The interplay of internal and external factors on corporate performance during the COVID-19 pandemic: An empirical analysis of US-listed companies

This paper investigates the interplay of internal and external factors on corporate performance during the COVID-19 pandemic, utilising the resource-based view (RBV) and system theory frameworks. The study focuses on US-listed companies and examines financial flexibility, firm size, environmental, social, and governance (ESG) scores, corporate governance, macroeconomic conditions, and industry types. Using data from over 1000 firms obtained from the Eikon Refinitiv database, the analysis covers the pandemic period (2020–2022) and extends to three years prior (2017–2019) to ensure robustness. The research identifies a negative correlation between financial flexibility and corporate performance during the pandemic. Firms with higher cash reserves and lower debt experienced less decline in stock prices and revenue shortfall, indicating the importance of maintaining financial flexibility in times of crisis.