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Sensitivity analysis of the impact of Covid-19 on corporate sustainability and company performance:Recovery strategy for companies and nations around the world

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  • Ajeigbe Kola Benson

    (Department of Accounting, Faculty of Management Sciences, Walter Sisulu University, South Africa)

  • Ganda Fortune

    (Department of Accounting, Faculty of Management Sciences, Walter Sisulu University, South Africa)

Abstract

The study examined the sensitivity analysis of the impact of Covid-19 on Corporate Sustainability and Company Performance of South African listed companies. The study employed secondary data retrieved from the annual reports of the selected companies. Stakeholder Theory and the Traditional Theory of Economics and Finance from the theoretical foundation of this study. Data retrieved from 40 companies for the period 2010 -2021 was analyzed using panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least square (DOLS) methods, representing all sectors with the help of a convenience sampling method. Findings revealed a strong relationship between corporate sustainability performance and company performance with other explanatory variables. This study also implied that the impact of the Covid-19 pandemic was so sensitive on South African companies and companies must pay strong attention to recovery strategies suggested to reduce the severity of the impact on them and ensure a quick recovery. Key Words:Corporate Sustainability, Company Performance, Environmental and Social Governance, Covid-19, Recovery Strategies

Suggested Citation

  • Ajeigbe Kola Benson & Ganda Fortune, 2022. "Sensitivity analysis of the impact of Covid-19 on corporate sustainability and company performance:Recovery strategy for companies and nations around the world," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(3), pages 16-26, April.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:3:p:16-26
    DOI: 10.20525/ijrbs.v11i3.1704
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    References listed on IDEAS

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