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The ecological accountability reform is an emerging environmental regulatory tool used by transition economies to correct failures and deviations in the traditional central-local environmental governance mode. This paper applies the propensity score matching with difference-in-differences method to test the impact of the central environmental inspection, an ecological accountability mechanism, on the investment efficiency of enterprises. The results reveal that the central environmental inspection can improve the corporate investment efficiency by resisting the urge to over-investment. Furthermore, this policy can improve corporate investment efficiency by dual functions of the incentive effect of increasing R&D investment and the pushback effect of financial risk. After a series of robustness checks, the results remained reliable. Heterogeneity tests show that the effect gradually appears in regions that implemented policy lately or with re-inspection, indicating the necessity of establishing a long-term mechanism. What's more, the positive effect of the central environmental inspection on corporate investment efficiency will be more significant in SOEs, large companies, and companies in provinces with weak environmental regulations. To achieve carbon peaking and carbon neutrality goals, this paper provides implications for improving collaborative governance system of local environmental protection and strengthening the linkage of environmental regulation and enterprise investment. [ABSTRACT FROM AUTHOR]

From a legal standpoint, this paper critically examines the potential and challenges in deploying Artificial (AI) Intelligence in corporate governance in Nigeria. The examination revealed that leveraging AI in corporate governance could enhance corporate efficiency in Nigeria through improved decision-making, risk management, financial reporting, and stakeholder protection and engagement. However, possible bias and data privacy breaches are significant risks that pose ethical challenges when AI is deployed in corporate governance. Particularly, Nigeria is bisected by several socio-economic challenges, such as a lack of a robust AI framework and insufficient technological expertise to develop and optimize AI systems. Furthermore, Nigeria currently lacks comprehensive national AI legislation, thereby resulting in the absence of a legal basis for the effective deployment of AI in corporate governance and board management. Against this backdrop, this paper proposes an AI-based corporate governance framework, which can be adapted into future legislative reforms to streamline decision-making processes and improve board accountability and stakeholders' protection in companies. Overall, it argues that AI legislation and policies are vital to the success of efforts to implement AI-based corporate governance in Nigeria. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency mandated about 80,000 private sector entities to publicly disclose their annual financial statements. Design/methodology/approach: The main analysis covers more than 4,000 large, medium, small and micro private sector entities, for which the data is obtained from the Ministry of Finance of Georgia. This paper builds an empirical model of logit/probit regression, with industry fixed and random effects to investigate the drivers of the corporate disclosure timing. Findings: Findings suggest that the mean reporting time lag is 279 days after the fiscal year-end, that is nine days after the statutory deadline. Almost one-third (30%) of the entities miss the nine-month statutory deadline, while the timely filers almost unexceptionally file immediately before the deadline. Multivariate tests reveal that voluntarily filing entities completed the process significantly faster than those mandated to do so; audited financial statements take more time to be filed, whereas those with unqualified audit opinion or audited by large/international audit firms are filed faster than their counterparts. The author concludes that despite the overall high filing rates, the timing of corporate disclosure is not (yet) efficiently enforced in practice (but is progressing over time), whereas regulatory incentives prevail over market incentives among the timely filers. Originality/value: To the best of the author's knowledge, this is the first study that explores corporate disclosure timing incentives in the context of Georgia. This study extends prior literature on the timing of financial information from an emerging country's private sector perspective, with juxtaposed market and regulatory incentives. [ABSTRACT FROM AUTHOR]

We examine impact of corporate governance on firm performance following the implementation of the changes to the Code of Corporate Governance of Pakistan in 2012. Our sample period from 2008 to 2022 include periods of political instability and shifts in Pakistan's political landscape, providing an opportunity to examine the effectiveness of corporate governance mechanisms in enhancing accounting‐ and market‐based firm performance measures. We find significant improvements attributed to reforms in the regulatory framework surrounding corporate governance practices particularly from expanded scope and composition of boards and audit committees. This led to broader capabilities and effective controls, thus improving firm performance and investor confidence more so during periods of political instability and changes in political ideology. [ABSTRACT FROM AUTHOR]

Purpose: This paper studies the relationship between CEO pay-performance sensitivity and CEO pay for luck as well as the asymmetric benchmarking of CEO pay in which good luck is rewarded but bad luck is not penalized symmetrically. We further explore the impact of the regulatory changes on executive compensation taking effect in the 2000s on CEO pay for luck and asymmetry. Design/methodology/approach: In this study, we examine the relationship between CEO pay-performance sensitivity and CEO pay for luck and the asymmetric benchmarking of CEO compensation. The sample consists of DJIA component companies over a 71-year period from 1950 to 2020. CEO pay-performance sensitivity is measured by both delta and Jensen-Murphy pay-performance sensitivity. Findings: We find that an increase in CEO pay-performance sensitivity as measured by both delta and Jensen-Murphy pay-performance sensitivity leads to an increase in the degree of CEO pay for luck but tends to reduce the level of CEO pay for luck asymmetry. In addition, we find that the major pay-related regulatory changes in recent years have mitigated the degree of CEO pay for luck and pay asymmetry, in which CEO pay structure and the associated CEO pay-performance sensitivity are major mechanisms through which the regulatory changes take effect. Research limitations/implications: Our findings provide empirical evidence supporting the argument that both optimal contracting and rent extraction should be considered as important determinants of CEO compensation. Practical implications: When a firm designs the pay packages for its CEO to align CEO wealth to firm performance, CEO pay-performance sensitivity is expected to improve. However, the improved CEO PPS can also lead to an increased CEO pay for non-performance (Luck), which is an undesired outcome from the shareholder view. Therefore, a firm should thoroughly consider various advantages and disadvantages when compensating its top executives. Third, pay-related regulations have indeed achieved some intended outcomes such as the diminished pay for luck and asymmetry, but they also exacerbated the positive relationship between CEO pay-performance sensitivity and the asymmetric benchmarking of CEO pay. It seems that executive pay-related regulations cannot achieve perfect outcomes without side effects. Continuous reforms and regulations on corporate governance should be a dynamic process under various changing situations. Originality/value: This study contributes to the literature on executive pay for luck and asymmetry in several ways. First, our study is among the few studies empirically testing the relationship between CEO pay-performance sensitivity and pay for luck and asymmetry. We find that CEO pay-performance sensitivity tends to increase the degree of CEO pay for luck but reduce the level of asymmetric benchmarking of CEO pay. These findings partly support the rent extraction theory grounded on the managerial power hypothesis and partly support the optimal contracting theory. Our findings confirm that the optimal contracting theory and the rent extraction theory are both important for explaining the practices and historical trends of CEO compensation. [ABSTRACT FROM AUTHOR]

