Good Governance Practices Research Articles

PENTINGNYA TEKNIK GOOD LOBBY DALAM KOMUNIKASI GOOD GOVERNANCE

In Good Governance Practices, lobbying is a part of communication that plays an important role for government administrators to reach mutual agreements in government activities. Good and effective lobbying can affect the smooth running of government programmes because it can help in creating relationships and cooperation between interest groups in a government area. The purpose of this research is to analyse how good lobbying is applied in good governance practices in order to successfully undergo good lobbying for every government program activity. This research uses the library research method, which is a method that uses secondary data sources by finding references through journals, books, literature, notes, and various other documents related to the problem to be solved. The results of the study state that the success of good lobbying in government practice. Successful lobbying and negotiation depends on skills in mastering verbal and non-verbal communication, the ability to analyse and solve problems, careful preparation, active listening, smart in controlling emotions, commitment, and knowing the negotiation style of others.

The Influence of Energy Consumption on Company’s Carbon Emissions; Is GCG Capable of Reducing The Carbon Emissions, Research on State-Owned Enterprises in Indonesia

The escalating global temperature resulting from climate change demands urgent attention. Carbon gas pollution, a leading contributor to climate change, induces a greenhouse gas effect. This study aims to assess the influence of Energy Consumption on Carbon Emissions generated by companies. Additionally, it explores the relationships between Carbon Emissions and other variables, including Good Corporate Governance (GCG) practices, Profitability, Size, and Debt Ratios of companies, utilizing an analytical framework model for regression analysis. The research relies on data extracted from annual and sustainability reports of 31 State-Owned Enterprises (BUMN) in Indonesia spanning the years 2018 to 2022. The findings underscore that GCG Practices, Debt Ratios, Size, and Energy Consumption exert a direct impact on environmental performance. In contrast, Profitability does not demonstrate a direct influence on the magnitude of Carbon Emissions produced. The empirical evidence indicates uncertainty in the results when compared with other studies examining factors influencing company performance.

The impact of economic uncertainty on bank efficiency—the moderating role of country governance

This study examined the impact of economic uncertainty (EU) on Islamic banks (IBs) and conventional banks' (CBs) efficiency in countries that meet a standard where 1% share of Islamic banking assets is part of their total domestic banking sector assets. In addition, this study explored the moderating effect of country governance (CG) by employing the quantitative methodology based on secondary data from 2006 to 2021. The data analysis was done through ordinary least square, fixed effect model, and the random effect model. EU was found to enhance bank efficiency based on the basic regression results. CG moderated the positive effect of EU on bank efficiency. Additional robustness tests showed that EU was positively related to both types of banks' efficiency. The value of the paper is unique in that few papers have investigated the moderating effect of CG on the impact of EU on banks' efficiency, which enhances comprehension of EU and CG. These results highlight important policy implications whereby banks should continue to invest in and improve their risk management strategies. In addition, governments and regulatory bodies should prioritise good governance practices as these can improve banks’ efficiency.

Board diversity and value creation for business sustainability

The primary objective of a firm is not the creation of profit; it is the creation of value for shareholders. Corporations need to be innovative to create value, and this entails the need for corporations to embark on research and development (R&D) endeavors. This study’s objective is to determine the impact of Malaysian publicly listed companies’ board diversity (qualification, gender, and age) on the intensity of companies’ R&D investment. In conjunction with the 2017 Malaysian Code on Corporate Governance’s, which took on a new approach that promotes board diversity in corporate governance culture, samples were selected from the Minority Shareholders Watch Group ’s Malaysia: List of Top 100 Companies Overall CG & Performance (By Rank) from 2017-2019, which portrayed good corporate governance practices. The agency theory and the resource-based view were integrated to explain the effects of board diversity on R&D investment. Tests and analysis were conducted, and the results indicated that only age diversity had a positive influence on R&D investment. Practitioners could use the findings of this study to choose the ideal board composition for a company looking to gain a competitive edge. Regulators could also use this study to develop good corporate governance procedures for Malaysian publicly traded companies. The findings of this study may not truly portray the overall industries listed in Bursa Malaysia, as the samples used were limited and the data of certain companies was unavailable.

