Dimensions Of Governance Research Articles

Public Water System Governance in Rural Montana, USA: A ‘Slow drip’ on Community Resilience

Recent waves of U.S. federal waterworks investments aim to repair material as well as socioeconomic deficits. Yet a growing recognition of the central role of local capacity in successful water resources and infrastructure governance raises questions about the extent to which such investments will engender more resilient rural communities. Synthesizing resilience theory with the drinking water governance literature, we use qualitative methods to assess the social, economic, and environmental dimensions of public water system governance in a case study of six small towns in an agricultural region. We find that shortfalls in local social and economic capital constrain localities from adapting to environmental vulnerabilities, and that the current policy environment exacerbates—rather than ameliorates—tradeoffs between community capitals. In addition to funding increases for rural infrastructure deficits, this study implies that process reform in water quality compliance and financial assistance program delivery will also be needed to bolster rural community resilience.

Good governance and the us tourism demand

Our research empirically examines the impact of good governance on the US tourism demand over the period 1999–2020. We use a data set of 13 different tourism markets to avoid any aggregation bias while controlling for economic and political factors. Our empirical results show that two dimensions of governance, i) the political stability and absence of violence/terrorism and ii) government effectiveness, exert a statistically significant positive impact on the US tourism demand. We also find that the party in control of the White House has a statistically significant influence on tourism demand. These empirical findings have several implications for accurate demand forecasting as well as developing sustainable tourism policies.

중국 상장기업의 ESG 경영과 이익조정에 관한 연구

This study analyses the relationship between ESG activities and earnings management of Chinese listed companies, using a sample of 2,054 firm-year observations of companies listed on the Chinese stock exchange A market from 2004 to 2018. The study conducts a multiple regression analysis for ESG index provided by Bloomberg and the level of earnings management measured through discretionary accruals. As a result of the analysis, it is found that the higher the ESG index of Chinese listed companies, the lower the level of earnings management. In addition, ESG is subdivided into three dimensions: environmental, social, and governance. As a result of analyzing the relationship between the evaluation index and earnings management for each dimension, it is found that the higher the environmental or governance index, the lower the level of earnings management. However, social index is not statistically related to the level of earnings management. This indicates that the relationship between ESG activities and earnings management can differ depending on the sub-dimensions. In the case of Chinese listed companies, in particular, among ESG activities, environmental and governance dimensions appear to be closely related to the financial reporting decision-making. This study is the first to empirically analyze the relationship between ESG activities and earnings management of Chinese listed companies. The results of this study suggest that although ESG in Chinese listed companies was recently introduced, the government's top-down policy promotion has an overall effect on the actual implementation of ESG activities.

The domestic dimension of cross-border governance: Patterns of coordination and cooperation

Contemporary debates in border studies tend to see the national level as a rather residual category. There are, however, strong arguments that the national level still plays an important role for the governance of border regions. The question is what kind of formats are in place related to coordination and networking of border regions within national settings. The aim of this paper is to provide an exploratory typology of domestic governance settings. The underlying empirical study shows a large diversity of governance patterns in thirteen European countries. A synthetic typology reveals five approaches, namely centralist, decentral and selective coordination as well as transnational and laisser-faire approaches. On this basis, the explanatory factors of the revealed governance patterns are discussed. The state structure (federal, centralist) plays an important role. Moreover, contingent political strategies, embedded in political culture and path dependency, help to understand the differences and the similarities between the analysed countries. The domestic governance dimension seems to bridge the frictions between the rather classical inner-state hierarchies and the soft networking tools of cross-border governance in the strict sense.

The impact of ESG performance on debt financing costs: Evidence from Chinese family business

In China, family business is an important part of private economy. This paper studies the impact of China's family business's ESG performance on debt financing costs. We find that: ESG performance of family business can obtain the support of creditors and reduce the cost of debt financing; The performance of family enterprises in social dimension and corporate governance dimension can reduce the debt financing cost of enterprises; ESG performance can significantly reduce the debt financing cost of family business when the family business is in the owner management stage, the children's cultivation and development stage, and the power transfer stage.

