Differences In Governance Structures Research Articles

Protected area planning to conserve biodiversity in an uncertain future.

Protected areas are a key instrument for conservation. Despite this, they are vulnerable to risks associated with weak governance, land-use intensification, and climate change. We used a novel hierarchical optimization approach to identify priority areas for expanding the global protected area system that explicitly accounted for such risks while maximizing protection of all known terrestrial vertebrate species. To incorporate risk categories, we built on the minimum set problem, where the objective is to reach species distribution protection targets while accounting for 1 constraint, such as land cost or area. We expanded this approach to include multiple objectives accounting for risk in the problem formulation by treating each risk layer as a separate objective in the problem formulation. Reducing exposure to these risks required expanding the area of the global protected area system by 1.6% while still meeting conservation targets. Incorporating risks from weak governance drove the greatest changes in spatial priorities for protection, and incorporating risks from climate change required the largest increase (2.52%) in global protected area. Conserving wide-ranging species required countries with relatively strong governance to protect more land when they bordered nations with comparatively weak governance. Our results underscore the need for cross-jurisdictional coordination and demonstrate how risk can be efficiently incorporated into conservation planning. Planeación de las áreas protegidas para conservar la biodiversidad en un futuro incierto.

Assessing the nature of corporate environmental responsibility in Zimbabwe’s gold mining sector

Orientation: In Zimbabwe, mining is a significant economic sector but has adverse environmental impacts.Purpose: This article assesses environmental responsibility practiced by gold mining companies differentiated by ownership structure and assesses the ownership system that leads in environmental, social and governance practices.Motivation for the study: The adverse environmental impacts inherent in gold mining need assessments to gauge the integrity of the environmental stewardship using the structure–conduct–performance paradigm as an assessment framework.Design, methodology, approach: The mode of assessment is to establish, through the structure–conduct–performance paradigm, whether these governance systems affect the companies’ environmental performance, and if so, to what extent. The article uses a multiple case study design with a population of 35 large-scale gold mining companies that are members of both the Chamber of Mines of Zimbabwe and the Mine Industry Pension Fund, and 23 participated. The article uses a mixed methods approach using a questionnaire and structured interviews to collect quantitative and qualitative data, respectively. The study employed Kruskal–Wallis rank test, to rank the differences in governance structures’ performances.Findings: The results show that gold mining companies in Zimbabwe exercise environmental stewardship. Mining companies listed on foreign exchanges and local private limited companies exhibit more responsibility than other ownership types.Practical implications: Government policy to compel soil restoration and overburden management can improve these practices.Contribution/originality/value of the study: This study contributes to the burgeoning literature on corporate environmental responsibility by illuminating the possible role played by ownership structure in environmental responsibility.

Events as a means to foster knowledge-driven urban development: Experience from the new district development in Nanjing

Events can bring important impetus to urban development. In addition to hardware investments, such as infrastructure, events also have important potential in the development of knowledge cities. Nanjing is a typical city where China's knowledge industry is rapidly growing. Since the end of the last century, Nanjing has been promoting new district development on the city's periphery and has hosted a series of events, including the 10th National Games in 2005 and the 2nd Youth Olympic Games in 2014. In this process, the city government also hopes to explore the potential of the knowledge economy and is committed to providing a new direction for urban development.This work reviews the history of Nanjing's knowledge city development from two different dimensions (land development and knowledge development) and summarises the related achievements and lessons in different periods. The authors aim to identify the diverse effects of events in urban social and economic development based on the analysis of the differences in governance structure between land development and knowledge development. This work contributes to the literature on events and provides insights into the potential uses of events as a mechanism for knowledge-driven urban development.

Systematic review of the factors and the key indicators that identify doctors at risk of complaints, malpractice claims or impaired performance

ObjectiveTo identify the risk factors associated with complaints, malpractice claims and impaired performance in medical practitioners.DesignSystematic review.Data sourcesOvid-Medline, Ovid Embase, Scopus and Cochrane Central Register of Controlled Trials were searched...

Institutional Polycentrism and Community Resilience: Evidence From The COVID-19 Crisis In The U.S.

Communities expect crises to occur, like natural disasters, man-made disasters, complex emergencies, and pandemic events, which is why many communities create institutions to inform individuals against potential harm and protect local resources from contamination or depletion. Differences in how communities govern local institutions in response to crisis remains an understudied component of the community resilience literature. Institutional governance in this context refers to how communities develop strategies and make decisions in a system of related organizations. Using an institutional polycentric framework, we analyze how institutional governance affects community resilience during an unexpected crisis. We then investigate our theoretical framework empirically using the context of the spread of the novel Coronavirus in January 2020. Differences in public health governance exist across counties in the U.S. with regards to the centralization of public health decision-making. While some states give more autonomy to local governments and private entities, other states maintain decision-making power at the state-level. Our results show that counties under decentralized governance arrangements observe less cases and deaths related to COVID-19, while counties under centralized arrangements see an increase in cases. This result can be explained by the timing of emergency declarations issued across counties, as decentralized counties have the authority to issue public health orders sooner than centralized institutions, who must wait for direction from the state. As we think about communities facing unexpected crisis in the future, our results offer novel insight into the how differences in governance structure across institutions contributes to their ability to manage uncertainty, which can have serious consequences for community health and the protection of local public goods.

