The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?

Nguyen, Quang Khai (2023): The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter? Published in: Plos One , Vol. 2, No. 18 (2023)

Abstract

This study investigated the impact of the COVID-19 crisis on firm risk and performance in different country-level governance qualities in the MENA region. Analyzing a sample of 739 non-financial listed firms in 12 MENA countries for the period 2011–2020, we found that the COVID-19 crisis negatively impacted the performance of firms, especially low-performance firms, in most industries, and increased firm risk in general. Moreover, we found that national governance quality plays an important role in mitigating the negative impact of the COVID-19 crisis on firm operations. Specifically, national governance quality reduces the negative impact of the COVID-19 crisis on firm performance and the positive impact of the crisis on firm risk. The results are consistent with our contention that national governance quality contributes to creating a positive environment for businesses activities and reducing economic shocks.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19; performance
• Subjects: G - Financial Economics > G0 - General; G - Financial Economics > G3 - Corporate Finance and Governance

References

Almustafa, H., Nguyen, Q. K., Liu, J., & Dang, V. C. (2023). The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?. PloS one, 18(2), e0281148.