TY - JOUR
T1 - COVID-19 exposure
T2 - a risk-averse firms’ response
AU - Nasih, Mohammad
AU - Wardani, Damara Ardelia Kusuma
AU - Harymawan, Iman
AU - Putra, Fajar Kristanto Gautama
AU - Sarea, Adel
N1 - Publisher Copyright:
© 2022, Emerald Publishing Limited.
PY - 2024/11/21
Y1 - 2024/11/21
N2 - Purpose: Without a doubt, COVID-19 is a disruptive event that one may not consider before it becomes a global pandemic. This study aims to examine the firm’s risk preference, represented as board characteristics towards COVID-19 exposure in Indonesia. Design/methodology/approach: This study uses the boardroom’s average value of board age and female proportion to represent board characteristics. Fixed-effect regression based on industry (Industry FE) and year (Year FE) analyses 861 firm-year observations of all firms listed on the Indonesian Stock Exchange in 2019–2020. Findings: The result shows a positive relationship between the female board and COVID-19 exposure disclosure. Meanwhile, the age proportion does not offer a significant result. The additional analysis document that the directors mainly drove the result and were only relevant during 2020. These results are robust due to coarsened exact matching tests and Heckman’s two-stage regression. This study enriches COVID-19 literature, especially from a quantitative perspective. Originality/value: The rise of global crises makes the outputs of this study important for non-financial listed firms in Indonesia.
AB - Purpose: Without a doubt, COVID-19 is a disruptive event that one may not consider before it becomes a global pandemic. This study aims to examine the firm’s risk preference, represented as board characteristics towards COVID-19 exposure in Indonesia. Design/methodology/approach: This study uses the boardroom’s average value of board age and female proportion to represent board characteristics. Fixed-effect regression based on industry (Industry FE) and year (Year FE) analyses 861 firm-year observations of all firms listed on the Indonesian Stock Exchange in 2019–2020. Findings: The result shows a positive relationship between the female board and COVID-19 exposure disclosure. Meanwhile, the age proportion does not offer a significant result. The additional analysis document that the directors mainly drove the result and were only relevant during 2020. These results are robust due to coarsened exact matching tests and Heckman’s two-stage regression. This study enriches COVID-19 literature, especially from a quantitative perspective. Originality/value: The rise of global crises makes the outputs of this study important for non-financial listed firms in Indonesia.
KW - Board characteristic
KW - COVID-19
KW - CoronaVirus
KW - Firm risk preference
KW - Risk reduction strategy
KW - Voluntary disclosure
UR - http://www.scopus.com/inward/record.url?scp=85135635995&partnerID=8YFLogxK
U2 - 10.1108/JFRA-12-2021-0430
DO - 10.1108/JFRA-12-2021-0430
M3 - Article
AN - SCOPUS:85135635995
SN - 1985-2517
VL - 22
SP - 1195
EP - 1220
JO - Journal of Financial Reporting and Accounting
JF - Journal of Financial Reporting and Accounting
IS - 5
ER -