Governance Structures Research Articles

The impact of corporate governance on firms' propensity to innovate - multidimensional and cross-country analysis

The study examines the correlation between corporate governance ratings, a crucial element of the Environmental, Social, and Governance (ESG) index provided by Thomson Reuters, and companies' inclination towards innovation. Employing a cross-country analysis, the research explores how governance ratings influence corporate innovation decisions. The results reveal a positive association between corporate governance scores and the implementation of innovative practices. Notably, board effectiveness, commitment, vigilance, and compensation structure significantly impact firms' innovation levels. The study further demonstrates that the positive relationship between ESG ratings and innovation is particularly pronounced in companies with larger, more diverse boards, active audit committees, and well-structured compensation systems. This research enhances our understanding of how robust corporate governance frameworks can drive innovation by fostering transparency, accountability, and a positive work environment. Such governance structures mitigate risks, deter unethical behavior, and promote long-term corporate sustainability. Consequently, the study suggests that organizations should prioritize strong corporate governance practices to bolster their innovation capabilities. The findings underscore the pivotal role of corporate governance in shaping firms' innovative potential, contributing valuable insights to the intersection of governance and innovation in the corporate landscape.

Navigating ISO 20022 maintenance in a connected world: A vision for harmonisation

The implementation of ISO 20022 in payment infrastructures has been hailed as a paradigm shift towards seamless transactions, heralding flexibility for financial market infrastructures (MIs) and enabling the creation of bespoke ISO 20022 variants. The initial allure of this flexibility, however, led to an unintended consequence — a proliferation of variants with different timelines, versions and market practices. This fragmented landscape has introduced challenges for organisations seeking to achieve high levels of automated ‘straight-through processing’. Different variants affect end-users’ ability to automate reconciliation processes and complicates endeavours to establish and sustain a cohesive ISO 20022 future. As we navigate the intricacies of a globally interlinked financial ecosystem, the role of ISO 20022 maintenance has emerged as a linchpin in the seamless exchange of standardised financial messages. This paper emphasises the importance of streamlining the ISO 20022 environment and messaging life cycle to facilitate efficient maintenance processes, foster broader harmonisation and usher in an era of truly frictionless payments. In proposing this shift, the paper advocates for a transformative approach. It posits two opportunities: the establishment of a unified, industry-led governance structure and the definition of a common message template. These initiatives are envisioned as essential to harmonising the fragmented ISO 20022 landscape, offering a path for end-to-end interoperability across the diverse payment chain. While acknowledging the ambitious nature of these proposals and timelines, the potential benefits are significant. The proposed initiatives could lead to more efficient maintenance processes, enhanced interoperability and a shared framework for ISO 20022 payments. The industry faces a crucial choice — whether to embrace this ambitious evolution or settle for the status quo. The imperative is clear: achieving a more interoperable and harmonised future for ISO 20022 payments is not just an opportunity but a necessity for the industry’s continued growth, resilience and operational efficiency.

BOARD CHARACTERISTICS AND AUDIT QUALITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

The study investigates the effects of board characteristics on the audit quality of publicly traded listed consumer goods firms in Nigeria from 2013 to 2022. An ex-post facto research approach was used in this study. For data analysis, the panel regression technique was used in the study. The study's findings revealed that board independence and board financial expertise have a positive and significant effect on the audit quality of Nigerian listed consumer goods companies. However, board gender diversity had a negative and insignificant effect on the audit quality of Nigerian-listed consumer goods companies. The study concludes that boards with more independent members who are not influenced by management may improve the audit process efficacy. To improve audit quality, listed consumer goods firms should focus on retaining board independence and guaranteeing the presence of directors with significant financial experience. While the relationship between board gender diversity and audit quality is still uncertain, it is critical to promote diversity and inclusivity on corporate boards in order to build a more robust governance structure. Continuous monitoring and research in this area will contribute to a better understanding of the relationship between gender diversity and audit quality.

