Dual Perspectives on Financial Performance: Analyzing the Impact of Digital Transformation and COVID-19 on European Listed Companies

Rabie Mahssouni, Mohamed Makhroute, Mohamed Noureddine Touijer () and Abdelaziz Elabjani
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Rabie Mahssouni: Laboratory of Researches in Finance, Accounting, Management and Systems Decision Support Information at The National School of Business and Management, Hassan Ier University, Settat 26000, Morocco
Mohamed Makhroute: Laboratory of Researches in Finance, Accounting, Management and Systems Decision Support Information at The National School of Business and Management, Hassan Ier University, Settat 26000, Morocco
Mohamed Noureddine Touijer: Laboratory of Interdisciplinary Studies of Research and Study in Management and Business Law (LIRE-MD), Faculty of Law, Economics and Social Sciences (FSJES), Cadi Ayyad University, Marrakech 40000, Morocco
Abdelaziz Elabjani: Laboratory of Interdisciplinary Studies of Research and Study in Management and Business Law (LIRE-MD), Faculty of Law, Economics and Social Sciences (FSJES), Cadi Ayyad University, Marrakech 40000, Morocco

JRFM, 2023, vol. 16, issue 8, 1-14

Abstract: This paper conducts an analysis of the impact of COVID-19 and digital transformation (DT) on the financial performance of European listed companies. Using a panel data regression model from 2015 to 2021, the study analyzed the financial performance of 2179 companies. The sample of companies was chosen based on the availability of financial statements and aimed to examine the effects of COVID-19 and DT on financial performance, as measured by return on assets (ROA). The study used a fixed-effect model and checked for robustness by introducing return on equity (ROE) as a dependent variable. The results indicated that COVID-19 had a negative significant impact on financial performance, while DT had a positive significant impact, consistent with previous research. This study provides valuable insights into the impacts of the COVID-19 pandemic and DT on the financial performance of listed companies.

Keywords: digital transformation; financial performance; listed companies; Europe; panel data; fixed effect; COVID-19 (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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