This work is licensed under a Creative Commons Attribution 4.0 International License.

This issue of the Journal of Governance and Regulation was published on April 24, 2020.

By clicking the button "Download this Article" you will gain direct access to the Editorial of the issue.

How to cite: Lozano-Vivas, A., & Braendle, U. (2020). Editorial: Challenges and opportunities in corporate governance and regulation for a new decade. Journal of Governance and Regulation, 9(1), 4-6. http://doi.org/10.22495/jgrv9i1_editorial

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This review covers the book titled “Innovation in financial restructuring: Focus on signals, processes and tools”, which was written by Marco Tutino and Valerio Ranciaro (Virtus Interpress, 2020; ISBN: 978-6-177309-10-8). The review shortly outlines the fundamental questions researched in 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 and focuses on the contribution of this book to the ongoing discussion on key questions relating to financial practices in restructuring processes.

JEL Classification: G32, G34

Received: 19.04.2020
Accepted: 23.04.2020
Published online: 24.04.2020

How to cite this paper: Mantovani, G. M. (2020). Book review: “Innovation in financial restructuring: Focus on signals, process and tools”. Journal of Governance & Regulation, 9(1), 53-55. https://doi.org/10.22495/jgrv9i1art5

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Abstract

The number of institutional investors has seen a marked increase in the past few decades. For the purpose of the long-term economic success of portfolio companies, it is crucial to encourage investee companies to establish better corporate governance structure within them. The U.K. and Japan introduced the Stewardship Code, and the Government Pension Investment Fund (GPIF) of Japan defines itself to fulfill its roles and responsibilities as an asset owner in line with Japan's Stewardship Code. However, passive funds that have occupied a large share of the market have no financial incentive to incur the costs for engagement with investee companies. The purpose of this article is to review the two Stewardship Codes, the stewardship structure, policies of the GPIF that has accepted Japan's Stewardship Code, and to explore how the GPIF fulfills its stewardship responsibility, based on the Japan's Code, requires its external asset managers to comply with its stewardship principles and continuously monitors the stewardship activities of asset managers. The findings are that continually improving stewardship and engagement by utilizing the PDCA cycle, the GPIF can be a responsible steward in the Japanese market.

Keywords: Stewardship Code, Corporate Governance, Passive Funds, Engagement, Asset Owner, Asset Manager

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

Acknowledgements: This paper is made by a Grant-in-Aid for Scientific Research from “Japan Society for the Promotion of Science”.

JEL Classification: K22, M14, M21

Received: 19.02.2020
Accepted: 07.04.2020
Published online: 15.04.2020

How to cite this paper: Otsuka, A. (2020). Can the world's largest pension fund, Japan's GPIF, be a responsible steward? Stewardship responsibility as asset owner. Journal of Governance & Regulation, 9(1), 44-52. https://doi.org/10.22495/jgrv9i1art4

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Abstract

Fiscal rules are institutional approaches aimed at maintaining fiscal credibility and fiscal discipline and usually set a numerical indicator. Currently, there are two sources of fiscal rules. One is the International Monetary Fund (IMF) dataset that provides country-specific details on various characteristics of rules for 96 countries and the other is European Commission – numerical fiscal rules index that provides the fiscal rule index for 28 member countries. Because of the lack of fiscal rule index for the Asia-Pacific countries, the purpose of this study is to construct the fiscal rule index for 8 Asia-Pacific countries from 1996 to 2015 by using the IMF dataset. Then, this study utilizes the Panel Generalized Method of Moments and the constructed fiscal rule index to investigate the impact of fiscal rules and government effectiveness on the procyclicality of fiscal policy in 8 Asia-Pacific countries, classified as “advanced economies” and “emerging economies”. The empirical results show that fiscal rules and government effectiveness are effective in reducing the procyclicality of government expenditure only in advanced economies. Additionally, the interaction of fiscal rules and government effectiveness has a negative impact on the procyclicality of government expenditure for both advanced economies and emerging economies but the effect is not significant in emerging economies.

Keywords: Fiscal Rules, Government Effectiveness, Procyclicality, Panel Generalized Method of Moments

Authors' individual contribution: Conceptualization – C.-J.H.; Methodology – C.-J.H. and Y.-H.H.; Formal Analysis – C.-J.H.; Writing – C.-J.H. and Y.-H.H.; Funding Acquisition – C.-J.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H50, H87, Q53

Received: 17.02.2020
Accepted: 08.04.2020
Published online: 13.04.2020

How to cite this paper: Huang, C.-J., & Ho, Y.-H. (2020). The impact of national fiscal rules and government effectiveness on the procyclicality of fiscal policy in the Asia-Pacific countries. Journal of Governance & Regulation, 9(1), 35-43. https://doi.org/10.22495/jgrv9i1art3

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Abstract

This research provides a systematic picture on the topic of “How corporate governance influences on firm performance?” through the application of meta-analysis on over 251 studies covering 24,867 businesses of 37 distinguished published papers. Using meta-analysis, by proceeding HOMA procedure, it is statistically evidenced that better corporate governance index and more board independence significantly enhance firm performance. By contrast, business' financial value would be harmed as raise management shares proportion. Not only providing a general relationship direction, the paper also contributes an insight of potential sources of heterogeneity among collected samples as endogeneity problems; and selection of financial performance base. Moreover, significant changes through the sampling period are investigated in the connection of business' worth and board size, board independence (declining trend); state ownership and institutional ownership (rising tendency).

