Abstract

The main goal of this research to examine the relationship between Corporate Governance and Firm Performance During COVID-19. Quantitative method, this research used the source from 34 companies’ annual reports, were used secondary data for 2019 and 2020. The secondary data collected was verified utilizing Smart-Partial Least Squares 3.0. The findings found a positive relationship between corporate governance and financial performance in the financial sector for period 2019 and 2020. This indicates that the increase the governance tools will lead to enhancing and improving companies’ overall performance. This current work has added a new discussion to the knowledge body considering the corporate governance tools and their link with performance. Furthermore, conducting such study in the field of accounting provides new insight into the literature among both developed and emerging economies including Oman.

Keywords: Corporate Governance, Firm Performance, COVID-19, Oman.

JEL Classification: M41.

Cite as: AL-Hashimi, Y.N., AL-Toobi, J.S., Ahmed, E.R. (2023). The Influence of Corporate Governance on Firm Performance During the COVID-19 Pandemic. Financial Markets, Institutions and Risks, 7(1), 109-122. https://doi.org/10.21272/fmir.7(1).109-122.2023

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Abushammala, S. N., Alabdullah, T. T. Y., & Ahmed, E. R. (2015). Causal Relationship between Market Growth and Economic Growth. Comparison Study. European Journal of Business and Management, 7(33), 31-36. [Google Scholar]
2. Ahmed, E.  R., Alabdullah, T. T. Y., Ardhani, L., & Putri, E. (2021). The Inventory Control System’s Weaknesses Based on the Accounting Postgraduate Students’ Perspectives. Journal of Accounting and Business Education, 5(2), 1-8.DOI: [CrossRef]
3. Ahmed, E. R. e. A. (2016). Zakat and Accounting Valuation Model. Journal of Reviews on Global Economics, 5(16-24), 24. [CrossRef]
4. Ahmed, E. R.,  A Amran, Alabdullah, T. T. Y., & , A Islam (2019). Testing The Legitimacy Index In Light Of Shariah Risks For Sukuk Markets. European Proceedings of Social and Behavioural Sciences, 88. [Link]
5. Ahmed, E. R., Aiffin, K. H. B., Alabdullah, T. T. Y., &Zuqebah, A. (2016). Zakat and Accounting Valuation Model. Journal of Reviews on Global Economics, 5, 16-24. [CrossRef]
6. Ahmed, E. R., Alabdullah, T. T. Y &Shaharudin, M. S. (2020). Approaches to Control Mechanisms and Their Implications for Companies’ Profitability: a Study in UAE. Journal of accounting Science, Vol. 4(2), 11-20. [CrossRef]
7. Ahmed, E. R., Alabdullah, T. T. Y., Amran, A., &Yahya, S. B. (2018). Indebtedness Theory and Shariah Boards: A Theoretical Approach. Global Business and Management Research, 10(1), 127-134. [Google Scholar]
8. Ahmed, E. R., Alabdullah, T. T. Y., Shaharudin, M. S., &Putri, E. (2020). Further Evidence on the Link between Firm’s Control Mechanisms and Firm Financial Performance: Sultanate of Oman. Journal of Governance and Integrity, 4(1), 1-6. [CrossRef]
9. Ahmed, E. R., Alabdullah, T. T. Y., Thottoli, M. M., & Maryanti, E. (2020). Does Corporate Governance Predict Firm Profitability? An Empirical Study in Oman. The International Journal of Accounting and Business Society, 28(1), 127-143. [CrossRef]
10. Ahmed, E. R., Alabdullah, T. Y., Islam, M. A., &Asmar, M. (2014). Sukuk Legitimacy: A New Measurement Based on Content Analysis” 16th Malaysian Finance Association Conference in SasanaKijang Central Bank of Malaysia, Kuala Lumpur, June 4-6, 2014.
11. Ahmed, E. R., Bin Yahya, S., & Haron, M. (2014). Shubuhat: related activities in Islamic financial operations. Journal of Islamic Economics, Banking and Finance, 113(3580), 1-19.
