Corporate governance practices and the pandemic crisis: UK evidence

• DOI: https://doi.org/10.1108/CG-08-2020-0357
• Published date: 17 August 2021
• Date: 17 August 2021
• Pages: 983-995
• Subject Matter: Strategy,Corporate governance
• Author: Sheeja Sivaprasad,Sudha Mathew

Corporate governance practices and

the pandemic crisis: UK evidence

Sheeja Sivaprasad and Sudha Mathew

Abstract

Purpose –This paper aims to investigate the impact of the COVID-19 pandemic on the corporate

governance practices in the UK. The authors adopt a case study approach and use content analysis,

using internal and external media releases as well as annual reports to analyse the impact of the

pandemicon governance practices.

Design/methodology/approach –The researchdesign is qualitative in nature and adoptsa case study

approach. HSBC, an internationalbank, is used as the case study and a content analysis of internaland

external informationreleased after the COVID-19 outbreak is used. Themes arising from the analysisare

discussedand recommendations are made.

Findings –Results from the thematic analysisshow that firms must be resilient in difficult times, follow

sustainable practices and are attentive to the well-being of their employees. Firms must address the

adequacyof IT Infrastructure and assess the IT related risks duringthese times.

Practical implications –The pandemiccrisis triggered unprecedented changes in the mannerthe firms

are governed and managed. The recommendations made by the study have practical implications for

firms who canadopt them to be make the business resilient and sustainable.

Originality/value –To the best of the authors’ knowledge,this is the first study to explore the impact of

the pandemic andanalyse firms’ responses to the crisis in thecorporate governance context. This study

contributes to the corporate governance literature by providing insights of the impact of the COVID-19

pandemic.

Keywords Stakeholders, Corporate governance, Board of directors, Crisis, Pandemic, COVID-19

Paper type Research paper

1. Introduction

In 2008, the global financial crisis set off a huge liquidity crisis as policymakers scrambled

to deliver relief packages to save financialinstitutions and businesses. It saw the collapse of

prominent banks and financial institutions such as Lehman Brothers, Freddie Mac and

Fannie Mae, Northern Rock (Wiggins et al., 2019). More than a decade later, the world is

paralysed by the COVID-19 pandemic crisis. A critical point to note here is that the

pandemic crisis is vastly different from the 2008 global financial crisis. The COVID-19

pandemic crisis is a health-related one and has far-reaching effects not only on the global

economies but also on our daily lives.

There are several studies [1] that examine the effects of the global financial crisis on cor porate

governance. Little is known about the impact of the pandemic crisi s on the corporate

governance practices of firms. We posit that this study will shed some light on the impact of

the pandemic on corporate governance practices of firms. This study con tributes to the

corporate governance literature by undertaking an analysis of the impl ications of the

pandemic on firms and recommend responses that firms can adopt to combat the pandemi c.

Several economists predict a world-wide recession as a result of this pandemic. Figure 1

depicts the impact of the COVID-19 pandemic on the global equity market indices.

Sheeja Sivaprasad and

Sudha Mathew are both

based at the School of

Finance and Accounting,

Business School, University

of Westminster, London,

UK.

JEL classif‌ication –G3, G30,

G38

Received 7 September 2020

Revised 24 January 2021

28 February 2021

27 March 2021

Accepted 28 March 2021

DOI 10.1108/CG-08-2020-0357 VOL. 21 NO. 6 2021, pp. 983-995, ©Emerald Publishing Limited, ISSN 1472-0701 jCORPORATE GOVERNANCE jPAGE 983