The impact of Corporate Governance on Firm Performance during the COVID-19 pandemic: A case from Pakistan

This study investigates the impact of corporate governance on firm performance during the COVID-19 pandemic, focusing on non-financial companies listed on Pakistan's KSE-100 Index. The research adopts a quantitative approach to analyze how governance mechanisms influenced the financial performance of firms amidst the economic challenges brought by the pandemic. The sample comprises non-financial firms from the KSE-100 Index, chosen for their significant role in Pakistan’s economic landscape, with a focus on sectors unaffected by the unique regulatory frameworks governing financial institutions. Using regression analysis, the study examines the relationship between corporate governance and firm performance during the crisis period. The results reveal a statistically significant positive relationship between strong corporate governance practices and improved financial performance. This suggests that firms with effective governance structures were better equipped to navigate the disruptions caused by the pandemic, leading to superior financial outcomes. The findings offer valuable insights into the role of corporate governance in enhancing firm resilience during times of crisis. Additionally, the study contributes to the broader literature on governance in emerging markets and provides actionable recommendations for policymakers, investors, and corporate leaders aiming to bolster governance frameworks for long-term firm sustainability.