Governance approach to policy implementation challenges and sustainable development: Conceptual implications from the Nigerian case of TraderMoni empowerment scheme

Policy processes in developing societies have been challenged by contending political factors. Hence, attainment of intervention schemes and sustainable development of the policy regime in Nigeria is in dares need of a sound governance policy framework. The purpose of this study was to assess the application of sound governance approach in the Implementation of Trader Moni Scheme (TMS) of Nigeria targeted at empowering local traders, to understand the policy processes and ecology, and the results within the framework of sound governance and sustainability indicators. Eight (8) persons were involved in Focus Group Discussions while 15 persons drawn from selected TMS target beneficiaries were interviewed. Findings revealed that the scheme did not adapt to sound governance dimensions—process; structure; management and performance; and ethics, accountability and transparency. Hence, it concluded that it derailed from the core objective of empowerment for sustainable socio-economic development, validating the papers arguments.

Corporate governance as antecedents and financial distress as a consequence of credit risk. Evidence from Iraqi banks

This study examines the antecedents and consequences of credit risk (CR) in Iraqi banks' context from 2011 to 2020. POLS, FEM, and REM regression estimators were used to test the hypotheses after obtaining an appropriate model. The hypotheses test findings on CR antecedents reveal that the board's financial expertise, risk management committee, and foreign ownership have a negative impact on CR. Meanwhile, the results show an insignificant effect on CR of board independence, audit committee, institutional ownership, governmental ownership, and managerial ownership. Concentrating on the consequence of CR, the results stated that CR influenced financial distress (FD) positively. Finally, ownership concentration (OC) as moderating interacts with the association between CR and financial distress. The study enhances the knowledge and implications of the theory used for corporate governance dimensions. It provides feedback to regulators and policymakers on the effectiveness of corporate governance mechanisms regarding CR control. The study also offers the Iraqi regulators and policymakers evidence of the harmful impact of CR on financial distress, necessitating their protection of bank investors from such situations by improving established credit rules and laws. This study contributes to the existing body of knowledge by investigating the antecedents and consequences of credit risk in the banking sector. This study also took a further step by examining the moderating role of ownership concentration between CR and FD.

Sustainability and firm performance: the role of environmental, social and governance disclosure and green innovation

PurposeThis paper aims to determine whether financial performance is affected in firms adopting separately or jointly two sustainability tools (green innovation and environmental, social and governance reporting (ESG)).Design/methodology/approachThe empirical study examines a sample of 211 S&P 500 firms over the 2011 to 2019 period and uses the quantile estimation method.FindingsThe results show that two dimensions of ESG disclosure (the social and governance dimensions) and green innovation positively affect financial performance. This result suggests that sustainability tools have a strong financial impact. The positive relationship between green innovation and financial performance is detected at the 10th quantile up to the 70th quantile. This finding suggests that financial performance needs a moderate investment in green innovation. When considering the joint effect of ESG disclosure and green innovation, our findings show that the positive impact of some ESG disclosure dimensions (social and governance) on financial performance is more observable with a moderate investment in green innovation.Originality/valueThis study highlights the prominent role of sustainability tools in financial performance. Despite the contributions of the literature, to our knowledge, the relationship between these tools and financial performance is not yet comprehensively investigated. Sustainability is less studied from the social movement perspective. This paper is among the few to study the effect of ESG reporting on financial performance in a world of green innovation.

How Does Each ESG Dimension Predict Customer Lifetime Value by Segments? Evidence from U.S. Industrial and Technological Industries

The aim of this study is to analyse the research gap regarding the relationship between environmental, social and governance dimensions (ESG) of corporate sustainability initiatives and customer lifetime value (CLV). We divide an entire data sample (547 U.S. listed firms from the Refinitiv Thomson Reuters Eikon database) of both industrial and technological industries into three segments, using prediction-oriented modelling segmentation to test the hypotheses and evaluate the predictive validity of a partial least squares (PLS) model. As a result, we show that environmental, social and governance dimensions (ESG) encompass ten sustainability initiatives that, in turn, are the precursors of future financial firm performance, represented by CLV. Moreover, we found different poor-to-medium effects of each ESG dimension on CLV in segment 1. However, a stronger effect of the social dimension on CLV in segment 3 is completed with a poor effect, both positive by governance and negative by environmental dimensions, on CLV, while only the environmental dimension had greater effects on CLV in segment 2. The contribution of this research to the body of literature is twofold. First, it deepens the impact of each ESG dimension instead of considering sustainability initiatives as a whole. Second, it evaluates sustainability initiatives with a customer-based corporate firm valuation approach.

