I am pleased to share that our paper entitled “Did Outside Directors’ Firm-specific Accumulated Knowledge Benefit the Firm’s Stock Performance during COVID-19?” has just been accepted for publication in Australian Journal of Management!
I co-authored this paper with Dr Dharmendra Naidu from Monash University in Australia.
Our research contributes to “the role of corporate governance in enhancing firm performance during a crisis…Our research is the first to show how prior social interactions between outside directors and inside directors over their tenure positively contributed to firm performance during COVID-19 crisis. We contribute by advocating on the relevance of outside directors’ accumulated knowledge about the firm to decision making during COVID-19 crisis.”
We add to the prior literature “by examining the effect of outside directors’ internal social capital on their utilization of firm-specific human capital during the COVID-19 collapse period.”
“Our results suggest that outside directors’ board tenure around 10 to 13 years was optimal during the COVID-19 collapse period. Our results are also relevant to regulators and stakeholders of firms in the Asia-Pacific region including Australia because recent studies using Australian firms show that their average board tenure is around 6 years”, (Naidu and Ranjeeni, 2023).
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Almost a year into the pandemic, nearly every business in the world has been affected by COVID-19, but performance has varied widely, even within countries and industries. Data collected through World Bank surveys provide some glimpses into why and how this might be relevant for policy.
Our paper published in Australian Journal of Management is available as an Open Access. You can download and read our published research paper for free using the link below:
https://journals.sagepub.com/doi/10.1177/03128962231166831
Every joint in life was affected during COVID-19 pandemic. It was a serious crisis. But the successful firms can traverse the obstacles and continue performance even better and better.
The vehicle of life should not stop or retrieve when facing a serious problem, as in COVID-19 pandemic, but the driver of this vehicle should know how to let it move in the right ways.
Night can not last forever and sunshine must come and prevail the world
Dr.Sundus Fadhil Hantoosh