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

Author

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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)

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.

Suggested Citation

  • Rabie Mahssouni & Mohamed Makhroute & Mohamed Noureddine Touijer & Abdelaziz Elabjani, 2023. "Dual Perspectives on Financial Performance: Analyzing the Impact of Digital Transformation and COVID-19 on European Listed Companies," JRFM, MDPI, vol. 16(8), pages 1-14, August.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:8:p:371-:d:1215909
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    References listed on IDEAS

    as
    1. Lei Guo & Luying Xu, 2021. "The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    2. Zhu Xiangyu & Yang Yang, 2021. "Big Data Analytics for Improving Financial Performance and Sustainability," Journal of Systems Science and Information, De Gruyter, vol. 9(2), pages 175-191, April.
    3. Judit Nagy & Judit Oláh & Edina Erdei & Domicián Máté & József Popp, 2018. "The Role and Impact of Industry 4.0 and the Internet of Things on the Business Strategy of the Value Chain—The Case of Hungary," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
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