The Relationship between COVID-19 Pandemic, Healthcare System, Corporate Governance and Firm Performance in Developing Countries: An Empirical Analysis

Document Type : Research Paper

Authors

1 Higher Institute of Business Administration of Gafsa, Department of Accounting and Tax, University of Gafsa, Gafsa, Tunisia.

2 Manouba University, Campus universitaire Manouba, Manouba, Tunisia.

3 Higher Institute of Business Administration of Gafsa, University of Gafsa, Gafsa, Tunisia; CEMAFI Lab, Nice, France.

Abstract

The purpose of this study is to examine the actual consequences of the COVID-19-related shocks in terms of supply disruption, halted production, and uncertainty. The goal is to investigate if COVID-19 has a negative impact on company performance and quantify the degree of the effect by performing a quantitative methodology based on a set of data from 30 Tunisian financial institutions between 2019 and 2020. The sample covers firm-level accounting data from financial institution annual reports from 2019-2020, complemented with data on cumulative cases and new cases of COVID-19 from the World Health Organization (WHO). Results show that increasing healthcare spending is useful in mitigating the negative effects of COVID-19. Second, pandemics have less of an impact on firms in nations with higher levels of financial development. Third, improved institutional quality in terms of accountability, government effectiveness, regulatory quality, and the rule of law assists companies in navigating the COVID-19 downturn. Finally, avoiding ambiguity exacerbates COVID-19's negative impact.

Keywords

Main Subjects

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Iranian Economic Review
Volume 28, Issue 4
December 2024
Pages 1337-1356

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