The Impact of Innovation and Covid-19 on Performance of Listed Firms of Pakistan: Challenges and Implications of New Practice

Abstract

The current study aims to analyze the relationship between innovation and covid-19 on the financial performance of the listed firms in Pakistan. The other purpose of the current study is to analyze the challenges and implications of the covid-19 on the performance of the firms. The researcher analyses how the performance of the firms is affected due to innovation and covid-19 in the pandemic situation. This study is new in terms of the variables used in the study. This study used the innovation in which two proxies are used i.e. Research and development and patent count. Secondly, it takes the covid-19 and to analyze the performance of the firms through the ROA and ROE. Most researchers used the pandemic situation to analyze the macroeconomic as well as the tourism industry because these two factors are more affected due to the pandemic situation. But in the current study, the researcher analyses the innovation and the covid-19 on the financial performance of the listed firms of Pakistan. This study used secondary data for the analyses. Data has been collected from the annual reports of the firms. For the covid-19 cases, the data has been collected from the World Health Organization. For the research and development, patent count, ROA and ROE the annual reports of the firms are used. The result of the current study shows that the Research and development of the firms affected the ROA of the firms but not the ROE of the firms. The patent count has affected both the ROA as well as the ROE of the firms. Covid-19 affected negatively the financial performance of listed firms in Pakistan. The limitations and future directions are important to improve the work of researchers as well as improve the quality of the research paper. Limitations of the study are also given by the researcher for future work. The study focuses on the pandemic situation and it shows how the innovation of the companies affects the performance of the companies. So, it provides the information to the managers as well as the policymakers to think about the innovation more as compared to using the previous methods of the sale.