External Supervision Research Articles

The impact of venture capital subscription on price deviation of private placement: evidence from China

Purpose The purpose of this study is to examine the role of venture capital (VC) in supporting corporate growth and innovation through participation in private placements. While VC provides essential financial support to companies, it remains unclear whether this involvement serves a strategic investment role or a purely financial one. This study seeks to elucidate the role of VC by analyzing changes in the price discount of private placements following VC participation. Design/methodology/approach The authors take the private placement events of China A share listed companies from April 2005 to January 2023 as the sample, and examine the influence of VC subscriptions on price discount rate. Findings VC subscriptions to private placements increase information asymmetry, consequently raising the discount rate. This relationship is influenced by the transaction characteristics and information environment. Specifically, VC subscriptions further elevate the discount rate when VC are geographically dispersed from the issuers, possess industry expertise in the issuers’ sector, allocate raised funds for asset restructuring or non-digital investments and when the issuers are in their growth stages. Moreover, the positive correlation between VC subscriptions and the discount rate is more pronounced under conditions of lower internal control quality and weaker external media supervision. Higher discount rates in VC-subscribed private placements result in lower R&D investment and investment efficiency by the issuers, leading to larger-scale VC sell-offs and ultimately diminishing the market and financial performance of the issuers. Practical implications The issuers should diligently assess the behaviors and motives of VC and selectively choose issuance targets and methods to manage risks associated with price deviations in private placements. Additionally, this study recommends that regulatory authorities develop a more detailed regulatory framework that considers transaction characteristics and the information environment. This strategy should help optimize external regulatory measures like media coverage and protect the interests of small and medium-sized investors. Originality/value This study extends research on the “name chasing” motive and certification effect of VC in private placements, enriches the literature on the mechanisms forming discount rates and provides insights for refining regulatory policies on private placements.

Environmental Justice Specialization and Corporate ESG Performance: Evidence from China Environmental Protection Court

In order to implement the dual-carbon strategy and achieve sustainable economic development, it is essential to guarantee environmental protection through the establishment of an effective environmental rule of law. This study employs a quasi-natural experiment, namely the establishment of environmental protection courts in China’s intermediate people’s courts, to investigate the impact on the ESG performance of A-share listed companies from 2010 to 2022. A double-difference model is utilized for this purpose. This study reveals that the specialization of environmental justice is an effective means of promoting the ESG performance of enterprises. The results of mechanism tests indicate that the specialization of environmental justice has a positive impact on the ESG performance of enterprises, primarily by enhancing external supervision and garnering greater media attention and analyst interest. Furthermore, heterogeneity analysis reveals that the influence of environmental justice specialization on corporate ESG performance is particularly pronounced in eastern regions, contexts characterized by high environmental uncertainty and heavily polluting enterprises. These findings offer invaluable insights into the development of environmental justice and the advancement of sustainable economic growth.

The Energy Effect of Blockchain Technology Innovation in the Industry 5.0 Era--From the Perspective of Carbon Emissions

In the era of Industry 5.0, innovation in blockchain technology is expected to have a significant impact on energy efficiency and carbon emissions, especially in hybrid energy systems. This paper has obtained the innovation data on the blockchain patent of listed companies in China from 2010 to 2022 by machine learning and text analysis methodology of large language model. On this basis, the relationship between the enterprises’ blockchain technology innovation and the intensity of fossil energy consumption has been discussed. The study found that (1) the enterprises’ blockchain technology innovation is able to reduce the intensity of fossil energy consumption, and this conclusion remains valid via controlling for endogeneity and upon the completion of robustness test. (2) In terms of the mechanism, the enterprises’ blockchain technology innovation can achieve energy transition by reducing the cost of internal control, strengthening external supervision, improving the efficiency of resource allocation and strengthening the channels of supply chain management. (3) Further research has found that the energy effects as a result of blockchain technology innovation help to improve operational efficiency and lower the level of carbon emission. Our research provides scientific support for breaking the "technological energy paradox" in the field of energy economy while providing empirical evidence of "blockchain carbon reduction" for technologies such as blockchain BaaS alliance, cross-operator network spectrum, and shared base stations that will be applied on a large scale in the Industry 5.0 Era.

