Virtus InterPress http://www.west-watch.com/ en SPIP - www.spip.net Corporate governance in Saudi Arabia: An overview of its evolution and recent trends http://www.west-watch.com/Corporate-governance-in-Saudi-Arabia-An-overview-of-its-evolution-and-recent.html http://www.west-watch.com/Corporate-governance-in-Saudi-Arabia-An-overview-of-its-evolution-and-recent.html 2020-02-28T10:13:36Z text/html en Mamdouh Abdulaziz Saleh Al-Faryan <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In spite of growing interest in Saudi corporate governance systems, there is little literature on the evolution of Saudi corporate governance. This study helps close this gap by investigating and compiling corporate governance development in Saudi Arabia. After providing background information for Saudi Arabia and its corporate governance model, we touch on the Saudi legal system and key external institutions that helped shape its corporate governance. We examine the specific contributions of the accounting and auditing professions, and the roles of the National Anti-Corruption Commission and the Saudi Stock Exchange. We describe key reforms implemented to develop the Saudi economy and evaluate their importance in facilitating change in corporate governance practices. This study contributes as an initial point of reference for future studies on Saudi Arabia, and serves as a one stop resource for both academics and practitioners, while specifically benefitting foreign and domestic investors considering investments in Saudi Arabia.</p> <p><strong>Keywords:</strong> Capital Markets, Corporate Governance, Ownership, Foreign Direct Investment, Saudi Arabia, Saudi Legal System, Stock Market Crash</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G18, G34, G38, K22</p> <p>Received: 20.01.2019<br class='autobr' /> Accepted: 17.02.2020<br class='autobr' /> Published online: 28.02.2020</p> <p><i>How to cite this paper:</i>Al-Faryan, M. A. S. (2020). Corporate governance in Saudi Arabia: An overview of its evolution and recent trends. <i>Risk Governance and Control: Financial Markets & Institutions, 10</i>(1), 23-36. <a href="http://doi.org/10.22495/rgcv10i1p2" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/rgcv10i1p2</a></p></div> Contents http://www.west-watch.com/Contents-6089.html http://www.west-watch.com/Contents-6089.html 2020-02-27T10:57:25Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button.</p></div> EDITORIAL: Corporate governance through a prism of multi-disciplinary research http://www.west-watch.com/EDITORIAL-Corporate-governance-through-a-prism-of-multi-disciplinary-research.html http://www.west-watch.com/EDITORIAL-Corporate-governance-through-a-prism-of-multi-disciplinary-research.html 2020-02-27T10:52:02Z text/html en Cesario Mateus,Irina B. Mateus <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of Corporate Ownership and Control journal was published on February 27, 2020.</p> <p>By clicking the button "Download This Article" below you will gain direct access to the Editorial of the issue.</p> <p><i>How to cite:</i> Mateus, C., & Mateus, I. B. (2020). Editorial: Corporate governance through a prism of multi-disciplinary research. <i>Corporate Ownership and Control, 17</i>(2), 4-6. <a href="http://doi.org/10.22495/cocv17i2_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2_editorial</a></p></div> Monitoring AI progress for corporate governance http://www.west-watch.com/Monitoring-AI-progress-for-corporate-governance.html http://www.west-watch.com/Monitoring-AI-progress-for-corporate-governance.html 2020-02-26T13:02:32Z text/html en Hugh Grove,Mac Clouse,Laura Georg Schaffner ,Tracy Xu <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Artificial Intelligence technologies are predicted to contribute up to $16 trillion to the global economy by 2030. This rapid increase in AI development will have tremendous significance for all the major players for effective corporate governance and national leadership: boards of directors, owners, regulators, legislators, and the national public interest. While AI is believed to increase both the productivity and competitive advantage, it will lead to rapid transformation in the work force and evolve with a high degree of uncertainty. To facilitate the survival of public and other corporations and entities, all these major players should closely monitor the progress and pay attention to major trends in AI. The main research question of this paper is what are the key threats, challenges, and opportunities of AI. Major threats are the replacement of human activity with AI activity, which may not be able to be controlled by humans. Such control is a major challenge concerning AI as is the control and opportunity of human-AI partnerships. Digital dashboards and quantum computers are also part of all these challenges and opportunities. Accordingly, the paper studies the following AI topics currently being explored in the AI literature: key questions and issues for AI, monitoring trends in AI development, digital board audits for AI action plans, AI robotic process automation, and quantum computers with AI implications, AI progress assessment and conclusions.</p> <p><strong>Keywords:</strong> Artificial Intelligence, Monitoring, Corporate Governance</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – H.G. and L.S.; Methodology – H.G.; Resources – M.C.; Writing – Original Draft – H.G.; Writing – Review & Editing – L.S., M.C., and T.X.; Visualization – T.X.; Funding Acquisition – M.C.</p> <p><i>JEL Classification:</i> G30</p> <p>Received: 07.01.2020<br class='autobr' /> Accepted: 24.02.2020<br class='autobr' /> Published online: 26.02.2020</p> <p><i>How to cite this paper:</i> Grove, H., Clouse, M., Schaffner, L., & Xu, T. (2020). Monitoring AI progress for corporate governance. <i>Journal of Governance & Regulation, 9</i>(1), 8-17. <a href="https://doi.org/10.22495/jgrv9i1art1" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/jgrv9i1art1</a></p></div> Corporate board and CSR reporting: Before and after analysis of JCGC 2009 http://www.west-watch.com/Corporate-board-and-CSR-reporting-Before-and-after-analysis-of-JCGC-2009.html http://www.west-watch.com/Corporate-board-and-CSR-reporting-Before-and-after-analysis-of-JCGC-2009.html 2020-02-26T11:45:51Z text/html en Amer Al Fadli <div class='rss_texte'><p><strong>Abstract</strong></p> <p>This study investigates the influence of board size, the presence of an audit committee on the board, and CEO duality on Corporate Social Responsibility (CSR) reporting in Jordan. The longitudinal data (panel data) analysis estimation techniques were used for the period of 2006 to 2015. Content analysis was employed to assess the level of CSR reporting of a different area of disclosure in the annual reports. Multiple regression analysis was used to investigate the association between governance factors and the level of CSR reporting (Habbash, 2016; Ahmad, Rashid, & Gow, 2017b). The findings reveal that board size and the presence of an audit committee on the board are significantly positive on the level of CSR reporting. These factors play a significant role in enhancing compliance with corporate governance best practices. The role of CEO duality on the board has an insignificant relationship with the level of CSR reporting. These results suggest significant implications for companies and regulators to continue to improve corporate governance best practices in the companies and develop greater awareness of companies CSR reporting. The study contributes to the governance and CSR reporting literature in the Middle East and developing countries using the legitimacy theory approach.</p> <p><strong>Keywords:</strong> Corporate Governance, Corporate Social Responsibility Reporting, Legitimacy Theory, Middle East, Jordan</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G30, G34, G48</p> <p>Received: 11.01.2020<br class='autobr' /> Accepted: 18.02.2020<br class='autobr' /> Published online: 26.02.2020</p> <p><i>How to cite this paper:</i> Al Fadli, A. (2020). Corporate board and CSR reporting: Before and after analysis of JCGC 2009. <i>Corporate Governance and Sustainability Review, 4</i>(1), 21-32. <a href="https://doi.org/10.22495/cgsrv4i1p2" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/cgsrv4i1p2</a></p></div> The impact of board diversity on firm performance – The case of Germany http://www.west-watch.com/The-impact-of-board-diversity-on-firm-performance-The-case-of-Germany.html http://www.west-watch.com/The-impact-of-board-diversity-on-firm-performance-The-case-of-Germany.html 2020-02-25T07:59:10Z text/html en Udo Braendle,Markus Stiglbauer,Khaldoun Ababneh,Evangelos Dedousis <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Numerous mergers and acquisitions, and the rise of MNCs with global customer bases have exposed the German board of directors to a variety of cultures. Despite the obvious relevance for corporate governance, the effect that cultural diversity of boards exerts on firm performance, Germany has been a blank spot in this literature. Using a sample of 101 German publicly listed companies, this empirical study answers if the level of cultural variety and cultural distance in boards of directors have an influence on firm performance. The results of this study indicate that cultural variety in boards of directors has a linear, negative influence on operational firm performance (as measured by ROI and ROE). This reinforces the fundamental assertion that executives' cultural values shape their mindsets and orientations, and thus influence their decision-making. The results of this study, therefore, indicate that cultural diversity is an important diversity dimension that further on should be given careful consideration in research. Based on the findings, we argue against the blindfold implementation of (political) regulations in the area of board diversity.</p> <p><strong>Keywords:</strong> Corporate Governance, Board of Directors, Firm Performance, Cultural Diversity, Cultural Variety, Cultural Distance, Internationalization</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – U.B., M.S., and K.A.; Methodology – U.B. and M.S.; Investigation – U.B. and M.S.; Data Curation – U.B., M.S. and K.A.; Writing – U.B., M.S., K.A., and E.D.</p> <p><i>JEL Classification:</i> G28, G34</p> <p>Received: 08.01.2020<br class='autobr' /> Accepted: 24.02.2020<br class='autobr' /> Published online: 25.02.2020</p> <p><i>How to cite this paper:</i> Braendle, U., Stiglbauer, M., Ababneh, K., & Dedousis, E. (2020). The impact of board diversity on firm performance – The case of Germany. <i>Corporate Ownership & Control, 17</i>(2), 183-193. <a href="http://doi.org/10.22495/cocv17i2art15" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art15</a></p></div> Shareholder composition, corporate governance and their monitoring effects on firm performance http://www.west-watch.com/Shareholder-composition-corporate-governance-and-their-monitoring-effects-on.html http://www.west-watch.com/Shareholder-composition-corporate-governance-and-their-monitoring-effects-on.html 2020-02-17T13:31:19Z text/html en Guido Max Mantovani,Gregory Moscato <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The main goal of the paper is to understand if the shareholder composition must be considered as a part of the corporate governance framework or as a monitoring factor, only. A related goal of the paper is to investigate if the shareholder composition is part of the loop connecting corporate governance and corporate performance. We analyze a sample made of 10,520 firms over the years 2006-2015, in 8 European countries having very differentiated governance frameworks, shareholder composition and corporate performance. The paper gives new insights to the current debate on the relations between governance and performance as well as the one on the components of the corporate governance framework. According to our evidence, governance contributes to corporate value by reducing agency in funding, rather than having an impact over returns. Moreover, we give evidence that corporate governance should be considered as a tool contributing to the efficacy of monitoring capabilities of the shareholder composition of equity, but no clear evidence is about the composition of equity to be considered as part of the corporate governance framework.</p> <p><strong>Keywords:</strong> Corporate Governance, Capital Structure, Agency Monitoring</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – G.M.M. and G.M.; Methodology – G.M.M., and G.M.; Validation – G.M.M. and G.M.; Formal Analysis – G.M.M. and G.M.; Investigation – G.M.M. and G.M.; Resources – G.M.M. and G.M.; Data Curation – G.M.M. and G.M.; Writing – Original Draft – G.M.M. and G.M.; Writing – Review & Editing – G.M.M. and G.M.; Visualization – G.M.M. and G.M.; Supervision – G.M.M. and G.M.; Project Administration – G.M.M. and G.M.</p> <p><strong>Acknowledgements:</strong> This paper benefits of datamining and raw analysis made by Ms. Sarah di Gloria, student and junior fellow researcher at Ca' Foscari University, Campus Treviso.