The role of corporate governance in crisis management evidence from Nordic financials following the Covid-19 crisis

This master’s thesis evaluates whether there is a relationship between the corporate governance ratings of Nordic financials and their ability to navigate through the COVID-19 crisis. The aim of this thesis is to analyze the Nordic corporate governance model and its connections to the organizations’...

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Main Author: Luoma-Halkola, Pauliina
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2023
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/89308
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author Luoma-Halkola, Pauliina
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_facet Luoma-Halkola, Pauliina Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä Luoma-Halkola, Pauliina Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_sort Luoma-Halkola, Pauliina
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description This master’s thesis evaluates whether there is a relationship between the corporate governance ratings of Nordic financials and their ability to navigate through the COVID-19 crisis. The aim of this thesis is to analyze the Nordic corporate governance model and its connections to the organizations’ crisis management capabilities. The study utilizes a linear regression model to assess the relationship between the independent variable of governance score rating, and two alternative dependent variables of financial ratios ROA and ROE. The corporate governance ratings of the sample companies have been extracted from the independent ESG-rating provider Institutional Shareholder Services. ROA and ROE are captured as YoY changes between 2019 and 2020 when the pandemic emerged. This YoY ratio indicates how much negative events impacted the sample companies’ profitability. Furthermore, the YoY differences in ROA and ROE between 2020 and 2021 are also utilized as alternative dependent variables to evaluate whether the corporate governance rating of the company had an impact on how quickly the corporations started recovering from the crisis caused by the pandemic. According to the empirical findings of this thesis, the corporate governance rankings are not linked to the companies’ ROA and ROE developments during and after the COVID-19 shock, although coefficients for ROA were significant. However, this does not mean that the linkage does not exist. Therefore, this thesis calls for further research on the impacts of good corporate governance practices in crisis management. Additionally, the new regulatory developments in the field of ESG will make new studies on ESG-rating divergence relevant during the upcoming years.
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spellingShingle Luoma-Halkola, Pauliina The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis corporate governance ESG Taloustiede Economics 2041 omistajaohjaus kriisinhallinta COVID-19 ownership steering crisis management
title The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis
title_full The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis
title_fullStr The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis
title_full_unstemmed The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis
title_short The role of corporate governance in crisis management
title_sort role of corporate governance in crisis management evidence from nordic financials following the covid 19 crisis
title_sub evidence from Nordic financials following the Covid-19 crisis
title_txtP The role of corporate governance in crisis management : evidence from Nordic financials following the Covid-19 crisis
topic corporate governance ESG Taloustiede Economics 2041 omistajaohjaus kriisinhallinta COVID-19 ownership steering crisis management
topic_facet 2041 COVID-19 ESG Economics Taloustiede corporate governance crisis management kriisinhallinta omistajaohjaus ownership steering
url https://jyx.jyu.fi/handle/123456789/89308 http://www.urn.fi/URN:NBN:fi:jyu-202309295325
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