ABSTRACT Digital government construction is profoundly reshaping the institutional environment for corporate operations. Using a sample of China’s listed firms from 2010 to 2023, we investigate the impact of digital government development on corporate cash holdings. The findings suggest that digital government construction induces firms to increase cash holdings. Mechanism tests show that this increase is driven by precautionary motives, as firms prepare for coping with reinforced administrative supervision, intensified market competition, and enterprise digital transformation under government digitalization. Cross-sectional analyses reveal that the effect is particularly strong in firms facing weaker corporate governance, lower market positions, and higher financial constraints. We also find that the increase in cash holdings driven by digital government development contributes to higher firm value. This study highlights the critical role of government in influencing corporate liquidity management and provides valuable insights for enterprises to adjust their financial strategies in response to digital government construction.

Purpose Responsible innovation is the hope of facing grand challenges. Currently, European countries are establishing new policies and strategies to foster them. However, the concept is still at an embryonic level and requires a large focus from both practitioners and researchers. Additionally, a significant research gap exists in terms of the integrated corporate governance's effect on responsible innovation. Hence, in this study, we investigate the concept of responsible innovation and the effect of board diversity on German companies. Design/methodology/approach Our sample is composed of firms listed firms of the H-DAX index from 2010 to 2023. First, we used principal component analysis (PCA) to define responsible innovation. We then run our model using the generalized method of moments (GMM) estimation to test the effect of board diversity measures on responsible innovation. Findings Our results highlight the positive effect of board independence on responsible innovation. However, the board size and the female executive directors' presence have negative effects. Finally, we found that CEO duality has a significant positive influence on responsible innovation. Research limitations/implications Although this study is limited to the German context, it provides an extensive view of how decision makers can manage and orient the board of directors and align their corporate governance toward responsible innovation targets. Originality/value The originality of this paper lies in the focus on the concept of responsible innovation, which remains underexplored, although it has gained increasing attention over the last century. It is crucial to orient the corporate governance structure toward responsibility and innovation.

Purpose This study aims to explore the transformative impact of artificial intelligence (AI) on corporate governance within Kuwait’s public sector, focusing on how AI enhances transparency, accountability and decision-making. Design/methodology/approach The research employs a mixed-methods approach, analyzing the integration of AI in governance frameworks through both quantitative data and qualitative insights from key stakeholders. It examines how AI technologies streamline compliance, mitigate risks and improve operational efficiency in public institutions. Findings The study reveals that AI, when strategically implemented, significantly enhances governance structures by improving transparency and institutional effectiveness. However, challenges related to ethical considerations and the need for a regulatory framework tailored to Kuwait’s unique political and cultural context must be addressed for successful adoption. Research limitations/implications The study is limited by its focus on Kuwait’s public sector, which may not fully reflect AI adoption challenges and opportunities in other regions. Future research should consider broader comparative studies to examine AI’s governance impact across different socio-political environments. Practical implications The findings offer actionable insights for policymakers in Kuwait, providing a roadmap for integrating AI in governance to enhance public trust and institutional performance. Originality/value This paper contributes to the growing discourse on digital governance by presenting Kuwait as a case study for how AI can be utilized to modernize public sector governance. It offers new perspectives on overcoming the challenges of AI adoption in government institutions.

Purpose This study examines the implications of top executives' narcissism on auditor appointment and remuneration, focusing on the association between narcissistic leadership traits and audit outcomes in the context of an emerging economy, Bangladesh. Design/methodology/approach Using a hand-collected sample of 436 firm-year observations from publicly listed firms in Bangladesh over the period 2018–2021, this study employs panel regression to examine the impact of executive narcissism on auditor selection and audit fees. Endogeneity is addressed using a combination of entropy balancing, a two-stage least squares instrumental variable approach, and the Heckman two-stage selection model. Findings The findings indicate that narcissistic chief executive officers and chairs tend to appoint geographically proximate auditors while paying higher audit fees, potentially to exert greater influence over the audit process. This behavior is more pronounced in family firms and linked to faster audit report issuance, with no evidence of improved audit quality. However, Big 4 auditors weaken the observed effect. The results remain robust across alternative measures of executive narcissism and auditor–client distance, offering novel insights into how executive traits shape corporate governance and audit outcomes. Practical implications The study underscores the need for regulatory interventions to safeguard auditor independence and uphold audit quality, particularly in settings where narcissistic executives may prioritize personal influence over organizational integrity. It further highlights the importance of auditors to carefully assess risks associated with executive personality traits when determining audit fees and providing audit services. Originality/value This research is among the first to examine the interplay between executive narcissism and auditor–client geographic proximity within an emerging economy. By extending the literature on leadership traits, corporate governance and audit outcomes, the study provides novel insights of relevance to academics, policymakers and practitioners.

