Assessing the Impact of Corporate Governance and Strategic Leadership on Economic Growth and Market Stability

The forces of globalization and liberalization have altered the whole market structure and operational behaviour both at the domestic as well as the international level. These waves have resulted in unprecedented changes in the corporate world and have brought an influential impact on the organizational performance. The main outcome is the move towards market economies. The doctrine of liberalization forcefully argues that economic welfare will be improved by freeing private business from regulation by the state. It would stimulate both economic efficiency and growth. Market requires no big administrative apparatus, no central decision making and very little policing other than the provision of a legal system for the enforcement of contracts. Competition has in reality become a discernible force in developing economies. In an increasingly integrated global economy, domestic firms and industries cannot be completely insulated from external competitive pressures. Trade liberalization exposes the business sector to competition from imports, provides access to new technologies and skills from abroad, facilitates the realization of economies of scale in production and stimulates industrial technological activities and competitiveness (Bhalla, 1993 and Wignarja and Taylor, 2003).Global competition is a potent force in ensuring good corporate governance. Corporate governance, which is also the outcome of the new economic policies, has significant impact and contribution towards the stimulation of competitiveness of a firm, industry and nation as a whole. Good corporate governance, complemented by a sound business environment, can strengthen private investment, corporate performance, and economic growth. Corporate governance establishes the relationship among these three groups in determining the direction and performance of the organization (Hunger and Wheelen, 1998).Corporate governance exists at a complex intersection of law, morality, and economic efficiency. The impact of market competition would be greater in firms with efficient governance structure. The substitution effect implies when corporate governance is weak; competition plays an important role as a disciplinary device forcing mangers to improve performance and reduce slack. If competition and corporate governance complements, product market competition might not alone be sufficient to reduce productive inefficiencies in an environment with poor corporate governance. Against this background, the present paper is an endeavour to examine the rationale or relevance of corporate governance in enhancing the organizational competitiveness in the realm of global competition with special reference to developing economies like India.

Objective: This study aims to investigate the effects of strategic leadership and organizational culture on organizational performance, with a focus on the mediating role of organizational innovation. Methodology: A descriptive-correlational research design was employed, utilizing structural equation modeling (SEM) based on partial least squares (PLS). Data were collected from 190 managers and experts at Iran Khodro Company using standardized questionnaires. The validity and reliability of the instruments were confirmed through Cronbach's alpha, composite reliability, and average variance extracted (AVE). Findings: The results showed that both strategic leadership and organizational culture have significant positive effects on organizational performance and organizational innovation. Organizational innovation also positively impacts performance and mediates the relationships between strategic leadership and performance, as well as between culture and performance. Conclusion: Strategic leadership and organizational culture are critical drivers of organizational performance, and their effects are significantly enhanced through organizational innovation. These findings underscore the importance of fostering innovation as a mediating mechanism to improve performance outcomes in dynamic business environments.

- Corporate governance has come to the forefront of academic research due to the vital role it plays in the overall health of economic systems. The wave of U.S. corporate fraud in the 1990s was attributed to deficiencies in corporate governance. The recent 2008-2009 global financial crisis, triggered by the unprecedented failure of Lehman Brothers and the subprime mortgage problems, renewed interest in the role corporate governance plays in the financial sector. The development of a strong corporate governance framework is important to protect stakeholders, maintain investor confidence in the transition countries and attract foreign direct investment. This paper looks at the role of corporate governance in European transition countries in their transformation to a market economy. The paper compares the different levels of corporate governance established among the transition countries. Using synthetic taxonomic measures a study is conducted to look at the degree of corporate governance development by the new EU 2004 and 2007 accession transition countries and the convergence of corporate governance regimes across the countries. Our results indicate that transition countries that are closer to the English legal origin made greater strides in capital market and corporate governance development.

