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The COVID-19 pandemic has developed into a diverse worldwide emergency with gigantic difficulties for any association all throughout the planet. With lockdowns and other social removing conventions carried out in nations around the world, financial exercises and social associations become progressively dependent on innovation. This examination planned to look at the intercession part of business-IT arrangement because of IT administration (ITG) in Higher Educational Institutions (HEIs) performance. The Higher Educational area was picked as an object of study as this area will encounter a time of extremist innovation driven change because of COVID-19‘s boost and there very few studies in this sector. This study used the case study of a HEI in Bahrain where Integrated IT governance framework was implemented successfully during the time of crisis and need. In fact the ITG helped a lot in achieving the strategic goals of the HEI. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.
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PurposeThis study aims to examine earnings management around initial public offerings (IPOs) in India. It also explores the influence of issue characteristics on earnings management around the IPOs.Design/methodology/approachA sample of 511 IPOs that came during April 2003-March 2019 is studied for calculating earnings management for pre-issue, issue and post-issue years. Using Cross-Sectional Modified Jones Model, the paper presents earnings management on the basis of three proxies i.e. discretionary accruals, discretionary current accruals and discretionary long-term accruals. The influence of issue characteristics on earnings management practised around the IPOs is also observed through correlation and multiple regression analysis.FindingsThe paper finds that earnings management is abnormally high during the issue year compared with pre-issue and post-issue years. It also unveils that profitability, premium, age, and size of the issuer significantly determine the level of pre-issue and issue year earnings management practised by Indian IPO issuers.Research limitations/implicationsThe findings are useful to stakeholders (potential investors, analysts and regulators) to observe, assess and understand the quality of financial numbers that are based on fallacious disclosure of accounting figures. It provides insight into the possibilities of managed earnings around the issue that could influence investors' decision-making. Further, the study reflects the efficacy of Indian regulatory norms for IPOs.Originality/valueTo the authors' knowledge, it is the only Indian study that had used an extensive data set of about two decades to calculate earnings management during pre-issue, issue and post-issue years. The uniqueness of the study further lies in three proxies of earnings management representing short-term and long-term accruals. Moreover, it is the first study to observe the influence of IPO issue characteristics on earnings management.
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Multinational enterprises have become a main engine of the global economy, technical advancement, and product innovation, playing a pivotal role in the world economy and the global technological revolution. However, MNEs are also often embroiled in financial fraud and corporate scandal which show that MNEs should improve their corporate governance. Meanwhile, as COVID- 19 runs rampant across the world, populism and deglobalisation have resurged, and protectionism and unilateralism are exerting negative impacts on the world economy. Achieving sustainable development in this context is a test of a company's management and governance abilities. How should they be governed? This book will be a useful tool for university research-led teaching and fundamental research in corporate governance theories of MNEs in general, as well as using Chinese case studies as evidence to support our theoretical arguments. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022.
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Mosque is a non-profit community organization, where the purpose of its establishment is not to seek profit, so this objective makes it different from commercial organizations. "Takmir" (manager of a mosque)as a manager, has the responsibility and trust of the congregation. This was explanatory research with a quantitative approach. The level of a good trust can be improved by consinously improving the quality of variabels so that the mosque organization managed can run properly and correctly and the congregation's trust can be achived. When the good mosque governance concept with the principles, internal control and services are used properly, it will be able to improve organization performance. Congregation's trust in the takmir to improve the performance of the mosque's organization can be achieved by increasing the ability, kindness and integrity of the takmir. The congregation's trust in the takmir will affect its intensity in participating in activities organized by the mosque, in which it will directly affect the performance of the mosque's organization. For Next research, it is recommended to add a variable of the concept of leadership from organizational managers. The participation variable from the congregation and the community, and professional variables, Professional someone will have a positive and significant impact on the quality of work.
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This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.
