Continental European Countries Research Articles

Cyclical Inclusive Growth Model of the European Union

This article analyzes the distinctive features of the contemporary cyclical inclusive growth model within the European Union (EU). As an integration entity, the EU contends with a series of internal challenges that impede its development, arising from the divergent economic interests of member states and the uneven distribution of the costs and benefits of the 'twin transition' in the context of Europe’s declining global competitiveness. Exploring the nuances of inclusive growth in the EU, particularly the role of citizen participation in societal progress, offers a valuable framework for understanding the social and economic contradictions both within and between member states. The study commences with a critical review of existing definitions of inclusive growth, laying the groundwork for an in-depth analysis of the EU model.The research employs quantitative methods to compare EU member states using the UNCTAD Inclusive Growth Index and additional indicators of social and economic development and well-being. It also evaluates the outcomes of the 'Europe 2020' strategy, which aimed to establish inclusive growth targets for the EU by 2020. The findings reveal that the highest levels of inclusive growth are concentrated in northern and continental European countries, whereas Central and Eastern Europe (CEE) exhibit significantly lower levels. The analysis further uncovers key contradictions, such as the tension between reducing socio-economic inequality and promoting economic growth, the generational conflict over the ‘green economy,’ and the misalignment of interests between smaller and larger EU economies.Despite the initiatives under the 'Europe 2020' strategy, the study observes a shift in the priorities of EU citizens concerning inclusive growth. The research identifies fundamental characteristics of the EU's inclusive growth model, marked by a cycle of emerging and resolving social and economic contradictions at the Union level. A notable aspect of this model is the increasing complexity and multiplicity of contradictions, alongside a growing emphasis on subjective well-being and the fulfillment of intangible individual needs. The insights derived from this analysis have practical implications for developing inclusive growth support measures within the Eurasian Economic Union (EAEU) and can aid in defining priorities and mechanisms for the social and economic policies of EAEU member states.

Tab the lab: A typology of public sector innovation labs

Many public sector organizations set up innovation laboratories in response to the pressure to tackle societal problems and the high expectations placed on them to innovate public services. Our understanding of the public sector innovation laboratories’ role in enhancing the innovation capacity of administrations is still limited. It is challenging to assess or compare the impact of innovation laboratories because of how they operate and what they do. This paper closes this research gap by offering a typology that organizes the diverse nature of innovation labs and makes it possible to compare various lab settings. The proposed typology gives possible relevant factors to increase the innovation capacity of public organizations. The findings are based on a literature review of primarily explorative papers and case studies, which made it possible to identify the relevant criteria. The proposed typology covers three dimensions: (1) value (intended innovation impact of the labs); (2) governance (role of government and financing model); and (3) network (stakeholders in the collaborative arrangements). Comparing European countries and regions with regards to the repartition of labs shows that Nordic and British countries tend to have broader scope than continental European countries. Points for practitioners Public sector innovation (PSI) labs can help to approach innovation collaboratively across organizational boundaries. It is, however, necessary in this context to find the setup that best addresses an organization's needs or strategic ambitions. The proposed typology is based on criteria relevant for designing PSI labs. Being able to distinguish the different labs helps practitioners to choose models that fit their purposes and learn from existing labs.

Historical outline of the development of the principle of good faith in civil procedure in Germany and France

