INVESTIGATING THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE AND FIRM VALUE PRIOR TO AND DURING THE COVID-19 PANDEMIC

Abstract

Objective: This study aims to compare the impact of Corporate Governance on Financial Performance and Firm Value before and during Covid-19 Pandemic. Theoretical framework: This research is based on stakeholders and shareholders who also have rights to what they have provided to the company. Method: The study focuses on companies listed on the Indonesia Stock Exchange, analyzing the period from 2018 to 2021, which limits its scope to these entities during and before the pandemic. Utilizing ordinary least squares regression analysis through STATA, this study includes data from 146 companies. Results and conclusion: The results indicate that company size favorably influenced Financial Performances and negatively affected Firm Value during the pandemic. However, aspects of Corporate Governance, including the board of directors, the size of the board, independent directors and the audit committee, had no significant impact on the Financial Performance of the company's value during this period. Before the pandemic, the audit committee negatively affected Firm Value, company size was favorably correlated with Financial Performance and company age favorably influenced Firm Value. However, other elements of Corporate Governance, such as the board of directors, board size and independent directors, did not significantly affect the Financial Performance of the company's value. Implications of the research: This research offers important insights for companies in seeing how firm-related factors can lead to firm value in the capital market. Originality/value: This study contributes to the understanding of the relationship between Corporate Governance, Financial Performance, and Firm Value in the context of the COVID-19 pandemic.