Corporate Status Research Articles

Conflict of Laws Before International Arbitral Tribunals

ABSTRACT International disputes often require determining, as a preliminary matter, the content of rights and obligations at the municipal level. These rights and obligations are varied and include inter alia the rights in tangible and intangible property, domicile, status of foreign corporations, contractual and tortious obligations. However, the method of determining these matters is unclear. International tribunals rarely elaborate on the precise source of the conflict-of-laws rules they apply and their practice is at times inconsistent and incoherent. Nor are their constituent instruments necessarily determinative. The article examines the various sources of conflict-of-laws rules applicable before international arbitral tribunals, with lessons that could be useful for other international courts and tribunals. The article’s key contribution is to offer guidance, even if descriptive, for the determination of the governing law by international arbitral tribunals.

Exploring the Efficiency of the Inspectorate of Government in Anti-Corruption Regime in Uganda

The inspectorate of government has put a big fight to end corruption in Uganda. However, due to a number of challenges the inspectorate of government (IG) has failed to end the vice of corruption in Uganda. Using the doctrinal methodology of research, this study explores the effectiveness of the inspectorate of government in the fight against corruption and the challenges faced by the same in executing its mandate. It is in this light the article calls for anti-corruption efforts to focus on preventing and eliminating root causes of corruption, and government's capacity to detect corruption and sanction corrupt practices should also be strengthened. Also, since IG is a national cross-cutting institution responsible for three major functions of promoting good governance, preventing and combating corruption and enforcement of the Leadership Code of Conduct, each of these functions should be funded as a separate vote. It is equally recommended for the process of establishing Leadership Code Tribunal to be expedited. This will among other things not only make the enforcement of the Code more effective but it will also encourage the leaders to comply with the Code. Finally, the parliament should amend the IG Act in order for the IG to attain corporate status. The amendment will give powers to the IG to sue or be sued in its own names this will mean that the IG won't wait for the office of the AG to represent it, where its reports are challenged in judicial review. Importantly, all government institutions must have a proper record keeping and retrieval system and Government should provide its Ministries, Departments and Agencies (MDAs) with necessary tools to ensure that this is done. Keywords: Anti-corruption Act, Character modification, Corruption, Inspectorate of government, public conduct.

It’s Time for Impact: An Analysis of the Prosocial Signals in Social Enterprises

This paper investigates the likelihood and timing of social enterprises’ (SEs) adoption of prosocial signals, such as certifications or specific legal statuses. We framed prosocial signals into governance- and market-oriented, indicating internal prosocial practices and processes, and communicating externally prosocial efforts, respectively. We test and confirm the hypothesis that the prior adoption of governance-oriented signals increases the likelihood and speed of a SE embracing market-oriented signals. The maturity (e.g. age of the firm) and the managerialization (e.g. number of managers) of SEs positively moderates this relationship. To conduct this study, we hand collected data from 184 Italian SEs, of which 56 took the legal status of Benefit Corporation and the B Corp certification, representing governance- and market-oriented signals, respectively, and 128 that did not. This work provides academics and practitioners implications on the sequence and complementarity of prosocial signals.

Responsabilitatea socială și soluționarea dilemelor morale în organizațiile de afaceri

If in the first half of the 20th century, for business organizations, obtaining profit was the only purpose, the postmodern model of doing business related, at least as an aspiration, the two benchmarks - profit and moral values. Business ethics examines how economic concepts comply with ethical prescriptions, involves the empirical approach to business practices, looking at aspects of civil liberty, the well-being of individuals in industrial societies, the compatibility between economic activities and environmental policies. Starting from a meta-ethical approach, which aims at the moral status of corporations, business ethics pursues the ethical aspects of corporate management, the definition of corporate codes of conduct and equally, the social responsibility of companies and the consequences of their activity. The analysis of morality in the business environment has a different approach in schools and currents of thought regarding business ethics. From a critical perspective on the relationship between ethics and business, both the German, French and American schools, argue that in the post-industrial society business must be done only respecting moral values. In business, there are often unclear, dilemmatic situations, conflicts that are difficult to resolve, especially due to the desire to balance economic and social performances. When achieving this balance is particularly difficult (good or bad cannot be clearly specified and identified), a dilemma arises for decision-makers, considered one of the most demanding ethical problems. Regardless of the environment in which they appear (marketing, production, human resources) the solution of moral dilemmas must consider as the main criterion social responsibility and the social consequences and less the current economic results of the corporation.