This study examines how credit reforms impact commercial bank loans and nonfinancial firms' debt. Using two international samples for commercial banks and nonfinancial firms from 2004 to 2019, we find that global information‐sharing reforms encourage banks to increase corporate loans, thus improving firm debt financing, particularly in countries with weak creditor rights. Legal rights reforms significantly boost corporate bank loans in emerging countries and enhance firms' debt financing in developed countries. Our findings suggest credit reforms positively impact firms' financing; however, their effects on debt financing supply and demand vary by economic development level and the strength of creditor rights. [ABSTRACT FROM AUTHOR]

Corporate leverage is an indicator of economic health, and this topic has attracted a great deal of attention since the international financial crisis of 2008. This paper constructs a model of enterprise decision-making under a digital government and theoretically analyzes how the government digital reform impacts corporate leverage and the mechanism of this impact. Theoretical analysis has previously shown that digital reforms by governments help to ease the information asymmetry between banks and enterprises, which in turn affects the actual economic activities of enterprises. Based on these findings, the "one-stop government service" natural experiment used in this paper and the empirical analysis using a multiphase difference-in-differences (DID) method show that digital government can inhibit the short-term debt financing of enterprises while improving their long-term debt financing. This study further finds that the digital government can improve the level of long-term debt for long-term use, thereby reducing corporate leverage. By enriching the theoretical and empirical research on government digital reform, this paper contributes significant theoretical and practical insights to the literature on corporate leverage in the context of government factors. [ABSTRACT FROM AUTHOR]

Using tax centralisation reform enacted to eliminate decentralised tax authorities, we find firms have lower probabilities of tax and accounting fraud since its implementation. Our analysis shows the negative impact of the reform on tax and accounting fraud becomes stronger among firms with weaker tax enforcement, indicating that the reform plays a corporate governance role through strengthening tax enforcement. Additionally, we find this effect is stronger when firm‐level governance is weaker and stronger in firms with higher agency costs. Finally, the reform effect is weaker among non‐state‐owned enterprises with political connections to the central government. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study aims to investigate the effect of the diversity of the board of directors (BOD) and the shariah supervisory board (SSB) on credit risk, insolvency, operations, reputation, rate of deposit return risk (RDRR) and equity-based financing risk (EBFR) of Islamic banks (IB). Design/methodology/approach: The study uses 68 IBs from 19 countries covering 2009 to 2019. BOD and SSB diversity attributes data were hand-collected from the annual reports. Financial data were collected from the bankscope database. The robustness test and two-step system generalized method of moment estimation technique were used to address potential endogeneity issues. Findings: This study provides evidence that diversity in the experience and cross-membership of board members decreases the risk. Gender diversity increases the risk, but the BOD's education level diversity has no relationship with risk. More interestingly, influences in the experience and cross-membership of the SSB's members positively influence risk. However, members' education levels and gender diversity have not been proven to affect risk. Practical implications: The paper recommends that Islamic banking authorities play a stronger role and make a greater effort in driving corporate governance reform. Also, determining individual characteristics of the board is a requirement to become a member of a BOD or an SSB. Originality/value: This paper expands the commitment literature through the diversity of the BOD's and the SSB's members in terms of their education levels, experience, cross-membership and gender. This study expands the list of potential risks for IBs, by including the RDRR and EBFR. [ABSTRACT FROM AUTHOR]

Improving the incentive mechanism and institutional framework of green finance policy is important to promote the synchronization of environmental management and enterprise development. Based on China's green finance reform and innovation pilot (GFRIP) policy in 2017, this study constructs a quasi‐natural experiment with a sample of A‐share listed companies and draws the following conclusions. (1) The effectiveness of GFRIP policy in significantly promoting enterprises' ESG performance in pilot areas, robustness tests such as propensity score matching and placebo tests reconfirm conclusions. (2) The GFRIP policy can effectively improve enterprise ESG performance by easing financing constraints, promoting green investment, and improving managers' green cognition. (3) Both external environmental law enforcement and internal manager environmental awareness can enhance the promotion effect of the GFRIP policy on ESG performance. (4) Heterogeneity analysis shows that the ESG performance of state‐owned enterprises, large enterprises, and high‐polluting enterprises is more affected by pilot policy. The results of the study provide a valuable perspective on how the government can promote green finance policies and implications for enterprises' sustainable development. [ABSTRACT FROM AUTHOR]

