Interests Of Shareholders Research Articles

Relationship Between IPO and Company Development Based on the Case of Poten Enviro

Abstract: The stock market crash in early 2024 in China has sparked criticism from investors regarding the current Chinese IPO system. There has been extensive debate on whether IPOs should serve as a venue for financing for companies facing internal and external development difficulties and questionable profitability, and whether the interests of shareholders should receive better protection. To delve deeper into the issues surrounding the Chinese IPO system, a listed companyPoten Envirohas been selected, and a comprehensive review has been conducted on its development history, internal and external challenges, IPO process, financial irregularities, and other related behaviors. The company should proper analyze the external environmental changes, and the IPO should not be pursued blindly. Also, the regulation institution should strengthen supervision of listed companies to avoid losses for the public. This study will be beneficial in providing insights for the reform of the Chinese stock market and offering guidance for strategic decision-making by enterprises.

The Relationship Between Chief Financial Officer Gender and Investment Efficiency

Objective: This study aims to examine the relationship between the gender of the chief financial officer (CFO) and the efficiency of corporate investment, especially over-investment. Methods: The independent variable is the gender of the CFO and the dependent variable is over-investment. The research method is correlation type and multivariate regression using panel data with a logistic regression model approach. The data of manufacturing companies in the Tehran Stock Exchange has been collected from 2017 to 2021. Results: The findings of the research show that the presence of a female financial manager is significantly related to the reduction of the company's over-investment level, so gender plays a role in the economic decision-making and investment of companies. Conclusion: Female chief financial managers are more risk-averse compared to male chief financial managers and consider the interests of shareholders in the company’s economic decisions. Therefore, companies should pay special attention to gender diversity at the level of company managers in making decisions and economic investments.

The relationship between sustainability and financial performance of South African companies

Orientation: Environmental, social and governance (ESG) performance remains crucial information required by stakeholders as they are interested in monitoring whether companies contribute to sustainability or not.Research purpose: The study’s purpose was to determine how the sample companies scored on the three pillars of ESG performance and to determine the relationship between ESG scores and the financial performance of selected South African listed companies, with special reference to the impact of coronavirus disease 2019 (COVID-19) on that relationship.Motivation for the study: Because of crises such as the COVID-19 pandemic, companies tend to focus on their ESG-impact, resulting in them investing in sustainable operations.Research approach/design and method: Linear mixed-effect regression analysis models were developed to determine the relationship between ESG scores and financial performance. The sample consisted of 104 companies listed on the Johannesburg Stock Exchange (JSE) from 2017 to 2022.Main findings: We found that companies do not equitably score on the ESG performance pillars. We also found the following significant relationships: (1) Return on equity (ROE) positively impacts governance performance, (2) ESG positively impacts Tobin’s Q and (3) governance performance positively impacts ROE. Furthermore, the results show that sustainability and financial performance before and after COVID-19 are mainly not meaningful.Practical/managerial implications: New insights are revealed in the interests of shareholders, potential investors and company management regarding how to interpret the relationship between ESG pillars and financial ratios.Contribution/value-add: We contribute to the theory as a conceptual framework was developed to interpret the results within the shareholder’s theory.

Corporate Social Responsibility, Earnings Management, and Cash Holding: A Study of Non-Financial Firms in Pakistan

This study investigates the interplay between CSR practices, earning management, and cash holdings in Pakistani publicly listed companies (PLCs). Spanning the period from 2013 to 2022, the research aims to provide empirical insights into how CSR initiatives influence financial practices within the Pakistani context. Methodologically, the study employs panel unit root tests and compares Ordinary Least Squares (OLS), fixed effects, and random effects models to analyze a sample of 202 non-financial firms listed on the Pakistan Stock Exchange. The implications of these findings underscore the importance of strategic CSR integration to enhance financial transparency, mitigate agency conflicts, and foster sustainable corporate growth. Managerial implications suggest that executives should focus on enhancing board effectiveness, strengthening audit oversight, aligning managerial incentives with long-term shareholder interests, and integrating CSR initiatives into core business strategies. However, the study acknowledges several limitations. These include the sector-specific focus on non-financial firms, which may limit generalizability to other sectors within the Pakistani economy. The study's reliance on panel unit root tests and econometric models, while robust, may benefit from alternative methodological approaches and sensitivity analyses. In conclusion, while this study contributes valuable insights into the CSR practices and financial management of Pakistani PLCs, future research should explore longitudinal trends, sector-specific variations, the role of emerging technologies in integration of CSR into corporate strategies. Addressing these areas would further enhance our understanding and inform policy interventions aimed at promoting transparency, accountability, and sustainable in emerging market economies like Pakistan.

