Concept Of Corporate Governance Research Articles

THE POSSIBILITIES OF APPLYING ARTIFICIAL INTELLIGENCE FOR THE PURPOSE OF DEVELOPING INTERNAL CORPORATE CONTROL

Internal corporate control is one of the important components of effective corporate governance. Its mechanisms are designed to serve the internal objectives of the company and its internal stakeholders. As a general rule, internal corporate control should contribute to safeguarding the company's assets by preventing errors and inappropriate actions through the appropriate promotion of policies, procedures and technical safeguards. Artificial intelligence has become a natural attribute of the post-industrial age and its application in the area of internal corporate control has become welcome. These include data analytics, predictive analytics, automation of routine tasks, fraud detection, artificial intelligence processing, continuous monitoring and customisable alerts. Harnessing them tends to substantially elevate the corporate governance process. Corporate governance is an attempt to implement systems of risk analysis, verification, evaluation and control that contribute to the effective management of their operation. Therefore, the concept of corporate governance will need to be addressed in conjunction with risk management throughout the organisation and the evolution of the financial management and internal control system. The purpose of the research is to investigate the mechanisms of internal corporate control efficiency in the Republic of Moldova, to substantiate the directions and strategies for organizing internal control of corporate financial resources.

Students career interest and understanding of corporate governance education in Ghana

PurposeGiven the perceived weak corporate governance systems in Ghana, corporate governance education curriculum requires empirical investigations to ascertain factors that can enhance student knowledge in governance systems based on their career interests and programme of study. Therefore, we investigate whether students with a career interest in corporate governance exhibit a significantly different level of comprehension compared to those without such an interest. Furthermore, we explore whether the comprehension of course concepts differs across various business-related programmes, investigating potential variations in understanding among students from diverse programme backgrounds.Design/methodology/approachUsing a descriptive design, we adopt a quantitative approach and survey method to collect cross-sectional data from 1,050 undergraduate students in selected Ghanaian public universities. We analyse the data using t-test and Analysis of Variance (ANOVA).FindingsWe establish no statistically significant difference in comprehension levels of corporate governance concepts between students with a career interest in corporate governance and those with no career interest. However, we find statistically significant differences in the comprehension of corporate governance concepts among students pursuing different business-related programmes.Practical implicationsOur findings imply that the corporate governance course should be taught practically, giving students insights into what the course entails from an industrial viewpoint. This may entail engaging experts from industry as visiting lecturers at intervals to bridge the gap between theory and practice. Students could also benefit from mentorship programmes from industry, internships and related placements to ensure an understanding of theoretical concepts from practical perspectives.Originality/valueOur study is novel and contributes to extant literature because it is the first empirical study on corporation governance education that emphasizes on students career interests and programme of study from a developing country perspective.

Corporate governance through the lens of Islam: A comparative review and analysis

Corporate governance is a set of relationship between a company’s boards, its shareholders, and other stakeholders as well as provides the structure and mechanism through which the objectives of the company are set and the means for attaining those objectives and monitoring performance are determined. The concept of corporate governance (CG) has gained critical interest and has become a debating point since the mid-1980s. It became an aspect of concern when the corporate world became aware of the importance of protecting the rights of all stakeholders. This paper critically reviews the existing literature on Islamic Corporate Governance (ICG), presents a basic understanding of Islamic Corporate Governance (ICG) and compares the Islamic concept of Corporate Governance to the Organization for Economic Cooperation and Development principles. The study reveals that the Islamic system of governance encourages and promotes the ethical norms of transparency and honesty in every business transaction.

Applicability of the Islamic Corporate Governance for Shariah Companies in Malaysia

The Islamic Capital Markets (ICM) have become part and parcel of the modern financial system which not only assists in the growth and expansion of the heavily monetized economy but often becomes a very major indicator of the business cycle movements as well as the confidence and the sentiments of the business community and investors. Of late, ICM has also been a very important vehicle to raise the necessary amounts of funds to affect the national savings needed for rapid economic growth. Most of Shariah companies in Malaysia do not implement an Islamic corporate governance system because of the lack of regulations and exposure from regulators as well as low demand from investors. In line with this development, this paper compares the corporate governance concepts in the conventional and the Islamic perspective. The discussion then proposes an Islamic corporate governance system and requirement of Shariah supervisory board for Shariah companies that could ensure that firms are operating according to Islamic principle thus improve the quality of monitoring role in firms listed on FTSE Bursa Malaysia EMAS Shariah Index.

