Supervisory Mechanisms Research Articles

Impact of State‐Owned Equity Participation on the Risk‐Taking Capacity of Private Enterprises in China: Insights From a Quasinatural Experiment

ABSTRACTResearch Question/IssueThis study rigorously explores the impact of state‐owned equity participation on the risk‐taking capacity of private enterprises following the introduction of China's Guiding Opinions on Deepening the Reform of State‐Owned Enterprises, which is considered a quasinatural experiment.Research Findings/InsightsState‐owned equity involvement significantly enhances private firms' risk‐taking capacity by improving resource access and reducing the constraints caused by limited resources and emerging legal systems. By analyzing A‐share private listed companies from 2009 to 2019 using a difference‐in‐difference approach, we find that firms with postpolicy state equity participation exhibit greater risk‐taking than those without. Firms that quickly integrate state capital postpolicy demonstrate heightened risk‐taking capabilities. These outcomes are robust even after extensive validation.Theoretical/Academic ImplicationsOur findings suggest that state‐owned shareholders play a significant role in augmenting private firms' risk‐taking through enhanced governance and supervisory mechanisms. This effect is mediated by increased innovation investments and the alleviation of financing constraints, emphasizing the nuanced role of state capital in private enterprise dynamics. This study underscores the positive impact of state equity participation, particularly among smaller and less‐marketized firms.Practitioner/Policy ImplicationsThis study offers a strategic direction for policymakers to reinforce a resilient and dynamic private sector through state capital engagement. Our study contributes to the understanding of the strategic implications of state‐owned enterprise participation in the private sector, offering evidence of its positive effects on risk‐taking capacity, which are vital for policy formulation and corporate governance enhancement.

Mobilising Transnational Labour Law in Search of Transformation in Europe

Abstract This paper provides a critical map of trade unions’ strategic engagements with transnational legal mechanisms in Europe. Despite high profile defeats and challenges faced by workers and trade unions before supranational courts, they have continued to mobilise complaint and supervisory mechanisms at the transnational level. This raises questions about the reasons why and how law is mobilised in the industrial relations context and over the transformative potential of transnational labour law. Legal argumentation has been mobilised to defend and redetermine legislative rights to protect vulnerable workers and provide the conditions for democracy at work. The experience of legal mobilisation detailed in this paper encourages a sceptical and pragmatic approach to social transformation via legal mobilisation. It will set out the legal opportunities that shape the effectiveness of transnational labour law mobilisation, as well as the structural limitations and competing normative interests that delimit the interpretive trajectory, recognition, and enjoyment of collective labour rights in contemporary Europe.

Enhancing User Privacy Protection on Social Media Platforms: A Comprehensive Analysis of Self-Regulatory and Supervisory Mechanisms

Enhancing User Privacy Protection on Social Media Platforms: A Comprehensive Analysis of Self-Regulatory and Supervisory Mechanisms

Protection and Enforcement of Law Against Insider Trading Crimes in The Indonesian Capital Market

Criminal practices in the capital market are commonly known by the terminology insider trading, a long-standing crime that is not well-known to the public. Insider trading constitutes a legal violation as well as an ethical breach that can pose serious risks to market integrity and harm investors who do not have specific information access. This journal will explore the legal protection and enforcement framework that explains the Indonesian legal framework governing transactions in the capital market in an effort to protect the public from insider trading. Legal protection includes the enforcement of provisions found in laws, regulations, and supervisory mechanisms applied by financial authorities, which is essential to create a fair and efficient market. Therefore, understanding the effectiveness of existing laws and enforcement of rules is crucial to protecting the public from insider trading crimes. This journal is expected to provide knowledge to enhance and develop legal science, particularly related to the analysis of insider trading law enforcement in the capital market in Indonesia. This journal is hoped to provide input and recommendations for authorities and stakeholders involved in providing legal protection to the public for the enforcement of laws in accordance with the provisions of the Indonesian Capital Market Law.

