Accounting

Research during
the Covid-19
Pandemic
Sylvia Veronica Siregar
Department of Accounting
Faculty of Economics and Business
Universitas Indonesia
 ACCA: Covid-19 Global Survey: Inside
Business Impacts and Responses

Source: https://www.accaglobal.com/gb/en/professional-
insights/global-economics/Covid-19_A-Global-Survey.html
Source: https://cdn.educba.com/academy/wp-
content/uploads/2020/07/Financial-Reporting.jpg
Covid 19 and Financial Reporting
• Going concern issues
• Expected credit losses
• Debt restructurings
• Revenue contracts
• Impairment of assets
• Fair value measurement
• Lease
• Disclosure, including risk disclosure
Barnoussi, A. E., Howieson, B., & van Beest, F. (2020). Prudential
Application of IFRS 9:(Un) Fair Reporting in COVID 19 Crisis for
Banks Worldwide?!. Australian Accounting Review, 30(3), 178-192.

• This paper addresses the challenges banks face when applying the
expected losses model during the current crisis.
Corporate
Governance
Source: https://c8.alamy.com/comp/2C63124/company-governance-concept-icon-2C63124.jpg
 Scherer, A. G., & Voegtlin, C. (2020). Corporate governance for
responsible innovation: Approaches to corporate governance and their
implications for sustainable development. Academy of Management
Perspectives, 34(2), 182-208.
• The paper offers examples of innovative corporate governance that
can help to generate innovations that do good and avoid harm. We
also illustrate the governance challenges and the role of responsible
innovation in the advent of the new coronavirus pandemic (COVID-
19).

Sumber:
https://journals.aom.org/doi/full/10.5465/amp.2017.0175
 Jebran, K., & Chen, S. (2021). Can we learn lessons from the past?
COVID 19 crisis and corporate governance responses. International
Journal of Finance & Economics, 1-9.

• It illustrates that independent risk management committees,

institutional ownership, board independence, blockholders, and
family ownership are some of the essential and effective
governance mechanisms compared to other governance
attributes during COVID‐19 crisis.

Sumber: https://onlinelibrary.wiley.com/doi/epdf/10.1002/ijfe.2428
Amore, M. D., Quarato, F., & Pelucco, V. (2021). Family ownership
during the covid-19 pandemic. Available at SSRN 3773430.

• Based on the analysis of daily stock prices and accounting data

on listed firms in Italy, they show that family firms fared better
than non‐family firms during the Covid‐19 pandemic.
• This result is stronger for firms that feature an active
involvement of families in leadership positions, and firms that
operate in labor‐intensive industries.
Zattoni, A., & Pugliese, A. Corporate Governance Research in the
Wake of a Systemic Crisis: Lessons and Opportunities from the
COVID 19 Pandemic. Journal of Management Studies.

• Analyse the impact of Covid‐19 on five key areas in the field of

corporate governance (i.e., corporate purpose, ownership
structure, board of directors, executive compensation and
accountability) and, for each of them, suggest a series of
research questions that contribute to redirecting and advancing
the domain.
Corporate Social
Responsibility

Source: https://timesharingtoday.com/wp-content/uploads/2018/12/csr-560x232-1.png
He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on
corporate social responsibility and marketing philosophy. Journal of
Business Research, 116, 176-182.
• This pandemic offers great opportunities for firms to actively engage in
various CSR initiatives during the crisis, and potentially catalyse a new era
of CSR development in the long run.
• Urge academic communities to engage in rigorous research on the
following research questions.
• Although the immediate impact of Covid-19 pandemic seems to be evident, what
could be the long-term impact on CSR?
• What are the opportunities and challenges for CSR in the long run post-coronavirus?
• Will an outcome of this pandemic be an increased incorporation of social and
societal issues into our driving philosophies?
• Similarly, while Covid-19 drove sector, firm, and organizational innovation, research is
need to explore the drivers of effectiveness and to detail which changes will prove
beneficial in the long term.
 García Sánchez, I. M., & García-Sánchez, A. (2020). Corporate social
responsibility during COVID-19 pandemic. Journal of Open Innovation:
Technology, Market, and Complexity, 6(4), 126.

