Governance Characteristics Research Articles

An Empirical Study on Acquisition, Resale and Retirement of Treasury Stocks: Based on The Corporate Governance Characteristics and ESG Performance

This study presents the results of an empirical analysis of companies listed on the Korean domestic stock market from 2013 to 2021, following the 2011 revision of the Commercial Code. This study investigates how a company's governance structure and ESG activities affect the repurchase, resale, and retirement of treasury stock, and how such actions impact the company's market valuation. The empirical analysis shows that various corporate governance variables, including ownership structure, influence treasury stock-related actions. The impact on company value varies, depending upon the level of corporate governance variables. A company's ESG activities primarily have a positive impact on the repurchase and retirement of treasury stock. Furthermore, our study reveals that when companies with relatively low ESG evaluation ratings repurchase and retire treasury stocks, their value increases. However, the resale of treasury stock had a negative impact on company value for both the high and low ESG evaluation rating groups.

지방정부 문화재정과 정책지향 관계 연구

South Korea's challenges of low birth rates and an aging population are progressing at the fastest pace compared to other countries, leading to significant societal issues due to rapid demographic changes. These problems are particularly severe at the regional level. To mitigate regional extinction, it is crucial to develop specific funding utilization strategies tailored to the conditions of region to enhance competitiveness. As population issues intensify, local governments are actively investing in the cultural sector to secure regional competitiveness.
 This study aims to analyze how cultural budget varies according to the characteristics of local governments with the assumption that local policy decision-makers allocate funds reasonably. We collected data on cultural budget, population, geography, and economic characteristics of 226 local governments nationwide. and empirically verified that policy orientation in cultural policy varies according to regional characteristics.
 The results showed that local governments located in the metropolitan area with a relatively low population decline rate had a higher culture budget allocation for welfare, while local governments located in provinces with a higher population decline rate had a higher budget allocation for development such as tourism and cultural heritage. Additionally, regions with a higher proportion of cultural arts budget showed a higher quality of life, while local governments with higher budget allocation for tourism had a statistically estimated correlation with residents' income. We hope that the results of this study provide valuable insights for understanding the cultural policies of regions facing a population crisis.

Risk governance and regulatory adjustments in the public commercial banks of OECD

PurposeThis study aims to explore the relationship between risk governance characteristics (chief risk officer [CRO], chief financial officer [CFO] and senior directors [SENIOR]) and regulatory adjustments (RAs) in Organization for Economic Cooperation and Development public commercial banks.Design/methodology/approachUsing principal component analysis (PCA) and regression models, the research analyzes a representative data set of these banks.FindingsA significant negative correlation between risk governance characteristics and RAs is found. Sensitivity analysis on the regulatory Tier 1 capital ratio and the total capital ratio indicates mixed outcomes, suggesting a complex relationship that warrants further exploration.Research limitations/implicationsThe study’s limited sample size calls for further research to confirm findings and explore risk governance’s impact on banks’ capital structures.Practical implicationsEnhanced risk governance could reduce RAs, influencing banking policy.Social implicationsThe study advocates for improved banking regulatory practices, potentially increasing sector stability and public trust.Originality/valueThis study contributes to understanding risk governance’s role in regulatory compliance, offering insights for policymaking in banking.

What Is Minimalist Governance?

Abstract “Informality” and “semiformality” are the primary characteristics of minimalist governance. The operation of minimalist governance assumes a boundary between state and society and some amount of autonomous space between them at the ground level. Whether in a traditional or modern form, minimalist governance stands in contrast to the formal, hierarchical bureaucracy of the state. Minimalism is a pragmatic approach to governance tailored to local conditions, a form of semiformal or informal government that emphasizes operational effectiveness over elaborate bureaucratic procedures. Since minimalist governance does not rely entirely on the hierarchical power of the state apparatus, this semiformal approach is simple and effective, hence its “minimalist” appearance. The key to solving the problem of formalism at the basic level of government lies in managing the relationship between “a thousand threads above” and “a single needle below.” Autonomy and self-governance must be granted to the basic level of the government so that party committees may fulfill their integrative political functions and their role in minimalist governance. Ultimately, this will allow the “needle” of grassroots organizations to connect with “a thousand threads above” while also penetrating deeply into local society. There is significant practical and theoretical importance in understanding the uniqueness of Chinese-style modernization, and the modernization of rural governance, from the perspective of “social foundations,” but to achieve this Chinese-style modernization we must learn from the West and from China’s own traditional and contemporary experiences.