Balancing the interests of shareholders (participants) and members of the Corporation’s management bodies: new challenges and opportunities

The main task of management in a corporation is to ensure a balance of interests of all subjects of corporate relations. An important aspect is the search for legal instruments that will ensure this balance in a certain economic society. Such funds are contained in the current legislation, developed by judicial practice, and can be fixed in the company’s charter. The purpose of the study is to identify the most effective means to ensure a balance of interests of shareholders (participants) and members of management bodies in a business company at the present time. The article also analyzes the legal means that are fixed by the sanctions regulations, and the relevant conclusions are drawn.

Debt maturity and the marginal value of cash holdings

This study investigates the impact of debt maturity on the marginal value of cash holdings. It posits that short-term debt acts as a crucial governance mechanism by reducing agency conflicts and aligning managerial actions with shareholder interests. Using a sample of U.S. public firms, the results indicate that firms with higher proportions of short-term debt have a greater marginal value of cash, reflecting more efficient resource allocation and reduced managerial opportunism. The necessity for frequent capital market interactions associated with short-term debt mitigates agency conflicts. Additionally, the study explores three potential mechanisms: financial constraints, managerial moral hazard, and information asymmetry.

Life after Death? Legal Relations of Companies after Cessation of their Legal Existence

The cessation of the legal existence of a company affects many entities that have entered into legal relations with it. Above all, its unsatisfied creditors are affected, but the legal situation of the company's shareholders is also altered. Legislators approach the issue of the cessation of the company's legal existence in different ways and address the problems related to the status of the legal relations of the defunct company differently. The paper presents the two main approaches legislators adopt in this regard in several European jurisdictions (Italy, Poland, the United Kingdom, Germany, France, Spain and Switzerland) and discusses models that exemplify each approach. The study points out the strengths and weaknesses of these approaches and various models, paying particular attention to the way in which the interests of stakeholders and shareholders are balanced and how legal certainty is addressed in each of them. The paper seeks to answer the question of whether it is legitimate to build parallels between the cessation of the legal existence of an individual and a company and to draw on institutions known from succession law when regulating the legal relations of defunct companies. Keywords: Defunct company; Striking off; Legal succession; Liquidation; Creditor’s protection

The Intervention and Impact of Digital Society on the Governance of Dual Equity Structure in Enterprises

The digital society has become a prominent feature of today's era. Its highly interconnected, transparent, and intelligent characteristics are profoundly changing the governance mode and operational logic of enterprises. This article aims to explore the intervention and impact of digital society on the governance of dual equity structure in enterprises, and provide practical guidance for the sustainable development of enterprises. The dual equity structure, as a special corporate governance model, is characterized by granting different voting rights to different types of shares, achieving absolute control over the company by the management. However, this structure has also sparked many controversies, such as the possibility of management using control to harm shareholder interests, leading to management dictatorship, and so on. In the context of the digital society, enterprises face new challenges and opportunities in terms of information transparency, decision-making efficiency, and governance mechanisms.

Mergers and Acquisitions, CEO Compensation, and Corporate Governance in the Hospitality and Tourism Industry

Drawing on agency theory, we explore the relationship between mergers and acquisitions (M&As) and chief executive officer (CEO) compensation in the hospitality and tourism (HT) industry. Specifically, we investigate whether growth via acquisitions, a popular strategy in the HT industry, is influenced by CEO compensation. Using a sample of HT and non-HT firms for comparison from 1992 to 2019, we find that CEO compensation is significantly higher after acquisitions for both HT and non-HT firms. However, when controlling for common compensation determinants, CEO compensation is significantly higher in HT firms but not in non-HT firms. Surprisingly, in our sample, corporate governance is not significantly related to changes in CEO compensation post-acquisition. In addition, while the fraction of cash-based compensation is negatively related to M&A propensity in both HT and non-HT firms, the fraction of equity-based compensation is unrelated to M&A propensity in HT firms. Our study fills an important gap in the sparse literature on the link between M&A and CEO compensation in the HT industry, providing theoretical implications for future research and managerial implications for boards of directors to design compensation plans that align the interests of managers and shareholders.

