Government Enterprises Research Articles

Financial performance analysis: A case study of industrial enterprise governance

This study explores the financial resilience of an industrial firm, emphasizing the vital significance of financial analyses in ensuring sustained operational viability. It presents a strategic framework for enduring prosperity through a thorough examination of financial statements and operational efficiency, highlighting the indispensable role of rigorous financial scrutiny in navigating contemporary business landscapes for sustained success across industries and economies. The study empirically investigates the efficacy of the margin vs turnover model through ratio analysis methodologies applied to the company’s financial data. It reveals notable fluctuations in gross profit margins, spanning from 11.51 percent to 33.79 percent, and estimated asset turnovers, ranging between one and 20.6 percent, throughout the years 2019–2022, offering insights into the financial dynamics of the entity under scrutiny. Ensuring sustained success necessitates consistent attention to industry trends, enhancement of operational efficiency, and adherence to financial discipline, as evidenced by satisfactory ratios in borrowing, asset-to-liability, and interest coverage on the balance sheet, which also presents avenues for improvement.

Mediating effect of Access to Finance in the relationship between Entrepreneurial Orientation and Performance of Women-Owned MSME in Nigeria

This study investigates the mediating effect of access to finance in the relationship between entrepreneurial orientation and MSME performance of women businesses in Kaduna State, Nigeria. To achieve this purpose, a sample size of 356 owners and/or managers who operate businesses in the Kaduna State and are registered in the Government Enterprise and Empowerment Program (GEEP) 2.0 were selected. The study employs a multi-stage sampling technique, incorporating Likert scale-based questions for data collection. Data analysis involves Partial Least Squares Structural Equation Modelling (PLSEM) using Smart PLS 4 and the results indicate a positive significant effect of entrepreneurial orientation on MSME performance of women businesses, suggesting that higher levels of entrepreneurial orientation are linked with enhanced performance. The Mediation analysis reveals that access to finance mediates the effect between entrepreneurial orientation and MSME performance of women businesses. The study recommends targeted financial support programs and enhanced financial inclusion to improve access to finance for women entrepreneurs. While acknowledging limitations, the research underscores the importance of entrepreneurial orientation and financial access in fostering the MSME performance of women businesses, providing valuable insights for policymakers, practitioners, and academics.

The effect of political influence on corporate social donations: Evidence from party-building reform in China

As a new exploration of corporate governance in China's non-state-owned enterprises (NSOEs), the effect of "Party Building into Articles of Association" (PBAA) in the decision-making of NSOEs has not yet been verified. Based on hand-collected data on PBAA in NSOEs, this paper investigates the impact and constraints of PBAA on decision-making in NSOEs by using the external event of corporate donations during the COVID-19 pandemic. The results show that PBAA has embedded the party organization into the corporate governance system of NSOEs, affecting the decision-making of NSOEs effectively, thus boosting the social donations of NSOEs during the epidemic period. Meanwhile, the extent of PBAA is constrained by the original level of corporate governance and entrepreneurial identification. These findings remain robust after controlling for possible endogeneity issues. In addition, further research suggests that the more detailed the content of PBAA is, the higher the probability of substantial donations in epidemic situations in NSOEs.

Social Investment Programme and Livelihood of the Vulnerable: A Focus on Nigeria Post COVID-19 Pandemic