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Information technology governance is often out of sync with business processes in many organisations. This was also the case for a professional council in South Africa, which experienced a lack of a coherent IT system design and disparaged registration, finance, and external verification systems inherited from previous systems that were incompatible with new system innovations to ensure efficient operations. This resulted with employees struggling to register social science professionals during lockdown as a result of Covid-19 pandemic. After recognising this, a South African professional council embarked on a digital transformation process to modernise the organisation by implementing an architectural aspect of information governance. This chapter used one of the three Control Objective for Information and Related Technology (COBIT) concepts - align, plan, and organise - to explore the business alignment of information technology governance planning at a professional council in South Africa. From a business perspective, the COBIT framework provides an integrated, top-to-bottom approach to IandT governance. Participatory Action Research (PAR) was used as the research method in this critical emancipatory study because the project required collaboration between the researchers and study participants in defining and solving the problem. The Look phase: getting to know stakeholders so that the problem is defined on their terms and the problem definition is reflective of the community context;the Think phase: interpretation and analysis of what was learnt in the Look phase;and the Act phase: planning, implementing, and evaluating, based on information collected and interpreted in the other phases, were followed. The chapter established that no common enterprise architecture was adopted to aid in the development of business process, information, data, application, and technology architecture layers, as well as reusable building block components. A process flow of information governance components is suggested. It is hoped that the flow chart will aid in the alignment of information technology governance and business goals, as well as to ensure continuity in the event of disasters such as the Covid-19 pandemic. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.
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PurposeThis study aims to investigate the impact of risk-taking and auditor characteristics on value creation in companies listed on the Tehran Stock Exchange. In addition, it investigates the moderator role of auditor characteristics in the impact of risk-taking on value creation, especially in pre-Covid 19 and post-Covid 19 pandemic.Design/methodology/approachThe information about 199 company in 2014–2021 was examined. In the present study, in accordance with the related theoretical literature and the importance of auditor specialization, auditor tenure and auditor reputation, these factors were considered as the auditor characteristics.FindingsThe present findings based on the generalized least squares (GLS) method showed that risk-taking positively affects the value creation. The auditor characteristics (auditor specialization, auditor tenure and auditor reputation) have a significant positive effect on the value creation. Furthermore, the auditor characteristics enhance the impact of risk-taking on value creation. The results of generalized method of moments method and robust regression analysis are consistent with the GLS results. To take into account the Covid-19 conditions, the data were divided into pre-Covid-19 and post-Covid-19 years. The results showed that auditor characteristics moderate the impact of risk-taking on value creation in pre-Covid 19 and post-Covid 19.Originality/valueThe study highlights the role of auditor characteristics in the value creation, especially in the emerging market. Given that Covid-19 has seriously damaged global economic well-being and has put companies at a double risk, the present findings can be useful for managers, investors and the international community, and help company managers make risk-taking policies and select auditors with appropriate characteristics.
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Corporate governance remains the focus of current research and a concept that continues to evolve to meet the needs of business managers. Faced with the need for companies to cope with a world characterized by perpetual change and successive economic crises (Prowse in Revue d'economie financiere 31:119-158, 1994), the identification of the results of the implementation of good governance mechanisms in the structure of the management of companies on financial performance remains a necessity that helps managers and researchers specialized in management sciences and financial accounting to have a better visibility on the importance of corporate governance. It should be mentioned that the economic environment and the characteristics of the sectors of activity of the companies remain a relevant criterion in the study of the relation between the governance of the companies and their financial performance. In this sense, we have tried through this research work to study the impact of the implementation of effective corporate governance on the financial performance of 160 companies in the UK between 2005 and 2018 while taking into account the specificity of the business sectors. Through our study, we used multivariate regressions based on FGLS models while dividing our sample to several clusters. As a result, we found that the implementation of good corporate governance leads to the improvement of the financial performance of companies measured by the return on equity. As a motivation, it must be said that this study can be of major importance for future studies that want to make comparisons on the sectoral and temporal level. Indeed, this study gives the possibility for future research work to make comparative studies based on comparisons for different sectors of activity in the UK before and after the Brexit and also after the COVID 19 period.
