Corporate Governance Transparency Research Articles

The Impact of Corporate Social Responsibility Transparency and Corporate Governance Transparency on the Performance of Public Listed Companies in Malaysia

This study investigates the impact of corporate social responsibility (CSR) transparency and corporate governance transparency on the performance of public listed companies (PLCs) in Malaysia. Through a quantitative research approach involving 243 completed questionnaires from managers in PLCs, the Statistical Package for Social Science (SPSS) was utilized to analyze the data. The findings reveal a significant positive influence of both CSR transparency and corporate governance transparency on the performance of PLCs in Malaysia. The results provide valuable insights for organizations to make informed decisions and implement strategies that enhance transparency, thereby improving their overall performance.

СУЧАСНІ АСПЕКТИ КОРПОРАТИВНОГО МЕНЕДЖМЕНТУ ТРАНСНАЦІОНАЛЬНИХ КОМПАНІЙ, ЩО ПРАЦЮЮТЬ В УКРАЇНІ

The article examines modern features of corporate management of TNCs (transnational companies) operating in the Ukrainian markets. The essence and general aspects of the activities of TNCs are considered, the main features of transnational companies are highlighted (global presence, scale, innovation, flexibility and adaptability, influence on world politics and economics), type of market structure. The main features of organizing activities in conditions of geographical dispersion of representative offices and divisions of TNCs are highlighted. Emphasis is placed on the need for high-quality corporate management, introducing the existing features of the activities of TNCs, the breadth of coverage of various markets, which is extremely important in the difficult conditions of globalization, frequent changes in the laws of countries, the emergence and rapid spread of innovations, and other factors affecting the activities of global companies and their business environment. Wednesday. The essence and main features of corporate management are described, its purpose (ensuring effective management of all aspects of the company’s activities at the global level in order to achieve strategic goals and success in the international market.) and main tasks (managing various areas of business: strategies, policies, resources, finances, innovations, personnel, quality of products and processes, stakeholders, etc.). The main constituent factors and components of high-quality corporate management of TNCs (TNC management method, organizational structure (management hierarchy), system of relations, compliance with the principle of business information transparency, corporate governance model, special components of TNC corporate management are identified and characterized), their features are described, and examples are given. from the practice of TNCs in Ukraine. The main hierarchical levels of the management structure of TNCs are indicated - senior management (top management), regional management, functional management and local management, and their features are highlighted. The main aspects of information transparency of TNCs are presented and characterized, including such important sections as: transparency of financial reporting, transparency of corporate governance, transparency of strategic information, transparency of data on products and services, transparency in terms of social responsibility of business. The channels of information communication of TNCs with the main stakeholders are noted. Models of corporate management used in the activities of TNCs in Ukraine (centralized and decentralized, matrix and combined models) are identified and described. The need to comply with an important feature of corporate management of TNCs - cross-culturalism - is noted. Conclusions are drawn about the quality of corporate management of TNCs in Ukraine. General conclusions are made and further directions of research in this topic are outlined.

Disclosure of information about the beneficial owner and the principle of transparency in corporate governance

The article considers the dynamics of the modern world, where globalization determines economic and financial relationships, the concept of "beneficial owner” becomes the key in the context of international financial structures. This topic is of considerable interest and debate as the identification of the true owner and user of financial resources becomes more difficult due to the development of diverse business models and financial instruments. At present, transparency of beneficial ownership is considered as a key aspect of policy in the fight against illegal financial flows, which include cross­border financial transactions aimed at money laundering, tax evasion; corruption and terrorist financing. Without transparency of beneficial ownership, criminals are able to participate in illegal activities, hiding it behind legal entities or nominal owners. Abuse of corporate secrets can be prevented by identifying, registering and disclosing information about individuals who exercise decisive influence or control over the activities of legal entities, such as companies, partnerships, trusts or similar legal entities. The issues of creating entities with a transparent ownership structure, reducing the level of corruption, disclosing the real owners of certain companies to society, preventing and counteracting the legalization of illegal income by officials of all levels continue to be a priority in Ukraine. In particular, countries in which legal entities may issue bearer shares or bearer warrants, or in which nominal shareholders or nominee directors may exist, should take effective measures to ensure that they are not used to launder funds or finance terrorism. This article examines the role of the beneficial owner in international financial structures, revealing the essence of the concept, its meaning and impact on financial processes. The study is aimed at revealing the key aspects related to the definition of the beneficial owner, its role in preventing aggressive tax planning, as well as in the context of compliance with international norms and standards in the field of financial transparency.

