Book Corporate Research Articles

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.

Company ESG performance and institutional investor ownership preferences

AbstractHeterogeneous institutional investors' shareholding preferences have been driven to change by the deepening of ESG investment philosophy. Therefore, we examine the impact of corporate ESG performance on institutional investors' shareholding preferences and its mechanism of action. We conduct mixed OLS and mediation effect tests using data on ESG responsibility scores and institutional investors' shareholding ratios of A‐share listed companies in China from 2010 to 2020 as samples. We find that corporate ESG performance can significantly and robustly increase institutional investors' shareholdings; the mediation effect analysis shows that overall corporate ESG performance contributes to increases in corporate book and market values, thus encouraging institutional investors to increase their shareholdings. The heterogeneity analysis shows that independent institutional investors attach more importance to corporate ESG responsibility performance, and long‐term institutional investors attach more importance to corporate environmental performance; moreover, institutional investors have more significant ESG shareholding preferences for Chinese SOEs. Our study can strengthen the encouragement of institutional investors to integrate ESG investment concepts from multiple perspectives, such as research and analysis, portfolio management, risk control, and due diligence management, to design and develop targeted ESG investment tools, give full play to the role of shareholders and guide the sound development of listed companies from the perspective of investment strategy objectives.

Inflation, Interest Rate, and Exchange Rate for their Effect on Profitability and the Implications on Corporate Value: Case Studies in National Banking 2014 until 2019

The purpose of this study is to see how much inflation-interest and exchange rates could affect profitability and or whether the correlation-between profitability affects the corporate's book value. The research sample consisted of seven large Indonesian national banks with authorized capital above 10 trillion rupiahs with an observation period from 2014 to 2019. Data processing using Eviews 9 software, quantitative using regression linear multiple regression techniques. They indicate that inflation does not have a significant positive impact which is proxied by profitability. Interest rates have a positive but not significant to Profitability, Value Exchange does not have a positive effect significantly on Profitability and Profitability has a significant positive influence on the Corporate’s Book Value.

Іван Крип’якевич як колекціонер і дослідник книжкових знаків

For centuries, the ex libris (a label of an individual or institution, especially their libraries) had an important socio-cultural mission; its text identified the owner of the library or collection. The image was performed in graphic techniques and had an associative or decorative purpose, revealing the life and preferences of the individual, the priorities of the institution, organization. Book labels carried information on the formation, composition and rotation of books in private and public libraries. The purpose of the article is to analyze the works of the Ukrainian historian, bibliologist and collector Ivan Krypiakevych (1886–1967) about the peculiarities of the appearance of handwritten and printed Ex Libris — a label of an individual or institution, their libraries on Ukrainian lands. Methodological principles of work are the principles of historicism, systematicity and objectivity. The study was carried out using the following methods — comparative-historical, structural-systemic, generalization and synthesis of historical data. Based on the publications of the scientist, his epistolary from the archive of the manuscripts department of the V. Stefanyk Lviv National Scientific Library, the thematic characteristics of the genre are revealed in the context of social, political and artistic processes of the Middle Ages, new and modern times. Letters from recipients from Ukraine and abroad were analyzed, which made it possible to reproduce the operation of personal or corporate book label. The analysis of the works and the epistolary of I. Krypiakevych, testifies to the progressive development (with breaks and difficulties) of the bibliophile movement in Ukraine in the modern day. The scientist restored information about the owners and authors of exlibris, monitored their timeline and technique, distinguished the artistic and stylistic features, gave the classification of book labels. The scientist believed that the exlibris in Ukraine reflected the state of the general culture and were worthy representatives of the international bibliophile movement. Keywords: Ivan Krypiakevych, ex libris, libraries, culture, art.

Corporate book publications in the corporate culture system

The article is devoted to the analysis of corporate publications in the corporate culture system. A corporate publication is a new type of edition, which started to develop actively in Russia in the 1990s. To date, it is a complex of different types of publications: books, periodicals, small-print products, as well as websites, mobile applications, etc. as a variety form of corporate publications that perform similar functions. The study objective is to identify functions of book corporate publications, their place in the corporate culture system. The research methodology consists of a combination of a functional-typological method, a comparative-typological technique, and content analysis. The author identifies a range of problems facing the corporate publication study: absence of the «corporate publication» notion in the categorical-conceptual apparatus of bibliology; lack of statistical accounting; need to identify the essential characteristics of corporate publications, which include their functional purpose. The book edition performs specific functions, the main of which is forming the image and corporate culture. The corporate edition is a reflection of the visual and verbal brand system, a channel of communication and corporate advertising.