</p> <p><i>JEL Classification:</i> G30, G32, M10</p> <p>Received: 23.12.2019<br class='autobr' /> Accepted: 13.02.2020<br class='autobr' /> Published online: 17.02.2020</p> <p><i>How to cite this paper:</i> Mantovani, G. M., & Moscato, G. (2020). Shareholder composition, corporate governance and their monitoring effects on firm performance. <i>Corporate Ownership & Control, 17</i>(2), 165-182. <a href="http://doi.org/10.22495/cocv17i2art14" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art14</a></p></div> Measuring cultural dimensions for cross-cultural management: Corporate governance outlook http://www.west-watch.com/Measuring-cultural-dimensions-for-cross-cultural-management-Corporate.html http://www.west-watch.com/Measuring-cultural-dimensions-for-cross-cultural-management-Corporate.html 2020-02-13T07:44:52Z text/html en Rabeb Riahi,Foued Hamouda,Jamel Eddine Henchiri <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The unobservable nature of the national culture is one of the main limits of research studying the impact of values systems' in management sciences. This is why we aim in this study to identify a measure to three cultural dimensions namely, individualism (IND), masculinity (MASC) and long-term orientation (LTO). Our methodology is based on structural equation modeling (SEM) under LISREL approach, where latent variables are economic and demographic characteristics. Findings for the cross-national study over a period of 7 years including Tunisia, France, and Canada show that ecological indicators are able to determine studied cultural dimensions. However, due to the dynamic character of culture, some studied indicators are no longer the same as identified in prior studies.</p> <p><strong>Keywords:</strong> Individualism, Masculinity, Long-Term Orientation, Cultural Changes, SEM Method, Cross-Cultural Management</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – R.R.; Methodology – R.R.; Resources – F.H. and T.X.; Investigation – R.R.; Writing – Original Draft – R.R. and J.E.H; Writing – Review & Editing – R.R.; Visualization – R.R.; Funding Acquisition – R.R.</p> <p><i>JEL Classification:</i> E71, M14, O13, P46, Q51</p> <p>Received: 30.12.2019<br class='autobr' /> Accepted: 12.02.2020<br class='autobr' /> Published online: 13.02.2020</p> <p><i>How to cite this paper:</i> Riahi, R., Hamouda, F., & Henchiri, J. E. (2020). Measuring cultural dimensions for cross-cultural management: Corporate governance outlook. <i>Corporate Ownership & Control, 17</i>(2), 157-164. <a href="http://doi.org/10.22495/cocv17i2art13" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art13</a></p></div> Determinants of audit fees in developing countries: Evidence from Egypt http://www.west-watch.com/Determinants-of-audit-fees-in-developing-countries-Evidence-from-Egypt.html http://www.west-watch.com/Determinants-of-audit-fees-in-developing-countries-Evidence-from-Egypt.html 2020-02-10T12:47:18Z text/html en Walid ElGammal,Marwa Gharzeddine <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The aim of this study is to examine the perceived level of importance with respect to each pre-suggested determinant of audit fees in Egypt. In particular, the perceptions about auditor related attributes and client-related attributes according to external auditors and client's representatives (auditee).<br class='autobr' /> This study is based on the results of a survey conducted in Egypt. A questionnaire is designed to request the opinions of external auditors and client representatives about 28 audit fees determinant. The questionnaire was sent to 150 participants out of whom 63 responses are found usable. Data is analyzed using SPSS program and Mann-Whitney U test is performed.<br class='autobr' /> The results reveal that the perception of all attributes is greater than 3, implying that all pre-suggested determinants are perceived as relatively important, important or highly important. The most three important attributes are: the good reputation of the audit firm, the fact of being one of the Big Four and the level of complexity of the auditee. Furthermore, the results show that there is no significant difference in perceptions of both group of participants regarding the importance of each audit fees determinant. It is also evident that auditor-related attributes are perceived to be of higher importance than client-related attributes.<br class='autobr' /> This is the first study conducted in Egypt examining the determinants of audit fees, knowing that audit fees figures are neither available nor publically disclosed. Moreover, the study takes into account the Egyptian revolution which started in 2011 by adding two new determinants to the questionnaire; economic and political stability. This is in order to cope with the country's situation and to check the extent of such environmental attributes' effect on audit pricing.</p> <p><strong>Keywords:</strong> Audit Fees, External Auditor, Big Four, Determinants, Developing Countries, Egypt</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – W.E.; Methodology – M.G.; Validation – W.E. and M.G.; Formal Analysis – M.G.; Writing – Original Draft – M.G.; Writing – Review & Editing – W.E.; Visualization – W.E and M.G.; Supervision – W.E.; Project Administration – W.E.</p> <p><i>JEL Classification:</i> M42</p> <p>Received: 17.12.2019<br class='autobr' /> Accepted: 07.02.2020<br class='autobr' /> Published online: 10.02.2020</p> <p><i>How to cite this paper:</i> ElGammal, W., & Gharzeddine, M. (2020). Determinants of audit fees in developing countries: Evidence from Egypt. <i>Corporate Ownership & Control, 17</i>(2), 142-156. <a href="http://doi.org/10.22495/cocv17i2art12" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art12</a></p></div> Analyzing the business roundtable statement on the purpose of a corporation and linking it to corporate governance http://www.west-watch.com/Analyzing-the-business-roundtable-statement-on-the-purpose-of-a-corporation-and.html http://www.west-watch.com/Analyzing-the-business-roundtable-statement-on-the-purpose-of-a-corporation-and.html 2020-02-05T12:03:55Z text/html en Hugh Grove,John M. Holcomb,Mac Clouse,Tracy Xu <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The 2019 Business Roundtable Statement on the Purpose of a Corporation, endorsed by 183 CEOs of major U.S. companies, is not such a dramatic break from the past, but rather the next step in a steady retreat from a purely financial approach and an evolution to embrace a stakeholder approach, which is now gaining more and more lip service. The major purpose of this paper is to analyze this Business Roundtable Statement and relate it to three major corporate governance issues: CEO pay, non-financial performance metrics, and sustainability reporting. Then the paper introduces the Commonsense Corporate Governance Principles, which were initially published in 2016 and updated with Version 2.0 in 2018, sponsored by 21 CEOs of major U.S. companies. These Principles provide significant guidance and recommendations for corporations, boards of directors, shareholders, and other stakeholders to follow if they want to create an environment-friendly to meet the fundamental commitments in the Business Roundtable Statement. Accordingly, the major sections of this paper are introduction, CEO pay issues, non-financial performance metrics, sustainability reporting, corporate governance impacts, key points in both versions of the Commonsense Principles, key changes in the Commonsense Principles 2.0, discussion, and conclusions.</p> <p><strong>Keywords:</strong> Business Roundtable, Purpose of a Corporation, Commonsense Corporate Governance Principles, Corporate Governance</p> <p><strong>Authors' individual contributions:</strong> Conceptualization – H.G. and J.H.; Methodology – H.G.; Resources – M.C.; Writing – Original Draft – H.G.; Writing – Review & Editing – J.H., M.C., and T.X.; Visualization – T.X.; Funding Acquisition – M.C.</p> <p><i>JEL Classification:</i> G3, K16</p> <p>Received: 29.11.2019<br class='autobr' /> Accepted: 27.01.2020<br class='autobr' /> Published online: 05.02.2020</p> <p><i>How to cite this paper:</i> Grove, H., Holcomb, J., Clouse, M., & Xu, T. (2020). Analyzing the business roundtable statement on the purpose of a corporation and linking it to corporate governance. <i>Corporate Board: Role, Duties and Composition, 16</i>(1), 19-27. <a href="https://doi.org/10.22495/cbv16i1art2" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/cbv16i1art2</a></p></div> A theoretical approach to auditor independence and audit quality http://www.west-watch.com/A-theoretical-approach-to-auditor-independence-and-audit-quality.html http://www.west-watch.com/A-theoretical-approach-to-auditor-independence-and-audit-quality.html 2020-02-04T13:53:23Z text/html en Rahman Yakubu,Tracey Williams <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Auditor independence and the quality of audit report is of growing concern to regulators, institutional investors and stakeholders as a series of accounting scandals have undermined the professionalism of auditors. The findings from this study produced an insight of how auditor's independence improve audit quality and that abnormal audit fees is as a result of additional effort for auditor to carry out rigorous audit engagement as a result of wider audit scope; that mandatory audit firm rotation will enhance auditor independence, and that audit committee with nonexecutive independence will promote audit quality. The study also finds that in terms of auditor size, smaller audit firms that belong to professional bodies will provide higher audit quality. The main conclusion of this research is that where an auditor is fully independent in carrying out audit engagement with strong resistance to fees pressure will enhance audit quality. This research provides insight into the impact of IFRS adoption on audit fees.</p> <p><strong>Keywords:</strong> Audit Fees, Auditor Tenure, Board Composition, Auditor Size, Non-Audit Services, Audit Quality, IFRS</p> <p><strong>Authors' individual contribution:</strong> Conceptualisation – R.Y.; Writing – Original Draft – R.Y. and T.W.; Writing & Editing – R.Y.; Supervision – T.W.</p> <p><i>JEL Classification:</i> M41, M42, L84, K2</p> <p>Received: 04.07.2019<br class='autobr' /> Accepted: 22.01.2020<br class='autobr' /> Published online: 04.02.2020</p> <p><i>How to cite this paper:</i> Yakubu, R., & Williams, T. (2020). A theoretical approach to auditor independence and audit quality. <i>Corporate Ownership & Control, 17</i>(2), 124-141. <a href="http://doi.org/10.22495/cocv17i2art11" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art11</a></p></div> Corporate governance and performance: An analysis of Italian listed companies http://www.west-watch.com/Corporate-governance-and-performance-An-analysis-of-Italian-listed-companies.html http://www.west-watch.com/Corporate-governance-and-performance-An-analysis-of-Italian-listed-companies.html 2020-02-04T11:24:23Z text/html en Franco Ernesto Rubino,Giovanni Bronzetti,Graziella Sicoli,Maria Baldini,Maurizio Rija <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In recent years, both corporate governance and performance management have been subjected to considerable changes. In this dynamic context, it is interesting to study the evolution of the relationship between performance and governance. Does governance still affect performance? The purpose of this paper is to verify the presence and intensity (extent) of the relationship between corporate governance and performance in Italian listed companies by using both accounting and non-accounting performance measures. The purpose of this paper is to investigate the effects of prior firm performance on board composition and governance structure of some companies listed on the Italian stock exchange, analysing how a governance approach influences the performance of sample companies. For the research the methodology used is quantitative and we used regression analysis on a sample of 23 Italian listed companies: mechanical companies and public utilities to find that the company's performance was positively related to the size of the board. The empirical analysis conducted allowed us to verify the hypothesis according to which the increase in Corporate Governance Best Practices influences company performance. However, the results we have received do not allow us to arrive at completely unequivocal interpretations. The results showed we have received do not allow us to arrive at completely unequivocal interpretations; the main limit is the sample size used in this study was relatively small.</p> <p><strong>Keywords:</strong> Corporate Governance, Firm Performance, Board of Directors, Public Utilities</p> <p><strong>Authors' individual contributions:</strong> Conceptualization – F.E.R., G.B., G.S., M.B., and M.R.; Methodology – F.E.R., G.B., G.S., M.B., and M.R.; Writing – F.E.R., G.B., G.S., M.B., and M.R.