A computational approach to transparency in corporate governance across borders

This article delves into the intricate relationship between information asymmetry and financial reporting comparability, with a particular emphasis on earnings management (EM) in cross-border corporate governance settings. Utilising data from 2,475 non-financial firms across 19 frontier markets from 2003 to 2019, the study employs pooled OLS, fixed effects, and between-effects models to scrutinise the impact of factors like financial comparability, reputable auditing, analyst coverage, and legal systems on earnings management. The findings reveal that enhanced financial comparability, facilitated by strong governance mechanisms such as reputable auditors and analyst coverage, leads to a reduction in earnings management and information asymmetry. Interestingly, leverage does not serve as a constraining factor as commonly believed. The results contribute to the growing body of literature on the application of data science, and challenge the pecking order theory (POT), while lending support to the knowledge-based view (KBV)and convergence theories, thereby offering valuable insights into the role of corporate governance in mitigating information asymmetry.

Corporate governance transparency: Do firm‐level ethics policies and country‐level investor protections substitute or complement?

AbstractThis study empirically investigates the direct and interactive effects of firm‐level ethics policies and country‐level investor protection on firm corporate governance transparency. Using data on 9298 firms collected from the Bloomberg Terminal, we find that there is a positive relationship between country‐level investor protection and firm corporate governance transparency. The results also support the argument that firms with existing ethics policies exhibit greater corporate governance transparency. We also find that in countries with weaker investor protection, the impact of firm‐level ethics policies on corporate governance transparency is stronger. This study advances our understanding of the corporate governance transparency determinants, and the empirical evidence supports the notion that firm‐level factors such as ethics policies may compensate for the lack of formal national investor protection regulations.

International Corporate Governance: Post-Covid-19 Prospects for “The 21st Century Revolution” and “The Global Compromise”

Abstract The paper speculates on possible post-COVID developments in two prospects for evolution of international corporate governance. The first, labelled “the 21st century revolution in ownership” would acknowledge the supremacy of a successful national model of corporate governance based on an emerging allegedly new type of ownership, which might be introduced worldwide. The second option, named “the global compromise” implies combining “good practice” elements from different national models into a commonly accepted global model. The economic impact of the recent crisis might accelerate trends that were present already in the pre-COVID-19 period. Rapid digitalization of society would help increase transparency in corporate governance and contribute to higher shareholder participation. The need for resilience would encourage corporate governance reforms leading to convergence to a more stakeholder-oriented model. However, differences among national models are likely to persist, so neither of the two options will be fully realized in the immediate aftermath of the crisis.

Transparency on Corporate Governance and board of directors’ strategies

Based on agency and asymmetric information theories, the objective of this paper is to investigate whether the transparency on corporate governance is determined by strategies followed by the board of directors (liquidity, investment, capital structure, innovation and board composition impact on the corporate governance transparency). The study sample is composed by 826 observations from Latin American firms during the period 2004-2010 (128 unique firms). A two-way cluster standard errors and GMM methods have been adopted to perform the econometric analysis. Results suggest that corporate governance disclosure is attributable to changes on firm’s decisions made by the board with respect to financial aspects and innovation. However, the impact upon transparency of board composition with regards to female directors, independence and size of boards are attributable to industry and/or country effects. Although the main limitation of the study is focused on the period of analysis, the results provide important implications for the business sector, demonstrating that the board composition and the financial and innovation strategies adopted by the board encourage greater corporate transparency, thus increasing confidence in the markets.

