Integrating Corporate Governance Research Articles

The effect of board of directors attributes, environmental committee and institutional ownership on carbon disclosure quality

AbstractThis study assesses the effect of the board of directors' attributes, environmental committee (EC), and institutional ownership (IO) on carbon disclosure quality (CDQ) from the perspectives of legitimacy and agency theories in Malaysia. This study collects and analyzes data based on 1000 observations of firms from carbon‐intensive industries from 2015 to 2019. The effect of the board of directors' attributes, EC, and IO on the CDQ was observed using a panel data regression model. The study revealed a significant positive relationship between board independence, board size, female representation, EC, IO, and CDQ. These findings suggest that carbon disclosure awareness is rising in Malaysia as firms have gradually integrated corporate governance (CG) best practices into their business strategies. To the best of our knowledge, this is the first study to examine the factors that influence CDQ in Malaysian businesses. This study identified firms with a higher CDQ using a new global reporting initiative‐based carbon reporting index. This expands the literature on carbon disclosures. This study focuses on carbon‐intensive industries, which might not reflect Malaysia's current CDQ situation. Thus, future research should focus on other sectors to fully grasp the current state of the CDQ in Malaysia and offer new perspectives on emerging markets. The findings may benefit a vast group of regulatory bodies in assessing Malaysian firms' responses to local and international carbon guidelines.

Integrating corporate governance and forensic accounting: A sustainable corporate strategy against fraud

In the realm of financial oversight and corporate management, forensic accounting (FA) holds a critical position, serving as a central control mechanism and being widely recognized as an essential component of corporate governance. FA plays a crucial role as a central control mechanism and is acknowledged as a pivotal element of corporate governance. Consequently, it needs to continuously adapt in response to shifts in corporate governance practices, while the role of internal auditors transforms to actively support corporate sustainability. The aim of this research is to assess the effectiveness of FA and explore its relationship with corporate governance, based on the relevant literature. Thus, the main objectives of the present study are to identify the internal control attributes that influence the quality of its performance and to evaluate how corporate governance contributes to enhancing the quality of FA. To achieve the aim and the objectives of the paper, a literature analysis was carried out. The main contribution of the present paper is to refresh the existing body of knowledge on contemporary FA and its interplay with corporate governance.

Integrating Corporate Governance Practices into New Financing Projects and Executive Pay Structures

Purpose: This study aims to explore the integration of corporate governance practices into new financing projects and executive pay structures, highlighting their impact on organizational performance, transparency, and stakeholder trust. It addresses the growing need for robust governance mechanisms to align executive incentives with long-term value creation and effective decision-making in financing projects. Research Design and Methodology: A quantitative descriptive research design was employed, utilizing survey instruments, statistical analysis, and regression modeling to examine the integration of governance practices across diverse corporations. The study focused on the prevalence, determinants, and outcomes of governance integration in financing projects and executive compensation structures. Findings and Discussion: The findings reveal that robust corporate governance mechanisms significantly influence firms' financing decisions and executive compensation structures. Effective governance practices enhance transparency, accountability, and risk management, leading to lower financing costs, greater investor confidence, and improved project outcomes. The study also highlights the role of performance-based executive compensation schemes in aligning executive incentives with shareholder interests, fostering long-term value creation. Implications: The research underscores the importance of integrating corporate governance practices into financing and compensation frameworks to enhance organizational performance and stakeholder trust. It offers practical insights for policymakers, practitioners, and scholars on developing governance mechanisms that ensure prudent decision-making and value optimization. The findings advocate for continuous improvement in governance practices to meet evolving regulatory, shareholder, and societal expectations.