</p> <p><i>JEL Classification:</i> M10, M20, M40, M42</p> <p>Received: 04.12.2019<br class='autobr' /> Accepted: 30.01.2020<br class='autobr' /> Published online: 04.02.2020</p> <p><i>How to cite this paper:</i> Rubino, F. E., Bronzetti, G., Sicoli, G., Baldini, M., & Rija, M. (2020). Corporate governance and performance: An analysis of Italian listed companies. <i>Corporate Board: Role, Duties and Composition, 16</i>(1), 8-18. <a href="https://doi.org/10.22495/cbv16i1art1" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/cbv16i1art1</a></p></div> Equity incentives, earnings management and corporate governance: Empirical evidence using UK panel data http://www.west-watch.com/Equity-incentives-earnings-management-and-corporate-governance-Empirical.html http://www.west-watch.com/Equity-incentives-earnings-management-and-corporate-governance-Empirical.html 2020-01-31T13:23:08Z text/html en Mohamed A. Shabeeb Ali,Hazem Ramadan Ismael,Ahmed H. Ahmed <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Using a UK panel data set drawn from 1675 Chief Executive Officer (CEO) year observations and 1540 Chief Financial Officer (CFO) year observations, we examine the relationship between CEO and CFO equity incentives and earnings management. In addition, we examine the moderation effect of corporate governance mechanisms on the relationship between executives' equity incentives and earnings management. We use multivariate regression models to test our hypotheses. We find that CEO equity incentives are related to higher absolute and income increasing earnings management. These results support the managerial power theory argument that CEOs exploit equity-linked compensation to obtain more personal benefits without causing public anger. Contrary to CEO equity incentives, we could not find any significant relationship between CFO equity incentives and any of the earnings management proxies. In addition, we find that corporate governance quality (measured by individual mechanisms and overall index) has no effect on the relationship between executives' equity incentives and earnings management. This result indicates that whereas some corporate governance mechanisms can reduce earnings management in general, they do not affect wealth driven incentives to manipulate accruals. In total, results question the effectiveness of the corporate governance system in mitigating opportunistic behavior motivated by executives' compensation structures.</p> <p><strong>Keywords:</strong> Discretionary Accruals, Executive Compensation, Corporate Governance, Agency Theory, Managerial Power Theory</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.A.S.A. and A.H.A.; Methodology – M.A.S.A. and H.R.I.; Software – M.A.S.A. and H.R.I.; Validation – H.R.I. and A.H.A.; Formal Analysis – M.A.S.A.; Investigation – A.H.A.; Resources – M.A.S.A.; Data Curation – M.A.S.A., H.R.I., and A.H.A.; Writing - Original Draft – M.A.S.A.; Writing - Review and Editing – H.R.I. and A.H.A.; Visualization – M.A.S.A.; Supervision – A.H.A.; Project Administration – M.A.S.A. and H.R.I.; Funding Acquisition – M.A.S.A.</p> <p><i>JEL Classification:</i> G340, M210, M410, M420, M480</p> <p>Received: 24.09.2019<br class='autobr' /> Accepted: 30.01.2020<br class='autobr' /> Published online: 31.01.2020</p> <p><i>How to cite this paper:</i> Shabeeb Ali, M. A., & Ismael, H. R., & Ahmed, A. H. (2020). Equity incentives, earnings management and corporate governance: Empirical evidence using UK panel data. <i>Corporate Ownership & Control, 17</i>(2), 104-123. <a href="http://doi.org/10.22495/cocv17i2art10" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art10</a></p></div> The effect of financial performance and corporate governance to stock price in non-bank financial industry http://www.west-watch.com/The-effect-of-financial-performance-and-corporate-governance-to-stock-price-in.html http://www.west-watch.com/The-effect-of-financial-performance-and-corporate-governance-to-stock-price-in.html 2020-01-30T08:17:18Z text/html en Herman Karamoy,Joy Elly Tulung <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Indonesia's financial sector is highly dominated by the banking industry than the non-bank. It controlled almost 74% of Indonesia's financial assets in 2014. After post-crisis restructuration, the banking sector has become stronger, with a higher capital adequacy ratio and profitability. While, the non-bank financial industry is expected to solve the problems in the Indonesian economy, as well as becoming one of the long-term economic instruments. The purpose of this study is to test and analyse the effect of financial performance and the implementation of corporate governance on the non-bank financial industry stock prices on the Indonesia Stock Exchange in 2012-1016. The research population includes the non-bank financial industry listed in IDX, as many as 37 companies. This study found the probability, managerial ownership, institutional ownership and the composition of the independent commissioner partially and simultaneously does not significantly influence the stock price of the non-bank financial industry.</p> <p><strong>Keywords:</strong> Non-Bank Financial Industry, Stock Price, Managerial Ownership, Institutional Ownership</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – H.K. and J.T.; Methodology – H.K. and J.T.; Validation – H.K. and J.T.; Formal Analysis – H.K. and J.T.; Writing – Original Draft – H.K. and J.T.; Writing – Review and Editing – H.K. and J.T.</p> <p><i>JEL Classification:</i> G23, G11, G32</p> <p>Received: 21.10.2019<br class='autobr' /> Accepted: 24.01.2020<br class='autobr' /> Published online: 30.01.2020</p> <p><i>How to cite this paper:</i> Karamoy, H., & Tulung, J. E. (2020). The effect of financial performance and corporate governance to stock price in non-bank financial industry. <i>Corporate Ownership & Control, 17</i>(2), 97-103. <a href="http://doi.org/10.22495/cocv17i2art9" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art9</a></p></div> Founder succession and firm performance in the luxury industry http://www.west-watch.com/Founder-succession-and-firm-performance-in-the-luxury-industry.html http://www.west-watch.com/Founder-succession-and-firm-performance-in-the-luxury-industry.html 2020-01-29T10:09:16Z text/html en Domenico Campa,Mariateresa Torchia,Chiara Rachele Caterina Marcheselli,Patrice Sargenti <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Top management succession may be a real threat to the long-term profitability of companies, in particular when it involves the founder whose name also identifies their brand and their products. This is extremely important in the luxury sector where loyalty, trust and the image of brands in consumers' minds may be affected by the succession process, especially when the founder has no direct heir to ensure continuity of the family firm. Through an analysis of three case studies, as well as a questionnaire distributed to active consumers of luxury products, this study aims to understand whether and how a brand can successfully survive after the death of its founder and whether the purchasing behaviour of customers changes after a founder succession takes place. Our findings reveal that the lack of a clear and structured succession plan may significantly threaten the survival of companies. In addition, our evidence indicates that the purchasing intention of luxury consumers is linked more to the bond and the values that they share with the founder than to the quality of the goods purchased. Accordingly, our results provide insights and suggestions concerning the optimal approach to follow when companies with heirless founders are planning a succession and highlights that the success and the survival of such entities is linked to consumers' perceptions of the extent to which there are continuity and alignment between the values of the founder and those of their successors.</p> <p><strong>Keywords:</strong> Founder Succession Plan, Brand Image, Brand Trust, Brand Loyalty, Brand Performance, Luxury Firms</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.T. and C.R.C.M.; Methodology – C.R.C.M. and D.C.; Formal Analysis – C.R.C.M. and D.C.; Investigation – C.R.C.M.; Data Curation – P.S.; Writing – Original Draft – D.C and M.T.; Writing – Review & Editing – D.C. and M.T.; Supervision – D.C. and M.T.; Project Administration – D.C. and M.T.</p> <p><i>JEL Classification:</i> G32, G34, L67, L81</p> <p>Received: 04.12.2019<br class='autobr' /> Accepted: 28.01.2020<br class='autobr' /> Published online: 29.01.2020</p> <p><i>How to cite this paper:</i> Campa, D., Torchia, M., Marceselli, C. R. C., & Sargenti, P. (2020). Founder succession and firm performance in the luxury industry. <i>Corporate Ownership & Control, 17</i>(2), 88-96. <a href="http://doi.org/10.22495/cocv17i2art8" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art8</a></p></div> Contents http://www.west-watch.com/Contents-6064.html http://www.west-watch.com/Contents-6064.html 2020-01-24T10:32:36Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button "Download this article".</p></div> Editorial: Expanding the borders of corporate board research http://www.west-watch.com/Editorial-Expanding-the-borders-of-corporate-board-research.html http://www.west-watch.com/Editorial-Expanding-the-borders-of-corporate-board-research.html 2020-01-24T10:32:25Z text/html en Sabri Boubaker <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of the journal "Corporate Board: Role, Duties and Composition" was published on January 24, 2020.</p> <p>By clicking the button "Download This Article" below you will gain direct access to the Editorial of the issue.</p> <p><i>How to cite:</i> Boubaker, S. (2019). Editorial: Expanding the borders of corporate board research. <i>Corporate Board: Role, Duties and Composition, 15</i>(3), 4-6. <a href="http://doi.org/10.22495/cbv15i3_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cbv15i3_editorial</a></p></div> Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity http://www.west-watch.com/Impact-of-ownership-concentration-institutional-ownership-and-earnings.html http://www.west-watch.com/Impact-of-ownership-concentration-institutional-ownership-and-earnings.html 2020-01-23T08:55:16Z text/html en Ahmed Imran Hunjra,Uzma Perveen ,Leon Li ,Muhammad Irfan Chani,Rashid Mehmood <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Ownership structure plays a vital role in stock market liquidity. We analyze the impact of ownership concentration, institutional ownership and earnings management on stock market liquidity. We select 114 firms from manufacturing sector of Pakistan, India, Australia and Singapore. We extract data from DataStream from 2010 to 2018 of selected countries. We apply Generalized Method of Moments (GMM) to analyze the data. We find that ownership concentration, institutional ownership and earnings management significantly affect the stock market liquidity.</p> <p><strong>Keywords:</strong> Ownership Concentration, Institutional Ownership, Earnings Management, Stock Market Liquidity, Emerging Economies</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – A.I.H. and R.M.; Writing – U.P., M.I.C., and R.M.; Methodology – A.I.H., M.I.C., and L.L.; Supervision – A.I.H.; Formal Analysis – L.L., A.I.H., and R.M.</p> <p><i>JEL Classification:</i> G14, G32, G34, M48</p> <p>Received: 08.12.2019<br class='autobr' /> Accepted: 22.01.2020<br class='autobr' /> Published online: 23.01.2020</p> <p><i>How to cite this paper:</i> Hunjra, A. I., Perveen, U., Li, L., Chani, M. I., & Mehmood, R. (2020). Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity. <i>Corporate Ownership & Control, 17</i>(2), 77-87. <a href="http://doi.org/10.22495/cocv17i2art7" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art7</a></p></div> Integrated sustainable performance management systems: A case study on Italian benefit corporations http://www.west-watch.com/Integrated-sustainable-performance-management-systems-A-case-study-on-Italian.html http://www.west-watch.com/Integrated-sustainable-performance-management-systems-A-case-study-on-Italian.html 2020-01-22T13:45:15Z text/html en Giorgia Nigri,Mara Del Baldo,Armando Agulini <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Today, to integrate sustainable development goals into business, an overall integrated sustainable performance management system — to implement and measure these global goals — is needed. In a short timeframe, the benefit impact assessment (BIA) — elaborated by B Lab, utilized by benefit corporations (a new and emerging hybrid type of prosocial business) and adopted by the United Nations — became the most comprehensive indicator to evaluate company practices against SDGs. Italy was the first sovereign country to insert the benefit corporation legislation after the US and analyze the effectiveness of the BIA. This prompted us to address our attention to the integration of benefit-driven indicators, adopted by Italian B Corps into their performance management systems, and to analyze if these indicators are used by managers to support internal decision-making. To achieve this goal, cross-sector semi-structured interviews were conducted in seven Italian certified benefit corporations. Relevant to both researchers and practitioners, our review provides a useful snapshot of how the BIA is developing as an assessment and how value-based organizations are moving toward an integrated sustainable performance management system.