A perspective on the influence of national corporate governance institutions and government's political ideology on the speed to lockdown as a means of protection against Covid-19
This first wave study of the Covid-19 pandemic investigates why the governments of different countries proceeded to lockdown at different speeds. We draw upon the literature on Corporate Governance Institutions (CGIs) to theorize that governments’ decision-making is undertaken in the light of prevai...
| Authors: | ; ; |
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| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | Drawer...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Published: |
Springer Science + Business Media B. V
2023
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| In: |
Journal of business ethics
Year: 2023, Volume: 185, Issue: 3, Pages: 611-628 |
| Further subjects: | B
Covid-19
B Aufsatz in Zeitschrift B Pandemic response B National CGIs |
| Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
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| 245 | 1 | 2 | |a A perspective on the influence of national corporate governance institutions and government's political ideology on the speed to lockdown as a means of protection against Covid-19 |c Dawn Yi Lin Chow, Andreas Petrou, Andreas Procopiou |
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| 520 | |a This first wave study of the Covid-19 pandemic investigates why the governments of different countries proceeded to lockdown at different speeds. We draw upon the literature on Corporate Governance Institutions (CGIs) to theorize that governments’ decision-making is undertaken in the light of prevailing beliefs, norms, and rules of the collectivity, as portrayed by the focal country’s CGIs, in their effort to maintain legitimacy. In addition, drawing on motivated cognition we posit that the government’s political ideology moderates this relationship because decision-makers are biased when assessing the impact of lockdown on commerce. Running negative binomial regressions on a sample of 125 countries, we find that the more shareholder-oriented the CGIs, the slower the governmental response in shutting down the economy to protect from the pandemic. Moreover, the main relationship is stronger the more right-leaning the government’s ideology. Our study contributes to the research on corporate governance institutions and political ideology and illustrates how societal and ideological biases affect government decision-making, especially when important decisions about public welfare are taken with little information on hand. | ||
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