Corporate Governance Model Research Articles

WAYS OF USAGE FOREIGN EXPERIENCE IN IMPROVING CORPORATE GOVERNANCE IN UZBEKISTAN

This article describes the modern system of corporate governance, its foreign experience, development trends in corporate governance practices and models in the world. In particular, the article discusses new views and reforms of corporate governance in the countries of the world in the 21st century, and also provides recommendations on the usage of best practices for improving corporate governance in Uzbekistan.

Two tigers cannot live on the same mountain: The impact of the second largest shareholder on controlling shareholder's tunneling behavior.

Under the current corporate governance model, the second largest shareholder (SLS) is a very special, common and important presence, which becomes an important counterweight to the controlling shareholder (CS). Through a game matrix, this paper explains whether the SLS will supervise the CS's tunneling behavior. Based on this, we empirically examine the effect of the SLS on CS's tunneling behavior in Chinese listed firms between 2010 and 2020. The results indicate that the SLS significantly inhibits CS's tunneling behavior. In addition, the heterogeneity analysis reveals that the negative effect of the SLS on CS's tunneling behavior is concentrated in non-state-owned enterprises (NSOEs) and enterprises located in regions with better business environment. This paper provides a reference for resolving the current "conflict of interest" among multiple large shareholders (MLSs), as well as evidence to support the governance role of the SLS in listed firms with MLSs.

Correction to: Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

Correction to: Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

Change in company leadership, subordinate executive team restructuring, and investment efficiency

AbstractUnder the Chinese corporate governance model, the change of “leader” is one of the most significant occurrences for a company, and there is a strong relationship between “leaders”(chairman and CEO) and the executive team under them. Using data from listed A‐share businesses in China from 2007 to 2018, this study evaluates the effects of leaders' changes on investment efficiency and the effects of subordinate executive team restructuring caused by “leadership” change on investment efficiency. The findings reveal that the change of “leaders” significantly reduces company's investment efficiency, and the greater the degree of restructuring of subordinate executives caused by the change of “leaders”, the greater the negative impact on the company's investment efficiency. Nevertheless, the successor leader with a financial background can well mitigate the negative impact of the subordinate executive team restructuring on investment efficiency. In further analysis, we discover that the subordinate executive reorganization results in both overinvestment and underinvestment. However, state‐owned enterprises are more resilient to the damaging impacts of organizational shocks. Additionally, a good internal and external regulatory mechanism can mitigate the negative impact of the subordinate executive teams restructuring on investment efficiency. In conclusion, this study provides scientific support for improving executive team management and optimizing investment decisions for companies.

International Corporate Governance: Post-Covid-19 Prospects for “The 21st Century Revolution” and “The Global Compromise”

Abstract The paper speculates on possible post-COVID developments in two prospects for evolution of international corporate governance. The first, labelled “the 21st century revolution in ownership” would acknowledge the supremacy of a successful national model of corporate governance based on an emerging allegedly new type of ownership, which might be introduced worldwide. The second option, named “the global compromise” implies combining “good practice” elements from different national models into a commonly accepted global model. The economic impact of the recent crisis might accelerate trends that were present already in the pre-COVID-19 period. Rapid digitalization of society would help increase transparency in corporate governance and contribute to higher shareholder participation. The need for resilience would encourage corporate governance reforms leading to convergence to a more stakeholder-oriented model. However, differences among national models are likely to persist, so neither of the two options will be fully realized in the immediate aftermath of the crisis.

Corporate governance in the COVID-19 pandemic: current practices and potential improvement

PurposeThe purpose of this paper is to analyse the effect of the COVID-19 pandemic on corporate governance and internal control in general. In addition, this paper attempts to develop a new corporate governance model that flexibly addresses conditions like those brought into the business environment by COVID-19.Design/methodology/approachThirteen semi-structured interviews were conducted with chairpersons, CEOs and directors from companies listed on the FTSE 350.FindingsThis study suggests a corporate governance model, which we call Eunomia, which we believe will help businesses to navigate the unusual conditions resulting from COVID-19 and similar types of crises that lead to major disruption for businesses and society. The model includes five pillars that support governance, namely, flexibility, IT infrastructure, risk management, internal control and policies and procedures.Practical implicationsImplications for practice and policymakers. Based on the research outcomes, the authors suggest that the board of directors establishes policies that ensure supply diversity and that businesses do not rely on a single or limited number of suppliers, thereby making themselves vulnerable to supply chain disruption with those suppliers.Originality/valueThis paper presents an original contribution to the accounting literature relating to corporate governance and internal control systems, specifically in terms of how businesses can optimally operate under uncontrollable conditions resulting from pandemics, and similar situations.

