Do board characteristics affect financial sustainability? The COVID-19 pandemic experience
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 25 October 2024
Abstract
Purpose
This study aims to analyze the board characteristics–financial sustainability relationship in the largest US nonfinancial listed firms and the impact of the COVID-19 pandemic on this relationship.
Design/methodology/approach
Board characteristics such as attendance, cultural diversity, size, experience and gender diversity were assessed in relation to financial sustainability through various regression models, using 2007–2023 panel data of nonfinancial S&P 500 firms.
Findings
The examined board characteristics are positively associated with financial sustainability. The COVID-19 pandemic accentuated this association, which emphasizes the importance of effective board oversight during crises.
Practical implications
The findings provide guidance to shareholders, managers and regulators seeking to enhance corporate governance and financial sustainability. The adoption of effective supervisory and monitoring mechanisms can improve financial sustainability and reporting practices.
Social implications
Enhanced financial sustainability practices can lead to a more stable and secure financial future for companies, thus benefiting employees, shareholders and communities. This study offers insights for promoting the overall social and economic well-being of the US market.
Originality/value
This study enhances knowledge on how board characteristics influence financial sustainability, particularly during crises such as the COVID-19 pandemic. It provides insights into safeguarding stakeholder interests and improving financial sustainability in the US market.
Keywords
Acknowledgements
The authors would like to thank the editors of JFRA and the anonymous referees for their insightful and valuable comments. Their comments have led to a significant improvement in the quality of this work. In addition, the authors of this work are very grateful to Editage (www.editage.com) for their English language editing service. They declare that this work has not been supported by any research grant or research funding whatsoever.
Citation
Sajwani, B., Al-Shboul, M. and Maghyereh, A. (2024), "Do board characteristics affect financial sustainability? The COVID-19 pandemic experience", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-11-2023-0648
Publisher
:Emerald Publishing Limited
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