Nexus Governance Research Articles

Financial Risk and Governance Nexus in Nepalese Cooperative Societies

This study aims to investigate the relationships between credit default risk, leverage risk, liquidity risk, and investment risk and their connection to the governance system of Nepalese cooperative societies. The research hypothesis tries to explore that these financial risks are not significantly associated with the governance system of cooperatives. The findings reveal a significant connection between the governance system of cooperatives and credit default risk, leverage risk, and investment risk. However, liquidity risk does not demonstrate a substantial link with the governance system, suggesting the influence of additional factors. These results underscore the pivotal role of effective governance in mitigating financial risks within cooperative societies. Interestingly, the lack of a significant connection between liquidity risk and the governance system implies that other factors are at play in influencing liquidity risk. These insights provide valuable guidance for policymakers and cooperative management, facilitating the enhancement of governance and risk management strategies, and ultimately contributing to the sustainability of cooperative societies in Nepal. The evaluation involves a comprehensive analysis of financial risks and the governance system in Nepalese cooperative societies, utilizing data from a sample of 126 cooperative societies in Kathmandu.

Navigating the capital investment through national governance in BRICS economies: the role of cash holdings

PurposeThe current analysis aims to explore the role of cash holdings in the nexus of national governance and capital investment (CIN).Design/methodology/approachTo achieve this aim, the authors sample the nonfinancial enterprises from 5 Brazil, Russia, India, China, South Africa (BRICS) economies and employ system generalized method of moments(GMM) models as an estimation technique.FindingsThe empirical analysis infers that national governance has a positive relationship with CIN and a negative relationship with cash holdings. The cash holdings negatively determine CIN. However, the cash holdings show a positive relationship with CIN in the presence of the national governance index (NGI).Research limitations/implicationsThe important policy layout of the current analysis is that corporate managers should reduce cash holdings during better governance situations. Alternatively, corporate managers can disentangle the negative impact of bad country governance conditions on CIN by holding more cash.Originality/valueThe study is innovative as it explores mediating impact of cash holdings in the NGI-CIN nexus.

Governing the nexus: Water-energy-food nexus governance strategies in Ghana and Uganda

The water-energy-food (WEF) nexus has emerged as a promising approach to achieving water, energy, and food security in an integrated manner in pursuit of sustainable development. Its governance is however a multisectoral, multistakeholder, and multilevel coordination challenge that is still elusive. Little agreement on what constitutes ‘successful’ WEF governance compound the challenge. This paper synthesizes normative, institutional, and procedural potential success factors or indicators from the WEF and other integrative environmental governance (IEG) literature and applies them to analyze the WEF nexus governance strategies of Ghana and Uganda. Literature review, key informant interviews, and stakeholder workshops were used to collect data. The results indicate that constitutional provisions and political commitment provide impetus for integrative WEF policies and legislations, yet long-term development plans rarely reflect the envisaged WEF integration. While WEF nexus thinking is still relatively poor in sectoral documents, the water sector is much ahead due to its dalliance with integrated water resources management (IWRM). Coordinating mechanisms such as intersectoral agencies, joint planning, enhanced communication, participation, and use of ex-ante assessments such as strategic environmental assessment (SEA) emerge as important success factors. However, political will and tradition is sometimes more effective than command and control policy tools. Ultimately, what works best depends on specific contexts, histories, and political economy. For broader adoption and application, introduction of integrative concepts in energy and food sectors, deliberate and active pursuit of WEF nexus integration across government, and involvement of all key WEF stakeholders is crucial. Such efforts can benefit greatly from the WEF nexus governance assessment indicators synthesized and applied in this study. Assessment of the participation and influence of key stakeholder groups, effectiveness of specific policy tools, and WEF nexus capacity needs are areas for future research.

Nexus of Corporate Governance and Organizational Performance: Evidence from Pakistan Stock Exchange

Nexus of Corporate Governance and Organizational Performance: Evidence from Pakistan Stock Exchange

Exploring Dynamics of Water, Energy, and Food Systems in Agricultural Landscapes Using Mental Modeling: A Case of Varamin Plain, Iran.

