Weak Governance Research Articles

Corporate ownership and firm performance. Evidence from an emerging market

PurposeThis paper aims to examine the relationship between corporate ownership and firm performance, and the mechanisms through which ownership creates the firm value. Vietnam has been chosen as the research site because it is characterized by high ownership concentration, a high level of state ownership, strong incentives for foreign ownership and a weak external governance system.Design/methodology/approachWe use data on the ownership structure of 527 listed firms in Vietnam during the 2010–2021 period. Corporate ownership includes concentrated, state and foreign ownership, while firm performance is measured by ROA and Tobin’s Q. In addition to Pooled OLS, system GMM and the propensity score matching are employed to mitigate the possibility of unreliable and biased results.FindingsWe find that firms with highly concentrated ownership tend to have better performance. Both state ownership and foreign ownership with their unique advantages contribute to enhancing firm performance. Further analyses delve into specific channels through how controlling shareholders, state and foreign owners facilitate firm value creation: the ease of access to capital, the lower cost of capital and the higher sales. Our results are robust to alternative proxies for ownership concentration and different methodological approaches.Originality/valueOur study contributes to the ongoing debate about the ownership–performance relationship by providing novel insights into how corporate ownership influences firm performance.

SUSTAINABLE WATER RESOURCE MANAGEMENT IN NIGERIA: CHALLENGES, INTEGRATED WATER RESOURCE MANAGEMENT IMPLEMENTATION, AND NATIONAL DEVELOPMENT

Water resource management is essential for societal advancement, as water supports various human activities, including domestic, agricultural, industrial, and recreational uses. In Nigeria, the challenges of managing water resources are exacerbated by uneven distribution, population growth, and inadequate infrastructure. Despite Nigeria's significant renewable freshwater resources, only 69% of the population has access to basic water services, highlighting the nation's inefficiencies in water governance. The Integrated Water Resources Management (IWRM) approach offers a framework to address these challenges by promoting sustainable water use, stakeholder involvement, and the protection of ecosystems. However, Nigeria's implementation of IWRM faces hurdles, such as weak governance, conflicting institutional interests, and insufficient stakeholder engagement. This study examines the historical and current state of water resource management in Nigeria, its impact on national development, and the potential benefits of adopting IWRM. It explores lessons learned from global IWRM practices and provides recommendations for improving water governance to achieve the SDGs, particularly SDG 6 (clean water and sanitation) and SDG 11 (sustainable cities and communities). Addressing these challenges will require stronger institutional frameworks, cost recovery mechanisms, and the integration of local insights with international best practices.

Tracing the trail of eroded fertile soils during a high intensity rainfall event: A fingerprinting study in war-torn tropical mountains

The depletion of fertile topsoil presents a critical challenge in tropical mountain agroecosystems. Impacts are intensified during heavy storm events that strip unprotected topsoils and pose risks to downstream water ecosystems. To better understand such dynamics, we investigated an agricultural mountainous catchment located on the Democratic Republic of the Congo shore of Lake Kivu. This area is characterised by weak governance systems exacerbated by protracted violent conflicts, which have prevented the application of remediation practices to address extensive land use changes, including deforestation and monoculture proliferation, notably banana plantations. Additionally, the spread of Banana Xanthomonas wilt (BXW) has further augmented land use impacts. Herein the complete diseased mat uprooting (CDMU) method employed to combat the disease has resulted in significant erosion and sediment export rates. Following the recovery of banana plantations from CDMU, sediment export rates continued to increase without a clear responsible party but more as a legacy of past and present land degradation activities and embedded soil erosion and connectivity process pathways. To analyse the impact of high-intensity storm events coupled with the aftermath of conflict instability and the effects of BXW on erosion dynamics, the sediment fingerprinting technique was implemented. We collected 60 sediment source samples across a 42km2 catchment, predominantly cultivated since the mid-20th century. Samples spanned four main land uses/land covers: seasonal crops, banana plantations, bare or degraded soil, and channel banks. Additionally, mixture/target samples were collected at the summit of six fluvial terraces located at different altitudes along the vertical profile of the river after a high-intensity storm event. These terraces serve as natural indicators of sediment accumulation under different flow intensities, with higher terraces representing sediment deposition during higher discharge. Furthermore, sediment samples were collected via a gravity core in delta deposits at the river's inflow into the lake, allowing us to identify the main sources contributing to fine sediment export to the lake. This methodology enabled us to assess how sediment provenance has changed in response to varying discharge levels while elucidating the primary sources responsible for fine sediment inputs to the lake and the subsequent water quality decrease. Our analysis indicates increased contributions occurred from channel banks and degraded areas as discharge increased. Despite steep channel banks and degraded soils being primary sediment sources on the terraces, agricultural and banana sources predominantly contributed to the fine sediments exported to the lake. These findings underscore the hazards of high-intensity storm events in these fragile ecosystems and highlight the role of current banana plantation and cropland management in degrading land and water quality. Understanding the primary factors driving land degradation and sediment export is crucial for preventing further ecosystem degradation and mitigating heightened instability in conflict-affected areas. This research suggests that remediation practices should be incentivised to create buffer structures in upslope agricultural areas and protect the fertile sediments from banana plantations from being exported to the lake if socio-cultural and economic hurdles to implementation can be overcome.