Managing Green Risks in Light of The Concept of Integrated Corporate Governance as a Proposed Accounting Approach To Activate The Role of Banks in Facing Climate Changes And Achieving Sustainable Development: A Field Study

Managing Green Risks in Light of The Concept of Integrated Corporate Governance as a Proposed Accounting Approach To Activate The Role of Banks in Facing Climate Changes And Achieving Sustainable Development: A Field Study

Determinants on Environmental Disclosure Moderating by Integrated Corporate Governance

This will use companies from sector energy and sector goods raw as population companies. Technique taking sample used is non- probability with purposive sampling method. Study this alone using criteria sample appropriate company with specified sector, company publish report possible finances accessed on 2018-2021, required data complete and company no once experienced a delisting during year research. Results sample companies used in the study are as many as 448. Test hypothesis in study this will be tested using the Eviews program. Method research used is moderated regression analysis (MRA) using eviews software. Besides that is, research this do test assumption classic and also test model accuracy to find out which model is most appropriate. Results from study this shows the sample data used to get away in testing assumption classics namely, normality, multicollinearity, heteroscedasticity and autocorrelation. From the results testing hypothesis found that environmental costs have an effect positive against environmental disclosure, international environmental certification does not influential on environmental disclosure, industry sensitivity has an effect positive on environmental disclosure, international corporate governance is capable strengthen influence between environmental cost and environmental disclosure, international corporate governance is capable strengthen influence between international environmental certification and environmental disclosure and international corporate governance is not capable strengthen influence Among sensitivity industry against environmental disclosures.

Shifting Microeconomic Indicators into Solving Macroeconomic Issues

Defining relations can be built between the state and the corporation on its capitalist structure with observable results in increasing economic performance. The idea of ​​sustainability results from Schumpeter's analysis of "healthy" economic growth of about 2% per year (according to the analysis between 1890 and 1940, including the unsustainable pre-crisis growth of 3.8% / year between 1890 and 1929). Basically, the relationship between government action and corporate governance can be likened to the relationship between urban management and business management (the ultimate goal is to attract investors / stakeholders to the city / corporation by offering advantages over other areas with similar characteristics but keeping the sense of economic logic). to maintain a competitive environment over the local government apparatus and an effective relationship with the inhabitants of that city, respectively, to maintain an organizational culture that resonates with the employees and with the initial purpose of the business), thus this research work having a character of rationalization of the economic environment of an emerging state through an integrated corporate governance approach to the issue.

Corporate governance, excess-cash and firm value: Evidence from ASEAN-5

This study investigates the role of the country- and firm-level governance practices on the relationship between excess-cash and firm value in ASEAN-5 markets. Using the Generalized Method of Moment models and a sample of 578 firms from 2010 to 2020 the study finds that excess-cash reduces firm value, indicating high agency costs and low firm value. However, excess-cash motivated by managerial ownership, founder CEO, board independence, shareholder rights and creditor rights increase firm value while excess-cash due to managerial entrenchment and CEODuality reduce firm value. In the sub-sample analyses the study finds that entrenched managers and board size play a less effective role in wasting excess-cash in low-excess-cash firms while independent directors play a higher monitoring role in high-excess-cash firms. In addition, governance at the country-level is more effective than at the firm-level in improving the value of excess-cash in large firms. The study offers unique evidence on the relationship between excess-cash and firm value by integrating corporate governance practices at the firm- and country-levels. The research aids practitioners, academics, policymakers and investors in developing the best liquidity policies to enhance business performance.

ENVIRONMENTAL-ORIENTED MODEL OF INTEGRATED MANAGEMENT

The article proposes an ecologically oriented model of integrated management of Ukrainian enterprises based on coimplex integration of environmental aspects into their management system at all stages of the life cycle, which will increase the competitiveness of enterprises and become the basis for their successful transition to sustainable development in the medium term. To restore and increase the life-sustaining conditions of nature on the basis of adequate compensation for damage to ecosystems, the main provisions of the concept of balanced interaction of companies with the environment have been developed. The concept implies adequate compensation for damage to nature by determining the rational relationship between levels of production and resources consumed. Based on the concept, an ecologically oriented model of integrated corporate governance has been created, the main difference from the existing international ISO standards and their analogues is the integration of environmental aspects into the organization's management system, which allows to take into account the environmental component at all stages of the life cycle. The introduction of an environmentally oriented model of integrated management in the company will ensure effective environmental transformation of the management system, which will serve as a basis for improving the environmental acceptability of their activities.

Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka

The cost of failure of a single corporate has a fatal impact on the economy. In addition to the macro-economic conditions leading to corporate collapse, management is responsible for developing and implementing a sound system of risk management and internal control in order to avoid such collapses. As a result, discussions on governance and risk have reached an unprecedented level for academics and practitioners. Moreover, risk exposure and management are increasingly becoming the foremost functions of modern business enterprises. However research that integrates corporate governance and risk has been limited. This study examines therefore the impact of corporate governance practices on corporate risk of listed companies in the Colombo Stock Exchange in Sri Lanka. The Board structure, Board Independence and Board procedures were considered as independent variables, whereas, corporate risk as dependent variable. The corporate risk represented the financial, operational and market risks faced by the companies. Furthermore the study used data from a sample of 64 listed companies for 5 years from 2014 to 2018 and employ panel regression to uncover the relationship that exists between these variables. The independent sample t-tests was used to test whether there was a statistically significant difference exist between the corporate governance practices of distress and non-distress companies. The results show that the corporate governance practices of distress companies was significantly lower than that of non-distress companies. The findings of the regression results suggest that Board independence was significantly and negatively impact on corporate risk. However, Board structure and Board procedures have no significant impact on corporate risk. The study therefore, concludes that the increased representation of independent non-executive directors of the board contributed to the significant decrease of corporate risk.

Firm Heterogeneity and the Internationalization-Firm Performance Relationship

There is a paucity of research that investigates the effect of governance mechanisms on the outcomes of internationalization in emerging market contexts. This paper attempts to addresses the lack of research on the effect of governance mechanisms on the outcomes of internationalization in emerging market contexts and focuses on two unique attributes associated with emerging markets, namely, family ownership and business group affiliation. In order to investigate these phenomena, we utilize an eleven-year longitudinal data set of 2,138 manufacturing firms from an emerging market (India) with a combined total of 17,212 firm-year observations. Specifically, our key finding indicates that a firm that has high levels of family ownership and is affiliated with a business group can change the nature of the underlying U-shaped relationship between internationalization and performance (I-P) to an inverted ‘U’ relationship. We also find that the threshold at which the change in the shape of the ‘U’ occurs is very close to the levels at which the owners get considerable control over the firm. Therefore, by integrating corporate governance literature with strategic management and international business literatures, our study represents one of the very few that simultaneously investigate the twin effect of key governance mechanisms (family ownership and business group affiliation) on the I-P relationship by operationalizing ownership in a manner that helps bring out the influence of the institutional context as well.

A Contextual Model Towards Understanding Information Technology Governance: Principles, Structure & Mechanisms

Although the board of directors and top executives depend on information technology (IT) to achieve strategic and operational goals and to meet legal and regulatory compliance requirements, IT governance is often not well understood by the board of directors and top executive management. The intent of this paper is to provide guidelines and understanding of the context of IT governance to organizational leaders. The study employs a qualitative examination of peer-reviewed journals, published documents, and IT practitioner sources containing IT standards and frameworks to (1) identify, classify and discuss the high-level view of the inter-related components of IT governance, and (2) develop a contextual model of IT governance. The contextual model integrates corporate governance theories, IT governance mechanisms, and IT governance domains. The strength of this model is its simplicity, which is devoid of complexities that normally confound the boards of directors and top executives when implementing IT governance. Therefore, the model provides guidance to the top executives and IT leaders the choices to initiate IT governance according to governance principles, IT governance mechanisms, statutory and regulatory compliance, and standard IT governance practices. The study recommends that the Government of Ghana should set up an IT governing board to guide the various arms of government as well as organizations and institutions that aim to strengthen their IT governance.