The impact of credit risk on market discipline: Exploring the moderating role of corporate governance through Generalized Method of Moments (GMM) analysis in banking companies

High credit risk poses a significant threat to banks, underscoring the necessity to examine the effectiveness of good corporate governance in mitigating such risks. This study aims to assess the impact of credit risk, represented by non-performing loans (NPLs), on market discipline, reflected through deposit growth, and the moderating role of good corporate governance, focusing on board size and institutional ownership, in this dynamic. Data for the study were sourced from the financial reports of banking companies on their official websites, IDN Financial, and the Indonesia Stock Exchange. The study used a purposive sampling method to analyze a sample comprising 30 banking companies and yielded 300 observations. The research methodology involved dynamic panel regression analysis using the Generalized Method of Moments (GMM) technique. The findings reveal that non-performing loans negatively impact deposit growth. However, it was also found that board size and institutional ownership could positively moderate the adverse effects of non-performing loans on deposit growth. This suggests that market discipline, manifesting as a reduction in deposits and an escalation in credit risk within the Indonesian banking sector, can be effectively managed and mitigated through the strategic implementation of good corporate governance practices, particularly by optimizing board size and enhancing institutional ownership. These mechanisms enable more robust market discipline, contributing to better credit risk management and promoting healthier deposit growth.

Assessment of The Reliability of The Portuguese Republic Financial Report (2010 To 2019)

Objective: Accountability and transparency are essential values within the New Public Governance, in which reporting emerges as an instrument of accountability from public managers to stakeholders. In this context, the research aims to study the reliability of the Financial Reporting of the Portuguese State from 2010 to 2019. Method: The investigation method was the case study. It was analysed the limitations disclosed in the Opinions of the General State Account, issued by the Court of Auditors, (TdC), from 2010 to 2019. Data have been classified to carry out the descriptive analysis, allowing the interpretation of the information. Results: It can be concluded that the reliability of the Portuguese State's financial reporting is conditioned, namely by limitations of the scope and by the existence of material errors. Also, the lack of consolidated financial information and an accounting system that allows the integrated recording of State operations, as provided for in the legislation, affects the transparency and reliability of the General State Account. These constraints also limit the issuing of an opinion by the Court of Auditors under the International Standards on Auditing. Originality/Relevance: There is no known research on the reliability of the financial reporting of the Portuguese State, which is essential for the desired transparency. Theoretical/methodological contributions: The study contributes to the knowledge of the public sector transparency, meeting the stakeholders’ requirements for good governance practices and accountability.

Determinants of Islamic bank stability in Asia

Purpose This study aims to analyze the factors that influenced the stability of Islamic banks in Asia. Design/methodology/approach The panel data consisted of 16 Asian countries operating Islamic banks from 2010 to 2019. The data were analyzed through dynamic panel regression using Arellano–Bond generalized method of moments (GMM). Findings This study provides novel insights into the factors influencing the stability of Islamic banks in Asia. The findings suggest that past financial stability, liquidity risk, loan risk, inflation, gross domestic product, government effectiveness, rule of law and control of corruption are all significant contributors to Islamic bank stability. Notably, political stability, voice and accountability and regulatory quality did not show a significant association. Research limitations/implications The current study’s focus was solely on Islamic bank stability in Asian countries, which leaves room for further exploration. Future research could benefit from expanding the scope to encompass all nations with active Islamic banking institutions. In addition, incorporating a broader range of macroeconomic variables, such as exchange rates, interest rates, profit-sharing equivalents and investment rates, could provide deeper insights into the factors influencing Islamic bank stability across diverse contexts. Practical implications This study has significant practical implications for policymakers, bank managers and regulatory authorities seeking to enhance the stability of Islamic banks in Asia. By implementing robust risk management frameworks, adopting prudent regulatory policies, and actively fostering economic growth, policymakers can create an environment conducive to the sustained development and prosperity of Islamic banking institutions. Notably, promoting good governance practices and instituting effective crisis prevention measures can further bolster the resilience of the Islamic banking sector, enabling it to play a more dynamic role in contributing to the overall development and welfare of Asian societies. Social implications The findings of this study carry significant social implications, highlighting the need for governments in Asian countries to prioritize public policies that promote good governance and ethical practices within the banking industry. Such policies, coupled with efforts to attract foreign investments and foster a stable and transparent banking sector, have the potential to generate far-reaching positive effects on society. Through economic growth stimulated by a robust Islamic banking sector, Asian countries can create new employment opportunities, improve living standards and ultimately enhance the overall well-being of their citizens. Originality/value This study contributes to the ongoing discourse on Islamic banking stability by offering novel insights and expanding the empirical knowledge base in this field. The dual application of robust regression methodologies – namely, GMM dynamic panel data models – presents a unique analytical framework for investigating the complex interplay between diverse variables and Islamic bank stability. This methodological choice fosters deeper understanding of the dynamic relationships at play, advancing our understanding of how specific factors influence the sector's resilience and performance. In addition, the study uses rigorous empirical techniques and engages with the extant literature to provide fresh perspectives and nuanced interpretations of the findings, further solidifying its contribution to the field's originality and richness.

CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE: A CASE STUDY IN THE PHARMACEUTICAL SECTOR IN MALAYSIA

The introduction of the Malaysian Code of Corporate Governance has been progressively updated since its inception in the year 2000 and the latest update in the year 2021, proves that the government of Malaysia has been serious in regulating to ensure that the companies in Malaysia have been compliant with good corporate governance practices. Observing that it is an evergreen issue and to have more updated research, this study evaluates factors that could influence the effectiveness of corporate governance of five pharmaceutical companies listed in Malaysia and its relationship with the financial performance for the period of 2017 - 2021. The methodologies that have been employed for this study are descriptive statistics, non-parametric correlations, scatter plots and regression linear. The findings reveal that variables of board size, board independence, and disclosure of sustainability reports have correlations with the financial performance measured by the return on assets. However, the disclosure of sustainability reports is the only variable that has a significant correlation with ROA whereas board size and board independence do not possess similar relationships. For a better representation of the results’ precision and robust findings, it is recommended to have a longer study period than five years and a larger sample size by extending it to other sectors.

Do Financial Performance and Corporate Governance Effect on Firm Value: Evidence from Manufacturing Sector

This study attempts to investigate, either partially or simultaneously, the effects of Financial Performance as determined by Profitability, Solvency, liquidity well, and Good Corporate Governance, as decided by the Audit Committee on Firm Value and the Independent Board of Commissioners. The study approach is quantitative and makes use of secondary data-manufacturing firms registered on the Indonesia Stock Exchange. The population in this study is made up of 143 manufacturing firms. In the interim, the sample for this study was chosen through the technique of purposeful sampling. The analysis method used is multiple linear regression analysis. The Kolmogrof-Smirnof test, multicollinearity test, heteroscedasticity test, t-test, and coefficient of determination test were all employed in this investigation. The study's findings demonstrate that the factors Independent Board of Commissioners, Profitability, Solvency, Liquidity, and Audit Committee each partially positively impact firm value. Managerial implications related to the influence of financial performance and good corporate governance are increased focus on financial performance, increased transparency and disclosure of information, implementation of good corporate governance practices, and risk and compliance management. The valuation of the firm is key in the transfer of business decisions, such as mergers, acquisitions, and stock offerings.

Measuring the Resilience of Rural Banks Against COVID-19 Pandemic: Evidence from West Java, Indonesia

The potential disruption of operational activities in rural banks is linked to MSME actors' inability to repay loans amid the COVID-19 pandemic. The quality of credit and financing provided by these banks is vital in ensuring income and interest continuity, thereby impacting profitability. This study aims to analyze the financial performance dynamics and factors influencing rural banks' profitability in West Java, Indonesia, during COVID-19. The research utilized multiple linear regression with REM estimation. Despite the pandemic's challenges, the ROA, CAR, and equity values of the rural banks met minimum standards, though NPL values exceeded maximum limits. The combined factors of CAR, NPL, equity, net income, and the pandemic collectively influence profitability. Specifically, NPL and the pandemic have significant negative effects, while net income positively impacts profitability. To bolster the resilience of rural banks during crises, suggested policy measures include strengthening capital reserves, tightening credit policies, implementing good governance practices, and enhancing operational cost efficiency.