12. Ahmed, E. R., Islam, A., Zuqibeh, A., &Alabdullah, T. T. Y. (2014). Risks management in Islamic financial instruments. Advances in Environmental Biology, 402-406.  [Google Scholar]
13. Ahmed, E. R., Islam, M. A., & Ariffin, K. H. K. (2015). An empirical analysis on legitimacy of sukuk: an insight of Malaysian sukuk. Asian Social Science, 11(13), 84. [Link]
14. Ahmed, E. R., Islam, M. A., &Alabdullah, T. T. Y. (2014). Islamic sukuk: Pricing mechanism and rating. Journal of Asian Scientific Research, 4(11), 640. [Link]
15. Ahmed, E. R., Islam, M. A., Alabdullah, T. T. Y., &Amran, A. B. (2019). A qualitative analysis on the determinants of legitimacy of sukuk. Journal of Islamic Accounting and Business Research, 10(3), 342-368. [CrossRef]
16. Ahmed, E. R., Islam, M. A., Alabdullah, T. T. Y., and bin Amran, A. (2018). Proposed the pricing model as an alternative Islamic benchmark. Benchmarking: An International Journal, 25, 2892–2912. [Link]
17. Ahmed, E. R., Islam, M. A., and & Alabdullah, T. T. Y. (2017). The moderating role of Shariah supervisory board on sukuk pricing benchmark. International Journal of Excellence in Islamic Banking and Finance, 6. [Link]
18. Ahmed, E. R., Mamar, S. H. A., & Ghassani, A. S. A. (2021). Risk Management Practices and Financial Performance: The Case of Banks in Sultanate of Oman. AFRE Accounting and Financial Review, 4(2), 164-171. [CrossRef]
19. Ahmed, E. R., Rahim, N. F. A., Alabdullah, T. T. Y., & Thottoli, M. M. (2019). An examination of social media role in entrepreneurial intention among accounting students: a SEM study. Journal of Modern Accounting and Auditing, 15(12), 577-589. [Link]
20. Akbar, M., Hussain, S., Ahmad, T., & Hassan, S. (2020). Corporate governance and firm performance in Pakistan: Dynamic panel estimation. Corporate Governance and Firm Performance in Pakistan: Dynamic Panel Estimation. Abasyn Journal of Social Sciences, 12(2), 213-230. [CrossRef]
21. Al-Aamri, A. K., Al-musallami, F. H., Ahmed, E. R., & Qazi, M. (2021). Impact of Audit Committees on Quality of Financial Reporting: A Study in Oman. International Journal of Business and Management Invention, 10(10), 35-43. [Link]
22. Alabdullah, T. T. Y., Ahmed, E.  R., & Ahmed, R. R. (2021). Organization features  and  profitability: Implications  for  a  sample  of  Emerging  Countries. Journal of  Accounting and Business Education, 5(2), 43-52. [CrossRef]
23. Alabdullah, T. T. Y & Ahmed, E. R. &Abushammala, S. (2020). Growth of Companies: Empirical Study of the Companies Listed in Developing Economies. Journal of accounting Science, 4(2), 1-10. [Link]
24. Alabdullah, T. T. Y & Ahmed, E. R. (2020). Audit Committee Impact on Corporate Profitability in Oman Companies: an Auditing and Management Accounting Perspective. Riset Akuntansidan Keuangan Indonesia, 5(2), 121-128. [Link]
25. Alabdullah, T. T. Y. (2016). Agency Theory Perspective: A Quantitative Study of Accounting Performance Measures In Emerging Economies. ICTE Proceedings, New York. [Link]
26. Alabdullah, T. T. Y. (2016). Are Board Size And Ownership Structure Beneficial In Emerging  Markets’ Firms? Evidence from Jordan. International Journal of Management & Information Systems (IJMIS), 20(3), 87-94. [Link]
27. Alabdullah, T. T. Y. (2016). Corporate Governance from The Perspective of The Past and The Present and The Need to Fill an International Gap. Risk Governance & Control: Financial Markets & Institutions, 6(4). [Link]
28. Alabdullah, T. T. Y. (2016). The Performance of Companies and The Board’s Characteristics From the New Perspective of Manipulation Avoidance. Corporate Ownership & Control, 13(4), 279-286. [Link]
29. Alabdullah, T. T. Y. (2017). Compensation committee, company board attributes, and company performance: The moderating effect of leadership position. Paper presented at the 2017 Wei International Academic Conference Proceedings, July 24-27, 2017, Business and Economics.