</p> <p><strong>Keywords:</strong> Benefit Corporations, B Corps, Sustainable Performance Management Systems, Small and Medium Enterprise</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – G.N. and M.D.B.; Methodology – G.N. and M.D.B.; Software – G.N.; Validation – M.D.B.; Formal Analysis – G.N. and M.D.B.; Investigation – G.N.; Resources – A.A.; Data Curation – G.N. and A.A.; Writing – Original Draft Preparation – G.N. and M.D.B.; Writing – Review & Editing – G.N.; Visualization – M.D.B.; Supervision – M.D.B.; Project Administration – M.D.B.; Funding Acquisition – M.D.B.</p> <p><strong>Acknowledgements:</strong> We would like to thank Frances Fabian for her feedback and help in clarifying the structure of the case studies and Janine Hiller for her thoughts. We are also very grateful for the support given by fellow researchers in the field and chairs of our sessions Kevin Levillain, Blanche Segrestien and Jesse Dillard.</p> <p><i>JEL Classification:</i> M14, G34, M40</p> <p>Received: 27.11.2019<br class='autobr' /> Accepted: 20.01.2020<br class='autobr' /> Published online: 22.01.2020</p> <p><i>How to cite this paper:</i> Nigri, G., Del Baldo, M., & Agulini, A. (2020). Integrated sustainable performance management systems: A case study on Italian benefit corporations. <i>Corporate Ownership & Control, 17</i>(2), 65-76. <a href="http://doi.org/10.22495/cocv17i2art6" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art6</a></p></div> Best city to invest in: European Cities Quality Index http://www.west-watch.com/Best-city-to-invest-in-European-Cities-Quality-Index.html http://www.west-watch.com/Best-city-to-invest-in-European-Cities-Quality-Index.html 2020-01-22T12:51:17Z text/html en Jose Maria Fernandez-Crehuet,Jorge Rosales-Salas,Rodrigo Avilés <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In this paper, we propose an index to measure the quality of the most important European cities. Using collected data from 66 cities belonging to the 28 countries within the European Union and applying the principal components analysis method, we construct the European Cities Quality Index (ECQI) as a combination of eight dimensions: (1) Public health, (2) Education, (3) Employment and incomes, (4) Environment, (5) Gender equality, (6) Leisure and entertainment, (7) Housing and safety and (8) Transport and mobility, that are in turn made up of 40 distinct variables. We find that London, Aarhus, and Berlin are the cities with the highest scores in the index, with northern European cities performing the best. At the other end of the spectrum, Sofia, Plovdiv, and Bucharest, with severe deficiencies in every dimension, scored worst on the study. The comparisons with the Sustainable Cities Index (Arcadis), the Global Power City Index (Institute for Urban Strategies), Cities in Motion (IESE), the Cities Prosperity Index (UN), and Dynamic Cities (Savills) help us understand the potential use of this new index and its purpose as a tool for assessing public policy. The ECQI could be used to assist public policies designed to improve perception in regions where it is needed.</p> <p><strong>Keywords:</strong> City Quality, Principal Components Analysis, Quality of Life, European Cities Quality Index</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – J.M.F.-C. and R.A.; Methodology – J.M.F.-C.; Formal Analysis – J.R.-S.; Investigation – R.A.; Writing-Original Draft – R.A.; Writing-Review&Editing – J.M.F.-C. and J.R.-S.; Visualization – R.A.; Supervision – J.M.F.-C.; Project Administration – J.M.F.-C. and R.A.</p> <p><i>JEL Classification:</i> I310, R110, Y100</p> <p>Received: 29.11.2019<br class='autobr' /> Accepted: 20.01.2020<br class='autobr' /> Published online: 22.01.2020</p> <p><i>How to cite this paper:</i> Fernandez-Crehuet, J. M., Rosales-Salas, J, & Avilés, R. (2020). Best city to invest in: European Cities Quality Index. <i>Risk Governance and Control: Financial Markets & Institutions, 10</i>(1), 8-22. <a href="http://doi.org/10.22495/rgcv10i1p1" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/rgcv10i1p1</a></p></div> Sustainable supply chain management practices and their mediation effect on economic returns http://www.west-watch.com/Sustainable-supply-chain-management-practices-and-their-mediation-effect-on.html http://www.west-watch.com/Sustainable-supply-chain-management-practices-and-their-mediation-effect-on.html 2020-01-17T12:52:16Z text/html en Kali Charan Sabat,Bala Krishnamoorthy <div class='rss_texte'><p><strong>Abstract</strong></p> <p>This paper examines whether companies' sustainable supply chain efforts are related to the companies' corporate governance and economic performance. Data from Bloomberg's Environmental, Social, and Governance (ESG) and Financial Analysis (FA) databases were used to empirically test the relationships. The paper is an effort to contribute to the body of sustainable supply chain management (SSCM) literature by being amongst the first in India to use the secondary data source for investigating financial and corporate governance (CG) benefits' association with social and green supply chain management practices. After collecting data of Indian manufacturing companies listed in the Bloomberg's ESG terminal, we first tested the relationship of the three ESG factors: environmental, social and governance with the companies economic returns (ER). In the next level, we extended the study to find whether firms' CG initiatives mediate the relationship of green supply chain management (GSCM) and socially responsible supply chain management (SRSCM) practices with the firms' ER. In the study, it was observed that CG activities mediate the relationship between SRSCM and ER whereas it has a negligible mediation effect on the association between GSCM and ER.</p> <p><strong>Keywords:</strong> Sustainable, Economic Returns, Corporate Governance, Mediate, Corporate Social Responsibility</p> <p><strong>Authors' individual contribution:</strong> Conceptualization - K.C.S. and B.K.; Methodology - K.C.S. and B.K.; Formal Analysis - K.C.S.; Investigation - K.C.S. and B.K.; Data Curation - K.C.S.; Writing - K.C.S.; Visualization - K.C.S.; Supervision - B.K.</p> <p><i>JEL Classification:</i> D22, M11, M14, Q56, L52</p> <p>Received: 28.10.2019<br class='autobr' /> Accepted: 19.12.2019<br class='autobr' /> Published online: 17.01.2020</p> <p><i>How to cite this paper:</i> Sabat, K. C., & Krishnamoorthy, B. (2020). Sustainable supply chain management practices and their mediation effect on economic returns. <i>Corporate Governance and Sustainability Review, 4</i>(1), 8-20.<br class='autobr' /> <a href="http://doi.org/10.22495/cgsrv4i1p1" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cgsrv4i1p1</a></p></div> The relationship between corporate governance and stock prices in the GCC financial markets http://www.west-watch.com/The-relationship-between-corporate-governance-and-stock-prices-in-the-GCC.html http://www.west-watch.com/The-relationship-between-corporate-governance-and-stock-prices-in-the-GCC.html 2020-01-17T10:57:49Z text/html en Muneer Al Mubarak <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The study investigates the impact of corporate governance characteristics on stock prices in the Gulf Cooperation Council (GCC) financial markets. It covers the financial markets of four (GCC) countries with a sample of 237 firms for the period of 2013-2017. The study was based on the GCC financial markets' database, financial statements and ancillary notes which include corporate governance, stock prices by Bloomberg and share location. A multi-regression model was used. The independent variables were four corporate governance characteristics and the dependent variable was the stock price, in addition to using a number of control variables. A positive relationship was found between corporate governance and return on stock. The Gulf companies that have increased levels of corporate governance have increased returns to their shares, indicating that these companies are working to reduce the agency's cost and eliminate the conflict between shareholders and directors. Few studies have focused on the relationship of corporate governance characteristics on stock prices in the GCC financial markets. The existing study contributes to the financial management literature by providing further evidence on such a relationship, especially in emerging countries. It serves as a guide to investors looking for the best investments in reliable companies in the region.</p> <p><strong>Keywords:</strong> Corporate Governance, Stock Prices, GCC, Financial Markets</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><strong>Acknowledgements:</strong> The author would like to thank Ahlia University for all the support given to the research activity. I would like also to thank the editorial team for guidance and anonymous reviewers for their comments and suggestions. Finally, I would like to thank Professor Allam Hamdan of Ahlia University for the support given in statistics and data production.</p> <p><i>JEL Classification:</i> G30, G32</p> <p>Received: 02.11.2019<br class='autobr' /> Accepted: 14.01.2020<br class='autobr' /> Published online: 17.01.2020</p> <p><i>How to cite this paper:</i> Al Mubarak, M. M. S. (2020). The relationship between corporate governance and stock prices in the GCC financial markets. <i>Corporate Ownership & Control, 17</i>(2), 57-64. <a href="http://doi.org/10.22495/cocv17i2art5" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art5</a></p></div> Contents http://www.west-watch.com/Contents-6055.html http://www.west-watch.com/Contents-6055.html 2020-01-17T08:22:22Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button.</p></div> Editorial: Corporate governance and regulation is getting ready for the 2020s http://www.west-watch.com/Editorial-Corporate-governance-and-regulation-is-getting-ready-for-the-2020s.html http://www.west-watch.com/Editorial-Corporate-governance-and-regulation-is-getting-ready-for-the-2020s.html 2020-01-17T08:10:19Z text/html en Udo Braendle <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of the Journal of Governance and Regulation was finalized on 17 January, 2020.</p> <p>By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.</p> <p><i>How to cite:</i> Braendle, U. (2019). Editorial: Corporate governance and regulation is getting ready for the 2020s. <i>Journal of Governance and Regulation, 8</i>(4), 4-6. <a href="http://doi.org/10.22495/jgrv8i4_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/jgrv8i4_editorial</a></p></div> Cost stickiness behavior and financial crisis: Evidence from the UK chemical industry http://www.west-watch.com/Cost-stickiness-behavior-and-financial-crisis-Evidence-from-the-UK-chemical.html http://www.west-watch.com/Cost-stickiness-behavior-and-financial-crisis-Evidence-from-the-UK-chemical.html 2020-01-16T08:19:36Z text/html en Ahmed Hassanein,Mohsen Younis <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The global financial crisis has created pessimism in terms of prospects of sales rebounding in the future. Therefore, this study aims to examine the stickiness behaviors of firm costs pre, during and post the period of the financial crisis. It uses a sample from the UK chemical industry over the period from 2001 to 2015. The ABJ sticky cost model is applied with the following cost categories: total costs, cost of goods sold, operating costs, selling, general and administrative costs, salaries and benefits, and finance costs. The ABJ sticky cost models are run separately for each cost category over pre (2001-2007), during (2007-2009) and post (2010-2015) the financial crisis. The study finds that total costs have behaved as sticky pre the financial crisis and anti-sticky during and post the financial crisis. Furthermore, cost of goods sold has changed from sticky (pre and during the financial crisis) to anti-sticky (post the financial crisis). Furthermore, salaries and benefits costs have changed from sticky (pre the financial crisis) to anti-sticky (during the financial crisis) and financing costs from sticky (pre the financial crisis) to anti-sticky (after the financial crisis). However, there is no variation in the behavior of selling, general and administrative costs pre and post the financial crisis.</p> <p><strong>Keywords:</strong> Cost Stickiness, Financial Crisis, Chemical Industry, the UK</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – A.H. and M.Y.; Methodology – A.H. and M.Y.; Writing – A.H. and M.Y.</p> <p><strong>Acknowledgements:</strong> We would like to thank the anonymous referee for helpful comments and suggestions. This paper has been benefited from the useful comments and suggestions made by the review committee and participants of the British Accounting and Finance Association (BAFA) annual conference (April 2019, the UK).