Aspects Of Corporate Governance Research Articles

Pengaruh ESG terhadap Kinerja Perusahaan: Moderasi Board Gender Diversity

Company performance is a metric in assessing the level of success of a company in a certain period. to maintain good company performance, companies need to manage core business, namely building good relationships with stakeholders. For investors as stakeholders, the availability of information presented by the company is very important to decide on the right capital allocation and avoid the risks that occur. With the encouragement from the government and investors as stakeholders, more and more companies want to provide a clear picture of corporate practices and responsibilities, one of which is by disclosing environmental, social and corporate governance (ESG) aspects. The purpose of this study to provide empirical evidence regarding the influence of ESG on company performance, provide empirical evidence regarding the role of board gender diversity on the influence of ESG on the performance of companies listed on the Stock Exchange in Indonesia and Germany in 2018-2022. The sampling technique in this study was purposive sampling. Data was taken from Thomsonreuters and this study used panel data regression analysis with STATA 17. The results of this study found that ESG has no effect on company performance in Indonesia. The results of further research found that ESG has a negative effect on company performance in Germany. This study found that board gender diversity plays a role in encouraging ESG activities to improve firm performance in Germany.

Does the gender diversity of the Board of Commissioners, Family Ownership, and Institutional Ownership Reduce the Likelihood of Financial Distress During COvid-19?

The purpose of this study is to investigate the effect of the gender diversity of the board of commissioners, family ownership, and institutional ownership on the possible financial distress of Indonesian public manufacturing companies during the COVID-19 pandemic and non-pandemic periods. This study uses logistic regression panel data to determine the effect of the three aspects of Corporate Governance (CG) studied on financial distress. A total of 648 company-year observations from 108 companies during the period 2017-2022 were used in the analysis. Research findings indicate that in non-pandemic periods, family ownership has a positive effect on financial distress, but the positive effect decreases during pandemic periods. Institutional ownership has a negative influence in the non-pandemic period and that influence has not changed during the pandemic period. Meanwhile, the gender diversity of the board of commissioners does not affect financial distress in either the pandemic period or the non-pandemic period. This report provides insights for company management and regulators in developing CG mechanisms, especially related to the board of commissioners' gender diversity, family ownership, and institutional ownership.

Juridical Analysis Of The Commissioners Of Limited Liability Companies Who Exercise The Authority Of The Executive Board Of Directors In Terms Of Good Corporate Governance Aspects

This study aims to explain the legal basis and functions of organs in a Limited Liability Company (PT) and identify the legal impact on PT organs that carry out the duties and authorities of other organs. In the global context, Good Corporate Governance (GCG) is the key to the company's success for long-term growth and business continuity. The economic crisis in Asia and Latin America in 1999 was attributed to the failure of GCG implementation. The research method used is normative juridical with an analytical descriptive approach. The two main approaches used are the statutory approach and the conceptual approach. The results showed that the executive actions of Commissioners in PT require approval from the Board of Directors with a power of attorney, maintain legality and implement the principles of Good Corporate Governance. The Bank as a third party also requests a power of attorney to ensure the legality of the applicant who is a Commissioner. Research reveals the legal basis for the establishment of a PT stipulated in Articles 36-56 of the Criminal Code and Articles 1233-1652 of the Civil Code. This research contributes to understanding the importance of GCG implementation and the legality of the Commissioners' executive actions in maintaining the integrity of the company. The results of the research are expected to be the basis for companies and regulators in improving good corporate governance.

Investigating the Impact of Corporate Governance on Financial Performance and Firm Value Prior To And During the Covid-19 Pandemic

Objective: This study aims to compare the impact of Corporate Governance on Financial Performance and Firm Value before and during Covid-19 Pandemic. Theoretical framework: This research is based on stakeholders and shareholders who also have rights to what they have provided to the company. Method: The study focuses on companies listed on the Indonesia Stock Exchange, analyzing the period from 2018 to 2021, which limits its scope to these entities during and before the pandemic. Utilizing ordinary least squares regression analysis through STATA, this study includes data from 146 companies. Results and conclusion: The results indicate that company size favorably influenced Financial Performances and negatively affected Firm Value during the pandemic. However, aspects of Corporate Governance, including the board of directors, the size of the board, independent directors and the audit committee, had no significant impact on the Financial Performance of the company's value during this period. Before the pandemic, the audit committee negatively affected Firm Value, company size was favorably correlated with Financial Performance and company age favorably influenced Firm Value. However, other elements of Corporate Governance, such as the board of directors, board size and independent directors, did not significantly affect the Financial Performance of the company's value. Implications of the research: This research offers important insights for companies in seeing how firm-related factors can lead to firm value in the capital market. Originality/value: This study contributes to the understanding of the relationship between Corporate Governance, Financial Performance, and Firm Value in the context of the COVID-19 pandemic.

