelling |
| topic | Business failure covid Differences-in-Differences current ratio debt ratio profitability |
| url | https://recyt.fecyt.es/index.php/IR/article/view/104421 |
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