The Impact of Covid-19 on the Performance of Chinese Online-Educational Industry

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The outbreak of the COVID-19 was like a catastrophe, rapidly sweeping the world in early 2020. In order to prevent the large-scale spread of the epidemic, the Chinese government restricted people's movement after the outbreak of COVID-19, which has a substantial negative impact on the economic condition overall. This study selects 25 listed online education companies in China as a sample and investigates the impact of COVID-19 on those firms' performance. We find that the epidemic harms Chinese online-educational firms' ROE but positively impacts Tobin's Q. As robustness checks, we also perform unit root tests, add dummy variables, test additional control variables, introduce interaction terms, and utilize the fixed-effects model. These robustness check results are consistent with the main finding of this paper, except that the interaction term indicates the epidemic negatively impacts those firms' Tobin's Q. Although the epidemic negatively impacts the performance of Chinese online educational companies, we are optimistic about its long-term development. These findings in the present study shed light on the impact of COVID-19 on the Chinese online-educational industry and provide short-term and long-term investment suggestions for investors.

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Review of Integrative Business and Economics Research

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