</p> <p><i>JEL Classification:</i> L90, M41</p> <p>Received: 16.09.2019<br class='autobr' /> Accepted: 08.01.2020<br class='autobr' /> Published online: 16.01.2020</p> <p><i>How to cite this paper:</i> Hassanein, A., & Younis, M. (2020). Cost stickiness behavior and financial crisis: Evidence from the UK chemical industry. <i>Corporate Ownership & Control, 17</i>(2), 46-56. <a href="http://doi.org/10.22495/cocv17i2art4" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art4</a></p></div> Joint audit, audit market concentration, and audit quality: Perceptions of stakeholders in the UAE http://www.west-watch.com/Joint-audit-audit-market-concentration-and-audit-quality-Perceptions-of.html http://www.west-watch.com/Joint-audit-audit-market-concentration-and-audit-quality-Perceptions-of.html 2020-01-15T08:22:11Z text/html en Yasser Barghathi,Esinath Ndiweni,Alhashmi Aboubaker Lasyoud <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The present study is intended to scholarly explore auditors' perceptions regarding joint audits; whether it can improve audit quality. To reach this goal, participants were enrolled from Big 4, non-Big 4, and other stockholders. In addition, the present study examines the perception of the same stakeholders in terms of how audit concentration affects the audit market in the UAE. Being a qualitative study, 12 semi-structured interviews were conducted to collect required data; 4 face to face and 8 through using Google forms. The finding of the study revealed mixed perception regarding joint audits; it may improve audit quality at the cost of high fees and free-rider problems. Findings of the study has practical implication for policymakers of emerging economies around the globe, such as policymakers who can make joint audits as compulsory. Another significance of the present work is that it has allowed for the perception of stakeholders, who are at the center of the controversial subject of joint audits and audit market concentration. The study suggests that there is a need for removing language barriers; it will benefit some firms in the form of directly communicating with auditors either in English or in Urdu.</p> <p><strong>Keywords:</strong> Joint Audits, Audit Quality, Audit Market Concentration, Implications, Perceptions</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – Y.B.; Methodology – Y.B.; Investigation - Y.B.; Data Curation – Y.B.; Writing – Original Draft – Y.B., E.N.; Writing – Review and Editing – A.L., E.N.; Visualization – Y.B.; Project Administration – Y.B.</p> <p><i>JEL Classification:</i> M42</p> <p>Received: 11.11.2019<br class='autobr' /> Accepted: 09.01.2020<br class='autobr' /> Published online: 15.01.2020</p> <p><i>How to cite this paper:</i> Barghathi, Y., Ndiweni, E., & Lasyoud, A. A. (2020). Joint audit, audit market concentration, and audit quality: Perceptions of stakeholders in the UAE. <i>Corporate Ownership & Control, 17</i>(2), 32-45. <a href="http://doi.org/10.22495/cocv17i2art3" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art3</a></p></div> Determinants of financial instruments risk disclosure: An empirical analysis in the banking sector http://www.west-watch.com/Determinants-of-financial-instruments-risk-disclosure-An-empirical-analysis-in.html http://www.west-watch.com/Determinants-of-financial-instruments-risk-disclosure-An-empirical-analysis-in.html 2020-01-14T08:36:32Z text/html en Alessandra Allini,Luca Ferri,Marco Maffei,Annamaria Zampella <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>This study investigates the effects of firm and country factors, considered as determinants of the financial instruments risk disclosure (FIRD) proxied by IFRS 7 in the European banking system. We select 582 banks-year observations based on the largest five European economies (France, Germany, Italy, Spain and the UK) as provided by the International Monetary Fund (IMF). Our analysis covers a period of 8 years (2007-2014) and adopts an OLS model. Results show that both firm (the type of auditor, board size and profitability) and country factors (financing environment, regulatory environment, and organizational status) affect FIRD. Limitations for this paper could relate to country selection, as well as on the breadth of the sample. Nevertheless, these aspects could unveil possible areas of future inquiry. The contribution of the study is twofold. It enriches the literature about firm and country determinants on financial instruments risk disclosure, as combined rather than single-standing variables. Yet, it draws the attention of banks' management and investors on what the crucial factors to reach an optimal level of FIRD are and gain the confidence of capital markets, reducing information asymmetries. This is the first empirical investigation on the determinants of FIRD, using IFRS 7, in the European banking sector that adopts firm and country factors in a combined effort.</p> <p><strong>Keywords:</strong> Determinants, Risk Disclosure, IFRS 7, Banks</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – A.Z.; Methodology – L.F., A.Z.; Writing – A.A., L.F., M.M., A.Z.; Investigation – L.F., A.Z.; Supervision – A.A., M.M.</p> <p><i>JEL Classification:</i> M41</p> <p>Received: 29.10.2019<br class='autobr' /> Accepted: 03.01.2020<br class='autobr' /> Published online: 14.01.2020</p> <p><i>How to cite this paper:</i> Allini, A., Ferri, L., Maffei, M., & Zampella, A. (2020). Determinants of financial instruments risk disclosure: An empirical analysis in the banking sector. <i>Corporate Ownership & Control, 17</i>(2), 20-31. <a href="http://doi.org/10.22495/cocv17i2art2" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art2</a></p></div> Contents http://www.west-watch.com/Contents-6047.html http://www.west-watch.com/Contents-6047.html 2020-01-13T09:28:15Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button "Download this article".</p></div> Editorial: Challenging issues in risk governance and control http://www.west-watch.com/Editorial-Challenging-issues-in-risk-governance-and-control.html http://www.west-watch.com/Editorial-Challenging-issues-in-risk-governance-and-control.html 2020-01-13T08:58:48Z text/html en Stefania Sylos Labini <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of <i>Risk Governance and Control: Financial Markets & Institutions journal</i> was published on January 13th, 2020.</p> <p>By clicking the button "Download This Article" below you will gain direct access to the Editorial Note of the issue.</p> <p><i>How to cite:</i> Sylos Labini, S. (2020). Editorial: Challenging issues in risk governance and control. <i>Risk Governance and Control: Financial Markets & Institutions, 9</i>(4), 4-6. <a href="http://doi.org/10.22495/rgcv9i4_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/rgcv9i4_editorial</a></p></div> Corporate social responsibility and earnings management: A literature review http://www.west-watch.com/Corporate-social-responsibility-and-earnings-management-A-literature-review.html http://www.west-watch.com/Corporate-social-responsibility-and-earnings-management-A-literature-review.html 2020-01-13T07:51:18Z text/html en Patrick Velte <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>This paper provides insight to whether Corporate Social Responsibility (CSR) and earnings management are connected. Based on the agency- and stewardship theory the author conducts a literature review and evaluates the empirical results with regard to the CSR-earnings management and the earnings management-CSR link. In this context, CSR reporting and CSR performance are focused as CSR measures. The results of the 33 studies indicate that the majority of the research relies on the CSR-earnings management link, on the US-American capital market and on CSR performance measures. Most of these studies indicate that CSR relates to decreased earnings management in line with the stewardship theory. However, also other results exist on the CSR earnings management link. Research on the earnings management-CSR relationship is of low validity so far in view of the low amount. Comparability of recent research on that topic is in particular limited in view of the heterogeneous CSR and earnings management variables and the endogeneity concerns. Future research is encouraged to address endogeneity tests, include country-specific effects and increase the validity of CSR and earnings management variables. As CSR performance and reporting can have a major impact on earnings quality, the author recommends firms to search for opportunities to make their CSR activities more comprehensive by expanding their CSR reporting and thus providing deeper insights on their CSR performance in line with stakeholders' interests. The paper is the first literature review on the CSR-earnings management and earnings management-CSR relationship so far. The author explains the main CSR and earnings management variables that have been included in prior empirical research, stresses the limitations of the studies and gives useful recommendations for future research, practice and regulators.</p> <p><strong>Keywords:</strong> Corporate Social Responsibility, Earnings Management, CSR Performance, CSR Reporting, Stakeholder Agency Theory, Stewardship Theory</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> M410, M420</p> <p>Received: 21.10.2019<br class='autobr' /> Accepted: 24.12.2019<br class='autobr' /> Published online: 13.01.2020</p> <p><i>How to cite this paper:</i> Velte, P. (2020). Corporate social responsibility and earnings management: A literature review. <i>Corporate Ownership & Control, 17</i>(2), 8-19. <a href="http://doi.org/10.22495/cocv17i2art1" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i2art1</a></p></div> Contents http://www.west-watch.com/Contents-6044.html http://www.west-watch.com/Contents-6044.html 2020-01-10T14:50:27Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button.</p></div> Recent challenges of LBOs in Italy and institutional insights: The devil lies in the details http://www.west-watch.com/Recent-challenges-of-LBOs-in-Italy-and-institutional-insights-The-devil-lies-in.html http://www.west-watch.com/Recent-challenges-of-LBOs-in-Italy-and-institutional-insights-The-devil-lies-in.html 2020-01-10T14:41:44Z text/html en Simona Zambelli <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>This study highlights recent institutional challenges faced by Private equity (PE) investors in Italy. These challenges increased the debate on the admissibility of LBOs, especially with reference to the actual nature of the debt underlying LBOs and the deductibility of the related interest payments. Despite the enactment of the 2004 corporate governance reform, which legalized LBOs under specific conditions, and the introduction of the European AIFM Directive (2011/61/EU), the doubts on the admissibility of LBOs have not been fully resolved. Up until recently, the Italian Tax Authority continued to challenge LBOs by interpreting them as tools fraudulently adopted by PE investors to elude the law and evade taxes. As a result, PE investors had to face a number of fiscal challenges and sanctions, which added more uncertainty to the legal admissibility of LBOs in Italy. Recently, new fiscal guidelines and jurisprudence finally changed this perspective, confirming the legitimacy of LBOs.</p> <p><strong>Keywords:</strong> Buyouts, Private Equity, Regulation, AIFMD, Tax Treatment</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G23, G24, G28, K22, K34</p> <p>Received: 03.12.2019<br class='autobr' /> Accepted: 09.01.2020<br class='autobr' /> Published online: 10.01.2020</p> <p><i>How to cite this paper:</i> Zambelli, S. (2019). Recent challenges of LBOs in Italy and institutional insights: The devil lies in the details [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 360-367. <a href="http://doi.org/10.22495/cocv17i1siart16" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart16</a></p></div> Editorial: Scholarly communications and corporate governance research http://www.west-watch.com/Editorial-Scholarly-communications-and-corporate-governance-research.html http://www.west-watch.com/Editorial-Scholarly-communications-and-corporate-governance-research.html 2020-01-10T13:43:34Z text/html en Alexander Kostyuk <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of Corporate Ownership and Control journal was published on January 10, 2020.</p> <p>By clicking the button "Download This Article" below you will gain direct access to the Editorial of the issue.