ANALYSIS AND EVALUATION OF CORPORATE GOVERNANCE QUALITY IN ENTERPRISES

Purpose. To examine the theoretical and methodological foundations of the concept of corporate governance quality in enterprises and their application. Generalization of the theoretical approach to formulating the essence of corporate governance and its quality. Examination of quality assessment methods. Analysis of indicators characterizing the quality of corporate governance. Formulation of measures to improve the quality of corporate governance. Methodology. The research methods included: analysis and synthesis - in substantiating the essence of corporate governance and formulating its structural components; graphical method - in presenting visual analysis results; logical generalization method - in analyzing theoretical approaches to organizing corporate governance. Results. This paper examined the concept, structure, and types of corporate governance. Key elements and approaches to its definition were considered. The process of implementing enterprise strategy was examined. Generalized studies on the quality of corporate governance were reviewed. A rating assessment of corporate governance quality was formulated. Preconditions for the formation of corporate conflicts among key participant groups were examined. A rating assessment of the potential for resolving and preventing corporate conflicts was discussed. An assessment of corporate governance rating was developed, including a component that evaluates the subjective composition of corporate relationship participants. Scientific novelty. Lies in the analysis of enterprise activities and calculation of a possible option to increase the corporate governance quality rating of the enterprise. Practical significance. The paper contains practical recommendations aimed at improving the existing mechanism for assessing the quality of corporate governance in enterprises.

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.

Review of the conference book Corporate governance: An interdisciplinary outlook

This review covers the conference book titled “Corporate governance: An interdisciplinary outlook”, edited by Erik Karger and Alexander Kostyuk (Virtus Interpress, 2023; ISBN: 978-617-7309-22-1). The issue of corporate governance is becoming more important every day, both in business and in academic research. It has also evolved with the growth of sustainability studies. The international online conference Corporate Governance: An Interdisciplinary Outlook, held online on November 24, 2022, was a platform for sharing ideas on new trends that are currently shaping the concept of modern corporate governance. So, this book presents views on corporate governance from four different angles.

Legal Strategies for Effective Corporate Governance with special reference to Indian Anti-corruption Laws

The development and prosperity of countries all over the world are seriously threatened by corruption, a pernicious social evil. Through devious tactics, this age-old threat erodes the basic foundation of civilization while stealing important national resources. Since the beginning of civilization, corrupt practices have hampered national development by directing funds intended for the general good into the pockets of a small number of individuals. In particular, in the setting of strict anti-corruption regulations, effective corporate governance is essential for ensuring openness, accountability, and ethical behaviour inside entities. This paper examines the subtleties of Indian corporate governance and how it interacts with the nation’s anti-corruption laws. The research presents a thorough analysis of the legislative framework controlling corporate conduct as well as corporate governance concepts, illuminating the difficulties businesses confront in adhering to both anti-corruption laws and morally upright business practices.

How can Chinese A-shared listed bank’s ESG activities affect their risk-taking?

The sustainable development of society has gradually been the world’s attention at all levels. At the 75th session of the UN General Assembly, the Chinese government said it would aim to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. All levels of government in China are also responding to the call, and how to promote green and sustainable development has become China’s top priority to achieve high-quality double reduction goals. As a banking-led prosperous economy, how to implement the Environmental, Social, and Corporate Governance (ESG) concept in the banking industry has become the most important to achieve the double reduction goal of quality and quantity in China. In recent years, the CBRC and the People’s Bank of China (PBC) have issued much guidance on transforming the banking industry through ESG. Considering that the number of A-share listed bank companies in China, especially the number of local banks (urban commercial banks and rural commercial banks), has increased in recent years, it is also considered that the existing research focuses on the relationship between ESG management and bank performance, and there is little analysis on bank risk. Based on the annual data of China’s A-share listed banks from 2018 to 2022, this paper uses regression analysis to explore the relationship between the implementation of ESG and bank risk-taking.

