Corporate Governance Perspective Research Articles

Corporate Governance: Exploring Key Concepts, Mechanisms, and Historical Evolution

Corporate governance involves several key concepts that help define its scope and purpose. Though review of key corporate governance concepts and historical evolution is widespread in the extant literature, detailed review across the globe is limited. Motivated by this dearth, this study reviewed these concepts and explored how firms rely on them to implement effective corporate governance. The study employed documentary and descriptive research methods to review concepts of corporate governance, systems, mechanisms and historical perspectives around the world. Our study discovered that understanding internal controls helps ensure compliance, minimize risks and safeguard the firm’s assets. Similarly, the study discovered that executive compensation structures help align management interests with shareholder value and external oversight through auditing and regulation which provides an unbiased assessment of the firm’s financial reports. Our historical perspective of corporate governance highlighted significant milestones that have shaped its evolution. Importantly, these include reports and acts aimed at addressing corporate scandals and improving governance practices. We also discovered that to improve corporate governance standards worldwide, multilateral organizations like the Organisation for Economic Cooperation and Development (OECD) among others have played a number of roles in developing international guidelines and codes of best practice. Further, the study explored the dynamic nature of corporate governance in response to evolving economic, social and technological trends. The study concluded that understanding the concepts, systems, mechanisms and historical perspectives of corporate governance is essential for firms and stakeholders to maintain transparency, accountability and sustainable performance.

Investigating the Antecedents of Corporate Governance Influencing the Investment Efficiency of Firms: A Synthesis of Literature and Future Research Agenda

This review study investigates the critical antecedents of corporate governance affecting firms’ investment efficiency. It proposes a comprehensive framework encompassing corporate governance’s multifaceted aspects for all stakeholders’ benefit. A thorough literature evaluation has been conducted using the SCOPUS database, encompassing all publications published between 2010 and June 2023. The existing body of literature has also been examined through the theoretical frameworks, journals, authors, articles and research construct questions. After synthesising 154 articles through bibliometric analysis, four key antecedents (financial reporting quality, auditing and accounting quality, environmental, social and governance (ESG), institutional ownership and board structure) of corporate governance were identified as primary influencers of investment efficiency. New corporate governance perspectives, such as ESG and carbon taxation in the context of investment efficiency, have been identified and can be explored in depth by future researchers. The review provides a holistic framework for corporate governance, which defines the association with investment efficiency. The study presents potential future research areas where scholars can extend the scope of corporate governance from the perspective of investment efficiency.

The Impact of ESG Practices on Corporate Performance in the Context of Digital Transformation: A Case Study of TBEA

In the context of digital transformation, enterprises are facing unprecedented opportunities and challenges, and environmental, social, and governance (ESG) practices have gradually become a focus of attention for enterprises. How to improve their own ESG practices to enhance corporate performance is crucial for the sustainable development of enterprises. This article selects TBEA as a case study enterprise to study its ESG practices from the perspectives of environment, society, and corporate governance in the context of digital transformation. Furthermore, relevant indicators are used to analyze the impact of ESG practices on corporate performance. Research has found that good ESG practices can promote the improvement of a company's financial and non-financial performance, with non-financial performance mainly reflected in the value created by the company for stakeholders.

Do controlling shareholders' equity pledges exacerbate the stock price crash risk? -A study based on margin trading and securities lending transactions in China's securities market

It clarifies the influence mechanism of controlling shareholders' equity pledges, margin trading and securities lending, and stock price crash risk from the perspective of corporate governance, etc. This paper establishes a main and interaction effect regression model to empirically test the impact mechanism of controlling shareholders' equity pledge on stock price crash risk and the moderating effect of margin trading and securities lending in the process of this impact based on the measures of stock price crash risk, controlling shareholders' equity pledge level, as well as margin trading and securities lending transaction size, using China's A-share listed companies from 2010 to 2020 as the sample. It finds that: (i) The higher the controlling shareholder's equity pledge ratio of listed companies, the lower the stock price crash risk. (ii) There is no significant effect of margin trading and securities lending transactions on stock price crash risk. (iii) Securities lending transactions have a positive moderating effect in the impact of controlling shareholders' equity pledges on stock price crash risk, but the moderating effect of margin trading transactions is insignificant.