Knowledge Components’ Effect and Interaction Effect of Dimensions of Globalization and Good Governance on Women’s Empowerment

Knowledge Components’ Effect and Interaction Effect of Dimensions of Globalization and Good Governance on Women’s Empowerment

Governance and the double-bottom-line performance of microfinance institutions: evidence from Bangladesh

PurposeThis study aims to examine the impact of governance on the double-bottom-line performance of microfinance institutions (MFIs) in Bangladesh.Design/methodology/approachThis study relies on three dimensions of corporate governance (CG) practices, that is, functions of the board of directors (BoD), top-level management activities and external governance mechanisms. This study uses panel data econometrics, particularly pooled OLS, fixed effects and two-stage system generalized method of moments to deal with potential endogeneity concerns. The panel data set covers 1,200 MFI year observations from Bangladesh for the period between 2005 and 2019.FindingsThe findings show that the presence of stakeholders on boards plays a critical role in MFIs. The dual goals of MFIs are influenced by board size, board independence and CEO duality. Internal management activities, risk perceptions and external governance also impact MFIs’ performance. Women on board have an inverse association with outreach. The activities of female managers have a significant impact on depth of outreach.Research limitations/implicationsLike many others, this study also admits the data constraint issues in microfinance research. CG data for MFI are mostly unavailable in the public domain; therefore, this study must rely on third-party data sources. This study only includes MFIs that has data for all variables of interest.Practical implicationsGovernance attributes in hybrid organizations are constituted differently. To warrant multistakeholder engagement, there is a need to develop a distinctive governance manual for hybrid organizations like MFIs.Social implicationsThis study proposes adopting a Social Director on the BoD to ensure the scope of outreach depth, given the importance of social goals in MFIs.Originality/valueThis study contributes to the ongoing debate on microfinance governance, addresses the issue based on different theoretical aspects using a country-specific data set and uses dynamic panel models to deal with potential endogeneity concerns.

Revisit the role of governance indicators to achieve sustainable economic growth of Saudi Arabia – pre and post implementation of 2030 Vision

The study's goal is to explore and scrutinize the role of governance in achieving, manipulating, and modifying sustainable economic growth in Saudi Arabia. It also highlight the role of governance measures prior and after Vision 2030, by using ARDL and dynamic ARDL simulated econometric approaches. On contrary to the existing literature, the empirical estimations have reported the adverse impact of governance effectiveness on economic growth. Further, the findings have endorsed the significant and positive impact of voice of accountability, rule of law and corruption control. Moreover, the results of post Vision 2030 have illustrated that institutional dimension of governance has substantial and positive coefficients, while political stability and governance effectiveness need to be addressed to undertake sustainable economic growth in Saudi Arabia. In turn of policy recommendations, this study empowers administration in monitoring current strategies and later decision-making.

ESG Reporting: Environmental Dimension Disclosures by Large Energy Sector Companies in India