NAVIGATING THE TRANSITION TO A DECENTRALIZED GOVERNANCE MODEL FOR STATE UNIVERSITIES IN UZBEKISTAN

This article discusses the challenges and opportunities involved in transitioning state universities in Uzbekistan to a decentralized corporate governance model. Drawing on international experiences and local context, the article examines the importance of reducing state funding, providing support for universities, and developing new forms of accountability and transparency. The article also highlights the potential benefits of decentralized governance, including greater efficiency and innovation. The article concludes by emphasizing the need for careful planning and effective support mechanisms to facilitate a successful transition.

Share Cross-ownership Regulation and Stock Process: Evidence from the Chinese Market and Recommendations for Philippine and Vietnamese Law

Cross-shareholding promotes price synchronization and reduces price lag. More importantly, this effect on price informativeness is evident for large companies and during market downturns. In general, the relationship between cross-ownership structure and stock price informativeness exists clearly. This paper investigates the impact of share cross-ownership on stock prices as a measure of price informativeness from companies listed on the Chinese stock exchange. The paper has learned an overview of cross-ownership and the stock market in China through jurisprudence analysis and comparative jurisprudence method. At the same time, the author also discusses the positive effects of regulation and cross-ownership structure on stock prices to better understand the relationship between cross-ownership and price dynamics through the impact of cross-ownership on the information environment. A notable point that the paper also discusses is the advantages of symmetric cross-ownership compared to the process of merger of joint stock companies to determine the balance between market efficiency and the social welfare loss brought about by symmetrical cross-ownership. From there, the paper will evaluate the influence of cross-ownership in Vietnamese and Philippine laws through agency theory and corporate governance models. Finally, make some recommendations for Philippine and Vietnamese laws.

Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

AUDIT FEES AND COMPANIES’ ACCESS TO FINANCE

This paper aims to study the impact of audit fees on companies' ability to access finance by reducing their capital constraints. This study employs a dataset of listed non-financial Indonesian companies from 2016 to 2020. Unlike previous studies, which mostly examined this phenomenon in developed economies, this paper focuses on a country with a two-tier corporate governance model where the capital market is not a major source of financing and the disclosure of audit fees is still voluntary. In such a setting, the decision to disclose audit fees is in the hand of the companies' management, and various motivations behind the decision will differently impact different users of financial information. This paper focuses on whether the information related to audit fees is a good signal for capital providers. Following the limited attention theory, this study argues that capital providers will consider the information about audit fees as a more reliable proxy for audit efforts that subsequently affect their investment decision. The hypothesis is that audit fees are negatively associated with companies' financial constraints. The findings indicate that capital providers see higher audit fees as signals of high-quality audits that enhance the credibility of financial statements and positively impact companies' access to finance. 
 
 Key Words: Audit Fees, Capital Constraint, Access to Finance, Audit Quality, Limited Attention Theory

