The Role of Environmental Costs on the Relationship Between Good Corporate Governance and Firm Value During Covid-19 Conditions

The objective of this study is to investigate the impact of corporate governance on the valuation during covid 19 conditions and role of environmental expenditures on the relationship. This study employed purposive sampling to select publicly traded companies from the LQ45 index list spanning the years 2018 to 2022. The data was examined by panel data modelling with the Weighted Least Square technique. The evaluation of good corporate governance is conducted through the utilisation of a score derived from the corporate governance perception index, whereas the assessment of business value is accomplished by employing the Tobins Q ratio. The moderating variable of environmental costs is assessed by considering the costs associated with Corporate Social Responsibility programs. The results indicated that good corporate governance exerts a negative influence on the value of firms during covid-19 conditions. The present study did not achieve success in establishing the moderating effect of environmental costs on the association between good corporate governance and firm value. The present study provides several implications for corporate governance practitioners in managing companies during crisis and also investors in formulating future investment decisions.