This study applies the mental model and cognitive mapping method to involve stakeholders in delineating the mutual relations between sources of water, energy, and food (WEF) production in the Varamin Plain (VP). Through involving farmers and managerial experts, the approach facilitates the deployment of community communication patterns to recognize and comprehend problems and move from single-loop learning to double-loop learning. The dynamic model was driven from the final mental model of the participants to reflect changes in the systems over time. The system dynamic (SD) model incorporates three scenarios for enhancing irrigation efficiency, managing groundwater extraction, and satisfying environmental needs. The results uncovered that the surface and underground water resources of the VP will gradually decrease within the next two decades in the range of 158 and 2700 million cubic meters (MCM) per year. Also, the plain suffers from water insecurity and a 162 MCM shortage. Consequently, focusing on understanding the nexus and nexus governance can enhance resource management and achieve sustainable development goals. Essentially, promoting collaborative governance, such as creating cooperative organizations and implementing double-loop learning, and instituting a water market, regulatory governance, and monitoring laws can improve the state of Varamin Plain's resources. These results carry important policy implications for using mental models to consider dynamics for discussions on participatory management of the WEF system nexus and environmental management.

A Proposal for A Canadian Government Speech Doctrine

How does section 2(b) law deal with factual scenarios entailing a close connection between government and expression, such that the public reasonably believes the speech in issue emanates from the government and not from a private individual? Foundational principles suggest section 2(b) has internal limits that prevent private speakers from co-opting the government’s voice. This paper reviews section 2(b) doctrine and reveals that existing law does not adequately facilitate consideration of this government nexus, resulting in confusion in lower courts on how to approach these factual scenarios. Drawing on American sources, this article proposes a solution: introduction of a “government speech doctrine.” Such a doctrine, properly modified to take into account the unique Canadian context, could bring conceptual clarity to this area of law.

Coupled development of the urban water-energy-food nexus: A systematic analysis of two megacities in China's Beijing-Tianjin-Hebei area

Promoting the coupled development of water, energy, and food (WEF) subsystems is a critical step to enhance synergies and increase efficiencies in the WEF nexus. However, the evolution and obstacles of coupled development are largely ignored. This study developed a framework dividing links in the nexus to select indicators and integrated models for the degree of coordination and obstacle diagnosis to explore the coupled development of the WEF nexus from 2000 to 2020 in the water-scarce megacities of Beijing and Tianjin. The results show that the average coordination degree of the WEF nexus in Beijing (0.315) and Tianjin (0.317) is at a low level, indicating a limited interaction between the WEF subsystems, while the coordinated development degree of the WEF nexus is increasing. The order degree of the WEF subsystems shows a two-level hierarchical structure, indicating that both similarities and differences are included in place-specific characteristics. Furthermore, obstacle factors are identified from water and energy subsystems, in which environmental water use (W3) and the energy consumption per gross domestic production unit (E4) played the most significant roles and require a higher priority in policy response. The results in this paper complement obstacle factor analysis in WEF nexus practice, and provide operational indicators for nexus governance.

A Nexus of Defense and Security Governance in the Framework of Contemporary Managerial Trends

Abstract The article contains a literature review of the most relevant and important trends in contemporary management and, based on this background, some possible directions for determining how to run processes specific to defense organizations are highlighted. As methodological framing, an applied research (information collection using Web of science and bibliometric processing to build the conceptual picture of management trends) and exploratory (in terms of purpose) was intended to determine the impact of contemporary management trends in the military. The work is of interest both for researchers in the field of general management for the understanding of some managerial peculiarities of the military organization but also for military specialists for a better awareness of the need and usefulness of scientific investigation of some specific aspects, at the same time also of the military science, considering the framing of the military domain in the social macro-field. It was also taken into account the fact widely accepted by scholars that in the history of management, on several occasions, some authors have considered the military organization as a managerial model.

The Role of Governance in Achieving Sustainability in Family-Owned Business: Do Responsible Innovation and Entrepreneurial Culture Matter?

Research on family business sustainability has seen a surge over the last decade. Despite this, very little research has been performed to investigate the impact of governance on family business sustainability. Building on this gap, this paper empirically examines the impacts from organizational governance and responsible innovation on the sustainability of family-owned businesses. It also evaluates entrepreneurial culture’s contribution as a moderator of the nexus of organizational governance, responsible innovation, and business sustainability in Saudi Arabia. A sample of 396 responses were collected from 87 family enterprises; respondents were generally principal managers and/or main business owners. The relationships in the conceptual model were tested with structural equation modelling using SmartPLS. The results show that organizational governance and responsible innovation positively and statistically significantly impact business sustainability among family-owned businesses in Saudi Arabia. Furthermore, entrepreneurial culture significantly and positively moderates the organizational governance, responsible innovation and business sustainability of family-owned businesses in Saudi Arabia. The results guide regulators in regulation formulation related to the achievement of business sustainability through good governance and effective entrepreneurial culture. Government and regulatory authorities must therefore encourage family-owned businesses in their predominantly economic functions in society, while also engaging in sustainability-oriented policy making and programs.

