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Within a year of the audit report's date, auditors must assess a company's ability to continue as a going concern before identifying any significant issues (Lauren & Farah Mita, 2023). Uncertainty regarding the going concern assumption can limit a company's long-term operational capabilities (Widiatami et al., 2020). This study, conducted between 2019 and 2022, aimed to identify the factors influencing going concern audit decisions in the basic materials sector. Using purposive sampling, secondary data from 65 firms were analyzed through logistic regression, which is suitable given the binary nature of the dependent variable. The study examined variables such as financial distress (Z), debt default (DAR), equity structure (DER), operating cash flow (OCF), audit quality (AQ), revenue dynamics (RD), value creation (VCI), and blockchain. The results show that only RD had a significant impact on the going concern audit opinion, while the other variables did not. This research stands out by incorporating eight variables, some of which have not been previously explored. The practical contribution of this research is providing insights for auditors in evaluating going concern opinions, while its theoretical contribution expands knowledge on factors affecting audit decisions in the basic materials sector. [ABSTRACT FROM AUTHOR]

The digital society has become a prominent feature of today's era. Its highly interconnected, transparent, and intelligent characteristics are profoundly changing the governance mode and operational logic of enterprises. This article aims to explore the intervention and impact of digital society on the governance of dual equity structure in enterprises, and provide practical guidance for the sustainable development of enterprises. The dual equity structure, as a special corporate governance model, is characterized by granting different voting rights to different types of shares, achieving absolute control over the company by the management. However, this structure has also sparked many controversies, such as the possibility of management using control to harm shareholder interests, leading to management dictatorship, and so on. In the context of the digital society, enterprises face new challenges and opportunities in terms of information transparency, decisionmaking efficiency, and governance mechanisms. [ABSTRACT FROM AUTHOR]

Executive compensation is an important part of the internal governance of commercial banks, and the rationality of the compensation mechanism directly affects the bank’s risk-taking. Based on the panel data of 34 listed small- and medium-sized banks in China from 2012 to 2020, this paper empirically examines the impact and mechanism between executive compensation and the risk-taking level of small- and medium-sized banks. We find that executives’ short-term executive compensation significantly and positively affects the risk-taking level of small- and medium-sized banks, while executives’ long-term executive compensation significantly and negatively affects the risk-taking. Furthermore, considering the specificity of the capital structure of small- and medium-sized banks, we analyse the moderating effect of the capital structure on the above roles and find that there is a partial moderating effect of the capital structure on the relationship between executive short-term compensation and risk-taking in small- and medium-sized banks. This study provides theoretical foundations and countermeasures for improving the executive compensation mechanism and optimising the equity structure to reduce the risk-taking of small- and medium-sized banks and maintain the stability of the financial system. [ABSTRACT FROM AUTHOR]

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More often than not, in typical public-private partnership (PPP) projects, the construction contractor (CC) and operating contractor (OC) serve as shareholders simultaneously. CC and OC shareholders have different payback periods and paths, which may result in opportunistic risk. Therefore, an optimal equity structure is required to lower this risk. Based on cooperative game theory, a game model was developed to determine the optimal equity structure between CC and OC. The findings indicate that when the relative complexity of PPP project construction is higher than that of operation, CC should be given a higher equity ratio. Conversely, when the relative complexity of PPP project operation is higher, OC should be given a higher equity ratio. When the construction and operation of the project are equally complex, allocating equity ratios according to market value can reduce transaction costs, based on transaction cost theory. The findings also suggest that increasing CC's equity ratio can effectively motivate them to better complete the construction work in the long run when the benefits of construction quality are significant. As for OC, increasing bonuses is also an effective incentive method. These findings provide insights into the design of the equity structure of PPP projects to enhance their success. [ABSTRACT FROM AUTHOR]

