Good Governance Research Articles

Practices of Good Governance in Budhanilkantha Municipality: Local Government Initiatives

This article explores good governance practices and public service delivery by elected representatives and administrative staff in Budhanilkantha Municipality, Nepal. It examines local government initiatives and emphasizes key principles of good governance such as accountability, transparency, justice, and participation. This study employs a mixed-methods approach, incorporating surveys and interviews, to assess key governance indicators, including transparency, accountability, public participation, and service delivery. Likewise, a stratified sampling method was used to select 120 respondents from all wards of Budhanilkantha Municipality. The findings provide a comprehensive overview of governance practices in the Municipality, highlighting strengths and improvement areas. While awareness of governance principles is generally high, challenges such as limited public participation, delayed public service delivery, and varying levels of transparency persist. The research underscores the importance of citizen engagement and the proactive implementation of good governance mechanisms to foster trust, enhance service delivery, and support sustainable local development. The insights derived from this case study offer valuable guidance for policymakers, practitioners, and community stakeholders seeking to strengthen governance frameworks at the local level.

Institutional quality and government expenditure: an empirical study of the environmental Kuznets curve (EKC) in G20 countries

G20 member countries are forced to reduce carbon dioxide emissions from the global community as well as economic development constraints from domestic resources and the environment. Literature related to institutional quality and government expenditure is still limited, especially in G20 countries. To provide empirical evidence to support the theoretical argument, the study investigated the effects of institutional quality and government expenditure on CO2 emissions using a balanced panel dataset of nineteen countries that were members of the G20 between 1995 and 2015. Empirical results show that institutional quality is able to reduce carbon emissions. A good government can formulate strict environmental regulations and ensure transparency, which allows investment in green technologies and renewable energy. Other findings suggest that government spending can increase carbon emissions. The findings show that government spending in G20 countries still does not consider environmental impacts. Several policy recommendations are suggested.

Editorial: social and green finance, ESGs, good governance, and ethics to avoid corruption and fraud in business and government

Editorial: social and green finance, ESGs, good governance, and ethics to avoid corruption and fraud in business and government

Good Corporate Governance dan Nilai Perusahaan: Sebuah Analisis Bibliometrik

The study aims to analyze the relationship between Good Corporate Governance (GCG) and the value of companies through a bibliometric approach. GCG is an important factor in improving the quality and sustainability of companies, especially in preventing economic crises and boosting investor confidence. Although GCG implementation has been a major concern, there are still gaps in its implementation in many companies, in developing countries. The study used a bibliometric analysis method with data obtained from Google Scholar, collected on January 20, 2024 using the Publish or Perish application. The data analyzed included 950 GCG-related articles and company ratings processed using VOSviewer software version 1.6.20. The results of the analysis showed a significant increase in publications related to this topic, especially in 2022, reflecting increased attention to GCG in academic research. The findings of this study confirm the importance of GCG in raising the value of the company, which in turn has a positive impact on the company's financial performance and investor confidence. The novelty of this research lies in bibliometric analysis that provides insight into the development of literature and the contribution of GCG to the value of the company, which has rarely been explored in previous research.

The rule of law strengthening on corporate green innovation: a quasi-natural experiment based on the establishment of environmental courts in China

Strong judicial support is an important guarantee for a country’s environment to achieve good governance. This paper utilizes a multi-period difference-in-differences approach to examine the impact of environmental justice reform, represented by environmental tribunals, on corporate green innovation and its underlying mechanisms. It is found that environmental courts can effectively promote green innovation in enterprises, and their effect on “substantive green innovation” is more significant than that on “strategic green innovation”. The environmental court is divided into the environmental resources trial court and the environmental resources panel court, and the trial court has a more pronounced effect on promoting corporate green innovation than the environmental resources panel court. The establishment of environmental protection courts can improve the efficiency of regional environmental justice, enhance the government’s awareness of environmental protection, and increase the cost of illegal activities by enterprises, thereby promoting corporate green innovation. The promotion effect of environmental courts on corporate green innovation is more significant in regions with non-state-owned enterprises, better legal environments, and lower levels of industry competition. The main findings still hold after considering robustness tests, such as the endogeneity of environmental court establishment. The study suggests that environmental judicial specialization has a positive impact on corporate green innovation, and that the reform of environmental judicial specialization should be continuously deepened to provide useful insights for the construction of the ecological rule of law and the green transformation of enterprises.