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PurposeThe 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/approachThirteen semi-structured interviews were conducted with chairpersons, CEOs and directors from companies listed on the FTSE 350. FindingsThis 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 implicationsImplications 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/valueThis 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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COVID-19 outbreak has re-designed business activities and changed the priorities in our lives. Since the pandemic is a sign of overexploitation of our habitat, it has stressed the importance of sustainable and resilient businesses and ‘stakeholderism'. A recent survey conducted by Willis Towers Watson (WTW) revealed that 74 percent of the American companies proceed with their executive compensation frameworks widely consistent with last year's;only 12 percent stated that they will make substantive changes in their corporate governance and remuneration structures. Surprisingly, the survey result does not alter too much in the Nordic countries which are egalitarian and stakeholder-oriented. Three-fifth (57 to 61 percent) of the employers in Norway, Sweden, Denmark, and Finland expressed that they are not planning to change the structure of the executive schemes and that one-fourth (24 to 26 percent) are still unsure. Therefore, this book chapter, as a commentary, aims to disclose and interpret the survey results from the Nordic countries perspective and guide the practitioners and academics on how the corporate governance systems and executive compensation schemes should be modified to reach fair, resilient, and sustainable businesses based on the key takeaways from the COVID recession and stakeholder theory. © 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
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The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies;(2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value;(2) profitability has a positive significant effect on firm value;(3) dividend payment has no significant effect on firm value;(4) inflation has a negative significant effect on firm value;(5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.
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PurposeThis study aims to examine the effects of dialect connectedness between the chairman and the chief executive officer (CEO) (DCCC) on the tunneling activities of controlling shareholders.Design/methodology/approachThis study uses abnormal related-party transactions (ARPT) as a proxy for tunneling activities and traces dialects of chairmen and CEOs based on the respective birthplace information. Baseline results are examined using a fixed-effects model. The results remain robust when using the instrumental variable approach, propensity score matching (PSM) technique, changing the measurement of tunneling and Heckman two-step selection model.FindingsThe results show that DCCC reduces tunneling activities. This negative association is more pronounced for non-state-owned enterprises and firms whose chairmen and CEOs work in the respective hometowns. DCCC restrains tunneling activities through mechanisms by establishing an informal supervisory effect on CEOs because the CEOs fear reputational damage and strengthening cooperation between chairmen and CEOs. Further analyses suggest that this negative association is more significant when chairmen and CEOs are non-controlling shareholders, but the association is weakened during the coronavirus disease 2019 (COVID-19) crisis.Originality/valueAs dialect is a carrier of culture, this study's results imply that cultural proximity can replace formal mechanisms to enhance corporate governance.
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Introduction: Good management of premium funds will create trust for the insured and can even add value to the company. If the management is carried out poorly, it will not only affect one customer but can paralyze other related aspects within the company. One of the cases of failure to pay customer claims occurred at PT Asuransi Jiwasraya which was motivated by the weak application of GCG principles in the management of the company. Meanwhile, government policies in the insurance sector and countercyclical policies did not provide an opportunity for insurance companies that were threatened with default in paying the insured's claims by restructuring payments. Methods: This research was normative legal research using a statute approach and a conceptual approach to solve these problems. In addition to being guided by the applicable regulations, the researcher also analyzed legal issues using existing legal theories. Results: The results in this study stated that the Covid-19 pandemic could be said to be a difficult or hardship situation. Hardship directed the parties to renegotiate legal remedies which could be the right solution if the insurance company could not pay the insurance claim submitted by the insured. Some sectors could still survive during the Covid-19 pandemic, so the current situation can be recovered along with the recovery from the spread of Covid-19. It is not appropriate to call it force majeure which directs the parties to cancel the contract and would be more appropriate if the efforts were taken by the parties to restore the situation through renegotiation. Conclusions: Insurance companies could apply for rescheduling by changing the schedule for fulfilling claims so that there was no need for dispute resolution in court. © 2023 UPM Press. All rights reserved.