Experiencing the Pre-Service Teachers’ Ideas and Thoughts during Practicum: Quantitative and Qualitative Approaches

Pre-service educators, embarking on the path to professional teaching licensure, engage in intensive training regimens, culminating in a practicum phase designed for immersive exposure to the educational frontline. This critical juncture facilitates translating theoretical knowledge into practical pedagogical expertise, empowering aspiring teachers with the tools necessary for effective classroom engagement. Drawing upon a mixed-methods analysis, this study scrutinizes the experiential narratives of 367 pre-service teachers’ post-practicum, supplemented by in-depth interviews with a select cohort of ten participants to elucidate the nuanced dynamics encountered within the school environment. The findings illuminate a spectrum of pedagogical hurdles, including but not limited to methodological implementation, classroom management, and temporal coordination. Additionally, the economic encumbrances experienced by pre-service teachers emerge as a salient theme, with the majority grappling with financial constraints exacerbated by insufficient stipends, inadequately addressing their living expenses, and pedagogical outlays. These revelations underscore the imperative for enhanced mentorship, augmented supervisory mechanisms, and holistic support from academic and institutional bodies, aiming to fortify pre-service teachers’ practicum engagements. Such strategic interventions are pivotal in navigating the intricate landscape of educational praxis, ultimately cultivating adept educators poised for success in the authentic school setting.

How to deter earnings manipulation in Chinese banks? A study from the combined effects of corporate governance, enterprise resources, and supervisory mechanisms

AbstractThe study proposes methods for deterring earnings manipulation in Chinese commercial banks, recognizing it as an ongoing problem with the potential to destabilize investors and financial markets. The increasing integration of the global financial system has heightened the importance of addressing this issue, given the systemic risk posed by large individual financial institutions. Utilizing the Fuzzy Set Qualitative Comparative Analysis method (fsQCA) on 139 Chinese commercial banks in 2021, the paper explores factors influencing banks' earnings manipulation behavior. The study reveals several key findings: (1) Factors associated with reducing the likelihood of earnings manipulation in commercial banks are diverse and multifaceted. (2) Multiple paths exist to achieve earnings manipulation, categorized into Resource‐guided, Corporate Governance, Resource and Supervisory Mechanism, Supervisory Mechanism, and Corporate Governance as the main mechanism. Among these, the Supervisory Mechanism exhibits the highest consistency. (3) Hiring “Big Four” accounting firms as auditors emerges as a significant deterrent against earnings manipulation in commercial banks. (4) Banks with powerful major shareholders affiliated with the government or ample resources are effective in deterring earnings manipulation. These two factors are complementary, while a bank's growth prospects and industrial competition serve as substitute factors.

Impact of Nominee Agreement on Mining Business Entities Against the Welfare of the People

This study delves into the regulation of foreign share ownership and the prohibition of nominee agreements in the establishment of mineral and coal mining entities in Indonesia, aiming to ensure legal certainty and promote the welfare of the people, as mandated by Article 33 paragraph (3) of the 1945 Constitution. Employing three legal theories—basic legal values (Gustav Radbruch), legal system theory (Lawrence Friedman), and the welfare state—the research method incorporates both normative juridical and empirical juridical approaches. The findings reveal that nominee agreements, though legally questionable under Article 1320 of the Civil Code, serve as a means for foreign investors to secure their interests in Indonesian mining ventures. An Environmental Analysis of Law (EAL) employing the Cost-Benefit Analysis (CBA) method indicates a positive impact on the welfare of communities in Morowali and Kutai Kartanegara regencies due to these agreements. Proposing an ius constituent approach, the study advocates for relaxed foreign ownership regulations, allowing up to 51% ownership during the initial establishment period, accompanied by a mandatory divestment to 49% after ten years of exploration. Such a policy shift obviates the need for nominee agreements, ensuring both investment security and legal clarity. Supervisory mechanisms are recommended to oversee divestment and reinvestment processes, ensuring equitable distribution of mining dividends and bolstering legal certainty in mining operations. These proposed regulatory adjustments are envisioned to foster equitable resource management, thereby advancing the welfare of the Indonesian populace, particularly in Morowali and Kutai Kartanegara regencies.

Achieving energy justice: The role of supervisory and compliance mechanisms in global frameworks and the international community

Energy justice as a concept refers to the fair distribution of the benefits and burdens of energy production and consumption among different communities and individuals. The international community is currently attempting to achieve it through various means such as international law, the Sustainable Development Goals and the potential establishment of a human right to energy. However, the authors argue that these tools have either failed or will fail in practice to achieve this objective. This is why they suggest the use of supervisory and compliance mechanisms established within global frameworks related to energy, international human rights law and Agenda 2030, to achieve energy justice. This is of absolute importance given the inability to do so in practice despite the growing literature on the topic. These supervisory and compliance mechanisms are used to monitor and enforce compliance with energy justice principles, and include independent regulatory bodies, mechanisms for public participation and oversight, and incentives for compliance. They provide flexibility for governments to consider their own financial, technical, and human capacities when tackling a highly complicated issue such as energy justice.