THE CONCEPT OF CORPORATE GOVERNANCE: THE HISTORY OF FORMATION

The purpose of the research. The article is devoted to the study of the history of formation of the concept of corporate governance. The historical period of development of the concept of corporate governance is no less important than the modern concept of corporate governance and it is necessary to study it, analyze the dynamics and trends. The purpose of the study is to analyze the formation of the concept of corporate governance in dynamics. Results. According to the results of the study, the author's view of the history of the emergence and development of corporate governance is presented. It is proved that the concept of corporate governance was not yet formed in the period of the Roman Empire. It seems more correct to define the period when the terminology began to be formed as associated with the beginning of the Industrial Revolution. Modern terminology is formed, but the understanding of the essence of corporate definition is not uniform. In general, opinions are divided into two groups: those who propose to include only participants of the corporation and management, and those who exclude subjects other than participants of the corporate legal entity and persons performing management. The author's conclusion that the expansion of the concept of corporate governance by increasing the subject composition of legal relations does not correspond to the essence, because the participation of other persons in corporate legal relations is secondary, indirect.

DEMATEL analysis of corporate and public governance: identifying key factors for good governance

This paper aims to clarify the concepts of corporate governance and public governance, the principles and practices of governance, with an emphasis on the role and responsibility of management and on decision-making transparency. An extensive review of scholarly literature has pinpointed ten factors known to exert an influence on good governance. Following this, expert opinions were leveraged to establish the causal interrelationships among these factors, employing the Decision-Making Trial and Evaluation Laboratory (DEMATEL) methodology. The conclusions of the paper show that corporate governance can also be better applied in the field of public affairs, an approach so current under the difficulties and contemporary economic and social changes and under the extraordinary transformational pressure exerted by the new technologies and mentalities that do not bypass the relatively reluctant to change the sector of public administration. The development and diversification of public services, which must ensure a high degree of quality and efficiency under conditions of limiting the financial resources of the administrative-territorial units, obliges the efficiency of the management systems of these institutions, emphasizing their role, responsibility, transparency, and decision-making and credibility in front of the citizens.

FORMULATION OF A SCIENTIFIC DEFINITION FOR «CORPORATE GOVERNANCE» BASED ON THE COGNITIVE METHOD OF TWO-LEVEL TRIADIC DECRYPTION

The concept of corporate governance has been analyzed, and its general and specific characteristics have been identified. The study explores various approaches to defining corporate governance. The first perspective, advocated by international foundations and some defined scholars, views corporate governance as a system of rights and responsibilities. The second perspective considers corporate governance as a set of firm practices. This entails the use of specific strategies and methods to achieve company goals, including decision-making, strategy development, and risk management. The third perspective emphasizes balancing finances, labour, technology, and management to harmonize the interests of various stakeholders and the company. This involves considering the needs of shareholders, employees, clients, and other participants, as well as ensuring mutually beneficial relationships among them. The research results indicate that corporate governance can be approached from different angles, but all are aimed at achieving effective and sustainable company operation. Taking these aspects into account is crucial for successful enterprise activity. The study proposes the use of the triadic decryption method to formulate the definition of corporate governance. Applying this theory allowed for the systematization and generalization of key aspects of this concept, which is an important step in understanding and analyzing the principles and mechanisms of effective corporate governance. By using the triad mutations method, a rearrangement of secondary concepts in the original categorical scheme was made, reflecting the essence of corporate governance constructed as a result of applying the two-tier triadic decryption method. The generalization of three hierarchically structured concepts enabled the formulation of a definition in which corporate governance is considered to be a systematic and planned activity aimed at ensuring balance in the relationships between all participants in this process (owners (shareholders), founders, directors, managers, and other stakeholders). This approach allows enterprises to take a systematic approach to corporate governance and consider its dynamic nature, contributing to further research on the essence and peculiarities of using this concept in modern business practice.

Good Corporate Governance Principles in Islamic Banking: A Legal Perspective on the Integration of TARIF Values

Islamic banking, rooted in the foundational principles of shiddiq (honesty), tabligh, amanah (fulfillment of beliefs), and fatanah (intelligence) derived from the teachings of Prophet Muhammad, stands in contrast to conventional banking driven by the Western-derived concepts of Good Corporate Governance (GCG), encapsulated in transparency, accountability, responsibility, independency, and fairness (TARIF). This research explores the possibilities and implications of applying GCG principles in Islamic banking, examining their impact on Islamic economic law. Through a normative legal study, the research delves into primary and secondary legal materials, employing a deductive analysis with statutory and conceptual approaches. The integration of GCG principles in Islamic banking reflects a convergence of values, fostering justice, tawazun (balance), mas’uliyah (accountability), akhlaq (morality), shiddiq (honesty), amanah (fulfillment of beliefs), fatanah (intelligence), and economic equilibrium within the framework of Islamic economic law.