Performance Finance from the Perspective of Standard Financial Ratio Limits and Good Corporate Governance in Banking Sector Shares

Performance Finance from the Perspective of Standard Financial Ratio Limits and Good Corporate Governance in Banking Sector Shares

From home to boardroom: Marital status and its influence on ESG disclosure

AbstractThis research article investigates the relationship between the marital status of board members and organizations' environmental, social, and governance (ESG) disclosure, with Jordan as the study context. The investigation, grounded in established governance theories, primarily agency theory, stewardship theory, and social identity theory, adds a novel dimension to the discourse on corporate governance perspective. The study sample included 81 nonfinancial companies listed on the Amman stoke exchange from 2012 to 2021. The findings disclose a pronounced positive relationship between married board members and ESG disclosure separately and collectively, pointing to a normative commitment emanating from their personal lives that extends into their roles as corporate stewards, influencing corporate sustainability, and ethical governance. Conversely, the results did not indicate a relationship between single board members and ESG disclosure. The study underscores the importance of considering the personal attributes of board members in shaping corporate governance and ESG practices. Also, it encourages a broader perspective on how diverse personal backgrounds can enhance sustainability and ethical values within organizations by advocating for boards that reflect diverse marital statuses and a commitment to family values, benefitting not only shareholders but also society at large.

The Implementation of Good Corporate Governance Perspective: A Case Study on BUMDes Samsam

The role of Village-Owned Enterprises (BUMDes) aims to realize village independence in managing their finances in increasing the economy and village income. BUMDes Samsam is one of the community organizations that perform well because it is able to provide remaining business results in accordance with the ratified household budget rules. One thing that must be fulfilled is accountability for village financial management implementation activities. Accountability is often associated with Good Corporate Governance, including the financial activities of BUMDes. This research investigated the characteristics of accountability implemented by BUMDes Samsam's management. The research method used with case studies was proposed by Yin. The research was conducted at BUMDes Samsam on four informants who had direct contact with financial management accountability practices. Qualitative data was collected by observation, interviews, and documentation. The research results show that the accountability of implementation applies the characteristics of participation, transparency, kinship, honesty, loyalty, and integrity. This research can provide theoretical and practical implications that can influence village economic performance through BUMDes becoming independent villages

The Benefits of Sustainability Integration in Banking

Abstract This study investigates the way banks choose to implement sustainability, and shows the advantages and challenges that this integration brings. We used a methodology that combined bibliometric analysis and case studies that included the integration of sustainability in different banking institutions. What was observed as a result of the study is that a correct adoption of the principles of long-term sustainability have multiple benefits: - increasing operational efficiency - improving the image of banks; positive impact on society and the environment. Through this research we hope to add to the specialized literature, coming with clear evidence that the banking environment can contribute with a positive impact on sustainability. The decision-making factors in the management and the board of the banking institutions use these evidences as information that can later be transformed into performance indicators, indicators that will contribute through their results to encouraging the implementation of sustainable development within the banks. We know that the future comes with climatic challenges, or precisely a sustainable banking strategy that includes the analysis of all risks can generate a balance sheet behind anticipated. This integration of sustainability in the banking sector encompasses environmental, social and governance (ESG) principles; ESG has gained increasing attention in recent years. "Sustainable economic development has become an important factor on the agenda of various economic and business institutions, so banks and financial institutions are also an essential part of this trend" (Tarkhanova, 2018). Case studies from real institutions are included to exemplify successful implementations (BNP PARIBAS Personal Finance). Although it faces challenges and obstacles, the banking sector has much to gain by adopting sustainability from a social, corporate governance and economic perspective.

Ethical and Corporate Governance Issues in Multinational Companies

The events that caused Parmalat, a multinational conglomerate, to commit a big accounting fraud and go bankrupt are discussed in this case report from the perspectives of ethics and corporate governance. The report also discusses the steps that multinational corporations should take to ensure ethical practices and solid governance structures and processes to lessen their exposure to the repercussions that other corporations that have collapsed, with a specific focus on Parmalat, have experienced. It emphasises how Parmalat's failure was ultimately caused by a poor and inadequate corporate governance system that also contributed to other issues, leading to its demise. Following this, the first section outlines the scandal facts, including what fraudulent acts occurred, who committed them, the scandal's impact, and the measures taken to resolve the problems. The second section discusses the key theoretical ideas that explain why the scandal occurred, and the final section provides an overview of the major issues, implications, and suggestions.