At the intersection of corporate governance and performance in family business settings: Extant knowledge and future research

AbstractDespite the proliferation of research on governance and performance of family firms over the past decades, the extant empirical evidence remains inconclusive. Acknowledging multiple sources of family firm variation, scholars started explaining the observed differences in governance structures and performance outcomes by taking into consideration the heterogeneity among family firms. In this paper, we undertake a review of the literature at the intersection of governance and performance in family firms to elucidate (a) the role of various governance attributes as performance drivers; and (b) the variability of governance effects across different performance indicators. By taking stock of what is already known and discussing avenues for further investigation, we seek to contribute to a more fine‐grained understanding of the intricate governance–performance relationship in light of the heterogeneous nature of family firms. The key priorities for future inquiry consist in: the identification of missing mediating and moderating variables; the inclusion of currently underexplored governance determinants of family firm performance; and the analysis of complementarity and substitution effects among multiple attributes of monitoring and their changing dynamics over time to secure an optimal governance–performance alignment in family firms.

Bank-Lending Channel of Monetary Policy Transmission: Evidence from ASEAN

This article examines the existence of a bank-lending channel in Association of Southeast Asian Nations (ASEAN) using a sample of 328 banks from 2009 to 2015. The findings confirm that a bank-lending channel is effective. In particular, we find that consumer loans and commercial loans are sensitive to changes in monetary policy, but mortgage and corporate loans are not. We also find that commercial banks are vulnerable to monetary policy changes, but both investment and Islamic banks are not. On the contrary, special purpose banks are able to overcome the effect of monetary policy tightening by supplying more loans. The effectiveness of a bank-lending channel in ASEAN also holds when we control for the differences in governance structure of the countries. Policymakers need to take these into consideration in designing an effective monetary policy.

Mangrove cover and cover change analysis in the transboundary area of Kenya and Tanzania during 1986–2016

ABSTRACTMangrove forests are among the most threatened ecosystems on earth. Some of these forests traverse national boundaries complicating their management due to differences in governance structures between countries. To improve the management of transboundary species regular monitoring is essential. Remotely sensed data were used to estimate forest cover and analyze conditions of mangroves in the proposed transboundary conservation area (TBCA) between Kenya and Tanzania. Image analysis was performed using unsupervised and supervised classification methods. The transboundary mangroves cover an estimated 11,906 ha; 55% being in Kenya, 45% in Tanzania. Ceriops tagal, Avicennia marina, and Rhizophora mucronata species co-dominate the mangroves of the transboundary area. The hotspot for loss and degradation of mangrove in the TBCA is Vanga in Kenya with a loss of 27 ha/yr. Harvesting of mangrove wood products have contributed to the loss of mangroves in the transboundary area. TBCA formation could play a critical role in ensuring sustainable mangrove resources utilization.

MANAGEMENT CONTROL SYSTEMS IN FAMILY FIRMS: A REVIEW OF THE LITERATURE AND DIRECTIONS FOR THE FUTURE

AbstractFamily firms play a significant role in the global economy. Although family firm literature has devoted much time and effort to investigating topics concerning corporate governance, leadership, ownership and succession, accounting issues have received relatively scant attention. In this paper, we assemble and critically review extant literature on the choice of management controls. This is an essential topic for firms as management control systems (MCS) are used to make sure subordinates behave in function of the goals of the firm. Family firms, however, have distinct features, such as differences in governance structures and goals, which can have a significant impact on whether and how MCS are used. We conclude this review paper by providing avenues for future research that can advance our understanding of both the determinants and the outcomes of the choice of MCS.

Corporate Social Responsibility, Corporate Governance, and Managerial Risk-Taking

This dissertation investigates the association between corporate social responsibility (CSR) and managerial risk-taking, as well as the differences in governance structure that affect this association. Using a sample of US public firms from 1995 to 2009, we find that firms with strong CSR records engage in higher risk-taking. Furthermore, we find that this relationship is robust when accounting for differences in governance structure and correcting for endogeneity via simultaneous equations modeling. Additional testing indicates that performance in the employee relations dimension of CSR in particular increases with risk-taking, while high firm visibility dampens the association between CSR and the accounting-based measures of risk-taking. Prior literature establishes that high managerial risk-tolerance is necessary for the undertaking of risky yet value-enhancing investment decisions. Thus, the main findings suggest that CSR, rather than being a waste of scarce corporate resources, is instead an important aspect of shareholder value creation. They contribute to the debate on CSR by documenting that corporate risk-taking is one mechanism among others through which CSR maps into higher firm value.

Operationalizing governance categories of projects

This study operationalizes an existing concept for the categorization of governance approaches for projects. For that the concept's four governance paradigms, based on the overlay of the shareholder–stakeholder orientation with the behavior–outcome control of a project's parent organization are measured. The measurement dimensions were derived from the intersection of governance and organization theory with project management theory, thereby addressing those areas of corporate governance and organizational control that extend into projects. The application of the measurement construct, its validity and reliability are tested through a world-wide questionnaire with 478 responses. Analysis of the responses shows the differences in governance structures for projects by country, project size, and project type. The results are important for managers developing governance structures and academics developing governance theories.

