Management of Risk of Corporate Distress and Failure Before, During and After the Covid-19 Pandemic via Corporate Governance Perfomance
- Ajeigbe, Benson Kola, Ganda, Fortune
- Authors: Ajeigbe, Benson Kola , Ganda, Fortune
- Date: 2023
- Subjects: Company perfomance , Corporate distress , Corporate governance , COVID-19 pandemic , Default risk , Risk management , Sustainability perfomance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15232 , vital:80034 , DOI: 10.53894/ijirss.v6i4.1900
- Description: The impact of the recent pandemic on aspects of corporate governance, business, a country's economy, corporate distress, failures, and the general well-being of companies has been a subject of robust discussion. This study was conducted to examine the influence of corporate governance in mediating and managing the risk of corporate distress and failures before, during, and after the COVID-19pandemic. The study employed the Panel Autoregressive Distributed Lag (PARDL) model on annual data from 2010 to 2021 to analyse the short-run and long-run effects of the pandemic on corporate governance and sustainability performance. The results from both the short-run and long-run effects are similar, revealing that the estimated coefficients of the debt-to-equity ratio, finance costs, and COVID-19-related costs are negative but significant in the models. Conversely, the coefficients of the current ratio, quick ratio, and board size from both short-run and long-run effects show positive and significant results. Generally, the findings reveal that the coefficient of board size, as a proxy for corporate governance, has a very strong influence in mediating the risk of corporate distress and failure before, during, and after the pandemic period, up to a certain level until the pandemic’simpact was severe on companies’ production, sales, and other operational performance. Based on the above findings, it is recommended that the board of directors and other management boards employ enhanced good governance strategies and improve risk control mechanisms that enhance company performance during the pandemic to help avert corporate distress and failures thereafter.
- Full Text:
- Date Issued: 2023
- Authors: Ajeigbe, Benson Kola , Ganda, Fortune
- Date: 2023
- Subjects: Company perfomance , Corporate distress , Corporate governance , COVID-19 pandemic , Default risk , Risk management , Sustainability perfomance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15232 , vital:80034 , DOI: 10.53894/ijirss.v6i4.1900
- Description: The impact of the recent pandemic on aspects of corporate governance, business, a country's economy, corporate distress, failures, and the general well-being of companies has been a subject of robust discussion. This study was conducted to examine the influence of corporate governance in mediating and managing the risk of corporate distress and failures before, during, and after the COVID-19pandemic. The study employed the Panel Autoregressive Distributed Lag (PARDL) model on annual data from 2010 to 2021 to analyse the short-run and long-run effects of the pandemic on corporate governance and sustainability performance. The results from both the short-run and long-run effects are similar, revealing that the estimated coefficients of the debt-to-equity ratio, finance costs, and COVID-19-related costs are negative but significant in the models. Conversely, the coefficients of the current ratio, quick ratio, and board size from both short-run and long-run effects show positive and significant results. Generally, the findings reveal that the coefficient of board size, as a proxy for corporate governance, has a very strong influence in mediating the risk of corporate distress and failure before, during, and after the pandemic period, up to a certain level until the pandemic’simpact was severe on companies’ production, sales, and other operational performance. Based on the above findings, it is recommended that the board of directors and other management boards employ enhanced good governance strategies and improve risk control mechanisms that enhance company performance during the pandemic to help avert corporate distress and failures thereafter.
- Full Text:
- Date Issued: 2023
Testing the Enviroment Kuznets Curve Hypothesis in South Africa Using the ARDL Approach
- Authors: Ganda, Fortune
- Date: 2023
- Subjects: Carbon emissions , Ecological footprint , Economic growth , Financial development , Foreign direct investment , Human capital , Renewable energy consumption
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15795 , vital:80397 , DOI: https://doi.org/10.1111/1477-8947.12377
- Description: In recent years, an abundance of research has beenconducted on the purported environmental Kuznets curve(EKC) hypothesis, which progressively proposed an invertedU-shaped relationship between income and emissions. Theprimary objective of this research is to examine the case ofSouth Africa, which stands as a prominent example of ahighly developed industrialized economy within the Africancontinent. This study aims to explore the potential ofSouth Africa in reducing emissions resulting from humanactivities. Therefore, this study utilizes the autoregressivedistributed lag (ARDL) approaches. The study's findingsdemonstrate the existence of both the U-shaped curve andthe inverted U-shaped EKC when considering the parame-ters being examined in both short-term and long-term sce-narios. In the short term, the inflection points of per capitaGDP obtained from two regressions on carbon emissionsvalidate values within the range of US$45.675-US$45.72.The relationship between foreign direct investment (FDI)and financial development and their effects on environmen-tal quality have yielded inconclusive and statistically insig-nificant results in both periods. The long-term impact ofrenewable energy usage on environmental quality, specifi-cally in terms of carbon emissions and ecological footprint,is substantial and exhibits a negative correlation.