The mixed ownership reform of China is a kind of further partial privatization for the listed state-owned enterprises (SOEs), and an opportunity for non-state-owned enterprises (non-SOEs) to expand their commerce boundaries. The purpose of this paper is to investigate the effect of heterogeneous blockholders on corporate innovation. Spanning the analysis with listed companies in China from 2007 to 2017, we find that heterogeneous blockholders have a significant positive effect on enterprise innovation. Lowering agency costs and improving corporate innovation efficiency are the two plausible mechanisms. From further research, we find that compared with non-SOEs, the positive effect of heterogeneous blockholders on enterprise innovation is more pronounced for SOEs, and the effect is more positive with the improvement of relative power balance between heterogeneous blockholders. The paper sheds light on the innovation effects of mixed-ownership reform in emerging and transitioning countries. JEL Classification : G32, M13, D23, G34 [ABSTRACT FROM AUTHOR]

The equity structure of Public-Private Partnership (PPP) projects reflects the interests of the public and private sectors, and concerns the economic, social and environmental performance of projects. In the context of the global promotion of sustainable development, optimization of equity structure from a sustainable perspective is very important for improving the sustainable performance of PPP projects. However, in the existing research, there is no quantitative model for selecting equity structure of PPP projects with the goal of improving sustainability. To address the research gap, a multi-objective programming model is developed to seek the balance of economic, social, and environmental performance of PPP projects and its rationality and practicability are verified using a case of a waste-to-energy PPP project. The study proposes a quantitative model of equity structure selection to achieve sustainability goals for PPP projects and the results are helpful for government decisions on promoting the sustainability of PPP projects. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the effect of capital structure proxied by Financial Leverage and Equity Structure, Asset Structure and Profitability to the potential for Financial Distress in the company. The sample used in this study is various industrial sector manufacturing companies listed on the Indonesia Stock Exchange during the period 2014 to 2017. The sample selection method used was the purposive sampling method. Hypothesis testing is done using logistic regression. Based on the results of hypothesis testing it can be concluded that the financial leverage variable is proven to have a significant positive effect on the likelihood of financial distress, the Asset Structure Variable is proven to have a significant negative effect on the likelihood of financial distress, as well as the Return on Asset variable also has a significant negative effect on the likelihood of financial distress . While the Equity Structure variable was not proven significant in influencing the likelihood of financial distress in the company.

Although bundling in public–private partnership (PPP) projects fosters cost savings in the provision of public services, such savings might come at the expense of social benefits due to the low quality of non-contractible services and the incompleteness of the contract. A game model is presented to analyse how the equity allocation between private partners—typically, building firms and operating firms—indirectly influences their incentives, in order to improve the quality of non-contractible services. The findings show that the equity structure can effectively compensate for the incompleteness of the contract. When the equity structure is privately negotiated by private partners whose only concern is private benefits, a loss of social benefits due to the low quality of non-contractible services occurs because the penalties are not enforceable. A socially optimal equity structure, which depends on the combined effects of marginal social and private benefits, plays a role in aligning these social and private benefits, thereby providing private partners with appropriate incentives to improve non-contractible services. These findings provide insights into the regulation of the equity structure for PPP projects providing services in diverse sectors. [ABSTRACT FROM AUTHOR]

This study empirically tests the impacts of equity structure on strategic investment psychology in green affairs in R&D vs. Marketing dimensions and company performance. Based on data from Chinese high-tech industry listed companies, the empirical results show that: (1) the largest shareholder’s shareholding ratio has a positive effect on marketing investment psychology and a negative impact on R&D investment psychology, (2) other large shareholders’ shareholding ratio are positive related to R&D investment psychology; (3) R&D investment psychology has a negative effect and marketing investment psychology has a positive influence on the current performance; (4) equity counterbalance is positive related to R&D investment psychology and has a negative effect on the current performance. This study contributes to the literature of corporate governance on sustainability issue by providing a new psychological perspective. The results also provide an important guidance for the corporate governance practice in green economies.