Corporate or Network Governance? The case of the Italian Productive Chains and their scaffolding finance approach.

We investigate and find out the inner differences between stand-alone firms and those participating to Productive Chain Networks (PCNs) as far as ownership and corporate governance characteristics are concerned. PCNs are typical Italian economic realities made of small and medium enterprises (SMEs) which behave like a unique meta-firm. Different clusters are found from an empirical analysis: firms outside PCNs, leaders in PCNs and suppliers participating to PCNs. The clusters differentiate on corporate governance practices and the consequent capability to attract funding from financial institutions. The inner differences in governance structure relate to the underpinnings of the competitive advantage of the chain: the higher the human capital contribution, the more the governance frame diverts from standard managerial models. Our empirical findings show that the typical banks’ financing system (i.e. as it stems from Basel II and III rules) prefers to allocate credit to firms with worse corporate governance attributes, since a scaffolding finance approach links to the adopted models of firm’s governance when participating to PCNs.

Directors with a full plate: the impact of busy directors on bank risk

PurposeThis paper aims to analyze the impact of busy directors on bank risk. Busy directors are directors with multiple directorships and other corporate responsibilities.Design/methodology/approachFirst, univariate analysis is performed to see whether there are differences in governance structures of banks with busy boards and those with less‐busy boards of directors. Second, multivariate regression analysis is used with two measures of bank risk as the dependent variable to see whether busy directors impact bank risk, while controlling for other factors that may influence risk.FindingsThe paper finds that there are significant differences between banks in terms of governance structure when analyzing banks with busy boards and banks with less‐busy boards. Importantly, the study shows that bank risk is positively related to multiple board appointments of bank directors.Research limitations/implicationsThese results provide support for the “busyness hypothesis” as opposed to the “reputation hypothesis” and add to the understanding of whether busy directors hurt or help boards.Practical implicationsResults are important for regulators who seek to maintain a safe and sound banking system. Regulators can gain a better understanding of how much time and effort individual directors can contribute to a bank under examination.Originality/valueThis is the first study in the banking literature on multiple board appointments. It also uses a unique approach to test whether director busyness is a determinant of bank risk.

Governance in non-for-profit hospitals: Effects of board members’ remuneration and expertise on CEO compensation

Although hospitals vary in terms of their governance structures, little research has focused on the effectiveness of these governance mechanisms through the study of executive contracting. Using a sample of 80 non-for-profit private hospitals in the Netherlands, I investigate whether differences in governance structures of hospitals are informative for explaining the variations in chief executive pay. After controlling for important economic determinants of CEO compensation in hospitals (i.e., type and size of the hospital, CEO type and job complexity, market conditions and performance attributes), the results suggest that CEOs on average earn more (1) when the hospital's supervisory board members receive more remuneration (a higher absolute as well as an excessive remuneration) and (2) when supervisory board members have a lower level of expertise. The findings suggest that supervisory boards are more effective in controlling agency problems (i.e., aligning CEO pay to economic conditions) when their members have more expertise, but at the same time that the monitoring function is hampered when supervisory board members receive a large (excessive) remuneration.

The non-linear effects of ownership structure on corporate performance: evidence from emerging market

This paper examines the non-linear effects of ownership structure (variables) on corporate performance. The data used in this study are derived from 167 publicly traded companies quoted on the Amman Stock Exchange (ASE), over the period 1989-2006. The ownership structure is measured by the percentage of shares held by each type of owner (state, institution, foreign concentrated owners, and individuals). Results in this study confirm earlier findings of a curvilinear relationship reported for larger markets. The results also show that the relationship between government ownership and ROA and MBVR is a hump-shaped curve. The value of a firm increases when government ownership is low, but the value of a firm decreases when it is high. As the government reduces its stake in a privatised company to below a specific point, perhaps market monitoring become ineffective and this increases the agency costs. The results also document that the relation between institutional ownership and ROA and Tobin’s Q is a hump-shaped curve. When institutional ownership increases above a specific point, institutional shareholders negatively influence a firm’s activities. Findings in this study contribute to the growing body of international evidence that the non-linear cubic relationship between ownership structure and corporate performance is robust to differences in governance structures across markets.

Insider ownership and firm value in New Zealand

The relationship between insider stock ownership and firm value is examined for a sample of publicly traded companies in New Zealand. Results in this study confirm earlier findings of a curvilinear relationship reported for larger markets. Insider ownership and firm value are positively related for ownership levels below 14% and above 40% and inversely related at intermediate levels of ownership. These results are fairly robust to different measures of firm performance (Tobin's q, market to book ratio and return on equity) and to several different estimation techniques such as ordinary least squares, two stage least squares, seemingly unrelated regressions and fixed effects regressions on panel data over 1994–1998. Findings in this study contribute to the growing body of international evidence that the non-linear cubic relationship between insider ownership and firm value is robust to differences in governance structures across markets.