In the wave of the digital economy, supply chain digitalization is a visual manifestation of businesses integrating digital technology into their production and operations. It helps companies enhance operational efficiency and competitiveness, gradually becoming a key driver for corporate sustainable development. This study selects Chinese A‐share listed companies from 2012 to 2021 as research samples and empirically tests the impact of supply chain digitalization on corporate environment (E), social responsibility (S), and corporate governance (G) (ESG) performance. We find that supply chain digitalization significantly promotes corporate ESG performance, which is achieved by reducing information asymmetry and easing financing constraints. The positive effect of supply chain digitalization on corporate ESG performance varies significantly among different enterprises, with more prominent effects in mature enterprises, those at both ends of the industrial chain, and those located in regions with lower degree of marketization. Further analysis reveals that supply chain digitalization brings about an innovation effect for enterprises. These findings enrich the research on supply chain digitalization and corporate ESG performance, providing valuable insights for promoting supply‐side structural reforms and corporate sustainable development. [ABSTRACT FROM AUTHOR]

The global financial crisis of 2008 exposed significant weaknesses in the corporate governance practices of banks, leading to excessive risk-taking, lack of oversight, and eventual failures. In response, corporate governance reforms have been implemented in the banking sector to enhance stability, restore public confidence, and protect the interests of depositors. Effective corporate governance ensures that banks are managed responsibly, aligning the interests of various stakeholders. Key areas of focus for these reforms include board composition and effectiveness, risk governance and management, remuneration policies, internal controls and auditing, transparency and disclosure, and stakeholder engagement. Reforms emphasize the importance of having a diverse and independent board, robust risk management frameworks, aligning executive compensation with long-term performance, strengthening internal controls and auditing processes, enhancing transparency and disclosure requirements, and engaging with stakeholders, including depositors. Initiatives such as the Basel Committee on Banking Supervision's guidelines and the European Union's Capital Requirements Directive IV (CRD IV) have aimed to strengthen governance frameworks and promote best practices within the banking industry. These reforms mandate the establishment of dedicated risk committees, stress testing practices, clawback provisions in remuneration structures, and the implementation of effective compliance and auditing functions. Effective implementation of corporate governance reforms is crucial for enhancing financial stability, mitigating systemic risks, and protecting depositors' interests. By promoting responsible and ethical practices, strengthening oversight mechanisms, and aligning incentives with long-term sustainability, these reforms aim to restore public confidence in the banking industry and contribute to the overall resilience of the financial system. [ABSTRACT FROM AUTHOR]

The text examines the evolution of the labor movement among education workers during the re-democratization of the 1980s. It discusses the educational reforms implemented under new public management, fiscal adjustment, and productive restructuring, which shifted the labor movement’s stance from confrontation to negotiation and consensus, influenced by the Third Way. During the Lula and Dilma administrations (2003-2016), there was greater openness to participation and high-level negotiations, though this reduced broad mobilizations in defense of public education. During this period, unions were divided between supporters and opponents of the government. The 2008 crisis and the June 2013 protests, along with the fiscal adjustment measures of 2014, reignited strikes and mobilizations. The counter-reforms of the Temer (2016-2018) and Bolsonaro (2019- 2020) governments repositioned the labor movement towards a convergent agenda in defense of public education. The labor movement played a crucial role in electing Lula in 2022, focusing on the revocation of counter-reforms. Finally, the text addresses recent struggles and resistance from educators and social movements against the corporate reform project in education, the current government's responses, and present challenges. [ABSTRACT FROM AUTHOR]

This paper investigates whether there is a difference between business group affiliated and independent firms in terms of complying with the corporate governance principles. Based on data drawn from the corporate governance principles compliance reports of Borsa Istanbul (BIST) companies, the results of the study show that group affiliated firms have higher compliance with the corporate governance than the independent ones in general. The difference of the mean scores in compliance with the corporate governance, stakeholders, board of directors principles between group affiliated companies and independent ones is significant. However, the mean values in shareholders and public disclosure and transparency principles do not differ between these groups of firms. This study aims to advance the research on corporate governance and business groups by considering the corporate governance differences between business group companies and unaffiliated ones in an emerging economy. [ABSTRACT FROM AUTHOR]

Copyright of Informacion Comercial Espanola Revista de Economia is the property of S.G.E.E.I.P.C., Secretaria de Estado de Comercio, Ministerio de Industria, Comercio y Turismo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to investigate the impact of board cultural diversity (BCDIV) and board structure policy (BSP) on environmental, social, and governance (ESG) disclosure. The sample of this study includes 2988 companies from G7 countries during the 2015–2022 period. Our empirical results reveal that boards with heterogeneous cultural directors and the existence of BSP improve overall ESG scores. Further analysis shows that BSP is a crucial determinant of the governance dimension, one of the pillars of ESG disclosures, whereas BCDIV affects the social dimension more. The findings of this paper offer policy insights, highlighting the importance of BCDIV and BSP for better ESG disclosure. Policymakers should therefore establish regulations that encourage BCDIV and BSP and promote ESG disclosure. Corporate governance reforms that aim to improve the effectiveness and efficiency of boards are critical in order for companies to attain both financial and sustainable development. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Japan has identified corporate governance as an important element in its attempt to reform its economic system. A combination of political will and sustained implementation by civil servants has produced a corporate governance code and associated mechanisms to sustain and refine the changes that have been introduced in order to raise corporate profitability and stimulate the whole national economy. Meanwhile, the direction of reform has shifted from an initially principles-based approach towards an increasingly proscriptive, rules-based one, favouring the interests of investors over those of other stakeholders. Whether this will achieve the desired results is increasingly being questioned within Japan and runs counter to experience from markets where shareholder primacy already prevails. Japan's own prior experience of trying to transplant laws and institutions from these markets suggests a need for caution. [ABSTRACT FROM AUTHOR]