The Effect of Trade Openness and Political Fragility on Foreign Direct Investment

This study examines the influence of trade openness and political fragility on Foreign Direct Investment (FDI) inflows in six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, over the period from 2013 to 2022. Trade openness is analyzed as a critical economic factor that can attract FDI by facilitating international trade and reducing barriers. Political fragility represents the political dimension, reflecting how instability and weak governance can deter foreign investors. Additional economic factors considered include market size, interest rates, and infrastructure, while crime rates represent the social dimension affecting investment decisions. Secondary data were sourced from the World Bank, Numbeo, and The Fund for Peace. Panel data regression analysis was conducted using Ordinary Least Squares (OLS), and the Common Effect Model was selected. The results reveal that trade openness has a positive and significant impact on FDI inflows, emphasizing the importance of liberal trade policies in attracting foreign investment. Conversely, political fragility negatively and significantly affects FDI, highlighting that political instability can undermine investor confidence. Market size and interest rates also positively influence FDI, while infrastructure and crime rates have a negative effect. These findings suggest that governments aiming to boost FDI should prioritize enhancing trade openness and addressing political fragility by fostering stable political environments and effective governance.

POVERTY, DECLINE OF MORALITY AND SOCIAL JUSTICE IN NIGERIA

This paper examines poverty and decline of morality and social justice in Nigeria. It is a decrease in ethical behavior and the commitment to fair treatment for all members of a community, often manifested through increased social inequality, corruption, disregard for human rights, and a growing acceptance of immoral actions, leading to a sense of societal decay and a weakening of collective values. Secondary sources of data and qualitative analysis was used for the study. Economic pressures, weak governance and corruption, cultural erosion, social fragmentation and breakdown of family structures are some drivers of decline of morality and social justice. This has led to survivalist mentality. This qualitative study explores the interconnections between poverty, morality, and social justice in Nigeria, emphasizing the transformative role of education in addressing these issues. Conflict theory was used as the theoretical framework for the study. It was recommended that Strengthen social institutions, create employment opportunities and social welfare schemes that will alleviate poverty, encourage good leadership and governance. Others are government should adopt dialogue and civil society engagement with a view to promote social justice and morality and integrate moral education into school curricula to promote values such as honesty, integrity, and respect for human rights and promote civic education to raise awareness about citizens' rights and responsibilities.

ADVERBIAL VALENCE OF INTRANSITIVE VERBS IN THE MODERN ARMENIAN LANGUAGE

The article examines one of the manifestations of the valency of intransitive verbs in the Modern Armenian language - adverbial valency (the ability to accept an adverbial modifier), which has not been the subject of study so far. This is what determines the relevance of the study.Studying the adverbial valency of intransitive verbs will provide a more complete understanding of the compatibility of not only personal, but also impersonal intransitive verbs.Of all the intransitive verbs of the Modern Armenian language, only those verbs are considered that can imply and require combination with an adverbial modifier or an adverbial modifiers through strong government, both direct and indirect (mediated). Combination of intransitive verbs with an adverbial modifier by means of association or weak government is not of interest from the point of view of studying adverbial valency. The study of the adverbial valency of intransitive verbs in the Modern Armenian language shows that not all verbs have the ability to be combined with an adverbial modifier. Among intransitive verbs, those that lack the ability to combine with adverbial modifiers prevail. Some of the latter are distinguished by objective valency, while others have neither objective nor adverbial valency.At the end of the article, we made a number of conclusions arising from the theoretical provisions of the work.

