One-tier System Research Articles

Standardized corporate social responsibility disclosure, assurance, and real earnings management: evidence from developing countries

Research aims: This study aims to present empirical evidence on the effect of social responsibility disclosure on real earnings management and the role of assurance in this relationship. This is based on a paradox, i.e., companies that publish standardized corporate social responsibility disclosures to project ethical business practices are also associated with accounting and financial scandals.Design/Methodology/Approach: This study was conducted on non-financial sector companies in developing countries that are members of ASEAN-4, namely Indonesia, Malaysia, Thailand, and the Philippines, which issued GRI-based social responsibility disclosures in the period 2013-2019, amounting to 285 companies with a total of 859 observations.Research findings: The results demonstrated that companies with standardized social responsibility disclosures tend to reduce their real earnings management practices. However, the assurance variable mitigates the negative effect of corporate social responsibility on real earnings management, implying that assurance provides false credibility. In an additional analysis, the samples were grouped based on board structure. The findings of this study are consistent with two-tier board structures, suggesting that a one-tier system provides better information quality.Theoretical contribution/Originality: The originality of this study lies in a comprehensive measurement of social responsibility disclosure variables using an index that gauges a combination of accountability and performance aspects. Furthermore, this study takes into account assurance as a variable representing the credibility of information, which surprisingly moderates the negative effect of social responsibility disclosure on real earnings management.Practitioner/Policy implication: The findings of this study underscore the importance of standardized social responsibility disclosure in mitigating managerial opportunistic behavior. The findings also highlight the need to enhance the assurance function to prevent its use as an opportunistic management tactic.

Two-Tier NOMA-Based Wireless Powered Communication Networks

In this article, we investigate two-tier nonorthogonal multiple access (NOMA)-based wireless powered communication networks. The considered network consists of a hybrid access point and two groups of users, namely near and far users. A near user and a far user are selected to form a NOMA pair, which harvest energy during the downlink phase and transmit information during the uplink phase. Specifically, we consider two cases of energy-transfer time and analyze the corresponding performance. We first analyze the performance of the case with fixed energy-transfer time and derive the exact expression for the ergodic rate. Due to the doubly near-far effect, the far user experiences poor performance. To address this issue, an adaptive energy-transfer time scheme is designed by maximizing the far user’s data rate, and the optimal solution is derived. To reduce the system complexity, a suboptimal solution is proposed, and the ergodic rate's exact expression is derived. Simulation results reveal that the suboptimal solution achieves near-optimal performance and has a lower computational complexity. Moreover, a one-tier NOMA network is set to be a benchmark, and numerical results show that the two-tier system outperforms the one-tier system significantly under the appropriate radius setting.

Transformation of Territorial Organization of Local Self-Governance in the Irkutsk Region: Based on the Materials of the Round Table Discussion within the Framework of the II International Baikal Forum

The new step in the ongoing local self-governance reform today once again forces us to reassess the role and significance of the institution of local self-governance in Russia. The current stage involves searching for a new and more effective model of territorial organization of local self-government. In February 2022, a draft law "On the general principles of organization of local self-governance in a unified system of public authority" was submitted for consideration to the State Duma of the Russian Federation. The key point of the draft law concerning the territorial organization of local self-governance is a return to a one-tier system with the fundamental principle of being "based on the population" rather than on the territory. The results of the round table discussion "Transformation of territorial local self-governance in a unified system of public authority and other relevant issues of local self-governance" held on April 22, 2022 within the framework of II International Baikal Forum are given. Amendments to the draft law were proposed, which would consolidate and strengthen the constitutional foundations and principles of local self-governance in accordance with the regional specifics regarding development of the constituent entities of the Russian Federation.

