Financial resilience of Spanish wineries during the COVID-19 lockdown
International Journal of Wine Business Research
ISSN: 1751-1062
Article publication date: 8 February 2023
Issue publication date: 16 May 2023
Abstract
Purpose
This study aims to focus on the impact of COVID-19 on the Spanish wine sector and the financial resilience of Spanish wineries in the period 2019–2020.
Design/methodology/approach
The data set contains 355 limited companies of the Spanish wine sector which were active in the period 2019–2020. The explanatory variables used are size and age of the company, exports, subsidies and gender distribution in the workforce. The financial statements of the companies are treated as compositional data, using log-ratios for asset structure, leverage, margin, turnover and debt maturity. The first-difference estimator is used for the panel-data model relating the differences in the log-ratios between 2020 and 2019 to the explanatory variables.
Findings
In average terms, margin and turnover have significantly worsened between 2019 and 2020, while debt maturity has increased. A larger firm size, a greater age, a higher share of women in the workforce and subsidies have made wineries more resilient between 2019 and 2020.
Originality/value
To the best of the authors’ knowledge, this is the first financial statement analysis of the impact of COVID-19 in the winery sector.
Keywords
Acknowledgements
Funding: This article was supported by the Spanish Ministry of Science and Innovation/AEI/10.13039/501100011033 and by ERDF A way of making Europe [grant number PID2021-123833OB-I00]; the Spanish Ministry of Health [grant number CIBERCB06/02/1002]; and the Government of Catalonia [grant numbers 2017SGR656, 2017SGR386, 2017SGR155]. The funding sources did not participate in the design or conduct of the study, the collection, management, analysis or interpretation of the data, nor the preparation, review or approval of the manuscript.
Citation
Arimany-Serrat, N., Farreras-Noguer, M.À. and Coenders, G. (2023), "Financial resilience of Spanish wineries during the COVID-19 lockdown", International Journal of Wine Business Research, Vol. 35 No. 2, pp. 346-364. https://doi.org/10.1108/IJWBR-03-2022-0012
Publisher
:Emerald Publishing Limited
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