Governmental Revenue Compensation during COVID-19: Did Firm Resources and Institutional Factors Explain Who Received It?

Jarle Aarstad (), Stig-Erik Jakobsen, Arnt Fløysand and Olav Andreas Kvitastein
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Jarle Aarstad: HVL Business School, Western Norway University of Applied Sciences, P.O. Box 7030, NO-5020 Bergen, Norway
Stig-Erik Jakobsen: HVL Business School, Western Norway University of Applied Sciences, P.O. Box 7030, NO-5020 Bergen, Norway
Arnt Fløysand: HVL Business School, Western Norway University of Applied Sciences, P.O. Box 7030, NO-5020 Bergen, Norway
Olav Andreas Kvitastein: HVL Business School, Western Norway University of Applied Sciences, P.O. Box 7030, NO-5020 Bergen, Norway

Tourism and Hospitality, 2024, vol. 5, issue 3, 1-14

Abstract: During COVID-19, the Norwegian Government provided compensation to amend firms’ decreased revenues, yet it should be neutral and tailored to losses only. However, firm resources or institutional factors may have influenced the compensation, which we study here. Survey data showed a high probability of compensation among large firms, although they were not hit particularly hard by COVID-19. Also, compensation was prevalent for firms in the hospitality, tourism, and culture industry, and a likely explanation is that they were hit hard. However, their probability of compensation was prevalent compared to firms in other industries, regardless of revenue losses. We assume that large firms’ compensation was due to their resources to apply for funding successfully, while institutional factors explained the compensation for firms in the hospitality, tourism, and culture industry.

Keywords: COVID-19; revenue compensation; industry analysis; liability of smallness; balancing data; matching (search for similar items in EconPapers)
JEL-codes: Z3 Z30 Z31 Z32 Z33 Z38 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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