EKSISTENSI SATUAN POLISI PAMONG PRAJA (SATPOL PP) DALAM PENEGAKAN ATURAN ALKOHOL DI KABUPATEN LUWU TIMUR

One of the roles of the Civil Service Police Unit in East Luwu Regency is the Enforcement of Regional Regulation Number 3 of 2017 Concerning Control, Supervision and Order of the Production, Distribution and Sale of Alcoholic Beverages in East Luwu Regency. The purpose of this paper is to determine the Existence Of The Civil Servant Police Unit (Satpol PP) In the Enforcement Of Alcohol Regulations In East Luwu Regency. The research method uses a qualitative approach, a combination of a normative legal approach, and the addition of various empirical elements. The results of the study show that the existence of the Civil Service Police Unit in enforcing Regional Regulation Number 3 of 2017 concerning Control, Supervision and Order of the Production, Distribution and Sale of Alcoholic Beverages in East Luwu Regency is one form of contribution by the Civil Service Police Unit in the form of (1) intensive and external supervision, (2) guidance for places selling alcoholic beverages illegally, and (3) order for places selling alcoholic beverages illegally, the effectiveness of efforts to supervise the distribution of alcoholic beverages in East Luwu Regency.

Preventive regulation and corporate tax avoidance: Evidence from China

AbstractThis study examines whether and how preventive regulation impacts corporate tax avoidance in China, using the random inspection of accounting information quality (RIAIQ) by the Ministry of Finance (MOF) as a quasi‐natural experiment. Our staggered difference‐in‐differences estimates indicate that improving preventive regulation through the MOF's RIAIQ can inhibit corporate tax avoidance, especially for firms with tax issues, disclosed specific noncompliance amounts, stronger external supervision, lower marketisation level, and middle nominal tax rates. Mechanism tests demonstrate that preventive regulation diminishes corporate tax avoidance activities by mitigating managerial agency conflicts and intergovernmental agency conflicts in the decision‐making process. Our findings highlight the governance role of preventive regulation in constraining corporate tax avoidance.

Revitalization of Supervision of the Judicial Commission as Strengthening Judicial Institutions in Maintaining the Independence and Integrity of Judges

External supervision of judges' performance is done by the Judicial Commission (JC), namely by providing input regarding the mechanism for providing sanctions for violations of the code of ethics committed by judges. The task of the Judicial Commission regarding recommendations for sanctions for violations committed by judges involves collaborating with the Supreme Court because the judicial commission does not have the right to impose sanctions directly on judges. Therefore, efforts are urgently needed to improve the integrity of judges as law enforcers from the Judicial Commission institution that has the authority to act as an external monitor of the behavior of judges. The Judicial Commission also guarantees that they can maintain and increase the independence and integrity of judges. Regarding the supervision of the Judicial Commission as a strengthening of the Judiciary institution in maintaining the independence and integrity of judges, this research is conducted using normative methods. The data collection techniques are done by searching documents and scientific books to determine the theoretical basis in the form of positive legal material appropriate to the research object.

A new aerosol delivery approach for enhanced long-term respiratory care in resource-poor settings

Continuous aerosol therapy is safe, superior, and the mainstay in the therapy of patients with severe asthma, cystic fibrosis, chronic obstructive pulmonary disease (COPD), and coronavirus disease (COVID-19). However, continuous nebulization has been perceived as highly expensive and labor-intensive, which often requires specialized medical equipment. Moreover, it is difficult to maintain consistent aerosol output and particle size delivery over an extended period without operator intervention. This work proposes a simple and reliable continuous nebulization method using a conventional gas jet nebulizer and intravenous (IV) bottle/bag. The present work reports detailed experimental studies on a gas jet nebulizer with Particle image velocimetry (PIV), Particle/droplet Imaging Analysis (PDIA), and Mie scattering techniques to demonstrate the feasibility of the proposed technique. The preliminary investigation shows that the proposed method provides continuous liquid output delivery without external supervision. The liquid delivery rate and mass median diameter (MMD) of the nebulizer mainly depend on the gas flow rate and suction height. The MMD of the primary generated droplets is reported to vary between 100 and 230 μm for a ± 10 cm suction height and 500–1000 mlph nebulization gas flow rate. Most importantly, the nebulizer spray angle, stability, droplet size distribution, and the axial and radial velocities of the droplets are marginally affected by the suction height. Therefore, the proposed system is a versatile, safe, and cost-effective method of continuous nebulization therapy, especially in resource-poor countries or contagious disease outbreak situations.

