Journal ofAccounting and Investment Vol. 23 No. 3, September 2022 Article Type: Research Paper COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: A Study on Manufacturing Industry in Bangladesh Golam Shahria Abstract Research aims: The primary aim of this study is to examine the effect of the COVID-19 pandemic during and after this pandemic on manufacturing sectors in Bangladesh. In the context mentioned above, some issues are then taken as the specific objectives. Design/Methodology/Approach: The study was conducted on the manufacturing sectors listed under Dhaka Stock Exchange (DSE). The study's target population was 42 manufacturing companies out of 153 listed on Dhaka Stock Exchange (DSE). Four research variables were used to evaluate sample companies' financial performance and financial position. Documentary analysis, descriptive analysis, data normality test, and Wilcoxon Signed–Rank Test were employed to evaluate the hypotheses. The years of annual reports, 2018-2019 to 2020-2021, were utilized for the documentary analysis of sample companies' financial performance and financial position. Research findings: The study's conclusions demonstrated that this pandemic significantly impacted Bangladeshi companies' financial performance (essentially ROA and ROE) at a 5% significance level compared to before the pandemic. In addition, the recovery growth rate of financial performance of sample companies increased optimistically, and the growth of liquidity position of manufacturing companies was also seen in an advantageous position after the COVID-19 pandemic compared to during the COVID-19 pandemic based on Wilcoxon statistical test tool. Theoretical contribution/Originality: The findings of this study can be used as a source of relevant data by investors or future investors for their investment decisions shortly. The findings of this study will also assist the government in determining or preparing the appropriate tax incentive scheme for the impacted industries and whether the correct sector would profit from the tax incentive scheme. Practitioner/Policy implication: Considering that the COVID-19 pandemic has significantly impacted the import process of raw materials for production from China in specific and from other countries generally, the study advised the government of Bangladesh to boost its logistic and financial support for the local facility of raw materials. Research limitation/Implication: More extensive research is projected to be conducted on the recovery growth rate of financial performance in Bangladesh's sub-sector manufacturing industries. Keywords: COVID-19 pandemic; Leverage ratio; Liquidate ratio; Profitability ratio AFFILIATION: Department of Business Administration, BGC Trust University Bangladesh, Chittagong – Cox’s Bazar Hwy, Chandanaish, Bangladesh *CORRESPONDENCE: g.s.parveez@gmail.com DOI:10.18196/jai.v23i3.15542 CITATION: Shahria, G. (2022). COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: A Study on Manufacturing Industry in Bangladesh. Journal of Accounting and Investment, 23(3), 521-545. ARTICLE HISTORY Received: 18 Jul 2022 Revised: 13 Aug 2022 Accepted: 25 Aug 2022 This work is licensed under a Creative Commons Attribution-NonCommercial- NoDerivatives 4.0 International License JAI Website: https://scholar.google.co.id/citations?user=f6JqbQUAAAAJ&hl=en&oi=ao https://www.bgctub-edu.net/php_files/contents/contents.php?cmd=factpage&contid=1&dis_page=brief https://www.bgctub-edu.net/php_files/contents/contents.php?cmd=factpage&contid=1&dis_page=brief https://www.bgctub-edu.net/php_files/contents/contents.php?cmd=factpage&contid=1&dis_page=brief https://www.bgctub-edu.net/php_files/contents/contents.php?cmd=factpage&contid=1&dis_page=brief https://www.bgctub-edu.net/php_files/contents/contents.php?cmd=factpage&contid=1&dis_page=brief mailto:g.s.parveez@gmail.com https://journal.umy.ac.id/index.php/ai/article/view/15542 https://journal.umy.ac.id/index.php/ai/article/view/15542 https://crossmark.crossref.org/dialog/?doi=10.18196/jai.v23i3.15542&domain=pdf Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 522 Introduction The economy of the present world is vulnerable due to unknown diseases, in which the first cases were reported in Wuhan, China, on December 31, 2019. The World Health Organization (WHO) then acknowledged COVID-19 as a pandemic on March 11, 2020. At that time, each government was bound to make various hard and painful decisions to prevent people's lives. The normal life of business activities and functions was also stopped due to the COVID-19 pandemic. Specifically, COVID-19 has had an undesirable impact on Bangladesh's economy by interfering with people's lives and sources of their income. Substantial job losses occurred in all occupational sectors in Bangladesh because of the devastating effects of the coronavirus pandemic. In this case, labour markets were impacted by an economic crisis in more ways than just job losses; real wages also experienced downward pressure. Moreover, Bangladesh experienced the same thing. The pace of fall for Bangladesh's manufacturing sector was remarkably rapid in 2020 as overall wage growth has been declining. As a result, the COVID-19 pandemic has sparked an unprecedented economic catastrophe in Bangladesh and other countries. Due to COVID- 19's expansion, Bangladeshi start up enterprises have also been severely impacted since mid-March 2020 (Shahriar et al., 2021). In addition, most businesses (24%) said they had to stop operating, and 50% said their sales had decreased. Additionally, 60% of new businesses have shut down within the first three months of the lockout, worrying the 1.5 million workers since the loss for 2020 was predicted to be $53 million (Ferdous et al., 2020). The COVID-19 pandemic's effects on Bangladesh's economy include a reduction in the revised tax revenue budget, from 3, 48,069 crores to 2, 65,908 crores Taka in 2019-2020 (Ministry of Finance, 2020). In fact, tax revenue is the prime source of state revenue, or 89.94% of Bangladesh's total budgeted revenue in 2019-2020 (Ministry of Finance, 2020). This tax revenue largely depends on Value-Add Tax (VAT) in Bangladesh, which originated from the manufacturing sector. According to official analysis, numerous businesses kinds would likely experience declining profitability and financial performance due to the economic crisis brought on by the COVID-19 pandemic. Moreover, due to the currency crisis, which began in July 1997, the 1998 Asian financial crisis significantly impacted Asian countries' production, stock markets, and labor markets. South Korea, Thailand, Malaysia, and Indonesia all saw their stock markets crash, and the inflation rate increased by around 12.9%. The currency's depreciation and the deterioration in the economy also comparably influenced Bangladesh. Exports from Bangladesh decreased by 17%, whereas imports from the affected countries only accounted for 11% of total imports. As a result, the nation's FDI and foreign remittances decreased. Consequently, many people in the impacted nations lost their jobs, increasing the unemployment rate (Moudud-Ul-Huq et al., 2020). Furthermore, numerous people around the world are terrified as a result of the latest coronavirus pandemic. The whole financial system, including Bangladesh's, is also Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 523 already in danger. First, most Bangladeshi manufacturers or industries like garments, steel, cement, plastic, electronics, food, medicine, and others have been importing their raw materials from different areas of China. Bangladeshi manufacturers are also deeply concerned about when China may fully reopen in this dire situation. In addition, many Chinese businesses might fail to meet the deadline for shipping goods, which would undoubtedly hurt our regional sectors. Although the impacts of the COVID-19 crisis on Bangladesh’s economy are, as yet, unknown, Bangladesh is likely to experience a recession for the first time since 1975. While remittance inflows typically rise during times of crisis as migrants living abroad send more money to support their families at home, the worldwide character of the COVID-19 crisis will cause remittances to cease. The average household income could decrease by 19% during the crisis (UNICEF Bangladesh, 2020). On the other hand, according to the most recent Asian Development Outlook 2021 report published by the Asian Development Bank (ADB), Bangladesh's gross domestic product (GDP) is predicted to increase by 6.9% in the fiscal year 2022. The growth forecast reflects a robust recovery underpinned by a resurging global economy, robust manufacturing, and successful government recovery initiatives (ADB, 2022). For that reason, this study's primary objective is to investigate the impact of the COVID- 19 pandemic on Bangladesh's manufacturing sectors, comparing before, during, and after the pandemic. The next objective is to discover the industry's financial recovery growth separately. Further, investors, potential investors, and the government can use the findings' results as a source of relevant