Introduction: In an effort curb the effect and the spread of the COVID-19 pandemic, several countries’ governments took firm decisions and actions to ensure that the pandemic was contained before vaccines were developed including the closure of sea, land, and airport borders, banning all gatherings, closure of schools, and all forms of gathering, social distancing as well as locking down their economies to restrict vehicular and human movement. Nigeria was one of the most affected African countries, the Government therefore adopted strategies to minimize the effect of the lockdown on the citizens which included the distribution of relief materials and the re-engineering of its social investment programme that was earlier established in 2016, targeting the vulnerable people including the youths, children, and women. However, lack of transparency, and accountability of the funds by the assigned government personnel have been highly reported. Therefore, this research aimed at carrying out an in-depth investigation and evaluation of the social investment programmes on the livelihood of the vulnerable in Nigeria.Methodology: The descriptive survey method was adopted as the research design for the study. The primary data from strategic community leaders who are privy to information on all financial and material support provided to any member of their communities were generated. Seventy-nine (79) communities were studied across all six geopolitical zones in the country using a structured questionnaire. The data generated were analysed using simple percentages, mean, and standard deviation.Results: The results for N-power programme, conditional cash transfer (CCT) programme, government enterprise and empowerment programme (GEEP), the home-grown-school feeding programme (HGFP) were established. The obtained results in general demonstrated a low and a moderate impact or effect of the government social programmes on the livelihood of the targeted Nigerians (vulnerable). This was evident enough across all the results discussed below with a low mean value which is a clear indication of the misappropriation, little or no transparency, dishonesty and corruption involved by the assigned government agencies or officials to carry out these tasks.

Applying the Hierarchical Analytical Process to Enterprise Governance Goals for Value Creation

The creation of value directly depends on Corporate Governance (CG) and Governance of IT (GIT) as these present the company as transparent, secure, and sustainable to shareholders and stakeholders, thereby establishing greater compliance with the rules, reducing risks, and generating a better competitive position. This work integrates the two governances through the prioritization of the criteria of benefits, risks, and resources to create value. Using the Analytic Hierarchy Process, an important research question is answered related to the priorities in CG and GIT goals that create highest value for the company. The analyses have been generated through a Decision Support System with specific software. The results show that the criteria of optimization of risks and resources are in dispute for the maximum importance in a framework of enterprise governance and long-term sustainability relative to the criterion of benefits generation. The decision alternatives found to have the highest priority were those related to system failures, customers loss, and operational and staff productivity.

Strategic risk management of innovative programs in the context of corporate governance of trading enterprises

Strategic risk management of innovative programs in the context of corporate governance of trading enterprises

Relation-based governance, financial crisis shock, and economic growth in China

The relationship between relation-based governance and economic growth has drawn much academic attention; however, previous studies have not fully recognized the causal effect between them from the perspective of development stages. Based on government–enterprise relations, this study first defines relation-based governance by the days enterprises deal with the government. It takes the shock of the 2008 global financial crisis as a quasi-natural experiment to investigate the impact of relation-based governance on China's economic growth with the generalized difference-in-differences approach. Using panel data of Chinese cities from 2003 to 2018, we find that after the shock of the global financial crisis, as China shifted from an extensive development stage to an innovation-driven development stage, relation-based governance significantly hindered economic growth and cities with a stronger dependence on relation-based governance exhibit decreasing economic growth. Further analysis reveals that the key mechanisms involve excluding rule-based governance and weakening enterprise innovation respectively.

Environmental regulation and de-zombified governance of heavy polluting enterprises: Quasi-natural experiment of the China's New Environmental Protection Law

Removing backward production capacity and clearing out zombie enterprises is crucial to realize the carbon peaking and carbon neutrality goals. However, as a command-control environmental regulation policy, whether the New Environmental Protection Law (NEPL) can guide heavy-polluting enterprises to achieve green transformation and get rid of the zombified risk remains unknown. Our article applies the difference-in-difference (DID) method to explore the impact of the stricter environmental regulation policies on the de-zombification of heavily polluting enterprises in the context of the implementation of NEPL in China. The results show that the implementation of NEPL significantly reduces the zombified risk of heavy-polluting enterprises. The results were valid by a series of robustness tests of propensity score matching, common trends test, placebos test, conducting double clustered standard errors to industry and province level, eliminating other policy interference, ruling out reverse causation, easing the potential endogeneity problems, and controlling enterprise's internal management level. Furthermore, there is a time lag in NEPL policy, which requires a long-term mechanism. Moreover, the NEPL can promote enterprise de-zombie governance through the mechanism of market competition and market allocation. The effects of the NEPL are heterogeneous due to the nature of enterprise property rights, enterprise scale, industry radiation capacity, regional development level, and internal management capacity. This article provides policy implications for developing countries to promote de-zombified governance of their economic systems and defuse risks of green transition.