• This paper aims to identify the CSR actions that have been developed
by the largest Spanish companies in the face of the pandemic and the
objective pursued with them in order to determine the benefits that
firms want to obtain in one of the hardest-hit countries.
• The samples are 100 listed Spanish companies that reported their CSR
actions on their websites.
• The study applied the content analysis methodology to their
websites, referring to the sections that specify their strategies, plans
of action, and contingencies in the face of the COVID-19 pandemic.

Sumber: https://www.mdpi.com/2199-8531/6/4/126
Mattera, M., Gonzalez, F. S., Ruiz-Morales, C. A., & Gava, L. (2021).
Facing a global crisis-how sustainable business models helped firms
overcome COVID. Corporate Governance: The International Journal
of Business in Society.
• The purpose of this study is to analyse how implementation of corporate
social responsibility (CSR) policies following United Nations’ Global
Compact (UNGC) guidelines can contribute to firm’s performance during a
global crisis, such as the case of COVID-19.
• Energy firms operating in Spain and subscribing to UNGC were evaluated,
specifically those publicly listed in the IBEX35
• Findings show long-term CSR strategies and a strong commitment to
sustainable development contribute to firm’s overcoming periods of
economic crisis. In addition, considering the environmental impact of the
firms’ actions, transition to sustainable business and widening portfolio in
the case of energy firms proved to have a positive impact in overcoming a
hard context such as COVID-19.
Bae, K. H., El Ghoul, S., Gong, Z. J., & Guedhami, O. (2021). Does
CSR matter in times of crisis? Evidence from the COVID-19
pandemic. Journal of Corporate Finance, 67, 101876.

• The samples are 1750 U.S. firms.

• The study finds no evidence that CSR affected stock returns during the
crash period. This result is robust to various sensitivity tests.
• In additional cross-sectional analysis, they find some supporting evidence,
albeit weak, that the relation between CSR and stock returns during the
pandemic-related crisis is more positive when CSR is congruent with a
firm’s institutional environment.
Broadstock, D. C., Chan, K., Cheng, L. T., & Wang, X. (2021). The role
of ESG performance during times of financial crisis: Evidence from
COVID-19 in China. Finance Research Letters, 38, 101716.

• Using a novel dataset covering China’s CSI300 constituents, they show:

• (i) high-ESG portfolios generally outperform low-ESG portfolios;
• (ii) ESG performance mitigates financial risk during financial crisis; and
• (iii) the role of ESG performance is attenuated in ‘normal’ times, confirming
its incremental importance during crisis.
Popkova, E., DeLo, P., & Sergi, B. S. (2021). Corporate social
responsibility amid social distancing during the COVID-19 crisis:
BRICS vs. OECD countries. Research in International Business and
Finance, 55, 101315.
• This paper helps clarifying and better understanding the role of
corporate social responsibility in the conditions of an economic crisis
against the background of the COVID-19 pandemic.
Qiu, S. C., Jiang, J., Liu, X., Chen, M. H., & Yuan, X. (2021). Can
corporate social responsibility protect firm value during the COVID-19
pandemic?. International Journal of Hospitality Management, 93,
102759.
• The samples are all hospitality companies listed in China Stock
Exchanges.
• This study reveals that engaging in CSR activities can increase the
stock returns and stakeholder attention of hospitality firms during the
pandemic.
Impact on
Market
Reaction and Source: http://www.digitalmarketingnext.org/big-data-analysis/how-to-improve-firm-