Analisis Lima Prinsip GCG Dalam Implementasi Sifat Nabi Muhammad SAW

There are five principles of Good Corporate Governance, but the principles of GCG are also inseparable from the values ​​taught in Islam, especially those presented by the Prophet Muhammad SAW. The study was carried out qualitatively, describing the moral example of the Prophet Muhammad SAW with the principles of good corporate governance. The findings of this article illustrate the exemplary morality of the Prophet Muhammad, among others. Shiddiq, Amanah, Tabligh and Fathanah can be found in GCG principles. The author links these GCG principles with the moral example of the Prophet Muhammad SAW, because they are interrelated and emphasize that ethics applied in life cannot be separated from religious values. The greedy nature of most people must be controlled from a religious point of view, so that they are not always satisfied with worldly life. The Prophet's moral example is found in good corporate governance, first, Shiddiq, namely the nature of the prophet, which means honesty in deeds and words including transparency and independence, as good corporate governance. Trust implies responsibility and accountability, where a person can be trusted and is responsible for all actions taken. Tabligh is featured in Good Corporate Governance Transparency. The essence of Fathanah is embodied in justice which includes precision and prudence. The exemplary character of the Prophet Muhammad SAW is interrelated with GCG so that companies can emulate the example of the Prophet in business management so that companies can achieve even better results

Areas for development of corporate governance in Russia with regard to the escalation of international tension

Subject. The article investigates approaches to corporate governance in Russia in the context of international tensions. Objectives. The aim is to analyze policy of the Bank of Russia in the sphere of corporate governance. Methods. We employ general scientific research methods. Results. We performed an analysis of scientific and practical approaches to corporate governance, considered problems related to transparency of corporate governance. Conclusions. In the face of sanctions, Russian companies should strike a balance between the non-disclosure of important information about shareholders and top managers and the need to comply with corporate governance standards.

TRANSPARENCY LEVEL OF GOOD CORPORATE GOVERNANCE AND BOARD CROSS-DIRECTORSHIP ON COMPANY VALUE

The implementation of good corporate governance practices aims to optimize the allocation of company resources to achieve the growth and welfare of company owners. In the long term, effective corporate governance can improve company performance, which benefits the shareholders and public. This research focuses on manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2019. The level of transparency of good corporate governance and cross-directorship on company value were examined. This study used historical data, and multiple regression analysis was operated to analyze the data. The results concluded that corporate governance transparency has a significant effect on company value with corporate governance practices (in accordance with KNKCG), which can help managers describe their level of transparency in implementing good corporate governance. The cross-directorships board also has an impact on company value. This role is beneficial for obtaining necessary information and resources, considering that limited resources can create competitive advantages.
 Keywords: company value, cross-directorship, good corporate governance, transparency

Methodological Aspects of the Relationship Between Corporate Governance and Firm Performance

This article seeks to examine the effect of corporate governance transparency on the firm performance of emerging markets companies from 2009 to 2020, specifically, to investigate the role of the board of directors and corporate governance disclosure on firm performance.

Earning Management Actions and Conditional Revenue as Managerial Efforts to Maintain Bond Rating

The purpose of this study is examine the analysis of factors affecting Bonds rating of non-financial companies listed on Indonesia Stock Exchange for the period 2012-2016. Sample was selected using purposive sampling method amounted to 30 companies. Data processing techniques using multiple regression analysis what helped by SPSS program. The result of this study shows that partially company’s size, company’s growth, and auditor size have significant influence on bonds rating, while the earnings management have no significant effect on bonds rating. This result supports the Heintz (2017) study that management will think twice about earnings management when rating bonds. This is based on the principle of transparency in corporate governance that the actual company's performance will better reflect the company's position as a good bond issuer. However, this study shows that company’s size, company’s growth, and auditor size have a significant effect on bonds rating respectively. This result proves once again that in determining the bond rating, the factor of firm size, growth and auditor size are very important factors in bond rating. Without having to do earnings management then if the company has good size, growth and auditors size related then it will also be good to bond ratings according to the criteria of these rating providers.