30. Alabdullah, T. T. Y. (2018). The relationship between ownership structure and firm financial performance. Benchmarking: An International Journal, 25(1), 319-333. [Link]
31. Alabdullah, T. T. Y. (2019). Management Accounting and Service Companies’ Performance: Research in Emerging Economies. Australasian Accounting, Business and Finance Journal, 13(4), 100-118. [Link]
32. Alabdullah, T. T. Y. (2021). Management accounting insight via a new perspective on the risk management – companies’ profitability relationship. International Journal of Intelligent Enterprise, 7, in press. [Link]
33. Alabdullah, T. T. Y. (2021). Ownership Structure and the Failure or Success of Firm Performance: Evidence from Emerging Market; Cross-sectional Analysis. International Journal of Business and Management Invention, 10(8). [Link]
34. Alabdullah, T. T. Y. and Ahmed, E. R. (2018). Corporate Governance: To What Extent it is important in the Arab Countries. International Journal of Science and Research, 7. [Link]
35. Alabdullah, T. T. Y., Ahmed, E. R. (2019). Board Diversity and Disclosure of Corporate Social Responsibility Link: A Study in Malaysia. Journal of Adv Research in Dynamic & Control System, 11(11). [Link]
36. Alabdullah, T. T. Y., Ahmed, E. R., & Nor, M. I. (2018). New Ideas from Management, Finance and Accounting Perspective: The Research for A New Link Between A Company’s Outcome and Risk Management. 5th International Conference on New Ideas in Management, Economics and Accounting.
37. Alabdullah, T. T. Y., Ahmed, E. R., & Nor, M. I. (2019). Do board characteristics provide more enhancement for firm financial performance? A corporate governance perspective. New challenges in corporate governance: Theory and practice, 89-91. [CrossRef]
38. Alabdullah, T. T. Y., Ahmed, E. R., & Yahya, S. (2018). The determination of firm performance in emerging nations: Do board size and firm size matter? International Academic Journal of Accounting and Financial Management, 5(2), 57-66. [CrossRef]
39. Alabdullah, T. T. Y., Ahmed, E. R., & Muneerali, M. (2019). Effect of Board Size and Duality on Corporate Social Responsibility: What has Improved in Corporate Governance in Asia? Journal of Accounting Science, 3(2), 121-135. [Link]
40. Alabdullah, T. T. Y., Ahmed, E. R., (2020). A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment. International Islamic University Chittagong. 17(2), 6-26. [Link]
41. Alabdullah, T. T. Y., Ahmed, E. R., Almashhadani, M., Yousif, S. K., Almashhadani, H, A., Almashhadani, R., Putri, E. (2021). How significantly to emergingeconomies benefit from board attributes and risk management in enhancing firm profitability? Journal of accounting Science, 5(1). [Link]
42. Alabdullah, T. T. Y., Ahmed, E. R., and Nor, M. I. (2020). The World Declining Economy and Coronavirus Pandemic: Systems Should Be Continued. Russian Journal of Agricultural and Socio-Economic Sciences, 102, 89–96. [Link]
43. Alabdullah, T. T. Y., Ahmed, E. R., Mohammed Almashhadani, M, Yousif S, Almashhadani H, Almashhadani R, Putri, E (2021). How Significantly to Emerging Economies Benefit From Board Attributes and Risk Management in Enhancing Firm Profitability? Journal of Accounting Science, 5(2). [CrossRef]
44. Alabdullah, T. T. Y., Alfadhl, M. M. A., Yahya, S., & Rabi, A. M. A. (2014). The Role of Forensic Accounting in Reducing Financial Corruption: A Study in Iraq. International Journal of Business and Management, 9(1), 26. [Link]
45. Alabdullah, T. T. Y., Al-Fakhri, I., Ahmed, E. R., & Kanaan-Jebna, A. (2021). Corporate Governance System and Firm Financial Performance. Scientific Computer Sciences, 4(6), 97-103. [Link]