Performance performance-using-big-data-analytics-capability-and-business-strategy-alignment/
 Xiong, H., Wu, Z., Hou, F., & Zhang, J. (2020). Which firm-specific
characteristics affect the market reaction of Chinese listed companies
to the COVID-19 pandemic?. Emerging Markets Finance and
Trade, 56(10), 2231-2242.
• This paper investigates market reaction to the novel corona virus
(COVID‐19) pandemic. Using a sample of Chinese listed firms,
we find that market reaction to the COVID‐19 outbreak is more
intense in firms within the industries that are vulnerable to the
virus, and those with high institutional investors. Furthermore,
firms with larger scale, better profitability and growth
opportunity, higher combined leverage, and less fixed assets
experience less adverse impact of the COVID‐19 outbreak than
other firms.

Sumber:
https://www.tandfonline.com/doi/full/10.1080/1540496X.2020.1787151
Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business
and research. Journal of business research, 117, 284.

• While some businesses are struggling, some businesses are thriving.

This is true for a number of Internet-based businesses, such as those
related to online entertainment, food delivery, online shopping,
online education, and solutions for remote work.
He, P., Niu, H., Sun, Z., & Li, T. (2020). Accounting index of COVID-19
impact on Chinese industries: A case study using big data portrait
analysis. Emerging Markets Finance and Trade, 56(10), 2332-2349.

• The samples are listed companies in China.

• The study found that except for the basic industry, which was less
affected by the epidemic, the rest of the industries were significantly
affected by the epidemic.
• Besides, the costs of various industries have increased by varying
degrees.
• The aviation, tourism and other service industries have been greatly
impacted. New infrastructure, Chinese patent medicine and Internet
industries have achieved great development.
Auditing

Source: http://www.intosaiitaudit.org/
Albitar, K., Gerged, A. M., Kikhia, H., & Hussainey, K. (2020). Auditing
in times of social distancing: the effect of COVID-19 on auditing
quality. International Journal of Accounting & Information
Management, 29(1), 169-178.
• The authors believe that the COVID-19 social distancing can largely
affect audit fees, going concern assessment, audit human capital,
audit procedures, audit personnel salaries and audit effort, which
ultimately can pose a severe impact on audit quality.
Accounting Education

Source: https://www.insidehighered.com/sites/default/server_files/media/iStock-520374378.jpg
Sangster, A., Stoner, G., & Flood, B. (2020). Insights into accounting
education in a COVID-19 world. Accounting Education, 29(5), 431-
562.