The Effect of Good Corporate Governance on Company Performance with Corporate Social Responsibility as a Moderating Variable

The purpose of this study was to determine the effect of Good Corporate Governance on Company Performance with Corporate Social Responsibility as a Moderating Variable. This research is an Empirical Study of Manufacturing Companies Listed on the IDX for the 2017-2022 Period. The method used in this research is quantitative method. Empirical analysis can involve collecting company financial data, including Good Corporate Governance practices that may be measured by certain methods (such as accruals or other qualitative methods), as well as Company Performance data that can be calculated and Corporate Social Responsibility data as a Moderating Variable. After the data is collected, statistical analysis such as linear regression may be used to test the relationship between Good Corporate Governance variables on Company Performance With Corporate Social Responsibility As A Moderating Variable. The results of this study indicate that Good Corporate Governance practices have a negative effect on financial performance, Corporate Social Responsibility has a positive effect on financial performance, simultas Good Corporate Governance and Corporate Social Responsibility have a significant effect on financial performance.

Creating sustainable public private partnerships through corporate governance in the Sub-Saharan Africa (SSA)

Governments of Sub Saharan African (SSA) countries have struggled to successfully invest in capital intensive projects. As such, public private partnerships play a key role in redefining the role of Government in the context of infrastructure projects, by focusing on supervision and regulation and moving away from direct ownership and management. Sub Saharan African countries have seen such inclusive partnerships yielding some numerous benefits in different sectors. However, despite the salubrious benefits that PPPs have brought in different projects, PPPs in SSA countries are still dogged by a myriad of administrative, technical, financial and legal challenges. These corporate governance related challenges have made it difficult for these SSA governments to glean the full benefits of PPPs. The study is informed by the qualitative methodology with an extensive review of literature. Data was gathered from purposively selected written documents and these documents were analysed using thematic and content analysis techniques. The study established that there are some corporate governance deficiencies in most PPP projects in the SSA countries. Additionally, most of these public projects in the SSA lack adequate good corporate governance attention that is given to the PPP procedures and processes involved. The study therefore recommends that there is need for the full adoption of good corporate governance systems, practices, processes and procedures in the PPPs designing, financing, implementation and operationalisation in SSA.

THE POST COVID EFFECT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: A STUDY ON PRIVATE COMMERCIAL BANK IN BANGLADESH

Due to extensive corporate disgraces and catastrophes around the globe, there has been a transformed attention in the influence of corporate governance (CG) and firm performance (FP). The mainstream of research concerning CG and its effect on FP has been assumed in developed markets and countries, mostly the US and UK, but somewhat little indication is provided in the developing countries like Bangladesh. This report has examined the impact of corporate governance mechanisms on firm performance from Bangladesh’s perspective. This study primarily employs agency theory that indicates that the firms with strong corporate governance outperform firms with weaker governance. We used Board Size, Board composition, board expertise and CEO chair duality as variables of CG and EPS, ROA, and ROE as indicators of FP. We collected information from the managers, senior managers, and CFOs of private financial institutions (commercial banks) in Bangladesh for 2022-2023 financial years. The results reveal that size, composition and expertise of board could extremely influence FP positively whereas CEO chair duality could influence negatively. The outcomes of the analyses advocated that firms that comply with good corporate governance practices can expect to achieve higher return on assets and firm performance. It implies that worthy corporate governance applies lead to reduce the various costs inside the organization. Hence, it is concluded that firms of the developing world can possibly enhance their performance by implementing decent corporate governance practices. Therefore, it is desired for firm to separate CEO chair duality to achieve better performance through direct management supervision in Bangladesh.

‘Meta’ analysis: considerations when using Facebook within research and evaluation studies: a research note

ABSTRACT The use of social media platforms as a means of data collection for researchers is increasing. With the number of active users of Facebook across the globe exceeding two billion, the platform offers a means to reach and hear from diverse populations and gather information-rich data. Despite an increase of researchers utilising Facebook and publishing their findings, there has been less focus on describing the issues researchers need to think about to undertake their work in line with ethical principles, which is particularly important when engaging people in research. This research note provides a worked example of the practical steps adopted when establishing a Facebook Page and Group to recruit and gather data from individuals receiving care and support. The paper offers guidance for researchers on the issues to consider and provides insights into how using Facebook can be aligned with good research governance practice and ethics approval processes.