Cash holdings, board governance characteristics, and Egyptian firms’ performance

Cash holdings, board governance characteristics, and Egyptian firms’ performance

The Impact of Liquidity and Corporate Efficiency on Profitability

This study aims to investigate and determine the trend and extent of the impact of a company's liquidity and efficiency on profitability. Research data is collected on the audited financial statements of Vietnam's top 100 listed companies. Regression models (pooled OLS, FEM, and REM) and necessary tests are used to select the appropriate analysis model. Model defects are overcome by GLS regression. The research results confirm the strong, positive impact of liquidity, company efficiency, and company growth rate on profitability. In addition, the research results also demonstrate a significant negative impact between financial leverage and profitability. This article is the first study to simultaneously address the effects of liquidity and corporate efficiency on profitability. Furthermore, it is the first empirical study applying GLS regression to analyze the impact of liquidity and corporate efficiency on the top 100 listed companies in the Vietnamese market. This market provides an ideal analytical framework because of its heterogeneity in terms of its history of origin and development and its political, cultural, social, and governance characteristics. To make the research results more general, future studies can expand the scope of the survey to all companies listed on the stock market. Doi: 10.28991/ESJ-2024-08-01-013 Full Text: PDF

Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

Coproduction, public sector innovation and governance: a systematic literature review

Purpose The purpose of this study is examined whether coproduction appears spontaneously in the literature on public sector innovation and governance, the citizens’ role in coproduction and the implication of citizens’ participation in the governance of innovation networks. Design/methodology/approach The review complied with preferred reporting items for systematic reviews and meta-analyses (PRISMA) protocol. The search was performed in the Ebsco, Scopus and WOS databases. The authors analyzed 47 papers published from 2017 to 2022. Thematic and content analysis were adopted, supported by MAXQDA. Findings The papers recognize the importance of the citizens in public innovation. However, only 20% discuss coproduction, evidencing the predominance of governance concepts related to interorganizational collaborations – but not necessarily to citizen engagement. The authors also verified the existence of polysemy regarding the concept of governance associated with public innovation, predominating the term “collaborative governance.” Research limitations/implications The small emphasis on “co-production” may result from the search strategy, which deliberately did not include it as a descriptor, considering the research purpose. One can consider this choice a limitation. Practical implications Considering collaborative governance as a governing arrangement where public agencies directly engage nonstate stakeholders in a collective decision-making process that is formal, consensus-oriented and deliberative (Ansell and Gash, 2007), the forum where the citizen is supposed to be engaged should be initiated by public agencies or institutions and formally organized, as suggested by Österberg and Qvist (2020) and Campomori and Casula (2022). These notions can be useful for public managers concerning their role and how the forums structure should be to promote collaboration and the presence of innovation assets needed to make the process fruitful (Crosby et al., 2017). Originality/value Despite the collaborative nature of public innovation, the need for adequate governance characteristics, and the importance of citizens in the innovative process, most studies generically address collaborative relationships, focusing on interorganizational collaboration, with little focus on specific actors such as citizens in the governance of public innovation. Thus, it is assumed that the literature that discusses public innovation and governance includes the discussion of coproduction. The originality and contribution of this study is to verify this assumption.

The impact of policy mix characteristics of multi-level governance on innovation output of the new energy vehicle industry in China

ABSTRACT In policy practice, policy mixes have become the main means by which governments promote economic transformation and development. It has been verified that different policy mixes have different and distinct impacts on innovation activities. We studied the impact of the policy mix characteristics of a multilevel government on innovation activities. We theoretically explored the impact of the consistency, balance, and comprehensiveness of policy mixes of the three policy tools promulgated by the multi-level government of China on the innovation output of the new energy vehicle (NEV) industry. Our results suggest that: (1) Improving the consistency, balance, and comprehensiveness of a policy mix can promote the innovation output the NEV industry. (2) As the complexity of policy mixes increases, balanced characteristics are the most stable in terms of promoting the innovation output of the NEV industry. Therefore, when the government implements new policies, the consistency and comprehensiveness of the policy mix must be emphasised.