The role of corporate governance in increasing risk reporting: A comparative study of emerging markets companies

The purpose of this study is to explore the level of presentation of risk information reports called risk reporting (RR) in the annual reports of Indonesian and Malaysian non-financial companies. In addition, this study aims to empirically examine the role of corporate governance (CG) in presenting RR and compare its role in the two countries. The method used in this study is content analysis with 113 samples of Indonesian companies and 70 Malaysian companies. The results showed that the board of directors (BD) of Indonesian companies represented by the board of commissioners and independent commissioners and the boards of Malaysian companies represented by the board of directors and independent directors had the same role, in line with the research of Yubiharto and Rudianti (2021), and Yermack (1996). However, in Indonesia, it plays a role in increasing the number of RRs, while in Malaysia, it is the opposite. The results of this research are also preliminary evidence that there is a difference in the role of the CG structure, which is a two-tier and one-tier system.

Limited Liability Principle to One-Tier System in Individual Company

The purpose of this study is to describe and analyze the characteristics of the one-tier system in an individual company following the enactment of Law Number 11 of 2020 concerning Job Creation (UU Cipta Kerja) and to analyze the legality of the principle of limited liability to the one-tier system in an individual individual company after the enactment of Law Number 11 of 2020 on Job Creation. The method used in this legal research is a normative method with a statute approach. Characteristics that can be seen from the one-tier system in this individual company includes, inter alia the establishment, capital, organs, shareholders and responsibilities. Meanwhile, the legality of the limited liability principal of the one tier system in an individual company can be seen in Article 153J paragraph (1) of the Job Creation Law, where it clearly states that principal. However, the limited liability system can only be apply to the one tier system in an individual company, as long as it obliges to the Article 153J paragraph (2) of the Job Creation Law.

Green last mile distribution system: Heterogeneous fleet vehicle routing problem with time window and external cost

The development of e-commerce business in Jakarta, Indonesia, in recent years has made the Last Mile Delivery (LMD) business sector develop rapidly. Increased demand for LMD makes the resulting kilometer trips even greater, resulting in negative externalities. On the other hand, logistics costs in Indonesia are only affected by vehicle operating costs and no external cost component. Optimization of LMD services that take into account internal and external costs is needed to minimize the total cost of LMD and in reducing the impact of negative externalities. The purpose of this paper is to optimize the LMD distribution system on the Heterogeneous Fleet Vehicle Routing Problem with Time Window and External Costs (HFVRPTW-EC) models. The optimization is done by applying the HFVRPTW-EC model using data from one of the parcel deliveries companies in Jakarta and then doing a simulation by forming several operational scenarios. The results show that the optimization of LMD has reduced internal and external costs by more than 50% compared to existing conditions. The detailed results show that, for the short-term program, a scenario with a one-tier distribution system and type of motorcycle vehicle can reduce total costs compared to existing conditions by 66.22% on a peak day and 59.41% on off-peak day. Whereas for long-term program optimization, scenarios with multiple tier distribution systems and types of motorized vehicles for drop mileage and pick up truck for stem mileage can reduce total costs by 69.23% on a peak day and 60.24% on off-peak day.

Optimum Board Size to Achieve Optimal Performance in Indonesia

The aim of this paper is to review the role of board size as part of the corporate governance system. This paper discusses one aspect of corporate governance, namely, boards, in the Indonesian context. Using the literature review method, this paper explores factors that need to be considered to determine the optimal number of boards, especially in Indonesia. We explore some determinants of board size, such as complexity and leverage, ownership structure, and financial ratio support. The results reveal that an understanding of the differences found in the two-tier board model helps us understand that the different functions of the board of commissioners and the board of directors require different test treatments from countries that adhere to one-tier systems. A review of the relationship between board size and company performance is expected to provide the corporate governance literature with insights into optimizing the sizes of boards that can improve company performance, both in terms of boards of commissioners and boards of directors. This paper proposes the simultaneous testing of board size's relationship with company performance. The results of this study are expected to make a more real contribution about the effect of board size on company performance.