The evolutionary journey of the American corporation and its governance over two centuries

PurposeThis study aims to explore the evolutionary trajectory of American corporations and their governance over the past few centuries, using a multidisciplinary investigative approach. The research focuses on the American business landscape because it has played a pivotal role in shaping the field of corporate governance theory and practice.Design/methodology/approachThe author thoroughly investigates archival records, legal documents, academic publications, reputable databases and pertinent literature to unearth valuable insights into the key events that have influenced the evolutionary path of American corporations and their governance throughout history.FindingsDelving into the evolutionary journey of American corporations and their governance reveals a multifaceted narrative, enhancing our comprehension of the impact of the external socio-economic environment, and the effectiveness and limitations of established corporate governance paradigms in addressing such transformations. This introspection establishes the groundwork for ongoing discussions concerning how corporate governance should adapt to meet the evolving needs and expectations of stakeholders and society as a whole, with a specific focus on the pivotal role that boardrooms could play in this regard.Practical implicationsThe insights gained from this analysis offer practitioners a foundational resource to understand corporate governance in a complex business landscape. Armed with this understanding, practitioners can better align governance strategies with both historical context and contemporary requirements.Social implicationsThe research has significant social implications in the sense that history highlights the importance of the society in influencing corporate governance practices. It specifically emphasizes the need for the board of directors to consider both shareholder value and social responsibility, while also fostering public trust and confidence.Originality/valueMany corporate governance concepts are often used with limited understanding of their initial intent, resulting in their unquestioned adoption. In this paper, the author offers a contextual exploration of historical events that have contributed to the development of these diverse corporate perspectives. To the best of the author’s knowledge, there are exceedingly few, if any, papers that present comparably insightful and multidisciplinary insights into the evolutionary path of corporations and their governance, especially within a dynamic and influential market like that of the USA.

Corporate governance education in Ghana: gender and school library to the rescue

PurposeCorporate governance and its training in universities have become an essential addition to the educational curriculum. Despite its expansion, students still need help to grasp some concepts, affecting their academic performance. This paper examines the expected influence of gender and school libraries on comprehending corporate governance concepts in Ghanaian universities.Design/methodology/approachWith the culturo-techno-contextual approach (CTCA) as the underlying theory, the study sampled 1050 undergraduate students from the selected Ghanaian public universities. The study adopted a quantitative approach, and the data were analysed using descriptive statistics and ANOVA.FindingsThe results show a statistically significant difference between male and female Ghanaian students in their understanding of corporate governance concepts, with the mean figures suggesting that males slightly understand corporate governance concepts more than females. The results also show a statistically significant difference among Ghanaian students studying using school libraries of varying quality in their understanding of corporate governance.Originality/valueThis study's novelty stems from examining the corporate governance curriculum in a developing country from the perspectives of gender and school library. Adopting the CTCA components in analysing school libraries and gender further evidences the study's novelty.

Effects of Forensic Accounting Techniques and Corporate Governance on Financial Performance of Listed Deposit Money Banks in Nigeria

Purpose: This study aimed to investigate the effect of forensic accounting and corporate governance on the financial performance of listed deposit money banks in Nigeria. Theoretical framework: This study drew upon Agency Theory, to provide a theoretical foundation for examining the governance of a company and the conflicts of interest that arise among its shareholders, managers, and major debt providers. This was introduced to support the concepts of forensic accounting and corporate governance. Design/ Methodology/Approach: This study employed ex-post facto and panel data research designs. This study obtained data from the annual audited reports of deposit money banks that were listed in Nigeria. The study focused on a population of fifteen (15) deposit money banks listed on the Nigerian Exchange Group (NGX). The study employed a purposive sampling technique to select ten (10) firms due to the availability of a complete dataset of the targeted population. This study covered a period of eleven years from the year 2012 to 2022. The collected data in this study underwent analysis using both descriptive statistics and panel regression analysis techniques. Findings: The results found that forensic accounting and corporate governance had a significant effect on the financial performance of listed deposit money banks in Nigeria. This implies that these factors interact and contribute significantly to the banks' financial performance. Conclusion: It was concluded that fraud case disclosure highlights the significance of transparency and reporting mechanisms in deterring fraudulent activities and safeguarding banks' financial performance. Recommendation: The study recommends that deposit money banks should prioritize and improve the disclosure of fraud cases and mitigate fraud and other financial irregularities occurrences in order to cushion its adverse effects on financial performance and foster investor confidence.