Mass migration governance and openness toward refugees: Comparing Germany and Turkey

AbstractThis study seeks answers to the question: ‘Under what conditions do communities with migration experience in refugee‐receiving states become more open toward accepting more refugees and why?’. The research seeks answers to this question by examining the attitudes of individuals (N = 37) from Turkey who have been living in Germany for at least a year and who have sufficient familiarity with the characteristics of governance of mass migration in both countries. The findings suggest that the respondents are more pessimistic about the consequences of Turkey accepting more refugees in the future, while they are optimistic about the outcomes of the arrival of more refugees in Germany. This study posits that receiving communities' perceptions about the host state's regulatory and institutional capacity in managing mass migration and integration of refugees shape their attitudes toward the possibility of the influx of more refugees over time. The findings indicate that efficient mass migration governance in a receiving state is identified through four characteristics: (i) admission of educated refugees, (ii) proper refugee registration procedures, (iii) systematic integration processes, and (iv) effective monitoring and law enforcement mechanisms. The study concludes that local communities view public authorities as the key actors in managing the consequences of mass migration and establishing and sustaining good mass migration governance at the receiving state level is likely to facilitate positive attitudes towards accepting more refugees.

Governing The Power Of Neoliberalism Government With People's Economics In The Welfare Of The Community (Study Of People-Owned Shops Or Tomira In Kulon Progo District, Yogyakarta Special Region, Indonesia)

Objective: The aims of this research are; (1) to explore governing the power of a neoliberal government with a people's economic orientation in improving the welfare of society; (2) to describe and explore the characteristics of a neoliberal government with a people's economic orientation in improving the welfare of society; (3) Exploring the regional government context of Kulon Progo Regency which provides space for neoliberal government practices with a people's economic orientation.
 
 Theoretical framework: Barry Ferguson defines governing power as the government's actions related to the economy where the government has a monopoly over many activities, even though the government is only one competitor of economic activity apart from business actors and society (Ferguson 2020a). This research does not use the word governance but uses the word governing from Barry Ferguson, which places the term governing as the act of government monopolizing all forms of economic activity. According to David Harvey, neoliberalism is a form of government that supports the private property rights of each individual, the supremacy of law, free market institutions, and free trade (Hervey 2007). Rizal Ramli defines neoliberalism as an economic system and policy that prioritizes economic growth, not human development (Ramli 2014). Meanwhile, Kwik Kian Gie defines neoliberalism as an economic system that does not require government intervention (Gie 2022). In this research, neoliberal government with a people's economic orientation can be seen from; (1) a regional government policy model that prioritizes economic growth, not human development (Ramli 2014); (2) a government that does not use power to empower society (Eko 2022); (3) a government that prioritizes market mechanisms rather than a small economy with limited capital (Mubyarto 2014); (4) a government that does not make the people the owner of economic sovereignty and only makes the people the object of the market; (5) a government that does not use its power to protect small communities from the onslaught of liberal capitalism. Meanwhile, a people's economy is defined as an economic system that is more oriented towards human development such as community empowerment (Ramli 2014).
 
 Method: This research is exploratory qualitative research with a case study research approach. Exploratory qualitative research is considered a form of research that does not just describe cases that occur but also explores how the cases occurred (Hardani at al 2020). The case raised in this research is a People's Owned Store or ToMiRa in Kulon Progo Regency, Special Region of Yogyakarta which was transformed by the local government from an Alfamart and Indomaret franchise store into ToMiRa. Data was collected using observation techniques, in-depth interviews, focus group discussions (FGD), and document searches related to ToMiRa policies and operationalization in the research field. Data analysis uses interpretive techniques, where the data is analyzed using triangulation techniques, namely the technique of combining observation data, interview data, and document data (Abdussamad 2021).
 
 Results and conclusions: The results of this research found that; (1) the actions of the neoliberal government in Kulon Progo Regency, Special Region of Yogyakarta, are aimed at people's economics so that its expansion can be accepted by society at large; (2) in carrying out market expansion, neoliberalism which has a popular economic orientation uses the power of local governments to influence the community not to protest and reject ToMiRa; (3) the actions of the neoliberal government with a people's economic orientation, only using the jargon of People's Owned Stores (ToMiRa) as a strategy to gain public sympathy to obtain high electoral votes in the 2017 regional head elections; (4) regional government with a neoliberalism pattern with a popular economic direction prefers the route of economic growth rather than human development in improving the welfare of society.

