Factors influencing the financial performance strategy of healthcare listed companies during the COVID-19 pandemic

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Abstract

This study aims to examine the performance of 1,236 Chinese-listed healthcare companies, focusing on the pre- and post-COVID-19 periods. Utilizing multiple regression, ordinary least squares (OLS), fixed-effects model (FEM), and random-effects model (REM) to investigate the relationship between financial indicators and company performance during the COVID-19 pandemic. The study measures profitability using return on assets (ROA) and return on equity (ROE) as dependent variables. Key financial metrics, namely debt-to-asset ratio (D/A), debt-to-equity ratio (D/E), sales growth (SG), operating cash flows (OCF), and size (S), are used as independent variables in this study. The findings reveal significant variations in company performance across different models and periods. The results suggest that financial liquidity, leverage (Batrancea, 2021), SG, and OCF have a significant impact on company performance (Musa et al., 2022). However, the novelty of this study is that COVID-19 has no statistically significant changes in the profitability of Chinese health firms. This study contributes to a deeper understanding of financial dynamics within the healthcare sector and provides valuable insights for stakeholders navigating the challenges posed by the COVID-19 pandemic.

Keywords: Healthcare Sector, COVID-19 Pandemic, Financial Performance, Return on Equity, Return on Assets, Debt-to-Asset Ratio, Debt-to-Equity Ratio, Sales Growth, Operating Cash Flows

Authors’ individual contribution: Conceptualization — J.L. and K.T.; Methodology — K.T.; Data Curation — J.L.; Writing — Original Draft — J.L. and K.T.; Writing — Review & Editing — J.L. and K.T.; Supervision — K.T.; Funding Acquisition — J.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, G32, I18, L25

Received: 15.06.2024
Revised: 20.10.2024; 20.11.2024; 30.05.2025
Accepted: 24.06.2025
Published online: 26.06.2025

How to cite this paper: Li, J., & Terdpaopong, K. (2025). Factors influencing the financial performance strategy of healthcare listed companies during the COVID-19 pandemic. Corporate & Business Strategy Review, 6(3), 64–73. https://doi.org/10.22495/cbsrv6i3art6