Governance Characteristics Research Articles

The environmental committee: corruption, accountability and sustainable supply chain transparency

PurposeThe purpose of this study is to investigate whether public governance quality (i.e. control of corruption and voice and accountability) and corporate governance strength (i.e. environmental committee existence) are influential in stimulating supply chain transparency and how these two governance characteristics interact in enhancing supply chain transparency.Design/methodology/approachOur investigation draws on a sample of 25,096 firm-year observations affiliated with the manufacturing industry in 50 countries and executes country-year fixed effects.FindingsWe find that the strength of control of corruption, voice and accountability is positively associated with supply chain transparency, supporting institutional theory. Furthermore, the environmental committee’s existence is positively related to sustainable supply chain transparency, confirming the upper echelons theory. The moderating analysis rejects the complementary effect but supports the substitution effect, confirming the negative moderating role of the environmental committee between the control of corruption and voice and accountability and sustainable supply chain transparency.Originality/valueNo empirical study has drawn on an international sample to (1) explicate the worldwide adoption of sustainable supply chain transparency, (2) link corruption and accountability to green supply chain transparency or (3) investigate how sustainable supply chain transparency is affected by the interplay of institutions and environmental management committees. Thus, we highlight the substitutive or complementary role of internal and external governance mechanisms in inciting firms toward greener supply chain management by developing a novel sustainable supply chain transparency index that draws on five indicators.

ESG Performance and Corporate Governance—The Moderating Role of the Big Four Auditors

The purpose of this study is to investigate the impact of corporate governance on ESG performance in large publicly listed firms in Indonesia from 2016 to 2023. The study adopts both stakeholder-agency theory and resource dependency theory to explore the relationship between sustainability assurance, board governance characteristics, and the extent of ESG performance. Fixed effects regression controlling both industry and year fixed effects is used to measure the relationship between sustainability assurance, corporate governance characteristics, and ESG performance. We find a positive significant relationship between assurance sustainability reports and ESG performance. Additionally, we also document a positive association between sustainability committees and ESG performance. Adopting the Big Four auditors as a moderating variable, we find a positive relationship between gender-diverse boards and firms audited by the Big Four auditors and sustainability performance. This result suggests that firms with gender-diverse boards audited by the Big Four auditors enhance sustainability performance. Additional robustness tests using GMM estimation, conducted to address endogeneity concerns, corroborated the main test results.

Research on Comprehensive Evaluation of Food Governance Sustainable Development Based on Entropy Weight Method

Based on the connotation and characteristics of food modernization governance, this paper constructs a comprehensive evaluation system for sustainable development of food governance from the three dimensions. These three dimensions include industrial development, safety risk and social co-governance. Based on the availability of data, entropy weight method is used to carry out empirical evaluation on the index data of the past three years. Variability in the index data provide suggestions for the sustainable development path of food governance in the next step.

Sustainability performance, corporate governance, and financial performance: Evidence from Poland and Central European listed companies

PURPOSE: Businesses are regarded as the main agents that can help achieve sustainable development. Therefore, more and more firms of various characteristics integrate sustainability issues into their business strategies. There is ongoing debate on the relationship between sustainability engagement and firm performance, with ambiguous results. Our study falls into this stream of research by adding the perspective of the Central European economy. The main objective of our paper is to examine the relationship between firm sustainability performance and its financial performance in the context of various corporate governance characteristics (in particular board attributes and ownership structure). METHODOLOGY: Our research sample covers firms listed on the Warsaw Stock Exchange representing various indexes (related to their size) and sectors in 2015–2021. We measure sustainability performance with our original aggregated index created by integrating key firm ESG engagement characteristics. Financial performance is analyzed from two different perspectives – accounting perspective illustrated by profitability of assets (ROA) and market perspective - illustrated by market value (MV/BV ratio). To achieve the research aims, several statistical methods were employed in the study, including selected descriptive statistics and panel regression models. FINDINGS: Our results confirm a significant positive relationship between sustainability and financial performance, as measured by ROA and MV/BV ratios. Additionally, we observe a significant positive relationship between gender diversity on the management board (the presence of women on the management board) and accounting performance. Our results provide an argument for firm engagement in sustainability initiatives, as it may improve its profitability and market value. IMPLICATIONS for theory and practice: Our study not only contributes to the corporate finance and sustainability literature by providing evidence on the relationship between sustainability performance and financial performance in the context of the Central European economy, but also provides insights for corporate governance research in terms of boards attributes and different types of ownership structures. The policy suggestions derived from our findings can benefit both managers and regulators, focusing on the sustainable development paradigm and ultimately enhancing overall stakeholder well-being. ORIGINALITY AND VALUE: The originality of our research stems from investigating the relationship between sustainability performance and firm performance from both an accounting and a market perspective and using the original sustainability index developed for the purpose of the study. Additionally, we address potential gaps in existing research by incorporating several corporate governance characteristics to clarify their importance for a firm performance.