Along with the intensification of global ecological problems, corporate environmental, social, and governance (ESG) issues have attracted extensive attention from the investment community, and solving these issues is crucial for sustainable development. However, little is known about the research on equity structure reform on corporate ESG performance, especially state-owned capital on private firms' ESG performance. To this end, we utilize the panel data of 1,589 privately listed firms in China from 2013 to 2021 to explore the impact of state-owned capital on the ESG performance of private firms. The findings suggest that state-owned capital significantly improves the ESG performance of private firms. In addition, the results of mechanism analysis indicate that stateowned capital stimulates ESG performance through the dual path of improving the mitigation of external financial constraint problems and internal control environment problems. We also find that firms' external environmental shocks enhance the extent to which state capital injection into private firms enhances ESG performance, and these external environmental shocks include the strength of environmental regulation in the region, whether the firms' attribute is that of heavily polluting industries, and the strength of external media attention. In summary, our findings support the conjecture that state capital injection into private firms will be followed by enhanced ESG performance, and the external environment is a factor that influences this process. Our study may provide lessons for the sustainable development of private firms and dig deeper into the internal root causes and external shock factors. [ABSTRACT FROM AUTHOR]

Under established resource constraints, different types of enterprises have significantly different strategic intentions and motivations for pursuing green technology innovation. Therefore, an in-depth analysis of how to enhance the willingness and motivation of enterprises for green technology innovation from the perspective of mixed ownership reform has become an important research topic. This article used Chinese A-share listed companies in Shanghai and Shenzhen from 2013 to 2020 as empirical research samples to examine the impact of mixed ownership reform on corporate green technology innovation and its internal mechanisms. The research results indicated that: ① The reform of mixed ownership significantly promoted corporate green technology innovation, and this conclusion remained valid after considering robustness testing and endogeneity issues. ② The internal mechanism test results indicated that mixed ownership reform promoted corporate green technology innovation mainly through three mechanisms: strengthening internal control levels, improving corporate social responsibility performance, and promoting environmental protection investment. That is, mixed ownership reform had corporate governance effects, stakeholder value effects, and resource allocation effects on corporate green technology innovation. ③ Heterogeneity analysis showed that in areas with low levels of marketization, industries with higher competition intensity, and industries with higher environmental sensitivity, mixed ownership reform had a more significant promoting effect on corporate green technology innovation. ④ Further analysis showed that the mixed ownership reform of non-state-owned enterprises had a more significant promoting effect on corporate green technology innovation, and the economic consequences test results showed that mixed ownership reform could ultimately improve corporate financial performance by promoting green technology innovation. This study provides empirical evidence for further promoting the green value effect of mixed ownership reform in the new development stage and also provides a theoretical reference for systematically promoting the mixed ownership reform of different types of enterprises in promoting corporate green technology innovation. [ABSTRACT FROM AUTHOR]

This study develops a recent database of corporate inversions, and we descriptively explore three different corporate inversion timeframes from 1982 to 2022. We examine how the external governance mechanism of the legal environment has impacted the structure, destination countries, industry preference, and firm-level effects of inverting firms over these timeframes. In addition, we highlight the various internal corporate governance mechanisms (board characteristics) and common accounting variables and ratios during these same periods. We find that inverting firms' boards during our later inversion period of 2018–2022 are smaller and less experienced and accounting ratios exhibit riskier profiles than the earlier inversion time periods. Besides building on the inversion literature, our findings should be of interest to practitioners and regulators who are interested in the current trends of inversions and we highlight new industry clustering in the manufacturing and service sectors and new inversions comprise mostly cannabis companies in the wake of conflicting federal, state and securities laws. [ABSTRACT FROM AUTHOR]

In this paper, we investigate whether reform of EU company law is needed to make corporate governance more sustainable. We also consider some issues to which the EU proposals on company law and sustainability paid scant attention, such as the role of corporate governance codes and other types of soft law, mainly of international origin, in promoting sustainable governance. In addition, we underline that in recent years the EU has adopted several measures which offer better prospects for sustainable governance than the reform of directors' duties the EU is currently debating. We conclude that the failure to take corporate governance codes and the existing regulatory framework into account could seriously impair pending reforms of directors' duties and their link to sustainability. [ABSTRACT FROM AUTHOR]

The politics of climate change in Australia remains highly fraught, this is despite the country experiencing acute impacts of a changing climate including mega-fires, floods, and severe and prolonged drought. Government inaction has led to limited market signals encouraging producers or consumers to move away from carbon intensive energy production to clean energy. In the absence of regulation, Australian shareholder activists are engaging directly with company boards and executives to reform corporate behaviour. This engagement, environmental, social, and governance (ESG) shareholder activism, has proliferated since 2017, much later than in comparable jurisdictions. Activists have targeted the mining, oil and gas, and finance sectors, due to their contribution to the Australian economy and their direct impact on global emissions. This paper explores the reasons for, and the implications of, the growth in ESG shareholder activism in Australia. It argues that the emergence of this activism in Australia was delayed due to complexities in the country's corporations' law. Regulatory attempts at stymying ESG shareholder activism resulted in the emergence of a duopoly of actors, at the cost of broader investor and civil society engagement. It is concluded that the rise of ESG shareholder activism in Australia is linked to growing tension between societal expectations, regulation, and the behaviour of firms. And, that ESG activists have been successful in leveraging this tension. There is evidence that large corporates have responded to activist claims, rendering this form of activism a potentially effective method for addressing some of the most pressing issues facing society. [ABSTRACT FROM AUTHOR]

