Can Corporate Governance Protect Firm Performance During The Covid-19 Pandemic?

ABSTRACT

This study aimed to identify the effect of corporate governance mechanisms on performance. The corporate governance mechanisms in this study included the number of directors, independent commissioners, female directors, and government ownership. The objects of this research were conventional banking companies listed on the Indonesia Stock Exchange (IDX) during the 2015-2020 period, for 204 observations. Data analysis used random effect regression with robust standard error. The study results revealed that the internal mechanisms in the form of the number of directors and government ownership affected bank performance. However, only independent commissioners as internal corporate governance mechanisms could protect the firm's performance during the crisis. Independent commissioners were proven to effectively protect against the crisis's destructive effects, reducing ROA (Return on Assets). Meanwhile, the number of directors, government ownership, and female directors were insufficient to protect the firm's performance during COVID-19 pandemic.