Pengaruh CSR dan GCG terhadap Kinerja Keuangan Perusahaan dengan Manajemen Laba sebagai Variabel Mediasi

This study aims to examine the effect of Corporate Social Responsibility and Good Corporate Governance on the financial performance of technology sector companies listed on the IDX with earnings management as a mediating variable in the 2019-2022 period. The type of research used is a quantitative approach. The number of samples in this study were 13 companies with 4 years of observation period selected using purposive sampling method. The analysis and hypothesis testing used is PLS-SEM using SmartPLS software. The results showed that CSR and GCG variables were able to influence financial performance and earnings management. Earnings management variables cannot affect the company's financial performance. Earnings management cannotmediate the relationship between CSR and GCG on financial performance. The conclusion of this study is that bothCSR and GCG play an important role in improving the company's financial performance. Companies committed tosocial responsibility and good governance mechanisms tend to be financially healthier. On the other hand,earnings management practices are often practiced but do not have a significant impact on financial performance.

Between Realism and Idealism in the Politics of Development

Politically informed approaches to development assistance have become highly influential, particularly in reaction to the era of ‘Good Governance’. A notable feature of this trend has been explicit antipathy to ‘idealist’ thinking and concomitant preoccupation with being realistic, pragmatic, understanding political realities and eschewing moralism, utopianism, idealism, and the like. In other words, there has been an underlying philosophical turn towards political realism. Now, the political philosophy literature would suggest that realism typically generates questions and worries relating to normativity: how values, ethical constraints, political ideologies, visions of desired futures, and so on, might work under realism. Do corresponding concerns also attend to the realist turn in the politics of development? I argue that they do. They can be organized heuristically as a sequence of three problems: loss of critical distance, crypto-normativity and creeping return of idealism. This is the realist’s trilemma. It generates normative quandaries and an inherent logical instability that makes the realist posture a difficult one to maintain for long. I argue that it is better, when thinking about the politics of development, simply to grasp the third horn of the trilemma and let idealism back in, though tempered by the useful critical intervention of the realist turn.

FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA KEUANGAN DI PERUSAHAAN JAKARTA ISLAMIC INDEX (JII) TAHUN 2018-2022

The aim of this research is to determine the influence of Intellectual Capita, Good Corporate Governance, Accounting Conservatism on finance with company size as a moderating variable in companies registered on the Jakarta Islamic Index (JII) 2018-2022. Data used is quantitative source secondary data company financial reports for 2018-2022. Data analysis uses multiple linear regression and hypothesis testing. The research results obtained were that Intellectual capital and accounting conservatism had a significant effect on ROA in companies listed on (JII) 2018-2020, while good corporate governance had no significant effect on ROA in companies listed on (JII) 2018-2020. Intellectual capital has a significant effect on ROA with company size as a mediating variable in companies listed (JII) 2018-2020. Meanwhile, good corporate governance and accounting conservatism do not have a significant effect on ROA with company size as a mediating variable in companies listed (JII) for 2018-2020.

Hybrid governance in selected African countries:

Governance is still a contested concept in both theory and practice. A proliferation of the concept has sprung up in literature. One comes across variations where reference is made to co-production, public governance, good governance, hybridity governance, hybrid governance, to name but a few. The aim of this paper is to provide a conceptual overview of the evolution of the concept governance in general and hybrid governance particulary focused on selected African countries. It is important to clarify what hybrid governance involves, and its implications for state capacity and service delivery. Furthermore, it is imperative to discern whether hybrid governance could be a useful conceptual tool for facilitating more organised systems of service delivery in parts of Africa and South Africa, or whether it is just “new developmental jargon”. The paper employed a qualitative research approach where secondary sources of information, constituting document analysis, premised around forms of hybrid governance in selected African countries were explored. The paper makes a conceptual contribution to the collaborative international governance discourse.