Corporate Sustainability and Corporate Value

In recent years, the concept of sustainable development has gradually lodged itself in the public mind, and there is increasing emphasis on companies’ performance in environmental, social, and corporate governance (ESG) aspects. This paper empirically investigates the impact of corporate ESG performance on firm value based on all A-share listed companies in China from the first quarter of 2015 to the fourth quarter of 2020 as the initial research sample. The research results indicate that the better the corporate ESG performance, the higher the firm value. The study provides clear insights: firstly, ESG performance can enhance firm value, revealing that ESG can reduce information asymmetry and reduce financial risks for enterprises. Secondly, ESG performance is an endogenous driving force for companies to promote environmental protection, social responsibility, and corporate governance construction, prompting companies to establish a sound ESG information disclosure system. Thirdly, it provides crucial evidence for ESG investors, compelling corporate managers to pay more attention to the impact of ESG management principles on the company and consider the company's future sustainable development.

The power of good corporate governance in activating the impact of internal information quality on tax savings

PurposeThis paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.Design/methodology/approachThis study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports.FindingsBased on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests.Research limitations/implicationsThis examination utilizes only publicly traded companies from one developed country.Practical implicationsFor the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future.Originality/valueThis study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.

Sustainability reporting in focus: analysing Spanish transposition of the Non-Financial Reporting European Directive in the agri-food sector

AbstractIn recent decades, the business world has undergone a paradigm shift, prioritizing social and environmental considerations over the exclusive pursuit of economic profits. Corporate social responsibility has become an essential practice, and Sustainability reports (SRs) play a crucial role in facilitating the disclosure of these practices. In the European Union (EU), Directive 2014/95/EU (Non-Financial Reporting Directive—NFRD) was enacted to compel companies to disclose information on matters addressing social, environmental, ethical, and corporate governance aspects. Spain transposed this directive through Law 11/2018, considered one of the strictest in the EU. This study aims to explore and analyse its impact on the agri-food sector. For this purpose, the SRs of 16 agri-food companies that used the Global reporting initiative standard before and after the enforcement of Law 11/2018 were evaluated applying content analysis along with repeated measures ANOVA. The results show a low level of disclosure for both periods and that Law 11/2018 does not succeed in improving the level of disclosure. This suggests that legislators should develop regulations that ensure the usefulness of the disclosed information and that companies should be more involved in the preparation of SRs.

Digital accounting system and its effect on corporate governance: An empirical investigation

AbstractThis empirical investigation explores the impact of the digital accounting system (DAS) on corporate governance (CG). The rapid advancement of technology has revolutionized various aspects of business operations, including accounting processes. The transition from traditional manual accounting systems to digital platforms has been accompanied by significant changes in corporate governance practices. This study aims to investigate the influence of DAS effectiveness (bookkeeping system, DAS security, IFRS adoption, and budgeting system) and the success of DAS (system quality, information quality, and service quality) on CG. The study determined the relationship by conducting a questionnaire survey of 264 senior managers, accountants, and department heads of pharmaceutical companies in Yemen. Partial Least Squares (PLS) was used for data analysis. The results supported all assumed relationships except the relationship between the budgeting system and CG. Specifically, unlike all supposed relationships, the budgeting system had no significant impact on CG. Despite the fact that prior studies have investigated these issues from different aspects in developed countries, the evidence in less developed countries is still unknown. Further, revisiting DAS and CG aspects with different new insights and measures, particularly bookkeeping system, DAS security, IFRS adoption, budgeting system, system quality, information quality, and service quality, has not been the subject of prior studies. As a result, the present study bridges a serious gap in the existing stock of knowledge in DAS and CG studies. Moreover, this piece of research has useful implications for managers, investors, practitioners, academicians, and decision‐makers.

The concept and essence of corporate governance

The article is devoted to the study of the basic concepts and essence of corporate governance. The main aspects of corporate governance are characterized, including its objectives, functions, principles, structure and role in the stable functioning of enterprises. It is determined that corporate governance can be viewed as a set of legal, economic, organizational norms and rules within which a corporation (company) operates, and on the basis of which the relations between all its participants are built. Corporate governance unites various participants in corporate relations, each of which takes care of its own interests, establishes mechanisms and methods of interaction between them. It is highlighted that most studies related to corporate governance have a rather narrow focus and are conducted exclusively at one of these levels. The issue under study is multifaceted and also includes the definition of functions and components of corporate governance, which include: creating a strategy and setting goals, ensuring financial stability, ensuring transparency and compliance, and facilitating interaction with stakeholders.