Enhancing the Supervisory Board of the Corruption Eradication Commission: Insights from Hong Kong, United Kingdom, and European Union

<div class="WordSection1"><p><em>Establishing the KPK Supervisory Board as a juridical consequence of Law Number 19 of 2019 is an effort to improve KPK's supervisory system. But its formation has caused many pros and cons in the community. The existence of this board is considered to weaken and hinder the performance of KPK. This study analyzes the position of the KPK Supervisory Board after Constitutional Court Decree Number 70/PUU-XVII/2019 concerning reducing the pro-Justitia authority of the Supervisory Board regarding the comparative study involving several countries. This study uses legal research with comparative and statutory approaches. The study results show that the KPK Supervisory Board, as the KPK's internal supervisory body, still requires adjustments by adopting the supervisory mechanisms implemented by comparator countries relevant to the Indonesian Legal System. Some of these are related to the mechanism of monitoring and evaluation of the performance of the KPK Supervisory Board and the KPK itself.</em></p></div>

Dynamic control of pollution of municipal solid waste incineration

PurposeThe purpose of the study is to investigate strategies for enhancing pollution oversight by local governments while reducing government-enterprise collusion (GEC) levels. Additionally, the factors influencing pollution control efforts at incineration plants are explored. Potential approaches to improving them and for effectively reducing waste incineration pollution are suggested.Design/methodology/approachThe authors examined the most effective methods for mitigating incineration-related pollution and preventing collusion and developed a differential game model involving interactions between local governments and incineration plants. The findings of this work have significant policy implications for central governments worldwide seeking to regulate waste incineration practices.FindingsThe results indicate that, first, elevating environmental assessment standards can incentivize local governments to improve their oversight efforts. Second, collusion between incineration plants and local governments can be deterred by transferring benefits from the plants to the local government, while increased supervision by the central government and the enforcement of penalties for collusion can also mitigate collusion. Third, both central and local governments can bolster their supervisory and penalty mechanisms for instances of excessive pollution, encouraging incineration plants to invest more in pollution control. Finally, when the central government finds it challenging to detect excessive incineration-related pollution, enhancing rewards and penalties at the local government level can be a viable alternative.Originality/valueThis study stands out by considering the dynamic nature of pollutants. A differential game model is constructed which captures the evolving dynamics between local governments and incineration plants, offering insights regarding the prevention of collusion from a dynamic perspective. The findings may provide a valuable reference for governments as they develop and enforce regulations while motivating incineration plants to actively engage in reducing waste-incineration pollution.

Dampak Kepuasan Kerja Terhadap Kinerja Guru: Analisis Faktor-Faktor Pendukung dalam Manajemen Pendidikan

This study aims to analyze the impact of job satisfaction on teacher performance at SMP Islam Bakti Asih, which is a crucial factor in improving educational quality. This research employs a qualitative approach with a case study design. The sample consists of 20 teachers selected from a population of 45 teachers using a systematic nonprobability sampling technique. Data were collected through questionnaires, interviews, and document analysis, and the validity and reliability of the instruments were tested to ensure measurement accuracy. The main findings show a significant positive correlation between job satisfaction and teacher performance. Further analysis reveals that school leadership, organizational culture, and supervisory mechanisms also contribute to teacher performance, although job satisfaction remains the dominant factor. This study makes an important contribution to the educational management literature by providing insights into how various factors influence teacher performance. Limitations of this study include the limited sample size and short research duration. The implications of this study include recommendations for improving school policies that focus on enhancing job satisfaction as well as other factors to overall improve teacher performance. Further research is suggested to expand the sample size and extend the research duration to obtain more comprehensive results.

The power influence of executives and corporate investment efficiency: empirical evidence from Chinese state-owned enterprises

Previous literature has explored investment efficiency in terms of executive incentives, supervisory mechanisms, information disclosure, agency conflicts, and managerial capabilities. This study focuses on analysing the power influence of executives in the context of Chinese State-Owned Enterprises (SOEs) from the two hypotheses of “economic man” and “social man”, aiming to improve the research between the power influence of executives and investment efficiency. This study adopts principal component analysis to comprehensively evaluate the power influence of executives in Chinese SOEs from four dimensions, namely, organisational position influence, personal competence influence, industry influence, and prestige influence. Using the analytical tool STATA15 to establish a regression model, the mechanism of executive power influence on investment efficiency is explored from the logic of “financing constraints” and “diversification”. It then explores the moderating effects of equity concentration and independent director oversight. The empirical results show that the greater the power influence of the executive, the lower the investment efficiency. The intermediary mechanisms of this study find that executives of Chinese SOEs can use their power influence to reduce financing constraints, obtain more resources, and make diversified investments, thus generating inefficient investments. This study also finds that equity concentration and oversight by independent directors have a positive moderating effect on executive power and investment efficiency. The results of this study are robust due to the use of the instrumental variables approach. The innovation of this study integrates the measurement of executive power influence in the particular context of SOEs and analyzes its impact on investment efficiency. It enriches the study of factors influencing executive power and corporate investment efficiency.