In this study, we examine the effect of worldwide corporate governance reforms on analyst forecasts using data on firms from 41 countries that have implemented such reforms. Employing a difference‐in‐differences design, we find robust evidence of a significant positive effect of these reforms, which mainly promote the independence of the audit committee and auditors, on analyst forecast accuracy. We also find significant improvements in post‐reform corporate governance structure and the quantity and quality of corporate disclosure, which validates the predicted economic mechanism of the impact of these reforms. Moreover, the reforms are effective in reducing analyst forecast bias and dispersion, suggesting an overall improvement in analyst forecast quality after reform implementation. Furthermore, we find a moderating effect of analyst general experience on the relationship of interest, which is consistent with the conjecture that improved corporate disclosures following reforms could be more beneficial for analysts with less experience. Overall, our findings shed new insights into how country‐level corporate governance reforms worldwide shape firms' information environment. [ABSTRACT FROM AUTHOR]

Using hand‐collected data from China's split share structure reform (SSSR) program, we show that foreign institutional investors' certification mitigates domestic minority shareholders' mistrust of controlling shareholders' reform plans and facilitates the implementation of the SSSR. Domestic minority shareholders cast fewer dissenting votes, complete the SSSR more quickly but with lower compensation, and achieve higher stock return reactions in reforming firms with higher foreign institutional ownership. Foreign institutional investors' prestige is a key factor in aligning domestic minority shareholders toward seeking long‐term payoffs. Our work reveals the positive role of foreign institutional investors' certification in a salient reform of corporate governance. [ABSTRACT FROM AUTHOR]

Strengthening the rule of law in the ecological environment is a long-term mechanism to promote comprehensive green transformation in economic and social development. Environmental courts, as an institutional innovation in the specialization of environmental justice, aim to improve the efficiency of environmental justice and the quality of environmental governance. However, few studies have paid attention to the impact of environmental justice reform on corporate green transformation. In view of this and considering the establishment of environmental courts by China's local intermediate people's courts as a quasi-natural experiment, this paper examined the impact of environmental judicial specialization on corporate green transformation and its mechanisms using a multi-period DID model based on the data of China's A-share listed companies from 2004 to 2020. The results showed that: (1) The establishment of environmental courts had a significant positive impact on corporate green transformation, as evidenced by the promotion of green innovation and an increase in total factor productivity. This conclusion still held after a series of robustness tests. (2) The mechanism analysis showed that the establishment of the environmental court promoted corporate green transformation through strengthening external constraints and improving the internal dynamics of enterprises. Specifically, the external constraint mechanism included weakening the governance failure caused by the collusion between the government and enterprises, as well as enhancing the soft constraints imposed by the public. The internal dynamic mechanism included reducing the financing pressure and improving the innovation efficiency faced by enterprises in the progress of green transformation. (3) Heterogeneity analysis found that the green transformation effect of environmental courts had a more significant positive effect on polluting industries, private firms, and firms with CEOs with environmental backgrounds. This study showed that the positive impact of environmental justice specialization on corporate green transformation was sustainable and would not squeeze out green innovation activities because of the potential transformation costs, exploring an incentive-compatible legal path for corporate green transformation. Therefore, it is necessary to deepen the reform of environmental justice specialization, strengthen cross-basin and cross-regional environmental justice linkages, explore collaboration models among judicial, administrative, and social organizations, and improve the comprehensive governance mechanism that coordinates external constraints with internal dynamics, so as to stimulate the endogenous motivations of the whole society to build, share, and govern the ecological environment while maintaining normalized external pressure. [ABSTRACT FROM AUTHOR]

The act of fraud is an unethical act, it has a negative impact not only on individuals, organization and environment. This study analyses the role of internal control systems and good corporate governance in fraud prevention efforts. There are three main factors called the fraud triangle that motivate someone to commit fraud. Internal audit functions to assist management in detecting and preventing fraud that occurs in an organization in implementing good corporate governance. This is due to the absence of a good corporate governance mechanism. The role of internal auditors in detection and prevention efforts has a fairly strong role. And the role of internal auditors also has a very important role in good corporate governance. Literature studies from previous research and other related sources such as books, articles, and news are the methods used in this research. The method used in this research is literature review. The research conducted shows the results that a planned and structured internal control system can detect fraud. In addition, good corporate governance that is implemented by instilling good values will form a healthy company and avoid fraud. The internal control system has an important role in fraud prevention because with a system that is measurable and in accordance with the needs of the company, it will be easy to detect and prevent fraud. Easily detect and prevent fraud. GCG implementation can prevent fraud by implementing the GCG principles. An evaluation of the internal control system and GCG that is implemented needs to be done to increase the reliability of the system. This research is limited to the concepts of internal control system, good corporate governance, fraud, and articles on this topic. [ABSTRACT FROM AUTHOR]

