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

Hamza Almustafa, Quang Khai Nguyen, Jia Liu and Dang Van Cuong

PLOS ONE, 2023, vol. 18, issue 2, 1-24

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.

Date: 2023
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Working Paper: The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0281148

DOI: 10.1371/journal.pone.0281148

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