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Objetivo: Este estudo examinou a capacidade de desempenho financeiro e nao financeiro na previsäo do tempo de publicaçao de relatórios financeiros, moderada pela pandemia da COVID-19. Referenciái teórico: A teoria dos sinais postula que a administraçâo desempenha um papel crucial no fornecimento de informaçöes as partes interessadas sobre as condiçöes da empresa (Brigham & Houston, 2001). De acordo com Spence (1973), as empresas estao motivadas a fornecer informaçöes relevantes as partes interessadas. Se as condiçöes de desempenho sao boas, a empresa tende a acelerar o processo de apresentaçao de demonstraçöes financeiras. Por outro lado, se o desempenho for ruim, há uma tendencia a atrasar a publicaçao dos relatórios financeiros. O longo período de tempo para a publicaçao de relatórios financeiros pode indicar más noticias que a empresa tem, de modo que ela ainda tem que publicar as noticias para o público. Scott (2015) sugere que quando os gerentes souberem que há noticias desfavoráveis sobre a condiçao da empresa no futuro, evitarao publicar estas informaçöes ou pelo menos atrasaräo a apresentaçao das demonstraçöes financeiras. Método: O desempenho financeiro foi medido por quatro indicadores: lucratividade, liquidez e solvencia. Enquanto isso, o desempenho nao financeiro variável foi medido pelo indice de boa governança corporativa (GCG) e pela reputaçao dos auditores. O modelo proposto foi testado com base nos dados quantitativos coletados de 156 empresas de manufatura listadas na Bolsa de Valores da Indonesia (IDX) a partir de 2018 e 2020. A análise de regressao múltipla foi realizada para analisar e interpretar os dados. Resultados e conclusao: O resultado indica que a solvencia, a boa governança corporativa e a reputaçao do auditor foram preditores significativos do período de publicaçao do relatório financeiro. Entretanto, a capacidade preditiva de rentabilidade e liquidez no prazo de publicaçao nao foi considerada significativa. Além disso, os resultados mostram que a pandemia da COVID-19 modera a capacidade de rentabilidade e boa governança corporativa na previsao do prazo de publicaçao. Implicates da pesquisa: O indicador de desempenho financeiro e nao financeiro dá resultados diferentes na previsäo do RWPLK das empresas de manufatura na Indonesia. ROA e CR nao sao capazes de prever o RWPLK, mas DER, GCG, KAP sao capazes de prever o RWPLK. O papel da pandemia COVID-19 foi capaz de moderar a capacidade de ROA e GCG em prever o prazo para publicaçao de relatórios financeiros, mas foi incapaz de moderar a capacidade de CR, DER e KAP em prever o RWPLK. Originalidade/valor: O presente estudo fornece a primeira evidencia empírica sobre o papel moderador da pandemia COVID-19 na capacidade preditiva do desempenho financeiro e nao financeiro para o prazo de publicaçao das demonstraçöes financeiras.Alternate :Purpose: This study examined the ability of financial and non-financial performance in predicting financial reports publication time frame as moderated by the COVID-19 pandemic. Theoretical framework: Signal theory postulates that management serves a crucial role in providing information to stakeholders regarding the condition of the company (Brigham & Houston, 2001). According to Spence (1973), companies are motivated to provide relevant information to stakeholders. If the performance conditions are good, the company tend to speed up the process of presenting financial statements. Conversely, if performance is poor, there is a tendency to delay the financial reports publication. The long span of time for the publication of financial reports can indicate bad news that the company has so that it has yet to publish the news to the public. Scott (2015) suggests that when managers know there is unfavorable news about the condition of the company in the future, they will avoid publishing this information or at least delay the presentation of financial statements. Method/design/approach: Financial performance was measured by four indicators: profita il ty, liquidity and solvency. Meanwhile, variable non-financial performance was measured by the index of good corporate governance (GCG) and auditor reputation. The proposed model was tested based on the quantitative data collected from 156 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 and 2020. The multiple regression analysis was performed to analyze and interpret the data. Results and conclusion: Result indicates that solvency, good corporate governance, and auditor reputation were significant predictors of the time span of financial report publication. However, the predictive ability of profitability and liquidity on the publication timeframe was found to be not significant. Furthermore, the results show that the COVID-19 pandemic moderates the ability of profitability and good corporate governance in predicting the publication timeframe. Research implications: Financial and non-financial performance indicator gives different results in predicting the RWPLK of manufacturing companies in Indonesia. ROA and CR are not able to predict RWPLK, but DER, GCG, KAP are able to predict RWPLK. The role of the COVID-19 pandemic was able to moderate the ability of ROA and GCG in predicting the timeframe for publication of financial reports, but was unable to moderate the ability of CR, DER and KAP in predicting RWPLK. Originality/value: The present study provides the first empirical evidence on the moderating role of the COVID19 pandemic on the predictive ability of financial and non-financial performance for financial statement publication time frame.