THE INTERSECTION OF CORPORATE GOVERNANCE, ETHICS, INTERNAL AUDIT, AND BANKRUPTCY RISK MANAGEMENT: A BIBLIOMETRIC ANALYSIS

This study employs a mixed-methods approach to delve into the intricate interplay among corporate governance, bankruptcy risk, forensic accounting, internal auditing, and ethics. While prior research has highlighted the correlation between weak governance, increased bankruptcy risk, and ethical lapses, the synergies among these factors necessitate deeper investigation. The authors conducted a meticulous bibliometric analysis of the Scopus database, focusing on the realms of accounting, internal audit, forensics, bankruptcy, and ethics within the overarching domain of corporate governance. Emphasizing the importance of robust governance principles in mitigating risks in accounting, the study revealed a substantial coverage of resources across various disciplines, with accounting (54.6%) and ethics (25.1%) leading the distribution. The dataset, comprising 5990 resources from 495 publications cited 151,911 times spanning from 1978 to March 2024, serves as a valuable resource for scholars aiming to fortify organizational resilience by integrating critical concepts identified in this research.

Communalizing private costs: Ownership concentration, institutions, and corporate environmental performance

AbstractResearch SummaryWe extend the property rights theory to show that stronger ownership control incentivizes owners to push for communalizing private environmental costs unless counterbalancing internal and external governance mechanisms are prevalent. Using a sample of 16,286 observations for 3275 firms across 43 countries between 2008 and 2017, we find robust evidence for a negative effect of ownership concentration on corporate environmental performance (CEP). However, we find that ownership concentration has a diametrically opposite effect in strong and weak governance contexts. In the presence of strong external (regulatory institutions) and internal (high board independence) governance, ownership concentration improves CEP. In contrast, it has the opposite effect in the presence of weak regulatory institutions and low board independence. We contribute to the open system logic of corporate governance for environmental sustainability.Managerial SummaryOur study shows that ownership concentration negatively impacts corporate environmental performance in the form of increased resource usage, emissions, and ESG controversies. This finding implies that there is a tussle over who bears environmental costs (i.e., privatized to the firms or communalized to the larger stakeholder bodies). However, we find that this negative performance outcome can be successfully mitigated by the quality of external (regulatory institutions) and internal governance (high board independence) mechanisms. Our study informs policymakers regarding the governance mechanisms through which the interests of the environment can be sincerely safeguarded in the face of short‐term value‐maximizing pressures from investors. These results also inform other stakeholders on how to nudge delinquent firms toward improving their CEP.

Shifting sands: the geopolitical impact of climate change on Africa’s resource conflicts

ABSTRACT This study examines the complex relationships among climate change, resource scarcity, and conflict in Africa, focusing on the regions of Darfur, Lake Chad, and South Sudan. This highlights how climate change is a threat multiplier, intensifying socio-political challenges and worsening competition over vital resources such as water and arable land. Through a comparative analysis of these regions, this paper explores how environmental degradation, combined with weak governance and ethnic tensions, has led to conflict. In Darfur, prolonged droughts and desertification have exacerbated competition between herders and farmers. At the same time, in the Lake Chad Basin, the drastic shrinking of the lake has created fertile ground for extremist groups, including Boko Haram. In South Sudan, the impacts of erratic rainfall and water scarcity have contributed to ongoing civil conflict. This paper emphasizes the importance of addressing these climate-driven conflicts through better governance, climate adaptation, and resource management. Ultimately, this study contributes to the broader understanding of how climate change exacerbates conflict in vulnerable regions and underscores the need for coordinated international efforts to mitigate these impacts.

