High-quality Governance Research Articles

Technology Challenges in E-Service Accessibility

E-governance faces many technological challenges that common enterprise often would not expect. These challenges arise out of the very nature of these systems. E-governance has the capacity to provide high-quality government services to citizens and businesses, irrespective of their status, and bringing transparency, speed, reliability, and consistency in handling governance as whole. Due to technological problems in the actual implementation of the solution, E-government solutions cannot reach the masses. E-government services are in their infancy stage in many developing countries. Currently, many E-government services are acting as passive agents and delivering static information from government to citizens rather than acting as an active agent and hold two-way communications. This paper discusses various problems that come in the path of the proliferation of E-government services.

The hidden transformation: the changing role of the state after the collapse of communism in Central and Eastern Europe

This article reviews the state's role in the transition economies of Central and Eastern Europe. Among the countries, Poland is perceived as the leader because it was the first economy to emerge from the decline following the transition, as well the only EU member state to survive the crisis without a recession. This success is often attributed to the high quality of government. However, we show that this popular perception is false and that state malfunctions on numerous fronts may soon impede Polish growth prospects. In Poland, the only bright spot is the quality of the financial supervision, which should serve as a role model for other countries. We attribute the malfunctions to the EU accession period that resulted in an unchecked growth of the government and contributed to the weakening of political and legal institutions. Copyright 2011, Oxford University Press.

A comparison of corporate versus government bond funds

We examine four separate classifications (high quality corporate, general corporate, government Treasury, and general government) of investment grade bond funds over the 1994–2009 period. We verify that distinct differences exist in investment styles across the classifications. We also document significant differences in performance as corporate funds outperform government funds by a risk adjusted average of 8 to 53 basis points on an annual basis depending on the model used. The performance differences are not strictly a function of expenses and are robust to alternative evaluation metrics. An examination of cash flows to the funds indicates that investment dollars are driven by the differences in risk adjusted performance.

Export drivers of small enterprises in the United Arab Emirates

The aim of this exploratory research is to shed light on the characteristics of small business enterprises in the United Arab Emirates (UAE) when selling their products in global markets. The study includes management perceptions as to why these firms are venturing across borders; a factor contributing to both successes and failures, in addition to their performance at the main locations of their activities. After studying a sample of 109 small business enterprises, it was concluded that ambitions for greater profits coupled with market sizes abroad are the main reasons for seeking to sell in international markets. Weak partnerships, financial difficulties, a lack of motivation, and poor knowledge of global standards are key influences negatively impacting on the ability to sell abroad. The researchers concluded that there were no ill effects as a result of cultural issues on a firm’s intent to go global; but high quality products, price competitiveness, and government support were found to be important success factors in their activities. Keywords: export; global market; small and medium enterprises; investments; SMEs; e-globalized economy; e-globalization (Published: 30 August 2011) Citation: Annals of Innovation & Entrepreneurship 2011, 2 : 7677 - DOI: 10.3402/aie.v2i2.7677

Quality of Government: What You Get

In development policy, international organizations have shifted their focus to the importance of good governance and sound institutions. The theory behind this is that only with a high quality of government (QoG) can a country reap the benefits of economic growth and social development. We review the research behind this policy shift and offer a first benchmark statistical analysis. The first section contains a review of the conceptual discussion of what QoG means. Second, we present four salient approaches pertaining to the outcomes of QoG: the debates concerning QoG and democracy, economic growth, corruption, and the rule of law. The third section uses insights gained from these debates to focus on the policy outcomes of QoG—its effects on social well-being, public health, and environmental sustainability. We conclude by discussing possible pitfalls in future research on QoG and development.

Institutions and Human Progress: An Analysis of International Pooled Data

This study investigates the impact of the components of economic freedom (Economic Freedom of the World Index, EFW) on improvements in well-being using pooled data of 105 countries spaced at 5-year intervals between 1990 and 2000. The EFW as well as other control variables are regressed on the log-odds ratios of the Index of Human Progress (IHP), a measurement of progress constructed by the Fraser Institute, and its components. Extreme bound analysis demonstrates that countries with a higher quality of government, well-defined property rights, sound money, limited trade restrictions, and limited regulation experience higher levels of human progress as measured by the IHP.