Governance and Efficiency in Brazilian Water Utilities: An Analysis Based on Revenue Collection Efficiency

This study analyzed the relevance of governance structure for efficient revenue collection by Brazilian water utilities (WUs). Data were collected from the National Information System on Sanitation (SNIS) for 127 Brazilian WUs, covering a balanced longitudinal panel from 2018 to 2022. The governance structures evaluated included ownership (public or private) and corporatization (publicly traded or not). We searched scientific databases and did not find any studies on the efficiency of specific WUs in collecting customer bills for services rendered and its relationship with this type of governance; thus, this is the main innovative contribution of this study to the literature. In the first stage, this study utilized the dynamic slack-based model (DSBM) to assess revenue collection efficiency. In the second stage, an econometric model with generalized estimating equation (GEE) was used to explain the efficiency. The findings revealed a global average inefficiency in revenue collection of 50.47%. Corporatization was linked to higher collection efficiencies, while ownership type was significantly linked with lower collection efficiency. Factors such as tariff accessibility, urbanization, and the COVID-19 pandemic also influenced efficiency. This study suggests that regulatory bodies should consider these insights to implement policies that prevent inefficiencies from affecting the tariff system for services.

Evaluating Nighttime Governance Structures: Implications for Urban Policy in Night Mayor and Consultative Body Models

The rise of night mayors and other nighttime governance bodies represents an emerging model of urban governance. Vibrant nightlife scenes have become central to the identity and economy of global cities. However, the complex needs of nightlife stakeholders pose unique governance challenges. In response, some cities have instituted specialized offices of night mayor to oversee nighttime economic policy. This goal of this article is to examine this solution as a unique governance approach and compare the roles of night mayors to other nighttime consultative bodies like councils, commissions, panels, and boards. Taking into account all kinds of utility derived from nighttime activities, externalities, and stakeholders needs, the author differentiates night mayors’ concentrated leadership from the broader representation of advisory panels. It turns out that night mayors provide centralized oversight, while councils offer grassroots expertise. By working together they can create holistic strategies tailored to nighttime economies.

Research on International Marine Pollution Control Issues: Based on the Fukushima Pollution Incident in Japan

The international marine environment has increasingly become a critical focus of global environmental concerns, with marine pollution worsening significantly. The Fukushima sewage incident in Japan has notably heightened awareness of marine environmental pollution, impacting the marine environment, economic development, food safety, and human health in surrounding countries, making marine pollution control an urgent priority. This paper analyzes the Fukushima pollution incident in Japan, reviewing the current status of international marine pollution control legal treaties and international cooperation efforts. It proposes new governance ideas grounded in climate change advisory opinions, emphasizing the need for innovative approaches to tackle emerging pollution challenges. Furthermore, the paper examines both theoretical and practical problems within the existing framework of international marine pollution control, identifying gaps and inconsistencies that hinder effective management. Based on this analysis, the paper offers comprehensive countermeasures and suggestions aimed at enhancing the efficacy of international treaties, improving coordination among nations, and strengthening the overall governance structure to better address marine pollution. This holistic approach is essential for ensuring the sustainable development of marine ecosystems and the long-term health and prosperity of human societies.

The Effect of Good Corporate Governance and Capital Structure on Firm Value with Financial Performance as an Intervening Variabel

With financial performance serving as an intervening variable case study of retail companies listed on the Indonesia Stock Exchange in 2019–2022, the goal of this research is to ascertain the impact of sound corporate governance and capital structure on firm value. There were forty-two retail companies in the study's population. Of the 42 companies that used the purposive sampling approach for sample withdrawals, 29 of them satisfied the sample requirements. Secondary data was obtained by obtaining the annual report of the firm via the website of the Indonesia Stock Exchange or the company itself, together with the documentation data gathering process. Using SmartPLS software, the partial least square (PLS) analysis of structural equation modeling, which is component- or variance-based, is combined with descriptive analysis to analyze the data. The findings demonstrated that capital structure and sound corporate governance both have an impact on a company's value. Financial performance is not able to mediate the relationship between excellent corporate governance and capital structure on company value, but neither do good corporate governance nor capital structure have any effect on financial performance.