The Influence of CEO Hubris on Firm Performance in Indonesia: The Moderating Effects of CEO Power and Board Vigilance

Past studies on CEO hubris has found that board vigilance is effective in managing the negative outcome of hubris. Some studies found CEO non-duality and independent director representation are effective in decreasing the damage of hubris. However, these studies have only explored the causal relationship of hubris and firm performance in the one-tier corporate governance setting. This study analyzed the influence of CEO hubris on firm performance in Indonesia by taking into account the CEO-board power dynamics. Indonesia adopts the two-tier corporate system where the board is divided into the board of directors and commissioners. Through 99 public listed companies, this study found that hubris in Indonesian CEOs contributes well to firm performance. Moreover, a bigger commissioner board is effective in strengthening the positive influence of hubris on firm performance in Indonesia. Furthermore, this study hints that two-tier corporate governance is more efficient in controlling hubris than the one-tier system.

The Two-Tier System of the European Economic Structures

Abstract European Union acts empower cross-border economic association entities to determine the architecture of the emerging legal entities by themselves. As a manifestation of corporate democracy, the General Meeting, which is the highest authority of the company, can independently choose the form of management. It could be either a two-tier system (a supervisory body and a management body), or a one-tier system (an administrative body). To a certain extent, the choice is determined by the national laws on joint-stock companies and cooperatives. The subject of the analysis is the legal state of the two bodies in the two-tier system. The relationships between them are examined in the light of the European Union and the member states’ legislative regulations. The management body shall be responsible for managing the company. The catalogue/list of its powers includes all the segments of possible activities in its entirety. The compendium of management competences covers issues of strategic development, long-term and medium-term planning, technical and technological problems, the organizational and functional structure, the implementation of the financial plan, etc. A member or members of the management body shall be appointed and removed by the supervisory body. The supervisory body shall supervise the work of the management body. It may not itself exercise the power to manage. The members of the supervisory body shall be appointed by the General Meeting.

Governance Innovation and Enhancement: The New One-Tier Model of UBI Banca

On the basis of their experience and capitalism model, every country has developed different systems of corporate governance. For many years, in various European countries, there were debates on the opportunities and methods of harmonising European company law; in Italy, one of the most important change was the possibility for limited companies to choose between three management and supervision models: the Italian traditional model, the two-tier model (of German origin), and the one-tier model (of Anglo-Saxon origin). In our study we analyse one-tier and two-tier systems, first theoretically and legislatively and theirs application in Italian quoted companies in the banking sector. We selected this sector because limited banking companies were created in Italy in a recently period (2006-2007), as a result of national amalgamation and merger operation. We illustrate an important case in depth, namely the governance system at UBI Banca as a phenomenological case. Main study’s objective is to analyse transition of UBI Banca from the two-tier model (2007) to the one-tier model (2018), identifying the main causes and reasons for this choice.

Der aktienrechtliche Aufsichtsrat im internationalen Vergleich

All major legal systems, in particular those of Russia, Germany, USA, UK and France, know the legal form of corporation. But the corporate structure differs significantly, depending on the applicable national law. Whereas German law applies a two-tier system, consisting of two corporate boards, the UK and the USA use a one-tier system and Russia and France adopt a mix of both systems. This article analyses the different corporate structures, shows their respective reasoning, points out legal inconsistencies and suggests possible solutions.

Does CEO power moderate the link between ESG performance and financial performance?

PurposeBased on stakeholder and upper echelons theory, this study aims to analyze whether the link between environmental, social and governance (ESG) performance and financial performance is moderated by chief executive officer (CEO) power.Design/methodology/approachListed corporations with reference to the German two-tier system (HDAX and SDAX) for the business years 2010-2018 (775 firm-year observations) have been included. Fixed effects panel regression analysis was conducted to analyze the link between ESG performance (in total and its three pillars) and financial performance (ROA), with special reference to the interaction of a CEO power index.FindingsWhile ESG performance has a positive impact on financial performance, the link is more pronounced by CEO power. Thus, in line with prior research on the one-tier system, CEO incentives can positively contribute to the CSR-business case in the German two-tier system. The results remain constant after conducting several robustness checks.Originality/valueA key contribution to the empirical CSR literature can be stated, as the moderating role of CEO power in the ESG–financial performance link is rather neglected in prior studies. Thus, corporate governance and sustainability should be classified as interactive aspects for the business case of a successful stakeholder management.