DETERMINANTS OF INTERNET DISCLOSURE TRANSPARENCY ON ZAKAT MANAGEMENT ORGANIZATIONS IN INDONESIA

This study's purpose is to examine the influence of Zakat Management Organization (OPZ) characteristics on the transparency of Internet disclosure. There are four independent variables such as the size of OPZ, the presence of external auditors, under the auspices of the corporation status, and institution type. The size of OPZ is measured by the ln of the total assets, whereas the existence of the external auditor, the auspices of the corporation status, and the type of institution use dummy variables. The sample of this research is 32 OPZ in Indonesia with the research period 2018. The results show that the size of OPZ, the presence of auditors, and the ownership status of the institution had a significant positive effect on the transparency of Internet disclosure. However, the type of institution (BAZ or LAZ) does not affect the transparency of internet disclosure at OPZ. The percentage of disclosure of internet disclosures, such as content and presentation on the OPZ website, has increased from previous studies.

The international marketing strategy of Korea's Hybe Corporation and its implications to Chinese entertainment companies

With the continuous development of economic globalization, foreign trade has brought unprecedented opportunities, and the exchange and dissemination of different cultures have become increasingly important in international trade. Since the rise of South Korea's entertainment culture in the 1990s, it has taken less than a decade for Korean dramas, fashionable clothing and other popular cultures to become "popular in Asia" and "popular around the world". In recent years, Korea's Hybe Corporation broke the pattern of YG, SM, and JYP which are Korea's three major entertainment companies, jumped to become the fourth largest Korean entertainment company giant. Its strong cultural output has led to the extraordinary influence of Korean pop culture on a global scope. From the perspective of international marketing strategy, this paper introduces the development status of Hybe Corporation through PEST analysis and 4P marketing theory, so as to inspire Chinese entertainment companies to keep pace with the times and promote the export of Chinese culture.

Un-Incorporation and Conditional Misallocation: Firm-Level Evidence from Sri Lanka

Abstract Un-incorporated firms are usually found less productive than their incorporated counterparts. However, little is known about the misallocation conditional on firms’ incorporation status and their productivity. This paper investigates the resource misallocation across un-incorporated firms and gauges the consequent aggregate productivity loss in comparison with their incorporated counterparts. We examine the question by using firm-level survey data from Sri Lanka’s manufacturing sector for 2005–2017 that provide unique information about firms’ corporation status. Our findings suggest that misallocation is more severe in unincorporated firms than in incorporated ones, leading to extra 42 % aggregate TFP loss to the former. By comparing the sources of misallocation between the two types of firms, we find capital is more misallocated relative to output and there is a stronger positive correlation between firm-specific distortion and productivity across the unincorporated firms. Our findings suggest that the un-incorporated firms suffer additional productivity loss at the aggregate level due to misallocation.

Research on the Regulation of Human Rights Responsibility of Multinational Companies

With the development of economic globalization, the status of multinational corporations is constantly improving. Multinational corporations play an increasingly important role in promoting global economic development, profoundly influencing the development of the global economic and political landscape. While promoting economic development, transnational corporations also violate human rights, such as squeezing labor, polluting the environment, and endangering the right to life, health and development of the people in the host country. In this context, analyzing the human rights issues of multinational corporations is important. The article adopts case analysis, historical analysis, and literature analysis methods to analyze the human rights responsibilities of multinational corporations, The article explores the definition, origin, and theoretical basis of human rights responsibility of multinational corporations, as well as the reasons for their human rights violations. At the same time, suggestions are proposed from international regulations, host countries, home countries, and enterprises themselves to regulate the human rights violations committed by multinational corporations, promoting them to actively assume human rights responsibilities.

