TY - JOUR
AU - Elmarzouky, Mahmoud
AU - Albitar, Khaldoon
AU - Hussainey, Khaled
PY - 2021
DA - October
TI - Covid-19 and performance disclosure: does governance matter?
JO - International Journal of Accounting & Information Management
EP - 792
VL - 29
IS - 5
DO - https://doi.org/10.1108/IJAIM-04-2021-0086
AB - Purpose This paper aims to investigate whether Covid-19 related information is associated with a higher level of performance disclosure in the annual reports. Furthermore, it examines the moderating effect of corporate governance on the relationship between Covid-19 and the performance disclosure by using three governance mechanisms: board size, board independence and gender diversity. Design/methodology/approach The authors use quantitative content analysis. The authors applied an automated textual analysis technique to measure the level of Covid-19 information and performance disclosure for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors found a significant positive relationship between the Covid-19 disclosure and the firm performance disclosure in the annual reports. The authors also find that both board independence and gender diversity moderate the relationship between the Covid-19 related information and the level of performance disclosure in the annual reports. The authors further run a robustness analysis, which confirms the main results. Practical implications The finding is beneficial for the regulatory setters to better understand whether firms provide generic or meaningful Covid-19 information linked to the firm’s performance. The unique findings of this paper are relevant to regulators, governments, management, shareholders and academics. Originality/value The authors contribute to the literature in a unique and core research area not researched previously. The paper links the Covid-19 disclosure with the firm performance from the corporate narrative perspective. The paper underlines governance factors as a moderating role in this relationship by considering three main mechanisms: board size, board independence and gender diversity.
PB - Emerald Publishing
UR - https://eprints.gla.ac.uk/321202/
KW - Coronavirus (COVID-19)
ER