Corporate libraries: The right to life

The richness of the term “library” is revealed: from the common meaning (a depositary, collection of books and other publications) to that of the library science object (an institution, social institution). The attempt is made to identify whether corporate book collections make a document array, internal book collection, or a library. The case study of the “Laboratory of urban planning” Company (St. Petersburg) is offered. The main stages of the Company’s library development and vectors of work are discussed. Other corporate libraries’ experience is examined. The common features of the corporate and special, e.g. sci-tech, libraries, that satisfy information needs and demands in professional sphere, are revealed.The author also attempts to apply Yury Stoyarov’s four-component library model to the corporate library phenomenon. She speculates on whether the library core features are applicable to a corporate library – namely, collection purpose, document array orderliness, librarian supply. The differences between the traditional concept of a library and a library as a live selforganizing system are revealed. The need to include corporate libraries into the library science subject scope and therefore to expand social influence of librarians is emphasized.

Intellectual capital efficiency and corporate book value: evidence from Nigerian economy

PurposeThe purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysing the relationship between IC efficiency (ICE) and corporate book value of listed firms on main board of Nigeria Stock Exchange.Design/methodology/approachThis study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of ICE and corporate book value, namely, cash flow from operation and economic value added (EVA), using data over the 2010 to 2014 financial years.FindingsThe results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders.Research limitations/implicationsThe generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange.Practical implicationsThose charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory.Originality/valueThis study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs.

UNIFORM DESIGN SOLUTION IN EDUCATIONAL INSTITUTION CORPORATE STYLE

Uniform performs informative and aesthetic function, indicates the user's belonging to a certain institution or organization. This is a business card of sorts, which indirectly informs about the enterprise regardless of its working area. Purpose of the research – to develop a uniform design solution for the employees of the Rezekne Academy of Technologies, based on the study of corporate style features of uniforms, and analogue and textile material research. The research conducted shows the topicality of a uniform with corporate style elements. Analogue assessment justifies Rezekne Academy of Technology employee uniform design solution, based on RTA style book corporate style elements – logo, color palette, and uniform requirements. Analysis of the textile characteristics determines the selection of material and fitting.The research has practical meaning, because it is based on current situation research, user survey and uniform design development. Research base: 37 respondents of Rezekne Academy of Technologies; period of the research 2016–2017.

Escasez de vínculos débiles: el atraso económico de la Andalucía contemporánea desde la perspectiva de redes empresariales

Las redes empresariales, al favorecer la transmisión de ideas e innovaciones, así como la acumulación de capital, son un elemento que impulsa el desarrollo económico en el largo plazo. Pero, en última instancia, no son más que reflejo de las condiciones institucionales y económicas de un territorio. En este trabajo se presenta un estudio de las redes empresariales que actuaron en Andalucía en el periodo comprendido entre las décadas de 1880 y 1950. Una vez identificadas estas redes, se describen y se reflexiona sobre su relación con el crecimiento económico de la región. La investigación se basa en la información contenida en los libros de sociedades de los registros mercantiles de las ocho provincias andaluzas, sobre la que se ha aplicado la metodología de análisis de redes sociales. Frente a otros trabajos que se limitan a describir los indicadores estadísticos de las redes, aquí se recurre al análisis cualitativo de las mismas, así como de los empresarios que las formaron. Así, se encuentran dos razones que explican que las redes andaluzas no fueran un factor suficiente de desarrollo regional: primero, porque apenas contaron con «vínculos débiles»; segundo, porque no pudieron operar en los sectores más dinámicos de la economía de la región.

BOOK REVIEW: Corporate Social Responsibility, Private Law and Global Supply Chains by Andreas Rühmkorf