베트남 기업 지배구조의 젠더 다양성과 경영 투명성

중국을 대체하는 신흥시장으로 주목받는 베트남은 여성의 경제활동 참여율과 여성 경영자 비율이 높은 국가이다. 이에 본 연구는 2015년에 세계은행(World Bank)에서 실시한 기업설문에 참여한 989개 베트남 기업 대상으로 지배구조의 젠더 다양성과 뇌물공여, 외부감사, 외부 파이낸싱 비율 간의 관계를 분석하였다. 그 결과, 여성 CEO는 비공식 경쟁자가 존재할때 남성CEO보다뇌물을적게 공여하였다. 또한, 여성리더(여성 CEO 또는 사주) 기업은 남성 리더가 경영하는 기업과 비교하면 외부감사를 시행할 가능성이 컸다. 그리고 여성 리더 기업이 남성 리더 기업보다 외부 파이낸싱 비율이 높았다. 본 연구의 결과에 대한 함의와 향후 연구 방향을 논의하였다.

Corporate Governance Transparency in Small Listed Entities: The Case of Malta

Purpose: The objectives of this study are to examine whether a lack of transparency is a common corporate governance feature of listed entities (“MLEs”) in the small European state of Malta and, if so, to assess the possible implications of such a stance. Design/Approach/Methodology: In order to achieve such research objectives, a predominantly qualitative mixed methodology was adopted. This involved carrying out thirteen semi-structured interviews with MLE and audit firm representatives, these being supported by an examination of the corporate governance statements of MLEs for the 2015-2017 periods. Findings: Results show a general lack of transparency in corporate governance reporting, with a common MLE tendency to comply only at a superficial level with the principles of good corporate governance and thus to often fail to sustain an appropriate level of transparency and governance structures. Practical Implications: It is recomended to increase company and shareholder awareness so as to help towards further improving current attitudes. Originality/Value: The study is particularly envisaged to contribute towards encouraging stakeholders in small-state contexts to reassess their current perspectives towards corporate transparency.

New Outlines of Corporate Governance Transparency in Russian Electric Power Industry in the Interests of Investors

The paper performs an in-depth assessment of the current transparency of corporate governance of Russian power companies in the interests of long-term investors. It uses the methodologies of Standard & Poor's, Spencer Stuart and Transparency International, and the criteria of the new Russian Corporate Governance Code. It identifies new outlines of transparency for these companies relating to expanding the list of criteria for its assessment and improving the quality of the information disclosed. It takes into account the results of a comparative analysis carried out in regard of the current information disclosure in the considered companies with its disclosure at the beginning of the post-reform period. The article features the additional data obtained by comparing the information disclosure in Russian power generating companies with leading national companies, and the largest corporations in Europe, the United Kingdomб and the United States. It places an emphasis on the special significance of the transparency of the ownership structure and efficiency of companies Board of Directors, determined by an increase in the offshore assets and violation of the rights of minority shareholders. It lays the stress on the need of timely updating and developing new internal documents to enhance the transparency quality of corporate governance in the interests of investors.

COMPARATIVE ANALYSIS OF UNDERSTANDING TRANSPARENCY IN CORPORATE GOVERNANCE AND ACCOUNTING

Introduction. Improving the corporate governance system in modern conditions presupposes ensuring its transparency, which will contribute to increasing the effectiveness of decisions made both by the management of corporate structures and by external stakeholders. It is necessary to determine the components of this category to ensure a high level of corporate transparency, which will form further ways to improve it, in particular, by developing a system of accounting and analytical support for corporate governance. Methods. The author uses dialectical and systematic approaches to study the features and differences of corporate governance and accounting systems; abstract and logical method – for theoretical generalizations and substantiation of ways of improving accounting for corporate needs of enterprises. Results. The absence of a common understanding of the concept of corporate transparency has been determined. Three main options for understanding the importance of transparency in corporate governance and accounting have been identified. The features of understanding of transparency in corporate governance in the context of the stakeholder approach have been revealed. The features of ensuring corporate transparency in the context of the existence of the problem of economic security and confidentiality of information have been highlighted. Information transparency in the corporate structure is defined as a system of relationships and interactions between its stakeholders, which is that the entities generating and disseminating information provide all other interested parties with the necessary information for the management decisions and their further implementation in the necessary form. Discussion. Research prospects consist in certain components of the concept of transparency in corporate governance, used by researchers to substantiate its essence (openness, understandability, quality). Keywords: corporate governance, transparency, accounting principles, quality characteristics of useful financial information.