Towards Sustainable Development: Investigating the Heterogeneity and Driving Factors of Green Total Factor Productivity in Coal Enterprises

Understanding the heterogeneity and driving factors of green total factor productivity (GTFP) in coal enterprises can provide guidance for policy design regarding the sustainable development of coal in the future. In contrast to previous research at the macro level, we adopt and extend the data envelopment analysis method to measure and quantitatively decompose the GTFP of coal enterprises, examine inter-enterprise heterogeneity at multiple levels, explain the effects of the key driving factors and moderating factors of GTFP in theory, and subsequently conduct empirical testing using data obtained from 639 coal enterprises in China. The results indicate that there is significant inter-enterprise heterogeneity in GTFP in terms of enterprise scale, enterprise growth stage, government–enterprise collusion (GEC), and regional differences. The enterprise scale and enterprise growth stage have significantly positive effects on GTFP, while GEC has a significantly negative effect on GTFP. Technological progress, scale efficiency, and pure technical efficiency have moderating effects on enterprise scale, enterprise growth stage, and GEC. The results have valuable policy implications; it is necessary for the government to allocate significant resources towards thoroughly examining the potential effects arising from the heterogeneity of GTFP among coal enterprises, to weaken control over the aggregate target, and to strengthen the use of market-oriented policy instruments.

Corporate governance and performance of state-owned enterprises in a least developed economy

Purpose: The main objective of the study was to investigate how corporate governance affects the performance of state-owned enterprises (SOEs) in a least developed economy.Design/methodology/approach: Both primary and secondary data from nine state-owned companies that operated between 2001 and 2016 were analysed in the study. The investigation used a quantitative methodology. Fixed effects, random effects and generalised method of moments (GMM) estimations were used to conduct regression analysis.Findings/results: The findings show that corporate governance characteristics affect SOE performance in a least developed economy. The performance of SOEs is influenced favourably by board structures, director tenure, reduced government ownership and leverage. Conversely, increased state ownership leads to subpar performance. The study also reveals that the presence of civil servants and directors with political affiliations in government-controlled companies has a negative effect on enterprise value.Practical implications: The use of multiple case studies to investigate SOEs in their natural setting has given some insights for both professional managers and policymakers interested in developing corporate governance frameworks to improve SOEs value in least developed economies, particularly in sub-Saharan Africa, even though the results are limited in terms of statistical generalisation because the study was based on a single country.Originality/value: The study fills a gap in the literature about how SOE performance is affected by corporate governance in least developed nations, where such research is underdeveloped.

Analysing influence of shareholder decision on green innovation knowledge sharing by fuzzy set qualitative comparative analysis combined evolutionary game theory

This article is based on the mixed ownership reform, with energy enterprises as the research object, and constructs a fuzzy set qualitative comparative analysis game framework for path optimization in complex systems. Using fsQCA and game theory from the perspective of knowledge sharing, reasonable assumptions are made for the sharing of green innovation knowledge between state-owned and non-state-owned shareholders in energy enterprises, providing policy support and institutional guarantee for the sharing of similar green innovation knowledge in multiple industries, to some extent, it facilitates the exchange and flow of green innovation knowledge among different enterprises, providing the optimal path for complex systems. This article can draw the following conclusions: 1. Government led, government enterprise driven, and enterprise led are the three major influencing paths for promoting green innovation knowledge sharing. The final trend of stable gaming among different types of shareholders depends on sharing profits. 3. The fuzzy set qualitative comparative analysis game framework has certain universality.