Social and economic activities, like religion, entertainment, education, research, and the production of other goods and services, are carried on by different types of organizations, for example, corporations, proprietorships, partnerships, mutuals and nonprofits. There is competition among organizational forms for survival. The form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs. The characteristics of residual claims are important both in distinguishing organizations from one another and in explaining the survival of organizational forms in specific activities. This paper develops a set of propositions that explaim the special features of the residual claims of different organizational forms as efficient approaches to controlling agency problems. © M. C. Jensen and E. F. Fama, 1983 Michael C. Jensen, Foundations of Organizational Strategy Chapter 6, Harvard University Press, 1998. Journal of Law & Economics, Vol XXVI (June 1983) This document is available on the Social Science Research Network (SSRN) Electronic Library at: http://papers.ssrn.com/sol3/paper.taf?ABSTRACT_ID=94032 AGENCY PROBLEMS AND RESIDUAL CLAIMS

The fields of leadership and corporate governance have, in their own rights, become the domains of significant interest recently for academics and business practitioners alike. While they often focus on similar phenomena, they rarely interact or engage with each other. In this chapter we argue that there is much to be gained by integrating and cross-fertilizing research efforts within the corporate governance and leadership research fields. Their strengths and weaknesses mutually complement each other: leadership has been traditionally strong in highlighting significant interpersonal dynamic processes within organizations but has been biased by its attention to the middle and lower ranks of the organization. Corporate governance, on the other hand, has developed an upper echelons perspective but have been hamstrung by a preoccupation with formal, static and impersonal theoretical models. We therefore suggest that there is much to be gained by creating a theoretical rapprochement between the two fields which will have positive repercussions not only in terms of fresh empirical insights but also in terms of improving and energizing the everyday practice of corporate governance. By way of example, we highlight three important intersections at which governance and leadership processes can come together in any organization: team leadership on the board, the chair’s leadership of the board and strategic leadership by the board. We conclude by raising a number of research questions that can be profitably researched by taking both a ‘leadership in governance’ and a ‘governance in leadership’ perspective.

Small and growing businesses are considered as the primary forces for sustainable economic growth and rapid industrialization. Despite their great potential, small and growing businesses face many challenges and as a result, most of them perform dismally and are eventually edged out by competitors. Given the studies done which recognize the role of strategic leadership practices on performance, the present leaders of small and growing businesses are viewed not only to be steering their companies through the process of strategic planning, mission development, and evaluation, but also to actively handle strategic leadership practices and firm performance. The overall objective of the study was to explore the impact of strategic leadership on performance of small and growing businesses in Nairobi County. The specific objectives of the study were to determine the influence of strategic direction, core competencies, human capital development and sustaining organizational culture on the performance of small and growing businesses in Nairobi County and to further establish the moderating role of operating environment on the relationship between strategic leadership and performance of small and growing businesses in Nairobi County. This research was based on five theories namely: strategic leadership theory, path-goal leadership theory, trait theory, performance maximization theory and contingency theory. To satisfy these objectives, both descriptive and explanatory research design were adopted. The population of this study was all the 1539 small and growing businesses in Nairobi County’s Central Business District. Stratified random sampling was used as the sampling design while Yamane formula was used to compute the sample size of 318 SGBs. A self-administered questionnaire was used as the major tool for data collection. Both Google forms and hard copy questionnaires were used to collect data. The questionnaire consisted of three sections focusing on general information about the respondent and the organization, strategic leadership and actions that are geared towards performance and finally the level of organizational performance. Descriptive and inferential statistics were utilized for data analysis purposes. The study achieved a response rate of 66%. The study found that strategic direction, human development, and organizational culture have positive and significant effect on organizational performance with p values 0.000, 0.025 and 0.019 respectively while core competencies were found to have a positive but non-significant effect with p value being 0.053. External environment was also found to have a significant moderating effect on the relationship between strategic leadership and organizational performance. The study concluded that strategic leadership is an important aspect in any organization as it leads to improved organizational performance. Keywords: Strategic Leadership, External Environment, Small and Growing Businesses, Strategic Direction, Core competencies, Human Capital Development, Sustaining Organizational Culture