공익법인 등의 지배구조 개선방안

공익법인 등의 지배구조 개선방안

МЕТОДИКА ОЦІНЮВАННЯ ВПЛИВУ РОЗПОДІЛУ АКЦІЙ НА УПРАВЛІНСЬКІ РЕСУРСИ АКЦІОНЕРІВ

The purpose of the conducted research is to develop indicators of the structure of the share capital of joint-stock companies and methods of their quantitative determination, as well as to explore the impact of the distribution of shares on the distribution of the management resource of the company among the owners of shares. In modern studies, much attention is paid to the issues of quite complex interaction of different groups of shareholders in the process of creating and running a relevant business. The article proves that the nature of these relationships, their effectiveness and features of corporate management of the enterprise are largely defined by the structure of shares distribution in the company. A group of indicators is proposed for characterizing the structure of shares distribution in a jointstock company: concentration, dispersion and differentiation of share capital. A methodology of their quantitative calculation has been developed. The indicator of share capital concentration shows the degree of concentration of share capital among the company’s participants, which makes it possible to accurately determine whether a particular joint-stock company belongs to a certain model of corporate governance. The indicator of share capital differentiation shows the extent to which packages of shares within a jointstock company differ in volume and, accordingly, in the management resources of their owners. The concept of collective and individual management resources in a joint-stock company has been introduced. The article reports a methodology for calculating the management resource of each package of shares, which allows to determine more accurately and quantitatively the available opportunities for managerial influence of their owners on the enterprise’s activity compared with the use of nominal indicators of the size of the share packages. It has been revealed that the deviation of the values of the shareholders’ management resources from the indicators of the relative sizes of their packages of shares occurs as a result of the differentiation of the share capital. The specified dependence is proportional – the higher the capital differentiation is, the more significantly the available management resource of shareholder deviates from the nominal value of his package of shares, and vice versa. The indicator of share capital dispersion characterizes the degree (depth) of the division of the statutory share capital into separate parts (packages of shares). It has been found that this indicator by itself does not affect the implementation of the management function, i.e. it is indifferent (insensitive) to the parameters of establishing the management control in the company.

Corporate Governance Issues in a Pandemic Context

The economic effects of the pandemic, the financial difficulties of companies, but also the expectations of investors and other stakeholders are the prerequisites for implementing and strengthening corporate governance. The research has two components: the first component includes conceptual approaches to corporate governance. The second component includes qualitative research investigating specific aspects of corporate governance at the company level in the pandemic context. The results revealed heterogeneous approaches to corporate governance depending on the sector of activity of the companies and the typology of the corporate governance model.

Corporate governance in Ming & Qing China: evidence from Shanxi (Jin) merchants

ABSTRACT Shanxi (Jin) merchants are widely recognized as one of the most successful commercial groups in the Ming & Qing dynasties of China. They gradually built a unified and complete multi-level financial market which promoted the rapid development of early modern China’s finance sector and economy, and they hosted China’s premier financial center. Most accounts suggest their practices were of purely Chinese origin, and represent a remarkable case of parallel economic evolution with the West. This study argues that Shanxi merchants’ success is shown not only in their economic prosperity but also their impressive achievements in management. The success of Shanxi merchants should be attributed to their unique corporate governance model; specifically, their separation of ownership and management, professional manager system, use of personal shares, and joint shareholding system. We argue that their distinguished business ethics still have an extensive influence on China today.

Corporate governance of Islamic banks: a sustainable model to protect the participatory depositor?

The religious principles that characterize the Islamic bank have direct consequences on the models of Corporate Governance which, at the same time, must be in accordance with national and international regulations and best practices. The aim of this paper is to analyze the role of the participatory depositor in the Corporate Governance Models of the Islamic Bank, a special category of stakeholder that entrusts their savings to the Islamic Bank on the basis of the Profit and Loss Sharing principle. In the present study the models of Corporate Governance of the Islamic Bank, with regard to the protection of the interests of the participatory depositor, are analyzed through a comparative analysis of the regulations of the following Countries, Malaysia and Morocco. The objective is to highlight the strengths and weaknesses of the protection of the interests of affected stakeholders in order to verify the presence of a sustainable model of Corporate Governance, namely if the participatory depositor needs more guarantees than other categories of stakeholders.

Особенности модели российского корпоративного управления

Subject. A model of Russian corporate governance as a historical, geographical and business model for the development of organizational and legal forms. Goal. Highlight the features of the development of the Russian corporate governance model among other countries of the world. Method or methodology. In the process of achieving the goal, methods of analysis and synthesis, static calculations and expert assessments were used. To study the features of Russian corporate governance, special emphasis was placed on the comparative method in world statistics. Results of the work. The theoretical analysis carried out allowed us to conclude that it is possible to form our own model of corporate governance in Russia. Conclusions. The slowdown in economic growth in recent years and the functioning of corporations in the new conditions give rise to many problems in building an effective corporate governance system.