The article analyzes the concept of good faith on the example of its development in civil proceedings in Germany and France. The author traces the relationship between the good faith of Roman civil procedure and the good faith of continental European countries, which was developed through the reception of Roman law. he author examines a number of sources of the so-called barbarian law in the context of good faith and its negative manifestation - bad faith in procedural communication and counteraction thereto. The author defines good faith as a condition for proper procedural behavior in the sources of law of the Holy Roman Empire of the Germanic nation and traces the history of the term Treu und Glauben. The author examines the concepts of correlation between the Roman term bona fides and the German term Treu und Glauben, which has become a general principle of various branches of law, including civil procedure law. The author examines the presence of the good faith principle in the modern German Code of Civil Procedure. The author also analyzes the concept of the formation of the principle of good faith in civil proceedings in France, for which purpose the medieval rules of customary law contained in such legal sources as the Coutumes Beauvais are studied. Special attention is paid to an important source of French procedural law of modern times - the Ordinance of Louis XIV of 1667 (Louis Code), which was the basis for the Civil Procedure Code of Napoleon of 1806 and whose provisions contained measures to counteract the abuse of procedural rights, and in some cases the term good faith as a measure of exemplary procedural communication. The author also reviews the provisions of the current French Code of Civil Procedure, which entered into force on January 1, 1976, where the principle of good faith is applied both as a counteraction to unfair procedural behavior and as a standard of procedural behavior which provides for the proper performance of duties and exercise of rights. The author determines that the principle of good faith is primarily found in substantive law, both in Germany and France, from where it is integrated into procedural law.

The Forms of Acceleration of Justice

Plea bargaining is one of the most important institutions of criminal law not only in Georgia but also in other countries. The said procedural institution was also introduced into the Georgian system and has not lost its relevance since its introduction. It is also obvious that this procedural-legal institution is the cornerstone of Anglo-American law, and it is impossible to discuss it outside the context of the said legal system. Our research includes an in-depth study of the plea bargaining as a basic legal institution. In particular, the formation and development of plea bargaining in England and America is presented. Among them, the case law in the part of plea bargaining is discussed. The article presents the process of implementing plea bargaining in the countries of continental Europe. The work contains a comparative legal analysis of different countries and the Georgian system. Historically, there are two types of bargaining: explicit and implied. Explicit plea bargaining is an open offer from a judge to a victim during a trial or a judge’s advice to a defense attorney about the “best reasonable solution”. The rules of expedited justice in the countries of the continental European system (Germany, France, Italy) are characterized by certain features, the features of which are discussed in this article. The study reveals the main essence of plea bargaining in Georgia, the practice of its use, and the main problems. The author’s conclusions and recommendations are presented at the end of the study.

Current distribution of the Reeves’ muntjac Muntiacus reevesi (Ogilby, 1839) in France

Abstract The Reeves’ muntjac Muntiacus reevesi is an ungulate native to China and Taiwan that has been released into the wild in several continental European countries and the United Kingdom. We present recent records of the species in mainland France. We also investigated the dispersal rate and density of the established population in the Centre-Val de Loire region. The number of observations of M. reevesi was low in the period 2008–2016, increased sharply until 2019 and then decreased until 2023. From a comparison between the distribution in 2008–2012 and 2013–2017, the dispersal rate was estimated at an average of 3.2 km/year, and 7.6 km/year between 2013–2017 and 2018–2023. Based on a camera trap protocol, the population density was assumed to be very low in forested areas but estimated with a lack of robustness due to a single observation. Further efforts must be made to better assess the risk of an increase in the wild population of Reeves’ muntjac in the Centre-Val de Loire region. To prevent potential impacts, rapid control measures can be put in place in the large area (10,800 km2) where muntjacs are now rapidly spreading.

Income inequality and income poverty in a cross-national perspective

Abstract This commentary—a reflection on the Bourquin, Brewer and Wernham article in this collection—draws on harmonized microdata from the Luxembourg Income Study (LIS) Database. It aims to place selected results from the UK in cross-national perspective. The comparator countries, all high-income, include one Nordic country, Norway; one continental European country, Germany; and three other Anglophone countries, Australia, Canada and the USA. The commentary assesses each of these key outcomes, both cross-nationally and over time: income inequality and redistribution, top-half and bottom-half income inequality, and child and elderly poverty. It closes with a brief discussion of policy lessons.

