Corporate governance and COVID-19: a literature review

• DOI: https://doi.org/10.1108/CG-10-2020-0447
• Published date: 08 June 2021
• Date: 08 June 2021
• Pages: 969-982
• Subject Matter: Strategy,Corporate governance
• Author: Andreas Koutoupis,Panagiotis Kyriakogkonas,Michail Pazarskis,Leonidas Davidopoulos

Corporate governance and COVID-19: a

literature review

Andreas Koutoupis, Panagiotis Kyriakogkonas, Michail Pazarskis and

Leonidas Davidopoulos

Abstract

Purpose –The purpose of this study is to review the literature on corporate governance (CG);

environmental,social and governance (ESG) issues andcorporate social responsibility (CSR) duringthe

Coronavirusdisease 2019 (COVID-19) pandemic and addresses threeresearch questions: What are the

characteristics of the literatureon CG and COVID-19? What are the themes in CG in the COVID-19 era?

and What are key areas of future researchon CG and COVID-19?

Design/methodology/approach –The authors attempted a systematic literature review of 62 studies

published in 2020. The authors used four criteria to identify characteristics of the literature on CG and

COVID-19and three criteria to identify key themes in the literatureaddressing CG and the pandemic. The

authorsanalyzed answers to the above research questionsand proposals from studies reviewedto guide

futureresearch.

Findings –CG in the contextof COVID-19 has been studied mostly in developedcountries and within a

theoretical framework. As accounting data are insufficient, more research is required in all countries

(developed, emerging and other). Further, there are no conclusive results regarding the relevance of

ESG and CSR to financialperformance. Future research should use additionalmethodologies and data

sourcesto fully explain the impact of COVID-19 on CG.

Practical implications –Practitioners and policymakers could benefit from the study, as the authors

presentkey challenges to CG for the present andthe future.

Originality/value –This study is the first to provide a systematic literature review on CG during the

COVID-19pandemic and presents current trends, challengesand avenues for future research.

Keywords CSR, Corporate governance, ESG, coronavirus disease 2019, pandemic

Paper type Literature review

1. Introduction

The Coronavirus disease 2019 (COVID-19) pandemic has arguably caused many

disturbances in every aspect of modern life. Firms and societies have had to cope with the

radical changes a global health pandemic imposes on its surroundings. Corporate

institutions have switched to safe mode and mechanisms that ensure the interests of

stakeholders have been put to the test. Environmental, social and governance (ESG) refers

to a set of standards to evaluate a firm’s performance regarding the protection of nature

(environment), its relationship with stakeholders, such as employees and suppliers (social)

and its governance as reflected in a firm’s management, executive remuneration and other

variables. Moreover, corporatesocial responsibility (CSR) and its positive impact on society

have become a priority alongside profit maximization. In this review, the authors have

broadly examined corporate governance (CG) and metrics of sustainability, such as ESG,

in the extraordinary context of the COVID-19 pandemic and provide early results.

Additionally, the systematic literature review highlights to market policymakers and

academics the key issues concerning CG and ESG and CSR and sustainability during the

first year of this health pandemic. Generally, the authors observe significant concern with

Andreas Koutoupis is

based at the Department of

Accounting and Finance,

University of Thessaly,

Volos, Greece.

Panagiotis Kyriakogkonas

is based at the School of

Economics, Business and

Computer Science,

Neapolis University

Paphos, Pafos, Cyprus.

Michail Pazarskis is based

at the Department of

Economics, International

Hellenic University, Thermi,

Greece.

Leonidas Davidopoulos is

based at the Department of

Accounting and Finance,

University of Thessaly,

Volos, Greece.

JEL classif‌ication –G32, G34

Received 4 October 2020

Revised 28 January 2021

3 March 2021

21 March 2021

22 March 2021

Accepted 23 March 2021

DOI 10.1108/CG-10-2020-0447 VOL. 21 NO. 6 2021, pp. 969-982, ©Emerald Publishing Limited, ISSN 1472-0701 jCORPORATE GOVERNANCE jPAGE 969