Impact of covid 19 on the financial performance of Tunisian companies

Abstract Purpose- The purpose of this study is to evaluate theoretically and empirically the impact of the health crisis of covid-19 on the financial performance of Tunisian listed companies. Design/methodology/approach – The methodology of this research is based on a literature review and information collected from 40 Tunisian firms listed on the stock exchange. To estimate this result using a dynamic panel data model by the method of moments generalized during the period 2013–2020 which allows us to deal with the endogeneity problem of some independent and control variable. Findings – results of this study reveal that (1) the covid-19 crisis has certainly hit Tunisian companies hard, and they have suddenly found themselves in an unprecedented situation, both in terms of scope and severity while also revealing their financial vulnerability. (2) the crisis has a negative impact on the financial performance of Tunisian firms and was more pronounced in the industrial sector. (3) While size has a positive impact on firm performance, turnover, debt and the covid19 have a negative effect on the performance of Tunisian firms. Originality/value – This study provides information that supports investors, regulators and executive managers in countries that have used containment to control the health situation. A well-structured balance sheet would improve the financial performance and risk management of the listed companies, especially in times of crisis and pandemics.