The Impact of the Global Pandemic on Firm Performance: Focus on Leisure Facilities and Casino Gaming Industries

Purpose - This study investigates how COVID-19 affected firm operational, financial, and market performance in the leisure facility and casino gaming industries listed across 31 countries and sub-regions, including South Korea. Design/Methodology - This study merged financial, market, and COVID-19-related data to analyze the impact of COVID-19 on firms in the leisure facility and casino gaming industries. The empirical analysis is based on the OLS and panel regression models, applying fixed and random effect models. Findings - First, the COVID-19 pandemic significantly negatively impacted the operations and financial performance of the entire selected industries. The COVID-19 pandemic significantly negatively impacted leisure facilities and casino gaming firm operations and financial performance when the industries were decomposed and analyzed. Third, further analysis revealed that the stringency measures imposed by governments during the global pandemic significantly affected the operations and financial performance of the firms in this study. Finally, when the industries are disintegrated, the impact of stringency on market performance varies across the selected industries. Originality/value - This study finds evidence supporting the damage of the COVID-19 pandemic to firms in the leisure facility, casino, and gaming industry’s operational and financial performance. Based on further analysis using the stringency index as a proxy for government response to COVID-19, the operations and financial performance of firms that thrive on social interaction were adversely affected by government intervention. This study is significant because understanding the impact of government intervention against a global pandemic on firm operational, financial, and market performance can offer basic information to develop more effective government intervention measures against future pandemics. Finally, it provides useful information for investors and policymakers during a global pandemic, such as COVID-19.