data. The study also recommends that the government of Bangladesh increase its logistical and financial support for local raw material facilities, considering the COVID-19 pandemic's significant impact on the import process of raw materials for production from China specifically and from other countries generally. History of General Holiday (Lockdown) due to COVID-19 in Bangladesh The first three cases of COVID-19 were discovered in Bangladesh on March 8, 2020. In response, the BGMEA issued instructions on basic preventative measures against COVID-19 for textile companies on March 9. On March 13, the Ministry of Labor and Employment instructed industrial managers to implement reasonable hygiene procedures and print and distribute COVID-19 instructions in workplaces to workers. To stop the spread of COVID-19, the Ministry of Education then issued an order to close all educational institutions on March 16. Also, the first coronavirus death in Bangladesh was reported on March 18. To stop the spread of COVID-19 in Bangladesh due to a surge in COVID-19 cases, the Ministry of Public Administration also issued general holidays from March 26 through April 4 on March 23. A Tk 50 billion stimulus program for the owners of exporting industries hit by COVID-19 was announced by the Bangladeshi government's prime minister on March 25. To help pay for employee salaries and wages, the money could be borrowed from a bank at 2%. On March 26, the Ministries of Roads, Bridges, and Civil Aviation and the Ministries of Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 524 Tourism banned and stopped all forms of domestic transportation and all international flights to all nations, except for the UK and China. After that, BGMEA and BKMEA instructed members to keep factories closed until April 4, 2020. Still, an exception was established for manufacturing facilities producing personal protective equipment (PPE), masks, hand wash, and pharmaceuticals and having export orders. As a result, the entire economic system and the entire employment structure collapsed. Then, the Ministry of Public Administration announced that the general holidays were extended on April 2 through April 9, 2020. The lockdown (general holiday) supposed to conclude on April 4 was prolonged until April 11, then to April 14, then to April 25, and then again to May 5, then to May 16, and finally to May 30, with the government announcing on May 27 that there would be no further extension. The government also highlighted that economic activity must continue to protect people's lives and means of subsistence. Literature Review and Hypothesis Development A mathematical model has been developed using the game theory that shows how people’s responses can affect the spread of a disease during a pandemic. The study revealed that information is the key to inspiring the proper response during a pandemic (Poletti et al., 2015). Also, Tocco et al. (2013) provided a conceptual framework for estimating farm labor and other factor-derived demand and output supply systems. They also studied the effect of market distortions in one market through inefficient pricing and on-demand for other inputs. In addition, Singh and Kaur (2021) stated in his legal framework for researching a post-COVID social world article that the COVID-19 pandemic will increase the debt crisis for various underdeveloped and developing countries. For a country like India with a higher dependent population, macroeconomic restructuring policies then become critical. Financial Reporting Financial reporting is seen as a ritual of erecting and providing information to the audience using “a holy guidance of ceremony,” such as regulations, rules, standards, and producers (Chariri, 2011). Financial reporting is also the process of recording and conveying to the stakeholders their financial activities and performance across specific periods, which accurately portray a company's finances, including its sales, expenses, profits, capital, and cash flow. In this regard, businesses compile accounting data and present their current financial condition in financial reports. In addition, Ahmed and Duellman (2007) and Mendes et al. (2012) identified that providing information about performance, financial situation, and cash flow is the primary goal of producing financial reports. Financial reports also provide projections of future profitability, industry position, and growth by examining resource usage, cash flow, business performance, and the business's financial health. Moreover, Chen et al. (2009) described a valuable strategy for addressing information asymmetry using high-quality accounting data. According to Choi and Pae (2011), the quality of the financial reports is crucial for the company's reliability. Thus, ensuring Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 525 timely and accurate financial reporting and analysis assists stakeholders in making informed decisions for future growth by identifying business opportunities and improving their understanding of the company's performance. The information provided by financial reporting should also comply with regulatory requirements and internally assesses performance to plan and adjust the forecast. Further, financial reporting is compulsory by various acts, regulations, rules, regulatory agencies, debt holders, investors, and other key stakeholders. Hence, investors, creditors, and other stakeholders can learn about a company's creditworthiness and financial integrity from timely financial reports. According to Holland (1999), the financial reporting cycle and public disclosure of financial statements are crucial to corporate governance. Financial Performance According to the accounting glossary, performance measures a business's success over a specific period. Performance is also a comparison of goals set and actual results attained by an individual or group after engaging in an activity (Riswan & Kesuma, 2014). A firm's financial performance is summarized in a financial performance report, assisting different investors and stakeholders in making investment decisions. In addition, the company's financial performance is a measure of its success on the corporate level in terms of income, overall operating costs, debt load, assets, and investment returns (Devi et al., 2020). Various stakeholders' interest is also affected by a firm's financial performance. The stakeholders will monitor the company's financial performance, which is connected to changes in the statement of financial position, profit or loss, or cash flow, for any changes. Besides, the business's financial success is significantly influenced by the management's implementation of organizational goals through policies, strategies, and actions. According to Subramanyam (2014), financial performance pronounces a company's financial condition or situation based on encoded goals, standards, principles, and criteria. Financial Ratio Allad and Maisuria (2015) stated that ratio analysis reveals whether the company has improved or declined over the past few years. According to Harahap (2011), financial ratios are the results of comparing two financial statement items with a meaningful and relevant relationship. A company's financial performance is evaluated by analysing its financial ratios. The best tool to assess a company's financial success is ratios (Rhamadana & Triyonowati, 2016). Innocent et al. (2013) discovered that one of the crucial components of the firm's financial strategy is the successful selection and application of the correct financial ratios. Meanwhile, Fraser and Ormiston (2016) proposed using four different ratios to evaluate a firm's financial success. They were the activity ratio assessing how effectively a company uses its assets, the liquidity ratio gauging how well a company can meet its short-term debt obligations, the solvency ratio, or leverage, assessing how much of its assets are financed by debt, and the profitability ratio, evaluating how well a company can turn a profit. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 526 Liquidity Ratio Liquidity, current liabilities, and asset structure are all interconnected. The amount of cash a company has, the amount of other assets that can be quickly converted into cash, whether the company is profitable or not, the amount of debt that will need to be repaid soon, and the company's capacity to raise additional funds through the sale of securities or borrowing money all affect its level of liquidity (Lacey &Chambers, 2011). In every way, the liquidity ratio is quite significant. It is also now regarded as a necessary criterion for analyzing the liquidity ratio to understand the international company better. Lalithchandra and Rajendhiran (2021) described that analyzing the liquidity ratio assists in making a brave and wise choice that will attract the interest of potential investors. Thus, properly studying the liquidity ratio is crucial for small business developers to develop superior growth. The current ratio has also been frequently used for liquidity measurement of any entity. To compare current assets to current debt, one uses a ratio called the current ratio. The current ratio determines how well the current assets can cover the current obligations (Sari, 2020). Profitability Ratio Profitability will boost a company's worth by giving it a positive outlook or resulting in investors, which can drive up stock prices concerning market value, raising the company's value. According to Sharaf and Haddad (2015), profitability refers to the ability to generate a financial gain, which is the primary objective of any company. Therefore, increasing profitability is crucial since firms will cease to exist without it. On the other hand, the different use of various resources, including people, equipment, and technology, results in profitability and dramatically impacts the research findings (Bromiley & Rau, 2016). Consequently, estimating profits and measuring profits from the prior year is vital. This ratio's components, including cash return on invested capital, gross profit margin, net profit margin, return on asset, return on capital employed, return on equity, return on investment, and return on sales, demonstrate the combined impact of liquidity and the management of assets and debt. Moreover, firms can use two different types of figures to understand the performance of their financial investments when deciding how to allocate their financial resources. The terms return on investment and return on assets refer to the computation used to show financial experts and business executives how a company generates profits. The main distinction between ROE (Return on Equity) and ROA (Return on Asset) relates to how a corporation accounts for debt. In this regard, shareholder equity and the business's total assets will be equal without debt. Logically, its ROE and ROA would also be the same. However, if that business uses financial leverage, its ROE will exceed its ROA. Besides, ROA is a measure of profitability examining the return on a company's assets. A profitability ratio gauges a company's general ability to produce profits using the resources at its disposal. The more profitable a firm is, its value is more significant (Sharaf & Haddad, 2015). ROA also examines management's ability to generate a return Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 527 on the firm's assets and argues that companies with significant assets should be able to generate large amounts of income (Akindele & Odusina, 2015). Meanwhile, Return on Investment (ROI) is a way of measuring value and communicating the entities' value to their governing and stakeholders’ bodies. Botchkarev and Andru (2011) stated that one of the most widely used measures is the return on investment (ROI), and when done correctly, ROI analysis is a potent tool for making wise choices. Leverage Ratio The leverage ratio is one of the most important financial measurements considering the amount of money originating from debt (loans) or evaluating a company's capacity to satisfy its financial obligations. The leverage ratio category is essential since businesses rely on a combination of loans and equity to fund their operations. Leverage ratios also assess the proportionate debt a company has racked up. The debt-to-equity ratio, the equity multiplier, the level of financial leverage, and the consumer leverage ratio are all typical. Pfeiffer et al. (2017) addressed the benefits and drawbacks of implementing a macro-prudential leverage ratio and the relationship between capital and leverage ratios. Their paper proposed that the leverage ratio requirement should also consider the number of capital reserves to function as a macro-prudential policy tool. In addition, Samuels(2014) stated that the leverage ratio had been used to measure capital adequacy. On the other side, this ratio evaluates how much debt is used to finance corporate assets (Fraser & Ormiston, 2016; Sajiyah, 2016). It can also represent the solvency ratio, showing how much money is required to pay all or some of the necessary expenses. This ratio also establishes short-and long-term debt. Long-term debt will impact solvency, whereas short-term debt will affect liquidity. In this case, debtors will be concerned about this ratio, especially long-term creditors (Abbas, 2018). Hypotheses Development Due to the COVID-19 pandemic, most companies worldwide have negatively impacted their economy and the country’s economy. The financial performances of Bangladeshi companies have also been affected by the COVID-19 pandemic. As a result, companies would face a monetary crisis during and after the COVID-19 pandemic. However, the management of the company must continue to make an effort to consider stakeholder interests by being transparent about its financial status. According to stakeholder theory, a company's management must always inform its stakeholders about its operations, including its financial situation, to serve their interests. Besides, Bintang et al. (2019) showed the differences in financial performance throughout the period before and after the financial crisis, particularly the current ratio. Furthermore, Istiningrum (2005) indicated that current ratio measurements of a firm's liquidity ratios significantly decreased during the financial crisis. Karim et al. (2021) also revealed that after the COVID-19 pandemic, the liquidity position and financial stability of Bangladesh's listed banks would deteriorate. However, before this pandemic, the banks' liquidity ratios and financial health were low; they got worse in the second Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 528 quarter of 2020. Most banks also had weak cash positions and liquidity ratios. Therefore, the hypotheses could be framed as follows: H1: The liquidity is negatively affected by the COVID-19 pandemic during the pandemic period, measured using the current ratio. H2: The liquidity position of sample companies increases positively after the COVID-19 pandemic, measured using the growth of the current ratio. Further, it is a general consequence that, during the financial crisis, companies lose their net income daily. Even some companies went to negative income, which means net loss occurred. Due to the people's declining purchasing power and rising production costs, net income dramatically dropped, which significantly reduced a company's profitability. Achim et al. (2021) conducted a study to analyze the level of business performance in reaction to the COVID-19 pandemic on 218 Romanian listed firms of diverse sizes (large and small) and from various business sectors for the period June 30, 2019, to June 30, 2020. To evaluate the business performance, they used the return on equity and return on assets as measurement tools. They discovered that over the studied time, the net earnings of the entire market declined by 37.43%. Also, Shen et al. (2020) stated that the ROA of listed Chinese companies has been reducing due to the significant negative impact of the COVID-19 pandemic on financial performance concerning a decrease in total revenue value. According to Omaliko et al. (2021), the COVID-19 pandemic also adversely impacted the profitability and liquidity of businesses in Nigeria at a 5% significant level. In this regard, the hypotheses could be expressed as follows: H3: The COVID-19 pandemic has a negative effect on profitability during the pandemic period, measured using the ROA and ROE ratios. H4: The profitability of sample companies increases positively after the COVID-19 pandemic, measured using the growth of ROA and ROE ratios. Moreover, the researchers observed during the COVID-19 pandemic that a remarkable decrease in sales revenue would affect the company’s profit and cash sales transactions. Besides, cash collections from outstanding were dramatically reduced during the COVID- 19 pandemic of the companies. Due to a lack of cash to pay debts, this circumstance will significantly affect the company's ability to do so. Additionally, the company's losses from lower sales will have a negative impact on the capital value. Istiningrum (2005) has shown that the leverage ratio damage caused by a global crisis is determined by the debt-to-equity ratio (DER). In addition, an investigation on the factors influencing capital structure over time and the degree of leverage before, during, and after a financial crisis has been conducted in Turkey enterprises (Jermias & Yigit, 2019). Meanwhile, Vo et al. (2021) found that, in general, businesses tended to change their financial structure more quickly when COVID-19 broke out. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 529 H5: The COVID-19 pandemic has a negative effect (increased) on the leverage ratio during the pandemic period, measured using the debt to equity (D/E) ratio. H6: The debt to equity (D/E) ratio of sample companies decreases after the COVID-19 pandemic, measured using the growth of the debt to equity (D/E) ratio. Research Method The research method used in this study was quantitative. This study also used secondary data, meaning they had already been processed and gathered by other persons or organizations. This study's secondary data were collected from the financial reports of sample companies listed on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) from 2019 to 2021. In this research, all the listed companies in Bangladesh were then divided into two sectors: manufacturing and service. However, this study was conducted in the manufacturing sub-sector of Bangladesh. Population and Sample The population of this study was listed companies on Dhaka Stock Exchange (DSE) in 2019. The total population was 153 public companies under the manufacturing sector, divided into ten sub-sectors by DSE. The ten sub-sectors included: 1) cement, 2) ceramic, 3) steel or iron, 4) food and allied, 5) fuel and power, 6) jute, 7) paper and printing, 8) pharmaceuticals, 9) tannery, and 10) textile industry. The nine sub-sectors in this study were used as sample industries except for jute due to a lack of available information. Then, 42 listed companies were selected conveniently for this study. In addition, the time interval of this study was from 2018-2019 to 2020-2021. On March 8, 2020, Bangladesh reported its first coronavirus case. The Government of Bangladesh (GoB) issued a special "general leave" starting on March 26 under the pretext of a "lockdown," and it was extended up until May 30, 2020, in seven separate time slots. After 65 days of lockdown, as of May 31, 2020, Dhaka was back to normal, with no social segregation or health regulations. Nevertheless, from June 2020, the government tried to resume production activities and take some physical distancing measures to continue manufacturing in Bangladesh. Therefore, the financial year 2018- 2019 was designated as before the COVID-19 pandemic, 2019-2020 was designated as during the COVID-19 pandemic, and 2020-2021 was designated as after the COVID-19 pandemic in this study. Although the COVID-19 pandemic is going on, all operational activities are running. With a 95% confidence level between the sample and the population, the 5% threshold of significance was then applied. Research Variables The research variables used in this research are presented in Table 1.The liquidity measurement purpose in most of the research uses this current ratio. The current ratio determines whether the current assets can cover the current obligations. The leverage Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 530 ratio, DE ratio, measures the capacity of capital to fulfil all of its obligations. In this study, the DE ratio was utilized to determine a company's capacity to repay debt, including long-term debt. Here, ROA and ROE are metrics for determining profitability, used to gauge a company's ability to benefit from its efficiency. Table 1 Research Variables Acronym Definition Operationalization Source of data Reference CR Liquidity ratio Current assets to current liabilities Annual reports (Fraser & Ormiston, 2016; Devi et al., 2020) ROE Return on equity Net income to total equity Annual reports (Sehaq, 2019; Devi et al., 2020) ROA Return on asset Net income to total asset Annual reports (Sehaq, 2019; Devi et al., 2020) DE Financial leverage Debt–to–equity ratio Annual reports (Fraser & Ormiston, 2016; Devi et al., 2020) Result and Discussion The research's data were analyzed using descriptive analysis, and several tests were also utilized to compare the performance of Bangladeshi manufacturing firms before and during the country's economic crisis brought on by the COVID-19 pandemic. To choose the statistical tests to apply for the different tests, the data normality test was carried out. The data normality test is an absolute requirement in parametric statistics. If the data is not normally distributed, non-parametric statistics, such as the Wilcoxon signed-rank test, can be used to analyze the data. The data were then analyzed utilizing SPSS version 25. Data Analysis Before and During COVID-19 Pandemic In this research, a descriptive analysis was conducted, as shown in Table 2. Table 2 demonstrates that the current ratio was higher during the COVID-19 pandemic than before the COVID-1 pandemic. Table 2 Descriptive Analysis Results N Minimum Maximum Mean Std. Deviation CR before COVID-19 42 0.53 47.50 3.5083 7.43577 CR during COVID-19 42 0.59 52.70 4.4119 9.70073 ROE before COVID-19 42 -0.20 0.27 0.0749 0.08202 ROE during COVID-19 42 -0.36 0.32 0.0483 0.11001 ROA before COVID-19 42 -0.05 0.27 0.0498 0.06281 ROA during COVID-19 42 -0.20 0.27 0.0336 0.07487 DE before COVID-19 42 0.00 2.81 0.4785 0.68665 DE during COVID-19 42 0.00 3.80 0.5615 0.86833 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 531 The mean score of current ratios before the COVID-19 pandemic was 3.5083 with a minimum of 0.53 and a maximum of 47.50, while the mean score of current ratios during the COVID-19 pandemic was 4.4119 with a minimum of 0.59 and a maximum 52.70. In other words, there was a wide variation in the CR ratio during the COVID-19 pandemic. Additionally, it was discovered that there was a decline in the mean ROE and ROA value, indicating that the COVID-19 pandemic situation had a negative impact on the company's financial performance. The mean score of ROE before the COVID-19 pandemic was 0.0749 with a minimum score of -0.20 and a maximum score of 0.27, while the mean score of ROE during the COVID-19 pandemic was 0.0483 with a minimum score of -0.36 and a maximum score 0.32. The decline in the mean score of ROE before to during the COVID-19 pandemic was 0.0266 or 2.66%. Before the COVID- 19 pandemic, the mean ROA value was 0.0498, while it was 0.0336 during the pandemic. Thus, the ROA declined by 0.0162 or 1.62%. In this case, the rate of return is the core part of the financial performance of any organization. The results showed that this integral part of the manufacturing sector was seriously affected due to the COVID-19 pandemic in Bangladesh. Comparing the COVID- 19 pandemic to the period before, the debt-to-equity ratio increased. The mean score of the DE ratio before the COVID-19 pandemic was 0.4785 with a minimum score of 0.00 and a maximum score of 2.81, while the mean score of the DE ratio during the COVID-19 pandemic was 0.5615 with a minimum score of 0.00 and a maximum score of 3.80. Based on changes in the DE ratio value, this rise in mean DE value suggests that the COVID-19 pandemic had a detrimental effect on the company's financial structure. It also means that the long-term or non–current liabilities increased compared to stockholders’ equity during the COVID-19 pandemic. Data Normality Test Table 3 shows Shapiro-Wilk normality test results. This test found that the data were not normally distributed due to the significant value of each observation, as shown in Table 3, being smaller than 0.05. Table 3 Tests of Normality Kolmogorov-Smirnova Shapiro-Wilk Statistic Df Sig. Statistic df Sig. CR before COVID-19 0.362 42 0.000 0.357 42 .000 CR during COVID-19 0.369 42 0.000 0.392 42 .000 ROE before COVID-19 0.126 42 0.089 0.943 42 .036 ROE during COVID-19 0.228 42 0.000 0.859 42 .000 ROA before COVID-19 0.185 42 0.001 0.850 42 .000 ROA during COVID-19 0.224 42 0.000 0.813 42 .000 DE before COVID-19 0.243 42 0.000 0.665 42 .000 DE during COVID-19 0.260 42 0.000 0.651 42 .000 Note: CR is the current ratio; ROE is the return on equity; ROA is the return on equity; DE is the debt-to-equity ratio. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 532 Therefore, the data could not be tested using a parametric statistical test. Thus, a non- parametric statistical test was done using the Wilcoxon signed rank. Wilcoxon Signed-Rank Test Table 4 demonstrates that the tie values for the CR ratio, ROE ratio, ROA ratio, and DE ratio were all 0 (zero), indicating no tie between the values for these variables before and during the COVID-19 pandemic.The study also demonstrates that during the COVID- 19 pandemic, 15 companies increased their current ratio, while 27 companies decreased it. The negative and positive ranks at the N-values of 15 and 27, respectively, proved this. According to negative ranks at the N-value of 30 and positive ranks at 12, it was discovered that during the COVID-19 pandemic, 30 companies' ROE values decreased, and 12 companies' ROE values increased. Table 4 Ranks N Mean Rank Sum of Ranks CR during COVID-19 - CR before COVID-19 Negative Ranks 27a 19.26 520.00 Positive Ranks 15b 25.53 383.00 Ties 0c Total 42 ROE during COVID-19 - ROE before COVID-19 Negative Ranks 30d 21.83 655.00 Positive Ranks 12e 20.67 248.00 Ties 0f Total 42 ROA during COVID-19 - ROA before COVID-19 Negative Ranks 29g 24.53 711.50 Positive Ranks 13h 14.73 191.50 Ties 0i Total 42 DE during COVID-19 - DE before COVID-19 Negative Ranks 20j 17.90 358.00 Positive Ranks 22k 24.77 545.00 Ties 0l Total 42 Table 4 further reveals that during the COVID-19 pandemic, 29 companies decreased their ROA, while 13 companies increased it, as indicated by negative ranks at the N- value of 29 and positive ranks at the N-value of 13. According to the DE ratio, during the COVID-19 pandemic, 22 companies had a gain in the DE ratio, and 20 companies saw a reduction in the DE ratio, as evidenced by positive ranks at the N-value of 22 and negative