Beşeri sermaye faktörlerinden sağlık, ekonomik büyümeye etki eden bir unsur olarak ifade edilmektedir. Sağlık düzeyindeki gelişimin; nüfus, eğitim, işgücü verimliliği, yaşam süresi ve yaşam kalitesinin artmasıyla, gelecekte ortaya çıkabilecek hastalıkları önleyerek ekonomik istikrar ve büyüme üzerinde belirleyici bir etkisi ortaya çıkabilir. Yapılan araştırmalarda çoğunlukla sağlık ile ekonomik büyüme arasında çift yönlü ilişki tespit edilmesine rağmen, bazı çalışmalar bir ilişki olmadığı sonucuna da ulaşmaktadır. Çelişkili bulguların nedeni, çalışmalarda ülkeler arasındaki sağlık politikası farklarının göz ardı edilmesi olabilir. Literatürdeki diğer çalışmalardan farklı olarak bu çalışma, aynı sağlık politikası uygulanan bir ülkenin bütün illeri örneğinde sağlığın ekonomik büyüme üzerindeki etkisini panel veri analiz yöntemi ile araştırmaktadır. Bu amaçla Türkiye’nin bütün illerini kapsayan 2007-2017 dönemindeki gayri safi yurtiçi hâsıla, bebek ölüm hızı, hastane yatak sayısı, kamu yatırımları, ithalat, ihracat, lise mezunu ve lisans mezunu kişi sayısı değişkenlerini içeren model, sistem GMM analiziyle tahmin edilmiştir. Ulaşılan bulgulara göre, eğitim değişkenleri sağlık değişkenlerine göre ekonomik büyümeye daha fazla katkı sunmakla birlikte, sağlığın eğitim ve ekonomik büyüme için bir ön koşul olduğu gerçeği göz ardı edilmemelidir.

Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.

Background: Corporate governance's influence on the efficiency of accounting information systems (AIS) has emerged as a key research topic in the quickly changing business landscape. Additionally, in emerging economies like Jordan, where companies must conform to local regulatory requirements while also aligning with international financial standards, the relationship between corporate governance and AIS is especially important. Objective: This study aims to ascertain the role it plays in corporate governance (CG) on the development of accounting information systems (AIS) in Jordanian companies through organizational performance (OP) as a moderating.Methods: The study employed a quantitative research approach to investigate the role of CG in the development of AIS in Jordanian companies, with OP as a moderating variable. A structured questionnaire was developed, consisting of items adapted from existing validated scales. The research employed a quantitative research approach to investigate the role of CG in the development of AIS in Jordanian companies, with OP as a moderating variable. PLS-SEM was applied to examine the relationships between the variables. Also, bootstrapping analysis was performed to test the significance of the path coefficients and to validate the hypotheses. Results: The result indicates a highly significant relationship between CG and AIS. Also, the result indicates a highly significant relationship between OP and AIS. However, the result indicates OP moderates the relationship between CG and AIS. Conclusion: The statistical measures demonstrate the significance and directionality of these relationships, contributing to a better understanding of the research context.

Firms operating in dynamic business environments where political instability, high level of market complexity, financial ambiguity, and risk dominate the whole market must develop special capabilities to gain competitive advantage or even survive. Among these capabilities, strategic flexibility enables firms to dynamically manage their resources for adapting to high-velocity environments and reducing risks, and it also helps firms exploit the full potential of their key resource stocks. Strategic flexibility allows firms to respond quickly to unstable environments and act promptly when it is time to halt or reverse existing resource commitments. In order to establish a flexible organization, firms scan environment thoroughly and make their investment decisions and determine their priorities according to existing situations and future environmental precautions. Strategic flexibility can play a critical role for firms to reduce the risk by offering agile and prudent solutions in volatile environments. Yet, implementation of these decisions and objectives is subject to senior management’s determination. Therefore, an implementation leadership style can also be vitally important to achieve “risk reduction”-related objectives. Strategic leadership that initiates the alignment of people to strategy may enable the implementation of risk management practices in the firm. This chapter explains the effects of strategic flexibility and implementation leadership on reducing risk in high volatile markets.