Uticaj anglosaksonskog prava na srpsko kompanijsko pravo

U ovom radu autor analizira anglosaksonske pravne institute koji su kao pravni transplanti postali deo srpskog kompanijskog prava. Od brojnih anglosaksonskih rešenja, kao ilustrativni primeri pravne transplantacije su izabrani sledeći: a) dužnosti direktora, b) derivativna tužba, c) jednodomno upravljanje, i d) probijanje pravne ličnosti. Iako je svaki od izloženih pravnih instituta danas opšteprihvaćen deo globalnog kompanijskog prava, ipak u srpskom pravu postoje teškoće sa njihovom adaptacijom i efikasnom primenom u postojećem regulatornom i privrednom okruženju. Iz tog razloga se anglosaksonski instituti u srpskom pravu ili nedovoljno ili nepravilno primenjuju. S obzirom na to da je uticaj anglosaksonskog prava u oblasti kompanijskog prava nesporno poželjan i koristan, autor zaključuje da je za potpuni uspeh i pravilno prihvatanje preuzetih rešenja pre svega neophodan dalji razvoj sprske pravne misli kroz uporednopravne analize koje će približiti našu pravnu teoriju i praksu vodećim pravnim sistemima.

One- or Two-tier Board System? A Comparative Analysis of the British and Polish Systems of Corporate Governance

Corporate literature and practice reveal that neither the British one-tier nor the Polish two-tier board system is entirely safe for business participants. This article considers the implementation of a one-tier board system in Poland to be an alternative to the currently binding one, in addition to increasing the number of independent supervisors on supervisory boards.

Interdependencies between corporate governance and financial audit: evidence from the Romanian Stock Exchange

The purpose of this research is to provide evidence about the relationship between the financial audit and corporate governance indicators. The study uses data from entities listed on the Bucharest Stock Exchange in Romania, which have both a one-tier system and a two-tier system management. The study aims to detect the interdependencies between financial audit (measured through the audit fees) and specific corporate governance indicators, such as the CEO/chair duality, the existence of the audit committee, the number of executive members from the board of directors or other characteristics of the board that are part of the corporate governance process. As there is a correlation between audit and corporate governance indicators, the research is conducted using a simultaneous equation model for the listed entities that have an obligation to report their individual financial statements using the IFRS approach. The data is manually collected from both the entity’s individual financial statements and corporate governance statement. The results showed mixt evidence. While there is a negative relationship between the audit fees and the number of executive board members, ambiguous results are found for the other board characteristics. The explanation can be attributed to the fact that there is an important problem regarding data availability on the Romanian market and to a lack of transparency in the reporting process.

The Impact of Supervisory Board Composition on CSR Reporting. Evidence from the German Two-Tier System

Corporate social responsibility (CSR) reporting is becoming increasingly relevant in light of modern corporate governance. There is growing activity among empirical research in one-tier systems that considers the link between board composition and CSR reporting. This study is the first of its kind on the German two-tier system with special regard for the supervisory board. We analyze gender diversity, expertise, the presence of former managers, frequency of meetings, and the size of the supervisory board. Our multiple regressions indicate that gender diversity has a positive impact on CSR disclosure intensity, which is in line with prior studies on one-tier systems. Our findings have implications for both users and public policy and suggest that current European corporate governance regulations could help to increase the decision usefulness of CSR reporting.