ranks at the N-value of 20. Table 5 Test Statistics CR during COVID-19 - CR before COVID- 19 ROE during COVID-19 - ROE before COVID-19 ROA during COVID-19 - ROA before COVID-19 DE during COVID-19 - DE before COVID-19 Z -0.857b -2.545b -3.251b -1.169c Asymp. Sig. (2-tailed) 0.392 0.011 0.001 0.242 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 533 Table 5 displays that the ROE and ROA values before and during the COVID-19 pandemic differed significantly, as observed from the Asymp. According to the Wilcoxon signed- rank test results, the sig. values (2-tailed) of 0.011 and 0.001 were <0.05. On the other hand, as can be observed from the Asymp, there were no discernible differences in the values of the CR ratio and DE ratio before and during the COVID-19 pandemic. In addition, values of sig. (2-tailed) of 0.392 and 0.242 were both greater than 0.05. Therefore, H3 was accepted, whereas H1 and H5 were rejected. Data Analysis Comparing During and After COVID-19 pandemic A descriptive analysis was also conducted on the financial performance growth, as shown in Table 6. Table 6 shows that the recovery growth of the current ratio after the COVID-19 pandemic rapidly decreased compared to during the COVID-19 pandemic. The mean score of current ratios during the COVID-19 pandemic was 0.4583 with a minimum of -0.33 and a maximum of 19.40, while the mean of current ratio growth after the COVID-19 pandemic was 0.0180 with a minimum of -0.57 and a maximum 0.81. Thus, it is indicated that huge working capital was used after the COVID-19 effect, which proved the wide variation in the growth of recovery CR ratio during the COVID-19 pandemic compared to after the COVID-19 pandemic. Table 6 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR Growth during COVID-19 42 -0.33 19.40 0.4583 2.99778 CR Growth after COVID-19 36 -0.57 0.81 0.0180 0.25314 ROE Growth during COVID-19 42 -4.89 0.50 - 0.5229 1.04013 ROE Growth after COVID-19 36 -5.47 10.41 0.6389 2.48991 ROA Growth during COVID-19 42 -4.69 0.40 - 0.5514 1.00294 ROA Growth after COVID-19 36 -5.23 10.14 0.5767 2.27230 DE Growth during COVID-19 42 -0.60 39.30 1.0026 6.05952 DE Growth after COVID-19 36 -0.48 11.75 0.3118 1.99468 Table 6 also presents a swift increase in the mean score of ROE and ROA. The mean score of ROE during the COVID-19 pandemic was -0.5229 with a minimum score of -4.89 and a maximum score of 0.50, while the mean score of ROE after the COVID-19 pandemic was 0.6389 with a minimum score of -5.47and a maximum score 10.41. Hence, ROE's recovery growth rate during the COVID-19 pandemic compared to after the COVID-19 pandemic was 1.1618, indicating that recovery growth was 116.18%. In addition, the mean score of ROA recovery growth during the COVID-19 pandemic was - 0.5514, whereas the mean score of ROA after the COVID-19 pandemic was 0.5767. It was also found that the ROA recovery growth rate amplified by 112.81%. Moreover, the recovery growth of the debt-to-equity ratio decreased by 0.6882 after the COVID-19 pandemic compared to during the COVID-19 pandemic. The mean score of the DE ratio during the COVID-19 pandemic was 1.0026 with a minimum score of -0.60 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 534 and a maximum score of 39.30, while the mean score of the DE ratio after the COVID-19 pandemic was 0.3118 with a minimum score of -0.48 and a maximum score of 11.75. This decline signifies that the COVID-19 pandemic positively affected the company's financial structure. Therefore, manufacturing companies reduced their non–current liabilities after the COVID-19 pandemic. Table 7 Tests of Normality Kolmogorov-Smirnov Shapiro-Wilk Statistic df Sig. Statistic df Sig. CR Growth during COVID-19 0.482 36 0.000 0.191 36 0.000 CR Growth after COVID-19 0.171 36 0.009 0.890 36 0.002 ROE Growth during COVID-19 0.282 36 0.000 0.558 36 0.000 ROE Growth after COVID-19 0.185 36 0.003 0.789 36 0.000 ROA Growth during COVID-19 0.281 36 0.000 0.582 36 0.000 ROA Growth after COVID-19 0.160 36 0.020 0.807 36 0.000 DE Growth during COVID-19 0.491 36 0.000 0.190 36 0.000 DE Growth after COVID-19 0.404 36 0.000 0.289 36 0.000 Table 7 displays Shapiro-Wilk normality test results. As in Table 7, the research data were not normally distributed. The significance value of each observation was less than 0.05, as shown in Table 7. Therefore, a parametric statistical test could not be performed on the data. As a result, the Wilcoxon signed rank was used in a non- parametric statistical test. Table 8 Ranks N Mean Rank Sum of Ranks CR Growth after COVID-19 - CR Growth during COVID-19 Negative Ranks 18a 19.00 342.00 Positive Ranks 18b 18.00 324.00 Ties 0c Total 36 ROE Growth after COVID-19 ROE Growth during COVID-19 Negative Ranks 12d 14.25 171.00 Positive Ranks 24e 20.63 495.00 Ties 0f Total 36 ROA Growth after COVID-19 ROA Growth during COVID-19 Negative Ranks 11g 14.82 163.00 Positive Ranks 25h 20.12 503.00 Ties 0i Total 36 DEGrowth after COVID-19 DE Growth during COVID-19 Negative Ranks 22j 18.95 417.00 Positive Ranks 14k 17.79 249.00 Ties 0l Total 36 Wilcoxon Signed-Rank Test for Growth Analysis Table 8 reveals that ties values for growth of CR ratio, ROE, ROA, and DE ratio were 0 (zero), meaning no growth values for CR ratio, ROE, ROA, and DE ratio between during and after the COVID-19 pandemic. According to negative ranks at the N-value of 18 and Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 535 positive ranks at the N-value of 18, 18 companies practiced a drop in their growth of the current ratio, and 18 companies practiced an increase in their growth of the current ratio after the COVID-19 pandemic. It was also found that the 24 companies experienced an increase in growth of ROE value, while 12 companies experienced a decrease in ROE after the COVID-19 pandemic, as shown by positive ranks at the N-value of 24 and negative ranks of 12. Table 8 also shows that the 25 companies practiced an increase in the growth of ROA, whereas 11 companies practiced a decrease in ROA after the COVID-19 pandemic, as revealed by positive ranks at the N-value of 25 and the negative ranks at the N-value of 11. Based on the DE ratio, the DE ratio of 22 companies decreased, while 20 companies practiced a rise in the DE ratio after the COVID-19 pandemic, as indicated by negative ranks at the N-value of 22 and positive ranks at the N-value of 14. Table 9 Test Statistics CR Growth after COVID- 19 - CR Growth during COVID-19 ROE Growth after COVID-19 ROE Growth during COVID- 19 ROA Growth after COVID- 19 ROA Growth during COVID-19 DE Growth after COVID-19 DE Growth during COVID-19 Z -0.141b -2.545c -2.671c -1.320b Asymp. Sig. (2-tailed) 0.888 0.011 0.008 0.187 Table 9 presents that the recovery growth of ROE and ROA values during and after the COVID-19 pandemic were significantly different according to the Wilcoxon signed-rank test, as observed from the Asymp. Sig. (2-tailed) values of 0.011 and 0.008, respectively, which were <0.05. On the other hand, as can be observed from the Asymp, there were no discernible differences in the values of the CR ratio and DE ratio during and after the COVID-19 pandemic. Values of sig. (2-tailed) of 0.888 and 0.187 were both greater than 0.05. Therefore, H4 was accepted, whereas H2 and H6 were rejected. Impact of COVID-19 Industry Wise: Cement Industry Cement Industry Table 10 shows that the four cement industrial companies out of seven experienced an increase in the mean score of the current ratio from 0.7636 to 0.7985 during COVID-19, while the mean score of ROE reduced from 0.0918 to 0.0744. In addition, the mean score of ROA decreased from 0.0316 to 0.0290, and the mean DE ratio improved from 0.9603 to 1.3154. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 536 Table 10 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 4 0.53 0.88 .7636 0.15717 CR during COVID-19 4 0.59 0.94 .7985 0.15158 ROE before COVID-19 4 0.06 0.12 .0918 0.02470 ROE during COVID-19 4 0.05 0.10 .0744 0.02478 ROA before COVID-19 4 0.01 0.05 .0316 0.01650 ROA during COVID-19 4 0.01 0.05 .0290 0.02467 DE before COVID-19 4 0.22 2.44 .9603 1.01668 DE during COVID-19 4 0.23 3.80 1.3154 1.68031 Ceramic Industry Table 11 displays that the three ceramic industrial companies out of five practiced a decline in the mean score of the current ratio from 1.4218 to 1.3276 during COVID-19, while the mean score of ROE decreased from 0.0647 to 0.0518. Besides, the mean score of ROA reduced from 0.0351 to 0.0180, and the mean DE ratio decreased from 0.3552 to 0.3404 Table 11 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 3 0.71 1.85 1.4218 0.62170 CR during COVID-19 3 0.76 1.69 1.3276 0.50107 ROE before COVID-19 3 0.01 0.13 0.0647 0.05673 ROE during COVID-19 3 0.01 0.11 0.0518 0.05093 ROA before COVID-19 3 0.01 0.06 0.0351 0.02725 ROA during COVID-19 3 0.00 0.03 0.0180 0.01159 DE before COVID-19 3 0.12 0.71 0.3552 0.30832 DE during COVID-19 3 0.12 0.69 0.3404 0.30651 Steel Industry Table 12 reveals that the six iron industrial companies out of nine practiced a reduction in the mean score of the current ratio from 1.6726 to 1.6325 during COVID-19, while the mean score