МОДЕЛІ КОРПОРАТИВНОГО УПРАВЛІННЯ: ПОРІВНЯЛЬНИЙ АНАЛІЗ МОДЕЛЕЙ УПРАВЛІННЯ АКЦІОНЕРНИМИ ТОВАРИСТВАМИ ТА ЇХ ВПЛИВ НА ЕФЕКТИВНІСТЬ

Corporate governance in joint stock companies is a key aspect of modern business, determining the efficiency and sustainability of companies. Given the globalization and the growing volume of world financial markets, the study of corporate governance models and their impact on efficiency is becoming an extremely important task. In this article, a comparative analysis of various models of corporate governance in joint-stock companies is carried out in order to determine their impact on the efficiency of such companies. The purpose of this study is to systematize and compare different models of corporate governance, as well as to determine their impact on the financial efficiency and sustainability of joint-stock companies. The object of the research is corporate management in jointstock companies. The subject of research is management models, including control mechanisms, ownership structures, and strategic decision-making methods. To achieve the goal, the following methods were used in this study. Systematic analysis of scholarly sources, including academic articles, books, and reports, to summarize existing theoretical approaches to corporate governance. Analysis of financial statements of joint-stock companies, using financial indicators to compare different management models and their impact on performance indicators. Survey of leading specialists and heads of corporations to obtain practical insight into the implementation of various management models. In the course of the study, the main models of corporate governance were identified and analyzed, such as the equity capital model, the "feedback" corporate governance model (stakeholder model) and others. With the help of a comparative analysis, it was determined which of them contribute to higher financial efficiency and stability of companies. Based on the research, it was determined that the "feedback" model of corporate governance improves efficiency and ensures greater sustainability of joint-stock companies compared to other models. The implementation of this model is recommended in order to increase the competitiveness and sustainability of corporations on the international market. The article offers an important contribution to the understanding of the impact of different models of corporate governance on the business environment and provides practical recommendations for enterprise managers and decision-makers regarding the choice of the optimal governance model.

Responsible business: the path to sustainability

The authors emphasize the significance of corporate social responsibility as a modern corporate governance tool, guiding the economy on the ESG-agenda. The article reveals the model of corporate governance as a viceprinciple for accomplishing the goals of sustainable growth, passing to green economy, outlines the constituent elements relevant for integration into the business strategy of the company. The authors pointed out the value of financial and non-financial information provided to users for the decision-making purposes. This study highlights the key aspect of corporate governance - responsible business, intended, on the one hand, for improving the organization's financial performance, on the other hand, to reducing operating costs through resources saving, facilitating the environment, employees and consumers care.

As dimensões que orientam a implementação de um Programa de Compliance

The present work intends to propose a three-dimensional analytical model of the legal institute of Compliance, due to the dependence of the interdisciplinarity between Law, Politics and Administration, so that it reaches its own effectiveness. The work will explore the laws, rules and concepts that establish compliance in Brazilian law in the last decade, will analyze the need to build commitments and political consensus around the institution of an administrative model of Corporate Governance, a contemporary administrative model by which the purposes of the Compliance align with the administrative purposes of institutions. Finally, the presentation of this model of analysis will try to indicate the nature of the interests in this recent change of perspective of the Capital of the 20th century. XXI, in opposition to the trends of the beginning of this century and of the past, trends whose effects are the generating factors of this new perspective of administration of the institutions of the capitalist society.&nbsp

Integration of CSR into CEOs’ compensation: effects on social and financial performance of French listed firms

Based on the stakeholder model of corporate governance, this research analyzes the relationship between the integration of corporate social responsibility (CSR) into CEO compensation and corporate social and financial performance, in firms listed on France’s SBF 120 stock market between 2015 and 2019. The results of panel data regressions show that indexing CEO compensation on CSR criteria only influence corporate social performance Moreover, social performance has a positive impact on financial performance and a mediating effect between the integration of CSR criteria into CEO compensation and financial performance.