The market reaction to syndicated loan announcements before and during the COVID-19 pandemic and the role of corporate governance

Tampakoudis, Ioannis; Noulas, Athanasios G.; Kiosses, Nikolaos

doi:10.1016/j.ribaf.2021.101602

Cited by 16 publications

(6 citation statements)

References 110 publications

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“…It was concluded that good corporate governance could help to mitigate the negative effects of COVID-19 on stock price volatility and trading volume, but it may help alleviate the impact of COVID-19 on stock returns. Nevertheless, the results of this study reinforce the conclusion of [115], that a firm's ability to adapt to changes in the external environment (COVID-19) might be hindered by a rigid and strict CG framework. The argument of this study, however,-through a strategic viewpoint-goes beyond the "traditionally" considered CG factors, such as board size, gender diversity, a link between CEO compensation and shareholder return, or CEO duality.…”

Section: Comparison Of the Results Of Esg And Covid-19 Researchsupporting

confidence: 83%

Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period

2022

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Recent complex changes of the organizational environment urge the boards of directors of energy corporations to step up quickly in crises (e.g., COVID-19) and foster innovation, to seize new strategic opportunities (e.g., environmental, social, and governance (ESG) investments). The purpose of the study is to provide in-depth analyses of ESG projects during the COVID-19 pandemic, through the lens of an emerging theoretical approach, dynamic corporate governance (CG). The research is built on the multi-case study method at large energy companies and energy startups. The research goal was to empirically analyze theoretical opportunities of dynamic board behavior in this research context. The major findings show that ESG projects faced serious challenges in the fast-changing organizational environment generated by COVID-19, which induced board intervention regarding innovation, networks, and organizational changes. This study is among the first to offer a novel theoretical viewpoint, by integrating CG and strategic management theories, besides the already dominant financial and reporting aspects. From a practical perspective, our conclusions might direct the attention of boards of directors toward innovation, networks, and organizational changes, in order to enable adaptation in turbulent times and increase sustainability in the social and environmental dimensions.

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Section: Comparison Of the Results Of Esg And Covid-19 Researchsupporting

confidence: 83%

Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period

2022

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“…The literature on market reactions in various conditions is reportedly increasing among various scholars. Based on these literature reviews, market reactions are associated with war [21][22][23][24][25], loan announcements, corporate governance [26], and audit reports [27]. In the coal industry, environmental policy also affected market reactions negatively [28].…”

Section: Literature Reviewmentioning

confidence: 99%

Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market

Lesmana,

Yudaruddin

2024

jour

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The purpose of the study is to investigate the market reaction to COVID-19 and the policy response in the ASEAN stock market. The subjects of this study are companies located in ASEAN countries (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) as many as 2349 companies. The basic methodology of this research uses the event study method using CAR (Cumulative Abnormal Return) as a measure of market reaction. We also regressed the effect of firm characteristics (SIZE, ROA, LEV, CASH, AGE) on market reaction. According to the paper’s results, the ASEAN stock market reacted negatively to the announcement of COVID-19 cases and deaths. In this condition, the markets in Malaysia, the Philippines, and Vietnam had the worst reactions to the pandemic outbreak. Moreover, the market negatively reacted to the policy response emphasizing the spread of this disease. We also find that several sectors also provided a negative reaction to COVID-19 and the policy response in the ASEAN stock market. In addition, the company’s characteristics significantly influenced the encouragement of market reactions to the pandemic and regulations. Practical implications were provided for policymakers regarding the need to consider market conditions in interventions in the spread of the health crisis. Investors should also consider the characteristics involved in handling the COVID-19 pandemic.

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“…Moreover, GCG principles could help a corporation elevate its ability to respond to oscillations in the external surroundings of the business by taking appropriate measures (Le and Nguyen 2022). According to Tampakoudis et al (2022), CG mechanisms pertain differently to borrowers' overplus before and after the COVID-19 pandemic (Tampakoudis et al 2022). Nurdiani and Anas (2022) indicated that GCG and risk management had significant effects on business performance during the COVID 19 pandemic (Nurdiani and Anas 2022).…”

Section: Corporate Governancementioning

confidence: 99%

An Investigation of the Link between Major Shareholders’ Behavior and Corporate Governance Performance before and after the COVID-19 Pandemic: A Case Study of the Companies Listed on the Iranian Stock Market

Pourmansouri

Mehdiabadi

Shahabi

et al. 2022

JRFM

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One of the basic functions of establishing corporate governance (CG) in companies is improving performance and increasing value for shareholders. Expanding the company’s value will ultimately increase the shareholders’ wealth. Therefore, it is natural for shareholders to seek to improve their performance and increase the company’s value. If CG mechanisms cannot perform this function in companies, they do not have the necessary efficiency and effectiveness and, therefore, cannot improve the efficiency of companies. This article investigatedthe connection between the power of major shareholders and the modality of CG of companies listed on the Iranian capital market before and after the COVID-19 pandemic. The statistical sample of the research included120 companies listed on the Tehran Stock Exchange for the selected period from 2011 to 2021. The results showed that the concentration of ownership is harmful to adopting corporate governance (GCG) practices. In particular, the high level of voter ownership concentration weakens the corporate governance system (CGS). The results of this study, which was conducted using panel analysis, revealed that the concentration of ownership impairsthe quality of CGS, and major shareholders cannot challenge the power of the main shareholder; it alsonegatively affected the quality of businessboards, both during and before the COVID-19 pandemic. The competitiveness and voting rights of the major shareholders negatively affectedthe quality of board composition before and after the COVID-19 pandemic. The concentration of voter ownership also negatively affected the quality of CGS, both during and before COVID-19, and the competitiveness and voting rights of major shareholders before COVID-19. This concentration positively affected the quality of CGS after the COVID-19 pandemic.

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The market reaction to syndicated loan announcements before and during the COVID-19 pandemic and the role of corporate governance

Abstract: Graphical abstract

Cited by 16 publications

References 110 publications

Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period

Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period

Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market

An Investigation of the Link between Major Shareholders’ Behavior and Corporate Governance Performance before and after the COVID-19 Pandemic: A Case Study of the Companies Listed on the Iranian Stock Market

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