Role Of Institutional Environment Research Articles

International Joint Venture Governance Mechanisms: The Role of Institutional Environment on Contract Design

International Joint Venture Governance Mechanisms: The Role of Institutional Environment on Contract Design

Role of Institutional Environment in Enhancing Confidence among Female Students at University Level

The study focused on how the institutional environment affects the confidence of female undergraduate students studying social sciences (BS Education and Economics) and natural sciences (BS Botany and Zoology) at Women's University and Bahauddin Zakriya University. The study, which included the whole population of 355 natural sciences and 248 social sciences students, used a stratified random sampling technique, yielding a sample size of 196 and 152 individuals from each department. A self-developed questionnaire with 27 items and three criteria was used, encompassing topics such as institutional laws, personal strength awareness, and a sense of belonging. Descriptive statistics, such as percentage, mean, and standard deviation, were utilised to assess the data acquired during validation and pilot testing. Additionally, deductive statistics, such as the T-test, were used to test null hypotheses. The findings provided information on the perceived influence of institutional elements on female students' confidence in both academic fields. Overall, the study used a rigorous and methodical approach to investigating the research objectives, integrating quantitative and deductive methodologies to produce a full grasp of the issue.

Firm-level media news, bank loans, and the role of institutional environments

Employing an international sample of bank loans from 37 countries, we find that both borrowers' intensive media coverage and positive media sentiment reduce the interest rate spreads on bank loans. In syndicated lending, positive media sentiment increases the likelihood of a non-relationship bank leading or participating in a loan syndicate and decreases the loan share of the lead arranger. Furthermore, we demonstrate that the negative impact of media news on loan spreads is more pronounced in countries with better financial information and governance environments, a higher representation of privately owned media, and lower government control of banks. These findings underscore the significance of media coverage and sentiment in shaping the costs of bank loans worldwide.

Audit Quality, Institutional Environments, and Earnings Management: An Empirical Analysis of New Listings

The purpose of this article is to investigate the relationship between audit quality, the role of institutional environments at the provincial level, and earnings management around listing events by using data from 189 newly-listed companies on the Hochiminh Stock Exchange. Audit quality was proxied by Big4, auditor tenure, and auditor industry specialization, while earnings management was quantified as current discretionary accruals. The findings indicated that there was no role for Big 4, auditor tenure, and auditor industry specialization in curbing earnings management, as indicated by the regression result of the full sample. Interestingly, the effect differed substantially across signs of earnings management. The regression results of different forms of earnings management showed a contrast and indicated that the auditor tenure can mitigate the activities of income-increasing activities in the positive model, the auditor tenure and auditor industry specialization can explain the incentives for managing earnings in the negative model. Moreover, this study found no evidence of the impact of provincial governance on earnings management in the full regression model. However, a negative effect of provincial governance on earnings management was found in the case of a motive for upward earnings management, while good governance tends to provide greater benefits to reduce the occurrence of negative earnings management. After controlling for dummy listing and interaction variables that may be related to audit quality and institutional environment, this relationship remains unchanged. Finally, The study’s findings make several contributions to the earnings management literature and are relevant for investors, policymakers, and firms.

Governance choice misfit and firm performance in offshoring innovation: the role of institutional environment

In this paper, we analyse the effect of institutional factors on the relationship between governance choices and business outcomes when offshoring innovation. Grounded in an institutional theory perspective, we use survey data from the ORN database to estimate regression models and identify governance modes related to specific drivers of offshore innovation. We then analyse the effect on firm performance of choosing a governance mode not in line with the one predicted by the model. We find that choosing a fully owned offshoring operation when theory would predict selecting offshore outsourcing has a negative effect on performance, but not vice versa. We also find that institutional factors of rule of law and IPR protection strength in host countries negatively affect firm performance when offshoring innovation activities.

Role of Institutional Environment in Shaping Political Careers of Young Political Leaders in the Regions of South-West Siberia

Evaluating prospects of bringing youth into Russian political elites has both an acuteness of a scientific challenge and practical relevance in the light of upcoming federal and regional elections of 2021. Based on the surveys of mass political consciousness of the youth and expert polls held in 2018-2020 in Altai Krai and Novosibirsk Oblast, the article has analyzed the visions of young people and their leaders on the effectiveness of career development through participation in youth political organizations, political parties and running for posts in election campaigns. Having measured these visions against the proportion of young people in the elite of the regional offices of political parties and in the lists of candidates running in regional elections, the authors have come to the conclusion about the low acceptance rate of career lift in regional political process. The object of the research comprises regions with different level of social and economic development, which has proved that lack of resource hinders realization of young leaders potential primarily in the regions with high concentration of economic capital and strong political competition.