Information asymmetry and investment efficiency: the role of blockholders

PurposeThis study aims to examine the extent to which information asymmetry affects investment efficiency and whether the presence of blockholders moderate this relationship.Design/methodology/approachWe employ the data of firms listed on the Malaysian stock exchange for the period 2010–2018, to compose our sample. Our final sample includes the 100 largest non-financial firms based on market capitalization. Collectively, these 100 companies contribute 84.2% to the total market capitalization (MYR 1,730bn) which is representative of the whole market. The ordinary least squares regressions were used as the main estimation technique. The system generalized method of moments, two-stage least squares and propensity score matching were also used, to address potential endogeneity concerns.FindingsWe document a positively significant association of information asymmetry with investment inefficiency. These results imply that information asymmetry reduces investment efficiency and enhances sub-optimal investments. We also document that blockholders negatively moderate the relationship of information asymmetry with investment inefficiency. Further analyses show that investment inefficiency is higher in low-growth firms than in high-growth firms because of higher information asymmetry.Research limitations/implicationsWe focus on Malaysia, which is a predominantly common-law Anglo-Saxon country. Graff (2008) documented that the investors are treated differently across legal systems and there are differences between the continental European and Anglo-Saxon countries. La Porta et al. (1999) documented that investors tend to have more legal protection in Anglo-Saxon countries. Therefore, our results may not be generalized to countries with different legal systems.Practical implicationsAn important implication of our findings is that stakeholders may encourage the presence of blockholders and give them a voice to weaken the positive relationship between information asymmetry and investment inefficiency.Originality/valueThis study contributes to the contingency literature by investigating the moderating effect of an important governance mechanism, i.e. the presence of blockholders on information asymmetry-investment efficiency nexus. Despite being important, this moderating effect has been largely overlooked in the literature. Our study contributes by providing an understanding of how blockholders can influence investment decisions, offering insights for academics, investors and policymakers focused on improving the efficacy of investment decisions and governance structure.

Audit Partner Characteristics and Their Impacts on Audit Quality: Evidence from around the World

Public company audits are not homogenous. Varying audit partner attributes, including gender, age, location, and expertise, play important roles in explaining audit outcome disparities. The extant literature underscores the influence of firm-level and office-level differences, in areas such as size, culture, and industry expertise, in shaping audit outcomes. Commonwealth countries, such as the U.K., Australia, New Zealand, and Continental European countries, along with Asian economic entities, mandate the disclosure of audit partner names. Consequently, significant research efforts have been devoted to investigating the impact of audit partner characteristics on audit outcomes in these jurisdictions. With the adoption of Public Company Accounting Oversight Board (PCAOB) Rule 3211, mandating disclosure of audit engagement partner details for U.S.-registered public accounting firms on Form AP, there has been a surge in U.S. firm research exploring the significance of audit partner characteristics on audit outcomes in recent years. This paper outlines research that considers audit partner attributes’ influence on audit partner selection and audit quality across different economic entities. This entry contributes by synthesizing findings from recent research across diverse economic contexts, including the recently available insights from U.S.-based audits. The analysis of this entry not only provides insights into the current state of audit partner research but also delineates avenues for future research on this topic.

A decade of international diversity in collaborative research published in highly ranked accounting journals