Keywords: Corporate Governance, Meta-Analysis, HOMA Procedures, MARA Procedures

Authors' individual contribution: Conceptualization – D.T.T.B.; Methodology – N.T.T; Formal Analysis – N.T.T.; Writing – Original Draft – N.T.T.; Writing – Review & Editing – D.T.T.B.; Supervision – D.T.T.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C21, C23, G34, G32, L25

Received: 18.01.2020
Accepted: 19.03.2020
Published online: 27.03.2020

How to cite this paper: Dao, T. T. B., & Nguyen, T. T. (2020). A meta-analysis of corporate governance and firm performance. Journal of Governance & Regulation, 9(1), 18-39. https://doi.org/10.22495/jgrv9i1art2

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Abstract

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.

Keywords: Artificial Intelligence, Monitoring, Corporate Governance

Authors' individual contribution: 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.

JEL Classification: G30

Received: 07.01.2020
Accepted: 24.02.2020
Published online: 26.02.2020

How to cite this paper: Grove, H., Clouse, M., Schaffner, L., & Xu, T. (2020). Monitoring AI progress for corporate governance. Journal of Governance & Regulation, 9(1), 8-17. https://doi.org/10.22495/jgrv9i1art1

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This issue of the Journal of Governance and Regulation was finalized on 17 January, 2020.

By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

How to cite: Braendle, U. (2019). Editorial: Corporate governance and regulation is getting ready for the 2020s. Journal of Governance and Regulation, 8(4), 4-6. http://doi.org/10.22495/jgrv8i4_editorial

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Abstract

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.

Keywords: Climate Change, Debt Capital Markets, Green Bonds, Green Projects, Long Term Orientation

Authors' individual contribution: 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.

JEL Classification: M14, O16, Q01, Q50

Received: 12.10.2019
Accepted: 28.12.2019
Published online: 30.12.2019

How to cite this paper: Mariani, M., Grimaldi, F., & Caragnano, A. (2019). A new tool to gather debt capital: Green bond. Risks and opportunities for firms and investors. Journal of Governance & Regulation, 8(4), 82-90. https://doi.org/10.22495/jgrv8i4art7

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Abstract

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.

Keywords: Corporate Social Responsibility, Corporate Governance, Emerging Economies, Customer Loyalties, Trust and Satisfaction of Consumer

Authors' individual contribution: 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.

JEL Classification: L510, L530, L880, L960, M480

Received: 26.11.2019
Accepted: 24.12.2019
Published online: 27.12.2019

How to cite this paper: Eltweri, E., & Eltweri, A. (2019). Does CSR encourage customer loyalty: A case study – Libyan telecom sector? Journal of Governance & Regulation, 8(4), 64-81. https://doi.org/10.22495/jgrv8i4art6

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Abstract

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.

Keywords: Impact, Measures, Metrix, Impact Finance, Impact Investing

Authors' individual contribution: The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: G1, G3, G4, D4

Received: 13.10.2019
Accepted: 26.12.2019
Published online: 27.12.2019

How to cite this paper: Piras, L. (2019). A critical analysis of the impact measurement in impact finance. Journal of Governance & Regulation, 8(4), 56-63. https://doi.org/10.22495/jgrv8i4art5

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Abstract

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.

Keywords: Equity Analysts, Valuation Methods, Market Reaction, Content Analysis, Event Study

Authors' individual contribution: 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.

JEL Classification: G14, G24, M41

Received: 13.10.2019
Accepted: 20.12.2019
Published online: 24.12.2019

How to cite this paper: Cavezzali, E., Cervellati, E. M., Pattitoni, P., & Rigoni, U. (2019). Analysts' recommendations and the market impact of the valuation methods. Journal of Governance & Regulation, 8(4), 46-55. https://doi.org/10.22495/jgrv8i4art4

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Abstract

Strong corporate governance is vital for countries in the Middle East and North Africa (MENA) as they strive to increase economic growth and reinforce competitiveness and create prosperous societies. This paper evaluates the corporate governance landscape by identifying Development Economic and policy challenges in the MENA countries. In addition, it discovers the role of MENA markets and OECD in improving corporate governance. The current study found that corporate governance is still in the early stages in MENA region and it recommends that there is a need for future research to develop corporate governance model in the unique economic and social environment in the MENA countries. The contribution of this research is significant, not only for the MENA region, but also for application to other emerging markets. In this study, clear insights are provided for policymakers, regulators, managers, investors and researchers involved in emerging markets.

Keywords: Corporate Governance, Emerging Markets, Middle East and North Africa, OECD

Authors' individual contribution: The author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: G3, G30, G4

Received: 02.06.2019
Accepted: 06.12.2019
Published online: 09.12.2019

How to cite this paper: Otman, K. (2019). Corporate governance challenges: In the context of MENA countries. Journal of Governance & Regulation, 8(4), 35-45.
http://doi.org/10.22495/jgrv8i4art3

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Abstract

The multi-factor partitioning model (MFP) is one of the shift-share analysis models and constitutes an essential contribution to the effort of describing and understanding a region's growth. The purpose of the present paper is: 1) To present, the multi-factor partitioning model and its connection to traditional and homothetic one; 2) To explain why the use of standardized relative changes in the use of the MFP model ignores two effects: the distribution effect and the structure effect; 3) To propose a modification of multi-factor partitioning model to take into account the previous mentioned effects; 4) To apply the multi-factor partitioning and the proposed modified multi-factor partitioning model in order to identify growth regional patterns in thirteen Greek regions, and show that the use of multi-factor partitioning model instead the proposed modified model, misleads us to the results.