Energy transition in the retail sector: Revealing decision-making behaviours for energy efficiency retrofits of Dutch shopping centres

Shopping centres hold significant energy retrofit potential in the retail sector. However, their complex multi-stakeholder governance structure complicates decision-making for Energy Efficiency Retrofits (EER). Although literature identifies some barriers linked to EER, they are often scattered and not identified within a process perspective that considers their contextual complexities. This study addressed this gap by examining stakeholders’ behaviours, barriers, and relations during EER decision-making processes, to detect stakeholders’ needs to catalyse the energy transition. Qualitative research was conducted on three representative Dutch shopping centres case studies. The cross-case analysis uncovered the decision-making process for EER and new barriers attributed to this building typology. Amongst other, detected barriers can be attributed to limitations with governmental and internal regulations, lifecycle conflicts, proposed interventions being out of scope, and existing technical challenges. The study also revealed causal relationships among stakeholders, showcasing varying interpretations of barriers and highlighting the roles of owners, property managers, and public authorities in overcoming them. Furthermore, the findings indicate the key role that different contextual variables play in the EER decision-making process, such as ownership type, governance structure, and leasing structure. This study offers insights and recommendations for shopping centre owners, property managers, and policymakers, to support them in navigating the energy transition of the retail building stock. Key recommendations include decentralizing decision-making, optimizing governance structure, streamlining sustainability advisors, and acknowledging the collaborative roles of property managers and policymakers in providing effective and holistic solutions.

Constructing a One Health governance architecture: a systematic review and analysis of governance mechanisms for One Health.

The integration of human, animal, and environmental health in the One Health framework is crucial for tackling complex health and environmental issues. Governance structures in One Health initiatives are essential for coordinating efforts, fostering partnerships, and establishing effective policy frameworks. This systematic review, registered with PROSPERO, aims to evaluate governance architectures in One Health initiatives. Searches in PubMed, Scopus, WoS, and Cochrane from 2000 to 2023 were conducted. Key terms focused on peer-reviewed articles, systematic reviews, and relevant grey literature. Nine eligible studies were selected based on inclusion criteria. Data synthesis aimed to assess governance mechanisms' functionality and effectiveness. Among 1277 sources screened, nine studies across diverse regions were eligible. An adapted framework assessed implementation mechanisms of international agreements, categorizing them into Engagement, Coordination, Policies, and Financial domains. The findings highlight the importance of effective governance, stakeholder engagement, and collaborative approaches in addressing One Health's challenges. Identified challenges include deficient intersectoral collaboration, funding constraints, and stakeholder conflicts. Robust governance frameworks are pivotal in One Health paradigms, emphasizing stakeholder engagement and collaboration. These insights guide policymakers, practitioners, and researchers in refining governance structures to enhance human-animal health and environmental sustainability. Acknowledging study limitations, such as methodological variations and limited geographical scope, underscores the importance of further research in this area.

CURRENT ASPECTS OF THE IMPACT ON THE FORMATION OF FINANCIALLY LITERATE BEHAVIOR OF RUSSIAN YOUTH IN THE CONTEXT OF SANCTIONS PRESSURE

The purpose of the study. Research of aspects of more literate behavior of young people in financial activities. The article examines the current aspects of the impact on the formation of financially literate behavior of Russian youth under the conditions of sanctions pressure. It is noted that in these conditions, the role of a sociologist is increasing in the need to provide various government structures with real information on various problems of society, and primarily in the financial sphere. The authors emphasize that “sustainable improvement of the quality and standard of living of citizens requires improving financial literacy and the formation of a financial culture, ensuring the financial well-being of citizens, their conscious use of financial products and services, reasonable financial decision-making, investment and risk management”. The work emphasizes that today the level of financial literacy and financial culture among young people is not at the proper level. At the same time, the financial culture of young people shows positive growth, and there are significant prospects for its further improvement. The article proposes a number of measures to improve the financial culture of young people, create a favorable environment for the development of optimal financial behavior of young people. Findings. The paper concludes that in order to form a full-fledged financially literate behavior of young people, it is necessary to develop not only financial literacy and financial culture, but also to contribute to the formation of a genuine value world in the process of personal socialization.

