ANALYSING THE RELATIONSHIP BETWEEN COVID-19 AND CORPORATE GOVERNANCE ON THE ISSUING DATE OF UK NONFINANCIAL FIRM'S ANNUAL REPORTS

Abstract

This study examines the relationship between corporate governance factors, the COVID-19
pandemic, and the timing of annual reports by UK non-financial companies. The study is based on data from
companies listed on the London Stock Exchange from 2008 to 2021, and it employs a panel regression random
effect model to analyze the data. The study finds that there is a significant association between corporate
governance factors such as board size, independency of board, audit independence, audit experience, and the
timing of annual reports. Furthermore, the study reveals that the COVID-19 pandemic negatively affects the
corporate governance mechanisms that enhance the timing of annual reports. The findings of this study are
consistent with prior research indicating that the quality of financial reporting should be a focus of
policymakers and managers to enable investors to take timely and informed decisions. Thus, timely
submissions of financial reporting are vital for both external and internal users since they provide useful and
updated information allowing them to make the right decisions.