A framework for examining sustained corporate sales revenue and equity value during the covi-19 pandemic.
Molate, Mosie Chamano Constance
Molate, Mosie Chamano Constance
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Abstract
The aim of the study was to develop a framework for understanding sustained sales revenue and equity value during the COVID-19 pandemic. The specific objectives were: to determine the relationship between corporate branding and sales revenue during the Covid-19 pandemic; to determine the relationship between corporate innovation and sales revenue during the Covid-19 pandemic; to identify the relationship between corporate diversity and sales revenue during the Covid-19 pandemic; to determine the relationship between corporate branding and equity value during the Covid-19 pandemic; to determine the relationship between corporate innovation and equity value during the Covid-19 pandemic, and finally, to determine the relationship between corporate diversity and equity value during the Covid-19 pandemic. These objectives were pursued while controlling for corporate entities’ marketing expenses, size, age, and leverage. The study applied a quantitative analytical method, drawing on a sample of 74 global companies from various industries that the Financial Times identified (and ranked) as having prospered during the COVID-19 pandemic. The data were collected from the financial years 2019 to 2021 and analyzed using a Pearson pairwise
correlation matrix and by performing a cross-sectional regression analysis. The study found a positive and statistically insignificant impact between sales revenue and corporate branding. The study also found that corporate innovation has a positive but insignificant effect on sales revenue, while it has a significantly negative effect on equity value. Moreover, corporate diversity was found to have a significantly negative influence on sales revenue. The impact of corporate branding and diversity on equity value was positive but statistically insignificant. Furthermore, the findings remain consistent after taking into account sector heterogeneity. The findings from the analysis achieve the six secondary research objectives. The research contributes to knowledge of business processes through the development of a framework for understanding factors that support the attainment of sustained corporate sales revenue and equity value during crisis. No similar framework of this nature had been developed prior to the Covid-19 pandemic, and as yet nothing similar has been attempted either.
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Date
2024-06-01
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Tshwane University of Technology
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Keywords
Competitive advantage, Corporate branding, Corporate diversity, Corporate innovation, Firm value, Pandemic, Resource-based theory, Sales revenue