IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i2p80-d1340877.html
   My bibliography  Save this article

Analysing the Impact of Crises on Financial Performance: Empirical Insights from Tourism and Transport Companies Listed on the Bucharest Stock Exchange (during 2005–2022)

Author

Listed:
  • Mihaela Neacșu

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 700506 Iași, Romania)

  • Iuliana Eugenia Georgescu

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 700506 Iași, Romania)

Abstract

To adapt to the business environment, organisations adhere to management strategies capable of removing the effects of negative events, transforming themselves into resilient organisations. Physical and mental difficulties are the consequences of recent corporate developments, and protecting these organisations is a significant concern for managers. Using regression analysis of panel data, we evaluate the effectiveness and performance of 34 tourism and transport companies listed on the BSE in the 2005–2022 period by testing the effect of leverage on financial performance. Then, we focus on identifying the effects of recent crises (the global financial crisis of 2007–2008 and the COVID-19 pandemic) on financial performance and, implicitly, on organisational resilience. The findings suggest that the research hypotheses were partially validated, noting that the indicators included in the study registered significant decreases for the COVID-19 crisis period compared to the global financial crisis period. The paper provides information on measuring the resilience of companies through their ability to withstand the global financial crisis and the crisis triggered by the COVID-19 pandemic. This study is also among the first to examine the role of financial crises in the leverage and financial performance relationship in Romania.

Suggested Citation

  • Mihaela Neacșu & Iuliana Eugenia Georgescu, 2024. "Analysing the Impact of Crises on Financial Performance: Empirical Insights from Tourism and Transport Companies Listed on the Bucharest Stock Exchange (during 2005–2022)," JRFM, MDPI, vol. 17(2), pages 1-14, February.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:2:p:80-:d:1340877
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/2/80/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/2/80/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prayag, Girish & Chowdhury, Mesbahuddin & Spector, Samuel & Orchiston, Caroline, 2018. "Organizational resilience and financial performance," Annals of Tourism Research, Elsevier, vol. 73(C), pages 193-196.
    2. Mercedes Mareque & Francisco López-Corrales & Aurea Pedrosa, 2017. "Audit reporting for going concern in Spain during the global financial crisis," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 154-183, January.
    3. Lo, Kin, 2003. "Economic consequences of regulated changes in disclosure: the case of executive compensation," Journal of Accounting and Economics, Elsevier, vol. 35(3), pages 285-314, August.
    4. Matt Pinnuck, 2012. "A Review of the Role of Financial Reporting in the Global Financial Crisis," Australian Accounting Review, CPA Australia, vol. 22(1), pages 1-14, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lisa Baudot & Zhongwei Huang & Dana Wallace, 2021. "Stakeholder Perceptions of Risk in Mandatory Corporate Responsibility Disclosure," Journal of Business Ethics, Springer, vol. 172(1), pages 151-174, August.
    2. Ian Dew-Becker, 2008. "How Much Sunlight Does it Take to Disinfect a Boardroom? A Short History of Executive Compensation Regulation," CESifo Working Paper Series 2379, CESifo.
    3. Li, Xi, 2014. "The Sarbanes–Oxley act and cross-listed foreign private issuers," Journal of Accounting and Economics, Elsevier, vol. 58(1), pages 21-40.
    4. Jang, Seongsoo & Park, Jin Suk & Choi, Youngseok Thomas, 2022. "Organizational resource and resilience in tourism," Annals of Tourism Research, Elsevier, vol. 93(C).
    5. Bertomeu, Jeremy & Magee, Robert P., 2011. "From low-quality reporting to financial crises: Politics of disclosure regulation along the economic cycle," Journal of Accounting and Economics, Elsevier, vol. 52(2), pages 209-227.
    6. Ormazabal, Gaizka, 2018. "The Role of Stakeholders in Corporate Governance: A View from Accounting Research," CEPR Discussion Papers 12775, C.E.P.R. Discussion Papers.
    7. Ritchie, Brent W. & Jiang, Yawei, 2019. "A review of research on tourism risk, crisis and disaster management: Launching the annals of tourism research curated collection on tourism risk, crisis and disaster management," Annals of Tourism Research, Elsevier, vol. 79(C).
    8. Laura Rienda & Lorena Ruiz-Fernández & Rosario Andreu, 2024. "Internationalization and Sustainable Hotel Competitiveness: Resilience and Network Ties to Increase Tourism Sustainability," Sustainability, MDPI, vol. 16(8), pages 1-12, April.
    9. Yang, Eunjung & Kim, Jinwon & Pennington-Gray, Lori & Ash, Kevin, 2021. "Does tourism matter in measuring community resilience?," Annals of Tourism Research, Elsevier, vol. 89(C).
    10. Yuan, Ruizhi & Luo, Jun & Liu, Martin J. & Yu, Jiang, 2022. "Understanding organizational resilience in a platform-based sharing business: The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 141(C), pages 85-99.
    11. Butler, Marty & Kraft, Arthur & Weiss, Ira S., 2007. "The effect of reporting frequency on the timeliness of earnings: The cases of voluntary and mandatory interim reports," Journal of Accounting and Economics, Elsevier, vol. 43(2-3), pages 181-217, July.
    12. Ying Zhou, 2022. "Proprietary Costs and Corporate Lobbying Against Changes in Mandatory Disclosure," Management Science, INFORMS, vol. 68(11), pages 8483-8505, November.
    13. Nadezda Gulko & Catriona Hyde & Nina Seppala, 2017. "Disclosure of corporate risks and governance before, during and after the global financial crisis: case study in the UK construction industry in 2006–2009," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(3), pages 207-223, August.
    14. Yuri Biondi & Pierpaolo Giannoccolo, 2015. "Share price formation, market exuberance and financial stability under alternative accounting regimes," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 333-362, October.
    15. Albuquerque, Rui & Lei, Zicheng & Rocholl, Jörg & Zhang, Chendi, 2020. "Citizens United vs. FEC and corporate political activism," Journal of Corporate Finance, Elsevier, vol. 60(C).
    16. Mi Joo Lee & In Tae Hwang & Sun Min Kang, 2020. "The Effect of Forward‐looking Criteria and IFRS on the Informativeness of Banks’ Loan Loss Allowances: Evidence from Korea," Australian Accounting Review, CPA Australia, vol. 30(2), pages 85-104, June.
    17. Sanoran, Kanyarat (Lek), 2018. "Auditors’ going concern reporting accuracy during and after the global financial crisis," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(2), pages 164-178.
    18. Josef Jílek, 2016. "‘Fair Value’ of Core Deposits in the EU version of IFRS: A Critical Review," Australian Accounting Review, CPA Australia, vol. 26(3), pages 312-325, September.
    19. Majeed, Muhammad Ansar & Yan, Chao, 2021. "Financial statement comparability, state ownership, and the cost of debt: Evidence from China," Research in International Business and Finance, Elsevier, vol. 58(C).
    20. Corbet, Shaen & Efthymiou, Marina & Lucey, Brian & O'Connell, John F., 2021. "When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines," Annals of Tourism Research, Elsevier, vol. 87(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:2:p:80-:d:1340877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.