Research on the Impact of Equity Pledge on Company Value

This article aims to provide a literature review on the impact of equity pledges on corporate value, and to explore in depth the application of equity pledges as a financial tool in corporate governance and capital operation, as well as its multidimensional impact on corporate value. By reviewing and analyzing relevant literature both domestically and internationally, this article first defines the basic concept of equity pledges and then elaborates on the impact mechanism of equity pledges on company value from both positive and negative perspectives. In terms of positive impact, this article explores how equity pledges can promote corporate financing, optimize capital structure, and enhance the control of major shareholders over the company. In terms of negative impacts, the possible control risk, market risk, and potential damage to the interests of small and medium-sized shareholders brought about by equity pledges were analyzed. Furthermore, this article also discusses the differences in the impact of equity pledges on company value in different scenarios and proposes corresponding policy recommendations and research prospects.

Transforming ex-Coal Mining Sites into Sustainable Plantations: A Case Study of Food Natural Sustainability Project in Bomba Group

The Ministry of Agriculture (Kementan) is encouraging efforts to convert former mining land into productive agricultural areas to increase national food production and stocks amidst the global food crisis. Land Reclamation Technology is a necessity to reduce the cost of reclamation of ex-mining land into agricultural land. The method of reclamation of ex-mining land by moving top soil from another place is not recommended because this is a step to solve the problem by creating other new problems. Sustainability Business Model for such rejuvenation projects refer to Collaboration and Community Based and must be prioritize all stakeholders (all parties involved and affected by the activities carried out by the business) rather than the interests of shareholders.

Corporate Viability and the Duty to Consider the Interests of Creditors in the United Kingdom and the European Union

This article contrasts the recent UK Supreme Court case of BTI 2014 LLC v Sequana and the EU Preventive Restructuring Directive, which both examine the duty of directors to consider the interests of the company’s creditors once the company entersfinancial distress. This article firstly contrasts how the two frameworks trigger creditor consideration and what they require of directors. Then it explores how both frameworks utilise the concept of corporate viability either as a framing device for creditor paramountcy or as an independent guide for directorial judgment. The article details how deference towards directorial judgment is facilitated in either framework, particularly in relying on the commercial nature of corporate viability as distinguished from legal insolvency. It also explores how corporate viability positions the interests of different interest holders, namely in how it affects the balance between the interests of shareholders and creditors. The article furthermore explores the extent to which the consideration of broader stakeholders is facilitated by allowing directors to emphasise the importance of corporate viability. Finally, the article explores the broader implications of corporate viability and the creditor duty from the perspective of entity-based theories of corporate form and entity maximisation approaches towards the company’s interests.

Immovable Castles, Movable Companies and the Real Seat Criterion in Troubles (Edil Work, C-276/22)

With Edil Work C-276/22, a decision of 25 April 2024, the Court of Justice of the European Union has solved questions concerning the freedom of establishment of companies incorporated in a certain Member State but operating exclusively in another Member State. The Court holds that the Member State of operation may not require concurrent or exclusive application of its company law, other than in cases where overriding mandatory provisions are at stake, such as for example rules protecting interests of creditors, workers, and minority shareholders.

Perks and labor investment efficiency: Evidence from China

This study investigates the effect of perks on future labor investment efficiency. Agency theory suggests that perks motivate managers to distort investments for personal gain. By contrast, incentive contract theory suggests that perks can be a component of incentive contracts, encouraging managers to make investments in the best interest of shareholders. Based on a sample of 12,818 firm–year observations from 2009 to 2017, we find that perks are positively related to future labor investment inefficiencies, consistent with agency theory. An exogenous reduction in executive perks caused by the 2012 anti-corruption campaign decreases labor investment inefficiencies. Further analyses show that the positive effect of perks on overinvestment predominantly occurs when firms have excessive free cash flow, low political visibility, and a less-educated workforce, whereas the positive relationship between perks and underinvestment is more prevalent. Finally, we find that perks and labor investment inefficiencies are detrimental to firm value.