The subject of corporate governance has spurred research interests with respect to principal- agent relationship in recent times, especially with the existence of publicly quoted companies. Several cases of performance inefficiencies, deterioration in performance or total liquidation of various organizations around the world, have been ascribed to lack of managerial leadership quality and corporate governance. This study therefore examines the effect of corporate governance attribute on the financial performance of selected Nigerian Deposit Money Banks. Ex-post facto research design was employed for this study. The population of the study consists of fourteen (14) NDMBs. The sample size of seven (7) NDMBs was arrived at using simple purposive sampling technique due to due banks which have their annual report and accounts readily accessible for the study period. Analytical techniques that were used in the study consist of both descriptive and inferential statistics. Panel regression was used to examine the relationship between corporate governance attributes and financial performance of selected NDMBs. The result of panel regression analysis on the relationship between corporate governance attributes and financial performance of selected NDMBs revealed that all the sampled variables were correlated positively with ROI (0.8620) SIZE (0.0983), Board Size (0.0784), Audit independence (0.0683) and CEO duality (0.0209) respectively. The study revealed that there is a significant relationship between corporate governance attribute on the financial performance of selected Nigerian Deposit Money Banks. It is therefore recommended that as practicable as possible, Nigeria Deposit Money Banks should ensure that they maintain a clear cut separation of the roles of board Chairman and Chief executive officer (CEO-duality).

This study examines the adequacy of Uganda’s equal protection and anti-discriminatory laws in ensuring female representation on corporate boards, situating the analysis within corporate governance frameworks and feminist legal theory. Despite constitutional guarantees under Articles 21, 32, and 33, and Uganda’s ratification of instruments such as CEDAW and the Maputo Protocol, women remain markedly underrepresented, often below 10% on corporate boards. Existing statutory instruments offer limited or non-binding provisions on gender diversity. Employing a doctrinal, socio-legal, and empirical methodology, the research analyses legal frameworks, case law, and policy instruments, supplemented by key informant interviews, structured questionnaires, and document reviews from eight Uganda Securities Exchange-listed companies. Comparative analysis draws lessons from jurisdictions with legislated quotas, such as Norway, France, and Germany, where binding measures have yielded significant gains in female board representation. Findings reveal that Uganda’s legal regime remains largely aspirational, relying on voluntary compliance and market forces, with enforcement mechanisms underutilised. The Equal Opportunities Commission possesses broad jurisdiction, including over the private sector, yet interventions are complaint-driven and infrequent. The Companies Act is silent on gender representation, reinforcing entrenched male dominance in board appointments. Respondents overwhelmingly (88%) supported adopting statutory quotas to accelerate gender equity. The study concludes that without binding legal mandates, robust enforcement, and targeted affirmative action, Uganda risks perpetuating governance structures that underutilise the strategic and ethical benefits of gender-diverse boards. Legislative reform, coupled with proactive regulatory oversight, is essential to translate constitutional principles into meaningful corporate governance outcomes

This paper examines the impact of female analyst coverage on firms’ environmental and social (E&S) performance. Exploiting broker closures as a quasi-exogenous shock to analyst coverage, we find that firms experiencing an exogenous decline in female analyst coverage subsequently show a significantly larger drop in E&S scores than those experiencing an equivalent decline in male analyst coverage. To explore the underlying mechanisms, we develop novel machine-learning models to analyze more than 2.4 million analyst reports and 120,000 earnings call transcripts. Our analysis shows that, compared with their male counterparts, female analysts are more likely to address E&S issues, particularly those involving regulatory compliance, stakeholders, and the environment, in both research reports and earnings conference calls. They also display distinct cognitive and linguistic patterns when discussing E&S issues. Furthermore, female analysts are more likely to issue lower stock recommendations and target prices (lower stock recommendations) following negative E&S discussions in their reports (E&S incidents) than male analysts. Finally, investors respond more strongly to female analysts’ negative tones when discussing E&S issues. Overall, our findings suggest that gender diversity among analysts plays a significant role in shaping corporate E&S practices and provide new insights into the origins of gender differences in skills within the equity analyst profession. This paper was accepted by Will Cong, finance. Funding: We acknowledge financial support from the Social Sciences and Humanities Research Council of Canada [Grant 435-2022-0285] and the Sauder Exploratory Research Grants Program. K. Li acknowledges financial support from the Canada Research Chair in Corporate Governance. T. Zhang acknowledges data support from the Whitcomb Center for Research in Financial Services at Rutgers University. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2024.06429 .