Technical Analysis: Penny Stock Manipulation Company Share Listed on the Indonesian Sharia Stock Index in 2022

Penny stock manipulation refers to unethical and illegal practices in the stock market which involve the manipulation of share prices and trading volumes with the aim of generating undue profits for the manipulators. The purpose of this study is to detect manipulation of penny stocks in Islamic stocks registered on ISSI in 2022. This type of research is qualitative research using technical analysis of candlestick indicators, moving averages, and volume. The results showed that there was manipulation of penny stocks in Islamic stocks including shares of PT Winner Nusantara Tbk (WINR), PT Wahana Pronatural Tbk (WAPO), PT Damai Sejahtera Abadi Tbk (UFOE), and PT Sunter Lakeside Hotel Tbk (SNLK) companies. This stock has a low market cap and liquidity, candlestick patterns and volume detects movements that tend to fluctuate, and is included in the UMA (Unusual Market Activity) list which has unusual transactions. In the context of Sharia, penny stock manipulation can lead to doubts and distrust in the Islamic capital market as a source of investment that is in accordance with Islamic values. This underscores the importance of upholding the integrity of Sharia-compliant capital markets and implementing strong supervisory mechanisms to protect investors from manipulative practices while adhering to Shariah principles.

A Grounded Theory Examination of Supervisory Boards’ Governance Capability Indicators in Publicly Traded Firms: A Sustainability Perspective

Embedded within the sustainable development framework, our research leverages proceduralized grounded theory to refine and universalize supervisory governance capabilities, thereby aiming to assess the theoretical saturation of the resultant model and to devise a comprehensive, sustainability-inclusive index of supervisory board governance competence. Focusing on five publicly traded Chinese companies, the research employs a tripartite coding process integral to grounded theory methodologies. By methodically refining case studies, it identifies sustainability-oriented governance capacity indicators. Data are conceptualized and compartmentalized via open coding, then divided into five primary clusters via axial coding, resulting in sustainability-focused governance capacity indicators for supervisory boards. Using selective coding strategies, the study uncovers forty-two competency indicators pertinent to sustainable corporate governance, organized into three domains across eight sustainability-related dimensions. These include individual characteristics, sustainability value judgment, experiential wisdom, collaborative communication for sustainable practices, resource integration, general employment prerequisites, professional application in sustainability, and sustainable business acumen. The findings enhance supervisory board member selection and performance assessment processes, promoting sustainable corporate governance. They also clarify supervisory roles in sustainability, offering a holistic view of supervisory board internal governance mechanisms. By maintaining the objectivity of these indicators, the study advances the field.

Barriers and facilitators of family doctor contract services in caring for disabled older adults in Beijing, China: a mixed methods study

ObjectiveTo evaluate the current state of family doctor contract services (FDCS) in Beijing, identify the roles of family doctors who have worked with disabled older adults and investigate the barriers...

WOULD FINTECH BE FUNDAMENTAL IN PREVENTING FINANCIAL CRISIS?

Since the last global financial crisis, supervisory mechanisms and regulations have become stricter, boosting banks resilience and improving financial stability. Apart from the traditional financial institutions that are governed by strict regulations, standards and guidelines, the technologically advanced form of financial services commonly referred to as FinTech has introduced new developments such as quick peer to peer lending which matches lenders and borrowers directly, putting more pressure on decision-makers and supervisors. This paper discusses the preventive steps and mitigating effects of other financial crisis. The paper explores the value of international cooperation among regulators in order to preserve financial stability in the recent world of technological changes and developments. FinTech has changed consumer preferences and priorities, with an increasing number of consumers demanding fast and easy access to services through mobile phones and other electronic devices. The paper demonstrates that while emerging innovations allow for the expansion of financial services, they also introduce new challenges to the financial system in terms of micro- and macro-financial risks during periods of financial crisis.