PurposeThis study examines the patterns of international diversity in collaborative research published in highly ranked accounting journals.Design/methodology/approachWe examine four types of collaborations: regional, inter-regional, European national and European international. The empirical study is based on 4,033 articles published in 13 journals between 2010 and 2019. Social network analyses were carried out for the inter-regional and the European international collaborations.FindingsThe broad analysis of the regional and inter-regional collaborations reveals not only significant differences between the non-North American journals and the North American but also important dissimilarities among the non-North American journals. The analysis of the European collaborations reveals significant differences between the journals where the UK institutions play a significant role in leading a network of European researchers and the journals where the Dutch and/or German institutions also play a significant role in another network as European leaders in terms of research.Research limitations/implicationsAlthough it reveals the patterns of internationalization of the highly ranked accounting journals, and offers some insights regarding why such patterns exist, it does not assess co-authorship networks with regard to the authors' orientation in terms of methods and research topics. We acknowledge that the networks amongst authors should also be influenced by the specific PhD-granting institutions. However, we let the data speak to these points, showing how journals differ in publication patterns. Not all highly ranked journals in accounting have the same networks and patterns of co-authorship. Another limitation pertains to the limited aspect of diversity it focuses on, that of geographical diversity. Furthermore, our analyses do not speak directly to the nationalities of the authors, but to the country in which the publication was granted at the time of the paper's publication.Practical implicationsOur findings show that the patterns of international diversity in all the types of collaborations under examination in the highly ranked accounting journals vary across different groups of journals. The “North-American or North-American inspired journals” (Guthrie et al., 2019, p. 12) have the highest level of geographical concentration and the North American universities/institutions contribute with the majority of the papers. The “non-North American journals” – the leading journals for critical, interpretive and interdisciplinary approaches (Hussain et al., 2020) and those which are more acceptive of these latter approaches – have a lower level of geographic concentration of the papers and there is a broader set of regions and countries involved, including North American countries, the UK and two Continental European countries (Germany and the Netherlands).Originality/valueOur study shows empirically that the patterns of international diversity in all the types of collaborations under examination in the highly ranked accounting journals vary across different groups of journals, revealing not only significant differences between the North American and non-North American journals in accounting, but also showcasing how the non-North American journals present a lot more heterogeneity. We also believe the analysis of the European case is a noteworthy contribution of this study given existing accounting literature fails in acknowledging European diversity.

Cohort Differences in Physical Health and Disability in the United States and Europe.

Declines in mortality have historically been associated with improvements in physical health across generations. While life expectancy in most high-income countries continues to increase, there is evidence that younger generations, particularly in the United States, are less healthy than previous generations at the same age. We compared generational trends in physical health in the United States, England, and continental Europe to explore whether other regions have experienced a similar pattern of worsening health across cohorts. Using data from nationally representative studies of adults aged ≥50 years from the United States (Health and Retirement Study, n = 26,939), England (English Longitudinal Study of Ageing, n = 14,992) and 11 continental European countries (Survey of Health, Ageing and Retirement in Europe, n = 72,595), we estimated differences in the age-adjusted prevalence of self-reported chronic disease and disability and observer-measured health indicators across pseudo-birth cohorts (born <1925, 1925-1935, 1936-1945, 1946-1954, 1955-1959). Age-adjusted prevalence of doctor-diagnosed chronic disease increased across successive cohorts in all regions. Trends in disability prevalence were more regionally varied. Still, in both the United States and Europe, we observed a structural break in disability trends, with declines observed in prewar cohorts slowing, stalling, or reversing for cohorts born since 1945. In all regions, we found evidence for worsening health across cohorts, particularly for those born since 1945. While more chronic disease in younger cohorts need not necessarily translate to worse quality of life or higher rates of functional limitation, there is some suggestion that worsening chronic disease morbidity may be spilling over into worsening disability.

Do work-life balance measures influence the performance of Spanish listed companies?

Purpose: This paper analyses the effect on economic profitability of the adoption of work-life balance practices.Design/Methodology/Approach: Based on a sample of Spanish listed companies during the period 2015-2019, the aim was to contrast the effect of a work-life balance index on economic profitability.Findings: The regression analysis clustered at firm level, shows a positive and significant effect of the index on economic profitability, suggesting that companies' practices to achieve a work-life balance can be a source of motivation for their human resources.Originality/Value: Investigating the consequences of work-life balance practices at company level not at individual level and, performing a longitudinal study as opposed to cross-sectional studies, more frequent in the literature. Adding evidence in a Continental European country, Spain, as opposed to previous studies carried out mainly in Anglo-Saxon countries so like considering the work-life balances actually used by listed firms in the Spanish market.