This article examines how the principle of energy solidarity and the EU regulatory framework on capacity sharing affect the legal duties of directors in energy companies. Energy solidarity, as established in Article 194(1) of the Treaty on the Functioning of the European Union (TFEU) and reinforced by case law such as Germany v. Poland (OPAL), has evolved into a legally binding norm that reshapes corporate responsibilities. The analysis focuses on how this principle, together with regulations like (EU) 2017/1938 and (EU) 2019/941, interacts with traditional fiduciary duties of care and loyalty in the corporate governance of critical energy infrastructure. Through a doctrinal method, the article argues that solidarity obligations now impose preventive duties on directors, requiring them to integrate crisis response mechanisms and cross-border coordination into their decision-making. Regulatory compliance is no longer limited to internal matters but extends to geopolitical risk modelling, infrastructure resilience, and intergovernmental cooperation. Directors may incur liability for failing to anticipate solidarity-based obligations, especially under national laws aligned with stakeholder governance models. The article concludes that the convergence of EU energy security law and corporate governance requires a recalibration of board practices. Traditional tools such as risk committees and stress testing remain relevant but must be precisely adapted to solidarity-related obligations. Directors who overlook these developments may not only face regulatory consequences but also increasing scrutiny from shareholders and the public. Energy solidarity is thus not a peripheral concern but a core component of lawful and resilient corporate governance in the EU energy sector.

The banking industry plays a strategic role in supporting the national economy as a financial intermediary institution that collects and distributes public funds. Following regulatory changes, the Financial Services Authority (OJK) has established a grouping of banks based on core capital, known as the Core Capital Bank Group (KBMI). KBMI 3 and KBMI 4 represent large-capital banks with broad business scopes and a crucial role in maintaining financial system stability. The 2019–2024 period is relevant for this study because it encompasses the regulatory transition from BUKU to KBMI. This study aims to analyze and compare the banking health of banks classified as KBMI 3 and KBMI 4 using the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method during the 2019–2024 period. This study uses a quantitative descriptive approach with a comparative approach. The research sample was determined using a purposive sampling technique, including banks in KBMI 3 (Bank Panin, Bank BSI, and Bank Permata) and banks in KBMI 4 (Bank BRI, Bank Mandiri, and Bank BCA). The data used were secondary data obtained from the bank's annual financial reports. Data analysis was performed using two-group difference tests, namely the Independent Sample t-test and the Mann–Whitney U-test. The results showed a significant difference in the bank health level between KBMI 3 and KBMI 4 across all RGEC components. KBMI 4 had a better Risk Profile performance with a lower NPL ratio and a more stable LDR/FDR. In the GCG component, KBMI 4 demonstrated stronger governance implementation. In terms of Earnings, KBMI 4 had a higher level of profitability and better operational efficiency. Furthermore, the Capital component indicated that KBMI 4 had more stable and robust capital to support its business activities. Overall, this study concluded that KBMI 4 had a better level of bank health than KBMI 3 based on the RGEC method during the 2019–2024 period.

Can the application of artificial intelligence improve corporate governance level of listed companies? The moderating role and heterogeneity of patient capital

Corporate governance for digital transformation: The role of ownership and the board of directors

This study examines the influence of ownership structures on earnings management practices among manufacturing firms listed on the Indonesia Stock Exchange (IDX) during 2021–2024. It further investigates whether board composition heterogeneity moderates this relationship and whether firm performance mediates it. A quantitative design was employed, utilizing audited financial statements and annual corporate reports as secondary data. From purposive sampling, 100 firm-level observations were analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM) with SmartPLS. The findings indicate that concentrated ownership, managerial shareholding, foreign equity participation, and institutional investment do not significantly affect earnings management behaviour. Likewise, diversity in board membership does not alter the ownership–earnings management nexus. In contrast, firm performance shows a significant positive association with earnings management, though it does not operate as a mediating mechanism. Interpreted through agency theory, the results suggest that prevailing ownership configurations and board oversight remain insufficient to mitigate opportunistic managerial conduct, particularly under performance pressures. These insights contribute to ongoing debates on corporate governance and reporting credibility, offering implications for investors, regulators, and decision-makers. However, the conclusions are constrained by the study’s sectoral focus and limited temporal scope, which restricts broader generalization.

