Governance Practices Research Articles

Industrial Robot Use and Corporate Real Earnings Management: Evidence from China

Industrial robots (IRs) are becoming an increasingly important production technology in the global manufacturing industry. Using Chinese A-share listed manufacturing companies as a research sample, this study identifies that using IRs significantly restricts corporate real earnings management (REM). Specifically, IRs reduce information asymmetry, improve product market performance, and enhance the incentive effect of executive compensation, thereby weakening executives’ self-benefit motives and increasing the cost of implementing REM. These findings underscore the role of IRs in corporate governance, allowing for a better understanding of robots’ microeconomic consequences and guiding future corporate governance practices.

Filling empty vessels: accountability, responsibility, and corporate leadership

Purpose This paper seeks to identify a rounded understanding of two fuzzy terms in wide but muddled use in guiding corporate leadership: accountability and responsibility. Both have deep resonance discussions of strategy and corporate affairs, but their often-confused meanings both inform actions and impede understanding. Each has normative implications for the practice of corporate governance, and yet each, like an empty vessel,[1] leaves practitioners with an unhappy sense of knowing they have a use but not knowing what to do with them. Design/methodology/approach This essay examines the varied uses of these terms in academic literature and practitioner discussions, exploring their conflicting meanings through lenses of philosophy, literary writing, and management studies to show how each, in their flux, overlap and diverge. Findings The article analyses themes obscured by these muddy waters and clarifies them by speculating on how their ambiguity demands reflexive, thoughtful action and interaction between the parties in absence of clear hierarchy of command or greater authority. How meaningful that interaction is questionable, when the words are so full of meanings without an iterative process of understanding. Originality/value Given the prevalence of the ambiguities is usage, clarifying terms is not a realistic option. Instead, this essay proposes that insofar as these concepts reflect abilities, they represent our ability to embrace their ambiguity in a philosophically pragmatic way, and in so doing be able to act accountably and responsibly.

Board Characteristics and Internal Control Risk Management in Urban Investment Companies: A Case Study of Guangxi Urban Investment Group

This study explores the relationship between board characteristics and internal control effectiveness and risk management practices in Chinese urban investment companies. Using a mixed research method combining questionnaire surveys and case studies, an empirical study was conducted on 104 urban investment companies, with the Guangxi Urban Investment Group as a case study. The study found that board characteristics are significantly and positively correlated with internal control effectiveness and risk management practices. Among these, the impact of board expertise is the most significant, followed by board independence and diversity. Board size is positively correlated with internal control effectiveness, but has no significant relationship with risk management practices. The study also found that company size has a moderating effect on the relationship between board characteristics and governance practices. This study provides theoretical and practical guidance for the corporate governance of urban investment companies, emphasizing the importance of improving the professionalism, independence and diversity of the board of directors. The study suggests that urban investment companies should adjust the composition of the board of directors according to their size and complexity, and adopt a comprehensive governance framework to integrate internal control and risk management practices. Future research can further explore the relationship between board characteristics, governance practices and company performance, as well as the impact of emerging technologies on the governance requirements of urban investment companies.

Strengthening public health professionals in policymaking in the Eastern WHO European region

Abstract Background The collaborative research between EUPHA and WHO aimed to explore factors impacting public health professionals’ (PHP) involvement in health policy processes in the Eastern WHO European Region, addressing barriers, enablers, and capacity-building needs. Methods Utilizing a mixed methodology, the study employed document analysis, scoping review, and interviews to triangulate data, with the document analysis focusing on 4 published Essential Public Health Operations Self-Assessment Reports, the scoping review analysing 15 key articles, and 5 semi-structured interviews providing additional insight from key country stakeholders. Results Core findings revealed significant barriers impeding PHPs' participation in policy processes. Among others, these included limited intersectoral collaboration, shortage of skilled public health (PH) personnel, financial resource constraints and inadequate governance structures. Conversely, several enablers were identified, such as a positive trend in increased intersectoral collaboration and innovative governance structures during Covid-19, the development of more trained PHPs and the utilization of International Health Organisations. The two main capacity building needs reported were the importance of modernizing PH education and promoting intersectoral collaboration. Conclusions This study offers a preliminary overview of how PHPs' involvement in health policy processes in these countries can be enhanced: More intersectoral collaboration, updated PH education curricula and trainings, and governance re-design building on positive trends seen during the pandemic. Following actions are recommended: Creation of an international platform for cross-sectoral PH communication & exchange, direct support for universities and PH researchers, development of comprehensive PH trainings, assistance in forming or strengthening national public health associations and identification & sharing of effective local governance practices. Key messages • This research identifies barriers to PHPs’ participation in Eastern WHO European Region's health policy processes, while highlighting enablers like increased collaboration during Covid-19 to build on. • Recommendations to harness the enablers include clear actions such as creating an international public health platform for interaction and exchange or build-up of national public health associations.