46. Alabdullah, T. T. Y., Al-Fakhri, I., Ahmed, E. R., & Kanaan-Jebna, A. 2021. Empirical Study of The Influence of Board of Directors’feature on Firm Performance. Russian Journal of Agricultural and Socio-Economic Sciences, 11(119), 137-146. [Link]
47. Alabdullah, T. T. Y., Laadjal, A., Ries, E., & Al-Asadi, Y. A. A. (2018). Board Features and Capital Structure in Emerging Markets. Journal of Advanced Management Science, 6(2). [Link]
48. Alabdullah, T. T. Y., Maryanti, E . (2021). Internal Control Mechanisms in Accounting, Management, and Economy: A review of the Literature and Suggestions of New Investigations. International Journal of Business and Management Invention, 10(9). [Link]
49. Alabdullah, T. T. Y., Nor, M. I., & Ahmed, E. R. (2018). The determination of firm performance in emerging nations: Do board size and firm size matter? Management, 5(3), 57-66. [Link]
50. Alabdullah, T. T. Y., Yahya, S., & Ramayah, T. (2014). Corporate Governance Mechanisms and Jordanian Companies’ Financial Performance. Asian Social Science, 10(22), 247. [Link]
51. Alabdullah, T. T. Y., Yahya, S., &Ramayah, T. (2014). Corporate Governance Development: New or Old Concept? European Journal of Business and Management, 6(7), 312-315. [Link]
52. Alabdullah, T. T. Y., Yahya, S., Nor, M. I., &Majeed, F. Q. (2016). An Investigation of Corporate Governance from A New Perspective: Examining the Financial Performance of Companies and The Impact of Executive Turnover. Corporate Board: Role, Duties & Composition, 12(1). [Link]
53. Alabdullah, T.T.Y., Kanaan-Jebna, Kanaan, Ahmed, E. R.(2022). The Impact of Platforms Being Analogue In Some European Countries on Dealing with Management Issues. Russian Journal of Agricultural and Socio-Economic Sciences, 10(102), 89–96. [Link]
54. Alabri, A. K. S., Almanthri, L. S. S., & Ahmed, E. R. (2021). Financial leverage and firm performance of listed companies in a Muscat Stock Exchange: Evidence from Oman. International Journal of Business and Management Invention, 10(10), 44-51. [Link]
55. Al-ahdal, W. M., Almaqtari, F. A., Tabash, M. I., Hashed, A. A., & Yahya, A. T. (2021). Corporate governance practices and firm performance in emerging markets: empirical insights from India and Gulf countries. Vision. [Link]
56. Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. (2020). The impact of corporate governance on the financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51(1), 1-32. [Link]
57. Alfadhl, M. M. A., Alabdullah, T. T. Y. (2016). Agency Cost and Management Behavior: The Role of Performance as a Moderator. International Journal of Science and Research (IJSR), 5(1), 1858-1864. [Link]
58. AL-Fakhri, I., Alabdullah, T.T.Y. (2021). The Evolution of a Robust and Reliable Brand Experience Scale in the Malaysian Context: An Empirical Evidence. Business Ethics and Leadership, 5(4), 59-67. [CrossRef]
59. Alhasani, A. N., Alhinai, M. H., & Ahmed, E. R. (2023). An empirical Study on Impact of Intellectual Human Capital on Corporate Social Innovation. Journal of Accounting Science, 7(1), 47-65. [Link]
60. AL-Hashimy, H. N. H. (2018). The Effect of Tax System on Shareholder Decisions when Choosing a Accounting Principles. Journal of Reviews on Global Economics, 7, 21-27. [Link]
61. Ali, S., Fei, G., Ali, Z., & Hussain, F. (2021). Corporate governance and firm performance: evidence from listed firms of pakistan. Journal on Innovation and Sustainability RISUS, 12(1), 170-187.‏ [Link]
62. AL-kiyumi, R. K., AL-hattali, Z. N., & Ahmed, E. R. (2021). Operational Risk Management and Customer Complaints in Omani Banks. Journal of Governance and Integrity, 5(1), 200-210. [Link]