Corporate governance mechanisms, particularly the roles of the audit committee and independent commissioners, are increasingly examined in relation to their influence on firm value through the quality of financial reporting. This study aims to examine the effect of the audit committee and board independence on firm value through the mediating role of financial reporting quality. The study employs a quantitative explanatory design using secondary data from annual reports of maritime transport companies during 2020–2024. Samples were selected through purposive sampling, and data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0. The results indicate that the audit committee has a positive and significant effect on firm value, while board independence has no significant impact. Financial reporting quality positively affects firm value but does not mediate the relationship between the audit committee or board independence and firm value. The study contributes theoretically to corporate governance literature and provides practical insights for public companies to strengthen audit functions and the reliability of financial reporting.

Corporate governance commands the ultimate way any corporation acts. Corporations are now more involved in accounting fraud. This is however no longer an uncommon crime in today’s world but when this fraud is committed by top leadership management it can go down in history as some of the greatest corporate scandals. Over the years after the millennium, the increase of high-profile accounting scandals has emerged within our eyes. The impact of reporting inaccurate financials cannot be over emphasized. There are series of consequences that arise from an inappropriate financial reporting from any corporation. A case study on major culprits to this crime will show how deep this premeditated offense can go and how well-orchestrated the fraudulent activity is achieved. These are such huge wrongdoing that it involves more than one person. The idea of having the Chief Executive Officer (CEO), Chief Financial Officer (CFO) and top Directors in the corporation participate is alarming. In some cases, the auditors play an essential role in the coverup of this misconduct. The price to pay is so costly as convicted persons face prison sentences not to talk all their assets and money disappeared. Standards have now been raised in terms of auditing. Financial servicing organisation had modified their audit approach and procedure to enable the firms detect fraudulent activities. This has enabled stakeholders and shareholders to rely more on audited financial statements in making strategic decisions. Also, the vetting and appointment of board of directors have been strengthen to assure the right person is appointed. Getting the right person cannot just be enough, effective internal controls need to be put in place to mitigate audit and fraud risk. Many corporations now have internal auditing teams to avoid these occurrences. This study further ends with the recommendations on resolutions of these crimes as the repercussions are stiff and detrimental.

This research investigates the relationship between external auditor independence and the financial reporting quality (FRQ) in the banking sector of Jordan. It specifically examines the mediation role of corporate governance, environment, auditor tenure, fees, size of the auditing firms, and bank-related factors. A partial least squares structural equation modeling (PLS-SEM) approach is used to analyze survey findings based on 287 responses from financial experts of commercial and Islamic banks. Findings have found that auditor independence has a strong and direct positive association with FRQ. Corporate governance and environments are found to have significant mediations, suggesting that auditor independence is more effective within strong institutional environments. However, auditor tenure has been found to have a non-linear moderation effect. It implies that moderate tenure increases FRQ, while excess engagement weakens independence. Findings also negate any association of fees, size of auditing firms, and bank-related factors (Nguyen et al., 2023; Okoh & Audu, 2024). Research contributes to theories of agency and institutions by placing a strong emphasis on the importance of governance and environments in facilitating auditor independence. These findings also underscore the importance of implementing effective regulatory practices in developing countries worldwide.

This study examines whether sustainability information disclosure (SID) in the Arab Gulf acts as a substantive strategic tool that enhances corporate outcomes or merely serves as a symbolic gesture to maintain legitimacy. Using data from 92 listed firms across the Gulf Cooperation Council (GCC) from 2020 to 2023, the study distinguishes between the level (volume) and quality (credibility) of disclosure. It examines their respective impacts on return on assets (ROA), return on equity (ROE), and financial reporting quality. The results reveal a consistent positive association between disclosure levels and financial performance, suggesting that volume-based corporate environmental, social, and governance (ESG) reporting may support short-term legitimacy and market confidence. In contrast, disclosure quality shows weaker and less consistent effects, highlighting a potential disconnect between visibility and substance. This pattern reflects the strategic use of disclosure for symbolic compliance in the GCC, where ESG reporting is often adopted to satisfy external expectations rather than to support internal transformation or long-term value creation. The findings position sustainability disclosure as an underleveraged tool for strategic knowledge management. While current practices enhance legitimacy, they fall short of driving performance gains through internal learning or reporting integrity. Policy implications include the need for harmonised disclosure frameworks, mandatory assurance standards, and improved alignment with international ESG guidelines to strengthen the credibility and impact of corporate sustainability communication in emerging markets.