Gender diversity on boards and earnings forecast accuracy: insights from India

PurposeThis paper explores the relationship between gender diversity on corporate boards and the accuracy of analysts’ earnings forecasts. The study focuses on gender-diverse boards as effective monitors, which are expected to influence corporate disclosures, reducing information asymmetry positively and improving forecast accuracy. The unique context of India’s gender quota policy on corporate boards and its relatively weak corporate governance structure offers an ideal setting to investigate this relationship.Design/methodology/approachThe study utilises the generalised method of moments dynamic panel regression to address this research objective, analysing data from 217 Indian firms listed on the National Stock Exchange from 2014 to 2019.FindingsThe findings reveal that greater gender diversity on corporate boards positively impacts forecast accuracy. Specifically, having more women directors on the board enhances forecast accuracy, with a critical mass of women directors (more than one woman) further amplifying this effect. The study also shows that independent women directors significantly improve forecast accuracy, whereas grey women directors (those with family connections or non-independent roles) negatively affect it.Originality/valueThis study contributes significantly in two key aspects. Firstly, it sheds light on the value of women directors on boards in a country where women’s representation is mandated. Secondly, the research highlights the crucial role of independent women directors in ensuring robust financial oversight, particularly in an emerging economy.

Policy framework for integrating data interoperability at public hospitals in South Africa

The implementation of data interoperability in healthcare relies heavily on policy frameworks. However, many hospitals across South Africa are struggling to integrate data interoperability between systems, due to insufficient policy frameworks. There is a notable awareness that existing policies do not provide clear actionable direction for interoperability implementation in hospitals. This study aims to develop a policy framework for integrating data interoperability in public hospitals in Gauteng Province, South Africa. The study employed a conceptual framework grounded in institutional theory, which provided a lens to understand policies for interoperability. This study employed a convergence mixed method research design. Data were collected through an online questionnaire and semi-structured interviews. The study comprised 144 clinical and administrative personnel and 16 managers. Data were analyzed through descriptive and thematic analysis. The results show evidence of coercive isomorphism that public hospitals lack cohesive policies that facilitate data interoperability. Key barriers to establishing policy framework include inadequate funding, ambiguous guidelines, weak governance, and conflicting interests among stakeholders. The study developed a policy to facilitate the integration of data interoperability in hospitals. This study underscores the critical need for the South African government, legislators, practitioners, and policymakers to consult and involve external stakeholders in the policy-making processes.

State Fragility and the Resurgence of Military Coups in West-Africa

State fragility and coups in Franco-phone West Africa constitute a worrisome political issue caused by weak leadership, instability, poverty, corruption, weak governance institutions, insurgency and terrorism, kidnapping and banditry, border porosity and high rates of military coup. The paper analysed the causes and consequences of military takeovers in West Africa and the role of regional organizations in curbing them. Secondary materials were used for data analysis. The paper concludes that the brazen-faced and audacious French imperialism in West Africa has contributed to the ongoing instability and insecurity in the subregion; creating a fertile ground for coup resurgence, which was driven by military leaders seeking to gain control and exploit the resources of the region for their own benefit. The paper thus suggests that as soon as the polity is stabilized, political power should be returned to the people in the affected States.

State Fragility and the Resurgence of Military Coups in West-Africa

State fragility and coups in Franco-phone West Africa constitute a worrisome political issue caused by weak leadership, instability, poverty, corruption, weak governance institutions, insurgency and terrorism, kidnapping and banditry, border porosity and high rates of military coup. The paper analysed the causes and consequences of military takeovers in West Africa and the role of regional organizations in curbing them. Secondary materials were used for data analysis. The paper concludes that the brazen-faced and audacious French imperialism in West Africa has contributed to the ongoing instability and insecurity in the subregion; creating a fertile ground for coup resurgence, which was driven by military leaders seeking to gain control and exploit the resources of the region for their own benefit. The paper thus suggests that as soon as the polity is stabilized, political power should be returned to the people in the affected States.