Purpose: This study examines the association between geopolitical risk (GPR) and corporate tax, which is a major source of revenue for the government and a significant explicit cost for firms. The authors use a comprehensive measure of GPR to study its effects on corporate taxes by using an international sample. Design/methodology/approach: The authors adopt the geopolitical measure constructed by Caldara and Iacoviello (2022) as a proxy for GPR and cash-effective tax rate benchmarked with statutory tax rate to measure corporate tax avoidance. The authors employ panel regression with fixed effects (FEs) to investigate the impact of GPR on corporate tax avoidance. The authors also conduct a battery of robustness tests to ensure the strength of the study's results. Findings: This study's empirical results indicate that sample firms increase their tax avoidance amid increasing GPR. Further analyses show that financial constraints incentivize firms to avoid taxes during rising geopolitical tensions. The authors also provide evidence on the role of firm-level and country-level governance in weakening the association between GPR and tax avoidance. Practical implications: Policymakers and governments may strengthen the enforcement rule to limit aggressive tax practices of corporates during GPR to balance fiscal deficit. In addition, this study sheds light on the debate among administrators and politicians over the efficacy of current tax laws and governance structures in the presence of heightened GPR. Originality/value: The authors extend the literature on GPR by analyzing its effect on corporate tax avoidance. Unlike existing single-country studies, the authors use a cross-country setup to investigate the impact of GPR on tax avoidance, making this study's results more generalizable as the authors control for a host of country, industry, and time factors. Apart from political uncertainty, terrorism, and climatic issues, the authors document GPR as a strong macroeconomic driver of corporate tax avoidance. The authors make a new contribution to the literature on the moderating role of governance and institutional factors on the association between tax avoidance and GPR in an international context. The authors also contribute to the literature on macroeconomic determinants of tax avoidance. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article discusses the question of how to align corporate behavior with the public good. It presents two opposing camps in the debate: the economic liberal camp, which argues that market competition automatically aligns corporate activities with the public good, and the social protectionist camp, which advocates for regulation to address the negative impacts of corporate behavior. The authors propose a corporate social assessment (CSA) that would grade corporations based on their contributions to the public good, with the top-ranked corporations earning rewards and the bottom-ranked corporations contributing to a fund. The article raises concerns about the feasibility and effectiveness of implementing a CSA and suggests that a democratization of corporations may be a more suitable approach to aligning corporate activities with the public good. [Extracted from the article]

Purpose: The aim of this study is to explore how a practice approach can provide an understanding of board diversity practices. Drawing from Schatzki's practice theory, this study considered how board diversity is practiced from the doings and sayings of directors in Mauritius. Design/methodology/approach: In this study, in-depth interviews with directors in listed companies from different industrial sectors were used to collect data. Findings: The authors' findings indicate that a country's board diversity practices are influenced by the country's unique social, economic and cultural environment. Whilst board diversity practices may appear as the practices that are motivated by compliance, a deeper look at the results reveals that the laws governing board diversity are interpreted very subtly in a way that benefits shareholders' self-interest. A low percentage of female directors on boards and some indications of shareholder-driven practices are also found. Whilst the corporate sector acknowledges the advantages of diversity, there are some practices that they are unwilling to abandon, demonstrating the importance of the teleoaffective structures and normativity in determining what really occurs. Members of boards resolving disagreement further demonstrates the teleoaffective structure. Research limitations/implications: This research would be of interest to researchers because of the research's novel approach in studying board diversity which could be used by other researchers to experiment with a practice approach in exploring corporate governance phenomena in unique settings. Practical implications: The findings are of relevance to policymakers and regulators who seek to strengthen corporate governance practices in similar settings. Originality/value: This research contributes to the literature on board diversity by showing that analysing board diversity through a practice approach enables a more comprehensive understanding of practices. The authors' study confirms that practice theory has the potential to re-orient the way board diversity studies are undertaken. [ABSTRACT FROM AUTHOR]

Recent corporate governance reform oriented towards 'shareholder primacy' can be considered part of global financialisation. Thus, cross-shareholding in Japan is examined to demonstrate how global financialisation has been extended to a corner of global corporate activities. Despite some fluctuations, Japanese companies have gradually reduced their cross-shareholdings over the past few decades. This study considers the factors that have encouraged Japanese companies to reduce the volume of traditional cross-shareholdings. Based on a careful investigation, this study argues that applying a perspective of performativity is useful in understanding recent corporate actions meant to facilitate 'better corporate governance'. This perspective holds that the pursuit of better corporate governance, or the establishment of a corporate governance code with disclosure requirements, has been performative to reduce the volume of cross-shareholdings in Japan as part of global financialisation. This study had the following aims. First, based on a review of the literature on financialisation, it argues that the progress of financialisation is indicated by the dissolution of corporate cross-shareholding relationships. Second, a performativity perspective is constructed as the theoretical lens and applied to the Japanese situation to demonstrate how several institutional devices have been crucial in reducing the volume of corporate cross-shareholdings. Third, based on an in-depth case analysis, this study highlights that the relatively recent dissolution of cross-shareholdings has been caused by performative corporate governance reforms requiring detailed corporate disclosure of the related practices. This case study in a non-Western country reveals that global financialisation has been achieved through performative corporate governance reform. [ABSTRACT FROM AUTHOR]

