Analyzing the Financial Performance of a Major Holding Company in Hong Kong SAR during the 2008-09 Global Financial Crisis and COVID-19 Period: A Comparative Study

Abstract

This paper investigates the financial impacts of the Global Financial Crisis and the 2008 Financial Crisis on firm level financial performance in Hong Kong SAR using regression analysis and two sample t-tests. This study focuses on key financial indicators such as dividend (in $1000s HKD), net gearing, current ratio, net profit (in $1000s HKD), Return on Equity (ROE), EBITDA, net profit margin, earnings per share (EPS), and revenue (in $1000s HKD). The results show that the COVID-19 pandemic had more pronounced and statistically significant effects on firm level metrics compared to the 2008 financial crisis. Notably, during COVID-19, firms experienced a significant decline in profitability metrics such as ROE, EBITDA, EPS, and net profit, while showing an increase in dividend payout and revenue. Conversely, the financial crisis demonstrated limited statistically significant impacts, with only net gearing being the only figure being affected significantly during this period. These findings provide insight to policy-makers and investors, creating a nuanced analysis into the asymmetric effect of different shocks on company performance.