Ratification of the UN Anti-Corruption Convention: Legal and Political Implications in Indonesia and its Context within Southeast Asian International Law Discourse

This paper scrutinizes Indonesia's ratification of the UN Anti-Corruption Convention, examining its legal and political implications within Southeast Asia's international law discourse. Analyzing treaty provisions alongside Indonesia's legal framework, it assesses challenges and opportunities in combating corruption. The study emphasizes several key findings. Firstly, domestically, ratification showcases Indonesia's commitment to combat corruption, addressing a long-standing governance and economic development issue. Aligning with international standards signals intent to fortify anti-corruption efforts, bolster transparency, and augment accountability mechanisms. This aligns with fostering good governance practices vital for sustainable development and attracting foreign investment. Secondly, ratification holds political significance, affirming the government's dedication to tackling corruption, potentially enhancing its legitimacy. However, effective implementation may face hurdles due to entrenched political interests and bureaucratic challenges. In the Southeast Asian context, Indonesia's ratification serves as a model for regional cooperation against corruption. As a major economy and populous nation, Indonesia's commitment sets a precedent for collective action. It underscores the importance of regional collaboration in combating corruption, opening avenues for dialogue, collaboration, and capacity-building initiatives. This offers prospects for strengthening anti-corruption frameworks and mechanisms both nationally and regionally. In conclusion, Indonesia's ratification of the UN Anti-Corruption Convention signifies a pivotal step in combating corruption domestically and regionally. While it showcases political will and potential for regional cooperation, effective implementation remains contingent on overcoming internal challenges and fostering collaboration across Southeast Asia. This study illuminates the complex interplay between national and international efforts to combat corruption, contributing to a deeper understanding of the regional dynamics at play.

Waqf –Takaful Compensation Model: The Documentation Framework Index (DFI) towards Good Governance Practices and Sustainability of Takaful Companies in Malaysia

The concept of Waqf in Takaful refers to the distribution of Takaful contributor death compensation benefits to selected religious institutions for Waqf property. In this given context, the Waqf is established upon the contributor's death, and the compensation received by the Waqf beneficiary will be utilized for religious welfare until the culmination of time on the day of judgment. Therefore, this study focused on the level of implementation of the Waqf-Takaful Compensation Model toward good governance practices and sustainability of takaful companies, using a Documentation Framework Index (DFI) which was developed based on the data collected from 106 takaful agents who were involved directly throughout the introduction of Waqf-Takaful Compensation Scheme until 2022. It was found that 88% of Takaful Agency documented the percentage of the death compensation to participants by choice. Followed by 81% of Takaful Agency declared participants have the right to decide the percentage of the Waqf to be contributed to religious institutions and 79% of Takaful Agency restricted participants can only Waqf the percentage of death compensation not to an individual but to religious institutions. However, there are still some weaknesses in several elements of documentation and marketing of Waqf –Takaful Compensation Scheme by Takaful companies that needs some improvement. Therefore, the Waqf-Takaful Compensation Model, facilitated by the Documentation Framework Index, presents a forward-looking approach that aligns with Islamic principles based on waqf and Takaful compensation practices which promotes good governance, fosters sustainability, and contributes to the overall growth and positive impact of the Takaful industry in the country. However, successful implementation of the Waqf-Takaful Compensation Model requires collaborative efforts from various stakeholders, including regulators, Takaful operators, scholars, and the community. Adequate awareness, education, and buy-in are essential for the widespread adoption of this innovative model.