63. Almashhadani, M. (2021). How Dose Corporate Governance Leverage Organizational Performance: A Survey With Suggestions And Notes For  Further Research. Russian Journal of Agricultural and Socio-Economic Sciences, 3(111), 3–9. [Link]
64. Al-Matari, E. M. A. (2014). Corporate governance and performance of non-financial public listed firms in Oman (Doctoral dissertation, Universiti Utara Malaysia). [Link]
65. Alsahafi, A. M. (2017). Corporate Governance and Firm Performance in Saudi Arabia (Doctoral dissertation, The University of Newcastle). [Link]
66. Alsarmi, Y. N. A., & Ahemed, E. R. (2022). Determinants of Efficiency of Tax’s Collection in Oman. JABE, Journal of Accounting and Business Education, 7(1), 59-71. [Link]
67. Alsulmani, A. H., Alkindi, S. S., & Ahmed, E. R. (2021). Customer accounting information and Omani service companies’ performance. International Journal of Finance & Banking Studies, 10(2), 79-88. [Link]
68. Alyaarubi, H. J., Alkindi, D. S., & Ahmed, E. R. (2021). Internal Auditing Quality and Earnings Management: Evidence from Sultanate of Oman. Journal of Governance and Integrity, 4(2), 115-124. [Link]
69. Arikawa, Y., Inoue, K., & Saito, T. (2019). Corporate governance, employment, and financial performance of Japanese firms: A cross-country analysis. Employment, and Financial Performance of Japanese Firms: A Cross-Country Analysis (January 9, 2019). [Link]
70. Bazhair, A. H. (2021). Corporate governance mechanism and firm performance in Saudi Arabia. Studies of Applied Economics, 39(4), 1-10. [Link]
71. Danoshana, S., & Ravivathani, T. (2019). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. SAARJ Journal on Banking & Insurance Research, 8(1), 62-67.‏ [Link]
72. Eton, M., Mwosi, F., Sunday, A., & Poro, S. G. (2021). Corporate governance and firms’ financial performance amongst private business enterprises in Uganda, a perspective from Lira City. African Journal of Business Management, 15(9), 219-231. [Link]
73. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. [Link]
74. Gani, A. A. M. O., Al Rahbi, A. H. S. S., & Ahmed, E. R. (2021). Empirical Analysis on Corporate Transparency, Competitive Advantage, and Performance: An Insight of Muscat Securities Market. Journal of Governance and Integrity, 4(2), 96-102. [Link]
75. Hao, Y., Ahmed, E. R., Singh, K. S. D., & Amran, A. (2019). Innovation and diversity based organization culture and its effect on competitive advantage. Opción: Revista de Ciencias Humanas y Sociales, 21, 1205-1216. [Link]
76. Issa, S. S., Khalaf, H. H., Almuain, A. R., & Ahmed, E. R. (2018). Effectiveness of inflation targeting based monetary policy. Opción, 34(16), 590-605. [Link]
77. Kanaan, A., Baharudin, A. S., & Alabdullah, T. T. Y. (2022). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1–14. [Link]
78. Kanaan-Jebna, A. M. J., Alabdullah, T. T. Y., Ahmed, E. R., & Ayyasamy, R. K. (2022). Firm Performance and the Impact of Entrepreneurial Education and Entrepreneurial Competencies. [Link]
79. Kanaan-Jebna, A., & Baharudin, A. S. (2014). The impact of market orientation on manufacturing SME performance in Malaysia with the moderating effect of e-commerce. Proceedings of the 6th International Conference on Information Technology and Multimedia, 169–172. [Link]
80. Kanaan-Jebna, A., & Baharudin, A. S. (2015). The contingent impact of inter-organization communication on the relationships between market and entrepreneurial orientations and manufacturing SME performance in Malaysia. Journal of Scientific Research and Development, 2(10), 66–77. [Link]
81. Khatib, S. F., & Nour, A. N. I. (2021). The impact of corporate governance on firm performance during the COVID-19 pandemic: evidence from Malaysia. Journal of Asian Finance, Economics and Business, Forthcoming, 8(2), 0943–0952.