ESG as an Important Factor of Company Profitability and as a Moderation of Corporate Value

Environmental, social, and corporate governance (ESG) aspects are currently one of the important things that investors consider. This is related to the company's efforts to participate in protecting the environment to achieve sustainability. The ESG aspect is expected to be able to increase profitability which later with ESG can also affect company value. The purpose of this study is to analyze whether ESG can affect company profitability and firm value as well as moderate profitability to firm value. Samples were selected using a purposive sampling technique which was then analyzed using linear regression. The research object is a company listed on the Indonesia Stock Exchange from 2016 to 2021 that already has an ESG score, the data of which was obtained from Bloomberg. The results showed that ESG had no effect on profitability and firm value, profitability had a significant effect on firm value, and ESG had not been able to moderate profitability on firm value. The results of this study have implications that ESG aspects need to be aligned with company goals and improvements to all ESG aspects also need to be done. ESG is not only carried out to fulfill regulatory requirements.

Does corporate governance and balance sheet feature influence the financial policy of cooperatives? PLS-SEM approach.

Effective financial policy minimizes business risk, increases the net present value of the Company's investment programs and increases value for shareholders. However, the impact hasn't yet been examined in the research area. The purpose of this study is to empirically investigate, how corporate governance and balance sheet aspects affect the financial policy of cooperatives in south-western Ethiopia using the PLS-SEM model. Information covering three years from 2020 to 2022 was gathered from 145 cooperatives. The study used corporate governance and balance sheet features as the latent factors that affect the dependent variable cooperative financial policy measured by both short-term debt and long-term debt. Managerial characteristics were used as the control variables. The study discovered that corporate governance has negative and significant effect on the financial policy of cooperatives in southwest Ethiopia. The study also revealed that balance sheet features have significant and positive effect the financial policy of cooperatives in southwest Ethiopia. Additionally, managerial characteristics' have a significant impact on the financial policy and balance sheet features but have no impact on the corporate governance of cooperatives. The study concludes that the financial policy of cooperatives in southwest Ethiopia is significantly influenced by all aspects of corporate governance, balance sheet features, and management characteristics'. The study advises cooperatives to consider managerial characteristics', corporate governance, and balance sheet characteristics while establishing their financial policy.

Effect of Female board member on firm Performance: Evidence from Pakistan

This study examines the impact of women on boards as corporate governance on corporate performance, with a focus on evidence from Pakistan. The study used a sample of 100 non-financial corporations listed on the Pakistan Stock Exchange, selected using a dedicated sampling methodology and covering the period from 2010 to 2019. The results of the survey shown that women board members have a significant impact on the company's performance, indicating that women have effective management skills in asset management and related activities. The literature unanimously supports the idea that the presence of women on boards of directors has a significant impact on company performance. The importance of this study lies in the fact that it explores the different dimensions of women on boards of directors as aspects of corporate governance, providing valuable insights into the decision-making process of investors. In particular, the study contributed to the literature by addressing gaps associated with emerging economies, particularly in Pakistan, as most existing research focuses on developing countries.

Influence of corporate governance on exit time: evidence from French zombie firms

Purpose This study investigates the connection between corporate governance and zombie firm’s exit time. Design/methodology/approach With a sample of 2,794 French zombie firms, the analysis focuses on four aspects of corporate governance: board size (BS), managerial ownership (MO), director turnover (DT) and ownership concentration, using tobit regression. Findings Dimensions of corporate governance have an important role in determining zombie firms’ exit time. MO and ownership concentration increase zombie firm exit time, whereas larger BSs and DT reduce it. Originality/value To the best of the authors’ knowledge, this study is the first to include corporate governance as a characteristic relevant to zombie firms’ exit time. It provides new insights on why some zombie firms remain in the market longer than expected.

