In this paper we examine how the financial performance of telecommunications firms is affected by the COVID-19 pandemic, and investigate the role of capital expenditures in this relationship. The full sample consists of 383 unique telecommunications firms from 72 countries. Empirical models are estimated using ordinary least squares regression with the Driscoll–Kraay standard errors method. We find that the financial performance of telecommunications firms, on average, decreased slightly during the pandemic period. However, firms with higher capital expenditures have increased their financial performance in the pandemic era. We attribute this evidence to fewer agency problems and managerial myopia, since managers investing to meet demand surge in uncertainty may prioritize the long-term sustainability of their firms. We further find that telecommunications firms that have been most adversely affected by the repercussions of COVID-19 are those with lower capital expenditures operating in countries with less economic development and weaker institutional environments. Our main findings are robust to potential endogeneity issues, reverse causality, and alternative dependent variables. The findings have implications for company managers, investors, regulatory bodies, and policymakers.
Keyword: corporate investment; Covid-19; financial performance; pandemic; performance; telecommunications
Название публикации (dc.title) | The effects of the investment decisions of telecommunications firms on their financial performance during the COVID-19 pandemic |
Автор/ы (dc.contributor.yazarlar) | İlhan Çam, Nisa Özge Önal Tuğrul, Kevser Şimşek, Kamil Karaçuha, Ertuğrul Karaçuha, Gökhan Özer |
Вид публикации (dc.type) | Makale |
Язык (dc.language) | İngilizce |
Год публикации (dc.date.issued) | 2023 |
Национальный/Международный (dc.identifier.ulusaluluslararasi) | Uluslararası |
Источник (dc.relation.journal) | Empirical Economics |
Номер (dc.identifier.issue) | 5 |
Том/№ (dc.identifier.volume) | 66 |
Страница (dc.identifier.startpage) | 2007-2047 |
ISSN/ISBN (dc.identifier.issn) | ISSN: 0377-7332; Online ISSN: 1435-8921 |
Издатель (dc.publisher) | Springer |
Базы данных (dc.contributor.veritaban) | Web of Science Core Collection |
Базы данных (dc.contributor.veritaban) | Springer |
Базы данных (dc.contributor.veritaban) | Scopus |
Вид индекса (dc.identifier.index) | SSCI |
Вид индекса (dc.identifier.index) | Scopus |
Импакт-фактор (dc.identifier.etkifaktoru) | 3,2 / 2022-WOS / Son 5 yıl: 2,6 |
Резюме (dc.description.abstract) | In this paper we examine how the financial performance of telecommunications firms is affected by the COVID-19 pandemic, and investigate the role of capital expenditures in this relationship. The full sample consists of 383 unique telecommunications firms from 72 countries. Empirical models are estimated using ordinary least squares regression with the Driscoll–Kraay standard errors method. We find that the financial performance of telecommunications firms, on average, decreased slightly during the pandemic period. However, firms with higher capital expenditures have increased their financial performance in the pandemic era. We attribute this evidence to fewer agency problems and managerial myopia, since managers investing to meet demand surge in uncertainty may prioritize the long-term sustainability of their firms. We further find that telecommunications firms that have been most adversely affected by the repercussions of COVID-19 are those with lower capital expenditures operating in countries with less economic development and weaker institutional environments. Our main findings are robust to potential endogeneity issues, reverse causality, and alternative dependent variables. The findings have implications for company managers, investors, regulatory bodies, and policymakers. |
Резюме (dc.description.abstract) | Keyword: corporate investment; Covid-19; financial performance; pandemic; performance; telecommunications |
URL (dc.rights) | https://link.springer.com/article/10.1007/s00181-023-02525-4 |
DOI (dc.identifier.doi) | 10.1007/s00181-023-02525-4 |
Факультет / Институт (dc.identifier.fakulte) | İktisadi ve İdari Bilimler Fakültesi |
Кафедра (dc.identifier.bolum) | İşletme Bölümü |
Автор(ы) в учреждении (dc.contributor.author) | Gökhan ÖZER |
№ регистрации (dc.identifier.kayitno) | BL3239462A |
Дата регистрации (dc.date.available) | 2023-12-05 |
Заметка (Год публикации) (dc.identifier.notyayinyili) | WOS, Scopus Early Access: 23 November 2023; Published: May 2024 |
Wos No (dc.identifier.wos) | WOS:001118054200003 |
Тематический рубрикатор (dc.subject) | corporate investment |
Тематический рубрикатор (dc.subject) | Covid-19 |
Тематический рубрикатор (dc.subject) | financial performance |
Тематический рубрикатор (dc.subject) | pandemic |
Тематический рубрикатор (dc.subject) | performance |
Тематический рубрикатор (dc.subject) | telecommunications |