Financial Impacts of the COVID-19 Pandemic on the Cultural and Creative Industries: Evidence from Taiwan

Liza Lee; Ying-Sing Liu

doi:10.23762/FSO_VOL13_NO3_6

Published : 2025-09-29

Vol. 13 No. 3 (2025)

Financial Impacts of the COVID-19 Pandemic on the Cultural and Creative Industries: Evidence from Taiwan

Liza Lee

https://orcid.org/0000-0002-4710-6123

Ying-Sing Liu

https://orcid.org/0000-0002-3161-2136

DOI: https://doi.org/10.23762/FSO_VOL13_NO3_6

Abstract

In the past, it has been confirmed that the COVID-19 pandemic has had a significant negative impact on the cultural and creative industries (C&CIs), but most of this evidence comes from surveys of small and individual enterprises. To date, no study has focused on a financial review of listed firms. This study examines the impact of the COVID-19 pandemic on the financial and operational status of the C&CIs, focusing on 40 firms listed on the Taiwan Stock Exchange. During the 2015–2023 study period, the five categories of major financial indicators and operational indicators were used to test for the equality of means before and during the COVID-19 pandemic. It was empirically found that during the COVID-19 pandemic, the financial structure, solvency, operating capacity, and profitability of the sample firms changed significantly, but there were no significant changes in cash flows or operational indicators. There has not been a significant deterioration in the financial structure of the digital gaming industry (DGI), which has emphasised digitalisation. Although their profitability improved, they did not find the effect to be as significant as expected. The non-DGI group had significantly increased debt ratios and long-term fund-to-fixed-asset ratios, whereas their profitability decreased significantly. This evidence provides some support for the advantages and robustness of DGI in terms of financial performance during the COVID-19 pandemic. The combination of digital technology and securities market fundraising was beneficial to the development of the C&CIs, which were better able to cope with the risks arising from certain unknown and irresistible major events.

Keywords:

COVID-19, financial indicators, cultural and creative industries, digital game industry, publicly traded company.

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Lee, L., & Liu, Y.-S. (2025). Financial Impacts of the COVID-19 Pandemic on the Cultural and Creative Industries: Evidence from Taiwan. Forum Scientiae Oeconomia, 13(3), 131–155. https://doi.org/10.23762/FSO_VOL13_NO3_6

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