산학협력단 지배구조의 투명성 강화 방안

산학협력단 지배구조의 투명성 강화 방안

Obaveza društva kapitala da postavi internet stranicu, kao instrument za postizanje transparentnosti korporativnog upravljanja u turskom kompanijskom pravu

One of the most noteworthy innovations in the new Turkish Code of Commerce,1 published in 2011, was the capital companies' obligation to set up a website. It was aimed to institutionalize the companies, ensure that local and foreign investors have the right to get information about the com­pany, and ensure transparency of corporate governance in view of meeting the requirements of harmonization of Turkish Law with European Union Law. Before the Code entered into force on the 1st July 2012, the legislator had shifted on the scope and sanctions of this obligation, especially in re­sponse to the reactions from small-scale capital companies. While all capital companies were initially obliged to set up a website, o the last amendments envisaged thatthis obligation applies only to capital companies which are subject to independent audit. The obligation of capital companies to set up a website is regulated in Article 1524 of the Turkish Code of Commerce, which prescribes that only the capital companies which are subject to independent audit are obliged to set up a company website. Companies must fulfill their obligations by opening a website within three months from the date of trade company registration, publishing a certain portion of the site and posting company announcements and notices, as prescribed by the law. In case a company fails to comply with these obligations, administrative and penal sanctions will be applied.

Criminal Legal Support of the Principle of Information Transparency and Corporate Governance

The article is devoted to the elements of the offence of evasion of disclosure or the provision of the information specified in the legislation of the Russian Federation on securities, which poses a direct threat to the social relationships based on transparency of corporate governance. In order to ensure the transparency of the activities of the Corporation it is essential that public corporate information and insider information be the subject to mandatory disclosure, and work-related information that is accessible only to a certain circle of persons be the subject for accordance. It is concluded that the subject of a crime under Art. 1 185 of the Criminal Code is the corporate information of two kinds: 1) information defined in the legislation of the Russian Federation on securities subject to mandatory disclosure; 2) information defined in the legislation of the Russian Federation on securities to be provided. It is noted that, depending on the subject matter, the objective part of the case under consideration is characterized by two types of acts: with regard to the information of the first type, the legislator establishes liability for omissions in the form of malicious evasion of disclosure or provision of information and, in the case of the second type-in action in the form of deliberately incomplete or false information. The author analyzes the concept of avoidance as a special kind of failure to perform obligations imposed upon a person within certain legal relations. Correlation between such characteristics as "malice", "repetition" and "consistency" is provided. Upon this it is suggested that the indication of malice be abandoned in Article 1 185 of the CC, replacing it with a repeated, i.e. the act is committed by a person under administrative punishment for the same act, at a time when it is subjected to an administrative sanction. In addition, the content is mapped to actions such as the provision, distribution and disclosure of the information specified in the legislation of the Russian Federation on securities. The author provides her opinion on changes in the construction of the whole gross evasion of disclosure or the provision of the information specified in the legislation of the Russian Federation on securities, by excluding from its mandatory signs a socially dangerous consequences in the form of large-scale damage. In conclusion, a new edition of Art. 1 185 of the Criminal Code is formulated.

KB Kookmin Bank in Korea

KB Kookmin Bank (KB) was the most prominent commercial bank in Korea. However, KB faced two challenges: declining firm performance and a lack of transparency in corporate governance at the level of its financial group, KB Financial Group (KBFG). By the end of 2012, KB was not a market leader in Korea any more. In addition, a conflict arose between the CEO and some members of the board of directors (BOD) of KBFG when an insider leaked private information to the International Shareholders Services (ISS). The insider reported that certain BOD members decreased firm value by disrupting the senior management’s strategic plan to increase the firm’s long-term competitiveness, which required attention from institutional investors. KBFG had three issues based on the inside information provided and an independent analysis. First, its CEO had been selected from outside KBFG, and he was under pressure to improve firm performance before his term was over. Second, some KBFG BOD members did not represent the interests of the company’s general shareholders, including foreign institutional investors and the National Pension Services of Korea. Finally, the heavy influence of the Korean government was culturally ingrained within the corporate governance structure of KBFG.