Reporting about the Environmental, Social and Governance (ESG) dimensions of the business is fast becoming the norm for corporates the world over. Climate change is seen as the largest threat to the achievement of the UN Sustainable Development Goals. Given the importance of the energy sector and the impact it has on the environment, it was decided to explore the Environmental Dimension Disclosures (EDD) by the large energy sector (comprising of oil and gas; coal and power) companies in India. For this, content analysis of those energy sector companies was performed which have filed their Business Responsibility and Sustainability Reports (BRSR) with the National Stock Exchange of India. Filing of BRSR has been mandated for the largest 1000 companies in India by the Securities and Exchange Board of India (SEBI) from the Financial Year 2022-2023 but was voluntary for the first year (2021-2022). The study provides a detailed analysis of which questions of the BRSR relating to the environmental dimension are answered and how. The main limitation of the study is that it does not include some of the large energy sector companies since they have not filed their BRSR as it was voluntary this year. However, the detailed analysis of reporting on the environmental issues such as reduction achieved in the energy and water intensity and GHG, other emissions and waste generated with reference to turnover, has implications for policies on these disclosures including sector-specific guidelines. This is the first study based on a detailed qualitative analysis of BRSR.

The Impact of Corporate Governance Practices on Non-Performing Loans in Iraqi Banks; The Moderating Effect of Concentrated Ownership

This study aims to examine the connection between corporate governance mechanisms and non-performing loans (NPLs) using agency theory. In addition, the study examines the moderating effect of concentrated ownership (CO) between NPLs and financial distress. The study adopts a sample of 42 Iraqi banks from 2017–2021 with 210 observations. Panel estimation utilised a regression estimator to test the research hypotheses of the study. Three regression models were used to test the hypotheses after obtaining the appropriate model. Our findings showed that non-executive directors, board financial experience, and risk management committee affected NPLs negatively. At the same time, the audit committee was an insignificant effect on NPLs. Moreover, concentrated ownership as moderating interacts with the relationship between corporate governance factors and NPLs. This study enhances the knowledge and implications of the theory used for corporate governance dimensions. It provides feedback and a map through which Iraqi regulators and decision-makers can improve the effectiveness of corporate governance practices in relation to NPLs control, which should enable Iraqi regulators and policymakers to improve the corporate governance system, especially since corporate governance is a new issue in Iraq. The study also offers the researchers, academics, regulators, and policymakers' proof of the detrimental impact of CO on NPLs since this study provided an original contribution by using CO in this position. Therefore, evaluating CO as a moderating function provides several literary and theoretical insights that can be a focusing area of future studies.

Network governance institutionalization: Creating mutual value by harnessing and avoiding conflicts in interorganizational networks

Interorganizational network governance provides a set of jointly shared principles that affect the interaction among the network actors, and ultimately, the value created in the network. Past research has focused on specific network governance mechanisms and the organizations enforcing those and has paid less attention to the degree of which those mechanisms are institutionalized in the network. To bridge this gap, we develop a conceptual model with regulative, normative, and cultural-cognitive dimensions to network governance institutionalization. We hypothesize that these three dimensions have a role in facilitating or suppressing affective and cognitive conflicts, ultimately increasing or decreasing common network benefits. Testing our model on a sample of 145 firms in Germany, we find that affective conflicts are harmful for common network benefits, while cognitive conflicts are beneficial. Furthermore, we find that regulative, normative, and cultural-cognitive governance dimensions each play a particular role in facilitating or suppressing both types of conflict.

Training networks preparation for the era of COVID-19

In administrative and economic science, factor analysis models are essential for their explanatory capacity of institutional responses to risk events. The objective of this document was to contrast a model that explains the emergence of corporate governance dimensions in the face of the pandemic. An exploratory study was carried out based on a systematic review of the literature from 2020 to 2023, considering the search by keywords in Google scholar and Microsoft academic, as well as the judges from a public university in the center of Mexico. The results show that corporate identity explains the university’s response to the pandemic. In relation to the state of the art, the scope and limits of the model are discussed in other proposals.

Political determinants of health: (re) examining the role of governance in reducing maternal mortality.

Given change in the universal developmental agenda and the quality of governance in the last two decades, this paper re-examines the relationship between governance, health expenditure and maternal mortality using panel data for 184 countries from 1996 to 2019. By employing the 'dynamic panel data regression model', the study reveals that a one-point improvement in the governance index decreases maternal mortality by 10-21%. We also find that good governance can better translate health expenditure into improved maternal health outcomes through effective allocation and equitable distribution of available resources. These results are robust to alternative instruments, alternative dependent variables (such as infant mortality rate and life expectancy), estimation by different governance dimensions and at the sub-national level. Additional findings using 'Quantile regression' estimates show that the quality of governance matters more than the health expenditure in countries with a higher level of maternal mortality. While the 'Path regression' analysis exhibits the specific direct and indirect mechanisms through which the causal inference operates between governance and maternal mortality.