Subjective-objective standard of the director’s behavior

The article examines the standard of behavior of a director, with which the behavior of a director held liable for causing losses to a legal entity is compared. By drawing on comparative legal material (England, USA, France, and Germany), analysis of Russian legislation and judicial practice, it was concluded that the courts strive to introduce a subjective component even into a standard that is formulated at the legislative level as objective. This is explained by the activities of the director in the business environment, which now is impossible to fully understand and identify all cause-and-effect relationships (unlike the activities of other persons in relation to whom a special regime of liability has been established – medical workers, notaries, attorneys, appraisers). A set of measures is proposed (specification of the agreement with the director, exclusion of liability in crisis situations under the agreement, “nudging” to the standard at the level of judicial practice and best practices of corporate governance, use of information disclosure and qualification requirements), which will clarify and balance the standard of conduct of the director.

Corporate Governance Practices of Changampally Ayurveda Vaidyasala - A Study from Employees’ Perspective

Corporate governance is the arrangement in which companies are directed and controlled (OECD, 2004). Each stakeholder is important to every company and Corporate Governance is the driver of stakeholders' satisfaction (Rejeb, 2012). Among the stakeholders of a company, employees are the most critical stakeholders as they hold direct and long-term contact with the productivity of every company (Lynch Fannon, 2006). This study intended to understand employees' perceptions of Changampally Ayurveda Vaidyasala's corporate governance practices. The famous Changampally family was invited from Tulunadu to perform in the famous Mamanka festival in Thirunavaya, and later, they were forced to settle in Thirunavaya. (http://www.changampallyayurveda.com/ayurveda-medicine-manufacturing.php, n.d.). They are considered one of the oldest and most renowned Ayurveda practitioners specializing in AsthiMarma Chikilsa. It is an Ayurvedic manufacturing company with a GMP certification and is well-known for its employee maintenance system. This study went through their existing corporate governance practices like transparency, fairness, accountability, and responsibility of the company from the employees’ perspective. It is found that the company hasfavourable transparency, fairness, accountability, and responsibility policies towards employees and itsoverall corporate governance practices are found exemplary.

Aligning Enterprise Risk Management into Risk Disclosure of the IPO Prospectus

This concept paper aims to review the potential of aligning Enterprise Risk Management (ERM) elements into risk disclosure of the IPO prospectus. This concept paper explores the potential for aligning ERM elements within the risk disclosure section of IPO prospectuses. The paper emphasizes the regulatory requirement of the risk disclosure in the prospectus. It highlights the importance of risk disclosure in investment decision-making. It contends the best practices of risk disclosure in the IPO prospectus for the benefit of investors and also reinforces the issuing company’s commitment to effective risk management and corporate governance. By incorporating ERM principles, the prospectus not only improves transparency but also strengthens the issuing company’s commitment to effective risk management and corporate governance. The key research objective is to evaluate the integration of ERM into IPO risk disclosures, with particular emphasis on regulatory compliance, investor decision-making, and the enhancement of corporate governance practices. This research endeavors to fill the gap in the literature by enhancing the ERM elements in the existing practices of IPO disclosure.