Public Policies Making Process and Governance: A Case Study National Ministry of Cabinet Affairs, South Sudan

The study explained public policy as important tool for good governance. The emphasis is placed on what is public policies making process? As such public policy is well-defined as articulated by early philosophers, is a projected programe of goals, values, and practices. Also it is essential for the policy concept that there be a goal, objective, or purpose. Generally public policies is defined as plans in that they are general statements or understanding which guide or channel thinking in decision making. In this regard the research explained Public Policy Formulation Process that indicates stages, types of public policies, implementation, and evaluation of public policy. On the other hand the study consider governanceas the manner in which power is exercised in the management of country's economic and social resources for development. Furthermore, governance system as posted by early writers is also explained. At the same time the articulation include governance system and state nation, governance characteristics, and governance system in South Sudan. The study has considered, the discussion, analysis, and finding for the research data collected, in which all respondents has expressed their opinion about important of public policies in shaping good governance. Moreover the study has included the explanation of challenges facing governance system in South Sudan and suggested solutions, including recommendations for public policy implementation.

The Association Between Governance Mechanisms and Sustainability Assurance Levels: The Case of CAC 40 Firms

Purpose: Recently, there has been an increasing interest in corporate governance as well as in sustainability. However, the link between corporate governance and sustainability is still under debate. The current study provides evidence on whether sustainability assurance levels are linked to corporate governance mechanisms. Specifically, we examine the association between corporate governance mechanisms (ownership structure, governance characteristics), characteristics of the company, the type of assurance provider, and sustainability assurance levels in the French context. Methodology: We collected the necessary data about the CAC 40 firms from 2008 to 2018 and opted for an ordinal regression model with panel data. Findings: Results indicate that corporate governance mechanisms play a vital role in providing sustainability assurance levels. Most corporate governance mechanisms, especially the board size, the executive incentive compensation, the sensitivity of sectors, and the type of assurance provider have a significant impact on sustainability assurance levels. The findings of this study show that the board size has a positive association with the level of sustainability assurance, hence favoring the choice of a reasonable assurance level. On the other hand, the executive incentive compensation, the sensitivity of sectors and the type of assurance provider are negatively associated with the assurance level, hence implying the choice of a moderate level.Implications: The paper offers useful insights for firms, stakeholders, and other users of the reports, as they will have a deeper understanding of sustainability assurance practices. The size of the sample might be a limitation of this study.Contribution: This is the first study that empirically tests the association between governance mechanisms and sustainability assurance levels. Furthermore, this study contributes to the existing literature and highlights the impact of governance mechanisms on sustainability assurance levels.

Using Machine Learning to analyze ESG performance in Project-driven Sectors

Sustainability in project management is essential as stakeholders not only seek economic efficiency but also eco-friendliness, social effectiveness, and sound governance structure to successfully plan, manage, and implement projects. Therefore, it is important to explore key sustainability indicators that impact complex project dynamics. The aim of this research is to identify trends and characteristics of Environmental, Social, Governance (ESG), and financial performance of project-driven sectors by using machine learning techniques. This research investigates three project-oriented sectors (Information Communication and Technology (ICT), Engineering-Construction, and Service) that directly support United Nations’ sustainable development goals. Then, specific ESG performance and key financial performance of three sectors are analyzed in detail. This study also applies Categorical Boosting (CatBoost) machine learning modeling for analysis, and the Shapley Additive Explanation (SHAP) algorithm to explain the machine learning algorithm. This research provides stakeholders a roadmap for achieving ESG goals in project management and can help project-driven organizations compare, contrast, and improve their ESG performance for the future.

GOVERNANÇA DE ECOSSISTEMAS DE INOVAÇÃO EM PAÍSES EM DESENVOLVIMENTO: UM ESTUDO SOBRE O CONTEXTO DE SANTA CATARINA

ABSTRACT This study analyzes the governance characteristics of the Santa Catarina innovation ecosystem in southern Brazil, focusing on the Pact for Innovation program. This program was created to enhance collaboration within the ecosystem and requires appropriate governance features. Data collection involved semi-structured interviews, a documental analysis, and questionnaires applied to 41 organizations involved in the 240 actions of the program. Data analysis was conducted through thematic analysis and triangulation. As a result, we identified that the ecosystem’s governance contemplates a diversity of actors whose relations are guided by coordination mechanisms. Despite the existence of a central leadership, the governance approach encourages the protagonism of the actors in a decentralized way and low formality. However, program sustainability requires increased capacity to mobilize new orchestrators. This research underscores the need for empirical evidence in developing countries and offers insights for managers and policymakers committed to enhancing collaborative capacity in innovation ecosystems.