Inclusive Human Development and Governance Nexus: Causality Analysis of Selected Asian Countries

This study investigates the role of governance in inclusive human development in the case of twenty-four selected Asian countries, using panel data for the time period from 2010 to 2017. The inequality-adjusted human development index, developed by the United Nation Development Program, has been used as a proxy for inclusive human development. In addition, six indicators of governance have been used as independent variables in a regression model, along with three control variables. We have tested the stationarity of our data using panel unit root tests such as Leviv-Lin-Chu and Augmented Dickey Fuller. The Pearson correlation matrix helps us find out the correlation among variables. The findings show a mixed level of correlation among the variables (i.e., high, low, and moderate). Furthermore, our results show that a strong causal relationship among the variables exists. One of the most important findings is that there is bi-directional causality between the inclusive human development index (IHDI) and development expenditure. The IHDI causes more government investment in development projects, whereas more development expenditure in the country achieves a higher IHDI. Trade openness and development expenditure have a bi-directional causal relationship. Finally, economic governance causes political governance in the case of our selected Asian countries.

Governance towards coordination for water resources management: The effect of governance modes

Integrated Water Resource Management relies intensive coordination, vertically across different levels of government and horizontally across policy sectors, as many decisions affecting water resources are taken outside the water sector (e.g., in agriculture, industry). Coordination problems across levels and sectors may arise due to incompatibilities of governance modes – coordinative mechanisms ranging from hierarchy, network, to market mode – employed in the often fragmented water policy domain. This paper contributes to the discussion departing from the overarching hypothesis that synergistic interplay of governance modes rather than the dominance of a single mode supports coordination. This hypothesis is rooted in the assumption that given the plurality of state and non-state actors in water governance, who are entangled in formal and informal relationships, neither the dominance of hierarchical control, market competition, nor collaboration in networks alone is capable to ensure coordination results as different modes are appropriate for different relationships within the sector. Coordination processes and results, therefore depend on the synergistic interplay between the governance modes employed. The paper presents case studies from Germany, Mongolia, South Africa, and Spain, which face different cross-sector coordination challenges. Our findings suggest that despite policy reforms for integrated water and environmental governance, hierarchy prevails in formal provisions and practices to differing degrees. We find evidence that synergistic interplay between governance modes supports horizontal coordination, which is necessary for solving nexus governance challenges. However, synergistic interplay is not sufficient to translate coordination practices to coordination outcomes. Factors such as leadership and conflicts powerfully influence the translation as well.

Introduction

Scholarly and public interest in the nexus of capitalism and global governance has intensified in recent years. The persistence of economic inequality, the rise of populism, the backlash against globalization, the Covid-19 pandemic and supply chain fragility, the resurgence of open conflict in Europe, and the urgency of the climate change crisis have only drawn further attention to the relationships of markets and trade to norms and institutions. Solutions to many of these challenges, which are closely tied to capitalist dynamics, require interventions on a scale that only institutions of global governance can provide. At the same time, these challenges compromise governance institutions by making them susceptible to private influence. Moreover, critics have raised alarm about the ways some forms of global governance – such as powerful philanthropic institutions, private summitry forums, and international organizations that enforce economic globalization on nation-states – evade democratic accountability. Such developments have prompted scholars to analyze the entangled histories of capitalism and global governance and the evolution of the global economy and its regulation as well as collective efforts to provide for the well-being of humans and their environments.

