Exploring governance, ownership and auditor impact on company risk: A comparative analysis before and after COVID-19

This study explores board independence, ownership structure, and auditor selection's impact on company risk before and after Corona. Using a 115-company sample (sample period between 2014-2022), it analyzes their influence on risk during both periods. Relationships between board independence, ownership, auditor choice, and risk are examined in line with the literature. The study employs generalized least squares (GLS) analysis. Findings reveal auditor choice's influence on risk-taking pre and post-Covid-19. In pre-Corona, passive/transitory institutional investors affected return deviation, assets (STD-ROA), and R&D expenses (R&D-TA), while active investors impacted only STD-ROA. Post-pandemic, active investors affected STD-ROA and return deviation (STD-RET). Board independence impacted risk components before COVID-19 pandemic (STD-RET and R&D-TA), and all risk components post Covid-19. The study underscores governance and auditor importance in managing risk in normal times, but crises like COVID-19 can challenge their efficacy. Valuable insights for policymakers, investors, and firms to enhance risk management and governance practices are offered.