The Impact of Financial Reporting on Equity versus Debt Markets: Macroeconomic Evidence from Mandatory IFRS Adoption

This study investigates whether a shock to financial reporting has a differential impact on debt and equity markets. Using macroeconomic data and a pre-post design centered in 2005, we find that IFRS adoption has a significantly greater effect on foreign debt than on foreign equity investment flows. This result is consistent with the notion that debt investors are greater consumers of financial statement information. Further, consistent with research on the effects of IFRS adoption on individual firms, we find that post-adoption increases in foreign equity investment are limited to countries with high (or improving) governance quality. In contrast, we find increases in foreign debt investment flows are not dependent on governance quality. This is consistent with recent research that concludes that negotiated covenants in bond contracts can offset weak investor protection at the country level. Finally, we find that the increase in foreign equity investment derives primarily from the U.S., whereas the increase in foreign debt investment derives from the U.S. and other non-adopting countries. This evidence that increases in foreign investment originate from non-adopting countries rather than other adopting countries suggests that the benefits from IFRS adoption more likely reflect improved financial reporting quality rather than greater comparability.

Do better governed firms enjoy a lower cost of equity capital?: Evidence from Spanish firms

PurposeThe purpose of this paper is to investigate the relationship between corporate governance and cost of equity capital for a set of Spanish firms.Design/methodology/approachThe paper focuses on five board characteristics that have received widespread attention in corporate governance literature (board independence, board size, existence of both audit and nomination/remuneration committees, CEO duality, and independence of board committees) in order to construct a summary corporate governance measure for each firm. Then, by using regression analysis, it examines whether higher governance quality is associated with a lower cost of equity capital.FindingsThe results show that stronger governance firms have a lower cost of equity capital with respect to firms with weaker governance, even after controlling for differences in Fama and French's risk factors (i.e. beta, size and market‐to‐book).Research limitations/implicationsThe dependent variable, i.e. the cost of equity capital, is an unobservable measure and, as such, it has to be estimated. Therefore, the results can be sensitive to the estimation method chosen.Practical implicationsThere is a growing literature showing that corporate governance enhances firm valuation. However, these studies typically assume that corporate governance affects firm valuation by reducing expropriation by insiders and improving the expected cash flows that can be distributed to shareholders. Whether those mechanisms also affect the other determinant of firm value – i.e. the cost of equity capital – remains largely unknown. Moreover, there is no evidence of this issue for the case of Spain.Originality/valueIt is hoped that the results from the paper will provide additional information concerning corporate governance to interested parties.

Corporate and Government Bond Funds: An Analysis of Investment Style, Performance, and Cash Flows

We examine four separate classifications (high quality corporate, general corporate, government Treasury, and general government) of investment grade bond funds over the 1994-2004 period. We verify that distinct differences exist in investment styles across the classifications. We also document significant differences in performance as corporate funds outperform government funds on a risk adjusted basis. The performance results are robust to alternative evaluation metrics. An examination of cash flows to the funds indicates that bond fund investors are aware of the performance difference and have directed their investment dollars accordingly.

Governance and Cost of Capital: Evidence from the Enron Shock

We view the Enron scandal as an exogenous shock to test whether the quality of corporate governance affects firms' cost of capital. If governance is indeed reflected in the cost of capital, we expect to find increases in the cost of equity and debt capital post Enron for poorly governed firms. We find that the market betas from the one factor model and the cost of equity capital, computed from both the one factor and three factor Fama-French (1993) type models, increase in a statistically and economically significant manner post Enron for poorly governed firms relative to well-governed firms (governance proxied by g score, ownership by largest block holder and by public pension funds). We find modest downgrades in the debt ratings of poorly governed firms post Enron relative to well-governed firms. We conclude that high quality governance does have a favorable impact on firms' cost of capital.

Clinical governance in primary care: a literature review.

A systematic review of the research literature published between 1999-2003 was carried out to review how primary care trust groups and primary care organisations were monitoring the implementation of clinical governance and the effects this may have on nursing. Studies were limited to research papers with explicit methodology applicable to primary care trusts. The selection criteria, search procedures and methods of data extraction and analysis were formed at the outset. A data extraction tool developed by Cormack was adapted as a guide to include nine areas of methodological appraisal in summary forms. Initially 87 articles were identified from the search. When papers were omitted on the exclusion criteria seven studies remained. Clinical governance is a notable example of co-ordinated policy development and the entire concept can be difficult to translate into the integrated and systematic approach to improving quality of care. Clinical governance requires changes at three levels: the individual health care professional, primary care teams need to become multidisciplinary with clear understanding, primary care organisations need to put in place systems and local arrangements to support such teams. Clinical governance is about changing the way people work; demonstrating that leadership, teamwork and communication is as important to high quality care as risk management and clinical effectiveness. Whilst the sharing of information between practices is seen to be increasing with multi-professional study days occurring in some areas this in turn needs commitment for time and funding. The organisational and cultural environment within the trust as well as resource issues needs continuous attention if high quality governance is to become the norm.