What it means to be poor: dimensions of economic hardship among older people living in poverty across Europe

Abstract There is a lack of comparative and quantitative research on how poverty manifests itself in the economic wellbeing of older people across European countries. In this study, we focus in on two central dimensions of economic wellbeing: the ability to pay for usual expenses and unexpected expenses. Our aim is to find out how often older people living at risk of poverty experience hardship on these dimensions, how these dimensions overlap, and whether the incidence of hardship differs between the poor and the non-poor. The study is based on the cross-sectional component of the European Union Statistics on Income and Living Conditions (EU-SILC) 2018 survey, involving 29 countries and 148,432 respondents aged 65+ years. The analysis builds on both descriptive statistics and multinomial logistic regression, which takes into account differences in household characteristics between the poor and the non-poor. The results reveal that for the poor, meeting unexpected expenses is a more common problem than meeting usual expenses, although they typically experience hardship on both dimensions. Hardship among the poor is more frequent in Central Eastern and some Southern European countries, while poor people living in Continental and Nordic countries tend to fare better, even though relatively large numbers in these countries lack cash margin. The non-poor do also experience hardship, but to a lesser extent. The poor experience combined hardship relatively often in Continental European countries. Based on the results, we conclude that studies should pay closer attention to the different dimensions of economic wellbeing in old age.

Parliamentary Systems in Continental European Countries and its Relationship to the Effectiveness of Legislative Institutions

Every country has a unique style regarding the parliamentary system they follow. This parliamentary system may experience changes or developments that differ from the initial concept. It is expected because each country has other political, cultural, social, and economic conditions. It is normative legal research with a historical and conceptual approach, then conducted in a comparative study. The results of this study found that the French parliamentary system is included in the category of Medium-Strength bicameralism with asymmetrical and incongruent characteristics. The Dutch parliament belongs to medium-strength bicameralism with symmetrical and harmonious features. The Austrian legislature, known as the Bundesrat, does not have the same power as the Nationalrat, so the management of the two chambers of parliament is asymmetrical. Meanwhile, the parliamentary system in Indonesia can be classified as medium-strength bicameralism with asymmetrical and incongruent buildings. The parliamentary system can indirectly affect the effectiveness of the legislature's performance. Sometimes, the system adopted can make parliament an effective and efficient institution or vice versa. A small example is France, which can complete over 50% of proposed legislation in one year. Meanwhile, from 2020-2024, only 17 draft laws were constructed in Indonesia out of 215 registered. This figure is only 7.9% of the total proposed bill. Suppose the parliamentary system adopted has yet to bring parliament into a better, transparent, efficient, and open legislative body. In that case, the system can be re-evaluated by considering the existing ideal parliamentary concept.

Correlation between classical Roman law and English common law: comparative historical analysis

The term ‘correlation’ can be interpretated in a wider meaning than the presence of a frequency of connection between two collignial indicators. This semantic content as "a relation existing between phenomena" is present in the discourse of liberal arts, in contrast to parametric statistics. The purpose of the study is to verify the existence of a correlation between basic conceptual ideas in Ancient Roman law and English common law and to evaluate the scope and manifestations of this issue. The research problem is complicated by the fact that the overwhelming majority of modern historians traditionally contrast the legal systems of continental European countries with Anglo-American law. And there very few famous scientists who consistently reaffirm the opposite position and consider that the common legal tradition in Europe exists. The article shows three groups of key evidence of Ancient Roman Law influences on the English Common Law. The historical arguments explain the fantastic ability of English law to export to other countries. In world history, this property was only one legal culture, namely Old Roman. These abilities to transfer and reception are defined as the most significant parallels between the legal traditions that are investigated.

The very first collecting society for games

In May 2023, game – The German Games Industry Association – founded the world’s first collecting society for games, the VHG – Verwertungsgesellschaft für die Hersteller von Games. The purpose of this collecting society is to assert the remuneration claims of the producers of games in Germany for legally permitted private copying. In Germany, as in many other continental European countries, there is – unlike fair use in common law – an appropriate remuneration for the limitation of the rights of authors and ancillary copyrights for private copies. These remuneration claims can only be asserted by a collecting society, which means that neither a publisher or developer nor any author itself could assert such claims. There are various legally permitted copies of games made in everyday life, for example, in the form of Let’s Plays, walkthroughs, highlights, role plays, Shadow Plays, recordings for support, in esports broadcasts, or also in the form of screenshots taken by millions of users. Copies of the game itself and installations are not covered by the copyright exceptions, because the law does not provide legal permission in the case of software or if technical copy protection measures (TPMs) are in place. The relevant remuneration claims focus on capturing, filming, or photographing the audiovisual components of the games (on screen). The remuneration is already paid by the manufacturers and importers of devices and storage media with which the reproductions are made. The payments are collected by the Central Organisation for Private Copying Rights and distributed to all rightsholders whose content is privately copied. Since the administration of remuneration claims is subject to a collecting society, a new collecting society for games had to be founded for the games industry to participate in the private copying remuneration.