Green governance and stock price crash risk: Evidence from China

This study examines whether and how green governance affects stock price crash risk using a large sample of Chinese listed firms from 2010 to 2021. The results show that stock price crash risk is negatively affected by corporate green governance level. Cross-sectional analyses suggest that the decreasing impact of green governance on crash risk is more pronounced for firms with weak external supervision, high risk-taking degree, fewer female directors, and facing stronger environmental regulation. Moreover, information transparency and corporate reputation are two underlying channels through which green governance impacts crash risk. Our findings also hold after several robustness checks including sample intervals change, and alternative variable measurement, propensity score matching, instrumental variables, and Heckman two-step method.

Fighting for collusive bidding in the construction industry: A text mining-enabled approach

Policy measures are crucial for regulating collusive bidding and are integral to effective governance. However, current research lacks a comparative exploration of strategies to combat collusive bidding through policy. Therefore, this study aims to identify more effective countermeasures by examining policy variations between regions with low and high incidences of collusive bidding. Using Latent Dirichlet Allocation (LDA) topic modeling, the study extracts key themes from these policies, while qualitative analysis highlights differences in approaches. It underscores that integrating electronic and informatization technologies into bidding systems significantly reduces collusive practices. While increasing penalties can deter collusive bidding, achieving desired impacts requires thorough investigation and vigilant oversight. Additionally, strengthening external supervision enhances control over such activities. This study identifies critical governance strategies for addressing collusive bidding and advocates further research into more effective methods within the construction sector.

The Co-Inhibiting Effect of Managerial Myopia on ESG Performance-Based Green Investment and Continuous Innovation

Under the new pattern of “double carbon” development, good ESG performance is the best way to promote the sustainable development of enterprises, and ESG investment strategies are directly affected by the strategic vision of managers. Based on the upper echelons theory and stakeholder theory, this paper selected Chinese A-share listed companies from 2011 to 2022 as samples to empirically analyze the impact of managerial myopia on corporate ESG performance. The results show that managerial myopia significantly inhibits corporate ESG performance, mainly by inhibiting corporate green investment and green innovation sustainability. Furthermore, for state-owned enterprises (SOE), heavy polluting enterprises (HPE), and non-high-tech enterprises, the inhibitory effect of manager myopia on ESG performance is stronger. When the enterprise is in the growth stage, the above inhibition effect is more severe. For external governance, the greater the analyst attention and public environmental attention are, the more conducive they are to alleviating the restraining effect of managerial myopia on enterprise ESG performance. Therefore, effectively improving the cognition level of managers with regard to long- versus short-term profitability and strengthening external supervision are important measures for comprehensively optimizing ESG performance.

Can environmental protection tax alleviate the mismatch of financing and investment maturities of heavily polluting enterprises?

The gradual implementation of environmental protection tax policies has incentivized enterprises to engage in green production, effectively promoting China's accelerated achievement of the “dual‑carbon” goal. Although environmental protection tax has an important impact on the investment and financing decisions of heavily polluting enterprises (HPE), few studies have focused on the relationship between environmental protection tax and mismatch of financing and investment maturities. In this paper, we consider China's environmental protection tax reform as a “quasi-natural experiment”, and utilize the data of A-share listed companies from 2013 to 2022, and use a difference-in-differences (DID) model to assess the impact of this policy on the degree of mismatch of financing and investment maturities of HPE. The study shows that the implementation of the environmental protection tax policy (EPTP) significantly reduces the investment and financing maturities mismatch of the HPE, but this effect “fails” in the high tax rate area, and the policy is difficult to reverse the financing difficulties of the enterprises with a large degree of their own investment and financing maturities mismatch. The mediation mechanism test proves the EPTP acts on the mismatch of financing and investment maturities through two paths: alleviating the financing constraints faced by enterprises and increasing external supervision pressure; the impact of the policy has a time-differentiated effect, which is weakened year by year.