“Care process into a cash transaction”: medical neoliberalism, Afloat and graphic medicine

ABSTRACT Medical neoliberalism has precipitated a significant shift away from the patient-centric approach to a profit-driven paradigm that prioritises the interests of corporations and shareholders over the well-being of patients. Consequently, there is a shortage of funding for adult social care resulting in compromised service quality. Taking these cues, the article close-reads some sections of Nigel Baines’s Afloat: A Memoir about Mum, Dementia, and Trying Not to Drown (2019) in order to demonstrate how graphic medicine offers multifaceted critique of the NHS and social care arrangements in the UK through nuanced visualisations. Baines deploys a series of visual metaphors to concretise his challenges in quest of an appropriate care arrangement for his dementia-afflicted mother. In particular, Baines deploys thought-provoking board game metaphors (such as the snake and ladder board) and the Yeatsian symbol of gyre to introspect the fine-grained workings of medical neoliberalism and its impact on social care. The article concludes by discussing how Afloat operates as a critical lens exposing the intricacies emblematic of healthcare environments and the deeply rooted vulnerabilities enmeshed within the system.

Board composition, ownership structure and dividend policy: Evidence from NSE listed companies in India

Purpose The purpose of the study is to analyse the influence of board composition and ownership structure on the dividend pay-out policy of selected listed Indian companies. Design/methodology/approach The top 30 companies listed on National Stock Exchange were examined for a period of three financial years from 2019 to 2021. Due to the cross-sectional and time-series character of the data, fixed effect panel model is used as the primary analytical approach. Findings The results revealed that there is a significant and positive association between board size and dividend policy. The results confirm that the firms with higher Indian ownership and non-institutional ownership distribute higher levels of dividend. No significant association was found between board independence and dividend decisions of ratios. Finally, it is observed that there is a positive impact of return on assets on dividend policy. Research limitations/implications Future studies can confirm the impact of ownership determinants and board characteristics on dividend distribution policy by taking stock dividends into account and enlarging the sample size of developing market businesses. They can also investigate ownership factors including management ownership and international ownership, in addition to other board attributes like qualification, tenure and age. This will offer a more thorough comprehension of how these variables relate to dividend policy. Practical implications Because they are better able to assess the financial position and make educated judgments, a diverse and independent board of directors may result in more strategic and cautious dividend policies. The dividend policy of a firm is also influenced by its ownership structure and strategic objectives; small or primary shareholders may exert pressure for larger payments. By focusing on long-term strategic goals rather than immediate requirements, managers may guarantee that interests are aligned. The findings of this study offer significant guidance to management and regulators about the dividend policy of publicly listed corporations. Social implications According to agency theory, the link between ownership structure, board composition and dividend policy may be explained by agency conflicts. Independent directors are necessary for the board to make decisions that effectively balance the interests of management and shareholders, particularly when it comes to paying dividends. According to studies, companies with non-executive directors have greater interest alignment and fewer agency issues. In addition, the ownership structure and makeup of the board are important factors in lowering agency conflicts and enhancing corporate governance procedures. Companies may improve their governance procedures and increase value for shareholders by resolving conflicts of interest. Originality/value The research paper contributes to the existing body of knowledge by analysing and uncovering significant and unknown relationship between board composition, ownership structure and dividend policy. The paper explores the relationship between specific ownership structures and dividend policy in context of a developing country where limited research exists and addresses a research question that has not been extensively studied before.