of ROE decreased from 0.0723 to 0.0286. Also, the mean score of ROA reduced from 0.0238 to 0.0122, and the mean DE ratio increased from 0.7102 to 0.7498 during the COVID-19 pandemic. Table 12 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 6 1.03 3.82 1.6726 1.11228 CR during COVID-19 6 0.97 3.81 1.6325 1.11977 ROE before COVID-19 6 -0.05 0.14 0.0723 0.06537 ROE during COVID-19 6 -0.05 0.07 0.0286 0.03910 ROA before COVID-19 6 -0.03 0.06 0.0238 0.03106 ROA during COVID-19 6 -0.02 0.06 0.0122 0.02622 DE before COVID-19 6 0.06 2.68 0.7102 0.98024 DE during COVID-19 6 0.06 3.21 0.7498 1.21357 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 537 Food Industry Table 13 shows that the six food and Allied industrial companies out of twenty-one practiced an increase in the mean score of the current ratio from 2.1363 to 2.1580 during COVID-19, while the mean score of ROE decreased from 0.1218 to 0.1129. The mean score of ROA reduced from 0.0828 to 0.0673, and the mean DE ratio decreased from 0.0774 to 0.0748 during the COVID-19 pandemic. Table 13 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 6 1.35 2.97 2.1363 0.57509 CR during COVID-19 6 1.33 2.96 2.1580 0.65221 ROE before COVID-19 6 0.02 0.26 0.1218 0.10990 ROE during COVID-19 6 0.02 0.32 0.1129 0.13419 ROA before COVID-19 6 0.01 0.18 0.0828 0.07368 ROA during COVID-19 6 0.01 0.17 0.0673 0.07522 DE before COVID-19 6 0.02 0.19 0.0774 0.05684 DE during COVID-19 6 0.02 0.19 0.0748 0.06055 Paper and Printing Industry Table 14 presents that the three paper and printing industrial companies out of six experienced an increase in the mean score of the current ratio from 1.0813 to 1.2715 during COVID-19, while the mean score of ROE decreased from 0.0829 to 0.0422. The mean score of ROA increased from 0.7204 to 0.8291, and the mean value of the DE ratio decreased from 0.0307 to 0.0154 during the COVID-19 pandemic. Table 14 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 3 0.65 1.50 1.0813 0.42598 CR during COVID-19 3 0.59 1.77 1.2715 0.60922 ROE before COVID-19 3 0.01 0.20 0.0829 0.09983 ROE during COVID-19 3 0.01 0.08 0.0422 0.03989 ROA before COVID-19 3 0.07 1.36 0.7204 0.64516 ROA during COVID-19 3 0.06 1.65 0.8291 0.79299 DE before COVID-19 3 0.01 0.07 0.0307 0.03618 DE during COVID-19 3 0.00 0.03 0.0154 0.01432 Pharmaceuticals Industry Table 15 displays that the four pharmaceuticals industrial companies out of fifteen experienced an increase in the mean score of the current ratio from 5.2215 to 5.7767 during COVID-19, while the mean score of ROE decreased from 0.1253 to 0.1240. The mean score of ROA slightly increased from 0.0985 to 0.0986, and the mean value of the DE ratio increased from 0.1692 to 0.2121 during the COVID-19 pandemic. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 538 Table 15 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 4 1.08 12.93 5.2215 5.29609 CR during COVID-19 4 1.17 14.53 5.7767 6.03089 ROE before COVID-19 4 0.02 0.21 0.1253 0.08517 ROE during COVID-19 4 0.02 0.19 0.1240 0.08284 ROA before COVID-19 4 0.01 0.16 0.0985 0.07436 ROA during COVID-19 4 0.01 0.17 0.0986 0.07427 DE before COVID-19 4 0.02 0.41 0.1692 0.17193 DE during COVID-19 4 0.02 0.58 0.2121 0.25624 Foul and Power Industry Table 16 shows that the three fuel and power industrial companies out of twenty-three practiced a decline in the mean score of the current ratio from 19.8470 to 16.0946 during the COVID-19, while the mean score of ROE increased from 0.1532 to 0.1608. The mean score of ROA increased from 0.1343 to 0.1480, and the DE ratio decreased from 0.9407 to 0.9309 during the COVID-19 pandemic. Table 16 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 3 2.67 47.51 19.8470 24.18621 CR during COVID-19 3 2.24 37.21 16.0946 18.57754 ROE before COVID-19 3 0.06 0.27 0.1532 0.10870 ROE during COVID-19 3 0.03 0.28 0.1608 0.12223 ROA before COVID-19 3 0.02 0.27 0.1343 0.12870 ROA during COVID-19 3 0.01 0.27 0.1480 0.13333 DE before COVID-19 3 0.00 2.81 0.9407 1.62264 DE during COVID-19 3 0.00 2.78 0.9309 1.60091 Textile Industry Table 17 presents that the ten textile industrial companies out of fifty-eight experienced an increase in the mean score of the current ratio from 2.1262 to 7.1113 during COVID- 19, while the mean score of ROE decreased from 0.0262 to -0.0080. The mean score of ROA decreased from 0.0159 to 0.0023, and the mean value of the DE ratio increased from 0.4490 to 0.5875 during the COVID-19 pandemic. Table 17 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 10 0.89 8.73 2.1262 2.37030 CR during COVID-19 10 0.82 52.70 7.1113 16.17818 ROE before COVID-19 10 -0.20 0.15 0.0262 0.09690 ROE during COVID-19 10 -0.15 0.08 -0.0080 0.07068 ROA before COVID-19 10 -0.05 0.11 0.0159 0.04057 ROA during COVID-19 10 -0.06 0.07 0.0023 0.03352 DE before COVID-19 10 0.02 0.83 0.4490 0.34840 DE during COVID-19 10 0.02 1.54 0.5875 0.52475 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 539 Tannery Industry Table 18 indicates that the three textile industrial companies out of six experienced a decline in the mean score of the current ratio from 4.0842 to 3.0202 during COVID-19, while the mean score of ROE decreased from 0.0776 to -0.0990. The mean score of ROA decreased from 0.0579 to -0.0482, and the mean value of the DE ratio increased from 0.1049 to 0.1169 during the COVID-19 pandemic. Table 18 Descriptive Statistics N Minimum Maximum Mean Std. Deviation CR before COVID-19 3 1.44 8.47 4.0842 3.82166 CR during COVID-19 3 1.38 5.68 3.0202 2.32765 ROE before COVID-19 3 0.02 0.11 0.0776 0.05113 ROE during COVID-19 3 -0.36 0.06 -0.0990 0.22910 ROA before COVID-19 3 0.01 0.10 0.0579 0.04494 ROA during COVID-19 3 -0.20 0.05 -0.0482 0.13414 DE before COVID-19 3 0.00 0.29 0.1049 0.16149 DE during COVID-19 3 0.03 0.30 0.1169 0.15610 Analysis and Discussion The above results indicate that H1 and H5 were not supported, representing that the liquidity ratio (current ratio) and leverage ratio (DE) did not significantly change before or during the COVID-19 pandemic. The results of the descriptive statistics analysis revealed an increase in the current ratio mean score and an increase in the DE mean score. These changes were insignificant, as shown by the Wilcoxon signed-rank test results. In their study, Devi et al. (2020) found an increase in the leverage ratio during COVID-19 in Indonesia. After COVID-19 emerged, Karim et al. (2021) reported that the listed banks' liquidity position and financial soundness had declined. In the middle of March 2020, Bangladesh began to address the COVID-19 pandemic issue. However, if the COVID-19 pandemic cannot be stopped immediately, Bangladesh's economy will gradually deteriorate due to lower revenues from taxation, such as the Value Added Tax (VAT). VAT is the core tax revenue for the Bangladesh government, mainly collected from manufacturing companies in Bangladesh. People’s purchasing power hardly decreased during the COVID-19 pandemic; as a result, the accounts receivable increased, and the current ratio also increased. According to the study, a significant decline in a company's net income, rate of return, and cash flow from cash sales transactions significantly impacted its capacity to pay its debts since there was insufficient cash to cover such payments. Most manufacturing companies also faced problems covering all operational costs and suffered losses. Additionally, the study's findings indicated no discernible difference in the DE ratio. According to Rofikoh(2005), an increase in the DE ratio compared to before the crisis indicated a drop in the financial performance of publicly traded companies. The study looked into whether this pandemic significantly affected businesses' returns, indicating their profitability (ROE and ROA), which means H3 was accepted. The reduction in sales Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 540 would impact the decline in profits if the company could still not reduce its operating costs or other costs not directly related to operations but were nonetheless included in the company's profit value. Istiningrum (2005) also stated that service companies’ returns on assets (ROA) were much lower than before during the financial crisis. Besides, Devi et al. (2020) reported a decrease in public companies' liquidity and profitability ratios during the COVID-19 pandemic. Moreover, the recovery growth rate of manufacturing companies' financial performance in Bangladesh increased well. The study results revealed that the H2 and H6 were rejected, indicating no significant differences in the recovery growth of CR ratio and DE ratio after the COVID-19 pandemic compared to during the COVID-19 pandemic as per the Wilcoxon signed-rank test result. After June 30, 2020, the government tried to resume operational activities of the manufacturing sector and took some measures to maintain the health and safety of the labor force involved in the production industries. A large amount of working capital has been used after the resume of the operation of manufacturing activities. Thus, the CR ratio decreased due to the significant working capital used. This study also