Do Unexpected Earnings of Industry Leaders Affect the Discretionary Reporting Behavior of Followers? Evidence From China

ABSTRACTThis study examines how the unexpected earnings of industry leaders influence the discretionary reporting behavior of industry followers. Chinese firms are required to disclose their annual earnings announcement (EA) dates before the fiscal year ends. Leveraging this unique setting, we demonstrate that followers delay their EAs in response to earnings surprises reported by industry leaders. This effect is more pronounced for followers who face lower costs of delaying (i.e., those with weak corporate governance and who face no penalties for delaying EAs) and those who receive greater benefits from delaying (i.e., those in more competitive industries and in industries where leaders meet or beat market expectations). We also find that, compared with other followers, those that delay EAs are more likely to engage in last‐minute earnings management by reducing their effective tax rates. Furthermore, our findings suggest that when industry leaders report good news, followers who delay EAs are more likely to do the same. However, we find no positive market reaction to these delayed EAs. Overall, this study provides new evidence that industry leaders’ earnings surprises significantly impact their followers’ decisions about discretionary financial reporting, including the delay of EAs and last‐minute earnings management.

Effective Government and Regional Technological Innovation: Evidence From 284 Cities in China

ABSTRACTBased on the exogenous shock of incorporating environmental performance into local officials' evaluations, this paper manually collects and collates publicly available data on environmental target constraints (constraints on government environmental indicators for the coming period) from city government work reports as well as panel data from 284 cities in China from 2003 to 2018, and adopts the DID model to explore the impact of local government environmental target constraints on technological innovation after the implementation of the environmental target responsibility system. Our analysis reveals the following key aspects. First, local government environmental target constraints can significantly enhance the quantity of technological innovation, and the conclusion is robust and reliable. Second, the mechanism test shows that local government environmental target constraints can significantly increase the probability of local governments setting soft constraints on economic growth targets, increasing local investment in science and education, and improving the intensity of environmental regulation to promote regional technological innovation. Third, local government environmental target constraints can more effectively promote technological innovation in cities with low fiscal pressure, weak local government competition, and higher level of economic development. Further analysis finds that the autonomous constraint on the environmental target of local government can promote effectively green substantive innovation. This research highlights the crucial role of environmental policy in influencing sustainable technological progress by demonstrating how local government environmental target constraints can act as a stimulus for technological innovation, especially green innovation.

The intersection of productivity and governance capacity in spatial inequality: the case of England’s devolution periphery

ABSTRACT Effective local and regional governance is important for tackling economic inequality between regions. However, a common problem is that the effectiveness of governance institutions also has an unequal spatial distribution. The relationship between regional distributions of productive and governance capacity is therefore crucial for a state’s ability to revitalise lagging regions. In this paper, we consider England’s ongoing attempt to address spatial inequality through asymmetric decentralisation. Applying a projected geography of England’s emerging devolution settlement, we identify a ‘devolution periphery’, located primarily in the east and west, which is lagging in both productive capacity and governance capacity. This contrasts with a governance core in the north and a productive core in the south, with Greater London an outlier excelling in both. To interpret these findings, we assess spatial inequality and the history of spatial rebalancing in France, Germany, and Italy, identifying key risks and success factors. Given that the UK fails on each of these, and given the compounding effects of weak productive capacity and weak governance capacity, we predict that England’s ‘devolution periphery’ is likely to fall further behind in the coming years. We conclude by drawing out four paradoxes facing policymakers when attempting to tackle spatial inequality.

Challenges and Opportunities Faced by the United Nations Stabilization Mission in the Democratic Republic of Congo in Fulfilling Its Mandate for Peace and Security in the DRC