A Study Of Public Sector Bank With Reference To Corporate Governance

Corporate governance, in particular, has become a focus of market and public attention. Confidence was shattered by a series of high-profile bankruptcies because of a lack of effective action in which corporate governance was an important factor. Corporate Governance is the system through which all the activities of a company are monitored and controlled. The concept of Corporate Governance has been gaining importance and momentum all over the world. It has emerged as a means of achieving corporate excellence and a driving force for accomplishing much better performance, maximizing the stakeholder's wealth and corporate value. corporate governance affects the creation of wealth and its distribution to different pockets. Good governance is a source of competitive advantage among economies to attract international capital. Responsibility, transparency, fairness and accountability are the four pillars of strong corporate governance. Corporate Governance helps in forming a system in which a director holds the duties and responsibilities of the affairs of the Company. This study introduces the corporate governance disclosure practices of the State Bank of India(a Public Sector Bank listed in the BSE Top 100 )

Embracing the Corporate Governance and Whistleblowing in Malaysia: A Conceptual Review

Whistleblowing is an act of disclosing any wrongdoing or offence to the enforcement agency by an informer known as whistleblower, and this action would result in a conflict of interest for an individual, institution or society. Some may argue that whether it is appropriate for a whistleblower to reveal other people's mismanagement or someone’s disloyalty to the company that employed him or her. This research applied qualitative study to analyse numerous primary and secondary data sources via library-based research in order to investigate the concerns and difficulties that whistleblowers encounter, as well as the relevant laws that could protect their privacy and interest. Meanwhile, the law of whistleblowing from the selected countries had been examined and the use of the valuable Islamic concept of good corporate governance had been adopted too. In fact, many countries have enacted relevant legislation to recognise the significance of whistleblowing to promote good governance in various institutions. Whistleblowers in Malaysia are protected by the Whistleblower Protection Act 2010 ('WPA 2010') as one of the efforts to demonstrate Malaysia's commitment in reducing bribery and improper action in the institutions.

Insider ownership and performance of Russian public companies: Econometric estimates

Within the agency theory, insider ownership is viewed as a tool for reconciling the interests of owners and the company management. In the new economic reality, the agent problem is of particular relevance due to the challenges that require eliminating risks to ensure companies’ performance. The article assesses the impact of insider ownership concentration on the economic performance of joint stock companies. Methodologically, the study relies on the agency theory, property rights theory and the concept of corporate governance. The research analyzes data on the corporate ownership structure of 68 largest Russian public companies in 2011–2020 and identifies the share of insider ownership in these firms. The methods of econometric modelling were used to evaluate the dependence of EBITDA on insider ownership concentration in the companies of various forms of ownership. To carry out econometric analysis, we apply regression models in two specifications – cubic and piecewise linear regressions. The research results prove that insider ownership has a positive effect on the performance of private companies in the concentration interval of insider ownership between 0% and 35.39%; above this threshold, the positive impact diminishes. For companies with state participation, no statistically significant impact of insider ownership on performance was found. Further research is supposed to develop a more detailed modelling method by including a wider range of factors that characterize the corporate ownership structure and expanding the empirical basis of the study.

Corporate management in the economic sphere under martial law: a response to the challenges of the times

The relevance of the research lies in the fact that at the current stage in Ukraine, a national concept of corporate governance is being formed, however, this process is complicated by political, social, and economic restrictions provided by the martial law introduced in our country. The purpose of the research is to study the structure, features, and characteristics of corporate management strategies. In accordance with the set goal, the task of the research is to analyze the main trends in the development of corporate management at the current stage, to highlight their features. When conducting the research, general and special methods of scientific knowledge were used. The result of the study is the argumentation of the position that corporate management is a separate type of relationship in a business company, the features of which are determined by the specifics of the corporation, and management is a narrower concept, since it is implemented exclusively by the company's management (the top management), and corporate management is carried out by all governing bodies companies (shareholders, board of directors, CEO, and management). Corporate governance is mainly strategic in nature and oriented towards the successful functioning of the business company in the external environment.