</p> <p><i>How to cite:</i> Kostyuk, A. (2019). Editorial: Scholarly communications and corporate governance research [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 162-164. <a href="http://doi.org/10.22495/cocv17i1si_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1si_editorial</a></p></div> Cognitive pathways in small businesses decision-making processes http://www.west-watch.com/Cognitive-pathways-in-small-businesses-decision-making-processes.html http://www.west-watch.com/Cognitive-pathways-in-small-businesses-decision-making-processes.html 2020-01-09T07:42:32Z text/html en Carmela Rizza <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Research on small firms decision-making processes has stimulated accounting scholars to investigate how peculiarities of these firms could affect the way how they are managed, focusing on the limited diffusion of managerial accounting practices in these contexts. Controversial results on how managerial accounting practices work in small firms, claim for further research that mostly focus on how managerial accounting systems work in the decision-making processes of small firms. In this view, adopting a sociological perspective managerial accounting practices are interpreted as tools for making sense of past decisions and to discover future alternatives through cognitive pathways. Thus, the attention is on learning processes activated through balance sheet analysis in a small firm that was implementing this tool. The main contribution of this paper concerns the crucial role that balance sheet analyses play in supporting the organizational actors to monitor the state of the company and the decision-making processes. The discussion of balance sheet analyses results enabled the owner and his staff to appraise the current situation and pinpoint weaknesses, allowing them to analyse past events with a new lens and activating new knowledge pathways. Case evidence supports theoretical contributions to the decision-making processes of small businesses helping to better understand how managerial accounting practices work to discover future alternatives through cognitive pathways. The paper provides also a practical contribution concerning the crucial role that balance sheet analyses play in small firms.</p> <p><strong>Keywords:</strong> Decision-Making, Small Firms, Knowledge, Balance Sheet Analysis</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> M49, M1</p> <p>Received: 22.10.2019<br class='autobr' /> Accepted: 06.01.2020<br class='autobr' /> Published online: 09.01.2020</p> <p><i>How to cite this paper:</i> Rizza, C. (2019). Cognitive pathways in small businesses decision-making processes [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 350-359. <a href="http://doi.org/10.22495/cocv17i1siart15" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart15</a></p></div> Compensation of internal auditors: Empirical evidence for different impact factors http://www.west-watch.com/Compensation-of-internal-auditors-Empirical-evidence-for-different-impact.html http://www.west-watch.com/Compensation-of-internal-auditors-Empirical-evidence-for-different-impact.html 2020-01-08T08:46:14Z text/html en Marc Eulerich,Tatiana Mazza,Joel Behrend,Ronja Krane <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>This paper examines the different factors which impact the compensation level of chief audit executives (CAE) and sheds light on often unobservable and, therefore, opaque drivers of CAE remuneration. An ordered logistic regression is used to analyze the effects of internal audit function (IAF) competences, stakeholder relationships, and firm complexity on the CAE compensation using survey data from 212 CAEs from a broad spectrum of companies and industries. The results of the study identify IAF competence and independence as fundamental drivers of CAE compensation and provide evidence that firm complexity in terms of foreign sales, listing status and need for monitoring constitute additional salary determinants related to the IAF environment. Our results are based on questionnaire data and subject to a possible response bias as they rely in part on the participants' assessment of a given situation. This paper provides a benchmark for CAE compensation levels in Austria, Germany and Switzerland and offers insights on different company and IAF inherent factors that can be associated with varying salary outcomes. This study is the first to investigate the factors driving the overall compensation level of CAEs and by providing empirical evidence regarding determinants of CAE compensation.</p> <p><strong>Keywords:</strong> Internal Auditor, Internal Auditing Function, Chief Audit Executive, Compensation, Determinants</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.E.; Methodology - M.E.; Writing – M.E., T.M., R.K., J.B.; Investigation – M.E., T.M., R.K., J.B.; Resources – M.E.; Supervision – M.E. and T.M.</p> <p><i>JEL Classification:</i> M40, M42, J30</p> <p>Received: 25.10.2019<br class='autobr' /> Accepted: 27.12.2019<br class='autobr' /> Published online: 08.01.2020</p> <p><i>How to cite this paper:</i> Eulerich, M., Mazza, T., Behrend, J., & Krane, R. (2019). Compensation of internal auditors: Empirical evidence for different impact factors [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 336-349. <a href="http://doi.org/10.22495/cocv17i1siart14" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart14</a></p></div> The relationship between financial crisis and earnings management: Some evidence from the Italian context http://www.west-watch.com/The-relationship-between-financial-crisis-and-earnings-management-Some-evidence.html http://www.west-watch.com/The-relationship-between-financial-crisis-and-earnings-management-Some-evidence.html 2020-01-03T13:19:10Z text/html en Francesco Grimaldi <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The aim of this research is to investigate the relationship between the financial crisis and earnings management. Despite the wealth of research examining earnings management, we still have much to learn about the effects of macroeconomic factors on accounting discretional decisions; the recent financial crises may be one of such factors. Particularly, this study aims at investigating whether, in the Italian context, the precarious macroeconomic conditions and the consequent difficulties suffered by listed companies have constituted an incentive to implement earnings management or not. The research is based on a sample of 89 non-financial listed Italian companies and an investigation period (2005-2016) split out into three different sub-periods: a pre-crisis period (2005-2008), a crisis period (2009-2012) and a post-crisis period (2013-2016). The research is conducted using the Beneish Model, due to its capability to identify, although on the basis of likelihood, companies that potentially adopt earnings management. The results of this study suggest an overall low presence of companies at risk of manipulation throughout the period under investigation; however, the most consistent number of such companies is recorded during the pre-crisis period.</p> <p><strong>Keywords:</strong> Financial Crisis, Earnings Management, Beneish Model, Italian Listed Companies</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G01, G30, G38, M41</p> <p>Received: 28.10.2019<br class='autobr' /> Accepted: 29.12.2019<br class='autobr' /> Published online: 30.12.2019</p> <p><i>How to cite this paper:</i> Grimaldi, F. (2019). The relationship between financial crisis and earnings management: Some evidence from the Italian context [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 325-335. <a href="http://doi.org/10.22495/cocv17i1siart13" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart13</a></p></div> Risk and perils in LBO transactions http://www.west-watch.com/Risk-and-perils-in-LBO-transactions.html http://www.west-watch.com/Risk-and-perils-in-LBO-transactions.html 2019-12-30T18:33:34Z text/html en Vincenzo Capizzi,Renato Giovannini,Valerio Pesic <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In this study, the risks and perils arising from LBO transactions are considered. By focusing attention on 2,450 deals, for which we compare the performance achieved before and after the deal, our study adds to previous literature that has investigated the post-LBO operating performance and the factors which can determine the success of those deals. In particular, we confirm the hypothesis of the peril of assets stripping, even if we find evidence that the presence of private equity, among other factors, can help to mitigate that issue. We find evidence that, especially in the short term, enterprises suffer from a slight deterioration in operating performance compared to their situation before the buyout. Moreover, under specific circumstances, enterprises experience a slight improvement in the ability to generate cash. Finally, we find positive evidence about the presence of private equity investors, which through their governance are mainly able to promote the growth of firms, as well as to increase the capability to generate cash, together with the hypothesis to generate positive effects on the level of employment. At the same time, we find also evidence that the presence of private equity investors is related in some cases to distress for firms involved in LBO transactions.</p> <p><strong>Keywords:</strong> LBO, Governance, Private Equity, Asset Stripping, Employment, Distressed</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – V.C., R.G., and V.P.; Methodology – V.C. and R.G.; Validation – R.G. and V.P.; Formal Analysis – V.C. and V.P.; Writing – Original Draft – V.C. and R.G.; Writing – Review and Editing – R.G. and V.P.; Supervision – V.C. and V.P.</p> <p><i>JEL Classification:</i> G32, G34</p> <p>Received: 05.10.2019<br class='autobr' /> Accepted: 26.12.2019<br class='autobr' /> Published online: 27.12.2019</p> <p><i>How to cite this paper:</i> Capizzi, V., Giovannini, R., & Pesic, V. (2019). Risk and perils in LBO transactions [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 306-324. <a href="http://doi.org/10.22495/cocv17i1siart12" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart12</a></p></div> A new tool to gather debt capital: Green bond. Risks and opportunities for firms and investors http://www.west-watch.com/A-new-tool-to-gather-debt-capital-Green-bond-Risks-and-opportunities-for-firms.html http://www.west-watch.com/A-new-tool-to-gather-debt-capital-Green-bond-Risks-and-opportunities-for-firms.html 2019-12-30T13:19:00Z text/html en Massimo Mariani,Francesco Grimaldi,Alessandra Caragnano <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In the last few years, there has been growing attention by enterprises and investors concerning the adoption and implementation of strategies and decisions characterised by a strong social and environmental impact. 2018 represented a fundamental year for renegotiations on the climate, in fact, following the COP 21, the aim was of both producing a "Rulebook" in order to carry out all the details received from the Paris agreement and a "Talanoa Dialogue" aiming at informing the parties of all the carried-out progresses. In this scenario, green bonds represent the financial tool that better meets the enterprises need to collect capital as well as the possibility of conveying the latter through strict obligations towards high environmental impact initiatives. Considering the high potential in using this tool, this work aims at investigating, in a double perspective, from both the issuing companies and the investors' point of view, risks and opportunities. In particular, the possibility not only to diversify the financial sources but also to carry out a strategic plan to guarantee value creation in the long term (LTVC) and to preserve the environment. The most important goal of this work is to supply a reference framework conveying the main aspects to consider and evaluate.</p> <p><strong>Keywords:</strong> Climate Change, Debt Capital Markets, Green Bonds, Green Projects, Long Term Orientation</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.M., F.G., and A.C; Methodology – F.G. and A.C; Writing – Original Draft – M.M., F.G., and A.C; Writing – Review & Editing – M.M., F.G., and A.C; Visualization – M.M., F.G., and A.C; Project Administration – M.M. and F.G.; Supervision – M.M. and F.G.</p> <p><i>JEL Classification:</i> M14, O16, Q01, Q50</p> <p>Received: 12.10.2019<br class='autobr' /> Accepted: 28.12.2019<br class='autobr' /> Published online: 30.12.2019</p> <p><i>How to cite this paper:</i> Mariani, M., Grimaldi, F., & Caragnano, A. (2019). A new tool to gather debt capital: Green bond. Risks and opportunities for firms and investors. <i>Journal of Governance & Regulation, 8</i>(4), 82-90. <a href="https://doi.org/10.22495/jgrv8i4art7" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/jgrv8i4art7</a></p></div> Does CSR encourage customer loyalty: A case study – Libyan telecom sector? http://www.west-watch.com/Does-CSR-encourage-customer-loyalty-A-case-study-Libyan-telecom-sector.html http://www.west-watch.com/Does-CSR-encourage-customer-loyalty-A-case-study-Libyan-telecom-sector.html 2019-12-27T13:22:13Z text/html en Elhadi Eltweri,Ahmed Eltweri <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The study aims to the determination of the degree of customer awareness in relation to activities for customer social responsibility that should be undertaken by a company that is socially responsible, as well as to establish the influence that CSR has upon the loyalty of customers in the Libyan telecom sector. Given that, there is a great variety of developed countries that have well-developed telecom sectors which are closely monitored; however, the literature in developing countries that address the impact of CSR on customer loyalty is very limited. Therefore, the examination of the sector customers is of worth so that the meeting of needs for Libyan telecom sector customers can be assured. The survey was completed by 154 participants in total, and there was a recording of the web survey and analysis of the findings. Variables utilised for measurement of the influence of CSR upon the loyalty of customers were taken from the framework of theory with the inclusion of an economic CSR component, the legal CSR component, the philanthropic and ethical components of CSR and the loyalty of customers. The web-survey findings showed that customers had a great awareness of the activities of CSR that ought to be engaged in by responsible companies. In addition, the results showed that CSR did have an impact upon loyalty within the Libyan telecom sector and that customers had a willingness to buy from the firm because of the engagement of them in CSR activities.