Fostering Research Integrity in Social Sciences: Basic Understanding and Policy Recommendations

There are numerous definitions of "Research Integrity", but we chose a definition that indicates the role of institutional environment and policies in ensuring fairness and honesty in research activities. This article is an overview of the historical context and current needs to build workable policies on research integrity. Core values, common actions of compliance and violations in practicing research integrity will also be presented. Besides synthesizing basic knowledge of these matters, we propose to use responsive regulatory theory to develop sanctions policies. The application of this theoretical framework is shown in a specific example, the University of Leicester's regulations on plagiarism. Principles of the responsive regulatory theory are expected to be applicable for other research misconducts.
 Keywords
 Research integrity, research misconduct, sanctions policy, responsive regulatory theory

The role of institutional environment in building communication professionals' trust and satisfaction: a moderated multiple-mediation analysis

PurposeAs an important group of internal stakeholders, communication professionals carry the responsibilities to communicate with multiple groups of audience and foster trusted and satisfied relationships, both internally and externally. However, while busy with taking care of various stakeholders, the trust–satisfaction perception of communication professionals is underrated. Therefore, this paper aims to shift the investigation of the trust–satisfaction relationship from general employees to this unique group of communicators. By incorporating three key factors in an institutional environment (i.e. job engagement, leadership performance and organizational culture and support), the authors further investigate the moderated mediating effects of those factors on the trust–satisfaction relationship.Design/methodology/approachA national online survey of communication professionals working and living in the USA was designed to test the trust–satisfaction relationship. Surveyed communication professionals were asked to evaluate their own perceptions on various institutional factors. A conceptual moderated multiple-mediation structural model was proposed and tested to identify the impact of a complicated institutional environment on the perceived trust–satisfaction relationship.FindingsResults confirmed a strong positive impact of trust in organization on communication professionals' perceived job satisfaction. Results also confirmed the mediating effects of job engagement and communication leaders' performance on such a trust–satisfaction relationship. The authors' moderated mediation analysis indicated the important role of organizational culture in this complicated institutional environment and its indirect impact on the trust–satisfaction relationship.Originality/valueThe research explored several important factors within a complicated institutional environment and their potential impact on trust–satisfaction relationship. More significantly, the authors focused on one unique group of internal stakeholders, communication professionals, by analyzing how these institutional factors affect their very own perceptions. Even though communication professionals carry the responsibilities of acting as the communication and strategy facilitators on behalf of their organization, their perceptions on trust and satisfaction are equally important and deserve more attention. Results of our research promote the understanding of the complicated mechanisms within corporate communication for an enhanced trust–satisfaction relationship between communication professionals and their organization.

Research on The Influence of Enterprise Control Right Allocation on The Effectiveness of Internal Control-Based on The Regulatory Role of Institutional Environment

In order to examine the influence degree of the enterprise control configuration of the internal control construction, this paper takes 2013-2018 a-share companies of Shanghai and Shenzhen two city as the research sample, using the methods of regression analysis method, from the three shareholders, the board of directors and managers control configuration level, to study the influence degree of the effectiveness of internal control, then to test system with regional marketization environment on the influence of the adjustment. The results show that the most effective allocation mode of internal control is as follows: at the shareholder level, the allocation mode is characterized by high equity balance and state-owned shares; at the level of the board of directors, it is manifested as the holding level of the high board of directors. At the level of managers, it shows the level of high managers’ shareholding. This study has a good reference to improve the governance of listed companies.

Institutional Environment of Old Age Homes and Its Relation to Adjustment of Older Adults: Evidence from Pakistan

The study investigated the role of institutional environment in adjustment of older adults living in old age homes of Punjab, Pakistan. The study was conducted on a sample of 270 residents, living in 18 old age facilities across Punjab. The data was collected through a structured interview questionnaire and was analyzed through SPSS (v. 22). The multiple regression analyses suggested that institutional environment along with number of children and number of visitors was a significant predictor of adjustment of older adults. Interventions such as higher support from staff and residents, autonomy, and engagement can help older adults to adjust better in old age homes.

