A Note on Boardroom Challenge, Board Effectiveness and Corporate Stewardship During COVID-19

Kaur, Manmeet; Malik, Kunjana; Sharma, Sakshi

doi:10.1177/0972262920987326

Cited by 11 publications

(11 citation statements)

References 17 publications

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“…Trust in the company can also be obtained by improving ESG performance. According to Kaur et al (2021), good stewardship behaviour helps companies to adapt to the external economic environment and create shareholder value. With the external economic environment having changed drastically because of the COVID‐19 pandemic, companies can adapt and overcome these changes with stewardship behaviour.…”

Section: Literature Reviewmentioning

confidence: 99%

Can intellectual capital contribute to financial and non‐financial performances during normal and crisis situations?

Lestari

Adhariani

2022

Bus Strat Dev

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The contribution of intellectual capital (IC) on financial performance have been found in previous studies but whether IC can also be utilised to improve non‐financial performance has been understudied; let alone the contributions in different economic conditions (normal and crisis periods). This study aims to provide empirical findings to answer these issues by defining non‐financial performance in terms of the environmental, social, and governance (ESG) performance and COVID‐19 pandemic to represent the crisis. Non‐financial companies listed on stock exchanges in the Southeast Asia countries that are member of ASEAN (Association of Southeast Asian Nations) were selected as the samples for the research period of 2016–2020. The results show that the IC has a positive association with financial performance but a negative relationship with ESG performance. With the COVID‐19 pandemic as the moderating variable, the results show that the pandemic period is not found to moderate the effect of the IC on financial performance and ESG performance. These results indicate that under normal conditions prior to the economic crisis caused by COVID‐19, companies in Southeast Asia prioritised the use of IC to improve financial performance. Meanwhile, during the COVID‐19 pandemic, companies in the region have not utilised IC to improve their financial and non‐financial performance. The findings that IC affect ESG performance negatively need a serious attention amid the increasing awareness of sustainability and the expected role of corporate in the achievement of the Sustainable Development Goals (SDGs).

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Section: Literature Reviewmentioning

confidence: 99%

Can intellectual capital contribute to financial and non‐financial performances during normal and crisis situations?

Lestari

Adhariani

2022

Bus Strat Dev

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“…Koutoupis, et al [7] reviewed related literature on corporate governance, environmental and social governance and corporate social responsibility during the pandemic, revealing that most previous studies on corporate governance during the pandemic are theoretically based due to insufficient accounting data yielding an inconclusive result and suggested further empirically based studies on corporate governance and the pandemic for better clarification. In addition, Kaur, et al [29] examined the new boardroom challenges posed by the pandemic outbreak, such as virtual boardrooms, IT governance, threats to continuity and sustainability and dynamic and systematic risk management revealing that the introduction of virtual board meetings, quick responses and board effectiveness from companies' managers helped to sustain companies during the pandemic. Jin, et al [30] empirically examined corporate governance structure and performance in the tourism industry during the pandemic and revealed that the pandemic had a greater impact on the performance of tourism companies than other industries.…”

Section: Prior Studies On the Covid -19 Pandemic Corporate Governance...mentioning

confidence: 99%

The implications of the pandemic for the corporate governance, remuneration and sustainability performance of South African listed companies

Benson

Ganda

2023

ijirss

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The study examined the implications of the recent pandemic on the corporate governance, remuneration and corporate sustainability performance of South African listed companies. Data from 42 companies was analyzed using the panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods from 2010-2021. Findings revealed that the pandemic negatively impacted the selected companies. This study revealed that the pandemic had a good impact on some companies and not just bad ones as claimed by previous researchers. Results from COVID -19- related expenses, debt-to-equity ratios and staff costs revealed a negative but significant result in the estimated model. Other variables such as current ratios, net profit margins and board diversity revealed a positive and significant relationship with all the dependent variables. Hence, a very severe implication of the pandemic on the performance of companies is confirmed through COVID -19related expenses, staff costs and directors’ remuneration. These have a very strong negative impact on the future performance, survival, and sustainability of the selected companies. Lastly, a strong relationship between corporate governance and corporate sustainability performance was confirmed as shown by ROA, board size, directors’ remunerations and board diversity. This study provides insight for stakeholders such as governments, directors and policymakers to develop both preventive and proactive policies to protect and guide companies from future similar pandemics. To avert and prevent future negative implications on companies, this study recommends a well- structured scheme for all of the company’s staff, cash reserves and IT governance.

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“…These put constraints on meetings and on many normal managerial activities and can also hamper the effectiveness of internal control mechanisms. This poses many challenges to governance, as according to theories of tunnelling, periods of great uncertainty and tumult create opportunities for insiders to extract private rents at the expense of other stakeholders (Kaur et al , 2021). According to Deloitte (2021), an effective BoD response to business disruption resulting from the pandemic includes the following: management’s risk assessments in the midst of COVID-19; business continuity plans; organisational resilience; development of new digital strategies; enabling of the digital workforce; and communication plans with both internal and external stakeholders. …”

Section: Literature Reviewmentioning

confidence: 99%

Corporate governance in the COVID-19 pandemic: current practices and potential improvement

Alshhadat

Al-Hajaya

2023

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Purpose The purpose of this paper is to analyse the effect of the COVID-19 pandemic on corporate governance and internal control in general. In addition, this paper attempts to develop a new corporate governance model that flexibly addresses conditions like those brought into the business environment by COVID-19. Design/methodology/approach Thirteen semi-structured interviews were conducted with chairpersons, CEOs and directors from companies listed on the FTSE 350. Findings This study suggests a corporate governance model, which we call Eunomia, which we believe will help businesses to navigate the unusual conditions resulting from COVID-19 and similar types of crises that lead to major disruption for businesses and society. The model includes five pillars that support governance, namely, flexibility, IT infrastructure, risk management, internal control and policies and procedures. Practical implications Implications for practice and policymakers. Based on the research outcomes, the authors suggest that the board of directors establishes policies that ensure supply diversity and that businesses do not rely on a single or limited number of suppliers, thereby making themselves vulnerable to supply chain disruption with those suppliers. Originality/value This paper presents an original contribution to the accounting literature relating to corporate governance and internal control systems, specifically in terms of how businesses can optimally operate under uncontrollable conditions resulting from pandemics, and similar situations.

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A Note on Boardroom Challenge, Board Effectiveness and Corporate Stewardship During COVID-19

Cited by 11 publications

References 17 publications

Can intellectual capital contribute to financial and non‐financial performances during normal and crisis situations?

Can intellectual capital contribute to financial and non‐financial performances during normal and crisis situations?

The implications of the pandemic for the corporate governance, remuneration and sustainability performance of South African listed companies

Corporate governance in the COVID-19 pandemic: current practices and potential improvement

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