A No-Bailout Event and the Regional Bank–Government Nexus—Evidence from Negotiable Certificates of Deposit and Sub-National Bonds in China

A No-Bailout Event and the Regional Bank–Government Nexus—Evidence from Negotiable Certificates of Deposit and Sub-National Bonds in China

Public perceptions of governance and tax evasion: insights from developed and developing economies

Purpose This paper aims to explore how the role of the perception of good public governance reduces tax evasion (TE). Besides, this study investigates whether the nexus of public governance and TE differs between developed and developing economies. Design/methodology/approach Apart from the ordinary least squares (OLS) model, this study uses the linear mixed modeling technique. The World Governance Indicators and the multiple causes estimation (MIMIC) method are used to measure public governance. The shadow economy is used as a proxy for TE. Findings The results show that people's perceptions of public governance and the quality of government institutions are core elements that influence tax-evasion behavior. Besides, the rule of law (RoL) and political stability (PS) significantly impact tax-evasion behavior in developing countries. Nevertheless, the RoL, the control of corruption and PS are the most critical tax-evasion determinants among public governance indicators for developed countries. Regulatory quality shows a substantial positive relationship with TE in developed but not developing countries. Practical implications This paper provides a guide for policymakers on reducing tax-evasion behavior by paying more attention to maintaining the RoL and PS and fighting corruption. Additionally, this study highlights the importance of people's perceptions of the government's pursuit of the above policy-related improvements, which, in turn, affect their tax behavior. Originality/value To the best of the authors’ knowledge, this study is the first to explore the role of people's perceptions of improvements in public governance and how this can reduce TE behavior in developed and developing economies. Unlike prior studies, this study used the linear mixed model method, which is more advantageous than OLS and produces robust estimators.

Towards planetary nexus governance in the Anthropocene: An earth system law perspective

AbstractNexus governance recognises that sustainability concerns such as water, energy, and food security are interlinked and provides an alternative to fragmented governance. Although it has been applied mostly in the domestic context, the need for nexus governance is also apparent at a planetary scale, as highlighted by interacting planetary boundaries, global telecoupling, and global tipping cascades. However, international environmental law is unable to facilitate what we call ‘planetary nexus governance’. This is mainly because international environmental law lacks an ecological Grundnorm and because its primary rules of conduct remain fragmented in the absence of effective secondary rules on how primary rules should relate to each other. Recognising this challenge, scholars have recently proposed earth system law as a new framework to rethink, in an integrated way, law in an Anthropocene context. Building on this framework, we suggest that international environmental law should adopt a unifying Grundnorm such as planetary integrity. We also suggest that international institutional law, as a body of secondary rules, has an important role to play in facilitating planetary nexus governance by bringing together fragmented bodies of international law. We briefly discuss ways in which international environmental law could reorientate itself to better facilitate planetary nexus governance.

Corporate governance and leverage on firm value: Evidence of Indonesian large firms

This paper aims at the nexus of corporate governance, leverage, and firm value of selected Indonesian large firms in the 2014-2019 period. Specifically, the study is concerned about the effect of independent commissioner board size, institutional ownership, and audit committee size as proxies of corporate governance on firm value. The controlling variables are leverage and firm age. Panel regression analyzed secondary data collected from the LQ-45 index at Indonesia Stock Exchange firms as the large firms. The findings show that institutional ownership positively impacted firm value. However, the independent commissioner and audit committee exerted insignificant influence. The study results further showed that firm age and leverage significantly negatively impact firm value, respectively. Decisively, findings from this paper reflect that corporate governance positively influences firm value significantly. The study recommended that corporate governance dynamics in firms be empowered and re-examined, especially the audit committee's effectiveness. Both firm age and leverage do not affect productivity and firm value. The audit committee's role is more than optimal in carrying out the supervisory and control functions of the corporate management so that the responsibility of the management is considered transparent and results in an increase in shareholder trust. It is also recommended that the increase in firm age and excessive leverage be balanced with the creation of innovation and productivity of large firms.

Foreign Direct Investment Inflows and Governance Nexus: Evidence from the United States, China, and Singapore

This study investigates the relationship between inward foreign direct investment inflows and governance of the United States, China, and Singapore. The study employs governance indicators including control of corruption, government effectiveness, regulatory quality, political stability and the absence of violence, rule of law, voice, and accountability to examine the relationship between inward foreign direct investment flows and governance for the period 2002–2019. The baseline regression results are based on bivariate and multivariate regressions with fixed effects. The results confirm a direct and significant relationship between governance and foreign direct investment. The results are robust while applying other regression techniques such as Prais–Winsten regression, Driscoll–Kraay regression, and a two-step system generalized method of moments’ estimation. More specifically, all six governance indicators including control of corruption, government effectiveness, regulatory quality, political stability and the absence of violence, rule of law, voice, and accountability exhibit the same i.e., direct and significant relationship. The paper also suggests various recommendations for investors at the individual and country levels.

