Pandemic Resilience in Czech's Big Four Firms

Covar, Eliska (2024): Pandemic Resilience in Czech's Big Four Firms.

Abstract

This study undertakes a meticulous examination of Czech's Big Four accounting firms, spanning the critical years from 2018 to 2021. This period was marked by the unprecedented challenges imposed by the COVID-19 pandemic. A rigorous analytical approach was employed, encompassing a comprehensive evaluation of essential financial ratios, with a specific focus on profitability ratios, and performance indicators. The research methodology included the utilization of specialized financial tools and data analysis techniques. Deloitte and PwC emerged as exemplars, consistently exhibiting substantial enhancements in their financial performance throughout the study period. In contrast, Ernst & Young (EY) encountered significant challenges, while KPMG's financial trajectory displayed noteworthy fluctuations. These findings underscore the paramount significance of adaptability, resilience, and strategic foresight in effectively navigating volatile economic landscapes. It is important to acknowledge certain limitations within this study. Notably, the analysis solely relied on profitability ratios of the companies under examination. This research offers indispensable insights for the accounting industry. It provides a roadmap for firms to not only endure but thrive in the face of adversity and evolving market dynamics.

• Item Type: MPRA Paper
• Language: English
• Keywords: Accounting, Resilience, Big Four, Czech, COVID-19, Pandemic
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M40 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting

References

Accenture. (2020). COVID-19: A Catalyst for Digital Transformation in Financial Services. Retrieved from https://www.accenture.com/us-en/insights/financial-services/coronavirus-digital-transformation

Arend, R. J. (2013). Ethics-focused dynamic capabilities: A small business perspective. Small Business Economics, 41(1), 1–24.

Ashraf, B. N. (2020). Stock markets' reaction to COVID-19: Cases or fatalities? Research in International Business and Finance, 54, 101249.

Ashmos, D.P., Duchon, D. & McDaniel Jr, R.R. (2000). Organizational Responses to Complexity: The Effect on Organizational Performance. Journal of Organizational Change Management, 13(6), 577-595.

Battisti, M., & Deakins, D. (2017). The relationship between dynamic capabilities, the firm’s resource base and performance in a post-disaster environment. International Small Business Journal, 35(1), 78–98.

Gazilas, E. T. (2023). Financial Assessment Of Greece's Top 10 Energy Enterprises Amid The Covid-19 Pandemic. Finance & Accounting Research Journal, 5(9), 271-286. https://doi.org/10.51594/farj.v5i9.568

Gazilas, E. T. (2024). An Econometric Analysis Of European Online Purchases And Economic-Banking Dynamics. International Journal of Advanced Economics, 6(1), 1-11. https://doi.org/10.51594/ijae.v6i1.707

Gazilas, E. T. (2024). An empirical analysis on the impact of labour market regulations on uninsured employment in Greece. https://mpra.ub.uni-muenchen.de/121311/

Gazilas, E. T. (2024). Does Urban Fixed-Line Telecommunication Density Influence Profitability and Operational Efficiency in Greece's Telecommunications Industry?. Finance, Accounting and Business Analysis (FABA), 6(2), 228-239. https://www.unwe.bg/doi/FABA/2024.2/FABA.2024.2.11.pdf

Gazilas, E. T. (2024). Economic Factors Influencing Homicide Rates: A European Perspective. Journal of Applied Economic Research, 23(2), 258-278. https://journalaer.ru/en/archive/journal/300/article/2717/

Gazilas, E. T. (2024). Factors Influencing Life Expectancy in Low-Income Countries: A Panel Data Analysis. Journal of Applied Economic Research, 23(3), 580-601. https://journalaer.ru/en/archive/journal/302/article/2744/

Gazilas, E. T. (2024). Urban Fixed-Line Telecommunication Density and Its Influence on Financial Outcomes in Greece's Leading Telecom Firms. https://mpra.ub.uni-muenchen.de/122531/

Gazilas, E. T., & Vozikis, A. (2023). An Empirical Analysis on the Impact of Market Concentration on the Financial Performance of General Private Clinics in Greece. https://mpra.ub.uni-muenchen.de/121234/

Gazilas, E. T., & Vozikis, A. (2024). The impact of market concentration on the financial performance of general private clinics in Greece. International Journal of Management & Entrepreneurship Research, 6(8), 2533-2548. https://doi.org/10.51594/ijmer.v6i8.1381