Keywords: Multi-Factor Partition, Shift-Share Analysis, Regional Planning, Homothetic Employment

Authors' individual contribution: Conceptualization – G.X. and K.P.; Methodology - G.X. and K.P.; Writing – G.X. and K.P.

JEL Classification: R10, R11, R19, R50

Received: 07.05.2019
Accepted: 18.11.2019
Published online: 19.11.2019

How to cite this paper: Xanthos, G., & Psimarni, K. (2019). The multi-factor partitioning model and a suggestion for its modification. Journal of Governance & Regulation, 8(4), 21-34. http://doi.org/10.22495/jgrv8i4art2

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Abstract

The financial system consists, without doubt, one of the most important determinants of the world national economies, which undergoes numerous changes and challenges with major impact on the economic growth prospects of a country. A healthy financial system is the steam engine of the economy, a major source for economic growth through which capitals are attracted for investments; hence, it is regarded as a trustee of financial stability. Given the difference in structure and function of the financial sector in various countries, we investigate the extent to which the implementation of International Financial Reporting Standards (IFRS) accompanied by Corporate Governance practices affected the quality of financial and narrative reporting offered within published statements of Greek banks for the period from 2008 to 2011. The originality of the work lies at the fact that it focuses on Greek financial institutions for a period that incorporates both the burst of global financial crisis and the beginning of the Greek sovereign debt crisis making inferences on quality of reporting as a result of IFRS and Corporate Governance practices adoption. Our analysis revealed the positive contribution of both of the above categories of variables to the accuracy and quality of the information offered to stakeholders.

Keywords: International Financial Reporting Standards, Corporate Governance, Reporting Quality, Banking, Global Financial Crisis

Authors' individual contribution: Conceptualization - P.B., A.G., C.L., and V.B.; Methodology - P.B., A.G., C.L., and V.B.; Data Analysis - P.B., A.G., C.L., and V.B.; Writing-Original Draft - P.B., A.G., C.L., and V.B.; Writing-Review and Editing - P.B., A.G., C.L., and V.B.

JEL Classification: M4, M40, M41, M42, N24

Received: 07.10.2018
Accepted: 18.10.2019
Published online: 21.10.2019

How to cite this paper: Ballas, P., Garefalakis, A., Lemonakis, C., & Balla, V. (2019). Quality of financial reporting under IFRS and corporate governance influence: Evidence from the Greek banking sector during crisis. Journal of Governance & Regulation, 8(4), pp. 8-20.
http://doi.org/10.22495/jgrv8i4art1

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This issue of the Journal of Governance and Regulation was finalized on 16 September, 2019.

By clicking the button "Download This Article" you will gain direct access to the Editorial Note of the issue.

How to cite: Dell'Atti, S. (2019). Editorial: Corporate governance and regulation: An international outlook. Journal of Governance and Regulation, 8(3), 4-6. http://doi.org/10.22495/jgr_v8_i3_editorial

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Abstract

Elements of corporate governance must be activated at all scales for the efficient functioning of a nation's capital market. The effectiveness of the board of directors depends on factors related to, for example, the composition of the board and its independence. This study aims to investigate empirically whether the board of directors is an effective mechanism for monitoring managers in Saudi Arabia through a survey. A questionnaire that was developed and employed by Elyas (2015) is utilized for data collection after modifying it and judging its appropriateness. We targeted individuals who had relevant experience as members of the board of directors as our respondents. Only 29 subjects took the survey. The results indicate that the respondents generally disagree with the survey items, pointing out the ineffectiveness of the board of directors in monitoring executive management. Although the subjects' credible experience can be assumed, the generalizability of our research findings is limited because of the low number of respondents.

Keywords: Board of Directors, Executive Management, Monitoring, CEO, Effectiveness

Authors' individual contribution: Conceptualization – K.R.A; Methodology K.R.A and I.Y.A; Validation – K.R.A and I.Y.A; Formal Analysis – K.R.A; Investigation – K.R.A; Writing – Original Draft – K.R.A and I.Y.A; Writing – Review & Editing – K.R.A.

Acknowledgment: We thank Dr. Ahmed Al-Hadi Karimuddin, King Saud University; Prof. Murya Habbash, King Khaldi University; Dr. Abdulaziz M. Alwathnani, Alfaisal University; Dr. Mohammed Albader, the Institute of Public Administration and AlAnoud AlShaikh, adjunct lecturer, Al Immam University for reviewing the research instrument and supplying us with comments that assist us in developing it. We also thank the anonymous reviewers and the editorial board for their comments. All remaining errors are our own.

JEL Classification: K22, L21, L51, M1, M48, M52, M120, M140, M410

Received: 15.05.2019
Accepted: 13.09.2019
Published online: 16.09.2019

How to cite this paper: Al-Adeem, K., & Al Sogair, I. Y. (2019). Effectiveness of the board of directors in monitoring executive management: Preliminary evidence from Saudi Arabia. Journal of Governance & Regulation, 8(3), pp. 72-82.
http://doi.org/10.22495/jgr_v8_i3_p7

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Abstract

The major research question in this paper is whether improved corporate political disclosure and accountability lead to improved stock market and financial performance. To explore this question, the paper first examines the corporate financial performance of companies ranked by the Center for Political Accountability (CPA), and finds no significant relationship between a company's ranking on the CPA and its financial and stock market performance. The paper hypothesizes that the reason for the lack of a relationship is because the CPA ranking system is itself flawed, insofar as the criteria used to evaluate corporate political accountability exclude important elements of political activity and potential corruption. To test this hypothesis, the paper adds revised criteria that include important aspects of corporate political activities and accountability. Using these revised criteria, the authors then re-evaluate and re-rank the 196 corporations in the top two quintiles of the S&P 500. The results show that, so long as appropriate criteria are used to measure corporate political disclosure and accountability practices, there is indeed a positive relationship between corporate political disclosure and accountability practices and improved financial and stock market performance.

