HOW DO FINANCIAL INSTITUTIONS COPE WITH POST-COVID-19 BUSINESS WORLD: EXAMINING THE COPING STRATEGIES AND THE ROLE OF CORPORATE GOVERNANCE

This research aims to investigate the strategic implementation of Corporate Governance (CG) and its relationship with financial performance in the post-COVID-19 period, specifically within the context of the Kingdom of Saudi Arabia (KSA). The study emphasises key variables of CG that are anticipated to contribute meaningfully to academic discourse in the financial sector, particularly given the limited prior research in this domain. A central focus is placed on examining the practical application of various management practices in enhancing firm performance. The study incorporates an endogenous framework linking CG and firm performance. It seeks to expand the academic understanding of financial institutions by analysing strategies employed by banks in response to the post-pandemic landscape. Additionally, it explores how financial institutions in KSA have adapted to the COVID-19 crisis through the utilisation of digital banking services. The research employs a comprehensive sampling method that includes all 24 commercial banks operating within KSA. From each bank, one manager and two senior-level employees were randomly selected, resulting in a sample of 67 managers and senior managers from diverse commercial institutions across the country. The primary variables examined in the study are digital banking and the cybersecurity department. To analyse the data, descriptive statistics, t-tests, and analysis of variance (ANOVA) were applied. The results indicate that there are no statistically significant differences in the coping strategies adopted through digital banking following COVID-19, irrespective of bank size, compliance level, educational attainment, gender, age, position, or work experience of the respondents. Moreover, the study highlights that the personal interests of leaders within the cybersecurity department influence regulatory compliance, and that CG mechanisms have had a positive effect on bank performance in the aftermath of the pandemic. Based on these findings, it is recommended that banks prioritise CG mechanisms to enhance institutional resilience and performance.