How Does a Whistleblowing System Prevent Earnings Management? Insights from Corporate Governance Perspective

The whistleblowing system (WBS) is a component of the internal control system that plays a crucial role in preventing irregularities and fraud, as well as reinforcing the implementation of good governance practices. Therefore, this study aims to examine the whistleblowing system's role in moderating the effect of corporate governance (institutional ownership, independent commissioners, and audit committees) on earnings management. The population of this study comprises 147 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period from 2017 to 2021. The sample was selected using simple random sampling, resulting in 60 companies per year and a total data observation of 300. Moderated Regression Analysis (MRA) was chosen as the analysis method, and the estimation results indicate that the whistleblowing system strengthens the negative effect of institutional ownership, independent commissioners, and audit committees on earnings management. These results demonstrate that with a whistleblowing system in place, governance functions more effectively in reducing earnings management compared to companies without such a system. This study contributes to the literature by illustrating that the whistleblowing system operates more optimally with the support of corporate governance. Policies are needed to enhance the relationship between corporate governance mechanisms and earnings management activities, with the whistleblowing system policy expected to enhance the effectiveness of functional governance and consequently reduce earnings management activities.

KAJIAN AUDIT REPORT LAG DARI PERSPEKTIF TATA KELOLA KORPORASI: EKSPLORASI PERAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI

Audit report lag is an important aspect of accounting quality. However, there is a lack of previous studies investigating why companies have auditors sign financial reports late; others need less time to do so. This study determines the factors affecting the audit report lag from a corporate governance perspective during COVID-19. In addition, the role of audit quality as a moderating variable between corporate governance and audit report lag is also rare. Ninety-seven publicly listed companies participated in this study. The secondary data from 2019 to 2021 were involved. Agency theory is applied to explain the phenomenon. Moderated regression analysis is applied to gain the result. The result shows that audit tenure significantly affects the audit report lag. In addition, audit quality plays a moderating variable between board size and audit report lag. Hence, audit quality also moderates the relationship between audit tenure and audit report lag. The research has practical implications for reducing audit tenure by reducing auditing report lag. In addition to practical implications, this research also implies the theory where the results of this research can be explained by the agency theory in which to improve the quality of accounting information through the timely submission of financial reports and to shorten the time of signing an audit opinion through the governance mechanisms. Keywords: Size Of The Board Of Commissioners; Board Commissioner Meeting Frequency; Audit Tenure; Audit Opinion; And Audit Quality; Audit Report Lag

Management behaviour in Confucian culture

AbstractConfucian culture, the core value of Chinese society, influences daily life and, in the business world, has a significant impact on management behaviour. Based on an introduction of Confucian culture and Chinese society, this study investigates how Confucian culture influences management behaviour from the perspectives of economic performance, corporate governance, human capital and innovation. Furthermore, this paper discusses the implications for future research on Confucian culture and management behaviour. The analysis in this study provides a reference for research on management behaviour under specific cultural patterns.

Research on the Mechanism of ESG Performance's Impact on Enterprise Value

Clarifying the impact of enterprise ESG performance on enterprise value from multiple perspectives plays an important role in promoting the development of new quality productivity. This article is based on data from Chinese listed companies from 2013 to 2022, and from the perspective of corporate governance, examines the intrinsic relationship between corporate ESG performance and corporate value generation. Using the first type of agency cost as an intermediate variable, it analyzes the impact path of "ESG performance corporate governance corporate value". The results indicate a significant positive correlation between corporate ESG practice performance and corporate value. There is a significant negative correlation between corporate ESG practice performance and agency costs; The improvement of ESG practice performance can enhance enterprise value by reducing agency costs. The study provides empirical evidence for the positive impact of ESG practices on corporate value for Chinese listed companies, increasing the attention of enterprises, investors, and governments to ESG, and encouraging enterprises to achieve the goal of enhancing corporate value through participation in ESG practices and other means.

A Conceptual Perspective On Corporate Governance And Financial Distress In Malaysia

Forecasting financial stability and the potential occurrence of financial distress has been a subject of considerable interest for many years due to its significant implications for listed companies, stakeholders, and the overall economy of a country. Financial difficulties may expose the companies to the risk of bankruptcy or liquidation. This study aims to explore whether corporate governance, specifically on the characteristics of the board of directors, has an impact on the financial well-being of the company. This study also employs a corporate governance perspective to examine the composition of the board and its influence on the financial well-being of the companies. By demonstrating the relevance of corporate governance concerning financial distress, this study provides valuable insights for shareholders and financial institutions.