ACCOUNTING FOR BUSINESS ETHICS AND SUSTAINABILITY (A4BES): HARMONIZING ACCOUNTING FOR THE INTERESTS OF SHAREHOLDERS AND NON-SHAREHOLDER STAKEHOLDERS

The purpose of this study is to introduce a framework that assists corporate managers in transforming the promised benefits of sustainability reports into future financial performance by aligning the interests of shareholders and non-shareholder stakeholders. This descriptive study proposes a framework to investigate the stakeholder harmonization process undertaken by managers, with a pilot study focusing on Indonesian mining companies using content analysis methodology. The study hypothesizes that managers' disclosures in sustainability reports reflect their success in achieving stakeholder harmony. Modern corporate managers accomplish stakeholder harmonization by reporting on both financial performances and non-financial performances, I called them Business Ethics and Sustainability (ABES) performances. They provide outcome-based performance information on A4BES performances. The study found that Indonesian mining companies typically disclose more information than required by the capital market regulation on sustainability reporting. Mining managers, categorized as conventional managers at the second level of the stakeholder harmonization process, report over 50% of A4BES accounts but often omit outcome-based performance information. This study extends sustainability accounting literature on stakeholder theory by examining how management processes balance the interests of shareholders and non-shareholder stakeholders.

THE ROLE OF BOARD STRUCTURES IN INCREASING BANK ACCOUNTABILITY: GLOBAL EXPERIENCE

The governance of banking institutions plays a critical role in the stability and integrity of financial systems globally. The structure of the board of directors significantly influences how banks manage risks, comply with regulations, and align operations with the interests of shareholders and other stakeholders. Understanding how board structures differ across regulatory and cultural landscapes is crucial for enhancing bank accountability and performance. This article aims to critically evaluate how various board structures impact the accountability of banking institutions across different global contexts. The goal is to identify effective governance practices that can be adapted to improve bank accountability worldwide. Employing a comparative case study methodology, this research analyzes board structures in banking institutions across continents including North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America. Data from primary sources like interviews and secondary sources such as regulatory documents and academic articles are synthesized to assess the impact of board configurations on governance and accountability. The analysis reveals that effective board structures often include a high proportion of independent directors, robust audit and risk committees, and a commitment to diversity, which correlate with enhanced accountability and financial performance. However, variations exist due to cultural, economic, and regulatory differences that influence board effectiveness across regions. The findings suggest that while there is a global trend towards standardizing governance practices, local adaptations remain essential. The study recommends that banks and regulators focus on enhancing board independence, diversifying board composition, and strengthening risk oversight to improve governance frameworks. Future governance models should incorporate a dynamic approach to adapt to technological advancements, economic shifts, and societal expectations, ensuring that banking institutions can effectively meet emerging challenges and opportunities.

Directors’ positive duty to act in the interests of the entity: shareholders’ interests bounded by corporate purpose

ABSTRACT Directors’ duty to act in good faith and to act in the best interests of the company relates to the interests of shareholders held in the company as a separate legal entity. The obligation to act in the best interests of shareholders is potentially bounded by corporate purpose as the office requires directors to act in accordance with the constitution and Companies Act. The origin of the duty is traced to the emergence of permanent capital in the business corporation and the resulting new oaths sworn by directors in the seventeenth and eighteenth centuries with Charitable Corporation v Sutton considered in that historical context. The analysis illustrates that the duty is not owed to shareholders collectively at any time, but rather to the company as a separate entity from its shareholders. The interests of shareholders are held in the company as its capital base. The duty is considered in relation to the even longer-standing obligation that officers of corporations act faithfully to ensure compliance with the corporation’s charter. The article concludes that the re-inclusion of purpose provisions in company constitutions combined with recognition that the modern company is an entity rather than contractual could significantly influence the application of the good faith and best interests duty.

Research on the Measures and Cost Benefits of Corporate Governance

Corporate governance is an important mechanism for protecting and promoting the interests of shareholders and promoting the healthy development of the companies. Corporate governance is a framework and principle of the internal organization management that aims to balance power among different stakeholders and to safeguard stakeholders' interests. Enterprises at different levels need effective corporate governance to maintain the positive development of the enterprise. Therefore, this paper analyzes corporate governance in firms through qualitative and theoretical analyses with the aim of exploring the measures that generate corporate governance, the costs, and benefits of these measures, and to make recommendations to improve corporate governance. Enterprises need to establish independent director accountability mechanisms to strengthen the regulatory awareness of the enterprise in the face of the problems of corporate governance. Meanwhile, it needs to establish incentive mechanism to encourage, optimize the equity structure and sound managerial market to help enterprises improve the management mechanism.