How does low-carbon city construction drive enterprise green governance? A complete chain mediation model

Purpose In confronting the challenge of climate change and progressing towards dual carbon goals, China is actively implementing low-carbon city pilot policy. This paper aims to focus on the potential impact of this policy on enterprise green governance, aiming to promote the reduction and balance of carbon emissions. Design/methodology/approach Based on the panel data of China's large-scale industrial enterprises from 2007 to 2013, this paper uses the Difference-in-differences (DID) method to study the impact and path mechanism of the implementation of low-carbon city pilot policy on enterprise green governance. Heterogeneity analysis is used to compare the effects of low-carbon city pilot policy in different regions, different enterprises and different industries. Findings The low-carbon pilot can indeed effectively enhance corporate green governance, a conclusion that still holds after a series of robustness tests. The low-carbon city pilot policy mainly enhances enterprise green governance through two paths: an industrial structure upgrade and enterprise energy consumption, and it improves green governance by reducing enterprise energy consumption through industrial structure upgrade. The impact of low-carbon city pilot policy on enterprise green governance shows significant differences across different regions, different enterprises and different industries. Research limitations/implications This paper examines the impact of low-carbon city pilot policy on enterprise green governance. However, due to availability of data, there are still some limitations to be further tackled. The parallel trend test in this paper shows that the pilot policy has a significant positive effect on the green governance of enterprises. However, due to serious lack of data in some years, the authors only selected the enterprise data of a shorter period as our experimental data, which leads the results to still have certain deficiencies. For the verification of the impact mechanism, the conclusions obtained in this paper are relatively limited. Although all the mechanism tests are passed, the reliability of the results still needs to be further tested through future data samples. In addition, as the pilot policy of low-carbon cities is still in progress, the policy can be tracked and analysed in the future as more data are disclosed, and further research can be carried out through dimensional expansion. Practical implications Low-carbon city pilot policy plays an important role in inducing the green governance of enterprises. Therefore, policy makers can continue to strengthen the construction of low-carbon city pilots by refining pilot experience, building typical cases, actively promoting pilot policy experience, expanding pilot scope and enhancing the implementation efficiency of pilot policy nationwide, which will contribute to the optimization and upgrading of the regional industrial structure at the urban level and will provide experience and reference for the synergistic implementation plan of pollution reduction and carbon reduction. Social implications The impact of the low-carbon city pilot policy on enterprise green governance not only exists in two separate paths of urban industrial upgrading and enterprise energy consumption but also exists in a chain transmission path from macro to micro. The authors find that the effect value of each influence path is different, and there is an obvious leading influence path for the role of enterprise green governance. Therefore, in the process of implementing a low-carbon city pilot policy, policies should be designed specifically for different mechanisms. Moreover, complementing and coordinating several paths should be advocated to give full play to the green governance effect of enterprises brought by different paths and to further expand the scope of industries and enterprises where policies play a role. Originality/value To the best of the authors’ knowledge, for the first time, this paper connects macro mechanisms with micro mechanisms, discovering a macro-to-micro transmission mechanism in the process of low-carbon city pilot policy affecting enterprise green governance. That is, the low-carbon city pilot policy can facilitate industrial structure upgrading, resulting in reduced enterprise energy consumption, ultimately enhancing enterprise green governance.

Corporate governance in SMEs: a systematic literature review and future research

PurposeThe purpose of this study is to examine the corporate governance of small and medium enterprises (SMEs) through a systematic literature review.Design/methodology/approachThe review was conducted by analyzing 19 published studies in the field, leading to the identification of 14 journals and 40 authors. The relationship between corporate governance mechanisms and various aspects of SMEs’ performance was analyzed. The characteristics of corporate governance were classified into five categories: board, ownership, CEO, audit and age.FindingsThe review found a direct relationship between corporate governance mechanisms and various aspects of SMEs’ performance, including innovation, internationalization, auditing and risk of failure. The study also highlights the need for future research to adopt a behavioral perspective, to shift focus from identifying responsibilities to examining governance processes and to use nonlinear models and qualitative methods to effectively analyze the interrelated nature of the phenomena under study.Research limitations/implicationsThe limitations of the review include the limited number of studies available for analysis, as well as the fact that most of the empirical research was based on evidence from European countries, with only a few papers focusing on other countries, such as the USA, China and Ghana.Originality/valueThe results of this review provide valuable insights for researchers and practitioners in the field of corporate governance in SMEs. The findings provide a foundational basis for further research in the area and highlight the need for future studies to adopt a behavioral perspective and use nonlinear models and qualitative methods.