This study investigates the effect of risk management and corporate governance on banking performance. The research is motivated by the increasing exposure of banking institutions to various financial and operational risks, as well as the crucial role of sound governance in maintaining stability and performance in the banking sector. The objective of this study is to analyze the direct influence of risk management and corporate governance on bank performance. This research employs a quantitative approach using secondary data derived from published annual reports of banking companies. The sample is selected through purposive sampling based on data availability and research criteria. Data analysis is conducted using Partial Least Squares Structural Equation Modeling with the WarpPLS application, which allows for the assessment of both measurement and structural models. The findings reveal that risk management has a positive and significant effect on banking performance, indicating that effective risk identification, assessment, and control contribute to improved operational efficiency and financial outcomes. Corporate governance also demonstrates a positive influence on banking performance, reflecting that transparency, accountability, and effective supervisory mechanisms enhance managerial effectiveness and stakeholder confidence. Furthermore, the results show that risk management and corporate governance jointly play an important role in strengthening banking performance.

This study investigates how corporate governance (CG) mechanisms influence the quality of integrated reporting (IR) by conducting a systematic review of 23 empirical articles published between 2020 and 2025, sourced from Sinta 4-accredited or Scopus Q4-indexed journals. The articles were selected using predefined inclusion criteria and analyzed thematically. The findings show that governance factors such as board independence, audit committee activity, board size, gender diversity, audit quality, and executive compensation play a significant role in enhancing IR quality. In Indonesia and other regions such as Asia, Europe, and South Africa, the influence of CG on IR is evident, although variations exist due to sectoral and methodological differences. Most studies are grounded in agency theory, with support from stakeholder and legitimacy theories. The review highlights that robust governance practices are consistently associated with high-quality integrated reporting, offering actionable insights for regulators, policymakers, and organizations aiming to strengthen CG frameworks and reporting practices.

Against the backdrop of global energy transition and sustainable development, advancing the new energy industry has become a critical pathway for optimizing energy structures and achieving the dual carbon goals. However, while China’s new energy sector has experienced rapid growth, it has also exposed a series of challenges, including insufficient innovation momentum, irrational resource allocation, and low conversion rates of R&D outcomes. To delve into the root causes and propose improvement pathways, this study selected 76 listed new energy enterprises from 2021 to 2023 as samples. It comprehensively employed the DEA-BCC model, Malmquist productivity index, and Tobit regression model to conduct empirical analysis across three dimensions: static, dynamic, and influencing factors. The findings revealed: firstly, during the study period, overall static efficiency remained low, with only about 32.90% of enterprises operating efficiently. Efficiency decomposition indicated that low and unstable pure technical efficiency constrained overall efficiency gains. In contrast, while scale efficiency was relatively high, its growth was sluggish, and some enterprises exhibited significant scale irrelevance. Secondly, dynamic total factor productivity exhibited fluctuating growth primarily driven by technological progress. However, declining technical efficiency—particularly the deterioration of scale efficiency—indicated that while the new energy industry advanced technologically and expanded in scale, its management capabilities had not kept pace. This mismatch among the three factors trapped the industry in a “high investment, low efficiency” dilemma. Thirdly, regression analysis of influencing factors indicated that corporate governance and market competitiveness were pivotal to innovation efficiency: the proportion of independent directors and revenue growth rate exerted significant positive impacts, while equity concentration showed a significant negative effect. Firm size had a weaker influence, and government support did not demonstrate a significant positive impact. Accordingly, this paper proposes pathways to enhance innovation efficiency in new energy enterprises, including optimizing corporate governance structures, formulating differentiated subsidy policies, and improving the innovation ecosystem. The findings of this study not only provide empirical references for the innovative development of the new energy industry but also offer theoretical support for relevant policy formulation.

This study aims to examine the effect of bank soundness, measured using the Risk Profile, Good Corporate Governance, Earnings, and Capital (RGEC) framework, on the firm value of conventional banks. Firm value is proxied by Tobin’s Q, while bank soundness is measured by non-performing loans (NPL) as a proxy for risk profile, self-assessment scores as a proxy for good corporate governance, return on assets (ROA) as a proxy for earnings, and the capital adequacy ratio (CAR) as a proxy for capital. This research employs descriptive and verificative methods with a quantitative approach. Data analysis is conducted using panel data regression. The sample is selected through purposive sampling, resulting in 42 conventional banks listed on the Indonesia Stock Exchange during the 2020–2023 period. Hypothesis testing is performed using the F-test and t-test. The results indicate that the risk profile proxied by NPL has a significant negative effect on firm value. Good corporate governance proxied by self-assessment shows no significant effect on firm value. Earnings proxied by ROA have a significant negative effect on firm value, while capital proxied by CAR has a significant positive effect on firm value. The adjusted R-squared value of 0.164 suggests that 16.4% of the variation in firm value can be explained by risk profile, good corporate governance, earnings, and capital, while the remaining 83.6% is influenced by other factors outside the research model.