• This paper presents a compilation of personal reflections from 66

contributors on the impact of, and responses to, COVID-19 in
accounting education in 45 different countries around the world.
• It reveals a commonality of issues, and a variability in responses,
many positive outcomes, including the creation of opportunities to
realign learning and teaching strategies away from the comfort of
traditional formats, but many more that are negative, primarily
relating to the impact on faculty and student health and wellbeing,
and the accompanying stress.
Sarea, A., Alhadrami, A., & Taufiq-Hail, G. A. M. (2021). COVID-19 and
digitizing accounting education: empirical evidence from GCC. PSU
Research Review.
• Worldwide, many universities decided to convert the mean of teaching
from the traditional one (face-to-face) to online learning, at the same time
all in-campus activities have been cancelled or postponed until further
notice.
• The sample focuses on the teaching staff at public and private universities
in (GCC), Kingdom of Saudi Arabia, United Arab Emirates, Bahrain, Kuwait,
Oman and Qatar during the COVID-19.
• Most of the surveyed educators perceive that digitizing accounting
education would be compulsory and the higher education institutes would
follow the queue in implementing programs to support this type of
education.
• Moreover, the accounting educators believe that the future of accounting
education is started with this pandemic and there is no way back.
Call for papers for: Meditari Accountancy
Research
• COVID 19 and accounting: Threats to, and opportunities for,
accounting education, research and publication, and innovation in
professional practice
• Deadline 15.05.2021
• https://www.emeraldgrouppublishing.com/journal/medar/covid-19-
and-accounting-threats-and-opportunities-accounting-education-
research-and
Call for papers for: Qualitative Research in
Financial Markets
• Exploring the Impact of Covid19 and the Role Governance,
Accounting and Finance Can Play in Preventing Future Pandemics
• https://www.emeraldgrouppublishing.com/journal/qrfm/exploring-
impact-covid19-and-role-governance-accounting-and-finance-can-
play
We welcome submissions of full papers that
address the following research questions:
• How have organisations prepared themselves for a pandemic, through
their risk management and internal control systems, in the wake of COVID-
19?;
• To what extent have risk management systems within organizations been
adequate to ensure business continuity and stakeholder protection
throughout the pandemic?
• How have companies and other organisations reported on their risk
management before the pandemic, and in what ways are they reporting on
the impacts on their business and on their stakeholders during and
following the pandemic?
• What are the direct and indirect implications of the COVID-19 pandemic on
business systems, processes and continuity?
We welcome submissions of full papers that
address the following research questions: (Cont’d)
• How have capital markets, financial systems and financial institutions
responded to COVID-19?How can the mechanisms of governance,
accounting and accountability contribute to managing the effects of the
pandemic?
• Does accounting have a role to play in protecting organisations and
stakeholders from contracting diseases that pass from animals to humans?
• How should companies report on pandemics in their environmental,
integrated and sustainability reports?
• How can governance, accounting and finance be redesigned in order to
prevent another pandemic
• What weaknesses in governance, accountability and transparency have
been uncovered due to COVID-19 and how may these be addressed?
References
• ACCA. 2020. ACCA: Covid-19 Global Survey: Inside Business Impacts and Responses. https://www.accaglobal.com/gb/en/professional-
insights/global-economics/Covid-19_A-Global-Survey.html.
• Albitar, K., Gerged, A. M., Kikhia, H., & Hussainey, K. (2020). Auditing in times of social distancing: the effect of COVID-19 on auditing
quality. International Journal of Accounting & Information Management, 29(1), 169-178.
• Amore, M. D., Quarato, F., & Pelucco, V. (2021). Family ownership during the covid-19 pandemic. Available at SSRN 3773430.
• Bae, K. H., El Ghoul, S., Gong, Z. J., & Guedhami, O. (2021). Does CSR matter in times of crisis? Evidence from the COVID-19
pandemic. Journal of Corporate Finance, 67, 101876.
• Bradbury, M., & Howieson, B. (2020). Evidence on APRA Proposals and Impact of COVID‐19 on Expected Credit Loss
Accounting. Australian Accounting Review, 30(3), 157-158.
• Broadstock, D. C., Chan, K., Cheng, L. T., & Wang, X. (2021). The role of ESG performance during times of financial crisis: Evidence from
COVID-19 in China. Finance research letters, 38, 101716.
• Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of business research, 117, 284.
• He, P., Niu, H., Sun, Z., & Li, T. (2020). Accounting index of COVID-19 impact on Chinese industries: A case study using big data portrait
analysis. Emerging Markets Finance and Trade, 56(10), 2332-2349.
• Sangster, A., Stoner, G., & Flood, B. (2020). Insights into accounting education in a COVID-19 world. Accounting Education, 29(5), 431-
562.
• Sarea, A. (2020). A bibliometric review on COVID-19 and accounting research. Journal of Investment Compliance, 21(4), 203-207.
• Sarea, A., Alhadrami, A., & Taufiq-Hail, G. A. M. (2021). COVID-19 and digitizing accounting education: empirical evidence from
GCC. PSU Research Review.
• Zattoni, A., & Pugliese, A. Corporate Governance Research in the Wake of a Systemic Crisis: Lessons and Opportunities from the
COVID‐19 Pandemic. Journal of Management Studies.
Source: https://www.nutcrackersweet.com/blog/wp-content/uploads/2017/07/How-Businesses-
Can-Say-Thank-You-for-Being-Our-Client-770x512.png