Governance and Social Responsibility: Palestinian Investment Fund

The study aimed to assess the influence of corporate governance on social responsibility, applied on the Palestinian Investment Fund. The study utilized a quantitative analytical approach and gathered essential data from the Investment Fund's annual financial reports spanning the period from 2006 to 2020, available on its official website. The content analysis method, employing a checklist for measuring the social responsibility disclosure index, was applied to the annual financial reports. Data processing was carried out using SATAA. The study's findings revealed that corporate governance, particularly in its dimensions of board size, double CEO, independence, and gender diversity, significantly impacted social responsibility across dimensions combined, including society, environment, employees, customers, and the quality of service. However, the educational background dimension did not exhibit a notable effect on social responsibility. As a result of the research, it was recommended that organizations conduct annual assessments of corporate governance performance, making comparisons with previous years. Moreover, institutions were advised to provide comprehensive financial statements along with complementary explanations. This practice is deemed crucial for decision-makers and stakeholders, enabling them to obtain a clear understanding of the organization's status and system concerning various aspects of social responsibility and corporate governance.

Enterprise Transformation in the Digital Age

In recent years, digitization has been applied to varying degrees across different industries. With the advent of the digital era, accounting practices are undergoing significant transformations. This article explores the impact of digital transformation on traditional accounting, emphasizing the role of digital technology in enhancing financial decision-making efficiency, accuracy, and automation. Block chain technology is thoroughly examined to explain how it provides a distributed ledger, enhancing transparency and tamper resistance, and altering transaction execution through smart contracts. However, digital accounting faces a series of challenges, including issues related to data privacy, security, and the need for employee training. The article underscores the new requirements imposed on accounting professionals in the digital age, encompassing technical skills, communication abilities, and innovative thinking. Additionally, sustainable development in accounting practices is being propelled by digital tools, elevating the quality of corporate reporting in environmental, social, and corporate governance aspects. Finally, through in-depth case studies, the article summarizes the experiences and lessons learned by some companies that have successfully navigated the accounting challenges of the digital era. This serves as a valuable reference for other organizations during this transformative period.

PERCEPTIONS OF MSME ACTORS TOWARDS DISCLOSURE OF SUSTAINABILITY REPORTS (CASE STUDY ON MSME BONTOLOE, TAKALAR DISTRICT)

This study aims to examine differences in the perceptions of MSME actors on sustainability reporting disclosures. This difference in perception will be tested on environmentally sensitive MSMEs and non-environmentally sensitive MSMEs. Differences in the perceptions of MSME actors will then be tested on the compliance aspect; aspects of understanding sustainability; sustainable corporate governance aspects; aspects of political, environmental and social sustainability performance; and aspects of the economic performance of SMEs. The research population is the research sample used, consisting of 120 MSME actors consisting of 10 service MSMEs and 110 non-service MSMEs. The research data was processed using SPSS 25. The results of the study showed that there were significant differences in aspects of sustainable understanding, aspects of political, environmental and social sustainability performance, and aspects of economic performance between environmentally sensitive MSMEs and non-environmentally sensitive MSMEs, but there were no differences significantly to the compliance aspect and sustainable corporate governance aspects.

Development Status and Management Experience of Corporate Carbon Management in the Dual Carbon Background: A Case Study of Huayin Power

In order to address global environmental issues such as climate change, countries around the world have introduced climate change policies, such as the Kyoto Protocol and the Paris Agreement, to limit global carbon emissions. China has actively responded to climate change and other political and economic issues and proposed the "Dual Carbon" strategy in 2020, vigorously developing clean energy and promoting the green and low-carbon transformation of industries. This paper analyzes the impact of "carbon trading" on the "carbon management" of Hua Yin Electric Power from the perspective of ESG analysis, focusing on the environmental, social, and corporate governance aspects. The study aims to summarize the management experience of Hua Yin Electric Power in "carbon management" and provide reference for further optimizing and improving the "carbon management" in the power industry. Hua Yin Electric Power, as a leading company in the power industry, is representative and has reference significance for the optimization and improvement of "carbon management" in the power industry.