CORRUPTION IN THE QUR`AN: CAUSES, SANCTIONS, AND ALTERNATIVE SOLUTIONS BASED ON THE QUR`AN

Corruption is an act that has existed since the time of the Prophet Muhammad Saw and even today corruption still occurs. The perpetrators can be anyone from various divisions and hierarchies of humanity, from ordinary people, officials, and even conglomerates. Based on these reasons, it is important to conduct this study. This research is a library research – using a thematic interpretation approach. The conclusion of this article is that the cause of corruption is influenced by two factors, namely greed and the lack of supervisory mechanisms. The sanction offered by the Qur'an is literally cutting off the hand, but it can also be understood with the meaning of ta'zir, according to the crime committed. Then the alternative solution offered by the Qur'an in minimizing corruption is to instill awareness of every individual about human nature on earth and to raise government awareness of the importance of their authority in eradicating corruption.

Ranking of Factors Affecting Productivity in Ahvaz Hospitals Using Analytic Network Process (ANP) Technique

Background: The hospital system is essential for providing medical services, and improving productivity is vital for enhancing the health system. Objectives: This study aimed to rank factors affecting productivity in Ahvaz hospitals using the analytic network process (ANP) technique. Methods: The statistical population of the current study was 60 personnel of Ahvaz hospitals (20 from each hospital), who were selected by purposive sampling. The sampling method was purposive. A researcher-made questionnaire was used to collect data related to research variables, and its validity was evaluated using content validity. Cronbach’s alpha coefficient test was used by SPSS software version 22 to measure the reliability, which was as much as 0.87. The ANP method was used by the Super-Decisions software to prioritize the influencing factors on hospital efficiency. Finally, the normalized weight (NW) was calculated for each main factor and sub-factors using the geometric mean technique after normalizing the obtained values. Results: Prioritizing the main factors affecting the productivity of Ahvaz hospitals showed that management factors (NW = 0.294), economic factors (NW = 0.269), human factors (NW = 0.267), and technological factors (NW = 0.171) were placed in the first to fourth priority, respectively. Conclusions: Based on the results, factors such as the relatively weak management of hospitals, failure of supervisory mechanisms, lack of human resources, unrealistic tariffs for diagnostic and therapeutic services, incomplete implementation of the new hospital administration system plan, low salaries and wages of personnel were the most critical obstacles for improving productivity in Ahvaz hospitals. Therefore, enhancing the level of hospital management and fully implementing the new hospital administration system plan is essential for increasing the productivity of Ahvaz hospitals.

Decent Work Systems: Management Model Analysis on the Example of Russian Railways

Decent work governance for modern socio-economic systems is a key goal and a common operating methodology. The current literature does not fully disclose the questions posed, which require the proposal of system management models, formed considering the factors of the external and internal environment that determine the characteristics of management in different sectors of the economy. The purpose of the paper is to update the modern provisions of the decent work theory, the formation of a basic model for managing decent working conditions and its substantive justification on the example of Russian Railways enterprises. For this purpose, the author describes the implementation research work using the methods of interdisciplinary analysis of literature and practical experience, as well as a regulatory framework, professional recruitment, including for the transport industry, strategic documents and concepts in responsible work. Also, the research used the method of counter modeling, which represents the decomposition of the theoretical model into the results of the production conditions, financial and socio-economic activities of a particular enterprise. As a result of the work carried out, the author built a model for managing suitable labor at the enterprise based on the scheme of suitable labor management, also relying on empirical data and the regulatory framework of Russian Railways. This model has become a methodological basis for analyzing the situation of decent labor management at the enterprises of Russian Railways. The data obtained testify to the operation of managerial, legal, supervisory, institutional and financial mechanisms for managing suitable work. The practice of applying the results of the study led both to positive results and identified problem areas that cause socio-economic risks in implementing personnel policy measures of Russian Railways.

The ECB as a banking supervisor: transparent compared to what?

ABSTRACT After over a decade of crisis, the ECB’s functions have expanded considerably, which in turn altered its relationship with other institutions. In particular, when the ECB assumed the role of Banking Supervisor under the Single Supervisory Mechanisms, it was generally accepted that this role would require more accountability than its traditional role in monetary policy. Yet, accountability requires transparency. However, there is a dearth of studies on the transparency of European banking supervision, and the few that exist are usually single case studies. This leaves us without a point of comparison that would help us understand what constitutes a ‘transparent banking supervisor’. Therefore, the aim of this article is to situate the transparency of the ECB within the wider literature on the transparency of banking supervisors. This allows us to pinpoint more precisely its strengths and shortcomings and the potential for reforms.