- Full Text:
- Date Issued: 2023
- Authors: Ganda, Fortune
- Date: 2023
- Subjects: Carbon emissions , Ecological footprint , Economic growth , Financial development , Foreign direct investment , Human capital , Renewable energy consumption
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15795 , vital:80397 , DOI: https://doi.org/10.1111/1477-8947.12377
- Description: In recent years, an abundance of research has beenconducted on the purported environmental Kuznets curve(EKC) hypothesis, which progressively proposed an invertedU-shaped relationship between income and emissions. Theprimary objective of this research is to examine the case ofSouth Africa, which stands as a prominent example of ahighly developed industrialized economy within the Africancontinent. This study aims to explore the potential ofSouth Africa in reducing emissions resulting from humanactivities. Therefore, this study utilizes the autoregressivedistributed lag (ARDL) approaches. The study's findingsdemonstrate the existence of both the U-shaped curve andthe inverted U-shaped EKC when considering the parame-ters being examined in both short-term and long-term sce-narios. In the short term, the inflection points of per capitaGDP obtained from two regressions on carbon emissionsvalidate values within the range of US$45.675-US$45.72.The relationship between foreign direct investment (FDI)and financial development and their effects on environmen-tal quality have yielded inconclusive and statistically insig-nificant results in both periods. The long-term impact ofrenewable energy usage on environmental quality, specifi-cally in terms of carbon emissions and ecological footprint,is substantial and exhibits a negative correlation.
- Full Text:
- Date Issued: 2023
The Infuence of Agricultural Policy on Carbon Emission in Selected OECD Countries
- Authors: Ganda, Fortune
- Date: 2023
- Subjects: Agricultural policy , Agricultural financial support , Producer protection ratio , Carbon emissions
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15790 , vital:80396 , DOI: https://doi.org/10.1016/j.heliyon.2023.e19881
- Description: Global agriculture is actively impacted by policies which affect the composition and location of produce and the production methods. This paper examines how agricultural policy affects carbon emissons in 27 OECD countries over the period 2000 to 2020. This research deploys the Gener-alised Methods of Moments (GMM) and Pooled Mean Group (PMG) to analyse panel data. The study findings demonstrate that the indicators of agricultural policy (agricultural financial sup-port and producer protection ratio) predominantly display a significantly positive relationship with emissions in the short term. Still, that link is mostly significantly negative in the long run. As such, agricultural policy is a driver of emissions in the short run, which is in line with the extended STIRPAT model, although in the long run, the variable seizes to be a driver. Economic growth, transport services and human capital support that their association is positively signifi-cant in the short run, chiefly negative and significant in the long run. There is overwhelming evidence that renewable energy is negatively and significantly associated with emissions in both periods. This research analysis is imperative to create vital cornerstones towards a complete understanding of the effects of agricultural policy on developing green economies.
- Full Text:
- Date Issued: 2023
- Authors: Ganda, Fortune
- Date: 2023
- Subjects: Agricultural policy , Agricultural financial support , Producer protection ratio , Carbon emissions
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/11260/15790 , vital:80396 , DOI: https://doi.org/10.1016/j.heliyon.2023.e19881
- Description: Global agriculture is actively impacted by policies which affect the composition and location of produce and the production methods. This paper examines how agricultural policy affects carbon emissons in 27 OECD countries over the period 2000 to 2020. This research deploys the Gener-alised Methods of Moments (GMM) and Pooled Mean Group (PMG) to analyse panel data. The study findings demonstrate that the indicators of agricultural policy (agricultural financial sup-port and producer protection ratio) predominantly display a significantly positive relationship with emissions in the short term. Still, that link is mostly significantly negative in the long run. As such, agricultural policy is a driver of emissions in the short run, which is in line with the extended STIRPAT model, although in the long run, the variable seizes to be a driver. Economic growth, transport services and human capital support that their association is positively signifi-cant in the short run, chiefly negative and significant in the long run. There is overwhelming evidence that renewable energy is negatively and significantly associated with emissions in both periods. This research analysis is imperative to create vital cornerstones towards a complete understanding of the effects of agricultural policy on developing green economies.
- Full Text:
- Date Issued: 2023
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