Integrating Corporate Governance and Forensic Accounting: A Study of an Asian Country

The accounting scandals during the last three decades have induced a crisis of confidence in financial reporting practices and effectiveness of corporate governance (CG) mechanisms. Indeed, Forensic Accounting (FA) integrates accounting, auditing and investigative skills to conduct investigations in variety of fraud cases. An increasing number of researchers are finding that poor CG is a leading factor in dismal performance, manipulated financial reports, and unhappy stakeholders. Some leading corporations and regulatory bodies, however, are trying their best efforts to analyze and correct the existing loopholes in the reporting system. Undoubtedly, qualified, trained and mature Chartered Forensic Accountants (CFA's) can prove to be a valuable asset to the corporate sector, and gradually help to improve their CG system. The CFA's, being professional member of the CG and Audit Committees, can play a far greater role in coordinating company efforts to achieve a cohesive policy of ethical behavior within an organization. By helping companies to detect and prevent fraud, create a positive work environment, establish effective lines of communication, and be vigilant as a corporate watchdog, the CFA's role can gradually evolve into a key component in the CG system.In the 21st century, the Forensic Chartered Accountants (FCAs) are in great demand and is listed among the top-20 careers of the future.The fundamental objective of this study is to find out how can we integrate the expertise of the Forensic Accounting (FA) to improve the overall corporate governance (CG) scenario prevalent in India? Since very little research exists in this area, present research is in nature. This is a investigation of the necessary skills, educational and training requirements for CFA's to improve CG system. We surveyed academics, practicing fraud and forensic professionals in order determine the perceptions of the professional community. During 2011-12, a questionnaire-based survey was conducted in the National Capital Region of India using a sample size of 120 practicing chartered accountants, accounting academics, and potential users of FA services. In fact, this study is a preliminary investigation of the necessary skills, education and training requirements for the professional community. The results of this exploratory study, with few minor differences, indicate that potential practitioners, academics and users agree that critical thinking, written & oral communication, legal knowledge, auditing skills, deductive analysis, investigative flexibility, analytical proficiency and unstructured problem-solving are the most important skills required for the CFAs.Moreover, we found that all of the skills investigated in this study are potentially important for the CFAs, which the educators at the Universities should use as an overall guide while designing their FA curriculum.

Inside out: The interrelationships of sustainable performance metrics and its effect on business decision making: Theory and practice

There has been an increasing interest in the use of decision-making models to achieve sustainability goal in recent decades. However, a systematic review of performance metrics, which are an important element of decision-making models to evaluate the outcomes regarding firm’s economic, environmental and social performance, is lacking. This study provides critical reflections on the current state of literature and industry development regarding sustainable performance metrics and offers concrete suggestions to guide future research. This study contributes to existing studies by (1) exploring the interrelationship between sustainable triple-bottom performance in the decision making process; (2) integrating corporate governance mechanism into decision making process for sustainable consideration; and (3) conducting a comparison between academic theory and industry practice regarding the performance metrics proposed and employed.

Expanding the board's contribution to corporate social responsibility

This study considers the board of directors' contribution to corporate social responsibility within US public companies recognised as CSR leaders. This research integrates corporate governance, CSR, and stakeholder theory literature. This qualitative study employs semi-structured interviews with the chief executive officers (CEOs) of three US public corporations recognised as CSR leaders in the MSCI KLD 400 Social Index (MSCI, 2014) and published company and third-party texts. Three findings emerge with implications for scholars and practitioners. They are: 1) board contribution is expected given CSR's material impact on shared company and stakeholder benefit; 2) board influence in CSR is advanced by their duty fulfilment, expertise, experience, and roles complementary to management; 3) key practices advance board involvement and impact in CSR.

How Ideologies Influence the Legitimacy of State Involvement in Corporate Governance

This study integrates corporate governance research with institutional theory by taking an institutional approach to study state involvement in corporate governance. We posit the perceptions of sta...

Expanding the board's contribution to corporate social responsibility

This study considers the board of directors' contribution to corporate social responsibility within US public companies recognised as CSR leaders. This research integrates corporate governance, CSR, and stakeholder theory literature. This qualitative study employs semi-structured interviews with the chief executive officers (CEOs) of three US public corporations recognised as CSR leaders in the MSCI KLD 400 Social Index (MSCI, 2014) and published company and third-party texts. Three findings emerge with implications for scholars and practitioners. They are: 1) board contribution is expected given CSR's material impact on shared company and stakeholder benefit; 2) board influence in CSR is advanced by their duty fulfilment, expertise, experience, and roles complementary to management; 3) key practices advance board involvement and impact in CSR.