</p> <p><strong>Keywords:</strong> Corporate Social Responsibility, Corporate Governance, Emerging Economies, Customer Loyalties, Trust and Satisfaction of Consumer</p> <p><strong>Authors' individual contribution:</strong> Literature Review – E.E. and A.E.; Methodology – E.E.; Data Analysis – E.E. and A.E.; Writing – Original Draft – E.E.; Writing – Review & Editing – E.E. and A.E.</p> <p><i>JEL Classification:</i> L510, L530, L880, L960, M480</p> <p>Received: 26.11.2019<br class='autobr' /> Accepted: 24.12.2019<br class='autobr' /> Published online: 27.12.2019</p> <p><i>How to cite this paper:</i> Eltweri, E., & Eltweri, A. (2019). Does CSR encourage customer loyalty: A case study – Libyan telecom sector? <i>Journal of Governance & Regulation, 8</i>(4), 64-81. <a href="https://doi.org/10.22495/jgrv8i4art6" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/jgrv8i4art6</a></p></div> A critical analysis of the impact measurement in impact finance http://www.west-watch.com/A-critical-analysis-of-the-impact-measurement-in-impact-finance.html http://www.west-watch.com/A-critical-analysis-of-the-impact-measurement-in-impact-finance.html 2019-12-27T11:52:17Z text/html en Luca Piras <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Academic literature on impact finance has not yet covered all aspects of the topic, nor has significantly contributed, so far, to solve several relevant problems arising from the field. Defining the metrics and measurement models suitable to assess impact is probably, among them, the most important one. Practitioners seem willing to exploit the potential value and, although useful heuristics and practical solutions have been found, no satisfactory and widely accepted valuation model is available. The present paper tries to summarize the state of the art, through the analysis of the available literature and tries to address some possible development in future research. The underlying idea is that the field is still very new, on one side, and extremely diverse in its manifestation, therefore no traditional theory fully applies to it. At the same time, the research on the topic still relays on practitioners' effort, rather than on academia, a gap that ought to be filled. The paper concludes that Impact Finance and Investing are perhaps too narrow labels that limit the possibility to fully grasp the core of it and propose to widen up it by using “Positive Finance” as a more comprehensive one. Indeed, it has been found that academic empirical studies are so far very few and statistical findings far from being robust. The absence of accepted market models, prevent researchers from delivering a theoretical effective interpretation of the growing market.</p> <p><strong>Keywords:</strong> Impact, Measures, Metrix, Impact Finance, Impact Investing</p> <p><strong>Authors' individual contribution:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G1, G3, G4, D4</p> <p>Received: 13.10.2019<br class='autobr' /> Accepted: 26.12.2019<br class='autobr' /> Published online: 27.12.2019</p> <p><i>How to cite this paper:</i> Piras, L. (2019). A critical analysis of the impact measurement in impact finance. <i>Journal of Governance & Regulation, 8</i>(4), 56-63. <a href="https://doi.org/10.22495/jgrv8i4art5" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/jgrv8i4art5</a></p></div> Risk management as increased corporate governance requirement in Italian banks and insurance companies http://www.west-watch.com/Risk-management-as-increased-corporate-governance-requirement-in-Italian-banks.html http://www.west-watch.com/Risk-management-as-increased-corporate-governance-requirement-in-Italian-banks.html 2019-12-27T08:47:19Z text/html en Rosaria Cerrone <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The paper explores how risk management and internal audit functions can be used effectively to strengthen governance frameworks and ensure compliance with new regulatory requirements in the financial services industry. The aim of the paper is the description of the regulatory framework which gives great relevance to risk management both in banks and in insurance companies. A right and efficient risk management scheme, in fact, is based on efficient corporate governance of the financial intermediary. Better corporate governance ensures the achievement of risk management principles. For this, the paper explores the organizational and governance structure of financial intermediaries. The paper is a timely addition to the current discussion around the relevance of sound governance for banks and insurance. It extends the effort to evaluate risk governance standards at these financial intermediaries against regulatory requirements. The paper comes to the conclusion that risk mitigation as the process of reducing risk exposure and minimizing the likelihood of an incident needs to be continually addressed to ensure the business is fully protected and this aim is reached by linking controls to risks, activities, policies, and procedures and to track their effectiveness.</p> <p><strong>Keywords:</strong> Risk Management, Corporate Governance, Insurance Industry, Solvency II, Banks</p> <p><strong>Authors' individual contributions:</strong> The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.</p> <p><i>JEL Classification:</i> G21, G22, G32, K23</p> <p>Received: 22.09.2019<br class='autobr' /> Accepted: 13.12.2019<br class='autobr' /> Published online: 27.12.2019</p> <p><i>How to cite this paper:</i> Cerrone, R. (2019). Risk management as increased corporate governance requirement in Italian banks and insurance companies. <i>Corporate Board: Role, Duties and Composition, 15</i>(3), 58-69. <a href="https://doi.org/10.22495/cbv15i3art5" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/cbv15i3art5</a></p></div> Book review: “Corporate governance in emerging economies: Theory and practice” http://www.west-watch.com/Book-review-Corporate-governance-in-emerging-economies-Theory-and-practice.html http://www.west-watch.com/Book-review-Corporate-governance-in-emerging-economies-Theory-and-practice.html 2019-12-27T08:47:17Z text/html en Domenico Rocco Cambrea <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This review covers the book titled <i>“Corporate Governance in Emerging Economies: Theory and Practice”</i>, which was edited by Robert W. McGee, Khaled Hussainey, Yaroslav Mozghovyi (Virtus Interpress, 2018; ISBN: 978-617-7309-02-3). The review shortly outlines the structure of the book, pays attention to its strong sides and issues that will be, by the reviewer's point of view, most interesting for the reader.</p> <p><i>JEL Classification:</i> G2, G3, M2</p> <p>Received: 13.11.2019<br class='autobr' /> Accepted: 20.12.2019<br class='autobr' /> Published online: 27.12.2019</p> <p><i>How to cite this paper:</i> Cambrea, D. R. (2019). Book review: “Corporate governance in emerging economies: Theory and practice”. <i>Corporate Board: Role, Duties and Composition, 15</i>(3), 70-72. <a href="https://doi.org/10.22495/cbv15i3art6" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/cbv15i3art6</a></p></div> Behavioural factor-based clustering to examine why small businesses choose particular bank: The New Zealand evidence http://www.west-watch.com/Behavioural-factor-based-clustering-to-examine-why-small-businesses-choose.html http://www.west-watch.com/Behavioural-factor-based-clustering-to-examine-why-small-businesses-choose.html 2019-12-26T14:59:04Z text/html en Zakaria Boulanouar,Tahar Lazhar Ayed,Stuart Locke <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>In this paper, using the theory of planned behaviour, behavioural and non-behavioural factors underpinning small business' (SB) choice of a bank are explored. To date, we are unaware of any study that uses a behavioural approach to study bank selection by SBs owner/managers. These factors, discussed in the literature, form the basis of a questionnaire administered in New Zealand. Univariate & bivariate analyses, in addition to cluster analysis of the data, show that behavioral factors, such as knowing a person in the bank, prior personal banking experience and recommendation/referrals, are shown to be most important. Also, after controlling for size, industry, and age of business it is found that there is no statistically significant difference in choice variables. Further, inertia is strong once a bank is chosen and cost, while emphasized, does not trigger actions. A cluster analysis of SB owners/managers produced four different groups. However, all of these groups are affected by the same behavioural factors in their choice of a banking partner.</p> <p><strong>Keywords:</strong> SME, Bank Selection, Behavioural, TPB</p> <p><strong>Authors' individual contribution:</strong> Conceptualisation – Z.B. and S.L.; Methodology – Z.B., T.L.A., and S.L.; Formal Analysis – Z.B., T.L.A., and S.L.; Writing – Z.B., T.L.A., and S.L.</p> <p><i>JEL Classification:</i> C3, G4, G21</p> <p>Received: 13.09.2019<br class='autobr' /> Accepted: 25.12.2019<br class='autobr' /> Published online: 26.12.2019</p> <p><i>How to cite this paper:</i> Boulanouar, Z., Ayed, T. L., & Locke, T. (2019). Behavioural factor-based clustering to examine why small businesses choose particular bank: The New Zealand evidence [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 292-305. <a href="http://doi.org/10.22495/cocv17i1siart11" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart11</a></p></div> Remuneration of independent directors: Determinants and policy implications http://www.west-watch.com/Remuneration-of-independent-directors-Determinants-and-policy-implications.html http://www.west-watch.com/Remuneration-of-independent-directors-Determinants-and-policy-implications.html 2019-12-26T13:53:24Z text/html en Massimo Belcredi,Stefano Bozzi <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Taking advantage of a unique database on Italian Corporate Governance, we study the determinants of remuneration paid to individual non-executive directors (NEDs) and, in particular, to independent directors (INEDs). Our results on a database covering around 16,000 positions/year for non-executive directors in Italian listed firms (over a 9-year period) show that: 1) Remuneration is strongly affected by firm characteristics, in particular by firm size. Independent directors are paid less than gray directors; the gap between the two categories is, however, gradually closing, due to lower additional compensation being paid to gray directors in subsidiaries. Contrary to what happens in other countries, NED remuneration remained quite stable: a small increase is observable only for independent directors; 2) NED remuneration is influenced by the functions performed by individual directors within the board. On the contrary, individual directors' characteristics have little or no impact. We find evidence of a gender pay gap among independent directors in less recent years; however, this gap has gradually disappeared in conjunction with the increasing number and role of female directors, following the adoption of gender quotas; 3) The relationship between independent directors' pay and some variables of interest has changed over time: this is true not only for gender but also for Tobin's Q (a proxy for the benefits from monitoring) and for the number of positions held in other companies. The changes we observe are apparently consistent with the market for directors' pay in Italy becoming more mature after the introduction of Say-on-Pay and other regulation favouring investor activism. This is also consistent with a positive role played by both institutional investors and their representatives sitting on the board of listed companies after the introduction of said legislation.</p> <p><strong>Keywords:</strong> Corporate Governance, Independent Directors, Board Compensation</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.B.; Methodology –S.B.; Formal Analysis – S.B.; Data Curation – M.B.; Writing – Original Draft – M.B.; Writing – Review and Editing – S.B.