Access mechanism, good governance and assessment process of private enterprise in construction industry in China: Basis for process improvement framework

Access mechanism, good governance and assessment process of private enterprise in construction industry in China: Basis for process improvement framework

Human Capital, Social Capital And The Role Of Goverment In Ground Coffe SMEs In Tanah Datar Regency

This research aims to describe the conditions of human capital, social capital, and the role of the government in ground coffee small and medium enterprises (SMEs) in Tanah Datar Regency. The research methodology employed a survey approach, using cross-sectional data collected from 104 respondents through questionnaires and interviews. The research variables included human capital, social capital, and government role. Qualitative analysis was used for this purpose. The study found that ground coffee processors in Tanah Datar Regency possessed good human capital, supported by effective training participation and substantial knowledge. Social capital was also relatively high among coffee processors due to strong relationships and norms within the community. However the role of the government in supporting the performance of ground coffee businesses was perceived to be low, both as a regulator, facilitator, and catalyst.

Transformasi Digital InsurCo dengan Merancang Pengelolaan Risiko Teknologi Informasi Menggunakan Framework COBIT 2019 IT Risk Management Focus Area

Rapid advancements in Information Technology (IT) play a vital role in fostering innovation within a company. Previous research has successfully identified the significance of IT Governance and Management (ITGM) in the process of Digital Transformation (DT). However, a more comprehensive analysis is needed to understand the role of IT risk management in supporting such changes, particularly through a case study on the insurance company InsurCo. This study employs the Design Science Research (DSR) method, utilizing interview data and the COBIT 2019 IT Risk Management Focus Area framework to design an IT risk management approach that supports InsurCo's DT. Capability assessments, gap analysis, potential improvements, improvement designs, roadmap development, and impact estimation of implementation have been executed on seven ITGM components. InsurCo, being a State-Owned Enterprise, is bound by the regulation PER-2/MBU/03/2023 concerning the Guidelines for Governance and Significant Corporate Activities of State-Owned Enterprises. Additionally, the Financial Services Sector Master Plan 2021-2025 highlights the acceleration of DT. The prioritized ITGM objectives required by InsurCo are derived from three design factor determinations: focus areas, design mechanisms, and ITGM mechanisms concerning DT, resulting in the following prioritized ITGM objectives: APO12 Managed Risk, EDM03 Ensure Risk Optimization, and DSS04 Managed Continuity. There is an estimated average capability increase of 3.57% across these three ITGM objectives. The research outcome presents a recommended design for the seven components of the governance system, aiming to enhance the IT risk management capability index within InsurCo. This study contributes to a deeper understanding of the concept of prioritizing IT risk management to support organizational digital transformation, specifically providing practical implications for InsurCo to bolster the success of their strategic programs, and benefit the insurance industry.

Improvement of Hierarchical Byzantine Fault Tolerance Algorithm in RAFT Consensus Algorithm Election

Currently, blockchain technology is not only gaining momentum in the financial industry but also showing promising developments in other sectors. Due to its suitability for various societal needs, an increasing number of non-financial institutions are expanding the scope of blockchain services beyond finance to areas such as healthcare service management and enterprise governance. The core of a blockchain system lies in consensus, which plays a crucial role in its performance and security. The PBFT algorithm is a widely used fault-tolerant consensus algorithm. However, it suffers from issues like high consensus latency, low throughput, and poor performance. In recent years, the HBFT algorithm has addressed these concerns. This paper proposes an improved HBFT blockchain consensus algorithm tailored for large enterprises and non-financial institutions with multiple independent functions. The goal is to achieve more efficient data management and election strategies that are both more secure than PBFT and more efficient than HBFT. Leveraging the enhanced HBFT consensus algorithm ensures stability and efficiency in the consensus and verification processes between organizations. Additionally, it enables the efficient management of data and value creation in the application context.