Exploring the Impact of Board Structure and Governance Practices on Integrated Reporting Quality: CSR as A Moderating Variable

Presentation report integrated (IR) in Indonesia is still naturally voluntary and partly big studies previously conducted in developed country capital markets, and studies conducted in emerging country markets Still seldom as well as companies that voluntarily choose to adopt IR possible to own Lots of flexibility in matter disclosure information. Purpose study this is to influence a positive board of directors and Governance Company to quality reporting moderated integratedcorporate social responsibility (CSR). Study this uses agency and stakeholder theory which emphasizes that governancecompanies can increase quality reporting integrated that can strengthen connection with the existence of CSR and companies obliged to give report as information to stakeholders. Retrieval technique sample uses method purposive sampling. Sample in study this is the incoming companythe LQ-45 index is listed on the Indonesia Stock Exchange (IDX) with as many his observations as many as 175 observations. For the test, the hypothesis used analysis regression multiple and MRA using application stata. The results of the research show the board of directors and governance companies are influential in the quality of reporting integrated and corporate social responsibility (CSR) strengthens the connection between the board of directors and governance companies in the quality of reporting integrated.

Establishing the Effect of Democratic Governance on the Performance of Public Hospitals in Selected Counties in Kenya

Background The study critically evaluates the effect of democratic governance on the performance of public hospitals in Kenyan counties, following the 2010 Constitution that introduced devolved governance. This shift aimed to enhance local decision-making, accountability, and service delivery, specifically in the health sector, by empowering county governments. Democratic governance principles, such as transparency, accountability, and citizen participation are critical for addressing long-standing challenges like inequitable resource distribution, underfunding, and inefficiencies in public health services. This study explored the effect of democratic governance on the performance of public health hospitals in Kenya.  Methodology A mixed-methods approach was employed combining quantitative data from surveys with qualitative insights from interviews with county officials. Factor analysis was used to assess the relationship between democratic governance indicators - transparency, accountability, citizen participation, and public health service performance. Qualitative data, were gathered through interviews and content analysis of responses from county officials complemented the quantitative findings.  Results The study revealed that while democratic governance positively influences the performance of public hospitals in delivering health services in Kenyan counties, there are discrepancies in implementation across counties. Most respondents agreed that public participation and transparency in decision-making are strong, but the accessibility of financial records and county documents remains limited. Factor analysis confirmed that democratic governance significantly impacts health service outcomes, but qualitative findings indicated moderate transparency in financial matters, with only 8.3% of respondents rating transparency as high.  Recommendations To improve the performance of public hospitals in the delivery of health services, county governments should enhance the accessibility of public records, strengthen financial reporting and transparency, and foster deeper citizen engagement in governance. Improved oversight mechanisms and better governance practices are essential for leveraging the benefits of devolved governance.

Integrating Environmental, Social and Governance (Esg) Principles into Organisations

The term ESG, which stands for Environmental, Social and Governance, has gained significant traction in the business world. A company’s dedication to ESG reflects its awareness of both the positive and negative impacts it has on society and the environment, influencing not only the business itself but the entire ecosystem around it. Organisations that embrace the ESG framework recognise that adopting best governance practices leads to positive outcomes across all sectors. This approach helps minimise the environmental impact and fosters a more equitable world, while maintaining sound administrative processes and sustaining profitability. Incorporating ESG factors into operations is essential for ensuring long-term sustainability, compliance and competitiveness. By focusing on environmental stewardship, fostering positive social impacts and maintaining strong governance structures, organisations can minimise their negative externalities, meet regulatory demands, and appeal to a growing number of ESG-conscious stakeholders. The main aim of this article is to analyse the ESG principles, and present examples of integrating ESG in large and SMEs companies. These organisations were chosen as examples of good practice: Maersk, Nestlé, Toyota, Baltic Marine Bunker and Klaipėdos Nafta. The companies in this article were chosen to show a diverse range of industries and approaches to ESG implementation.