Keywords: Political Disclosure, Accountability, Market Performance

Authors' individual contribution: Conceptualization – J.H.; Methodology – H.G. and J.H.; Formal Analysis – H.G.; Resources – M.C.; Writing – J.H., H.G. and B.K.; Supervision – J.H. and M.C.; Project Administration – J.H.; Funding Acquisition – M.C.

JEL Classification: G3, K16

Received: 05.01.2019
Accepted: 27.08.2019
Published online: 28.08.2019

How to cite this paper: Holcomb, J., Grove, H., Clouse, M., & Klaw, B. (2019). Does improved corporate political disclosure and accountability improve stock market and financial performance? Journal of Governance & Regulation, 8(3), 64-71. http://doi.org/10.22495/jgr_v8_i3_p6

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Fraud, financial distress and liquidation, audit failures, hubris and narcissism, are all genuine and serious issues in today's business environment. Challenges exist for organisations in many different guises as they strive to achieve their goals. This often results in a balancing act between the right course of action and action which could be seen to be ethically immoral or even illegal. Recently many organisations have encountered financial distress for different reasons, at a high cost to employees, pensioners, and other stakeholders. How can organisations ensure that legal and ethical decisions and actions are taken? Through a review of literature, recent case studies, and the incidence of relevant courses in universities, this paper examines the importance of education in the fight against corporate fraud. Evidence indicates that employees can be effective corporate watchdogs in the fight against financial deception and unethical decisions; increasing the number of people in a firm with enhanced fraud awareness and knowledge through education should, therefore, be one of the essential requirements for our future business managers and leaders. We indicate why anti-fraud education is important in the fight against financial shenanigans, and why it should be more widely adopted for the benefit of all stakeholders.

Keywords: Financial Shenanigans, Corporate Governance, Forensic Accounting, Corporate Reporting, Accounting and Auditing, Anti-Fraud Education

Authors' individual contribution: Conceptualization – D.J., I.F.A., N.G., J.W., and F.B.; Writing – N.G. and I.F.A.; Funding – N.G.; Resources – N.G. and I.F.A.; Supervision – N.G.

JEL Classification: G3, M0, M4

Received: 20.05.2019
Accepted: 06.08.2019
Published online: 07.08.2019

How to cite this paper: Jemieson, D., Awolowo, I. F., Garrow, N., Winfield, J., & Bhaiyat, F. (2019). Financial shenanigans: The importance of anti-fraud education. Journal of Governance & Regulation, 8(3), 58-63. http://doi.org/10.22495/jgr_v8_i3_p5

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Football companies (equivalent to professional sport teams) are increasingly challenged with raising capital. However, future athletic success is highly uncertain and associated cash flows are difficult to predict which makes it difficult to attract investors. An alternative financing instrument that has become more popular in recent years is Third Party Ownership arrangements (TPOs). TPO is a way for financiers to invest in the player squad of a football company and therefore reducing investment risks. Due to the wide usage in football and legal concerns about TPOs, FIFA has forbidden the implementation of TPOs since 2015. But, the question arises, whether a ban of TPOs is really appropriate avoiding a potential conflict of interests as well as problems in ethics and compliance. To address these aspects and finally to judge the appropriateness of TPOs for football companies and the ban itself, a financing-theory-oriented view on the design and functional possibilities of TPOs is needed, but still missing in the literature. Our paper tries to fill this gap and sets the economic basics for a profound legal and economic discussion on the use of TPOs in football as well as sports in general.

Keywords: Sport Management, Third Party Ownership, Governance, Transfer Fee, Transfer Rights

Authors' individual contribution: Conceptualization – T.H.; Methodology – T.H. and A.O.; Writing – T.H., A.O., and F.W.; Investigation – T.H. and F.W.; Resources – A.O.; Supervision – T.H. and A.O.

Acknowledgments: We would like to thank anonymous reviewers as well as participants of the 2019 conference “Corporate Governance: Search for the Advanced Practices” in Rome for their valuable comments. We do not receive any grants or funds for our paper. All remaining errors are our own.

JEL Classification: G15, G23, G32

Received: 22.05.2019
Accepted: 02.08.2019
Published online: 05.08.2019

How to cite this paper: Herberger, T. A., Oehler, A., & Wedlich, F. (2019). Third party ownership arrangements: Is a ban in football really appropriate? Journal of Governance & Regulation, 8(3), 47-57. http://doi.org/10.22495/jgr_v8_i3_p4

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The contagion of the financial crisis is an unavoidable fact for the economies of the global system anymore. Therefore measuring contagion, analyzing the propagation of volatility across countries became mainly important research topics among economists. There are many different econometric techniques used to test for contagion effect of financial crises. Transmission of shocks from one country to another can be calculated with four different techniques. The empirical literature mostly based on the techniques of measuring cross-market correlations, GARCH models, cointegration and probit models. In these models, economists use financial or real indicators or both of them in their analyses. As the financial indicators, they generally use share price indices, interest rates, exchange rates, and inflation rate. As the real indicators, they generally use the values of GDP, imports, exports, unemployment rate, etc. The aim of this paper is to underline the prominent empirical studies in the field of contagious crises.