Operational and economy-wide impacts of compound cyber-attacks and extreme weather events on electric power networks

The growing frequencies of extreme weather events and cyber-attacks give rise to a novel threat where a malicious cyber actor aims to disrupt stressed components of critical infrastructure systems immediately before, during, or shortly after an extreme weather event. In this paper, we initiate the study of Compound Cyber–Physical Threats and develop a two-stage framework for the analysis of operational disruptions in electric power networks and economy-wide impacts under three scenarios: a Heatwave, a Cyber-attack, and a Compound scenario when the Cyber-attack is timed with the Heatwave. In the first stage, we use a bilevel optimization problem to represent the adversarial rationale of a cyber-attacker in the upper level. In the lower level, we model disruptions in the electric power network using an optimal power flow model. In the second stage, we couple the disruption of electricity supply with a Computable General Equilibrium model to elucidate the impacts on all economic sectors. For the New York Independent System Operator, we find that a 9% demand increase in a Heatwave may not lead to unserved load. The cyber-attack can lead to 4% of unserved electric load in Long Island, while the Compound scenario can increase unserved electric load in Long Island to 12% and affect almost 198,000 customers. Our results show that the activity of state and local government enterprises can decrease by 37% in the Compound scenario. We conclude that the vulnerability of federal, state, and local government enterprises to electricity disruptions can affect a broad range of populations.

Investigation of enterprise economic management model based on fuzzy logic algorithm

With the development of modern society and economy, modern business models have changed. Enterprise management is no longer the main function, which requires new management concepts to coordinate production and operation and create new management models. Corporate economic management is one of the main tasks of corporate governance. In order to improve corporate governance, the effective corporate economic evaluation model must be established. The advantage of fuzzy logic algorithm is that it can effectively express fuzzy data and is easy to understand, which is more transparent. The application of fuzzy logic algorithm in the research of enterprise economic management can fully reflect the advantages of fuzzy logic algorithm and improve enterprise governance. In this paper, the fuzzy logic algorithm was used to study the economic management model of enterprises. This paper first introduced the enterprise economic management model, including the definition, characteristics and shortcomings of the enterprise economic management model. The performance evaluation methods of enterprise economic management were introduced, including the clarity of performance evaluation objectives, the optimization of performance evaluation means and the feedback of performance evaluation results. Finally, the fuzzy logic algorithm was used to evaluate the performance of enterprise economic management, and the indicators and performance evaluation model of enterprise economic management were established. In the experimental part, the fuzzy logic algorithm was used to evaluate the economic management of four enterprises. The experimental results showed that Enterprise A had the highest ability to evaluate the economic management of enterprises, and the comprehensive evaluation result of economic management was above 0.9, so it had a very high enterprise economic management ability. The application of fuzzy logic to the study of enterprise economic management could directly show the advantages and disadvantages of the enterprise economic management model through quantitative analysis of the enterprise economic management model. This enabled enterprises to understand the current economic management situation and improve it based on the facts, which helped enterprises to increase their economic management ability.

Is this Sustainability Development Framework Motivation to a Multi-National Enterprise?: Attesting Corporate Governance in China

Background and Aim: The global economic crisis highlights the importance of corporate governance in large enterprises for profit protection and sustainable development. China faces challenges in implementing this framework, focusing on efficiency, effectiveness, and regulatory mechanisms. Materials and Methods: This paper is an academic paper. The author has collated and analyzed the various aspects of the notion of corporate governance, ranking the most significant aspects in descending order. Results: Sustainable business management in large enterprises in China involves corporate governance across five dimensions: structure, process, ethics, competence, wisdom, eco-efficiency, and sustainability report. This approach creates long-term added value for owners and shareholders by managing risk in economic, social, and environmental dimensions. Organizations must adapt strategies and work systems to maintain a competitive advantage and meet stakeholder needs. Conclusion: Sustainable business management in China involves corporate governance across five dimensions, focusing on structure, process, ethics, competence, wisdom, eco-efficiency, and sustainability report, ensuring long-term value and meeting stakeholder needs. China’s large enterprises provide high returns, contribute to society, and foster trust, transparency, and economic, social, and environmental dimensions, benefiting China’s future.