Governance Framework of the Centre of Government

Abstract Research purpose. The study aims to analyse the existing governance framework within the Centre of Government (CoG) in Latvia, exploring operational functions of the CoG, including function implemented by the CoG – to participate in all selection and nomination processes of members of the supervisory boards of state-owned enterprises (SOEs), and to provide proposals for strengthening the governance framework of the CoG. Design / Methodology / Approach. To compose the framework of the study, the state institutions that constitute the CoG in Latvia were first identified. In the next step of the study, according to the structure defined for the Latvian CoG, a literature review and data analysis were conducted on: (a) governance and its key principles of good governance in public administration and corporate governance, (b) the operational functions performance within the CoG, including its participation in the process of members selection and nomination for the supervisory boards of SOEs. Based on the study results, suggestions for the system of criteria for the governance framework of the CoG were developed. Findings. Following the study into the governance framework of the CoG, it is discovered that effectiveness indicators are underused, and quality indicators need rationalization. The findings of the study suggest that the quality of the operational functions of CoG can be measured through the outcomes of the selection and nomination process for potential members of the supervisory boards of SOEs. Based on the study results, the following additional findings were made: (a) in order to achieve good corporate governance results in the selection and nomination process, it is necessary to utilize several additional criteria, which are essential not only for enhancing the effectiveness of the operational functions of CoG but also for effectiveness of the supervisory boards of SOEs; (b) to effectively ensure the development planning system’s process, thereby strengthening its governance, transparency and compliance throughout public administration, there is a necessity in Latvia to enhance the effectiveness of the document development, approval, and monitoring processes. Originality / Value / Practical implications. Proposed is a practically applicable criteria system, which allows to monitor and evaluate the management process at the CoG, thereby timely identifying areas of improvement and enhancing the overall quality of governance. The criteria system developed within the study can be flexibly adapted to governance framework development outside Latvia, particularly concerning issues related to the selection and nomination process and effective policy planning management. An original study approach has been implemented since the process of selection and nomination of supervisory board members of SOEs is considered in relation to the operational functions of the CoG.

Artificial intelligence and public governance models in socioeconomic welfare: some insights from Slovenia

This paper investigates the adoption of artificial intelligence (AI) in public governance and its impact on socioeconomic welfare, focusing on Slovenian Social Work Centres (SWCs). The objectives are to assess how AI applications align with governance models such as (Neo)Weberian Bureaucracy, New Public Management (NPM), and Good Governance, and to evaluate their effectiveness in promoting socioeconomic welfare. Furthermore, the study aims to identify opportunities and risks associated with AI in public governance and to provide policy recommendations for the ethical and effective integration of AI. A mixed-methods approach is adopted, comprising a comprehensive literature review to develop a theoretical framework, a cross-tabulation analysis of the European Commission's dataset of 686 AI use cases in 27 EU Member States, and a case study of AI implementation in Slovenian SWCs. This includes the analysis of administrative data from 2018–2022 on the e-Welfare platform and analysis of reports from Slovenian oversight bodies such as the Court of Audit, the Administrative Inspection, and the Human Rights Ombudsman. The results show that AI significantly improves administrative efficiency, particularly in the areas of resource management, cost-effectiveness, and service quality, which closely align with NPM principles. However, challenges remain in terms of transparency and accountability, as AI systems are often not transparent, making oversight difficult and jeopardising public trust, especially in the area of social welfare. The study concludes that while AI has significant potential to improve public governance, appropriate regulation and human oversight are essential to mitigate risks and ensure compliance with governance principles. The study provides valuable insights into the role of AI in administrative efficiency and is therefore relevant to policymakers, public officials, and researchers aiming to leverage AI's benefits while ensuring ethical governance and equitable socioeconomic outcomes.

Institutional Ownership and Financial Distress: The Moderating Effect of Executives with Foreign Experience

Objective –This research aims to analyze the influence of institutional ownership on financial distress and the role of executives with foreign experience as a moderating variable. Design/Methodology –The object of this research is the consumer cyclical sector companies listed on the Indonesian Stock Exchange during the 2017–2021 period. The data sample was gained through purposive sampling and obtained from 47 companies that met the criteria. Partial Least Squares Structural Equation Modeling (PLS-SEM) using WarpPLS 8 is the analytical technique used in this research.Results –This study provides evidence that institutional ownership can prevent or reduce financial distress as it functions to monitor company performance. The variable of executives with foreign experience strengthens the influence of institutional ownership on financial distress, which shows the role of executives with foreign experience in reducing the possibility of financial distress.Research limitations/implications –This study was conducted in the consumer cyclical sector for five years of observation, which can limit the generalizability of its findings. The implications of this study are practical suggestions for the company's management to avoid financial distress and achieve long-term goals through the role of CEO in relation to its overseas background. Novelty/Originality –In Indonesia, prior research has explored the impact of good corporate governance and the CEO's role in maintaining financial distress conditions. Nevertheless, none has investigated the overseas background aspect, namely the CEO with foreign experience, as one of the moderating factors that influence the GCG aspect of reducing financial distress, which is the originality of this study.