Does the Ease of Starting a New Business Affect Country’s Financial Vulnerability? Evidence from Eight European Economies

This paper investigates whether indicators on the ease of doing business explain variation of financial system vulnerability amongst eight biggest European economics between 1999 and 2014. Using mixed-effects estimation method for sectoral observations nested within countries, the results suggest that easy access to get credit is associated with increased financial vulnerability, as measured by decreased excess return in equity market. The significance of political stability, regulatory quality, and rule of law also marks the role of institutional environment towards vulnerability by facilitating the openness towards new business. Finally, a high degree of openness is not always good especially if they are combined with better institutional environment. This confirms the importance of the level of openness, as well as its channels, in determining the extent of vulnerability.

Formation Features of Institutional Space of Economic Agents in Trade in the conditions of Digital Transformation

The article considers the formation features of institutional space for economic agents in trade industry in the conditions of digital transformation. This paper examines the features that are manifested in structural shifts in interaction, interrelation, interpenetration of various types of formal and informal institutions; institutions aimed at consumer’s decision-making; institutions that determine the success of a trade business. The role of institutional environment as a key element of institutional space is demonstrated in the paper. The authors analyze main stages of institutional space formation in the process of development of institutional trade policy, which to a large extent determine the effectiveness and prospects for the development of economic entities in trade industry.

Improving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design

Activism seeking to improve labor conditions in global supply chains has led many transnational corporations to adopt codes of conduct and to monitor suppliers for compliance. Drawing on thousands of audits conducted by a major social auditor, the authors identify structural contingencies in the institutional environment and program design under which codes and monitoring are more likely to be associated with improvements in conditions. At the institutional level, suppliers improve more when they face greater risk that nongovernmental organizations and the press will expose harmful working conditions. They also improve more when their buyers have experienced negative publicity for supply chain labor abuses. At the program design level, suppliers improve more on average when audits are pre-announced, when auditors are highly trained, and especially when both elements are present. Extended analysis of variations across violation types reveals nuances to these findings. For instance, pre-announced audits were followed by greater improvement in occupational safety and health practices but not child labor practices. These findings can inform strategies for improving supply chain working conditions.

Financial innovation and bank growth: The role of institutional environments

This research evaluates the impact of financial innovation on bank growth and how their growth is affected by various dimensions of institutional environments’ interaction with financial innovation. To address these relationships, we use different measures of financial innovation and bank growth from a panel dataset of 40 countries (OECD and non-OECD) over a sample period spanning from 1989 to 2011. There are three main findings herein. First, banks located in countries with a higher level of financial innovation exhibit better growth in assets, loans, and profits. This positive linkage remains highly significant in the subsample without considering the 2007–2008 global financial crisis. Second, bank regulations, financial reforms, and country governance indicators tend to weaken the relationship between financial innovation and bank growth. Third, globalization leans toward strengthening this relationship.

Firm-Level Media Coverage, Bank Loans, and the Role of Institutional Environments

Employing an international sample of 12,422 bank loan facilities across 37 countries spanning the period from 2000-2016, we find that both media coverage and positive media sentiment reduce the bank loan interest rate spread, which can be achieved through the media’s roles in mitigating information frictions, reducing information risks, and enhancing the competition among lenders. Moreover, we show that favourable aggregate media sentiment increases the participation probability of non-leader bank lenders and reduces the percentage share of the leading banks involving syndicated loan issuances to borrowers, which implies the information feedback effects of media sentiment in the syndicate loan structure. We further document that this negative relationship is more pronounced in countries with better accounting information environments, better share trading regulation environments, higher representation of privately owned media newspapers, and lower government control of banks. Our main conclusions remain valid after carefully considering endogeneity issues and conducting various robustness tests.