Corporate sustainability disclosure on social media and its difference from sustainability reports:Evidence from the energy sector

The purpose of this study is to examine the sustainability information that energy companies provide on social media and the relationship between that data and that which is shared in conventional sustainability reports. Based on stakeholder theory, we use a sample of Chinese A-share listed energy corporations in 2020 and refer to GRI G4 guidelines to conduct content analysis on their 17,451 tweets from the WeChat platform and 53 sustainability reports. The analysis results show the following: 1) both the sustainability disclosures of Chinese energy firms on WeChat platform and sustainability reports focus on investor and employee dimensions. Among them, the average proportion of investor dimension disclosure to total disclosure is 31.92% and 35.19% on social media and sustainability reports, respectively, and the average proportion of employee dimension disclosure is 27.22% and 17.92%, respectively. However, the two channels show a large difference in the environment and government dimensions. The average proportion of environment disclosure in sustainability reports is 13.44%, while on social media it is only 2.01%. Government disclosure in sustainability reports is 8.24% and as high as 20.43% on social media. (2) Chinese energy firms prefer to provide supplementary information on social media. For example, using the investor dimension as an example, the average proportion of non-GRI information on social media is 71.47%, while that of the sustainability report is only 48.56%. This study helps stakeholders to better understand sustainable information on social media.

Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities

AbstractWe examine whether board governance dimensions, carbon risks and opportunities, and environmental management affect carbon management system quality (CMSQ). Based on 1035 firm‐year observations from UK companies from 2011 to 2018, we find that internal governance is significantly related to CMSQ. In addition, firms with a heightened degree of carbon risks and/or opportunities are motivated to adopt a high‐quality carbon management system to mitigate exposure and harness opportunities. Finally, climate risk and opportunity have an interactive and complementary effect on CMSQ (i.e., both climate risk and opportunity can strengthen the effect of the other on CMSQ). This study contributes significantly to a growing body of research on how corporate governance, carbon risks and carbon opportunities may simulate proactivity of corporate sustainability in general and carbon management strategy in particular. Our results provide insights for investors, policymakers, managers and regulators on the combined effect of greenhouse gas emissions and corporate governance practice.

Challenges to implementing a sustainable strategic evaluation framework of industrial parks: Mexican case

Industrial parks are essential in driving regional development, but how and how much do they benefit their regions? These questions motivated us to develop and implement a framework to evaluate the outputs of industrial parks (I.P.). Previous research developed the integrative framework Sustainable Strategic Evaluation Framework (SSEF) based on Managerial and Contextual Governance components. Relevant indicators for sustainability make part of the framework and can be adapted to match the availability of specific/local data. In this article, we report on implementing the Contextual Governance component of the SSEF to explain the dependency influence of contextual governance characteristics upon sustainability indicators for the regional impact of I.P. By analyzing the challenges during the implementation phase of the qualitative research, we bring new knowledge that can contribute to further developing sustainable strategic evaluation frameworks of I.P. We selected the case study approach to implement the SSEF, which includes an in-depth analysis. The industrial park Guanajuato Puerto Interior (GPI) in Mexico was chosen as sustainability principles have been embedded in this I.P. since its creation. The findings of this first SSEF implementation show that the Contextual Governance component was evaluated as RED restrictive in the criteria of Flexibility and Intensity of two governance dimensions: (i) Levels & scales and; (ii) Problem perspectives & goal ambitions. The other criteria were evaluated as YELLOW moderative, and only in the criteria of Extent related to the governance dimensions Levels& scales and Strategies and instruments was a GREEN enabling evaluation. The challenges identified during the SSEF implementation were directly associated with having a clear definition of the contextual governance factors and processes that simultaneously allow the identification of data to monitor the sustainability performance of the I.P.