Identification of factors influencing the realization of good urban governance in the city of Isfahan using a futures studies approach

Identification of factors influencing the realization of good urban governance in the city of Isfahan using a futures studies approach

Pengaruh Strategi Bisnis dan Good Corporate Governance Terhadap Kinerja Perusahaan: Studi Empiris pada Perusahaan Industri Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia Periode 2020-2022

Company performance is a decision from all agreed factors, therefore to assess company performance by increasing the company's financial performance. The basis for decision making can be seen by measuring the company's financial performance. Company performance is a measure of how well a company uses its assets and other resource to generate income. The study aims to analyze the effect of business strategy and good corporate governance on company performance. The population in this study are Consumer Goods Industry Companies in 2020-2022. The sample in this study were 62 companies obtained through purposive sampling. The data analysis method used is multiple linear regression. The result of this research show that the Business Strategy, the Board of Commissioners, and the Board of Directors influences company performance.

Corruption in South Africa: an ongoing challenge to good governance

The article seeks to examine the phenomenon of corruption within the specific context of South Africa. The primary inquiry posed in the study is, 'What are the instances and underlying factors contributing to corruption in South Africa?' Corruption arises from a multitude of factors, including avarice, the pursuit of authority, and the dynamics of elite networking, among others. The presence of these factors within the nation fosters an atmosphere of impropriety at both the political and bureaucratic tiers of governance. The nation has instituted a range of anti-corruption bodies and strategies; however, the existing gaps in implementation pose significant obstacles to the effective realisation of these initiatives, thereby hindering efforts to combat or mitigate the prevalence of corruption. The research adopts a qualitative methodology and employs desktop analysis to gather information. The information was obtained through a thorough examination of existing literature and document analyses. The information underwent evaluation through conceptual and documentary content analysis. The findings indicate that cultural and normative frameworks that undermine democracy and the Bill of Rights are perpetuated by corruption. The ethical frameworks that dictate institutional ethics stand in contrast to the principles of public administration. The populace may experience a decline in trust towards governmental institutions and their operations due to the capacity to question the integrity of their elected officials. The article culminates in a proposal for the establishment of codes, strategies, and a culture governed by ethical principles, aimed at fostering ethical values among both employees and employers. It is of paramount significance that individuals embrace personal responsibility and accountability to engage ethically within the workplace, thereby contributing to the overarching organisational culture and values. This research enhances the understanding of public governance, human resource management, organisational development, and leadership studies.

Zakat Management from a Good Governance Perspective in Siak Regency (Study at the Zakat Collection Unit in Tualang District)

To assist the government in closing the socio-economic gap in society, Muslims' zakat must be managed professionally as a source of income. society, Muslim zakat must be managed professionally as a potential resource. potential resources. To help manage zakat in the region, BAZNAS Siak Regency has built fourteen Zakat Utilization Units (UPZ). One of the UPZ with a low level of zakat collection is UPZ Tualang sub-district. The amount of zakat distributed and the number of Muslim population are not comparable, as well as the level of zakat collection. population is not comparable, so is the collection rate. If supported by good governance framework, optimal zakat management can be achieved. The purpose of this research is to provide an overview of Zakat Management in Siak Regency based on Good Governance. Management in Siak Regency based on Good Governance, especially in UPZ Tualang District. Tualang. The examination technique used is subjective exploration with a contextual investigation approach using contextual investigation approach by using the hypothesis of Great Administration hypothesis according to the Unified Country Improvement Program (UNDP) in Khairudin, Soewito, and Aminah (2021) which has 9 factors, namely Guidelines Cooperation, Order, Straightforwardness, Responsiveness, Located Agreement, Fair, Convincing and Effective, Responsibility, and Primary Vision. The results of the study concluded that the management of zakat, especially in the Zakat Collection Unit (UPZ) of Tualang District, was not optimal because of the nine principles of good governance, namely the principles of participation, responsiveness and accountability, which found three obstacles, namely low public knowledge about zakat, ineffective socialization, and amil was not focused on managing zakat. Based on the results of this research, it is hoped that the community can more involved in the management of zakat in UPZ Tualang Regency, and the UPZ administrators are expected to be more effective in managing zakat. UPZ administrators are expected to be more effective in carrying out their duties in managing zakat and educating the public about zakat. managing zakat and educating the public about zakat.