This study empirically tests the impacts of equity structure on strategic investment psychology in green affairs in R&D vs. Marketing dimensions and company performance. Based on data from Chinese high-tech industry listed companies, the empirical results show that: (1) the largest shareholder's shareholding ratio has a positive effect on marketing investment psychology and a negative impact on R&D investment psychology, (2) other large shareholders' shareholding ratio are positive related to R&D investment psychology; (3) R&D investment psychology has a negative effect and marketing investment psychology has a positive influence on the current performance; (4) equity counterbalance is positive related to R&D investment psychology and has a negative effect on the current performance. This study contributes to the literature of corporate governance on sustainability issue by providing a new psychological perspective. The results also provide an important guidance for the corporate governance practice in green economies. [ABSTRACT FROM AUTHOR]

Corporate equity structure is the core arrangement of corporate governance, and it has an important influence on shareholders' motivation and behavior to participate in corporate governance. Based on the data of CGSS and Chinese listed firms, this study discusses the influence of regional social trust, an important dimension of regional informal institutional environment, on corporate equity structure. The study finds that; (1) Regional out-group trust has a negative effect on the concentration of corporate equity, while regional in-group trust has a positive effect on the concentration of corporate equity, indicating that the social trust pattern of high in-group trust and low out-group trust ss an important cause of the concentrated equity structure of Chinese firms. (2) The regional formal institutional environment substitutes for regional out-group trust; the better the regional formal institutional environment, the weaker the negative influence of outgroup trust on the concentration of corporate equity. (3) The better the performance of the firm, the weaker the impact of regional out-group trust and in-group trust on the concentration of corporate equity. [ABSTRACT FROM AUTHOR]

Public-private partnerships (PPPs) involve many different participants, and the equity allocation between them may influence the performance of PPP projects. While the optimal capital structure and equity capital structure of the project company have been extensively investigated, few studies have examined how to allocate equity shares among different private participants. Considering both public and private benefits, this study focuses on the optimal equity structure between construction contractor (CC) and operating contractor (OC). A game model is used to analyze how quality benefit and marginal contribution of CC and OC’s effort affect the optimal equity structure. The findings reveal that the private consortium expects the party (CC or OC) with higher marginal contribution of effort to own more equity shares, while government expects the party (CC or OC) with lower marginal contribution of effort to own more equity shares. Furthermore, a non-linear relationship between the optimal equity structure and government’s bargaining power is found. The results also manifest that the quality benefit of construction on operation is a nontrivial factor when designing the equity structure. If unconsidered, the CC’s optimal equity ratio will be either undervalued (when a higher construction quality can reduce the operating cost) or overvalued (when a higher construction quality can increase the operating cost). These findings can provide some insights into designing the equity structure for PPP projects in the bidding process. [ABSTRACT FROM AUTHOR]

This paper explores the effect of corporate philanthropy on corporate value based on mathematical model. It analyzes the relationship between corporate philanthropy and corporate value from the perspective of the listed companies and the government. Based on the theoretical analysis between government and companies, this paper finds that the effort of corporate philanthropy is not fixed. There existing a certain critical condition. Equity structure should be considered as an important factor to analyze the corporate philanthropy behavior. Our results also can be used to improve internal control environment, optimize equity structure, strengthen supervision and management, and to develop a scientific charity policy. [ABSTRACT FROM PUBLISHER]

In recent years Taiwan businessmen have constantly come to the mainland of China to invest and open subsidiaries, and the economic and trade relations between the mainland and Taiwan have been closer and a relationship with mutual influence and intergrowth is established between them. Investors from the mainland believe that integrity, supervision and decision, ability of handling emergencies and responsibility of information disclosure are relatively important. In conclusion, the suggested laws and regulations above shall enhance the responsibility of supervision on the independent director system to improve the significance of corporate governance. However, understanding of the people in the mainland of China about laws in Taiwan is far better than that about the legal system in the mainland, and it's hoped that the comparative analysis in this article can make the differences between the mainland and Taiwan clearer. [1, 2, 5]. [ABSTRACT FROM AUTHOR]

