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Determinants of Financial Risks Pre- and Post-COVID-19 in Companies Listed on Euronext Lisbon

Author

Listed:
  • Graça Azevedo

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal
    Research Centre on Accounting and Taxation—CICF, 4750-821 Barcelos, Portugal)

  • Jonas Oliveira

    (BRU-Iscte—Business Research Unit (IBS), ISCTE—Instituto Universitário de Lisboa, 1649-026 Lisboa, Portugal)

  • Tatiana Almeida

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal)

  • Maria Fátima Ribeiro Borges

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal)

  • Maria C Tavares

    (Higher Institute for Accountancy and Administration, University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal
    Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), 3810-193 Aveiro, Portugal)

  • José Vale

    (CEOS.PP—Centre for Organisational and Social Studies of Polytechnic of Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal)

Abstract

The COVID-19 pandemic had a significant impact on the economy and the stability of financial markets, creating challenges and financial risks for companies. This study analyzes the financial reports of companies listed on Euronext Lisbon with the aim of examining financial risk disclosures and calculating their determinants. For this purpose, data was collected from the Euronext Lisbon website as well as the companies’ own websites. Once the data were gathered, 16 companies were analyzed over a five-year period, from 2018 to 2022. Using panel data regression techniques (e.g., fixed effects regression models), it was observed that profitability, capital structure, and size have a positive but not statistically significant relationship with interest risk. Conversely, size and capital structure they have a positive and significant relationship with liquidity risk. Profitability has a positive and significant relationship with insolvency risk. Macroeconomic variables do not exhibit consistent signs across all models. This research provides insights into how the determinants of financial risks influence risks during a pandemic period.

Suggested Citation

  • Graça Azevedo & Jonas Oliveira & Tatiana Almeida & Maria Fátima Ribeiro Borges & Maria C Tavares & José Vale, 2025. "Determinants of Financial Risks Pre- and Post-COVID-19 in Companies Listed on Euronext Lisbon," JRFM, MDPI, vol. 18(3), pages 1-20, March.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:3:p:135-:d:1604979
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