Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2022, No. 4, Article 3, Year of publication: 13, December, 2022
The effect of the COVID-19 pandemic on the profitability of agricultural companies: Experience from Bosnia and Herzegovina


Teodora Tica, PhD*, Dragana Đorđević, PhD**

*Assistant, University of Novi Sad, Faculty of Economics Subotica, Department for Accounting and Business Finance,  **Teaching Associate, University of Banja Luka, Faculty of Economics, Department for Accounting and Business Finance



This study is intended to illustrate the theoretical and empirical implications of the Covid-19 crisis on profitability. Research was performed using sample of 33 active companies operating between 2016 and 2021 in Bosnia and Herzegovina, forming 198 observations. Using the approach of panel regression, an empirical investigation was completed. The evaluation of a fixed-effect model indicated a positive and statistically significant influence of the coronavirus pandemic on profitability. The results supported the curiosity of the agricultural industry in Bosnia and Herzegovina, predicting that it would be one of few sectors that have not experience a decline in activity and earnings, despite the coronavirus crisis and economic recession. The findings of this paper could assist companies in developing effectiveness and risk governance in future crisis, considering that agriculture sector has played a crucial role in supplying the population with essential groceries, as well as other legal entities engaged in processing activities at a time of turbulent trends of prices and quantities on the world market.

Keywords: Covid-19, profitability, Bosnia and Herzegovina, agricultural, panel analysis

DOI: 10.7251/FIN2204033T

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