Purpose - Corporate governance is a crucial aspect of creating a corporate culture that emphasizes transparency, fairness, and openness. The COVID-19 pandemic has caused a global financial crisis, which has increased attention to corporate governance issues. In light of this, the objective of this study is to examine the impact of corporate governance on the sustainable organizational performance of the banking sector in Pakistan particularly in the context of COVID-19. Study Design/Methodology/Approach - This research analyses the annual reports of sample banks and uses secondary data from 2016 to 2022; therefore, there is no doubt about the reliability and validity of the data. This study measured firm sustainable financial performance based on accounting data, using return on assets, return on equity, and earnings per share. The suggested model was investigated by the generalized method of moments through the Arellano-Bond Dynamic Panel-Data estimator. Findings - The overall findings of the study reveal that corporate governance components such as board size, audit committee independence, number of board meetings, and chief executive officer duality have a significant impact on organizational performance. Furthermore, the Fixed Affect model indicates that CEO duality has no discernible effect on organizational sustainable performance, while board size, audit committee independence, and the frequency of board meetings all positively affect it. Practical and theoretical implications- This study has implications for all stakeholders of the banking system, economic policymakers, and academicians by highlighting the importance of components of corporate governance that enhance overall organizational performance. Theoretically, compliance with corporate governance regulations should lower agency costs, which will improve the overall business's performance now and in the future. Originality/Novelty- This study indicates that the use of corporate governance practices enhances and improves the overall sustainable performance of the banking sector. This study adds value to the existing body of literature by considering corporate governance and its association with organizational performance, particularly from the COVID-19 perspective.

Responsibly led boards of directors make it possible for modern companies to survive and prosper under conditions of change. Despite the importance of boards of directors, their activities are often lionised or vilified by shareholders and stakeholders which obscures how boards enact responsible leadership. Responsible Leadership in Corporate Governance: An Integrative Approach introduces an integrative model of responsible leadership in governance that positions the board as a nexus of all corporate participants. In this model, responsibly led boards seek to make decisions in the best interests of the modern company as an entity that operates in a dynamic business environment. This book provides a timely focus on in-depth cases of board led responsible leadership. Examining boards of directors in listed companies, state-owned enterprises, and private companies, the book connects insights from corporate governance and leadership to behaviours that affect boards’ relationships with shareholders and stakeholders. In addition, these insights underscore key requirements and challenges of responsible leadership in governance: from the importance of purpose and the crucial role of value creation to the difficulties of ownership transition and accountability. Far-sighted and experienced-based, this book will not only help students connect to real world situations but also will benefit those that interact with and support boards of directors.

Organizational dynamic capability and entrepreneurship strategy are two aspects that have contribution in affecting organizational performances particularly by means of knowledge management and strategic leadership. There is a need to identify this presumption, thus current research in this paper were employed in the General Public Hospitals in Makassar in the Provinces of South Sulawesi (Indonesia). Previous research has uncovered important factors of organizational performance such as knowledge management, strategic leadership, dynamic capability, entrepreneurship strategy. Nonetheless they require further conceptual depth and empirical assessment as it remains unclear how these factors holistically affects critical performances in organizational performances. In this paper, we developed the structural model including the introduction of knowledge management and strategic leadership and the more established relationship between dynamic capability and strategic entrepreneurship with organizational performances as a means to understand their interrelatedness and feasibility on improving the body of knowledge in current literature. Keywords - Knowledge Management, Strategic Leadership, Dynamic Capability, Entrepreneurship Strategy, Organizational Performance

This study aims to investigate the impact of strategic management on organizational performance through the mediating role of strategic leadership, using evidence from institutions affiliated with Iraq’s Ministry of Higher Education. This applied, descriptive-correlational study involved a statistical population of 2,200 employees across Iraq’s Ministry of Higher Education institutions. Based on Morgan’s table, 327 participants were randomly selected and surveyed using three standardized instruments: Hill and Jones' (2007) Strategic Management Questionnaire, Lear et al.'s (2012) Strategic Leadership Scale, and Hersey and Goldsmith’s Organizational Performance Questionnaire. Data were analyzed using SPSS-27 and SmartPLS-3 software, employing both confirmatory factor analysis and structural equation modeling. Structural modeling results revealed a significant and positive relationship between strategic management and organizational performance (t=12.32, p<0.01). Strategic management was also positively linked to strategic leadership (t=14.15, p<0.01), and strategic leadership significantly influenced organizational performance (t=9.63, p<0.01). The Sobel test confirmed that strategic leadership plays a mediating role in the relationship between strategic management and performance (Sobel=4.14, p<0.001). The findings demonstrate that enhancing both strategic management and strategic leadership can significantly improve organizational performance. The study underscores the strategic value of leadership in amplifying the effects of management initiatives, particularly within Iraq's higher education institutions.

Impacts of carbon market and climate policy uncertainties on financial and economic stability: Evidence from connectedness network analysis