The subject matter of administrative law as a basic category For distinguishing sectoral principles of administrative law

Problem setting. Administrative law as a fundamental branch of public law is a necessary tool in regulating the activities of public administration bodies, public organizations, enterprises, institutions, and organizations. Its influence is constantly felt by specific individuals. Norms of administrative law protect relations formed under the influence of civil, labor, financial and other branches of law. In recent years, administrative law has been in a state of transformation, a new ideology of relations between the state and the citizen is being formed, the administrative legal doctrine is undergoing fundamental changes, and administrative legislation is being updated. As a result, administrative law has turned from the law of state management into a branch that normatively defines and regulates the rights and obligations of public administration in relation to subjects of civil society. Analysis of recent researches and publications. A significant number of scientists dealt with issues of administrative law, its subject, principles, among which it is worth mentioning the works of such scientists as: V. B. Averyanov, Yu. P. Bityak, V. V. Galunko, R. S. Melnyk, A. A. Pukhtetska and others. However, despite the rather large number of works, questions related to the generalization of scientific positions, which highlight the subject of administrative law as a basic category for determining industry precepts, remain in most cases outside the attention of researchers, which makes it possible to talk about the need to carry out such research. The purpose of research is to clarify the role of the subject of administrative law as a basic category for determining the branch principles of administrative law. Article’s main body. The article is devoted to the peculiarities of the subject of administrative law as a fundamental criterion for determining the principles of administrative law. Of fundamental importance for updating the concept of the subject of administrative law were two theoretical conclusions that were made in the development of the ideas of the Concept of Administrative Reform in Ukraine. The transformation of the subject of administrative law is a factor in updating the content and classification of the principles of administrative law. The subject of administrative law is social relations that arise for the purpose of realizing and protecting the rights of citizens, creation of normal conditions for the functioning of civil society and the state. It follows that the main task of administrative law is to create a priority of legal conditions for ensuring by public administration the rights, freedoms and interests of man and citizen in the sphere of public administration. The subject of administrative law is a wide complex of social relations that arise in connection with the implementation of the functions of the state executive power, the content of which is the management of society. Ukraine’s new management model (with adapted principles of Good Governance) should be aimed at maximizing the scope of public participation in governance, ensuring that economic, social and political priorities are based on consensus in such a way that the voices of all citizens, even the poorest and most socially disadvantaged population groups were taken into account when making state decisions. The article emphasizes the fact that principles are the leading category in the administrative law of all continental European countries. The principles reveal the content of law, reveal the essence of law, its foundations, as well as the regularities of social life and needs, and highlight trends. In the theory of law, the principles of law mean the most general and stable requirements that contribute to the establishment and protection of social values, determine the nature of law and the direction of its further development. Conclusions and prospects for development. The principles of law are a natural phenomenon of legal science, which in their essence are universal and reflect modern approaches to their interpretation. In modern conditions, the principles of law have a universal character, as they must be taken into account by law-making subjects during the creation of norms for the legal regulation of social relations. The peculiarities of the subject of administrative law provide grounds for a new approach to updating and characterizing the principles of administrative law resulting from interdependence and influence on each other.

The impact of income inequality on household indebtedness in euro area countries

This paper explores the impact of income inequality on household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest that there is weak evidence that income inequality has affected households’ indebtedness in continental European countries. The countries that show an impact are characterised by positive effects that operate across the income distribution and tend to be robust for consumption-related and housing-related debts. The effects, however, vary much less across the distribution for consumption-related debts as compared to housing-related debts. Households at the top of the income distribution seem to react more than lower-income households when it comes to housing-related debts.