Shifting incentives: the impact of the Tax Cuts and Jobs Act on S bank conversions

PurposeThis paper investigates the significant increase in S corporation banks converting to C corporations following the 2017 Tax Cuts and Jobs Act (TCJA) and the shift in motivations behind these conversions.Design/methodology/approachThe paper uses bank-level panel data from Federal Deposit Insurance Corporation (FDIC) Call Reports to analyze the determinants of S bank conversions after the TCJA, comparing post-TCJA conversion trends with pre-TCJA trends utilizing an ordinary least squares (OLS) and logistics model.FindingsThe study finds that post-TCJA conversions are primarily driven by financially stable banks seeking improved tax conditions and relaxed shareholder restrictions as C corporations. This contrasts with pre-TCJA conversions, which were predominantly driven by financially distressed S corporation banks seeking new equity capital to maintain solvency.Research limitations/implicationsThe findings necessitate a comprehensive reconsideration of the Subchapter S status' sustained relevance for smaller institutions, especially in light of the comparative benefits now offered by the C corporation status post-TCJA. The results underscore the importance of ongoing academic investigation to deepen the understanding of the evolving fiscal landscape's effects on community banks, thereby contributing to the knowledge of the resilience and health of the US economy.Practical implicationsThis research nudges policymakers and regulators to contemplate the ongoing relevance and advantages of the S corporation status. Given the substantial benefits conferred by the C corporation status in the post-TCJA environment, this study suggests that retaining the S corporation status may not offer the same appeal for smaller community banks as it once did.Originality/valueThis paper contributes to the broader understanding of the impact of tax policy on businesses' organizational choices, particularly in the banking industry and emphasizes the need for a comprehensive review of the S corporation status to assess its ongoing applicability in fostering small and community-focused financial institutions in light of the evolved corporate tax landscape.

IN THIS ISSUE: Small is beautiful, but ...

First paragraphs: On the cover of our spring 2023 issue (volume 12, issue 3), Samantha and Chris Kemnah enjoy a moment with their cows on Clover Bliss Farm, their 190-acre farm in South Argyle, New York. You can read more about the Kemnahs in a 2018 article in the Hill Country Observer by Tracy Frisch entitled “An escape route from dairy farming’s crisis?” Alas, the economic pressure Frisch referred to five years ago has remained for small dairy farmers—and particularly for small organic dairy farms. Since that article was written, the consumption of fluid milk has continued to decline even as organic milk has flooded into the limited market. In 2021, Danone North America (owner of the Horizon Milk brand) cancelled contracts with dozens of small organic dairy farms in the Northeast U.S., triggering an economic crisis and calling into question Danone’s certified B Corporation status. Observers have wondered, how could a company that promotes itself as farm-friendly not offer a more engaging and deliberative process in making such a consequential business decision? But this case triggers an even larger question: while small may be beautiful, can small and middle-scale also be resilient, even in a triple bottom-line context? . . .

STATE CORPORATIONS IN THE MECHANISM OF PUBLIC POWER OF THE RUSSIAN FEDERATION

The article is devoted to the problems of the mechanism of the state, the trends of its institutionalization, development and functioning in the Russian Federation at the present stage. More specifically, the article considers domestic state corporations from the point of view of their participation in the implementation of state functions, as well as in terms of their place and role in the system of institutions of public power. As a central idea, the authors put forward and try to substantiate the thesis about the "inclusion" of state corporations in the mechanism of the Russian state at the current stage and their fulfillment of socially significant functions provided by public power. In the process of considering this problem and justifying the main idea, the authors During the study, the authors relied on scientific works in the field of the functioning of the state and its mechanism. As an argument of the main conclusions and ideas, the authors were based on a formal-logical analysis of the legal norms governing the status of domestic state corporations. The authors conclude that state corporations have legal and political properties that make them one of the elements of the state mechanism.

Study on Multinational Corporations and the Guarantee of Equal Rights for Women in Employment

This article relies on the current situation that the legal provisions related to the protection of the rights of female employees of multinational corporations are not perfect and not tough and uses the legal norm analysis method to explain the existing problems and give possible solutions. Firstly, it discusses the current situation and predicament of the existing women's employment equality protection in multinational corporations, as well as the lack of content and substantive binding of existing international conventions. It also discusses the reasons for the dilemma of rights protection, such as the differentiation of traditional thinking and social structure roles, the level of rule of law in developing countries and the status of multinational corporations. It gives ways to improve legislation and related systems and improve the supervision mechanism of social and non-governmental organizations.