Corporate governance and bank risk-taking: transitional economic evidence

ABSTRACT This study examines the impact of corporate governance on risk-taking in Vietnamese banks. Using data from 2007 to 2020 and employing the two-step generalized method of moments (GMM) technique, the study finds that certain aspects of corporate governance significantly influence bank stability efficiency. Specifically, the presence of female board members, independent directors, and larger board sizes are associated with improved stability efficiency, while the presence of foreign board members has a negative impact. These findings are consistent with agency theory, stewardship theory, and resource dependence theory. By employing the stochastic frontier approach, this research contributes to understanding how corporate governance characteristics can help mitigate risk-taking in emerging market contexts.

The government of Agnès of France, daughter of Saint Louis and duchess of Burgundy (c. 1260–1325)

Abstract Agnès de France (1260–1325), who was the youngest daughter of Saint Louis and Marguerite de Provence, is a little-known princess. She was, however, a remarkable political figure, whose role in government in the late thirteenth and early fourteenth centuries demonstrates the vital influence of Capetian royal women. After marrying Robert II of Burgundy (duke from 1272–1306) in 1273, Agnès became duchess of Burgundy and was involved in the administration of this duchy for over half a century. Her influence was especially significant during the rule of her sons, the dukes Hugues V (1306–15) and Eudes IV (1315–49). In light of this, it is important to try to understand how she obtained power and to delineate the characteristics of female government in this period, above all during her widowhood. The aims of this article are thus to shed new light on Agnès’ career and to explore the foundations of her power, that were interlinked with her various positions as a woman: daughter of King Louis XI, wife of Duke Robert II and mother of the dukes Hugues V and Eudes IV.

Driving SDGs contribution: governance impact in state-owned vs. private companies’ CSR reporting

PurposeState-owned enterprises (SOEs) are tools in the hands of governments for the pursuit of their political agendas. This feature is driving accounting scholars’ attention to SOEs’ relationship with the United Nations Agenda 2030. However, few contributions in literature have approached the topic. This study aims at understanding which determinants impact the contribution of SOEs to Agenda 2030.Design/methodology/approachTo analyse SOEs’ contribution to the sustainable development goals (SDGs) through their disclosures, this study adopted a panel data analysis to explore two levels of drivers impacting SOEs practices. Furthermore, to highlight SOEs’ differences from private sector entities, this study used a comparative approach.FindingsResults revealed how hybrid and private environments are differently impacting the contribution to the SDGs. Moreover, it emerged how hybridity through board characteristics impacts SOE disclosure quality.Originality/valueTo the best of the authors’ knowledge, this is the first study to empirically test how corporate governance characteristics influence SDGs’ contribution via sustainability reporting in SOEs.

BOARD ATTRIBUTES AND ENVIRONMENTAL SUSTAINABILITY REPORTING: THE INFLUENCE OF OWNERSHIP STRUCTURE

This study aims to investigate the influence of ownership structure on the extent to which the board attributes in Sub-Saharan Africa (SSA) promote environmental Sustainability Reporting. Using the dynamic panel-data estimation method, the paper uses 1,970 firm-year observations manually extracted from publicly listed non-financial firms' financial reports in SSA from 2012 to 2021. The paper finds that the block ownership structure does not significantly moderate board attributes and environmental sustainability reporting in publicly listed SSA forms. Also, Government-owned firms moderate board independence and environmental sustainability reporting. The paper further finds that foreign ownership structure influences the relationship between board gender diversity and environmental sustainability reporting in SSA. The paper finds that the relationship between board attributes and ecological sustainability reporting differs and depends on the ownership structure type. These findings imply that corporate governance reforms in the ownership structure should be implemented to improve environmental reporting in SSA. To strengthen sustainability reporting, policymakers in SSA should prioritize the development of robust regulatory frameworks and consider the nature of ownership structure since the influence of corporate governance characteristics depends on the type of ownership structure. The paper presents a new perspective on board attributes and environmental sustainability literature by uncovering the influence of ownership structure on board attributes and environmental sustainability reporting in SSA. The paper contributes to board attributes and environmental sustainability literature and holds significant theoretical, conceptual, and practical implications.