THE NONLINEAR IMPACT OF RESEARCH AND DEVELOPMENT INVESTMENTS ON FIRM PERFORMANCE: A SIGMOID (S) CURVE APPROACH IN G20 COUNTRIES

The interaction between research and development (R&amp;D) investments and firm performance has been extensively studied in the academic literature. However, these studies have produced different findings by proposing various models to explain the relationship between R&amp;D and firm performance. The inconsistency in findings can be partly attributed to limitations in the use of traditional linear modeling methods that do not fully capture the complex dynamics of this relationship. Using data on 31,205 firms and 434,016 observations in G20 countries over the period 2000-2022, this paper considers the Sigmoid (S) curve model, which aims to reconcile the differences in the literature and provide a more comprehensive view of the R&amp;D performance relationship. The findings reveal a non-linear relationship between R&amp;D intensity and firm performance and the validity of the S-curve model. Specifically, the R&amp;D-performance relationship shows a negative slope at low levels of R&amp;D investment, a positive slope at medium levels, and a negative slope again at high levels. These results suggest that the impact of R&amp;D investments on firm performance varies depending on the level of investment. Moreover, the study reveals that this 3-stage S-curve relationship is consistent for firms with low firm size and low leverage, and that such firms are particularly affected by an increase in R&amp;D investment. Finally, the findings show that this relationship holds both between developed and developing countries and between countries following Anglo-Saxon and Continental European law. However, this relationship is more pronounced in Anglo-Saxon and developing countries than in Continental European and developed countries.

Related party transactions and earnings quality: the moderating role of female directors

PurposeThis study aims to analyse the effect of related party transactions (RPTs) on earnings quality in a sample of Spanish listed firms, as well as the moderating role played by female directors in the relationship between RPTs and earnings quality.Design/methodology/approachThe sample includes non-financial Spanish listed firms from 2005 to 2019. The authors use panel data analysis based on the firm fixed-effect estimator. Additionally, the authors use the two-step system generalized method of moments estimator to test the robustness of the results.FindingsThe results show a negative effect of RPTs on earnings quality. Further analysis reveals that the negative effect is mainly driven by transactions between the firm and its directors and major shareholders, as well as by RPTs that are more likely to reflect insiders’ self-interest. Moreover, the authors show that the presence of female directors reduces the negative impact of RPTs on earnings quality.Practical implicationsThe study provides practical implications for investors, auditors and policymakers, who should be aware that RPTs might harm earnings quality and adversely affect the flow of financial capital to promising investment opportunities. Additionally, the study evidences the key governance role played by female directors regarding financial reporting policies as RPTs increase.Social implicationsThe findings promote the need for a higher representation of women in leadership positions since the authors reveal the key governance role played by female directors regarding financial reporting policies as RPTs increase.Originality/valueThe results to emerge from the study complement available evidence concerning the effect of RPTs on earnings quality in a continental European country. The authors also provide novel evidence vis-à-vis the role of female directors in the relationship between RPTs and earnings quality.

Civil Law in Indonesia and Russia: Easy and Affordable Access to Legal Aid

One of the most familiar legal systems in the world are the civil law system and common law system. The difference in characteristics between the two is an interesting discussion that is often undertaken. Research conducted on the characteristics of a legal system aims to obtain good legal institutions to regulate society. The implementation of the legal system in each country is strongly influenced by the historical developments and formation of that country. The two countries that we are interested in studying are Indonesia and Russia, as a material for comparison in terms of legal regulations, specifically in the legal aid process for their respective citizens. As a continental European adhering country, or commonly known as a civil law system, Indonesia prioritizes laws that come from formal legal sources such as laws and regulations, customs, and jurisprudence. Legal comparisons relating to legal aid in two different countries are very interesting because based on the history of the formation of the Indonesian state and the Russian state, there is a significant difference. As the two countries were colonies, they produced regulations that followed the countries that colonized them. However, the Russian state differs from the Indonesian state in that it also participated in colonizing other countries.