proved that the recovery growth rate of ROE and ROA increased optimistically. Thus, it was exposed that the H4 was accepted, stating significant differences in the recovery growth of ROE ratio and ROA ratio after the COVID-19 pandemic compared to the during COVID-19 pandemic based on Wilcoxon signed-rank test result. This result also signified that sample manufacturing companies generated more cash revenue and acquired the ability to pay the debt. As a result, compared to during the COVID-19 pandemic, the debt-to-equity ratio decreased after the COVID-19 pandemic. According to the descriptive analysis findings, each industry sector's liquidity, leverage, and profitability ratio values changed in diverse ways. Among the five sectors out of nine that saw a rise in liquidity were cement, pharmaceuticals, food and allied, paper and printing, and textile. The remaining four industries decreased liquidity ratios, such as ceramics, iron, fuel and power, and tannery. The industry experienced a decrease in leverage ratio in four of nine industries, such as ceramics, food and allied, fuel and power, paper, and printing. Meanwhile, the rest of the five manufacturing industries experienced increased leverage ratios, such as cement, iron, pharmaceuticals, tannery, and textile. All selected industries except the fuel and power industry of manufacturing experienced a decrease in profitability. The study also confirmed that profitability was seriously affected during the COVID-19 pandemic in the tannery, iron, and textile industries. During the COVID-19 crisis, people’s food, home goods, and healthcare requirements will not diminish. The study results showed that the negative impact on financial performance was comparatively less in these sub-sectors. According to Hadiwardoyo (2020), the business sectors affected by the current COVID-19 pandemic the most depend on crowds, such as tourism and tourist-related industries like hotels, mass transit, and tertiary product enterprises whose sales depend on public savings funds and real estate. Bartik et al. (2020) also discovered that businesses had widely varying beliefs about the likely duration of COVID-related disruptions. In addition, businesses in the Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 541 health sector reportedly make money from various goods, including masks, hand sanitizers, soaps, disinfectants, and related items. Conclusion The COVID-19 pandemichas sparked an unanticipated economic catastrophe in Bangladesh's and global economies. An estimated 24% of companies said they would have to discontinue operating, and 50% said their revenue decreased. About 60% of startup businesses also closed down during the three months of lockdown (Ferdous et al., 2020). The study's findings revealed that during the COVID-19 pandemic, listed public companies' liquidity and leverage ratios increased, but their profitability ratios decreased. However, the liquidity (CR) and leverage (D/E) ratios before and during the COVID-19 pandemic did not differ significantly, according to the Wilcoxon Signed-Rank test, although there was a substantial variation in the ROE and ROA ratios for the public corporations. It was also found that 30 and 29 sample companies out of 42 showed negative ranks in the case of ROE and ROA, respectively, during the COVID-19 pandemic. In this case, the manufacturing sector returned to its financial performance after the COVID-19 pandemic. The expected growth rate of recovery of financial performance in the manufacturing sector might be achieved. The study results also uncovered a decrease in liquidity (CR) ratio and leverage (D/E) ratio but an increase in profitability (ROE and ROA) ratio of the listed sample companies after the COVID-19 pandemic. It might be caused by a large amount of working capital used in their production and payment of non–current liabilities, creating a positive image of companies’ capital structure. Based on the Wilcoxon Signed Rank Test, it was found that there was a substantial difference in the recovery growth rate of profitability (ROE and ROA) ratio between during and after the COVID-19 pandemic. Nevertheless, there was no significant difference in the recovery growth rate of liquidity (CR) ratio and leverage (D/E) ratio between during and after the COVID-19 pandemic based on the Wilcoxon Signed–Rank Test. Moreover, it was exposed that 24 sample companies and 25 sample companies out of 36 showed positive ranks in the case of ROE and ROA, respectively, after the COVID-19 pandemic. The sector that experienced an increase in liquidity ratio and leverage ratios were the cement sector, food sector, paper and printing sector, steel sector, pharmaceutical sector, textile sector, and tannery companies. In contrast, the sectors that practiced a reduction in the profitability ratio, liquidity ratio, and leverage ratios were the ceramic sector, steel sector, food sector, paper and printing sector, foul and power sector, and tannery sector during the COVID-19 pandemic. The study also found that profitability was highly affected during the COVID-19 pandemic in the tannery, steel/iron, and textile industries. In addition, it is noted that all of the sample manufacturing sectors except the foul and power sectors suffered decreased profitability during COVID-19 in Bangladesh. Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 542 The findings of this study can be used as a source of pertinent data by investors or future investors to help them make wise investment decisions. The findings of this study will also assist the government in determining if it is essential to provide the appropriate tax incentives for the impacted industries and whether the correct sector would profit from the tax incentive scheme. Further, more extensive research is anticipated to be conducted on the recovery growth rate after the COVID-19 financial performance in Bangladesh's sub-sector manufacturing industries. References Abbas, D. S. (2017). Pengaruh Current Ratio, Account Receivable Turnover, Inventory Turnover, Total Asset Turnover dan Debt to Equity terhadap Return on Asset (Pada Perusahaan manufaktur sub sektorotomotif dan komponen yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2011-2014). Competitive JurnalAkuntansi Dan Keuangan, 2(1), 55-72. https://doi.org/10.31000/competitive.v2i1.465 Achim, M. V., Safta, I. L., Văidean, V. L., Mureșan, G. M., & Borlea, N. S. (2021). The impact of covid-19 on financial management: evidence from Romania. Economic Research-EkonomskaIstraživanja, 35(1), 1807–1832. https://doi.org/10.1080/1331677x.2021.1922090 Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2–3), 411– 437. https://doi.org/10.1016/j.jacceco.2007.01.005 Akindele, A. J. & Odusina, A. O. (2015). Working Capital Management and Firm Profitability: Evidence from Nigerian Quoted Companies. Research Journal of Finance and Accounting, 6(7), 148-153. Retrieved from https://www.iiste.org/Journals/index.php/RJFA/article/view/21604 Allad, I., & Maisuria, D. M. H. (2015). ‘Ratio Analysis’ an Accounting Technique of Analysis and Interpretation of Financial Statements. International Journal of Research in Humanities & Social Sciences, 3(2), 50-54. Asian Development Bank (ADB). (2022). Asian Development Outlook (ADO) 2022. https://www.adb.org/what-we-do/economic-forecasts/april- 2022/subregions#accordion-2-1. Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656–17666. https://doi.org/10.1073/pnas.2006991117 Bintang, F. M., Malikah, A., & Afifudin, A. (2019). Pengaruh opini audit tahun sebelumnya, debt default, rasio likuiditas, rasio leverage terhadap opini audit going concern. E_Jurnal Ilmiah Riset Akuntansi, 8(10), 98–115. Retrieved from http://riset.unisma.ac.id/index.php/jra/article/view/4387 Botchkarev, A., & Andru, P. (2011). A Return on Investment as a Metric for Evaluating Information Systems: Taxonomy and Application. Interdisciplinary Journal of Information, Knowledge, and Management, 6, 245–269. https://doi.org/10.28945/1535 Bromiley, P., & Rau, D. (2015). Operations management and the resource based view: Another view. Journal of Operations Management, 41(1), 95–106. https://doi.org/10.1016/j.jom.2015.11.003 https://doi.org/10.31000/competitive.v2i1.465 https://doi.org/10.1080/1331677x.2021.1922090 https://doi.org/10.1016/j.jacceco.2007.01.005 https://www.iiste.org/Journals/index.php/RJFA/article/view/21604 https://www.adb.org/what-we-do/economic-forecasts/april-2022/subregions#accordion-2-1 https://www.adb.org/what-we-do/economic-forecasts/april-2022/subregions#accordion-2-1 https://doi.org/10.1073/pnas.2006991117 http://riset.unisma.ac.id/index.php/jra/article/view/4387 https://doi.org/10.28945/1535 https://doi.org/10.1016/j.jom.2015.11.003 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 543 Chariri, A. (2011). Financial reporting practice as a ritual: understanding accounting within institutional framework. Journal of Economics, Business, and Accountancy Ventura, 14(1), 89–106. https://doi.org/10.14414/jebav.v14i1.22 Chen, S., Wang, Y., & Zhao, Z. (2009). Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China. Journal of Accounting, Auditing & Finance, 24(4), 589–620. https://doi.org/10.1177/0148558x0902400405 Choi, T. H., & Pae, J. (2011). Business Ethics and Financial Reporting Quality: Evidence from Korea. Journal of Business Ethics, 103(3), 403–427. https://doi.org/10.1007/s10551-011-0871-4 Devi, S., Warasniasih, N. M. S., & Masdiantini, P. R. (2020). The Impact of COVID-19 Pandemic on the Financial Performance of Firms on the Indonesia Stock Exchange. Journal of Economics, Business, & Accountancy Ventura, 23(2), 226 – 242. https://doi.org/10.14414/jebav.v23i2.2313 Ferdous, M. Z., Islam, M. S., Sikder, M. T., Mosaddek, A., Zegarra-Valdivia, J. A., & Gozal, D. (2020). Knowledge, attitude, and practice regarding COVID-19 outbreak in Bangladesh: An online-based cross-sectional study. PloS one, 15(10), e0239254. https://doi.org/10.1371/journal.pone.0239254 Fraser, L. M., & Ormiston, A. (2016). Understanding Financial Statements, 11th Edition. Pearson. Hadiwardoyo, W. (2020). Kerugian ekonomi nasional akibat pandemi Covid-19. Baskara Journal of Business & Enterpreneurship, 2(2), 83–92. Retrieved from https://jurnal.umj.ac.id/index.php/baskara/article/view/6207 Harahap, S. S. (2011). Analisis kritis atas laporan keuangan. Jakarta: PT Raja Grafindo Persada. Holland, J. (1999). Financial Reporting, Private Disclosure and the Corporate Governance Role of Financial Institutions. Journal of Management & Governance, 3, 161–187. https://doi.org/10.1023/A:1009991609633 Innocent, E. C., Mary, O. I., & Matthew, O. M. (2013). Financial Ratio Analysis as a Determinant of Profitability in Nigerian Pharmaceutical Industry. International Journal of Business and Management, 8(8). https://doi.org/10.5539/ijbm.v8n8p107 Istiningrum, A. A. (2005). Perbandingan kinerja keuangan perusahaan jasa yang terdaftar di BEJ sebelum dan selama krisis moneter. Jurnal Pendidikan Akuntansi Indonesia, 4(1), 117–33. https://doi.org/10.21831/jpai.v4i1.1776 Jermias, J., & Yigit, F. (2019). Factors affecting leverage during a financial crisis: Evidence from Turkey. Borsa Istanbul Review, 19(2), 171–185. https://doi.org/10.1016/j.bir.2018.07.002 Karim, Md. R., Shetu, S. A., & Razia, S. (2021). COVID-19, liquidity and financial health: empirical evidence from South Asian economy. Asian Journal of Economics and Banking, 5(3), 307–323. https://doi.org/10.1108/ajeb-03-2021-0033 Lacey, N. J., & Chambers, D. R. (2010). Modern Corporate Finance: Theory & Practice, 6th edition. Hayden-McNeil Publishing. Lalithchandraa B. N., & Rajendhiranb, D. N. (2021). Liquidity Ratio: An Important Financial Metrics. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(2), 1113–1114. https://doi.org/10.17762/turcomat.v12i2.1129 Mendes, C. A., Rodrigues, L. L., & Esteban, L. P. (2012). Evidence of earnings management using accruals as a measure of accounting discretion. Tékhne, 10(1), 3–14. https://doi.org/10.1016/s1645-9911(12)70002-6 Ministry of Finance. (2020). Budget Speech, National Budget of Bangladesh 2019 -2020. Retrieved from https://mof.gov.bd/site/page/591b7120-945c-4b88-9bd5-3447963f6249. Moudud-Ul-Huq, S., Akter, R., & Biswas, T. (2020). Impact of Financial Crisis on Credit Risk: Pre- and Post-financial Crises in an Emerging Economy. FIIB Business Review, 9(2), 118–132. https://doi.org/10.1177/2319714520923952 https://doi.org/10.14414/jebav.v14i1.22 https://doi.org/10.1177/0148558x0902400405 https://doi.org/10.1007/s10551-011-0871-4 https://doi.org/10.14414/jebav.v23i2.2313 https://doi.org/10.1371/journal.pone.0239254 https://jurnal.umj.ac.id/index.php/baskara/article/view/6207 https://doi.org/10.1023/A:1009991609633 https://doi.org/10.5539/ijbm.v8n8p107 https://doi.org/10.21831/jpai.v4i1.1776 https://doi.org/10.1016/j.bir.2018.07.002 https://doi.org/10.1108/ajeb-03-2021-0033 https://doi.org/10.17762/turcomat.v12i2.1129 https://doi.org/10.1016/s1645-9911(12)70002-6 https://mof.gov.bd/site/page/591b7120-945c-4b88-9bd5-3447963f6249 https://doi.org/10.1177/2319714520923952 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 544 Omaliko, E. L., Amnim, A., Okeke, P. C., & Obiora, F. C. (2021). Impact of Covid-19 Pandemic on Liquidity and Profitability of Firms in Nigeria. International Journal of Academic Research in Business and Social Sciences, 11(3), 1331-1344. https://doi.org/10.6007/ijarbss/v11-i3/9229 Pfeiffer, L., Holub, L., Pithart, Z., & Hodula M. (2017). Leverage Ratio and its Impact on the Resilience of the Banking Sector and Efficiency of Macroprudential Policy. Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, 67(4), 277-299. Poletti, P., Ajelli, D. M., & Merler, D. S. (2015). The Fifteenth Bellman Prize. Mathematical Biosciences. Rhamadana, R. B. & Triyonowati (2016). Analisis rasio keuangan untuk menilain kinerja keuangan pada PT. H. M. Sampoerna Tbk. Jurnal Imu dan Riset Manajemen, 5(7), 1–18. Retrieved from http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/view/841 Riswan, R., & Kesuma, Y. F. (2014). Analisis Laporan Keuangan sebagai dasar dalam Penilaian Kinerja Keuangan PT. Budi Satria Wahana Motor. Jurnal Akuntansi Dan Keuangan, 5(1). https://doi.org/10.36448/jak.v5i1.449 Rofikoh, I. (2005). Pengaruh Krisis Moneter Terhadap Kinerja Perusahaan Publik di Bursa Efek Jakarta. Journal of Accounting and Investment, 2(2), 87-104. Retrieved from https://journal.umy.ac.id/index.php/ai/article/view/618 Sajiyah, I. (2016). Pengaruh current ratio, debt to equity ratio dan return on investment terhadap harga saham perusahaan food and baverages. Akademika, 14(1), 32–39. Retrieved from https://jurnal.stieimalang.ac.id/index.php/JAK/article/view/43 Samuels, S. (2014). The challenges of the leverage ratio. Journal of Risk Management in Financial Institutions, 7(3), 231-238. Retrieved from https://hstalks.com/article/3578/the- challenges-of-the-leverage-ratio/ Sari, D. I. (2020). Pengaruh Current Rasio Dan Debt to Equity Ratio Terhadap Harga Saham Perusahaan Otomotif. Jurnal Riset Akuntansi & Keuangan Dewantara, 3(1), 66–77. https://doi.org/10.26533/jad.v3i1.522 Sehaq, S. (2019). Analisis Profitabilitas PT. BRI Syariah Periode 2009-2018 (Dilihat dari Pengaruh Financing to Deposit Ratio dan Non Performing Financing Terhadap Return on Asset). EKSISBANK (Ekonomi Syariah dan Bisnis Perbankan), 3(2), 119-130. https://doi.org/10.37726/ee.v3i2.66 Shahriar, M. S., Islam, K. M. A., Zayed, N. M., Hasan, K. B. M. R., & Raisa, T. S. (2021). The Impact of COVID-19 on Bangladesh’s Economy: A Focus on Graduate Employability. The Journal of Asian Finance, Economics and Business, 8(3), 1395–1403. https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.1395 Sharaf R. F., & Haddad, F. S. (2015). The Relationship between Working Capital Management and Profitability for Industrial Companies Listed in Amman Stock Exchange. Jordan Journal of Business Administration, 11(2), 5009-523. Retrieved from https://journals.ju.edu.jo/JJBA/article/view/9466 Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The Impact of the COVID-19 Pandemic on Firm Performance. Emerging Markets Finance and Trade, 56(10), 2213– 2230. https://doi.org/10.1080/1540496x.2020.1785863 Singh, N., & Kaur, A. (2021). The COVID‐19 pandemic: Narratives of informal women workers in Indian Punjab. Gender, Work & Organization, 29(2), 388–407. https://doi.org/10.1111/gwao.12766 Subramanyam, K. R. (2014). Financial statement analysis. McGraw Hill Education. Tocco, B., Bailey, A., & Davidova, S. (2013). The Theoretical Framework and Methodology to Estimate the Farm Labour and Other Factor-Derived Demand and Output Supply Systems. https://doi.org/10.6007/ijarbss/v11-i3/9229 http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/view/841 https://doi.org/10.36448/jak.v5i1.449 https://journal.umy.ac.id/index.php/ai/article/view/618 https://jurnal.stieimalang.ac.id/index.php/JAK/article/view/43 https://hstalks.com/article/3578/the-challenges-of-the-leverage-ratio/ https://hstalks.com/article/3578/the-challenges-of-the-leverage-ratio/ https://doi.org/10.26533/jad.v3i1.522 https://doi.org/10.37726/ee.v3i2.66 https://doi.org/10.13106/JAFEB.2021.VOL8.NO3.1395 https://journals.ju.edu.jo/JJBA/article/view/9466 https://doi.org/10.1080/1540496x.2020.1785863 https://doi.org/10.1111/gwao.12766 Shahria COVID-19 Pandemic's Effect on Performance and Acceleration of Performance Recovery: … Journal of Accounting and Investment, 2022 | 545 UNICEF Bangladesh. (2020). Tackling The Covid-19 Social and Economic Crisis in Bangladesh: Providing universal, lifecycle social security transfers to protect lives and bolster economic recovery. Retrieved from https://www.unicef.org/bangladesh/en/reports/tackling-covid-19- social-and-economic-crisis-bangladesh Vo, T. A., Mazur, M., & Thai, A. (2022). The impact of COVID-19 economic crisis on the speed of adjustment toward target leverage ratio: An international analysis. Finance Research Letters, 45, 102157. https://doi.org/10.1016/j.frl.2021.102157 https://www.unicef.org/bangladesh/en/reports/tackling-covid-19-social-and-economic-crisis-bangladesh https://www.unicef.org/bangladesh/en/reports/tackling-covid-19-social-and-economic-crisis-bangladesh https://doi.org/10.1016/j.frl.2021.102157