Interlinking financial stability regulation and governance in German professional soccer: contribution and implications

IntroductionThis study explores the integration of financial stability regulation in professional soccer within the framework of sport governance, focusing on the German context. The research examines how financial regulations influence key governance principles such as accountability, transparency, and sustainability, while also addressing the challenges posed by the dynamic nature of professional soccer.MethodsA qualitative methodology was employed, using focus group discussions with nine experts, including representatives from soccer clubs, auditing firms and other relevant stakeholders. The discussions aimed to capture diverse perspectives on the impact of financial stability regulation on governance practices within the German soccer league and clubs.ResultsThe findings reveal that financial stability regulation is effective in promoting financial discipline and accountability at both league and club levels. However, the study also identifies challenges, such as the need for greater harmonization of regulatory frameworks across different levels of professional soccer and the potential benefits of implementing incentive mechanisms within the financial stability regulation to improve governance at the league and club levels.DiscussionThe study underscores the importance of a multi-dimensional approach to financial stability regulation, considering political, systemic, and organizational dimensions. It highlights the potential for improving governance through the adoption of independent governance models and more practical applications of governance principles. Future research could further explore these areas, offering insights that could enhance the effectiveness of financial regulation in professional soccer and potentially other sport contexts.

ATUAÇÃO DO GESTOR PÚBLICO NO COMBATE A CORRUPÇÃO

The involvement of public officials in corrupt practices is highly detrimental to public management, as resources that should be allocated to social development are diverted, the efficiency of public services is compromised, and market competition is distorted. Preventing and combating corruption are imperative not only to protect public coffers, but also to ensurepolitical stability and sustainable economic development through state action. Society's intolerance to ethically reprehensible behavior can go beyond public administration, recognizing acts that involve only private individuals as corrupt, and it is important to reflect on strategies that aim to mitigate the effects of this endemic evil, which is corruption. The research achieved its objectives by identifying the challenges faced by public managers, highlighting the need for integrated approaches aimed at public management in order to achieve effective actions regarding the performance of public managers in the face of corruption. The role of public managers in combating corruption is a subject of great importance for public administration and civil society. The overall objective was to evaluate the performance of these managers, investigating the strategies, challenges and contributions to preventing and combating corruption. The methodology used for data collection was bibliographic research, based on the theoretical framework of literature review, selecting and analyzing articles published between 2020 and 2024, using databases that included academic platforms such as PubMed, Scopus, Web of Science and Google Scholar. The analysis of the articles revealed a variety of topics, including debates on legislation, governance practices, compliance, transparency, accountability, among others. The results highlight the complexity of the topic and the need for integrated and effective approaches to combat corruption in the public sector.

Problems of Good Governance in Managing Indonesia’s Borderland: The Case of Entikong Subdistrict

The present study explores the good governance processes of border management in Entikong Subdistrict. The Entikong Subdistrict in West Kalimantan is a priority district that receives special attention from Indonesian central and local governments. The Entikong border post started operating in 1989, making it the first land border in Indonesia. Nevertheless, despite its aged history and many development efforts within the area, the economic growth and welfare of the border community remained stagnant. The data for this article were collected through a field work in Entikong for four months in 2022 in which we conducted observation, interviews, and focus group discussion with local residents and government officers. This study reveals that good governance became the focal issue explaining Entikong’s lack of development by providing two problems in the border development at Entikong: 1) the government’s inconsistency on the road widening project and 2) the complexity of governance and bureaucracy. This paper further elaborates on the essence of locality in good governance practices while simultaneously addressing the authority division problems and communication towards the demands of the local community. This study argues that better public communication patterns should be implemented to avoid misunderstandings within the community and increase the participation of local citizens, government, and civil society in the development process of the border area.

Investor relations and corporate governance in the global energy sector: A theoretical review of best practices and their application in emerging economies