Influence of Board Governance Characteristics on Sustainability Accounting and Reporting in a Developing Country: Evidence From Nigeria Large Businesses

Even though the determinants of sustainability reporting have been highly studied, the influence of Board Governance characteristics on sustainability reporting has mainly remained understudied in Africa, especially Nigeria, despite the overwhelming Business opportunities in the country. This study, therefore, investigates the influence of Board Governance on sustainability accounting and reporting, drawing insights from large businesses listed in Nigerian stock exchanges. Using a sample of 167 reports drawn from three sources—annual reports, sustainability reports, and website over the period 2015 to 2020, this study employs content analysis to quantify three layers of sustainability disclosure and fixed effects regression estimation model to predict the influence of Board governance variables on sustainability reporting quality. Our results indicate that Board governance characteristics such as Board capacity, board independence and Board Incentives are significant factors that affect sustainability reporting quality. The results further suggest that although the number of directors on the board is positively associated with the quality of sustainability reporting, CEO duality is insignificant and has a negative association with the quality of sustainability reporting. This study provides evidence that setting up long-term incentive-based compensation affects sustainability reporting positively in developing countries, such as Nigeria.

Editorial: Coordination between financial reporting quality, investors’ utility function, social legitimacy, digitalization, and judicial independence.

The current issue is comprised of scholarly articles falling in the domain of a wide range of research themes, for example, financial market performance, investment strategies, corporate governance characteristics, financial reporting quality, corporate social responsibility (CSR), corruption, and judicial independence in the context of foreign direct investment (FDI). All the articles published in the current issue have highlighted interesting, diverse, and thought-provoking research problems.

Analysing expert advice on political decisions in times of crisis

This article analyses the relationship between expert knowledge and political decision-making during the COVID-19 pandemic in Denmark, Greece and the United States. Due to the swift spread of the COVID-19 virus across the globe, the management of the pandemic required urgent government responses. Our empirical findings enabled us to identify a new typology of different types of advice, from naked power to technocracy, including in-between modes of networking and interactions. We also demonstrate how systemic and governance characteristics affect expert-politics responses in the three countries. The findings demonstrate similar responses in Greece and Denmark, by contrast with the United States. We conclude by proposing a new research agenda for expert-politician relations during crises, which focuses on the role of experts in public sensemaking, which is particularly important in an era of recurring and overlapping crises.

Exploring the influence of women's leadership and corporate governance on operational liquidity: The glass cliff effect.

This research investigates the glass cliff effect and the positions held by women in leadership roles, focusing on their impact on operational liquidity. The study delves into the relationship between corporate governance attributes and operational liquidity in 60 non-financial companies listed on the Pakistan Stock Exchange during Covid-19. Utilizing Quine-McCluskey technique and fuzzy set Qualitative Comparative Analysis (fsQCA), it examines the combined effect of Women on the Board, Board Size, Ownership by Blockholders, Board Qualifications and Busy Directors on Operational Liquidity. The necessary condition analysis (NCA) emphasises that firms can operate without reliance on any particular variable taken in the study. The sufficiency analysis provided an expanded understanding of the three conditions leading to the same outcome both before and during the pandemic. This research highlights the significance of the glass cliff effect and emphasizes the pivotal role of women in effectively managing liquidity during times of crisis. Additionally, it provides valuable insights for policymakers regarding the impact of Covid-19 on the interplay between corporate governance characteristics and operational liquidity.

IT 플랫폼 기업의 ESG 경영이 소비자의 구매의도에 미치는 영향

As the global pandemic situation continues and abnormal climate conditions continue, ESG has received more attention, and the introduction of ESG management by IT platform companies has become active. Therefore, the ESG characteristics of IT platform companies will affect corporate image and consumer trust, and influence consumers' purchase intentions. This paper focused on the impact of ESG management of IT platform companies on consumer purchase intention. Therefore, based on previous research, this study classifies the characteristics of each ESG area into environmental characteristics, social characteristics, and governance characteristics, and presents two parameters, corporate image and consumer trust, to determine their impact on purchase intention. A corresponding research model was constructed. Samples were collected by means of questionnaires and empirical analysis was conducted using SmartPLS 4.0 and IBM SPSS 23.0 to verify the hypotheses. The following conclusion are drawn. First, ESG management activities, environmental, social, and dominant structural characteristics all have a positive impact on corporate image. H1 was adopted. Second, environmental characteristics do not affect consumer trust. thus, H2-1 was rejected. H2 was partially adopted. Third, corporate image has a positive impact on consumer trust. H4 was accepted.. Corporate image has a positive impact on purchase intention. H4 was accepted. Consumer trust has a positive impact on purchase intention, so H5 was adopted.