The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business

Anna Doś, Monika Wieczorek-Kosmala and Joanna Błach
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Anna Doś: Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland
Monika Wieczorek-Kosmala: Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland
Joanna Błach: Department of Corporate Finance and Insurance, Faculty of Finance, University of Economics in Katowice, 40-287 Katowice, Poland

Risks, 2022, vol. 10, issue 4, 1-17

Abstract: Recent studies uncover the lack of symmetry in COVID-19-related economic shock distributions among households. Thus, questions arise about the appropriateness of diverse risk-coping mechanisms by households. We add to this strand of research by focusing on households running a business. In particular, we analyze the role of basic legal aspects of running a business by individuals, specifically a legal form of business activity in shaping COVID-19-related business risk perception. We posit that the different legal forms allow for different risk-coping mechanisms. We incorporate analysis of variance (ANOVA) on data obtained via a survey distributed among households running a business in Poland, a country where the pandemic threatens poverty-reducing growth. We confirm that between the groups of households running a business in various legal forms, there are statistically significant differences regarding the impact of COVID-19. Thus, we conclude that the choice of business legal form affects vulnerability to COVID-19-related interruptions among households running a business.

Keywords: business resilience; risk sharing; risk limiting; household finance (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
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