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Direct and Indirect Implications of the COVID-19 Pandemic on Amazon’s Financial Situation

Author

Listed:
  • Zixuan Qin

    (Adam Smith Business School, University of Glasgow, Glasgow G12 8QQ, UK)

  • Abeer Hassan

    (School of Business and Creative Industries, University of the West of Scotland, Paisley PA1 2BE, UK)

  • Mahalaxmi Adhikariparajuli

    (School of Business, Law and Social Sciences, Abertay University, Dundee DD1 1HG, UK)

Abstract

We provide theoretical and empirical insights into the impact of COVID-19 on Amazon’s financial position. A longitudinal case study of Amazon’s financial situation during the 2016–2020 period, and time-series analysis, ratio analysis, and DuPont analysis, are employed as a quantitative methodology to explore Amazon’s financial situation changes before and after the COVID-19 pandemic. As for the robustness of the in-depth analysis, we compare Amazon’s financial performance and position with Walmart. The result shows that the COVID-19 pandemic did not have a huge negative impact on the companies’ financial performance because of its promotion of their development. However, this study provides an in-depth analysis of the influence of COVID-19 on Amazon’s financial situation, which financial aspects are most affected by COVID-19, which are not, and the company’s response to COVID-19. Therefore, this study sheds light on the accounting literature to demonstrate the impact of COVID-19 on Internet companies’ financial performance and provides some reference values for subsequent academic research.

Suggested Citation

  • Zixuan Qin & Abeer Hassan & Mahalaxmi Adhikariparajuli, 2022. "Direct and Indirect Implications of the COVID-19 Pandemic on Amazon’s Financial Situation," JRFM, MDPI, vol. 15(9), pages 1-25, September.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:9:p:414-:d:918907
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    References listed on IDEAS

    as
    1. Kotha, Suresh, 1998. "Competing on the Internet:: The case of Amazon.com," European Management Journal, Elsevier, vol. 16(2), pages 212-222, April.
    2. Rahul Kapoor & Shiva Agarwal, 2017. "Sustaining Superior Performance in Business Ecosystems: Evidence from Application Software Developers in the iOS and Android Smartphone Ecosystems," Organization Science, INFORMS, vol. 28(3), pages 531-551, June.
    3. Peter D. Easton & Steven J. Monahan, 2016. "Review of Recent Research on Improving Earnings Forecasts and Evaluating Accounting-based Estimates of the Expected Rate of Return on Equity Capital," Abacus, Accounting Foundation, University of Sydney, vol. 52(1), pages 35-58, March.
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