The ERMES chatbot: A conversational communication tool for improved emergency management and disaster risk reduction

The increased occurrence and severity of worldwide disasters, exacerbated by the impact of climate change, pose significant challenges to emergency management, calling for novel and more effective Disaster Risk Reduction (DRR) approaches. Despite the phenomenological differences of diverse hazards and the heterogeneity of local policies and governance structures, effective communication systems are needed to better manage the available resources in all phases of the emergency management cycle, especially in the case of cross-border events. In this work, we present the design, implementation, and validation of a novel tool for emergency management, i.e., the ERMES Chatbot: a mobile-based conversational communication system developed to facilitate real-time bidirectional communication between control centres, in-field forces, and citizens. The methodology used to create the ERMES Chatbot is grounded on the user-centred design approach, which entails end-user involvement in all key phases of the development, including the definition of the end-user requirements, the technical design, and the final validation of the proposed solution. The co-design approach involved several organisations belonging to the DRR domain, which includes a gamified experience for citizens and is iteratively validated through four in-field demonstration events based on realistic emergency scenarios with the involvement of emergency practitioners, volunteering organisations, and citizens.

The Influence of Environmental, Social, Governance and Capital Structure Performance on Financial Performance

This study aims to analyze the influence of Enviromental, Social and Governance (ESG), and capital structure on financial performace. This type of research is quantitative research with secondary data sources. The population in this study is financial sector companies listed on the Indonesia Stock Exchange (IDX) in 2018-2022. The sample selection method used in this study is purposive sampling wich undergoes an outlier process, so that the final sample obtained is 10 companies. The result of the study shows that silmutaneously the variables of Enviromental, Social and Governance (ESG) and capital structure have an effect on financial performance. The result show that companies had high ESG scores and low capital structures can improve their financial performance. Then partially the Enviromental, Social and Governance (ESG) variables have an influence on financial performance. The result show that companies with high ESG scores have the potential to improve the company’s financial performance. Furthermore, the capital structure variable has no effect on financial performance. The result show that Bank companies with a large amount of debt cannot affect the company’s financial performance.

Executive power discrepancy and corporate ESG greenwashing

Originating from the theory of organizational hierarchy, the concept of power discrepancy among corporate executives has garnered scholarly attention due to its roots in the unequal distribution of authority and influence within the upper echelons of management. This paper explores the realm of corporate ESG greenwashing, a deceptive practice masking genuine environmental, social, and governance responsibilities, and empirically investigates the influence of executive power discrepancies on such practices. Findings indicate a direct correlation between increased executive power discrepancies and a heightened propensity towards ESG greenwashing. Furthermore, the impact of this discrepancy is notably more pronounced in non-state-owned entities, corporations operating in highly marketized regions, and those with substantial financing constraints. This study contributes to the nuanced understanding of how disparities in executive power shape corporate ESG conduct, enriches the discourse on corporate governance structures, and fosters the evolution of theories related to internal governance and social accountability, offering vital practical insights.

Empowering Night Shift Through Building a Stronger Foundation for Shared Governance.

A 341-bed Magnet® designated facility expanded its shared governance structure by incorporating a night shift council. The formation of this council allowed for more robust communication and collaboration between disciplines among night shift staff while increasing engagement scores. The council has established many initiatives to support night shift staff that can be adapted for use by other hospitals and health systems interested in expanding their shared governance structure.

Barriers to and Facilitators of Artificial Intelligence Adoption in Health Care: Scoping Review.