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-The objective of this research is to study the good corporate governance and accounting performance affecting profit quality of companies listed on the Stock Exchange of Thailand during the COVID-19 pandemic. The research methodology is multiple regression analysis used in the data analysis and the test of accounting performance used as an intermediate variable according to the concept of [16]. The sample group consists of companies listed on the Stock Exchange of Thailand from 2018-2021. The data used in the study was a total of 2,604 data. The research results revealed that from the mediator variables before COVID-19 (2018-2019) totalling 2 years, the good corporate governance scores have an influence on profit quality. The rate of return on equity is some intermediate variable. It shows that a good corporate governance score has an influence on accounting performance as measured by the return on equity ratio of the shareholders and profit quality. However, the results of the test on the intermediate variable after COVID-19 (2020-2021) did not meet the test criteria for good corporate governance influencing profit quality at the statistical significance level of 0.05. © 2023, World Scientific and Engineering Academy and Society. All rights reserved.
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With the continuous adoption of sustainable development goals by all countries, there is a rising demand for implementing and disclosing related information by companies. This paper aims to find an idea about the nature of reporting practices related to slavery by listed banking companies of Bangladesh and the relationship between reporting practice and organizational attributes. Existing literature provides the foundation of this study. Annual reports from 2016 to 2021 were collected from the company websites, and content analysis was used to determine the nature and extent of slavery reporting;an index was developed based on content analysis. Independent variables were determined based on the current literature review. Statistical tools, including the test of multicollinearity, heteroscedastic, correlation, and linear regression and panel data analyses were used to determine the fitness of the model and the impact of independent variables on the dependent variable. Content analysis showed a clear picture of the consciousness about slavery accounting as all of the companies reported a minimum of three components of selected targets from SDG8. The evidence says that the quality and quantity of slavery reporting are improving yearly. A satisfactory correlation was found among the variables. Some variables, such as ownership nature, Board Size, etc., have a positive impact, and insignificant impact was found for Age and leverage on slavery disclosure. This paper only examines the banking industry, and it assesses only a few targets of SDG 8. Thus the results obtained from the study may not be similar to other companies. Data collection also has limitations;our target was to study till 2022 but some information requirements of few companies were not available on websites. This research paper is the first attempt to determine the nature of slavery accounting in Bangladesh. It will encourage business organizations to extend their reporting on slavery and SDGs.
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PurposeThis paper examines contextual factors that affect the association between board gender diversity and firm performance.Design/methodology/approachThe authors use a global sample of listed firms in the tourism industry in 30 countries from 2015 to 2020.FindingsFirst, firm performance is positively associated with the proportion of female directors on a board. Second, the positive association between firm performance and the proportion of female directors on the board is higher in (1) countries with stronger shareholder rights, (2) countries with stronger securities law regulation stipulating disclosure of board diversity, (3) countries with stronger economic empowerment of women, and (4) during the COVID-19 crisis. Third, corporate financial distress risk is lower in firms with higher proportion of female directors on the board. Fourth, the negative association between corporate financial distress risk and the proportion of female directors on the board is more pronounced in (1) countries with stronger securities law regulations stipulating disclosure of board gender diversity, (2) countries with stronger economic empowerment of women, and (3) during the COVID-19 crisis.Originality/valueThe results indicate that contextual factors (comprising country-level corporate governance structures, economic empowerment of women and economic crisis) can affect the association between board gender diversity and firm performance.