The effect of good corporate governance on financial performance in banking companies listed on the Indonesia stock exchange

This research was conducted by a banking company listed on the Indonesia Stock Exchange. The purpose of the study is to find out and analyze the influence of Good Corporate Governance on financial performance in banking companies listed on the Indonesia Stock Exchange. Good Corporate Governance in this study is measured by the Independent Board of Directors, Independent Board of Commissioners, Managerial Ownership and Audit Committee. Meanwhile, Financial Performance is measured by return on assets (ROA). The number of samples in this study is 120 financial statements. The research was conducted from 2021 to 2023. This study uses quantitative data processed with the Eviews application with a linear regression model of panel data. The data source used is secondary data taken from the Indonesia Stock Exchange website. The results of the study show that the Independent Board of Directors partially has a positive but not significant effect on ROA. The Independent Board of Commissioners has a significant positive effect on ROA. Managerial ownership has a significant positive effect on ROA. The Audit Committee has a significant positive effect on ROA. Meanwhile, simultaneously the Independent Board of Directors, the Independent Board of Commissioners, Managerial Ownership and the Audit Committee simultaneously had a significant positive effect on the ROA variable. The amount of influence contribution is 84.82%.

The influence of real and accrual earnings management on idiosyncratic risk with good corporate governance as a moderating variable

This study investigates the impact of real and accrual earnings management on idiosyncratic risk, with a focus on the moderating role of good corporate governance, proxied by managerial ownership, in manufacturing firms listed on the Indonesia Stock Exchange from 2020 to 2022. Using moderated regression analysis, the findings reveal that both real and accrual earnings management practices negatively affect idiosyncratic risk, suggesting that earnings management may serve as a risk mitigation tool under efficient contracting perspectives. However, managerial ownership exhibits divergent effects: while it strengthens the risk-reducing impact of real earnings management, it unexpectedly amplifies the idiosyncratic risk associated with accrual earnings management, potentially due to managerial motivations to meet financial targets. These results highlight the complex role of corporate governance in earnings management, as it may act as both a stabilizing and risk-amplifying factor depending on the type of earnings management practiced. The study underscores the need for stakeholders to critically evaluate earnings management and corporate governance practices, while encouraging future research to include additional variables to further explain idiosyncratic risk determinants. The study's Adjusted R Square value of 8.1% indicates that other significant factors affecting idiosyncratic risk were not captured in this analysis.

Food and Livestock Sustainability in the Modern Era

The article delves into the intricate relationship between food security and livestock sustainability in today's world. With the global population on the rise and evolving consumption patterns, the livestock sector is tasked with the dual challenge of meeting the growing demand for animal protein while minimizing environmental impacts. By conducting a thorough review of literature and analyzing recent case studies, this research investigates the crucial role of livestock farming in global food security and the sustainability hurdles it confronts. Key findings indicate that technological advancements like precision livestock farming, integrated food system approaches, and circular economy concepts hold promise as solutions to enhance production efficiency and decrease environmental impacts. Additionally, the article underscores the significance of effective policies, good governance, and shifts in consumer consumption patterns in propelling the transition towards more sustainable livestock systems. In conclusion, achieving a balance between food security and livestock sustainability necessitates a comprehensive approach that integrates technological innovation, appropriate policies, and collaborative efforts across sectors. This research offers valuable insights for policymakers, industry professionals, and researchers as they work towards establishing a sustainable, fair, and resilient food system in the modern era.

The Resource Curse Across Economies: A Comparative Analysis of Developed and Developing Resource-Rich Countries

This study investigates the relationship between natural resource rents and economic growth, focusing on a diverse sample of developed and developing economies. Using panel data (1998–2021) and robust estimation methods, it examines the roles of institutional quality, governance, economic diversification, and global demand in shaping outcomes across varying contexts. The findings reveal that the impact of resource rents on growth is complex, differing by resource type, income group, and governance quality. The resource curse is not inevitable; its negative effects are most pronounced in oil-dependent countries with poor governance and limited diversification. In contrast, gas and mineral rents provide more stable growth opportunities when effectively managed. Strong governance and diversification are essential to mitigate risks and maximize the benefits of resource rents. While stable global demand minimizes the impact of fuel price fluctuations on growth, mineral price volatility hampers growth in high- and low-income countries but not in middle-income ones, reflecting varying levels of dependency and resilience. This study’s key contribution lies in addressing the existing gap in the literature by analyzing the impact of resource rents across a diverse set of countries, integrating both developed and developing economies. To our knowledge, only a limited number of studies use mixed samples that encompass both. By doing so, this study provides a more comprehensive understanding of the heterogeneous effects of resource dependence, highlighting the role of institutional quality and economic structures across varying levels of development