SYSTEMIC-INNOVATIVE APPROACH TO CORPORATE GOVERNANCE: ASPECTS OF SUSTAINABLE DEVELOPMENT AND TIME MANAGEMENT

This paper addresses the challenges faced by transport and logistics enterprises in the context of armed conflicts and operational restrictions. It explores the significance of innovative governance and sustainable development in this context. The role of road transport enterprises in the recovery and sustainable development of the country is highlighted, along with the importance of corporate time management and the integration of sustainable development principles to achieve efficiency and sustainability in the face of challenges. Theoretical research of existing approaches to corporate governance is conducted, emphasizing the importance of innovative management and sustainable development for enterprises. It identifies the absence of an innovative-oriented corporate governance system and the necessity for a comprehensive approach that combines sustainable development, time management, and innovative practices to achieve balance in corporate governance systems within the transport and logistics sector.
 The objective of this work is the development of a model for an innovative-oriented corporate governance system at road transport enterprises based on the integration of sustainable development principles and effective corporate time management. The enhanced corporate governance system, within the context of transport and logistics enterprises, is designed according to external environmental factors and incorporates key aspects of corporate governance. The influence of the external environment on the construction of corporate governance systems is grounded in the examination of economic, socio-political, and environmental factors that shape strategic approaches and corporate functioning. The management object is the transport and logistics sector enterprise, which requires effective management of its activities and resources for sustainable development. The management subject includes the leadership and owners of the enterprise, responsible for strategic planning, policy development, and their practical implementation.
 The proposed corporate governance system, based on a systemic approach, includes essential subsystems: strategic innovative management to ensure sustainable development, environmental management, social management, economic management, innovative management, supply chain management, stakeholder engagement, and functional subsystems. Functional management encompasses overseeing different functional areas, such as finance, marketing, production, among others. Each of these subsystems has specific tasks and interconnections to facilitate effective management and achieve the strategic objectives of the enterprise. The suggested corporate governance system will assist road transport enterprises in ensuring sustainable development, optimizing resource management, and maintaining competitiveness in a dynamic external environment.

A critical examination of the 2016 Code of Corporate Governance of Mauritius and its enshrinement in the Companies Act 2001

PurposeThe purpose of this study is to provide for critical literature on the legal aspects of corporate governance and their application in Mauritius. The drawbacks of having the principles in the form of a non-binding code are discussed, and a case is made to consider their enshrinement in laws such as the Companies Act 2001 to render them legally enforceable for the good health of companies in Mauritius.Design/methodology/approachA doctrinal legal methodology has been adopted to assess the effectiveness of the principles of the 2016 Code of Corporate Governance of Mauritius. Legislations, legal texts, case law and regulations are used to conduct this assessment. In addition, a black-letter approach is taken while discussing the enshrinement of the principles in the Companies Act 2001 of Mauritius. The doctrinal methodology is further supported by a qualitative analysis of the principles of corporate governance based on existing legal literature, which emphasises their relevance and importance.FindingsThe principles of the 2016 Code of Corporate Governance are no doubt a progress over the former 2004 Code in various aspects, aligning the Code with the requirements of the OECD. However, there are still certain loopholes that have been highlighted. In addition, the extent to which these principles are reflected in the Companies Act, which is the primary legislation for companies, has been found to be lacking and inadequate.Originality/valueThis paper is, to the best of the author’s knowledge, the first legal literature concerning the Mauritian legal framework on corporate governance. This is relevant because the country has recently experienced corporate collapses, which could arguably have been avoided with the application of the principles of corporate governance. As such, the paper will present a case study that can be used as a reference for future research on the enforceability and justiciability of these principles.

Starting from a Cottage, One Will Succeed in Ten Thousand Bones, Pleading Guilty to the Thorn, Huigen has Already Repaired the Golden Body

In recent years, financial fraud incidents in the capital market have occurred frequently. Among them, not only the "Shuangkang incident" that caused a sensation in the Chinese capital market, but also the counterfeiting incident of Ruixing Coffee, a Chinese concept stock that caused a sensation in the US capital market. While the fraudulent amount of 2.2 billion yuan exploded, it also sounded the alarm for all listed companies. In the face of major risks and setbacks, and facing a market that is also full of uncertainties, Ruixing quickly took the blame, adjusted its strategy and recharged, and bottomed out after going through the trough. For this reason, this article conducts an in-depth analysis and research on the case of Ruixing’s financial fraud after bottoming out, and analyzes Ruixing’s defects in handling financial issues from the aspects of financial compliance, financial management, strategic accounting, and corporate governance. Provide corresponding reference and reference for other listed companies in my country in dealing with financial aspects. This article first analyzes the status of Ruixing Company and the case study of financial fraud to provide a background basis for the following analysis, and then analyzes the internal reasons of the company and the external environmental factors of the overseas market that caused Ruixing’s financial fraud from the perspective of financial compliance, and finally combines the above reasons Carry out corresponding suggestions and countermeasures for financial compliance in the process of overseas listing of Chinese companies; then from the perspective of financial management, combine financial management theory with Ruixing's solution to bottoming out and rebound, and finally come up with relevant responses from regulatory agencies, creditor's rights, and shareholders Measures; From the perspective of strategic management accounting, first compare with Starbucks’ five-force model, and draw the corresponding measures taken by Ruixing in terms of market analysis and departmental cooperation; Deal with the demands of internal contention, and then provide corresponding policy recommendations from four aspects.