The Democratic Republic of Congo (DRC) has been marred by protracted conflict, instability, and human suffering for decades. Studies on or and around United Nations Stabilization Mission in the Democratic Republic of Congo with respect to conflict, peace and security, portray shortcomings bordering on ineffectiveness. This presents a serious paradox and a question on conflict intervention by MONUSCO’s peace and security processes. The study objective was to evaluate challenges and opportunities faced by MONUSCO in fulfilling its mandate on peace and security processes in the DRC. The study explored Liberal Theory, Power Theory and Theory of Functionalism from which a conceptual model was drawn. The target population was 49,871 with a unit of analysis of 21,105 civilians comprising 5052 refugees, 4053 internally displaced persons and 12,000 local traders, 16,161 MONUSCO staff, 7,895 from major none governmental organizations (NGOs), and 4,710 from the political class, the rebel groups, and immigration. The study used random, stratified, snowball, and purposive sampling techniques to select 384 participants. The study was conducted in Eastern DRC. A descriptive survey research design was adopted. The primary and secondary data were collected using questionnaires, focus group discussions, observation guides, and key informant interviews. Content analysis was done for all qualitative data; statistical data was analyzed using descriptive statistics. The findings of the study indicate that, MONUSCO’s key challenges include; persistent violence of attacks by armed groups, mistrust and limited cooperation from government and local authorities, and logistical difficulties in accessing remote areas. The study concluded that mistrust and dearth of cooperation, non-guaranteed protection of the civilian population, and weak governance institutions are the major problems facing MONUSCO in achieving its mandate. The study recommends supporting the establishment of local and international judicial mechanisms to investigate and prosecute war crimes and human rights abuses, by ensuring that perpetrators are held accountable and encourage truth and reconciliation processes to address past injustices and promote healing within communities.

Study on the barriers and breakthroughs of resilience building in aging Urban communities from the perspective of risk management: A case study of Jin Guang Men community in Xi’an

The continuous escalation of social risks has exacerbated the challenges faced by aging urban communities. In this context, resilience building emerges as a critical approach, offering new perspectives and innovative solutions to address these issues. This paper applies the theories of risk society and resilience governance to establish an analytical framework for resilience governance, specifically examining the current status of resilience construction within the Jin Guang Men community in Xi’an. The findings indicate that resilience building within these aging urban communities is hindered by issues such as weak grassroots governance, deficient repair mechanisms, inadequate infrastructure, and a slow pace of information technology adoption. To effectively manage social risks, it is imperative to strengthen party leadership in governance, enhance community self-repair capacities, upgrade infrastructure, and accelerate the application of information technology. These measures are essential for bolstering the risk management capabilities of aging urban communities.

Corporate governance, blockholders, and financial distress: Global evidence

AbstractThis study examines the impact of corporate governance mechanisms and ownership structure on financial distress for 23 developed and 27 emerging countries across different markets and legal systems and during the crisis period. In developed markets, CEO duality increases distress, which can be mitigated through independent boards and majority blockholders. Independent boards, specifically in common‐law countries, alleviate distress, yet, may escalate the adverse impact of blockholders as independent boards may not be effective monitors. In emerging markets (EM), independent boards increase distress, potentially reflecting political appointments. Institutional blockholders hurt firm financial health, though, strategic blockholders may substitute for board monitoring in weak governance environments. During the crisis period, a larger and independent board has the potential to decrease financial distress.

Voices From the Frontline: A Reflexive Thematic Analysis Illuminating Perioperative Practice Realities in Southern Ethiopian Teaching Hospitals.

Despite national efforts, gaps persist in Ethiopian perioperative care. This reflexive thematic analysis aimed to investigate the contextual challenges faced in delivering perioperative care. In-depth interviews were conducted with 20 healthcare professionals, including anesthetists, nurses, and surgeons, to gain a frontline perspective of perioperative practice realities. The analysis revealed eight interconnected themes: systemic infrastructure vulnerabilities, workforce expansion uncertainties, workforce demoralization, fragile perioperative safety culture, hierarchical structures and communication barriers, financial barriers to care, fragmented information systems, and fragile governance with sociopolitical instability. Local deficiencies in resources and equipment were amplified by global challenges, creating a precarious care environment. While workforce numbers increased, concerns persisted about competency and training quality. Systemic pressures and unmet professional needs contributed to staff demoralization. Inconsistent safety practices and top-down quality improvement initiatives hindered sustainable progress. Rigid hierarchies and departmental silos impeded effective teamwork and resource coordination. Financial constraints created significant barriers to care access and ethical dilemmas for providers. Incomplete digitalization and inconsistent documentation practices compromised continuity of care and data-driven improvements. Overarching sociopolitical instability and weak governance cascaded into healthcare system disruptions. The findings underscore the need for a multifaceted approach to strengthen perioperative care, including improving infrastructure, enhancing workforce development, fostering a culture of safety, breaking down hierarchical barriers, addressing financial accessibility, implementing robust information systems, and building resilient governance structures amidst adversity.