This paper analyses the ownership structure of foreign affiliates of Spanish firms. In contrast to previous studies on the participation degree, the paper highlights the importance of the previous decision to invest abroad. To do so, an econometric model with a limited dependent variable helps to show that to ignore the previous decision modifies the conclusions of the empirical analyses that raise an empirical model over a sample of firms with foreign affiliates. Additionally, the paper analyses in detail the importance of the cultural and political-legal differences between home and host countries that justify a different type of participation in equity of foreign affiliates. A clear implication for future research in this field is the need to reconsider the econometric approach to include the investment decision. As the paper has shown, a double-hurdle model provides notably different results than the usual approaches, which in this case are closer to the theoretical literature insights. First published online: 08 Feb 2013

Purpose – The purpose of this paper is to investigate the effect of ISO 14001 certification on US public firms’ equity structure regarding whether the typical heavy investment required for environmental management system is justified in terms of equity risk. Design/methodology/approach – This study employs the event study methodology and examines the pre- and post-movements of firms’ equity structure around the ISO 14001 certification date. This study investigated 5,189 listed firms in the New York Stock Exchange and National Association of Securities Dealers Automated Quotation and the abnormal performance of firms’ equity structure was measured by using four dependent variables (assets, liabilities, debt ratio (liabilities/equity), and market-to-book ratio of equity). Findings – The results showed that the adoption of ISO 14001 increased a firm's total assets, liabilities, and debt ratio in the long run, implying that pursuing the certification entails the increase in a firm's size and equity risk. The long-term movement of the market-to-book ratio of equity showed no abnormal performance, while it fluctuated in the short term. Practical implications – This study suggests that managers should consider the potential risk from a firm's equity structure when they decide to pursue the ISO 14001 certification. Originality/value – This study is the first effort to investigate the long-term effect of ISO 14001 certification on the firm's equity structure using the event study methodology in the USA. [ABSTRACT FROM AUTHOR]

Abstract: This paper firstly uses Stochastic Frontier Analysis method to measure the technical efficiency of China coal listed companies from 1998 to 2008. Then, it constructs panel data model to empirically test the influence of capital structure and equity structure on technical efficiency. The results reveal that both capital structure and equity structure have an inverse U shape relation with technical efficiency, which is consistent with theoretical analysis. [Copyright &y& Elsevier]

Capital is key to achieve the standardized operation of public–private partnership (PPP) projects. The capital structure of PPP projects stresses the structure of equity and debt funds, which are important for securing life-cycle ample funds and achieving the expected outcomes of projects. By incorporating sustainability into PPP projects, the capital structure not only secures current needs of funds, it also focuses on life-cycle stable operations and achieves economic, social, and environmental benefits. This study first set the equity–debt ratio and equity investment ratio of the private sector as the dependent variables and built a selection model of the capital structure of PPP projects from a sustainability perspective using the benefit, cost, and project conditions as core factors based on multi-objective programming and a discounted cash-flow model. Then, the qualitative analysis could be achieved according to the analysis of critical factors that had not been calculated. Afterwards, a selection process which combined the multi-objective programming model with qualitative analysis was proposed to achieve a comprehensive selection of the capital structure of PPP projects from the sustainability perspective. Finally, the process was applied to a real project to verify its rationality and usability. This study not only enriches the theoretical research of PPP projects and provides a new idea on which to build the capital structure selection model, it also proposes a selection process that can provide scientific references for the selection and optimization of the capital structure of PPP projects in practice. [ABSTRACT FROM AUTHOR]

This paper analyses the ownership structure of foreign affiliates of Spanish firms. In contrast to previous studies on the participation degree, the paper highlights the importance of the previous decision to invest abroad. To do so, an econometric model with a limited dependent variable helps to show that to ignore the previous decision modifies the conclusions of the empirical analyses that raise an empirical model over a sample of firms with foreign affiliates. Additionally, the paper analyses in detail the importance of the cultural and political-legal differences between home and host countries that justify a different type of participation in equity of foreign affiliates. A clear implication for future research in this field is the need to reconsider the econometric approach to include the investment decision. As the paper has shown, a double-hurdle model provides notably different results than the usual approaches, which in this case are closer to the theoretical literature insights. [ABSTRACT FROM AUTHOR]