Factors Influencing Regional Government Financial Disclosure Compliance

This study analyzes factors influencing mandatory disclosure in the financial statements of Local Governments in East Java, Indonesia, , which adheres to the accrual basis of accounting. The research examines the impact of four factors: regional wealth, the educational background of local government heads, intergovernmental revenue, and population size. The sample consists of 74 financial statements from Local Governments in East Java for the years. Data were analyzed using multiple regression techniques with SPSS 20.0 software. The findings show that wealth and population size are positively correlated with the level of mandatory disclosure in local government financial statements. This suggests that wealthier regions and those with larger populations are more likely to meet disclosure requirements. Conversely, the educational background of local government chiefs and intergovernmental revenue were found to have no significant relationship with the level of financial statement disclosure. This indicates that factors related to leadership qualifications and financial transfers from the central government do not influence the compliance with mandatory disclosure requirements. These results contribute to understanding how local government characteristics affect the transparency of financial reporting, highlighting the role of regional wealth and population size in enhancing financial disclosure practices. However, further research may be needed to explore other potential factors influencing local government transparency.

Corporate Governance Characteristics And Its Effect On The Performance Of Microfinance Institutions In Ghana

Background: The study aimed at assessing the effect of some selected corporate governance characteristics on the performance of microfinance companies in Ghana. The corporate governance characteristics were CEO duality, board size, and board composition. Tobin’s Q and Return on Assets were used as proxy for firm performance. To assess whether there are other factors apart from the above that affect profitability, firm characteristics such as firm size, fixed asset over total assets and debt structure were also used as control variables. Materials and Methods: The descriptive and the GLS panel regression analysis were used to analyse the data of 25 microfinance companies spanning from 2005 to 2016 in Ghana. Results: We realized that, board size had a positive impact on ROA but it had a negative impact on Tobin’s Q. The study found a negative impact of CEO duality on Tobin’s Q and a positive impact on ROA. For board composition, the study found that there was a negative and significant impact of board composition on ROA and a positive impact on Tobin’s Q. Furthermore, firm size had a negative and significant impact on ROA. It had the same negative impact on Tobin’s Q though not significant. Asset structure had a significant positive impact on ROA but impacting Tobin’s Q negatively. On the other hand, there was also a positive impact of debt structure on ROA while impacting Tobin’s Q negatively. Conclusion: It was recommended that MFIs should be encouraged to improve all corporate governance directives in order to improve and sustain the industry

Corporate governance characteristics and involvement in ESG activities: current trends and research directions

PurposeThis study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms’ engagement in environmental, social and governance (ESG) activities. The review focuses specifically on academic papers published in ranked accounting and finance journals.Design/methodology/approachThe analysis combines a structured literature review with citation analysis, topic modeling using a machine learning (ML) approach and a manual review of selected articles published between 2000 and 2021.FindingsThis paper contributes to corporate governance and ESG literature by conducting an in-depth review, offering a comprehensive analysis of the existing findings and identifying future research directions. From the reviewed literature, this paper proposes the following thematic areas: board characteristics, ownership structure and their impact on a company’s engagement in ESG activities; CEO characteristics and their influence on a company’s involvement in ESG activities; corporate governance and ESG as sources for transparency and legitimacy; internal and external assurance of a company’s involvement in ESG activities; and gender diversity and a company’s involvement in ESG activities.Originality/valueThe study provides a comprehensive understanding of corporate governance and ESG literature. The innovative combination of methods, including ML and manual techniques, enhances the ability to identify key research topics and uncover research directions in the field. Moving forward, this paper suggests several promising directions for future research, including examining the influence of emerging technologies on ESG reporting and assessing the impact of regulatory changes and context on the link between corporate governance and firms’ involvement in ESG practices.

