Abstract

Purpose: Research on socioeconomic uncertainty plays an important role in helping companies cope with future uncertainties. This study aims to examine the relationship between socio-economic uncertainty through pandemics such as COVID-19, Ebola, Avian flu, and Swine flu and the firm performance of retail companies. The research will help examine the positive or negative impact of socioeconomic uncertainty on the retail industry. Research design, data and methodology: Data were collected from 158 retail enterprises listed on the Vietnamese stock exchange from 2004 to 2023. The study uses the system-generalized method of moments (SGMM) model to handle the endogeneity phenomenon. Results: The research results show that socio-economic uncertainty has a negative impact on the firm performance of retail companies. In addition, the study also shows the effect of control variables such as firm size, leverage, beta, and revenue growth on firm performance. Conclusions: From the research results, the authors also provide some theoretical and practical implications to help companies improve firm performance when facing socio-economic uncertainty. Additionally, the author gives recommendations to improve the firm’s performance in retail companies: developing comprehensive risk management plans, (2) supply chain diversification, (3) strengthening their financial capacity and resource reserves, and (5) enhancing customer relations.