As “interactive computer services” (social media sites) expanded over the past decade, so too did the prevalence of “social bots,” software programs that mimic human behavior online. The capacity social bots have to exponentially amplify often-harmful content has led to calls for greater accountability from social media companies in the way they manage bot presence on their sites. In response, many social media companies and private researchers have developed bot-detection methodologies to better govern social bot activities. At the same time, the prevalence of harmful content on social media sites has led to calls to reform Section 230 of the Communications Decency Act of 1996, the law that largely immunizes social media sites from liability for third-party content on their platforms. Such reform proposals largely entail making Section 230 immunity contingent on social media companies following new requirements when moderating content. Social bots have been left out of these reform conversations, however. This Note suggests that including specific provisions regulating social bots within broader Section 230 reform will help remedy both outdated Section 230 provisions and malicious social bots’ effects. Fusing characteristics from several Section 230 reform proposals with existing bot-governance technology will help establish a legal foundation for social media companies’ new social bot management requirements. Two suggested requirements are: (1) interactive computer services must have some type of monitoring and classification system that helps users determine the “bot-ness” of social media accounts; and (2) interactive computer services must provide an accessible medium for users to view the data that its monitoring and classification system produces. These requirements will help protect the validity of organic online exchanges and reduce the potential power of deceitful influence campaigns. [ABSTRACT FROM AUTHOR]

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Hiring freelancers is considered one of the effective solutions to help businesses cut unnecessary costs but still achieve good operating results; especially in Vietnam and many other countries around the world are fighting COVID-19. This study examines factors that will affect the hiring freelancer intentions. This is one of the first practical studies, conducted with 339 respondents from the perspective of business managers in Vietnam. The study not only predicts trends in the businesses’ freelancer hiring from the impact of COVID-19 but also makes recommendations for businesses to exploit the freelancer’s demands in developing the sharing economy. The results show that businesses are really in high demand of freelancer hiring even though this may change the management structure like corporate governance reform and employee reduction or the enterprises’ operation downsizing even. Some factors such as digital platforms, corporate governance reform, and digital orientation are also interested strongly by business managers; especially, there will be a strong investment in digital platform capability. These factors have a huge impact on the business’s hiring freelancer intention in the development of sharing economy. [ABSTRACT FROM AUTHOR]

The agent is granted decision-making authority over the company's operations to achieve the principal's objectives (Jensen & Meckling, 1976). However, the existence of the COVID-19 pandemic makes companies get higher risks that have an impact on company performance. The board consisting of board size, board independence, women on board, and chief executive officer (CEO) try to maintain the company's performance during COVID-19. The purpose of this study is to analyze the role of corporate governance which consists of board size, board independence, women on board, and CEO duality on company performance during the COVID-19 period. The sample of this study is 538 companies listed on the Indonesia Stock Exchange (IDX). The results of this study indicate that COVID-19 has had an impact on decreasing the company's performance. Then, we also found that board size has a significant positive effect on company performance during the COVID-19 pandemic, while board independence, women on board, and CEO duality do not have a significant effect. Then, we interacted with COVID-19 on the company's performance. The results of our research showed that board size, women on board, and CEO duality have a significant positive effect on company performance. These results have implications that corporate governance has a very important role in boosting the performance of companies that are under pressure due to the COVID-19 pandemic. [ABSTRACT FROM AUTHOR]

This study investigates the response of Icelandic firms to mandatory sustainability reporting laws, focusing on the synergy between legal mandates, corporate governance, and external pressures. Employing a qualitative approach through semi-structured interviews, the findings reveal that while legislation has brought sustainability to the forefront, stakeholder pressure is the key driver behind sustainability reporting. The research highlights the critical role of independent assurance in enhancing the credibility of these disclosures and calls for strengthened regulatory frameworks to ensure transparent, effective reporting that meets international standards (Posadas et al., 2023; Doni et al., 2020). By examining the Icelandic context, the paper provides valuable insights for policymakers and corporate entities on the need for legislative improvements. It anticipates future regulatory tightening to enforce more comprehensive sustainability reporting requirements, contributing to the discourse on mandatory versus voluntary reporting mechanisms. [ABSTRACT FROM AUTHOR]