Indian Versus Canadian Health Care Systems And Policy: A Review Based On Barr's Model Of Health Care Governance

Abstract The health care systems of India and Canada are founded on different principles, and continue to be shaped by social factors, economic influences, population demographics, and health care policies. In comparing the primary challenges of the Indian and Canadian health care systems, this review examines the broader context of private and public health care. This review uses a structured, transparent, and unique approach to analyze the available literature in the field of public health, based on the five primary aspects of health policy encompassed within Barr’s framework. In consideration of published literature and reports, this review explores how Canada’s one-tier system continues to experience issues relating to waiting times and specialist access. It also identifies challenges in India’s two-tier health care system, ranging from an overdependence on the private system to a significant lack of regulation on a federal scale, leading to shortcomings in the quality of care and accountability. In considering the literature and assessments of health care within Barr’s framework, this study makes several recommendations which encompass the optimization of health care systems to service Canada’s aging population and India’s expanding young population.

Complementary Factors of Formation of Electoral Activity in the Territorial Political System of Portugal

The article continues a comparative study on the determination of the cycles of evolution of electoral and geographic space in the countries of developed democracy. The cycle of evolution is expressed by the changing models of complementary activity of voters and depends on the form of government, party and electoral systems, etc. The subject of research is the electoral activity of the population of Portugal after 1975, by the country and by territorial districts, along with the circumstances that affect its level. It is established that in Portugal, list-number of voters is a factor having a downward effect on the index of electoral activity. In this country the list-number of voters greatly exceeds demo-migratory proportion. This circumstance is conditional upon the sustainable interests of territories, that does not permit reducing the number of elected representatives of those territories in the framework of a constitutional maximal number of members of Parliament and one-tier system of converting a list-number of voters in seats in elected bodies. At the regional level under the organization of national elections the principle of territorial representation dominates. The second feature of the country is that demographically unreasonable increase in the list-number of voters in Portugal is correlated with administrative-political interests of the regions and with their sizes. Historically feature of Portugal as a territorial unit of a global political space is the so-called “diaspora expansion.” Activity in the elections showed that the political preferences of external electors are represented in Parliament weightier than the preferences of the residents inside the country. Inside the country the trend “the more populous district, the higher the turnout” emerges with time. The Portuguese model of complementary activity does not reflect the interparty transitions of power. Before the reform of 1991 the chaotic interweaving of mutually reinforcing factors took place. After 1991, there is a stable dominance of the group of middle regions. The specific trend of complementary activity of regions indicates the completion of the two-disc cyclicity of the evolution of electoral and geographical space.

Managerialism in Germany and centralism in Iran: Two tier board, one tier control in Germany and one tier board, two tier control in Iran

What are the similarities and differences between the corporate governance laws in Iran and Germany? Which is more compatible with the requirements of control? In comparison to the managerialism in Germany there is some kind of directorialism in Iran which works as a means of centralism in this country. Decision making, enforcement and inspector-ship are not duly separated from each other in Germany. Key words: Corporate governance, Germany, Iran, two-tier system, one-tier system.

A Higher Education Quality Assurance Model for Small States: The Maldives Case Study

This paper presents findings of a case study in the Maldives of a holistic quality assurance model for higher education in Small States. Although case study is situated in the Maldives, an example of a Small State, the findings provided useful reference for policy makers, practitioners and professionals in other Small States. The study draws on a systems theory to investigate the systemic characteristics of quality assurance in higher education. It is a qualitative case study based and includes the use of document analysis and interviews data. The preliminary findings indicate that regulatory mechanisms, independence, one-tier system, guidelines and standards, transparency, academic audit, accreditation and collaboration emerged as critical areas for the system of quality assurance in higher education for Small States. Some of the mechanisms used by bigger nations to address the above critical areas may not be appropriate for Small States, adding weight to the ‘fit for purpose’ definition of quality. Keywords - Higher education accreditation, Higher education quality indicators, Standards of higher education, higher education quality regulations, Programme accreditation, institutional accreditation, institutional audit.