No Poor among Them: Poverty and Mormonism's Trek toward Secularism

No Poor among Them: Poverty and Mormonism's Trek toward Secularism

Investigating the Effect of Environmental Uncertainty on the Relationship between Herd Behavior and Negative Price Shock in TSE

The purpose of this study was to investigate the effect of peripheral uncertainty on the relationship between the herd behavior of investors and the price of negative stock shock. Because the capital market is one of the main pillars of the country's economic growth and development, the incidence of any disturbance and deviation in prices causes problems with allocating and equipping funds. Reducing stock prices is an example of the disorders created in the capital market. On the other hand, one of the factors that lead to the fluctuations of return and instability of financial markets is the herd behavior of investors. If investors lack sufficient information about environmental factors, environmental uncertainty occurs. Such a situation also affects the organization. Environmental uncertainty overshadowed the use of financial statements. Changes in stock prices and corporate status are cases that can not speak in full confidence in their occurrence. As a result, environmental uncertainty is part of the economic environment. To test the research hypotheses, 156 companies from the Tehran Stock Exchange during the years 2010 to 2020 were selected by screening method. To test the hypotheses, multivariate regression models were performed using STATA14 software. The results indicate that herd behavior has a significant effect on price shock and environmental uncertainty has no effect on the relationship between the two.

Derivative Suit of a Shareholder: Direct and Representative Models

The article is devoted to the critical analysis of the currently prevailing qualification of a derivative suit of a shareholder as a representative suit. The analyzed arguments in support of such a variant of the legal construction of a derivative suit seem unconvincing since granting a shareholder claiming a derivative suit the status of corporation’s representative not only does not allow solving a number of practical problems, but also leads to the creation of additional ones. On the contrary, the concept of a derivative suit as a direct suit, according to which the owner of the subjective right to such a claim should be recognized as a shareholder himself, is distinguished by its dogmatic simplicity and practicality, allowing the incidents arising around the construction of an indirect claim to be fairly resolved. The above allowed the author to come to the conclusion about the possibility of revising the prevailing view of the representative nature of a derivative suit. Keywords: derivative suit; direct suit; representative suit; corporation.

Corporate Status of the Surviving Spouse: Actualization of the Problem. Case Comment to the Judgment of the Chamber for Economic Disputes of the SC RF No. 310-ЭС23-663, 6 June 2023

Corporate Status of the Surviving Spouse: Actualization of the Problem. Case Comment to the Judgment of the Chamber for Economic Disputes of the SC RF No. 310-ЭС23-663, 6 June 2023

ON THE ISSUE OF THE RELATIONSHIP BETWEEN THE LABOR AND CORPORATE STATUS OF THE COMPANY'S CHIEF EXECUTIVE AS A SPECIAL REPRESENTATIVE OF A LEGAL ENTITY

The article examines the legal status of a company's chief executive. The ambiguity of the company's chief executive's status, taking into account the nature and goals of establishing the organization, creates a variety of means to regulate the chief executive's status by sector specific legislation. The issue of the relationship between the labor and corporate status of the company's chief executive is especially important, as well as that of criteria for similarity and differentiation of statuses. The answer to this problem lies in the essence of corporate organizations. The purpose of the study is to trace the similarity and difference between the labor and corporate status of a company's chief executive in a corporate organization based on the analysis of regulatory legal acts of various industry affiliation and to propose criteria for their correlation. The methodological basis of the study was the dialectical approach, systematic, logical methods, formal legal and other methods of scientific cognition. The authors note that the study of the issue leads to the conclusion that the labor status of a company's chief executive in a corporate organization is dependent on the corporation. The article proposes similarity criteria and differentiation criteria of the labor and corporate statuses of a company's chief executive in a corporate organization: similarity of both statuses – labor and corporate – lies only in general orientation of the nature of the activity carried out by the company's chief executive: they are the executive body in the organization; the criterion of differentiation: the existence of an employment contract of the company's chief executive . At the same time, while remaining in the corporate status, the company's chief executive is obliged to adhere to the norms of labor legislation in relations with the employees.