Toward Sustainable Water Governance? Taking Stock of Paradigms, Practices, and Sustainability Outcomes

ABSTRACTGovernance is key to ensuring the sustainability of water systems in the long run. With the recognition of the complexities inherent in governing water resources, new and diverse governance models have started to emerge and be diffused to various contexts. This systematic review explores 223 cases from 165 studies on water governance and sustainability. We assess the cases based on water governance paradigms and how these paradigms relate to governance characteristics, water‐related problématiques, and sustainability outcomes. Our results indicate a lack of knowledge cumulation and patterns connecting problématiques (e.g., “groundwater exploitation in agriculture”) and paradigms (e.g., “community‐based management”). We found that the “integrated approach to water management” was the most common paradigm, and paradigms might manifest with various governance characteristics, some of which may not fully align with the paradigm's fundamental principles. While certain paradigms, such as “integrated approach to water management,” “participatory and collaborative governance,” and “community‐based management,” are mostly associated with better sustainability outcomes, these successes should be interpreted cautiously due to the context‐sensitive nature of paradigms and potential biases in the reviewed studies. These findings provide a basis for further diagnostic work and suggest the need for more nuanced approaches to water governance and sustainability.

Neighborhood Disadvantage and Birth Outcomes Among Refugees.

To examine the association between neighborhood socioeconomic disadvantage and birth outcomes among refugee women in Denmark, leveraging a natural experiment. This register-based study included 15 118 infants born to women who arrived in Denmark as refugees during 1986 to 1998, when a dispersal policy was in place that quasirandomly assigned newcomers to neighborhoods with varying degrees of socioeconomic disadvantage. Neighborhood disadvantage was measured using a composite index representing neighborhood-level income, education, unemployment, and welfare assistance. These data were linked to individual-level birth register data. Outcomes included low birth weight, preterm birth, and small-for-gestational-age infants. Associations between neighborhood disadvantage at resettlement and birth outcomes up to 20 years after resettlement were examined using multivariable regressions adjusting for characteristics of the women at resettlement. Each SD of increase in neighborhood disadvantage was associated with an 18% increase in low birth weight risk (0.61 percentage points [pp], 95% confidence interval [CI]: 0.19-1.02), 15% increase in preterm birth risk (0.64 pp, 95% CI: 0.22-1.07), and 7% increase in small-for-gestational-age risk (0.78 pp, 95% CI: 0.01-1.54) 5 years after resettlement. Results did not differ after adjusting for urbanicity and conational density, but associations were attenuated after adjusting for municipality-level fixed effects, suggesting that local government characteristics may partially explain the associations. Resettling in a disadvantaged neighborhood is associated with higher risk of adverse birth outcomes among refugee women. This highlights how policy decisions affecting settlement of refugees can have long-term consequences, including on the health of the next generation.

Information Stratification: An Understanding of Rural Governance in the New Media Era

Current research on media governance emphasizes the technological aspect of information as a tool but lacks sufficient attention to the digital transformation of information subjects. This paper aims to focus on the internal information characteristics of rural governance in the digital age, thus understanding the changes of rural governance subjects in the information society under new media contexts. Based on more than a decade of fieldwork in rural areas of Beijing conducted by the research team, this study employs in-depth interviews and participant observation in a multi-case study, exploring the structural representation of rural governance from an information perspective. The research reveals that in the new media era, rural society, under multiple governance bodies, generates differentiated information stratification, specifically manifesting as instrumental rational information in the formal governance layer, proxy implementation information in the semi-formal governance layer, and livelihood-adaptive information in the informal governance layer. Among these, the authority-driven governance information in the formal layer is the core part of the rural governance system. The subjects and structures of information under multiple governance bodies are interconnected and coexist within the internal field of rural governance, subsequently driving the centralization of formal governance information, the collaboration of semi-formal governance information, and the alienation of informal governance information. This leads to the emergence of orderly information stratification within the multi-layered governance structure. Information stratification deepens the explanatory pathway of multi-layered governance in rural social studies and proposes new perspectives for understanding rural governance issues in the new media era.