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This paper examines whether gender diversity (GD) on corporate boards influences financial performance (FP) of Indian firms using System Generalized Methods of Moments (GMM) methods by considering panel data of 364 firms during 2017 to 2021, comprising of 1820 firm-year observations. The study reveals that the mere presence of a woman director (WD) on boards makes no difference in financial performance. Presence of WDs as a significant portion of the boards and their active roles in the functioning and governance of companies positively contribute to firms' financial performances and economic value creation. Regarding other governance parameters, the study shows that larger boards do not necessarily improve firm performance. Also, independent directors do not necessarily add value to corporate performance and value creation. While a higher promoter's stake is an important factor for Indian companies to drive corporate performance, firms with separate CEO and chairperson outperform firms with CEO duality. The study also reveals that the covid 19 pandemic has negatively influenced the financial performance and economic profit generation of the Indian firms. This study is important for several reasons. First, this study considers the period (2017–2021) when Indian companies adopted new financial reporting practices (IND-AS) in line with International Financial Reporting System (IFRS), the mandatory quota system of women directors' appointment is implemented and new corporate governance norms are implemented. Hence, our study contributes to the literature by proving meaningful insights on the role of gender diversity and other corporate governance parameters on financial performance of Indian firms in the light of newly adopted accounting and financial reporting practices. Second, few previous India based studies have mostly used pooled OLS or fixed effect models, and did not address the endogeneity problem in different forms like Dynamic Endogeneity, Simultaneity, and Unobserved Heterogeneity. This paper addresses the endogeneity problem appropriately by using the system generalized method of moments (GMM) while modelling the relation between WDs and firms' FP. Therefore, the findings of this study are more reliable and unbiased and can be useful for effective policy making on gender diversity and corporate governance issues. Third, few prior studies which have looked into the role of WDs on FP of Indian firms, have mostly used return on assets (ROA), return on equity (ROE) and Tobin's Q as performance parameters. Here, in addition to ROA, ROE and Tobin's Q, we also use economic value added (EVA) as indicators of corporate performance to understand the role of WDs on economic value creation for companies. The EVA is considered as modern technique to measure the economic profit earned by a firm, and it has gained huge popularity among companies as an improved technique for measuring financial performance for companies. To the best of our knowledge, the role of WDs on economic value creation by firms has not been investigated before particularly in the Indian context. This is another unique contribution of this study. Fourth, the Covid 19 pandemic had impacted global economy severely and India was no exception. Financial performances of most Indian firms were negatively impacted due to the nationwide lockdown and uncertainties about production, revenue and earnings. This study considers both the pre and post Covid 19 pandemic period in examining our central research question using a year dummy. Therefore, our study also captures whether the covid 19 pandemic has actually impacted the financial performance of Indian firms, while modelling this relation. This is another valuable and unique contribution of this study to the literature. The findings of this study provide an understanding of how board gender diversity and other governance parameters influence financial performance of Indian firms in an emerging market context. The outcomes are also explained and aligned with the relevant policy implications in th light of recent Indian corporate governance norms and policies. These findings are useful to the companies and policymakers, as they can use these findings while designing effective boards, which can be useful in improving firm performance. Board of directors, investors, regulators, and policymakers can effectively use these findings to understand how gender diverse boards and other corporate governance parameters influence firms' financial performance under the concentrated ownership pattern.
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We use the COVID shock to study the direct and interactive effects of several forms of corporate flexibility on short- and long-term real business plans. We find that i) workplace flexibility, namely the ability for employees to work remotely, plays a central role in determining firms' employment plans during the health crisis;ii) investment flexibility allows firms to increase or decrease capital spending based on their business prospects in the crisis, with effects shaped by workplace flexibility;and iii) financial flexibility contributes to stronger employment and investment, in particular when fixed costs are high. While the role of workplace flexibility is new to the COVID crisis, CFOs expect lasting effects for years to come: high workplace flexibility firms foresee continuation of remote work, stronger employment recovery, and shifting away from traditional capital investment, whereas low workplace flexibility firms rely more on automation to replace labor.
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The Covid-19 pandemic as a truly global crisis has shown the importance of firm resilience in times of crisis. Yet, so far, we lack an understanding of the role of firm ownership and management in building this resilience. Based on stewardship theory, we posit that family management and ownership help firms to navigate through a global crisis. To test our predictions, we analyze how Covid-related negative events affect the stock market reactions of 300 German listed firms and how family ownership and management moderate these effects. Our cross-sectional regression results show a positive effect of family management while no such effect was found for family ownership. We contribute to the research on family involvement and stewardship in crisis situations by showing that family ownership and management constitute distinct determinants of stewardship behavior and by bringing a context element into family business stewardship research that was missing so far in the literature. Practical implications exist for family firm's top management employment policies and capital market communication in crisis situations.