¿Cómo lograr que el Perú se beneficie de la apertura comercial?

Peru is currently undergoing negotiations for free trade agreements with the United States and various East Asian countries. Subscribing to these agreements will give Peru the opportunity to consolidate and deepen the process of international trade liberalization started in the 1990s. In order for Peru to take full advantage of the opportunities that international trade openness bring, it must deepen the reforms that upgrade human capital, make financial markets more accessible, promote high quality public infrastructure and governance, and reduce the regulatory burden. In all of these areas, but particularly in that of labor markets, Peru has much scope for progress.

Colombia: the economic foundation of peace

The book intends to trigger, and support policy debate in Colombia. The first part distills four thematic chapters, responsive to the country's current realities, as well as to the five decades of development partnership with the Bank, spanning the entire development spectrum. First, violence, sustainable peace, and development introduces the reader to the source of violence - armed, and social conflicts, and drug trade prevalent in the country - to form a framework of understanding on the economic, and social costs for building peace, and enable sustainable growth. Second, such growth is examined within the macroeconomic, and fiscal framework, to ensure a healthy financial system, and create a business environment to foster private sector development. Third, such eventual success, drives us through Colombia's traditional socioeconomic progress, though through its recent setbacks as well - economic recession, increased macroeconomic instability, and judicial uncertainty - all eroding potential welfare gains. Fourth, and ultimately, the demand for governance and quality of government reveals the coexisting problems faced by strong and weak governance, and explores a strengthened governance based on selectivity and gradualism in building high quality government. To support this analysis, the second part, provides sector-specific realities, including its fiscal framework, public debt management, financial sector and pension reform. The development agenda calls for a government to reach a higher growth plateau, allowing a chance for sharing in that growth, and making the state an icon of quality.

Maori Economic Development - Te Ohanga Whanaketanga Maori

In 2003 the NZ Institute of Economic Research, in collaboration with Te Puni Kokiri, produced a report entitled Maori Economic Development. This report had the goal of bringing together different strands of analysis in a single overview of the Maori economy, and providing new insights on approaches to Maori development. The objective was to find a way to think about the Maori economy in the same way that we think about the New Zealand, or any other, national economy. As a result of preparing a series of research papers on different aspects of Maori economic development, the report is able to provide useful insights: • For Maori, on the things Maori organisations can do to enhance their economic development prospects - in particular, investment in high quality governance is the most critical next stage of development, which must be guided by Maori; • For New Zealand businesses, on the opportunities available to them to transact with, and invest in, the emerging Maori economy; and • For the Government , on the broad direction of policies which would enhance Maori economic development. In par ticular , the government's interest in Maori development is not just about social responsibility or Treaty of Waitangi risk management. Rather, it is a policy area with significant potential to enhance New Zealand's overall economic performance.

Do Rich Countries Choose Better Governments?

We analyze public investment in social infrastructure using a two-period model in which a government must intermediate all infrastructure investment. Voters choose a government from two alternative types, high quality and low quality. A high quality government obtains higher returns on infrastructure but also demands a bigger consumption payoff for intermediating investment, implying higher taxes for the voting public. We find that these intermediation costs cause threshold effects in the electoral process -- closed economies above a critical level of first period income elect high quality governments while economies below that level elect low quality ones. Thresholds vanish when voters can borrow abroad; capital mobility reduces the current consumption cost of infrastructure investment and favors better quality governments.

Good governance in the age of cyberspace

Argues a common framework is needed to help e‐commerce stakeholders implement high quality governance in the emerging global information society. Considers essentials for good governance that revolve around sovereignty, regulation of markets, safeguarding access and competition and various other related areas.

Good governance in the age of cyberspace

Argues a common framework is needed to help e‐commerce stakeholders implement high quality governance in the emerging global information society. Considers essentials for good governance that revolve around sovereignty, regulation of markets, safeguarding access and competition and various other related areas.