Firm-level Media Coverage, Bank Loan, and the Role of Institutional Environments

Firm-level Media Coverage, Bank Loan, and the Role of Institutional Environments

Institutional aspects of development of regional PPP Projects

The relevance of research into institutional aspects of public-private partnership (PPP) is evidenced by the continuously increasing role of research-and-technology, information technology, territorial and socioeconomic factors of influence on the development and implementation of regional PPP projects aimed at improving social welfare and accelerating the rate of socioeconomic development of Russia’s regions. Systemic impact of technical, technological, territorial and socioeconomic factors stipulates the need for the development of institutional environment of PPPs, which implies taking measures for protecting private investments and interests of private investors. This impact also predetermines the necessity to improve the currently existing institutional models of informational-legal base that ensure integration processes of managing PPP projects, with taking into consideration of regional differences and excess investment risks. In this regard, the present paper is aimed at detecting problems of development of PPP’s institutional environment at the regional level. The solution of these problems will allow elaborating models of institutional environment having integrated legal and regulatory framework, transparent and intelligible procedures and standing orders that are necessary when implementing complex socioeconomic projects of public importance for the development of regions. The authors of the paper have defined the role of institutional environment of public-private partnership (PPP) and municipal public-private partnership (MPPP) in the development of a region. The paper provides the results of generalized analysis of factors of development of institutional environment and regulatory-legal framework at the regional level. There were defined problems entailing the performance risks concerning the support of regional projects by public partners and risks of integrated models of interagency interaction at the stages of elaboration, selection and making decisions on implementing PPP and MPPP projects, performing measures of control, maintenance, monitoring and maintaining a register of PPP projects. The results of the research given in the paper are of applied importance for both academicians and practical workers, especially in using the assessments of a development level of institutional environment and legal framework when preparing or implementing projects on improving a region.

Toward a social fitness perspective on contract design: Contract legitimacy and influence strategy

The effectiveness of contracts in terms of cooperative efficiency and relational outcomes in interorganizational relationships has become critical in today's volatile markets. However, extant research on the effect of contracts on trust has found inconsistent results, possibility because of its overwhelming focus on an economic fitness perspective at the expense of a social fitness perspective. Drawing insights from institutional theory, we focus on legitimacy building in interfirm contract design, investigate how contract legitimacies (i.e., regulative, normative, and cognitive) influence the effectiveness of interfirm contract design, and further explore the moderating effects of influence strategies that are applied in the process of contract implementation. Using longitudinal field survey data and archival data, this study finds that the three types of contract legitimacy play different roles in influencing compliance and trust and that noncoercive influence strategies can improve the effectiveness of regulative and normative legitimacy better than coercive influence strategies on trust. The findings offer new theoretical and managerial insights into the role of institutional environments in the effectiveness of contract design in manufacturer–distributor relationships.

Willingness to take contractual risk in port public-private partnerships under economic volatility: The role of institutional environment in emerging economies

Port infrastructure investment environment is becoming increasingly volatile. Opportunities and challenges coexist and make port investment in view of economic volatility an interesting and important topic to study. A popular form of port investment is public-private partnership (PPP). It refers to a contractual arrangement between public agencies and private companies for works and services traditionally provided by the government. This paper aims to empirically investigate impacts of major economic recessions on private investors’ willingness to take port infrastructure PPP contractual risk in emerging economies given a fixed set of institutional environments. Multi-group structural equation modelling is employed and data mainly from the World Bank Private Participation in Infrastructure (PPI) database is tested in the model. Findings show that there is less impact of institutional factors after the 2008 financial crisis. Governmental intervention with quality institutional environment is an effective strategy in attracting private investors in ports.

The effects of tech and non-tech innovation on brand equity in China: The role of institutional environments.

Recently, innovation has been a key driver of brand equity. However, the emerging economies provide a dynamic institutional environment that makes it difficult to explore the relationship between innovation and brand equity. By combining the brand equity literature and institutional theory, our research investigates the effects of technical and non-technical innovation on brand equity and how the effects vary within different institutional factors (product market development, regional legal environment). A sample composed of 124 listed companies in China from 2009 to 2014 was analyzed empirically and provides strong support for the theoretical predictions. The results confirm the positive effect of the two innovations on brand equity and the contingent effect of institutional factors as follows: the regional legal system positively moderates the relationship between the two innovations and brand equity, and product market development positively moderates the relation of technical innovation and brand equity; there was found to be no significant influence of non-technical innovation on brand equity. This study provides crucial theoretical and managerial implications for managers.