Keywords: Contagion, Financial Contagion, Economic Crises, Economic Globalization

Authors' individual contribution: the author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: F30, F60, F65, G1

Received: 27.05.2019
Accepted: 23.07.2019
Published online: 24.07.2019

How to cite this paper: Kocabas, C. (2019). Testing for contagion in economic literature. Journal of Governance & Regulation, 8(3), 42-46. http://doi.org/10.22495/jgr_v8_i3_p3

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to investigate the level of compliance with CG mechanisms and accountability in Libyan listed companies. It adopts a qualitative approach, using semi-structured interviews to collect the required data from two broad stakeholder groups: internal stakeholders (ISG) and external stakeholders (ESG). The findings of this study provide evidence that Libyan listed companies are to some extent committed to implementing CG mechanisms, but that CG and accountability practices are still at an early stage of development in the country and there are significant weaknesses in terms of practice. Listed companies' commitment is most evident in their adherence to the BoD mechanism, but levels of disclosure and transparency are barely satisfactory; interviewees argued that at present, disclosure and transparency practices in Libya are designed only to meet local, not international, requirements. Listed companies have also taken practical steps towards meeting the LCGC's requirements regarding the internal and external audit mechanisms, but the general view among ISG and ESG interviewees was that these mechanisms are currently not robust enough to ensure strong internal control systems. Finally, in terms of the shareholders' rights mechanism, majority shareholders are seen to enjoy much greater protection, both legally and in practice, than minority shareholders. The results of the study reveal that the lack of knowledge and awareness about the concept of CG, the weakness of the Libyan legislative environment and the lack of accountability mechanisms are the most significant factors inhibiting the advance of CG in the Libyan environment. This study helps to enrich our understanding and knowledge of current CG and accountability practices by being the first to investigate CG mechanisms and accountability in Libyan listed companies.

Keywords: Corporate Governance Mechanisms, Accountability, Libyan Listed Companies

Authors' individual contribution: Conceptualization - I.E., F.E., J.J., and E.B.; Methodology - I.E. and F.E.; Formal Analysis – I.E., F.E., J.J., and E.B.; Writing – Original Draft – I.E., F.T., J.J., and E.B.; Writing – Review & Editing – I.E.; Supervision – I.E. and F.E.

JEL Classification: G3, G30, G34, G38

Received: 23.05.2019
Accepted: 17.07.2019
Published online: 18.07.2019

How to cite this paper: Elshahoubi, I., Eltraiki, F., Jaballa, J., & Bazina, E. (2019). Challenges to compliance with corporate governance mechanisms and accountability in emerging markets: Evidence from Libyan listed companies. Journal of Governance & Regulation, 8(3), 24-41. http://doi.org/10.22495/jgr_v8_i3_p2

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper analyses the relationship between human development and migration. In particular, it tests whether migration, as a function of human development, follows an inverted U-shaped curve, known as mobility transition. Understanding this relationship is important since many Western politicians have implemented socioeconomic development strategies in migrant source countries with the aim to reduce migration. Considering that previous studies have mainly concentrated on the economic factors of development, this study introduces the broader human development index, determined by income, health and education, as the main explanatory variable. Analysing the rate of migration from 111 low- and middle-income countries into the aggregate of 15 OECD countries between 2000 and 2010, the study finds strong support for the inverted U-shaped relationship between human development and migration. This indicates that development strategies aimed at reducing migration are misguided.

Keywords: Human Development, Migration, Mobility Transition

Authors' individual contribution: the author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

JEL Classification: F500, J600, O200

Received: 08.05.2019
Accepted: 08.07.2019
Published online: 09.07.2019

How to cite this paper: Decrinis, L. (2019). Human development and international migration: Lessons from low- and middle-income countries. Journal of Governance & Regulation, 8(3), 8-23. http://doi.org/10.22495/jgr_v8_i3_p1

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This issue of the Journal of Governance and Regulation was finalized on 2 July, 2019.

By clicking the button "Download This Article" you will gain direct access to the Editorial Note of the issue.

How to cite: Kallandranis, C. (2019). Editorial: Governance and regulation - Evidence at micro and macro level. Journal of Governance and Regulation, 8(2), 4-6. http://doi.org/10.22495/jgr_v8_i2_editorial

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Abstract

Greek municipalities involved in mandatory mergers from the Kallikratis program after the end of 2010. The purpose of this study is the accounting evaluation of Greek municipalities after the implementation of the Kallikratis program in the period of the economic crisis in Greece (2011 and onwards). To examine the success of the Kallikratis program in a difficult era for Greece we examine public accounting data for several accounting measures for the Greek municipalities; also we try to reveal if any municipalities' geographical area gained better performance under these circumstances. The results of this study showed that with the Kallikratis program, several municipalities, apart of new increased responsibilities in the post-Kallikratis period and with reduced state financial support, managed to achieve better results with increased their cash and cash equivalents, their securities and decreased their short-term debt. Last, according to the geographical area, these mandatory municipal mergers were more beneficial for some municipalities than to others, with better financial performance, limiting its obligations and improving its net position, thus providing us new insights to local development for Greece.