Investor relations and corporate governance are critical components in ensuring the sustainable development and operational efficiency of companies within the global energy sector. This theoretical review explores the best practices in investor relations and corporate governance, particularly focusing on their application within emerging economies. The global energy sector is highly capital-intensive, requiring robust governance structures to manage risks, ensure transparency, and align the interests of stakeholders. Effective investor relations strategies foster trust, provide timely and accurate information, and enhance shareholder engagement, all of which are essential for securing long-term investments in energy projects. Corporate governance, on the other hand, ensures accountability, compliance with regulatory frameworks, and ethical management practices. The review highlights best practices in corporate governance, including the establishment of independent boards, strong leadership, risk management frameworks, and the importance of environmental, social, and governance (ESG) criteria in decision-making processes. In terms of investor relations, strategies such as proactive communication, regular financial disclosures, and engagement with both institutional and retail investors are identified as key to maintaining investor confidence. In emerging economies, where energy needs are rapidly increasing, the application of these best practices presents both challenges and opportunities. Regulatory frameworks in these regions are often evolving, and companies must navigate complex political and economic environments while adhering to global standards. This review discusses how emerging markets can benefit from adopting globally recognized governance and investor relations practices to attract foreign investment and foster sustainable energy development. The theoretical insights presented offer a comprehensive understanding of the interplay between investor relations and corporate governance in the energy sector. Additionally, this review underscores the importance of adaptability and innovation in applying these best practices to the unique contexts of emerging economies.. Keywords: Investor Relations, Corporate Governance, Global Energy Sector, Emerging Economies, Best Practices, ESG Criteria, Stakeholder Engagement, Transparency, Risk Management, Sustainable Energy Development.

Corporate Governance in Nigeria: Evolution, Regulatory Frameworks and Challenges

Aims: Undoubtedly, good corporate governance is critical for economic growth and development. In Nigeria, corporate governance has undergone a considerable revolution, driven by regulatory reforms, global standards as well as the need to strengthen corporate institutions. This review explored the evolution of corporate governance practices in Nigeria and the operating environment of the Nigerian Stock Exchange highlighting the milestones, regulatory frameworks and key challenges inhibiting the corporate sector. The review emphasized the roles of the regulatory agencies including the Securities and Exchange Commission (SEC), Financial Reporting Council of Nigeria (FRCN), Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Pension Commission (PENCOM) as well as the Nigerian Communications Commission (NCC) in enforcing governance codes and principles. Study Design: It is a theoretical review that explores developments in the corporate governance landscape in Nigeria. Place and Duration of Study: The place of study is Nigeria and the duration is 1960 to 2024. Methodology: The study examined policy documents exploring different codes and mechanisms of corporate governance from inception to date. Results: While notable progress has been made through the introduction of corporate governance codes, mechanisms and regulatory oversight, challenges such as corruption, insider abuse and enforcement of governance policies remain prevalent. Conclusion: The review underscored the need for continuous improvement in corporate governance given its role in promoting transparency, accountability, increasing stakeholder awareness as well as stronger enforcement to ensure good governance practices and sustainable economic growth.

Electronic governance in advancing sustainable development goals through systematic literature review

E-governance has become a crucial element in transforming government institutions globally. In the digital era, governments are increasingly adopting information and communication technology (ICT) to improve efficiency, transparency, and public participation in decision-making processes. This article conducts a systematic literature review (SLR) of studies from 2018 to 2023, examining the intersection between e-governance and the Sustainable Development Goals (SDGs). Through a rigorous inclusion and exclusion process, 52 articles were identified, focusing on the relationship between e-governance and SDGs. This study aims to highlight critical trends and knowledge gaps in the current literature and offers insights into how e-governance can contribute to achieving SDGs. Additionally, it provides policy recommendations and suggests future research directions to enhance governance practices. While this research significantly advances understanding of e-governance’s role in sustainable development, it is limited by its reliance on a single database and narrow search terms, which may constrain the comprehensiveness of the findings. Expanding the scope of future research to include multiple databases and broader search terms is recommended to provide a more holistic view of the field.