The stronger the ability, the greater the destructiveness? CEO ability and stock price crash risk

The impact of CEO ability on corporate behavior is dual-faceted. Based on the “rent-seeking hypothesis”, this paper focuses on the “dark side” of CEO ability and suggests that CEO ability may hurt corporate behavior. Using the DEA method to measure CEO ability and selecting Chinese A-share listed companies from 2007 to 2017 as a sample, we examine the relationship, mechanisms, and boundary conditions between CEO ability and stock price crash risk. Our study finds that CEO ability exacerbates stock price crash risk positively. Mechanism tests based on CEO tenure, agency conflict, and litigation risk reveal that CEO ability intensifies stock price crash risk for alleviating career concerns, seeking private gains, and risk avoidance, supporting the “rent-seeking hypothesis”. Boundary condition tests based on internal and external governance environments show that internal control quality and external audit supervision can play a governance role in mitigating the exacerbating effect of CEO ability on stock price crash risk. The conclusions are of significant importance for companies, relevant departments, and global market participants to strengthen governance and supervision to prevent the negative impact of CEO ability on stock prices, thereby promoting the stable development of global financial markets.

Contested Statehood and EU Integration: The Case of Bosnia and Herzegovina

Abstract This article delves into the intricate relationship between contested state- hood and European Union (EU) integration, explicitly focusing on Bosnia and Herzegovina (BiH). Since the early 1990s, amidst the dissolution of Yugoslavia and the EU’s enlargement efforts, BiH has grappled with challenges to its statehood, which have impeded its alignment with EU requirements. Despite being universally recognised as an independent state, BiH faces internal contestation, evident in its consociational constitutional framework and the divergent nationalist narratives among constituent groups. Moreover, while BiH maintains external sovereignty, it coexists with significant international oversight, complicating its path toward EU integration. The EU’s expansion into internally contested states like BiH necessitates a nuanced approach considering the entanglement of Europeanisation and de-Daytonisation processes. This article emphasises the complexity of BiH’s governance landscape, where internal dynamics and external influences converge, creating formidable obstacles to sovereignty assertion and governance efficacy. To surmount these challenges, BiH must address internal divisions, foster inclusive governance mechanisms and balance external supervision and internal autonomy. In shedding light on how contested statehood influences the EU’s role and policies, the article discusses the concept of ‘complex sovereignty’, particularly relevant to BiH’s context.

Corporate ESG Responsibility, External Supervision, and Corporate Reputation

Corporate ESG Responsibility, External Supervision, and Corporate Reputation

The financial resource curse: Interest rate deregulation and firms' shadow banking activities

AbstractBy exploiting China's 2013 interest rate deregulation, we analyse whether the financial resource curse exists. The results show that after the deregulation, low‐risk firms with more credit resources engage in more shadow banking activities, which preliminarily confirms the existence of the financial resource curse. Moreover, this effect is pronounced in firms located in regions with high credit marketisation and firms with bank connections. However, this effect is weakened in firms with strong internal governance and external supervision, and SOEs. Finally, additional analyses reveal that active participation in shadow banking activities hinders low‐risk firms' long‐term growth, and receives unfavourable market feedback.

PERKEMBANGAN HUKUM PERDATA DI INDONESIA TINJAUAN HISTORIS DAN KONTEKSTUAL

<p><strong>Abstract: </strong>Changes and developments in civil law occur because law is dynamic, and is also influenced by Human civilization is increasingly shifting day by day along with technological developments and global warming. Civil law is essentially closely related to internal strengthening control function that replaces the external supervision function. Modern civil development law because its basis is always related to the relationship between the government regime and community, thereby strengthening the participatory role of society in one aspect. One Forms of civil law modernization that are developing include, among others; Contract law, consumer protection law, and employment law, as a form of strengthening internal functions related to external control function.</p><p><strong>Keywords: </strong>Civil law, Developments, Change</p>

When your neighbour is the village cadre: allocation of public resources in the social network