Green banking disclosure from the perspective of corporate governance, financial slack and human resource slack in Indonesia

Green banking is a long-term business strategy with the main target of achieving sustainable benefits and preserving the environment. Determining the ability of corporate governance to influence green banking disclosure in banking companies in Indonesia was the aim of the study. Annual reports and sustainability reports of banking companies listed on the Indonesia Stock Exchange are used as secondary data. 84 data were used after selection using the purposive sampling method. The technique used to analyze the research data is SmartPLS. The findings show that good corporate governance can improve green banking disclosure. Financial slack and human resource slack, as moderating variables, can moderate the influence of corporate governance on green banking disclosure. The results also indicate that green banking disclosure has the potential to encourage positive changes in sustainable banking practices and information transparency. In the end, good corporate governance can stimulate bank management to care more about environmental issues. Financial and human resource slack in banking strengthens the relationship between the two and increases a company’s role in maintaining environmental and social sustainability.

GRIS Articulator: A Social Business Archetype for Management in Responsibility and Social Intelligence from the Perspective of Social, Environmental, and Corporate Governance

GRIS Articulator: A Social Business Archetype for Management in Responsibility and Social Intelligence from the Perspective of Social, Environmental, and Corporate Governance

Research on the Impact of ESG Performance on Corporate Exports

The development of a green and low-carbon economy has become a crucial topic in global economic advancement. China's export trade faces a complex international landscape characterized by escalating trade frictions, rising trade protectionism, and a sluggish traditional trade environment in the post-pandemic era. This paper primarily explores the relationship between the ESG performance of Chinese A-share listed companies and their export activities. Initially, it conducts a literature analysis on the impact of ESG performance on corporate exports from the perspectives of environment, social responsibility, and corporate governance. This paper conducts empirical analyses using relevant regression models to test the hypotheses. Furthermore, in examining the transmission pathways of the impact of ESG performance on corporate exports, an intermediate variable regression model is established to analyze the specific roles played by corporate innovation as a mediator. In conclusion, the findings are as follows: (1) Overall ESG performance positively influences corporate exports, indicating that better ESG performance is conducive to enhanced export activities. (2) Enterprises with superior ESG performance can promote exports by improving their innovation capabilities.

Digital Transformation and Enterprise Value -- Based on Empirical Data of Listed Companies in China

Enhancing corporate value is of significant importance for promoting sustainable and high-quality development. In the current era of informatization, digital transformation has become an indispensable path for corporate growth. This study uses financial and related data from Chinese A-share listed companies from 2010 to 2022 as samples to empirically examine the impact of digital transformation on corporate value. Based on the perspectives of environmental performance, social responsibility, and corporate governance, the study explores its operating mechanism. Empirical results indicate that digital transformation can promote the enhancement of corporate value through the pathways of environmental performance, social responsibility, and corporate governance. Furthermore, heterogeneous results suggest that, in terms of regions, the impact of digital transformation on corporate value is more significant in the eastern region. From the perspective of companies, the influence is more pronounced for those in the growth stage and with a proportion of party member executives exceeding 50%. The above results provide empirical evidence for a comprehensive understanding of the value effects of digital transformation and the mediating role of environmental performance, social responsibility, and corporate governance. It also offers valuable insights for enhancing corporate value.

Analyzing The Factors Affecting The Quality of Accounting Disclosure of Chinese Listed Companies Based on Corporate Governance Perspective

Analyzing The Factors Affecting The Quality of Accounting Disclosure of Chinese Listed Companies Based on Corporate Governance Perspective

Manager myopia and green technology innovation

PurposeWith the growing concern of various sectors of society regarding environmental issues and the promotion of sustainable development, green technology innovation is generally considered to be conducive to the long-term development of enterprises. However, because of the existence of agency problems, managers may have shortsighted behaviors. Then how will managers' shortsighted behaviors affect enterprises' green technology innovation?Design/methodology/approachThis paper uses machine learning-based text analysis methods to construct a manager myopia index based on the data from A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2015 to 2020. We examine the impact of manager myopia on green technology innovation in companies.FindingsOur study finds that manager myopia significantly inhibits green technology innovation in companies. However, when multiple large shareholders coexist and the proportion of institutional investors' holdings is high, it can alleviate the inhibitory effect of manager myopia on green innovation. Heterogeneity tests show that the impact of manager myopia on green technology innovation is relatively significant in non-state-owned and manufacturing companies, as well as in the electricity industry. Robustness tests demonstrate that our conclusions remain valid after using propensity score matching to eliminate endogeneity problems.Originality/valueFrom the perspective of corporate governance, this paper incorporates managers' shortsightedness, multiple large shareholders and institutional investors' shareholding ratios into the same logical framework, analyzes their internal mechanisms, helps improve corporate governance, enhances green innovation capabilities and has strong implications for the implementation of national innovation-driven development strategies and the achievement of “carbon peak” and “carbon neutrality” targets.