Keywords: Public Accounting, Municipalities, Kallikratis, Greece

JEL Classification: H72, M40, R53

Received: 26.03.2019

Accepted: 24.06.2019

Published online: 25.06.2019

How to cite this paper: Pazarskis, M., Goumas, S., Koutoupis, A., & Konstantinidis, K. (2019). Do municipal mergers work? Evidence from municipalities in Greece. Journal of Governance & Regulation, 8(2), 61-67. http://doi.org/10.22495/jgr_v8_i2_p6

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Abstract

Research of influence of macroeconomic fluctuations on stock markets suggests different kinds of relationship between them. This paper aims to analyze the relationship between Shanghai Composite Index and China's macroeconomic indexes applying cointegration method and different metrics of money supply: M1 and M2. The time period of data in this paper spans from Quarter 1, 1995 to Quarter 4, 2018. The Vector Error Correction Model (VECM) constituted suggests that: 1) there is a long-run equilibrium between these variables; 2) in the long run, despite of different measures of money supply, real GDP is negatively correlated with SCI, implicating a deviation of a stock market from real economy; 3) in the short run, no matter what measure of money supply we use, real GDP seems to have no significant effect on SCI, which again verifies the deviation of the stock market from real economy. The impulse response analysis suggests the totally opposite direction of effect that money supply and interest rate have on SCI in different specifications, and the forecast-error decomposition analysis indicates that SCI cannot fully reflect macroeconomic fluctuations once again.

Keywords: Stock Market, Macroeconomic Fluctuation, Cointegration, VECM

JEL Classification: E44, G14

Received: 26.03.2019

Accepted: 13.06.2019

Published online: 14.06.2019

How to cite this paper: Lingnan, L., (2019). An analysis of the impacts of macroeconomic fluctuations on China's stock market. Journal of Governance & Regulation, 8(2), 49-60. http://doi.org/10.22495/jgr_v8_i2_p5

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Abstract

The current reality of the business world, commands that economists and especially accountants include in their daily routine contemporary and advanced information systems with which it is considered necessary that economists and accountants be familiar and well trained. IT knowledge and skills are increasingly important for graduates to enter the accounting job market. Over the last years, the persistent discrepancy between IT skills provided by job candidates and expectations of employers has triggered many scholars and research centers to focus on the graduate skills gap. The lack of education of business schools comprises an obstacle to the normalization of new circumstances as there is no defined standard of necessary knowledge and the appropriate lessons learning technologies are not included in the curriculum.
The purpose of this paper is to investigate the influence of graduates' IT knowledge on their perceived readiness to enter the accounting job market. A self-administered survey conducted and a sample of 363 questionnaires was gathered for the purpose of the study. Principal components analysis supported four components of IT tools which were used in hierarchical regression analysis as determinants of the perceived work readiness of graduates. During the analysis satisfaction with the teaching and learning processes were taken into consideration as well as the type of the institution graduates attend.
Research findings indicate that educators must give attention to specific accounting IT tools and applications so as to enhance graduates' level of knowledge. Satisfaction with learning and teaching experience and the type of institution are important causal elements for graduates' work-readiness.

Keywords: Readiness, Accounting Information Systems, Knowledge Economy, Education

JEL Classification: I25, M15, M41

Received: 23.03.2019

Accepted: 12.06.2019

Published online: 13.06.2019

How to cite this paper: Karagiorgou, D., Seretidou, D., & Stavropoulos, A. (2019). The impact of IT level of knowledge on work-readiness from the accounting graduate perspective: Evidence from Greece. Journal of Governance & Regulation, 8(2), 41-48. http://doi.org/10.22495/jgr_v8_i2_p4

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Abstract

Disruption poses a unique challenge for regulatory agencies, particularly those with a focus on criminal law. Yet regulatory scholarship focuses on and elevates the concepts of risk without addressing the actors and agents that populate the regulated environment. This article has three main aims. The first of these aims is to use disruption as a conceptual lens to critique the predominant regulatory theories and highlight some of their weaknesses. The second is, by reference to the principles set forth by Foucault and Deleuze, to identify some of the fundamental principles that could apply to a post-regulatory State to enable them to be more successful in the disrupted environment. The third is to examine the case of China as an empirical example of how some elements of that system have been employed in the real world. The article closes with some considerations of possible future areas of discussion.

Keywords: Criminal Law, Deleuze, Disruption, Foucault, Regulation

Acknowledgment: In completing this paper I acknowledge the generous assistance of my supervisors, Pr. Mirko Bagaric and Dr. Ben Gussen, as well as the support of an Australian Government Research Training Program (RTP) Scholarship.

JEL Classification: K2, K4

Received: 02.04.2019

Accepted: 05.06.2019

Published online: 06.06.2019

How to cite this paper: Walker-Munro, B. (2019). Disruption, regulatory theory and China: What surveillance and profiling can teach the modern regulator. Journal of Governance & Regulation, 8(2), 23-40. http://doi.org/10.22495/jgr_v8_i2_p3

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Abstract

The purpose of this paper is to investigate the Consumer Price Index (CPI) as a competitiveness inflation measure and to determine whether an empirical relationship exists between the rates of inflation represented in CPI and the level of the real exchange rate. In order to achieve the objectives of this paper, the study calculated the consumer price index (CPI) as an inflation rate for the period 2010-2018, and also adopted the real exchange rates for the same period. In order to achieve the objectives of the study, a Pearson correlation analysis between the average CPI rates, and the average exchange rate were conducted. The outcomes of the correlation analysis conducted reflect a negative correlation of 62% between the exchange rates and the CPI's inflation rates, which means that when CPI rates cause direct opposite effect of the determination level of exchange rates on the Jordanian economy.