</p> <p><i>JEL Classification:</i> G32, G34, G38</p> <p>Received: 18.10.2019<br class='autobr' /> Accepted: 24.12.2019<br class='autobr' /> Published online: 26.12.2019</p> <p><i>How to cite this paper:</i> Bozzi, S., Belcredi, M. (2019). Remuneration of independent directors: Determinants and policy implications [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 278-291. <a href="http://doi.org/10.22495/cocv17i1siart10" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart10</a></p></div> Analysts' recommendations and the market impact of the valuation methods http://www.west-watch.com/Analysts-recommendations-and-the-market-impact-of-the-valuation-methods.html http://www.west-watch.com/Analysts-recommendations-and-the-market-impact-of-the-valuation-methods.html 2019-12-24T13:59:17Z text/html en Elisa Cavezzali,Enrico Maria Cervellati,Pierpaolo Pattitoni,Ugo Rigoni <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Despite its importance, the informative value of the analysts' valuation methods has not been thoroughly examined in the literature. Such an issue is relevant with regard to the concerns on analysts' objectivity. We test whether investors' reaction is jointly influenced by recommendations and target revisions and mainly by valuation method used because it summarizes the information considered to be relevant by the analysts. We analyse the market reaction to recommendation revisions with an event study methodology, calculating market-adjusted abnormal returns at the report release date. We run regressions to test the market impact of recommendations and target price revisions, as well as their interaction, and we then focus on testing several models to discern market reaction to distinct valuation methods. We show that market reaction is influenced by the valuation methods used in their reports. The majority of previous studies relying on commercial databases report the market reaction in relation to analysts' recommendations, target prices or earnings forecasts, often overlooking the content of the reports and the methodology used therein. This is due to an information constraint of commercial databases, normally including only the above-mentioned synthetic variables. A notable exception is Asquith, Mikhail, and Au (2005) who find no relation between the market reaction and the valuation methods used by analysts. Compared to Asquith et al. (2005), our research uses a larger database and finds a different result. We show the market reacts differently to distinct valuation methods, without favouring the theoretically more correct ones based on discounting cash flows. We also find that the market reaction is larger when the analysts support their recommendation with more than one valuation method. Our research shows that the market pays attention to the content of the reports and analysts can be more influential when they use more valuation methodologies to cross-check their estimates.</p> <p><strong>Keywords:</strong> Equity Analysts, Valuation Methods, Market Reaction, Content Analysis, Event Study</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – E.C., E.M.C., P.P., and U.R.; Methodology – E.C., E.M.C., P.P., and U.R.; Formal Analysis – E.C., P.P., and U.R.; Resources – E.C., E.M.C., P.P., and U.R.; Data Curation – E.C., P.P., and U.R.; Writing – Original Draft – E.C., E.M.C., P.P., and U.R.; Writing – Review & Editing – E.C., E.M.C., P.P., and U.R.; Visualization – E.C., E.M.C., P.P., and U.R.; Supervision – E.C., E.M.C., P.P., and U.R.; Project Administration – E.C., E.M.C., P.P., and U.R.; Funding Acquisition – E.M.C.</p> <p><i>JEL Classification:</i> G14, G24, M41</p> <p>Received: 13.10.2019<br class='autobr' /> Accepted: 20.12.2019<br class='autobr' /> Published online: 24.12.2019</p> <p><i>How to cite this paper:</i> Cavezzali, E., Cervellati, E. M., Pattitoni, P., & Rigoni, U. (2019). Analysts' recommendations and the market impact of the valuation methods. <i>Journal of Governance & Regulation, 8</i>(4), 46-55. <a href="https://doi.org/10.22495/jgrv8i4art4" class='spip_url spip_out auto' rel='nofollow external'>https://doi.org/10.22495/jgrv8i4art4</a></p></div> Alitalia airline: A business case of bad corporate governance http://www.west-watch.com/Alitalia-airline-A-business-case-of-bad-corporate-governance.html http://www.west-watch.com/Alitalia-airline-A-business-case-of-bad-corporate-governance.html 2019-12-23T14:19:48Z text/html en Maurizio La Rocca,Francesco Fasano,Gian Marco Napoli <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Corporate governance, allocating rights and responsibilities inside the firm, provides worthwhile guidelines that lead management to valuable processes and activities, which are the core of business success for the interests of all stakeholders. This paper provides evidence of an interesting business case in which many corporate governance rules were disregarded. In Alitalia airline company, the management, ignoring corporate governance aspects, strongly disrupted economic value. The study is based on the analysis of managerial profiles of Presidents and CEOs of Alitalia, evidencing their relationship with corporate governance issues. Moreover, we deeply investigated the story of Alitalia and the governments' political influence on the airline company. We found the absence of a proper mix of authority and responsibility, conflicts of interests and agency costs, poor monitoring activities, lack of managerial skills and scarce managerial effort, jointly with ineffective incentive mechanisms. The consequence was that past bad governance has compromised the ability of the company to create new value. We conclude that when governance principles are disregarded for a long time, even a high performing and cash-rich company can lose its competitive advantage, damaging its chances of a turnaround.</p> <p><strong>Keywords:</strong> Corporate Governance, Economic Value, Mismanagement, Bad Governance, Opportunism</p> <p><strong>Authors' individual contribution:</strong> Conceptualization –M.L.R.; Resources – F.F. and G.M.N.; Writing – Original Draft – F.F. and G.M.N.; Visualization – F.F. and G.M.N.; Supervision and Project Administration –M.L.R.</p> <p><i>JEL Classification:</i> G34, O16</p> <p>Received: 02.10.2019<br class='autobr' /> Accepted: 21.12.2019<br class='autobr' /> Published online: 23.12.2019</p> <p><i>How to cite this paper:</i> La Rocca, M., Fasano, F., & Napoli, G. M. (2019). Alitalia airline: A business case of bad corporate governance [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 264-277. <a href="http://doi.org/10.22495/cocv17i1siart9" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart9</a></p></div> ETFS – performance, tracking errors and their determinants in Europe and the USA http://www.west-watch.com/ETFS-performance-tracking-errors-and-their-determinants-in-Europe-and-the-USA.html http://www.west-watch.com/ETFS-performance-tracking-errors-and-their-determinants-in-Europe-and-the-USA.html 2019-12-23T08:00:59Z text/html en George Tsalikis,Simeon Papadopoulos <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>Exchange-traded funds (ETFs) have grown considerably since their first introduction two and a half decades ago, becoming one of the most popular passive investment vehicles among retail and professional investors. However, their tracking ability is often questioned. In this paper we estimate tracking errors from a sample of 15 American and European ETFs utilizing three different methods. We find that American ETFs seem to exhibit lower tracking errors than European ETFs in all measurements of tracking error. We also analyse and discuss the factors that influence tracking error. Fund size and expense ratios are found to be affecting the tracking ability of ETFs. The results of this study concerning the performance and tracking error determinants of ETFs are consistent with the evidence presented in the literature. To our knowledge, this is the first study to compare American and European ETFs in terms of their tracking ability and their tracking error determinants.</p> <p><strong>Keywords:</strong> ETFs, Tracking Error, Price Deviation, Assets under Management, Expense Ratios</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – G.T.; Methodology – G.T.; Investigation – G.T.; Resources – G.T; Writing – Original Draft – G.T. and S.P; Writing – Review & Editing – S.P.; Supervision – S.P.; Funding Acquisition – G.T. and S.P.</p> <p><i>JEL Classification:</i> G11, G14</p> <p>Received: 03.10.2019<br class='autobr' /> Accepted: 19.12.2019<br class='autobr' /> Published online: 23.12.2019</p> <p><i>How to cite this paper:</i> Tsalikis G., Papadopoulos, S. (2019). ETFS – performance, tracking errors and their determinants in Europe and the USA. <i>Risk Governance and Control: Financial Markets & Institutions, 9</i>(4), 67-76. <a href="http://doi.org/10.22495/rgcv9i4p6" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/rgcv9i4p6</a></p></div> Accounting rules and value relevance: A new perspective from the Italian market http://www.west-watch.com/Accounting-rules-and-value-relevance-A-new-perspective-from-the-Italian-market.html http://www.west-watch.com/Accounting-rules-and-value-relevance-A-new-perspective-from-the-Italian-market.html 2019-12-21T13:09:26Z text/html en Marco Rotili,Alessandro Giosi,Giacomo Ceccobelli <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p><strong>Abstract</strong></p> <p>The purpose of this study is to question the basic assumption of the higher value relevance (meaning its superior ability to represent the value of assets and liabilities) of the International Accounting Standard (IAS-IFRS), as compared to Italian accounting practices. Value relevance refers to the vast literature which investigates if and how financial data includes useful information for investors; in other words, if it represents a robust basis for their investment decisions. Analyzing both Anglo-Saxon and other European countries, the literature shows a heterogeneous scenario and divergent results. Unlike previous studies, this study links market and book values by means of the price to book value ratio, considering a sample of Italian listed companies on the Mercato Telematico Azionario, the main segment of the Italian Stock Exchange. Moreover, to strengthen the empirical results the research takes into account a longer period (1996-2015), bearing in mind the change in Italian accounting practices occurring in 2005 as a result of the adoption of IAS-IFRS. The study is consistent with that part of the literature which argues that the accounting discipline underlying IAS-IFRS shows a discrepancy between its theoretical purpose of expressing the current value of a company and its applicable accounting standards. In this respect, the results obtained are somewhat different from the mainstream view, suggesting that the introduction of the IAS-IFRS does not contribute to reducing the gap between the stock market capitalization and the respective book value of a company. Therefore, the Italian national accounting discipline, based on conservative accounting, quite surprisingly appears more value relevant; in other words, it seems to be more able to capture the business value assumed by investors.</p> <p><strong>Keywords:</strong> Value Relevance, IAS-IFRS, Fair Value Accounting, Italian Accounting Standards, Accounting Conservatism</p> <p><strong>Authors' individual contribution:</strong> Conceptualization – M.R. and G.C.; Methodology – M.R.; Writing – M.R. and G.C.; Funding – A.G.; Supervision – A.G.</p> <p><i>JEL Classification:</i> M41, G39</p> <p>Received: 15.10.2019<br class='autobr' /> Accepted: 20.12.2019<br class='autobr' /> Published online: 21.12.2019</p> <p><i>How to cite this paper:</i> Rotili, M., Giosi, A., & Ceccobelli, G. (2019). Accounting rules and value relevance: A new perspective from the Italian market [Special issue]. <i>Corporate Ownership & Control, 17</i>(1), 255-263. <a href="http://doi.org/10.22495/cocv17i1siart8" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/cocv17i1siart8</a></p></div> Contents http://www.west-watch.com/Contents-6014.html http://www.west-watch.com/Contents-6014.html 2019-12-19T13:28:11Z text/html en <div class='rss_texte'><p>To view the contents of the issue please click the button "Download this article".</p></div> Editorial: New horizons in corporate governance research (December 19, 2019) http://www.west-watch.com/Editorial-New-horizons-in-corporate-governance-research-December-19-2019.html http://www.west-watch.com/Editorial-New-horizons-in-corporate-governance-research-December-19-2019.html 2019-12-19T13:21:09Z text/html en Bashar H. Malkawi <div class='rss_texte'><p><a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style='border-width:0' src='http://www.west-watch.com/local/cache-vignettes/L88xH31/88x31png-3303308-86db6.png?1582804837' width='88' height='31' /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> <p>This issue of the journal "Corporate Law & Governance Review" was published on December 19, 2019.</p> <p>By clicking the button "Download This Article" below you will gain direct access to the Editorial Note of the issue.</p> <p><i>How to cite:</i> Malkawi, B. H. (2019). Editorial: New horizons in corporate governance research. <i>Corporate Law & Governance Review, 1</i>(2), 4-6. <a href="http://doi.org/10.22495/clgrv1i2_editorial" class='spip_url spip_out auto' rel='nofollow external'>http://doi.org/10.22495/clgrv1i2_editorial</a></p></div> "成av人欧美大片--成人大片- 看黄a大片"