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

Quang Khai Nguyen

MPRA Paper from University Library of Munich, Germany

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.

Keywords: COVID-19; performance (search for similar items in EconPapers)
JEL-codes: G0 G3 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ara, nep-bec, nep-cfn and nep-sbm
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:121001

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