Ruhmkorf, Andreas. Corporate Social Responsibility, Private Law and Global Supply Chains. Northampton: Edward Elgar, 2015. xvi + 264 pages. Hardcover, $125.00. Human rights and environmental protection have evolved as pivotal issues within Corporate Social Responsibility (CSR) guidelines for companies with international reach. The United Kingdom (UK) has grappled with developing a consistent method of enforcing corporate governance in support of these ideals within the international market. In his book Corporate Social Responsibility, Private Law and Global Supply Chains, Dr. Andreas Ruhmkorf, a lawyer and professor of commercial law, proposes how English private law can be used to ensure corporations that utilize global supply chains are held accountable for violations of their own corporate governance. The author examines case studies of fifteen UK-based corporations which issue their own governance based on the European Union's recommendations for corporate code of conduct. Although any inherently transnational CSR guidelines implemented remain primarily under the auspices of English law, Ruhmkorf's analysis of these guidelines is valuable despite the United Kingdom's recently passed referendum to withdraw from the European Union. Ruhmkorf enumerates four subcategories within English private law to impose a higher duty for companies headquartered in the United Kingdom to practice Corporate Social Responsibility principles. This analysis includes: 1) the usage of directors' duties as an avenue to promote CSR, 2) the study of first tier corporations that include CSR guidelines in supply chain contracts, 3) consumers' claims under certain English statutes that assert corporations who have engaged in misleading business practices have in fact violated their own CSR principles, and 4) the use of class action lawsuits under tort law for such violations. The author analyzes section s172(1)CA of the United Kingdom's Company Act of 2006 which upholds a Board of Directors' right to determine the best interests of the company although it is still obliged to balance the interests of other stakeholders such as employees and suppliers based on the enhanced shareholder theory. Thus, in this context, CSR is at the corporation's discretion as courts are hesitant to interfere with the daily operation and management of private entities. Ruhmkorf then presents an interesting legal approach explaining that shareholders may use their stake to enforce CSR goals on a corporation through derivative actions under the UK's Stewardship Code of 2010. However, the author again concludes that such an action would likely have little to no impact in holding corporations accountable for violations of CSR policies as shareholders are the primary beneficiaries of corporate financial gain. Thereafter Ruhmkorf discusses the United Nations Guiding Principles on Business and Human Rights and how UK-based companies which incorporate CSR guidelines in their global supply chain contracts may use jurisdiction as an enforcement mechanism. For instance, when an English company specifically states within an executed contract that English courts have jurisdiction, those entities which voluntarily availed themselves of such contracts must adhere to those terms. The author also mentions the Brussels I Regulation, a European Union law which states that an entity based in any European Union member-state and party to a contract has jurisdiction in such disputes. Ruhmkorf also delves into great detail regarding various tiers of contracts, standard purchase orders, and produced goods which comprise the global supply chain, in order to determine whether contractual terms may be enforced against third party beneficiaries. Based on the UK's Contracts Act of 2009 and the Privity of Contract Doctrine at common law, it is unlikely that a first tier UK-based corporation has the ability to impose such standards on tenuous sub-contractors unless the primary agreement expressly incorporates such a clause. …

Digital Business Environment and Audit Quality

The event of the global financial crisis is a stack reminder of the importance of audit quality. As various stakeholders grapple with the series of business failures and corporate scandals, the need to re-examine the veracity of audit reports as well as the quality of these audit reports has taking a center stage. Today’s business landscape is increasingly seeing the emergence of new digital technologies like analytics, big data, cloud, social media, mobile etc. Such digital technologies are reshaping existing products, creating new products and services as well as turning digital resources within organizations into a new revenue streams [1-2]. These digital technologies are creating new audit landscape requiring auditors to alter audit processes, controls and tests [3-4]. Navigating through the plethora of cross-functional technologies in a vastly digital world is requiring a new breed of auditors. For instance, cloud computing platforms allow enterprises to run business processes through a network connection while eliminating the conventional IT hardware and software infrastructure that supports these business processes. Auditing in a cloud based enterprise presents various unconventional audit-related risks that may impact on the internal control system and overall audit quality. Risk-based assessment for firms using cloud computing platforms is convoluted because the technology infrastructure and control mechanisms are house and managed outside the enterprise being audited. Cloud computing adds additional layers into the audit procedures as auditors may have to examine the cloud service provider, data center and in some cases third party vendors to establish inherent risk and potential control risk. Similarly, data analytics has become a critical part of the audit process thus, creating the need for auditors to acquire new skills and alter existing audit procedures. With the growing trend of big data and data analytics in audit practices, concerns have been raised about the effectiveness of conventional audit processes and procedures to meet the standards of an evolving audit landscape [1,5-6]. For instance, rather than perform the typical sampling of clients record, big data analytics enables auditors to look at the general ledger and examine outliers and exceptions. In fact, some studies have argued that the underlying assumptions and premises of many audit procedures are no longer applicable to the current auditing environment [6,3]. There is a need for audit firms to seek ways to leverage cutting-edge data analytical tool that will provide greater insights into corporate books and records. Data analytics tools can positively impact audit quality. First, analytics tools can be used to gather insight regarding the level of auditing and the type of procedures to be applied for a particular client. Moreover, analytics tools can also be used to identify potential frauds by picking out deviations and outlier transactions. Emerging digital technologies can provide value-adding benefits to auditors and can potentialy contribute to audit quality. However, auditors have to evolve from the traditional audit procedures and in order to conduct an audit in a post-digital environment. Without a concerted effort, auditors will grapple with clients that have unconventional business models and high digital intensity. As businesses move toward digitization, more concerns will be created for auditors in the areas of access controls and risk of material misstatements. However, auditors must crave new procedures that will leverage cutting-edge data analytical tools and technologies that are capable of providing greater insights into corporate books and records. Such insights will not only make auditors more effective but will also improve the overall audit quality.