Corporate Governance: Exploring Key Concepts, Mechanisms, and Historical Evolution

Corporate governance involves several key concepts that help define its scope and purpose. Though review of key corporate governance concepts and historical evolution is widespread in the extant literature, detailed review across the globe is limited. Motivated by this dearth, this study reviewed these concepts and explored how firms rely on them to implement effective corporate governance. The study employed documentary and descriptive research methods to review concepts of corporate governance, systems, mechanisms and historical perspectives around the world. Our study discovered that understanding internal controls helps ensure compliance, minimize risks and safeguard the firm’s assets. Similarly, the study discovered that executive compensation structures help align management interests with shareholder value and external oversight through auditing and regulation which provides an unbiased assessment of the firm’s financial reports. Our historical perspective of corporate governance highlighted significant milestones that have shaped its evolution. Importantly, these include reports and acts aimed at addressing corporate scandals and improving governance practices. We also discovered that to improve corporate governance standards worldwide, multilateral organizations like the Organisation for Economic Cooperation and Development (OECD) among others have played a number of roles in developing international guidelines and codes of best practice. Further, the study explored the dynamic nature of corporate governance in response to evolving economic, social and technological trends. The study concluded that understanding the concepts, systems, mechanisms and historical perspectives of corporate governance is essential for firms and stakeholders to maintain transparency, accountability and sustainable performance.

New Practice of Environmental Governance in China

New Practice of Environmental Governance in China

The new private urban governance: Vestiges, ventures and visibility

Despite the growth, prevalence and influence of private urban governance, scholarship that explores the intimate workings of these manifold and mutating forms remains limited. While these private ventures carry forward elements from the past, the landscape of urban governance has nonetheless undergone profound transformation. Over the past few decades, the global expansion and influence of private governing ventures have reshaped how cities are managed, organised and experienced. This special issue on the New Private Urban Governance examines the constantly evolving modalities of private governance (i.e. business improvement districts/areas, condominium/strata corporations, gated communities, POPS and others) in a global context. Organised around new, interrelated themes of vestiges, ventures and visibility, this issue comprises case studies, syntheses of longstanding empirical projects and novel theoretical/conceptual interventions into political and spatial practices, knowledges and technologies of these privately governed realms. Focused on the spatialisation of politics, vestiges reflects the idea that while neoliberal forms of private urban governance continue to proliferate, they rely and build upon, rather than fully replace, earlier, more public governance practices, logics and spaces. Ventures emphasises that the private and market-oriented thrust of urban governance is heavily predicated on the protection and extraction of value and the intensifying financialisation of urban landscapes and life. Visibility highlights how governing technologies render private urban governance visible and in doing so highlight the politics of space. These three themes together expose the workings of the new private urban governance while invigorating further explorations of this complex phenomenon.

Ethnicity: A Trojan Horse for the Perpetuation of Armed Civil Conflicts in Africa

Abstract Purpose: The prevalence of armed conflicts in Africa seems commonplace, with little possibility to their end. This study aims to challenge a narrative that seem to consider ethnicity, or ethnic differences as the main causes of armed civil conflicts in Africa. This study argues that while ethnicity might play a role in conflict formation, ethnicity is simply a Trojan horse that is impishly presented as the main cause of armed conflicts in Africa. Design/Methodology: Data were collected from both primary and secondary sources. To evaluate the ethnicity vs. conflict nexus more conscientiously, this study provided two case examples: Ethiopia and Kenya, each providing distinct political trajectories. Findings: The study finds that ethnicity is not the main cause of armed conflicts in Africa; rather, the main causal factors are embedded in bad governance practices by political elites and their cronies. Notable is the practice of politics of power grab and marginalisation of certain groups to achieve Machiavellian ends. The additional causal factor is tied to external imperial exploitative motives of looting Africa’s natural resources, often using African puppets, bagmen and traitors of their own homeland. Thus, a combination of bad local governance practices and external economic interests is mainly what has led to a surge in armed civil conflicts in Africa. Originality/Value: The novelty of this study is that it challenges conventional political standpoints on the causes of ethnic-related conflicts and the solutions needed to end/reduce them. The study has achieved this by pushing the cloak of appreciating the scope and scale of Africa’s armed conflicts by advancing the argument that conflict management solutions lie inward rather than outward through the utilisation of local or homegrown conflict resolution mechanisms. Such local mechanisms must focus on addressing bad governance practices. The current penchant of relying on international or foreign mediatory systems as solutions is done merely at the behest of global politicking and, as such, only provides cosmetic solutions, hence themselves responsible for those protracted ethnic-related conflicts.