Environmental greenwashing in Japan: the roles of corporate governance and assurance

PurposeGreenwashing is defined as the overstatement of companies’ environmental disclosures relative to their performance. This paper aims to develop a greenwashing measure, examines its relationship with environmental performance and investigates the mitigating effects of Japanese firm-level corporate governance characteristics (corporate structure, board leadership, foreign share ownership, ratio of independent directors and ratio of directors’ variable compensation) and third-party assurance of environmental information on the extent of greenwashing.Design/methodology/approachThis paper analyzes a sample of 420 firm-year observations from the period between 2018 and 2019 from Japanese listed companies that responded to the CDP Climate Change survey via probit/logit and multivariate panel data regression models.FindingsThis paper finds that the probability of engaging in greenwashing is negatively associated with environmental performance, which supports the reliability of the study’s greenwashing measure. Japanese firm-level corporate governance characteristics are ineffective at mitigating greenwashing. This paper also finds that assurance carries a significant risk of being exploited by companies involved in greenwashing to increase the degree of their overstatement.Practical implicationsThe findings have significant implications for investors, who should increase scrutiny and skepticism of environmental disclosures, particularly from companies with poor environmental track records. Japanese companies should consider strengthening their corporate governance to ensure the effective oversight of environmental disclosure and performance. Regulators and standard setters should implement stricter guidelines for and oversight of environmental information assurance.Originality/valueNo empirical study has examined the effectiveness of Japanese corporate governance characteristics and environmental disclosure assurance on the mitigation of greenwashing.

COVID-19-Motivated Changes to Executive Compensation

ABSTRACT We provide new insights into companies’ decisions to cut CEO pay during the COVID-19 pandemic by comparing 482 firms announcing CEO salary cuts with those that do not. We find that salary cuts are more prevalent in firms with poor pre-pandemic performance, lower cash holdings, employee layoffs, and better governance. Shareholders appear to view these cuts favorably in firms with higher CEO pay ratios and those that are the first among their peer firms to make such an announcement. These findings suggest that pay cuts reflect efforts to adjust pay efficiently in response to changes in contracting environments and to lend legitimacy to other difficult decisions that firms face, alongside governance characteristics. We also find that CEO salary cuts coincide with well-timed equity grants that appreciate in value more than those in noncutting firms and with a shift away from earnings-based metrics in performance-based incentive plans. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G34; M12; M21; M52.

The imprint effect of initial institutional environments and bank financing in family businesses

The initial imprint embedded in family business origin provides us with favorable support for identifying how past institutional environments and then current governance characteristics influence financing. This study investigates the influence of family business origin on loan borrowing, and finds that restructured family firms (RFFs), which are formed through the restructuring of collective-ownership enterprises, are likely to obtain more loans compared to entrepreneurial counterparts (EFFs). The effect varies with local marketization, family control rights, and intergenerational succession. Our findings suggest that restructured family firms have a sounder modern enterprise system, less information asymmetry, and consequently pose less credit risk, which allows them to access loans more easily. In addition, institutional differences stemming from the origin of the firms affect the composition and cost of bank financing. RFFs outperform EFFs in terms of the size of non-local bank loans and the cost of loans. Overall, this study shows that the institutional environment of family firms at the founding stage has a long-term impact on future financing.

FROM DISCRETION TO EXPERT JUDGEMENT: RECASTING SEDIMENTED CONCEPTS IN ADMINISTRATIVE LAW

Abstract This article re-examines the traditional account of administrative decision-making under wide conferrals of statutory power. The received wisdom in such cases is that public officials exercise “discretion”, usually defined as freedom of choice. Based on a doctrinal study of the English planning system and related case law, this paper contends that the notion of discretion as choice obscures one of the defining characteristics of modern government. That is, the making of public decisions tackling practical problems with intelligent and expert judgement under legal standards set out in legislation and further developed by the courts. More widely, the paper discusses the foundational role of tacit knowledge and decision-making expertise in public administration.

AI Governance in Higher Education: Case Studies of Guidance at Big Ten Universities

Generative AI has drawn significant attention from stakeholders in higher education. As it introduces new opportunities for personalized learning and tutoring support, it simultaneously poses challenges to academic integrity and leads to ethical issues. Consequently, governing responsible AI usage within higher education institutions (HEIs) becomes increasingly important. Leading universities have already published guidelines on Generative AI, with most attempting to embrace this technology responsibly. This study provides a new perspective by focusing on strategies for responsible AI governance as demonstrated in these guidelines. Through a case study of 14 prestigious universities in the United States, we identified the multi-unit governance of AI, the role-specific governance of AI, and the academic characteristics of AI governance from their AI guidelines. The strengths and potential limitations of these strategies and characteristics are discussed. The findings offer practical implications for guiding responsible AI usage in HEIs and beyond.

Corporate Governance Characteristics and Environmental Sustainability Affect the Business Performance among Listed Saudi Company

Corporate Governance Characteristics and Environmental Sustainability Affect the Business Performance among Listed Saudi Company