CURRENT ACTIVITIES OF TRANSNATIONAL BANKS IN THE GLOBAL ECONOMY

The article defines modern trends of transnationalization in the international banking sphere. The prerequisites for the formation and development of globalization processes in the financial and banking sphere are considered: economic factors, technological and international legal factors. The general definition of a transnational bank is substantiated, the essence of which can be considered in the context of quantitative and qualitative aspects of its definition. A general definition of a transnational bank is provided as a bank that carries out operations in more than one country. The most characteristic trends in the development of transnationalization of the international banking business are outlined, which include the universalization of bank activity, the growth of competition in the banking sector, the liberalization of banking operations, and the growth of innovative activity of banks. The negative consequences of the development of international banking operations are also determined. The characteristic trends of transnationalization in the banking sphere were studied and the leading transnational banks were selected by the level of market capitalization. The peculiarities of the development of the domestic banking system, which is considered as an attractive host area for transnationalization processes, are evaluated. The influence of transnational banks on the economy of the host country and its banking system is considered from the point of view of the consequences of financial liberalization of the world economy as a whole and the development of the domestic financial sector. Identified obstacles on the way to the formation of Ukrainian transnational structures: the instability of the economic and political situation in the state; underdevelopment of the legislative framework in matters of the status and activities of transnational corporations; strong competition from existing global multinational corporations; lack of an appropriate innovation base that could compete with the technologies of foreign multinational corporations; relatively low level of management; high «tinization» of the economy; high level of inflation, etc. The main reasons that caused the changes in the banking sector in modern globalization conditions are proven: the unification of the activities of the real sector of the economy and the financial system of the countries of the world, convergence of the rules for regulating internal and external operations; formation of a network of branches of transnational companies; transformation of the international capital market into an independent factor in the development of the world economy; increase in the share of international operations of banks in the total volume of operations. On the basis of the conducted analysis, suggestions are provided regarding the further development of the activities of transnational banks in the world economy.

Factors Affecting Social Sustainability Performance amongst Malaysian Manufacturing Companies

Malaysia is among 192 countries that adopted the 2030 agenda for sustainable development to move towards more sustainable, resilient and inclusive growth through strengthening the social, economic and environmental aspects of sustainable development. However, among the three pillars, social sustainability is often disregarded than economic and environmental. Social sustainability is an aspect of sustainability or sustainable development that encompasses human rights, labour rights, and corporate governance. It brings a better environmental and positive influence on the employees working in the industry. This study aims to investigate the relationship between diversity practices, environmental practices, product responsibility and, safety and health practices on social sustainability performance in the manufacturing industry in Malaysia. A total of 384 questionnaires were distributed amongst manufacturers with multinational corporation status based on the purposive sampling method. Eighty-two usable questionnaires had been received and analysed. The findings of this study revealed that only diversity practices and safety and health practices significantly influenced the social sustainability performance. Future research is suggested to verify the significance of these factors as well as other potential factors in different industries for better understanding and knowledge of the social sustainability issues in Malaysia.

Rural Small and Medium Enterprises: Maximising the Value of Benefit Corporation Certification

This article examines challenges and opportunities some rural small and medium enterprises (SMEs) face in maximising the value of Certified Benefit Corporation status. Eight case studies provide insights into the disadvantages of becoming, and maintaining, certification, and opportunities for leveraging its full value specific to the unique needs of these types of firms. Triangulation of three repetitions of interviews with owners and employees (n = 22) over two years, publicly available web-based sources (e.g., websites and brochures), and project documents for each case were analysed. No case study could report direct financial gains from their certification. Additionally, they reported limitations to obtaining, and maintaining, the certification, unique to rural SMEs, suggesting larger and urban firms have a competitive advantage in utilising this certification. Instead, they identified hiring and retaining quality employees, a greater sense of purpose and drive, and increased trust with other local businesses as added value. The article concludes with insights for increasing the likelihood of maximising value for other similar firms and opportunities for third-party certifying bodies to better support rural SMEs in maximising the value of this certification.