The contextual model towards understanding information technology governance principles, structures and mechanisms

Although top executives depend on IT (information technology) to achieve strategic and operational goals and to meet legal and regulatory compliance, IT governance is often not well understood by the board of directors and executive management. The intent of this paper is to provide guidelines and understanding of the context of IT governance to organizational leaders. The study employs a qualitative examination of peer-reviewed journals, published documents, and IT practitioner sources containing IT standards and frameworks to (1) classify and discuss the high-level view of the inter-related components of IT governance, and (2) develop a contextual model of IT governance. The contextual model integrates corporate governance theories, IT governance mechanisms, and IT governance domains. The strength of this model is its simplicity, which is devoid of complexities that normally confound the boards of directors and top executives when implementing IT governance. Therefore, the model will provide guidance to the top executives and IT leaders the choices to initiate IT governance according to governance principles, IT governance mechanisms, statutory and regulatory compliance, and standard IT governance practices.

INDICATORS OF TECHNOLOGY IN THE PERCEPTION OF IT AND BUSINESS MANAGERS – A COMPARATIVE ANALYSIS

<p>In this study we sought to identify how the indicators of information technology use can assist in the information technology governance and alignment of organizations through benchmarking. Multiple case studies were conducted in four large organizations that act in the service sector of vocational education, in which information technology plays a key role, interviewing executives from technology and business. The main indicators used in the study where the index G (expenditure and investment in IT / annual net sales) and the CAPT (annual cost per keyboard). As a result, it became clear that the indicators are perceived as important for information technology governance and alignment, and their own quality management, integrating corporate governance. Therefore, the indicators presented serve as management tools and a basis of comparison with other companies, the sector of activity, as a comparison of the historical evolution's own internal organization (monitoring) and as part of negotiation for future technology investments, providing support to the information technology managers and business managers, facilitating their decisions.</p><p>Keywords: Information technology. Indicators. IT governance.</p>

Integrating corporate governance and financial variables for the identification of qualified audit opinions with neural networks

Prior studies have contributed to the development of models that help predict audit opinions, and have applied several methodologies in the search of better predictions. Nevertheless, and even though the existing literature on the prediction of audit opinions is profuse, the results achieved by the existing modelling are still considerably far from having obtained high levels of prediction, and the results are not in excess of 80 % in terms of classification. In previous research, prediction models of audit opinions have used financial variables. The main contribution of this paper is to show that combining these financial variables with variables relating to corporate governance of companies, the predictive ability of the models is significantly higher. For this, a sample was selected from Spanish Listed companies during the financial years between 2008 and 2010. From this sample, financial and corporate governance information was obtained, enabling us to rely on a new set of variables, more complete than those used in prior research. The validity of the variables was studied by means of univariant tests, upon completion of the database. Then, the results of the models built upon said variables were compared through neural network tests that have proven to yield a higher level of prediction, according to prior literature, specifically, multilayer perceptron and probabilistic neural network.

There Is No Rawlsian Theory of Corporate Governance

ABSTRACT:The major aim of this article is to show that John Rawls’s theory of justice cannot be applied effectively to questions of business ethics and corporate governance. I begin with a reading of Rawls that emphasizes both the critical and pragmatic nature of his theory. In the second section I look more closely at the notion of society’s “basic structure” and its place within Rawls’s theory. In the third section, I argue that “the corporation” cannot be understood as part of this basic structure and is not, therefore, a subject of justice for Rawls or his interpreters. Finally, I show that Rawls’s inability to speak to the corporation is a weakness, regardless of one’s particular view on the corporation. I conclude by considering what Rawls’s theory helps us to understand about the problems involved in integrating corporate governance, business ethics, and political philosophy.