Artificial intelligence (AI) use cases in health care are on the rise, with the potential to improve operational efficiency and care outcomes. However, the translation of AI into practical, everyday use has been limited, as its effectiveness relies on successful implementation and adoption by clinicians, patients, and other health care stakeholders. As adoption is a key factor in the successful proliferation of an innovation, this scoping review aimed at presenting an overview of the barriers to and facilitators of AI adoption in health care. A scoping review was conducted using the guidance provided by the Joanna Briggs Institute and the framework proposed by Arksey and O'Malley. MEDLINE, IEEE Xplore, and ScienceDirect databases were searched to identify publications in English that reported on the barriers to or facilitators of AI adoption in health care. This review focused on articles published between January 2011 and December 2023. The review did not have any limitations regarding the health care setting (hospital or community) or the population (patients, clinicians, physicians, or health care administrators). A thematic analysis was conducted on the selected articles to map factors associated with the barriers to and facilitators of AI adoption in health care. A total of 2514 articles were identified in the initial search. After title and abstract reviews, 50 (1.99%) articles were included in the final analysis. These articles were reviewed for the barriers to and facilitators of AI adoption in health care. Most articles were empirical studies, literature reviews, reports, and thought articles. Approximately 18 categories of barriers and facilitators were identified. These were organized sequentially to provide considerations for AI development, implementation, and the overall structure needed to facilitate adoption. The literature review revealed that trust is a significant catalyst of adoption, and it was found to be impacted by several barriers identified in this review. A governance structure can be a key facilitator, among others, in ensuring all the elements identified as barriers are addressed appropriately. The findings demonstrate that the implementation of AI in health care is still, in many ways, dependent on the establishment of regulatory and legal frameworks. Further research into a combination of governance and implementation frameworks, models, or theories to enhance trust that would specifically enable adoption is needed to provide the necessary guidance to those translating AI research into practice. Future research could also be expanded to include attempts at understanding patients' perspectives on complex, high-risk AI use cases and how the use of AI applications affects clinical practice and patient care, including sociotechnical considerations, as more algorithms are implemented in actual clinical environments.

Women who money: the impact of female board members and institutional ownership on firms’ financial performance

Purpose This study aims to explore the relationship between board diversity and financial performance, examining how the presence of women on corporate boards affects metrics such as profitability. In addition, this study investigates how corporate governance and ownership structure influence gender diversity policies and the appointment of women to boards. Design/methodology/approach Two hypotheses were proposed and following regression models were developed for data analysis. The sample for this study consists of companies listed on the Taiwan Stock Exchange in five years (2015–2019). The data was extracted from the Taiwan Economic Journal Taiwan database with the final data set comprised 9,379 firm-year observations. Findings This study indicates a positive association between board diversity and financial performance. Moreover, the relationship between female directors on the board and financial performance is stronger for firms with a higher percentage of institutional investors. Originality/value By highlighting how gender-balanced boards and engaged institutional shareholders improve profitability, this study suggests that actively recruiting women directors and pursuing governance reforms that empower shareholders can pay dividends for Taiwanese companies. The results make an important contribution to the limited research on diversity's impact within Asian corporate settings.

Resilience of developing economies to external shocks: empirical evidence from CEMAC countries

PurposeThis study aims to investigate the effects of three significant events – the 1994 CFA currency depreciation, the 2008 Global Financial Crisis (GFC), and instances of political coups – on the relationships between FDI inflow, economic growth, and governance within the Central African Economic and Monetary Community (CEMAC) countries. It seeks to evaluate how these events influence the linkages between FDI, economic growth, and governance, to aid the understanding of responses to external shocks and internal political disruptions.Design/methodology/approachThe study employs a panel Vector Autoregression (VAR) analysis using data from 1990 to 2019 by exploring the dynamic relationships among FDI inflow, economic growth, and aggregate governance indicators within the CEMAC sub-region. The analysis was conducted utilizing the EViews software package, facilitating robust examination through the introduction of the Bayesian VAR to facilitate the interpretation of parameters and the data.FindingsThe results indicate that, contrary to initial hypotheses, growth and governance do not emerge as determinants for attracting FDI within the CEMAC sub-region. However, governance stands out as a crucial determining factor for economic growth. Furthermore, the study suggests that the 1994 CFA currency depreciation, the 2008 GFC, and instances of political coups did not significantly impact FDI, growth, and governance within these countries. Despite the potential vulnerability of the CEMAC countries to external shocks, the effects of these events on the dynamics of FDI, economic growth, and governance were not apparent. Notably, political instability, as evidenced by coups, emerges as a significant factor shaping the interactions between FDI, growth, and governance in CEMAC countries.Research limitations/implicationsThese findings have significant implications for policymakers and stakeholders in the CEMAC countries. Understanding that governance has a central role in driving economic growth places great importance of prioritizing governance reforms to foster sustainable development. Moreover, the identification of political instability as a key determinant affecting the relationships between FDI, growth, and governance emphasizes the need for political stability and effective governance structures to attract and sustain FDI inflows as well as foster economic growth.Originality/valueThis study contributes to the existing literature by offering insights into the linkages between FDI, economic growth, governance, and external shocks within the CEMAC sub-region. By examining the specific impacts of the 1994 CFA currency depreciation, the 2008 GFC, and political coups on these dynamics, the study provides original perspectives on the resilience of CEMAC countries to external and internal disruptions.