ABSTRACT As a key node in the social network, political elites play an important role in the allocation of public resources in developing countries, and they may bring benefits to their neighbours. China’s large-scale poverty alleviation efforts, as well as the nature of China as an acquaintance society, provides us with an opportunity to examine this issue. By using a novel panel of data from a village in China, our results show that households connected to village cadres are more likely to become beneficiaries of poverty alleviation projects than those not connected – the closer the social relationship with village cadres, the greater the benefits. Both favouritism and information transmission are proven to be mechanisms of the connection effect. As such, closely connected networks within communities are conducive to improving the targeting efficiency of public welfare projects, and external supervision is essential for eliminating the favouritism of political elites.

The impact of digital carbon communication on market response to carbon disclosure: The moderating effects of external supervision

This study investigates the influence of digital carbon communication quality (DCC) on market response to carbon disclosure within the reality of government environmental regulation and media attention, employing a DCC index constructed by an Autoencoder model. Using Chinese data from 2015 to 2022, we find that DCC mitigates negative market response to carbon disclosure by alleviating information asymmetry and enhancing corporate environmental performance, especially when government environmental regulation or media attention is insufficient. Moreover, DCC exhibits a stronger impact on the carbon disclosure market responses in firms with low institutional shareholdings, non-state-owned firms, and firms with high emission levels.

Manajemen Sanggar Tari Galatiak Pitameh Kota Padang

This study aims to describe the Management of Performing Arts at the Galatiak Pitameh Studio. This research is a qualitative research with a descriptive type. This research was conducted at the Galatiak Pitameh Studio in Padang City. The object of the research is the Galatiak Pitameh studio in Padang City. Data Collection Techniques with interviews, documentation and direct observation in the field. While the data analysis used in this study is an interpretation technique. The results of the research show that the management of the Galatiak Pitameh Studio has planning by making programs that will be carried out and will be implemented, with the preparation of equipment and training. Organizing has been carried out by making a line-shaped management structure. The organization also establishes the duties and authority of the management. The mobilization is carried out by providing motivation, guidance and moving towards the set goals. Internal supervision is carried out directly or indirectly, then external supervision with activity evaluation. The Galatiak Pitameh studio also has House productions consisting of dance, music, and babako. The marketing management of Sanggar Galatiak Pitameh also keeps up with the times. The Galatiak Pitameh Studio has been registered with Tourism and collaborates with Tourism. Of the two management chosen by the Galatiak Pitameh Studio, the management used shows democracy.

ЄВРОПЕЙСЬКА ХАРТІЯ МІСЦЕВОГО САМОВРЯДУВАННЯ ЯК ОСНОВА ДІЯЛЬНОСТІ ОРГАНІВ УПРАВЛІННЯ ТЕРИТОРІАЛЬНИМИ ГРОМАДАМИ В УКРАЇНІ

The article examines the topic of compliance of legal regulation and the actual activity of local self-government bodies with the European Charter of Local Self-Government from the point of view of the conceptual understanding of the place of the local self-government body in the system of local self-government, its authority to perform management functions, the possibility of external supervision of its activities and rights citizens to participate in local government, which is the fundamental basis that characterizes the condition and capacity of local authorities. It has been established that the competence of local self-government bodies to carry out management in the form of delegated authority provided by Ukrainian legislation does not correspond to the principle of subsidiarity, which is defined by the European Charter of Local Self-Government, and the lack of a real and effective mechanism of administrative supervision of local self-government bodies, as provided for by this international agreement, has also been revealed. In addition, the discrepancy in the approaches of the European Charter of Local Self-Government and acts of Ukrainian legislation to the conceptual understanding of the place of local self-government bodies in the local self-government system was analyzed, and the problem of involving internally displaced persons to life in new communities and their right as community residents to participate in local self-government was highlighted. The importance of developing specific proposals for full compliance with the principle of subsidiarity in part of delegated authorities and the implementation of the mechanism of administrative supervision over the activities of local self-government bodies into regulatory and legal circulation was emphasized. At the same time, emphasis is placed on the need for a unified approach to building a high-quality and effective regulatory framework on local self-government based on European standards, which is an important issue on the agenda in the context of Ukraine's movement towards the European community.