Keywords: Consumer Price Index (CPI), Inflation Rate, Competitiveness, Exchange Rate, Jordan

JEL Classification: M41, L16, M41, N35

Received: 16.02.2019

Accepted: 01.04.2019

Published online: 03.04.2019

How to cite this paper: Shaban, O. S., Al-Attar, M., Al Hawatmah, Z., & Ali, N. N. (2019). Consumer Price Index (CPI) as a competitiveness inflation measure: Evidence from Jordan. Journal of Governance & Regulation, 8(2), 17-22. http://doi.org/10.22495/jgr_v8_i2_p2

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Abstract

The European Union is a unique economic and political union, a single "internal" market with over than 510 million inhabitants. Further coordination in the field of taxation is required, since it is not yet integrated into the E.U. policy and remains under the responsibility of national governments. However, the economic and financial turmoil caused by the crisis of 2008 and the new challenges resulted from the globalization and digitalization of the economy, require profound reforms to tax systems. Thus, fiscal policy is a significant priority on the EU agenda: firstly, in order to stabilize public finances, stimulate growth and competitiveness and finance the European social welfare model as well as to tackle tax evasion and aggressive tax planning, developed mainly by multinationals. The present paper attempts to explore on a theoretical and empirical basis the challenges and possible developments towards harmonization in European taxation, at a critical juncture, not only for the integration but also for the existence of the European Union. More specifically, it investigates the Greek taxation and its structural weaknesses through empirical research conducted with questionnaires distributed among 225 tax officers, accountants, and accounting executives and statistical processing of their response. The results were examined through descriptive analysis, segmented in seven theoretical domains based on the examination of both audit literature and the present taxation state of Greece. The findings reveal that structural problems remain unresolved within the Greek tax system. However, it is understood that issues of distrust toward the taxation system may hinder harmonization processes.

Keywords: Taxation, Tax Planning, Tax Competition, Tax Consciousness, Greece

JEL Classification: M48, H71, H83

Received: 06.02.2019

Accepted: 18.03.2019

Published online: 02.04.2019

How to cite this paper: Karagiorgos, A., Drogalas, G., Lazos, G., & Fotiadou, I. (2019). Tax policy, tax disharmony and tax competition: The situation of Greek economy. Journal of Governance & Regulation, 8(2), 8-16. http://doi.org/10.22495/jgr_v8_i2_p1

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This issue of the Journal of Governance and Regulation was finalized on 28 March, 2019.

By clicking the button "Download This Article" you will gain direct access to the Editorial Note of the issue.

How to cite: De Luca, F. (2018). Editorial: The intertwined play of governance, regulation, financial information and disclosure – Suggestions for further research. Journal of Governance and Regulation, 8(1), 4-6. http://doi.org/10.22495/jgr_v8_i1_editorial

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Abstract

Brazilian law establishes a set of provisions regarding the defense of competition, usually with a dissuasive effect on the conflicting performance of the multi-company manager. However, research highlights that practices such as interlocking directorates (i.e., interconnected directorates with board members operating in multiple companies) are widespread, especially in the stock market. The present article explores this paradox by analyzing a social network of 347 Brazilian listed companies. An E-I (external-internal) index and a permutation test are used to verify the occurrence of direct and indirect intermediation within and among economic sectors. The paper advances towards a hypothesis on the effectiveness of the Brazilian antitrust legislation.

Keywords: Antitrust Law, Brazil, Conflicting Manager, Multiple Directorships, Social Network Analysis

JEL Classification: D430, D490, K210

Received: 03.08.2018

Accepted: 09.03.2019

Published online: 19.03.2019

How to cite this paper: Carbonai, D. (2019). Board interlocking network in the Brazilian stock market. A hypothesis on the conflicting manager. Journal of Governance & Regulation, 8(1), 75-81. http://doi.org/10.22495/jgr_v8_i1_p6

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Abstract

The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.

Keywords: DEA, Productivity, Efficiency, Liberalisation, MENA

JEL Classification: G21, F30, G20

Received: 20.01.2019

Accepted: 06.03.2019

Published online: 19.03.2019

How to cite this paper: Elfeituri, H. (2019). Examining banking productivity drivers in MENA banks after financial liberalisation in 1990s. Journal of Governance & Regulation, 8(1), 59-74. http://doi.org/10.22495/jgr_v8_i1_p5

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Abstract

The objective of this paper is to provide an assessment of corporate governance in selected financial institutions in Barbados. The instrument used for measuring corporate governance practice is derived from the Central Bank of Barbados (CBB) Corporate Governance Guidelines (2013) and the OECD Principles of Corporate Governance (OECD, 2004). A corporate governance index is developed to best fit the domestic financial system. The results indicate that the five financial institutions are highly compliant with the corporate governance guidelines. The corporate governance index ranges from 75 to 92 on a scale of 0 to 100 in ascending order of good corporate governance. Commercial banks obtained the highest corporate governance rankings. This result is not surprising since the banks operating in Barbados are affiliates of foreign-owned and domiciled financial institutions. They are therefore monitored by multiple local, regional and international regulatory agencies. This paper is the first such research effort for the Barbadian economy. The findings should be beneficial to many persons, including top management (CEO, Chairman, Board of Directors), shareholders and other stakeholders, regulators and future researchers.

