Since the COVID-19 outbreak, there has been an unparalleled emphasis placed on the correlation between corporate governance and the performance of companies, especially in the banking industry. The purpose of this study is to investigate the impact of corporate governance practices on the firm performance of top 49 banks with high net assets amidst the COVID-19 crisis. Through a comparative analysis, it aims to identify the ways in which certain aspects of corporate governance, such as management score, shareholders score, and CSR strategy score initiatives, have an impact on important performance indicators like operating income and market value. This research uses a dual-method approach, Data Envelopment Analysis (DEA) and truncated regression to examine the impact of governance responsibility activities and evaluate organizational performance.
The results indicate that the link between the variables is deeply comprehended. Management practices show a significant and positive correlation to firm performance meanwhile shareholders engagement show no significant influence on the performance of the company. Company performance was found to be negative significantly impacted by the CSR strategy. This study will contribute to providing important insights for industry practitioners, scholars, and researchers to support sustainable business practices in the post-pandemic era and inform strategic decision-making between corporate governance and company performance during times of crisis.
