Effect of COVID-19 Outbreak and Corporate Governance on Firm Performance: Empirical Evidence from Pakistan

Authors

  • Dr. Affaf Asghar Butt Department of Business Administration University of the Punjab, Gujranwala Campus
  • Samia Rashid Department of Business Administration University of the Punjab, Gujranwala Campus
  • Dr. Aamer Shahzad Department of Commerce University of the Punjab, Gujranwala Campus
  • Dr. Hafiz Ihsan Ur Rehman Department of Business Administration University of the Punjab, Gujranwala Campus

Abstract

The research examines the role of corporate governance and COVID-19 to determine the firm performance. The data were taken from 110 non-financial firms listed on the Pakistan Stock Exchange from 2010 to 2020. The OLS with year and industry dummies is used to estimate these relationships. The findings confirmed that COVID-19 significantly negatively affects the firm performance. Overall, corporate governance also plays an essential role in investigating the performance of firms. The results show that size and board independence do not affect firm performance, but board diversity has an inverse effect during the pandemic. The dual role of the CEO increased, whereas the CEO dominance lowered the performance in the covid. Ownership concentration and family ownership have positive and negative effects. This study suggests several practical implications based on the findings for investors, managers, and policymakers.     

Keywords: Board structure, ownership structure, CEO power, CEO duality, COVID-19, firm performance.

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Published

2024-06-02

How to Cite

Dr. Affaf Asghar Butt, Samia Rashid, Dr. Aamer Shahzad, & Dr. Hafiz Ihsan Ur Rehman. (2024). Effect of COVID-19 Outbreak and Corporate Governance on Firm Performance: Empirical Evidence from Pakistan. Journal of Business and Management Research, 3(1), 803–820. Retrieved from https://jbmr.com.pk/index.php/Journal/article/view/190