The blame game: COVID-19 crisis and financial performance

Rayenda Brahmana, Doddy Setiawan () and Maria Kontesa
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Doddy Setiawan: Universitas Sebelas Maret

SN Business & Economics, 2022, vol. 2, issue 11, 1-20

Abstract: Abstract This research investigates the manager’s impression management during the COVID-19 pandemic by gauging the agency theory framework. We examine how managers blame COVID-19 when the firms experience declining performance to retain their reputation. Overall, our results indicate that those firms with declining performance will blame COVID-19 compared to those with expected performance. It also indicates that the odds of COVID-19 appearing in the financial report will be higher in the declining performance firms. Our analysis confirms the impression management theory and agency theory by suggesting that, under declining performance, managers blame COVID-19 as the justifications to alter the attention from their incapability to the black swan event.

Keywords: COVID-19; Blame game; Financial performance; Agency problems; Impression management (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00352-w

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