Role Of Governance Factors Research Articles

Analysis of changes in corporate external guarantee behavior and the role of governance factors under economic policy uncertainty

This study utilizes quarterly data from China's A-share listed companies spanning the years 2010 to 2022 to investigate how economic policy uncertainty influences corporate external guarantee practices. The findings reveal that as economic policy uncertainty escalates, corporations tend to broaden the scope of their external guarantees. The underlying mechanism suggests that, firstly, banks respond to heightened economic policy uncertainty by elevating credit financing thresholds and restricting credit supply. Secondly, corporations, impacted by the broader macroeconomic environment, experience a decline in profitability and liquidity, prompting them to increase external guarantee activities as a means of securing external financing. Notably, for corporations with more proficient boards and stronger operational capabilities, the influence of economic policy uncertainty on their external guarantee practices is comparatively diminished.

Corporate venture capital: The role of governance factors

Research on corporate venture capital (CVC) has consistently proven its importance for innovation and other strategic goals, yet information on the antecedents of CVC activity is scarce. This study provides theoretical arguments for the role of governance factors including board, CEO, and institutional ownership characteristics. Empirical evidence from an international sample of global CVC investments shows that factors such as having a board with multiple board mandates and institutional ownership are important factors for CVC activity. The conclusion is that the role of governance factors is important, and that subsequent research should not ignore this group of factors.