AlessandroZattoni and WilliamJudge, eds. Corporate Governance and Initial Public Offerings, Cambridge University Press, Cambridge, 2012, 568 pp, ISBN 978‐1‐1‐7‐01686

The article reviews the book Corporate Governance and Initial Public Offerings, by Alessandro Zattoni and William Judge.

Corporate Social Responsibility: An Ethical Approach, by Mark S. Schwartz. Peterborough, Ont.: Broadview Press, 2011, 176 pp. ISBN: 978-155-111-2947

The article reviews the book Corporate Social Responsibility: An Ethical Approach, by Mark S. Schwartz.

Shareholder Lawsuits: Where is the Line between Legitimate and Frivolous?

Shareholders of public companies are not responsible for designing executive compensation packages. Still, a shareholder vote on compensation is required in two circumstances: when a company wants to establish an equity-based compensation plan, and annually as part of the Dodd Frank requirement shareholders have an advisory “say on pay.” In deciding how to vote, shareholders rely on information provided in the annual proxy.Recently, shareholder groups have sued companies for inadequate disclosure. They allege that the companies provide insufficient disclosure to determine how they should vote on these matters.We explore this issue in closer detail and ask: How much disclosure is too much disclosure? If a company follows SEC guidelines, why is this not sufficient? When do lawsuits cross the line from legitimate to frivolous? If disclosure litigation is successful, what other board decisions would be subject to potential lawsuits?Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.

Is a Powerful CEO Good or Bad for Shareholders?

Americans tend to admire powerful leaders. Powerful leaders are seen as exerting influence over their organizations and shaping outcomes around them. CEO power can be exercised across a wide spectrum of decisions, including those regarding corporate strategy, operations, acquisitions, organizational design, culture, and governance.However, it is not clear the extent to which having a powerful CEO is beneficial to an organization. CEO power can be positive or negative, depending how it is manifested and how it is exercised.We examine this topic in greater detail, and ask: Are shareholders better or worse off with a powerful CEO? Where should the board draw the line between giving its CEO discretion and providing appropriate oversight? How much power is too much power?Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.

Fixed or Contingent: How Should 'Governance Monitors' Be Paid?

Corporate monitors are important participants in corporate governance systems. Monitors include the board of directors, the general counsel, and internal and external auditors. Monitors are paid by the organization but their responsibilities largely or mostly non-managerial. How should monitors be paid? Because their objective is to detect and mitigate agency problems, one could argue that they should be paid almost entirely on a fixed-salary basis. On the other hand, an entirely fixed compensation system might not provide sufficient incentive to perform. We discuss this issue in greater detail. We ask: Should corporate monitors be paid a bonus? If so, what form should it take? What performance targets should be used to calculate the bonus? Do performance incentives enhance or impede the effectiveness of monitors? Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.

Monitoring Risks Before They Go Viral: Is it Time for the Board to Embrace Social Media?

According to Nielsen, social networks and blogs account for the largest percentage of time that individuals spend online, more than email and reading the news. Given the pervasiveness of social media and the potential impact it can have on corporate activities, some experts recommend that boards of directors pay closer attention to the information exchanged on these sites. Information gleaned through social media might provide unique and relevant insights that improve decision making. For example, this information might be used to supplement the traditional key performance indicators that boards use to monitor corporate performance. Similarly, it might also be used as an “early warning” system to improve risk management.In this closer look, we examine these issues in detail. We ask: Why haven’t more boards utilized information from social media to improve corporate oversight? Should the board formally review social media metrics, or does this represent an encroachment on management? Can this information be used to safeguard corporate reputation?Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.

Sudden Death of a CEO: Are Companies Prepared When Lightening Strikes?

It is very difficult for shareholders to know detailed information about CEO succession planning among the companies they have invested in. Although CEO deaths are rare, the sudden death of a CEO can provide insight into the quality of succession planning and governance of a company. Whereas some companies are able to appoint a successor immediately, others take weeks or months to do so.In this Closer Look, we examine this issue in detail. We ask:* Why haven’t more companies done a “reality check” on whether they have a truly operational succession plan?* What can a board learn and what should it do if the market reacts positively to the death of its CEO?* Should the board revise its succession plan if its CEO engages in risky hTopics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.

An Empirical Study on the Relationship between Corporate Governance, Book Value and Market Value

An Empirical Study on the Relationship between Corporate Governance, Book Value and Market Value

What is CEO Talent Worth?

The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going fair-market rate.Much less effort, however, is put into determining whether total compensation is commensurate with the value of services rendered. We examine the issue and explain how such a calculation might be performed. We ask: How much value creation should be attributable to the efforts of the CEO? What percentage of this value should be fairly offered as compensation? Can the board actually perform this calculation? If not, how does it make rational decisions about pay levels?Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.