82. Kofarbai, H. Z., & Yauri, N. M. (2021). Corporate Governance, Risk Management and Bank Failures in Nigeria: A Case Study of Some Selected Banks. Journal of Finance, Accounting & Management, 12(1), 13-45. [Link]
83. Koji, K., Adhikary, B. K., & Tram, L. (2020). Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Non-Family Firms in Japan. Journal of Risk and Financial Management, 13(9), 215.‏
84. Makki, M., & Lodhi, S. A. (2013). Impact of corporate governance on financial performance. Pakistan Journal of Social Sciences, 33(2), 265-280
85. Mamari, S. H. A., Al Ghassani, A. S., & Ahmed, E. R. (2022). Risk Management Practices and Financial Performance: The Case of Sultanate of Oman. Journal of Accounting Science, 6(1), 69-83.
86. Marashdeh, Z. M. S. (2014). The effect of corporate governance on firm performance in Jordan (Doctoral dissertation, University of Central Lancashire). Journal of Finance and Accounting, 8(2), 59-63. [Link]
87. Mardnly, Z., Mouselli, S., & Abdulraouf, R. (2018). Corporate governance and firm performance: empirical evidence from Syria. International Journal of Islamic and Middle Eastern Finance and Management, 11(4), 1-18. [Link]
88. Memon, M. A., et al. (2019). Moderation analysis: issues and guidelines. Journal of Applied Structural Equation Modeling, 3(1), 1-11. [Link]
89. Mishra, A. K., Jain, S., & Manogna, R. L. (2021). Does corporate governance characteristics influence firm performance in India? Empirical evidence using dynamic panel data analysis. International Journal of Disclosure and Governance, 18(1), 71-82.‏ ]Link[
90. Muntahanah, S., Kusuma, H., Harjito, D. A., & Arifin, Z. (2021). The Effect of Family Ownership and Corporate Governance on Firm Performance: A Case Study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(5), 697-706. ]Link[
91. Nugroho, M. (2021). Corporate governance and firm performance. Accounting, 7(1), 13-22. [Link]
92. Olopade, E. B. (2021). Impact of Corporate Governance on Financial Performance of Consumers Goods Firms in Nigeria. ‏ Bingham International Journal of Accounting and Finance (BIJAF), 2(1), 332-346. [Link]
93. Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147–169. [Link]
94. Queiri, A., Madbouly, A., Reyad, S., & Dwaikat, N. (2021). Corporate governance, ownership structure and firms’ financial performance: insights from Muscat securities market (MSM30). Journal of Financial Reporting and Accounting, 19(4), 640-665. [Link]
95. Shahwan, T. M., & Habib, A. M. (2020). Does the efficiency of corporate governance and intellectual capital affect a firm’s financial distress? Evidence from Egypt. Journal of Intellectual Capital, 21(3),  403-430. [Link]
96. Singh, K. S. D., Islam, M. A., Ahmed, E. R., & Amran, A. (2019). An empirical investigation into the major drivers of corporate social responsibility. Opción: Revista de Ciencias Humanas y Sociales, 21, 1076-1090. [Link]
97. Swedan, Z. M., & Ahmed, S. (2019). The impact of corporate governance implementation on firm’s performance in the gulf countries (GCC) based on stewardship assumptions. International Journal of Business Society, 2(11), 42-47. [CrossRef]
98. Wagdi, O., Salman, E., & Abouzeid, W. (2021). Maximizing Stockholder Wealth under Corporate Governance Mechanisms: Evidence from EGX. International Journal of Economics and Finance, 13(4), 1-24. [Link]
99. Yilmaz, I. (2018). Corporate governance and financial performance relationship: case for Oman companies. Journal of Accounting, Finance and Auditing Studies, 4(4) 84-106. [Link]
100. Zeitun, R. (2014). Corporate governance, capital structure and corporate performance: evidence from GCC countries. Review of Middle East Economics and Finance, 10(1), 75-96. [Link]