Purpose: This study investigates the effects of elements of corporate governance along with firm specific variables on the financial leverage of listed Indian firms in the context of agency conflicts and new governance laws. Design/methodology/approach: A series of panel ordinary least squares as well as fixed/random effects regression models of book and market value of financial leverage on variables of corporate governance (board size, board composition, board meeting, board attendance and board gender) along with a set of control variables (asset tangibility, firm size, growth, liquidity and profitability) were estimated by employing 113 listed Indian firms during 2010–2021. Dynamic panel generalized method of moments models were also estimated to check the robustness of empirical results. Further, the full sample of firms was divided into small and large board sized companies using the median approach to investigate differences between small and large board characteristics on financial leverage. Findings: The evidence predominantly suggested that the governance variables have significant impact on leverage ratios of selected firms. Governance variables such as board size, composition, attendance and gender are significantly found to be reducing the financial leverage of firms indicating that in general these attributes in a way, through monitoring managers, put pressure on them to pursue lower financial leverage. Board meeting is found to be positive and significantly related with financial leverage suggesting that the frequency of meetings signals its monitoring ability that may influence lenders' risk assessment lowering borrowing cost. The results on small and large board sized companies indicate that firms with small boards relatively issue more debt compared to firms with large boards suggesting that small boards adopt high debt policy. Practical implications: The main policy implication of the study is that elements of internal corporate governance is a significant governance tool that has the potential to reduce agency conflict between the managers and agents through monitoring and decision making that has tangible effects on critical corporate decisions such as capital structure choices. Originality/value: This paper contributes to the existing literature by bringing new evidence relating to agency conflicts and capital structure decisions in an emerging market like India post adoption of new regulations related to corporate governance specified in Clause 49 of Securities and Exchange Board of India and Companies Act, 2013 as there is significant dearth of such empirical work. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to provide for critical literature on the legal aspects of corporate governance and their application in Mauritius. The drawbacks of having the principles in the form of a non-binding code are discussed, and a case is made to consider their enshrinement in laws such as the Companies Act 2001 to render them legally enforceable for the good health of companies in Mauritius. Design/methodology/approach: A doctrinal legal methodology has been adopted to assess the effectiveness of the principles of the 2016 Code of Corporate Governance of Mauritius. Legislations, legal texts, case law and regulations are used to conduct this assessment. In addition, a black-letter approach is taken while discussing the enshrinement of the principles in the Companies Act 2001 of Mauritius. The doctrinal methodology is further supported by a qualitative analysis of the principles of corporate governance based on existing legal literature, which emphasises their relevance and importance. Findings: The principles of the 2016 Code of Corporate Governance are no doubt a progress over the former 2004 Code in various aspects, aligning the Code with the requirements of the OECD. However, there are still certain loopholes that have been highlighted. In addition, the extent to which these principles are reflected in the Companies Act, which is the primary legislation for companies, has been found to be lacking and inadequate. Originality/value: This paper is, to the best of the author's knowledge, the first legal literature concerning the Mauritian legal framework on corporate governance. This is relevant because the country has recently experienced corporate collapses, which could arguably have been avoided with the application of the principles of corporate governance. As such, the paper will present a case study that can be used as a reference for future research on the enforceability and justiciability of these principles. [ABSTRACT FROM AUTHOR]

This research will analyze the relationship between management behavior and employee performance at PT ABCD. This study aims to understand how management behaviors, such as leadership, motivation, and communication, affect employee performance. The purpose in this study is to analyze management behavior on employee performance at PT ABCD. This research uses a qualitative descriptive method with primary data sources through data collection techniques of interviews, observation and documentation. The results in this study indicate that the research conducted an analysis of management behavior at PT Abcd is appropriate or good. Judging from the performance of human resources section, all of which have been systemized and measured clearly and in detail at PT Abcd. clear and detailed at PT Abcd, management behavior analysis in measuring employee performance has a good role in measuring employee performance. measurement of employee performance has a good role in realizing conducive work situation and the implementation of a good and healthy corporate governance system. good and healthy corporate governance system. And is expected to provide useful insight for management of PT ABCD in improving employee performance through improved management behavior. management behavior. [ABSTRACT FROM AUTHOR]

Transnational companies in Honduras are suing the government for lost profits, following President Xiomara Castro's decision to overturn laws that supported economic development projects. The companies are seeking international arbitration under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), claiming that the government's actions threaten their ability to make a profit. The U.S. Embassy in Honduras has been critical of Castro's policies, and there is concern that the U.S. government is supporting opposition to her administration. These investor-state dispute settlement (ISDS) cases pose a significant challenge to the Castro administration's proposed reforms and the future of Honduras. [Extracted from the article]

In this contribution, we present the recent reform of corporate law in France (2017–2019) and discuss its implication at two levels. So far, "purpose" was mainly a managerial concept, and most efforts to make corporations responsible have not changed the legal constitution of the corporation. By contrast, the French reform first revises corporate law and introduces the purpose in the constitution of the corporation; it thus prompts a reexamination of former approaches of the purpose of the corporation. Second, with its two components, a duty of vigilance and the possibility for any company to become "société à mission," it brings into corporate law some principles to manage the future corporate activities. We argue that it is based on a conceptualization of management that deeply differs from traditional legal representations of management. We show that this shift calls for new research at the intersection of law and management. [ABSTRACT FROM AUTHOR]

Despite the adoption of the mixed approach in the application of corporate governance (CG), largely based on the 'comply or explain' principle, the Kuwaiti corporate governance system still faces major limitations that have become particularly noticeable from the event of voluntary delisting by a slew of companies after the new Kuwaiti Code of Corporate Governance (KCCG) came into force in 2016. One apparent limitation is caused by the widespread culture of non-compliance, an observation supported by the Capital Market Authority Report on Voluntary Delisting from 2010 to 2016. Empirical analysis was conducted on a sample of 29 companies, all of which were delisted during application of the new KCCG of 2015 until April 2020. This voluntary delisting also indicates other salient limitations such as deficiencies in the CG legal framework, the asymmetrical concentration of share ownership in the hands of larger shareholders, and the passivity of shareholders in Kuwaiti-listed shareholding companies. [ABSTRACT FROM AUTHOR]

This study applied a quantile analysis to test the relationship between analyst coverage and overinvestment in Chinese firms and further sought to demonstrate the mediating effect of corporate governance on overinvestment. The empirical results show that analyst coverage causes overinvestment across all quantiles; however, corporate governance can diminish the effect of firm overinvestment in the higher quantile analysis. Additionally, the difference-in-differences method was used to explore the effectiveness of the Chinese government's 2013 corporate governance reform, with the results confirming that that governance reform has been effective in inhibiting a firm's overinvestment. The findings of this study indicate that analysts act as market supervisors in the Chinese capital market, improving corporate governance; however, their coverage does not appear to benefit firms or shareholders. This research highlights the need to review the role of analysts in the market to ensure they can reduce information asymmetry between managers and shareholders without causing overinvestment behavior. [ABSTRACT FROM AUTHOR]