Impact of Covid - 19 on Corporate Governance Constitution and Firm Performance in the Indian Banking Sector

ABSTRACT

The Covid - 19 upsurge has materially affected the operating abode of the banking sector worldwide. Its restrictions have interrupted its economic activities and caused grave commercial fallout for this sector. The present study evaluates the effect of Covid - 19 on the governance constitution and the firm performance of the Indian banking sector for the period 2019-2020. It compares the Covid - 19 impacts on the board's governance structures and the bank's performance in the pre and post-pandemic period. It also empirically examines their interrelationship during uncertain times. The results of the study establish that the board size is the sole prominent governance parameter that exerted a pragmatic influence on the bank's performance during the pandemic. The study's outcomes propound policymakers in designing a congruous governance framework for the corporate sectors during the pandemic. It proposes that the right balance of the stakeholder interests with effective risk strategies is essential in developing an effective governance framework. The study is pre-eminent in providing the empiric Covid - 19 repercussions on the governance procedures and corporate performance. It demonstrates the contemporary governance issues during the pandemic and unveils the avenues for subsequent research. © 2022 SCMS Group of Educational Institutions. All rights reserved.