Leveraging Banking Financial Performance through Shari’ah Board’s Characteristics: Empirical Investigation

This study examines the impact of board characteristics on the financial outcomes of Shari'ah-compliant banks in Pakistan, with a particular focus on supervisory attributes such as board size, frequency of meetings, and independence in decision-making. The empirical analysis utilizes data from all Islamic banks of Pakistan over the period from 2021 to 2023, a timeframe chosen to evaluate financial performance in the context of post-pandemic economic challenges. Employing panel data analysis through multiple regression models, the study reveals that bank size does not have a significant effect on the financial outcomes. In contrast, the board size plays a crucial role in influencing financial success. Specifically, boards that are composed of independent members that meet regularly for strategic evaluations tend to achieve better financial performance. These results emphasize the importance of enhancing Shari'ah-compliant governance structures, particularly in the context of economic recovery. The implications of these findings suggest that to improve the decision-making process, Islamic banks should focus on quality and independence in board composition and prioritize frequent strategic assessments to improve financial outcomes.

Research on Relationship Between Governance Structure and Corporate Performance of Chinese Technology Companies

In the post-pandemic age of 2023, the economy is in recovery. Despite the distinctive qualities of technology firms, such as quick development and high levels of innovation, they face problems such as economic downturns and funding issues. As a result, the corporate governance structure is critical to guaranteeing the firms' long-term viability. The purpose of this article is to examine 252 publicly traded technology companies and investigate the link between corporate financial performance and corporate governance arrangements. This article used Ordinary Least Squares (OLS) analysis to look at the link between board independence, Chief Executive Officer (CEO) duality, ownership concentration, and return on equity (ROE). The regression findings indicate a negative association between ROE and the proportion of independent directors. However, there is no substantial association between the duality of ROE and the CEO, and ROE has a U-shaped relationship with ownership concentration. The study's findings imply that corporate executives and regulators should adopt an effective monitoring mechanism to ensure the impartiality and reliability of independent directors' oversight. To ensure strong financial performance, organizations should maintain appropriate levels of independent director percentages and stock concentration.

Strategic Adaptation and Governance in Disruptive Market Environments: Frameworks and Case Studies

Background: Adaptive governance methods have become critical for organizational resilience and sustainability in today's turbulent and disruptive market settings. This article examines the important issue of altering governance systems to effectively deal with disruptive market dynamics. Objective: The article aims to look into how adaptive governance might increase an organization's competitiveness and agility in the face of rapid market changes. Methodology: This study applies a mixed-methods approach, investigating multiple case studies of organizations from various industries. The study looks at how adaptive governance frameworks are implemented, namely their structures, procedures, and decision-making mechanisms. In-depth information is acquired utilizing both qualitative and quantitative data collection techniques, such as surveys, interviews, and performance indicators. Results: The results highlight the importance of adaptive governance in fostering flexibility, innovation, and responsiveness in organizational contexts. This study uses case studies to demonstrate the association between greater resilience to market changes and adaptive governance approaches. It focuses on critical components of effective adaptive governance, such as strategic flexibility, inclusive decision-making, and iterative learning procedures.Conclusion: The article emphasizes the need of adaptive governance as a key strategy for organizations dealing with fluctuating market situations. Implementing adaptive governance structures allows organizations to preserve long-term competitiveness, encourage innovation, and respond proactively to market uncertainty. The study provides useful insights for professionals and decision-makers, underlining the necessity of adaptable governance in developing organizational resilience and future-proofing measures in the face of volatile market conditions.