Impact of Anti-Pandemic Policy Stringency on Firms’ Profitability during COVID-19

The coronavirus (COVID-19) pandemic devastated all economies across the world and triggered a deterioration in firms’ financial performance. However, some sectors turned out to be more vulnerable while others continued perform well during crisis period. Given this fact, we conducted comprehensive study estimate impact of COVID-19 on profitability Europe. We used dynamic panel data approach system generalized method moment (System-GMM) model investigate (i) which were affected what was magnitude profitability, (ii) whether stringency anti-pandemic policies such as workplace closures travel bans impacted firms unevenly. find that caused about 25% decline firms. most Consumer Discretionary, Staples, Industrials, where declined from 20 48%. also countries with high policy lost 19% than rest Europe 2020.