RT info:eu-repo/semantics/article
T1 Effects of financial restrictions on firms’ financial resilience against the COVID-19 pandemic: evidence from the European hospitality industry
A1 Tascón Fernández, María Teresa
A1 Castro Castro, Paula
A1 Valdunciel Bustos, Laura
A2 Economia Financiera y Contabilidad
K1 Economía
K1 Empresas
K1 Finanzas
K1 Turismo
K1 Covid-19
K1 Financial health
K1 Financial restrictions
K1 Hospitality industry
AB [EN] The COVID-19 pandemic has severely affected the tourism sector and the survival of hospitalityfirms. This study examines how hospitality firms’ financial characteristics prior to the outbreak ofthe pandemic determined their financial resilience. We analysed a sample of large European firmsoperating in the hospitality industry from 2016 to 2020. Using ordinary least squares, we findsignificant impacts of both COVID-19 incidence (negative) and the strength of the health system(positive) on firms’ financial health. Our results show that firms’ recent pre-COVID-19 profitability,leverage, tangibility, and liquidity histories are key drivers of their financial health in the presenceof this exogenous and extremely negative shock. Furthermore, a contextual macroeconomic factor,the interest rate, introduced as a proxy for external financial restrictions, plays a key role in theeffects of liquidity and debt on firms’ financial health. With higher interest rates, firms accumulatedliquidity during the years prior to the pandemic, making them more resilient to the shock; incontrast, with lower interest rates, a history of limited leverage and tangibility contributed tomaking hospitality firms more resilient in 2020.
PB Routledge
SN 0003-6846
LK https://hdl.handle.net/10612/18777
UL https://hdl.handle.net/10612/18777
NO Tascón, M. T., Castro, P., y Valdunciel, L. (2023). Effects of financial restrictions on firms’ financial resilience against the COVID-19 pandemic: evidence from the European hospitality industry. Applied Economics, 1–16. https://doi.org/10.1080/00036846.2023.2289951.
DS BULERIA. Repositorio Institucional de la Universidad de León
RD 01-jun-2024