Accounting Standards as a Moderating Stimulus on the Nexus between the Corporate Governance and Accounting Conservatism: Insights from the Emerging Market Economy

This study aims to investigate the moderating influence of accounting standards on the relationship between corporate governance and accounting conservatism in the financial statements of firms in the Islamic Republic of Pakistan. A sample of the seventy most active nonfinancial firms for the period 2009-2021 is used for hypothesis testing. The corporate governance mechanisms used in this study cover ownership structure, and board characteristics. Data of relevant variables have been obtained from the open door for all, PSX, and sites of SBP. Panel data methodology has been employed to ensure the influence of corporate governance on conservatism in presence of accounting standards used as a moderator. The findings of the first model (direct effect) in this study indicate that managerial ownership, Institutional ownership, board attendance, board independence, and board diversity have a significant positive association whereas, foreign ownership has a negative significant relationship with conservatism. The findings of the second model (moderating effect) show that accounting standards positively moderate the nexus of corporate governance and conservatism. The study's findings are significant for a think tank that develops policies for the corporate sector in Pakistan to focus on governance, conservative accounting principles, and accounting standards for discouraging agency problems and information asymmetry.

Experimenting with automated driving for technology or for the city? A matter of governance cultures

Urban experiments have been promoted as means to enable innovation for sustainability, particularly in urban mobility. Yet, they have been criticized for struggling to stimulate broader transformations, as they often are detached from public-value principles, lack embeddedness in the cities' everyday realities and are industry-oriented. How cultural changes on different governance levels intersect to produce urban experiments with transformative potential has received little attention. This paper focuses on how urban experiments are co-created with broader governance cultures in multiple governance levels, and what the implications of this co-creation are for urban transformation. We provide a theoretical background on the interrelations between governance cultures and urban experimentation, and the debate on urban experimentation within Science and Technology Studies, transition/innovation studies and urban studies to identify the main barriers for urban transformation. We, then, present our methodology consisting of the case study selection of the multi-level governance nexus State-Region-City in Stuttgart and Karlsruhe, our data collection with interviews and documents, and the analytical tool of storylines to capture the co-production of governance cultures and urban experiments. We continue with the analysis of the case study of automated driving experimentation with the concept of storylines. Our findings show that urban experiments are more likely to lead to urban transformation when the local public sector has a strong role in governance processes, and when experiments emerge through deliberation on daily urban problems and policy agendas. When governance processes are mainly led by state and industry actors who prioritize testing technologies as universal and scalable byproducts, it is less likely for urban experiments to lead to urban transformation. Finally, we discuss when urban experimentation advances technologyper seand when it adds public value and advances sustainability, arguing for a co-existence of different kinds of urban experiments. We conclude with future research and policy implications.

A Societal Metabolism Approach to Effectively Analyze the Water–Energy–Food Nexus in an Agricultural Transboundary River Basin

We implemented the semantically open conceptual framework ‘Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism’ (MuSIASEM) to deal with nexus challenges in agricultural production systems in transboundary river basins, using the Iranian Aras River Basin as a case study. The performance of the agricultural sector was characterized for relevant typologies of crop production using metabolic profiles, i.e., inputs and outputs per ton of crop produced, per hectare of land use, and per hour of labor. This analysis was contextualized across hierarchical levels of analysis, including the agronomic context at the regional level (rainfed versus irrigated cultivation), the socio-economic and political context at the national level (food sovereignty; urbanization), and the hydro-ecological context of the larger transboundary river basin (water constraints, GHG emissions). We found that the simultaneous use of two different interrelated logics of aggregation—the productivity of land and labor (relevant for the agronomic and socio-economic dimension) and the density of flows under different land uses (relevant for the hydrological and ecological dimension)—allowed for the identification of trade-offs in policy deliberations. In the case of Iran, it showed that striving for strategic autonomy will exacerbate the current water crisis; with the current cropping patterns, agronomic improvements will not suffice to avert a water crisis. It was concluded that the proposed approach fills an important gap in nexus research, but to effectively guide nexus governance in the region, a co-production of the analysis with social actors as well as more complete data sets at the river basin level would be essential.