Keywords: Barbados, Corporate Governance, Corporate Governance Index, Financial Institutions

JEL Classification: G21, G23, G34

Received: 20.11.2018

Accepted: 04.02.2019

Published online: 13.02.2019

How to cite this paper: Wood, A., & Small, K. (2019). An assessment of corporate governance in financial institutions in Barbados. Journal of Governance & Regulation, 8(1), 47-58. http://doi.org/10.22495/jgr_v8_i1_p4

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Abstract

Recent discourse on corporate failures gives prominence to the impact of weak corporate governance systems in most corporate entities, hence reasons for investors and creditors pessimism. This literature review article seeks to articulate how audit committee could strengthen corporate governance in organizations. The paper reviews the guidelines developed by the Bank of Ghana to curb the degeneration of the Banking sector in Ghana following the collapse of seven indigenous banks between 2017 and 2018. The objective of this paper is to underscore the effective functioning of audit committees as a panacea to the corporate governance weaknesses in Ghana. The paper observes that albeit the Bank of Ghana, as a regulatory body, underscored weak corporate governance systems – it failed to emphasize mechanisms for strengthening audit committees in its guidelines to regulate the sector. The paper, therefore, promotes the presence and effective functioning of the audit committees as an additional layer to strengthen the monitoring and supervisory functions within corporate bodies. It recommends that the Bank of Ghana must emphasize the establishment of audit committees as a core part of corporate governance systems of all banks to ensure that the interest of all stakeholders is protected adequately through the oversight role of the audit committees.

Keywords: Audit Committee, Bank, Emerging Market, Solvency

JEL Classification: E58, G33, G34, G38

Received: 11.12.2018

Accepted: 25.01.2019

Published online: 04.02.2019

How to cite this paper: Salia, H., Addo, E. B., & Adoboe-Mensah, N. (2019). The role of an audit committee in bank solvency: An emerging market case. Journal of Governance & Regulation, 8(1), 38-46. http://doi.org/10.22495/jgr_v8_i1_p3

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Abstract

The uniqueness of Islamic banks (IBs) is shown through compliance with Islamic law (Sharia) which is approved through Sharia Supervisory Board (SSB) and presented for stakeholders by Sharia Supervisory Board Report (SSBR). This study seeks to achieve three main objectives as follows: (1) it identifies the degree of IBs' transparency in compliance with Sharia and their commitment with the governance standards that issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); (2) it aims to measure the impact of adoption AAOIFI on the degree of Sharia disclosure; and (3) it seeks to test the economic consequences of Sharia disclosure based on its impact on financial performance. We analyse content of annual reports and websites of 120 IBs across 20 different countries for year 2016. Regression analysis shows compliance level for Sharia disclosure based on our index for SSBR is 53% with higher level compliance for IBs that apply AAOIFI standards comparing with banks that adopting International Financial Reporting Standards (IFRS). Therefore, adopting AAOIFI has a positive effect on enhancing the degree of Sharia disclosure. Moreover, Sharia compliance has a positive influence on financial performance based on both Returns on Assets (ROA) and Tobin's Q as a robustness test. This study adds value to Islamic accounting literature by being a primary study. There is a lack of research on the topic and this paper measures the consequences of Sharia disclosure over the financial performance of IBs as well as the role of Islamic standards (AAOIFI) in enhancing the image of Islamic banks through supporting their compliance with Sharia.

Keywords: Sharia Disclosure, Economic Consequences, Islamic Banks, Financial Performance, AAOIFI Governance Standards

JEL Classification: G21, G34, M410

Received: 30.11.2018

Accepted: 15.01.2019

Published online: 04.02.2019

How to cite this paper: Albarrak, H., & El-Halaby, S. (2019). AAOIFI governance standards: Sharia disclosure and financial performance for Islamic banks. Journal of Governance & Regulation, 8(1), 19-37. http://doi.org/10.22495/jgr_v8_i1_p2

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Abstract

The paper aims to provide an overview of the major opportunities and challenges of the fourth phase of globalization in the current macro scenario characterized by a high level of economic and geopolitical complexity and uncertainty. The assumptions and results reported in this work are based mostly on the judgmental opinion of the author and on his critical analysis of macroeconomic data and global trends. The author of the paper is a seasoned chief economic advisor and professor of global economics and disruptive innovation. Forecasting global market trends and future scenarios in a highly unpredictable business environment is always a complex task which cannot be undertaken simply relying on quantitative research techniques based on historical datasets since the past is not always a good predictor of future events. The qualitative approach adopted for this research is based on multiple forms of data sources and the following activities: (1) identification of the key forces and trends in the environment (i.e. environmental scanning); (2) assessing the driving forces and trends by importance and uncertainty; (3) envisioning potential alternative scenarios; and (4) assessing the potential implications of each trend and scenario. The result of this analysis confirms the central role that technological development is likely to have in the near future as a major driver of disruptive change in the economic and social models of many countries and leads to the conclusion that the groundbreaking and disruptive innovations of the future should be perceived as a potential opportunity and not just as a threat by stakeholders in the international community.

Keywords: Globalization, Sustainability, Creating Shared Value, Complexity and Uncertainty, Macro Strategy Analysis, Technological Innovation, Social Inclusion, Global Competitiveness, International Business

JEL Classification: E44, E58, E71, F01, I32

Received: 01.12.2018

Accepted: 11.01.2019

Published online: 22.01.2019

How to cite this paper: Pezzuto, I. (2019). Turning globalization 4.0 into a real and sustainable success for all stakeholders. Journal of Governance & Regulation, 8(1), 8-18. http://doi.org/10.22495/jgr_v8_i1_p1

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This issue of the Journal of Governance and Regulation was finalized on 11 January, 2019.

By clicking the button "Download This Article" you will gain direct access to the Editorial Note of the issue.

How to cite: Dell'Atti, S. (2018). Editorial: An international outlook of research in governance and regulation. Journal of Governance and Regulation, 7(4), 4-5. http://doi.org/10.22495/jgr_v7_i4_editorial