Board attributes, risk management and financial performance: Insights from Iraq

Purpose: This study examines how good corporate governance practices and the establishment of risk management committees reduce investors’ risks and improve performance. Research Methodology: Data stream and annual reports were used to acquire secondary data for all 21 banks listed on the Iraqi Stock Exchange between 2019 and 2021, totalling 63 firm-year observations. Data were analyzed using Stata version 15. Results: The data show that board size and independence have strong negative relationships with bank performance. The financial knowledge of the board and independence of the risk management committee had minor positive relationships with performance. Limitations: This study examines board size, independence, financial expertise, and the presence of a risk management committee. Other factors that may impact bank performance include the type of ownership structure, audit committee, and the application of additional financial performance indicators such as Tobin’s Q. Future research could expand to encompass these factors. Contribution: This study aims to provide valuable insights to the Iraqi government and regulators, aiding them in formulating new policies and deliberating on issues related to corporate governance concerning bank performance. It is well-established that both shareholders and companies rely on robust corporate governance mechanisms, especially as a means of augmenting bank value Novelty: The presence of a risk management committee reduces managers' discretion to engage in opportunistic behavior. This study educates regulators on the importance of firms having sound corporate governance and separate and active risk management committees to improve internal control.

Implementation of BUMN Minister Regulation Number 09/MBU/2012 Implementation of Good Corporate Governance in Bumida Insurance Companies

This research aims to determine the implementation of regulation-09/MBU/2012 concerning the Implementation of Good Corporate Governance in Bumida general insurance companies. The type of research used is empirical using statutory, conceptual and sociological approaches. The source of legal materials used is secondary data consisting of primary, secondary and tertiary legal materials and primary data. Based on the research results, it is known that the arrangements used in implementing the principles of implementing good corporate governance in Indonesia are regulated in the Minister of State-Owned Enterprises Regulation number PER-01/MBU/2011 with amendments to PER-09/MBU/2012 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises (BUMN). Furthermore, the principles for implementing good corporate governance in Indonesia are strictly regulated through the Decree of the Minister of BUMN Number Kep-117/M-MBU/2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises ( BUMN) which was then refined by Minister of State for BUMN Regulation Number: PER-09/MBU/2012 and Bumida has implemented good corporate governance as proven by the existence of an ISO certificate, if there is an ISO certificate it means it has been checked and has implemented the implementation of corporate governance which is good, the Mataram branch of Bumida Insurance is transparent on the financial side because it is a non-banking financial company. Bumida entered the FKLJK forum (financial services institution communication forum) which is directly supervised by the OJK.

The adoption of good Corporate Governance practices by small and medium-sized

This study examines the adoption of good practices of corporate governance and the intensity of such practices in family small and medium enterprises (SMEs). We developed and tested our theoretical framework using survey data from Brazilian enterprises and factorial analysis and logistic regression. The results suggest that knowledge of benefits from corporate governance drives family enterprises to employ high levels of good practices of corporate governance while some managers features drives family enterprises to employ low levels of such practices. On the other hand, managers features can contribute to family enterprises employ low levels of good practices of corporate governance. We extend the discussion regarding antecedents of good practices of corporate governance employed by family enterprises and why some of them intensify corporate governance adoption more than others do. Likewise, we offer a wider perspective, theoretically and empirically, of antecedents of corporate governance mechanisms in family firms and the intensity of this adoption. Also, the study provides subsidies to managers make decisions regarding the employment of good practices of corporate governance in family enterprises and contributes to the improvement regarding the indexes of family enterprises mortality.

Modeling the Strategic Enablers of Financial Sustainability in Saudi Higher Education Institutions Using an Integrated Decision-Making Trial and Evaluation Laboratory–Interpretive Structural Modeling Approach

Ensuring financial sustainability is paramount for higher education institutions (HEIs) to maintain financial viability and accomplish their strategic objectives by efficiently managing and utilizing resources. Studying strategic enablers’ interconnections and influences on each other is essential to forming a profound understanding and guiding the execution of initiatives linked to achieving financial sustainability plans. The main objective of this research study is to construct a model and analyze the strategic enablers of financial sustainability in HEIs and their associated dimensions. An integrated modeling approach was followed based on the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Interpretive Structural Modeling (ISM) methods. Input data collected from experts with specialist experience in financial sustainability in HEIs were used in the modeling. The overarching finding is that starting with the development of regulations and legislation-related systems leads to good governance practices, enabling the achievement of financial sustainability in HEIs. The developed model unpacks the complex relationships among the enablers and their dimensions. It reveals their cause-and-effect relationship classifications, ranks based on relative importance weights, dependence and driving powers classifications, relationship directions, and interpretive structure. It provides an overarching view of the interconnected network that acts as a roadmap to achieving financial sustainability in HEIs.