Gazilas, E. T., Belesis, N., & Kampouris, C. (2025). The Big Four Premium: Are Audit Fees a Matter of Size, Reputation, or Complexity?. https://mpra.ub.uni-muenchen.de/123383/

Brynjolfsson, E., Horton, J. J., Ozimek, A., Rock, D., Sharma, G., & TuYe, H. Y. (2020). COVID-19 and Remote Work: An Early Look at US Data. Retrieved from https://www.nber.org/papers/w27344

Caruana, A., Ewing, M.T. & Ramaseshan. (2002). Effects of Some Environmental Challenges and Centralization on the Entrepreneurial Orientation and Performance of Public Sector Entities. Service Industries Journal, 22(2), 43-58.

Deloitte. (2020). COVID-19: Managing Supply Chain Risk and Disruption. Retrieved from https://www2.deloitte.com/global/en/pages/risk/articles/covid-19-coronavirus-supply-chain-disruption.html

Deloitte. (2021). About Us. Retrieved from https://www2.deloitte.com/global/en/about/about-deloitte.html

EY. (2020). COVID-19: How to Lead in a Crisis. Retrieved from https://www.ey.com/en_gl/covid-19

European Commission. (2021). Accounting and auditing in Czech. Retrieved from https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/accounting-and-auditing-in-eu/country-specific-information/accounting-and-auditing-czech_en

He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of COVID-19 on stock markets. Economic and Political Studies, 8(3), 275-288.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization (13th ed.). Cengage Learning.

IMF. (2020). World Economic Outlook, October 2020: A Long and Difficult Ascent. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020

KPMG. (2021). About Us. Retrieved from https://home.kpmg/xx/en/home/about.html

McGee, J., Khavul, S., Harrison, D., & Perez-Nordtvedt, L. (2012). When the going gets tough, the tough get going entrepreneurially: The relationship between environmental hostility, entrepreneurial orientation, entrepreneurial self-efficacy and firm performance (summary). Frontiers of Entrepreneurship Research, 32(5), 16.

Miller, D. & Friesen, P.H. (1983). Strategy-Making and Environment: The Third Link. Strategic Management Journal, 4(2), 221-235.

OECD. (2020). OECD Economic Outlook, June 2020. Retrieved from https://www.oecd-ilibrary.org/economics/oecd-economic-outlook/volume-2020/issue-1_0cee7b21-en

PwC. (2020). About PwC Czech. Retrieved from https://www.pwc.gr/en/about-us.html

PwC. (2021). PwC Global Annual Review 2020. Retrieved from https://www.pwc.com/gx/en/about/global-annual-review-2020.html

Rasiah, R., Ng, Y. K., & Cheong, K. C. (2023). Mediating and moderating effects of social networks and business environment on the relationship between entrepreneurial orientation and sustainable competitive advantage among small and medium Malaysian firms in Cambodia. Asian Journal of Technology Innovation, 1-22.

Rosenbusch, N., Rauch, A. & Bausch, A. (2013). The Mediating Role of Entrepreneurial Orientation in the Task Environment-Performance Relationship: A Meta-Analysis. Journal of Management, 39(3), 633-659.

Scherer, R.F., Adams, J.S. & Carley, S.S. (1989). Role of Entrepreneurship in Corporate Renewal. Academy of Management Review, 14(3), 510- 523.

Shirokova, G., Bogatyreva, K., Beliaeva, T., & Puffer, S. (2016). Entrepreneurial orientation and firm performance in different environmental settings: contingency and configurational approaches. Journal of Small Business and Enterprise Development, 23(3), 703-727.

Shane, S. & Venkataraman, S. (2000). The Promise of Entrepreneurship as a Field of Research Academy of Management Review, 25(1), 217-226.

SOEL. (2021). About SOEL. Retrieved from https://www.soel.gr/en/o-s-o-l-2.html.

Wennekers, S. & Thurik, R. (1999). Linking Entrepreneurship and Economic Growth. Small Business Economics, 13(1), 27-56.

World Bank. (2020). Global Economic Prospects, June 2020. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/33748/9781464815537.pdf.

World Health Organization. (2020). Coronavirus Disease (COVID-19) Pandemic. Retrieved from https://www.who.int/emergencies/disease/novel-coronavirus-2019.

Zahra, S. A. (2020). International entrepreneurship in the post-COVID world. Journal of World Business, 101143.