Politically connected independent supervisory boards and corporate performance during COVID-19: Evidence from Indonesia

This study aims to examine the relationship between the political connections of companies' independent supervisory boards (PC-ISB) to these firms' performance during the COVID-19 pandemic in Indonesia. This study used 1515 observations of companies listed on the Indonesian Stock Exchange (IDX) for the years 2018–2021. The test was carried out using moderated regression analysis. Additional tests were also conducted, such as market performance tests and endogeneity tests using the System Generalized Method of Moments (the System GMM) and the difference-in-difference (DID) regression analysis. Results confirm that PC-ISB has a significant positive effect on company performance. Then, during the COVID-19 pandemic, the company's performance got worse. However, we did not find that pandemic conditions moderated the relationship between PC-ISB and company performance. Our results remained consistent after testing using the System GMM and the DID to address the issue of endogeneity.