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

Abstract

The efforts to reduce the widened effects of structural inequality for women in South Africa have resulted in varied experiences (Burns, Tomita, & Lund, 2017). The study problematised the unresearched and not well articulated social construct within the career experiences of women working in a telecommunication company in South Africa. This article argues that the meaning ascribed to the socio context and equity policy can better describe the dimension of the broader issue of gender inequality in post-apartheid South Africa. The study contributes to discourse analysis methods where discourse analysis was used to explain the experiences of three women who are senior managers with at least ten years of experience. The discourse-based understanding of the experiences of women in this study was reframed into and within the interactions of equity policy deliberation, societal factors and the organisational context model. These interactions allowed interpretation of the career choice for women and what it means for personal development. The model of career experience depicts strong alternative views on a career path for women. The results of this study provide unique findings for justice regulation in the workplace for women in South Africa.

Keywords: Discourse Analysis, Career, Women, Experience, Workplace, South Africa

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.

JEL Classification: J16, 124, 125

Received: 08.09.2021
Accepted: 17.01.2022
Published online: 20.01.2022

How to cite this paper: Dosunmu, A. G. (2022). A discourse analysis of career experiences of women in the developing country. Journal of Governance & Regulation, 11(1), 100–111. https://doi.org/10.22495/jgrv11i1art10

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

Abstract

In this study, we have focused our attention on foreign exchange risk as it has gained the attention of many researchers all around the globe. In addition, the increased foreign exchange in the process of globalization significantly impacts the profitability and operations of enterprises (Nor, Masron & Alabdullah, 2020) making it essential to understand the topic in greater depth. Thus, the main purpose of the paper is to understand the contribution that was made regarding this topic. This study thus employed the bibliometric analysis to evaluate the literature on foreign exchange risk. Bibliometric analysis is a statistical approach used to represent developments in a research topic and identify future research directions (Chen & Yang, 2021). The bibliometric analysis was based on 487 documents spanning from 1969 to 2020. The visualization and content analysis results showed that the literature on foreign exchange risk has been growing, and a great deal of it has shown that foreign exchange risk significantly affects the overall performance of both local and multinational corporations. Many papers also concluded that an understanding of foreign exchange risk by investors and businesses can greatly affect their holdings. Based on this study's exploration of current research streams in the field, directions for future research are proposed.

Keywords: Foreign Exchange Risk, Forex, Bibliometrics, Visualization, Performance

Authors' individual contribution: Conceptualization — H.N., H.Z.S., M.N.D., F.A., S.A., J.A., and M.A.; Methodology — H.N., H.Z.S., and M.N.D.; Software — H.N. and H.Z.S.; Validation — H.N., H.Z.S., M.N.D., F.A., S.A., J.A., and M.A.; Formal Analysis — H.N., H.Z.S., and M.N.D.; Investigation — H.N., H.Z.S., M.N.D., F.A., S.A., J.A., and M.A.; Resources — H.N. and H.Z.S.; Data Curation — H.N., H.Z.S., M.N.D., F.A., S.A., J.A., and M.A.; Writing — Original Draft — F.A., S.A., J.A., and M.A.; Writing — Review and Editing — H.N., H.Z.S., and M.N.D.; Visualization — H.N., H.Z.S., M.N.D., F.A., S.A., J.A., and M.A.; Supervision — H.N.; Project Administration — H.N.; Funding Acquisition — H.N.

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

JEL Classification: G10, G15, G19, G32

Received: 17.08.2021
Accepted: 14.01.2022
Published online: 18.01.2022

How to cite this paper: Nobanee, H., Shanti, H. Z., Dilshad, M. N., Alzaabi, F., Alkindi, S., Alhammadi, J., & Alnaqbi, M. (2022). Bibliometric analysis of foreign exchange risk. Journal of Governance & Regulation, 11(1), 86–99. https://doi.org/10.22495/jgrv11i1art9

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

Abstract

It has been a general belief that the public's perception can affect the firm's value. Subsequently, many initiatives have been made by various governments to pull such effects on their listed firm. Particularly in Indonesia, one of those initiatives is known as Annual Report Award (ARA), whereby its participants are required to show their good corporate governance (GCG) practices. Thus, the purpose of this study is to investigate the 2018 ARA's effect on the market performance of its listed firms' categories. In which, the analysis focuses on the categories' abnormal returns and the abnormal trading volume. Through the application of the event study methodology, the findings imply that the Indonesian capital market is more attentive to the participants within the financial state-owned enterprise category, and 2018 ARA has helped increase the participants' abnormal return within the respective category. Although an increase in abnormal returns is not necessarily accompanied by an increase in abnormal trading volume, the findings also suggest that the 2018 ARA can influence participants' stock returns across multiple market indices. Hence, the ARA event could influence the public's perception and, simultaneously, bringing added value to its participants.

Keywords: Annual Report Award, Event Study, Abnormal Stock Return, Abnormal Trading Volume, Indonesia

Authors' individual contribution: Conceptualization — A.A.; Methodology — A.A. and K.B.S.; Investigation — K.B.S.; Resources — K.B.S.; Data Curation — K.B.S.; Writing — Original Draft — A.A. and K.B.S.; Writing — Review & Editing — A.A. and K.B.S.; Visualization — K.B.S.; Supervision — A.A.; Project Administration — A.A.; Funding — A.A.

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

Acknowledgements: The Authors acknowledge and would like to thank Mr. Mas Achmad Daniri (Chairman of the National Committee on Governance Indonesia, 2004–2019).

JEL Classification: G12, G14

Received: 27.08.2021
Accepted: 13.01.2022
Published online: 17.01.2022

How to cite this paper: Alijoyo, A., & Sirait, K. B. (2022). Public perception and firm's market performance: The case of Annual Report Award in the emerging economy. Journal of Governance & Regulation, 11(1), 73–85. https://doi.org/10.22495/jgrv11i1art8

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Abstract

This study aims to analyze the effect of income inequality and regional characteristics such as ethnicity and religion on conspicuous consumption for visible and invisible good types of households in the Indonesian regions by dividing regions into regions with low and high-income inequality levels based on the value median Gini index in Indonesia. The data set deployed in this study were pooled data collected from households provided by the Indonesian Central Bureau of Statistics 2017 and 2018. Employing the OLS method, we find that 1) income inequality has a negative effect on visible goods, and positive effect on invisible goods, 2) ethnicity and religion give an effect on visible and invisible goods. The government should pay attention to the phenomena of conspicuous consumption because numerous problems will likely arise if this conspicuous consumption is ignored. High conspicuous consumption would tend to lead to a materialistic lifestyle causing a higher inequality. In addition, the crime rate could equally increase given the high risk of conspicuous consumption in attracting others' attention to individuals' wealth.

Keywords: Conspicuous Consumption, Income Inequality, Regional Characteristics

Authors' individual contribution: Conceptualization — Y.L. and K.K.; Methodology — Y.L. and K.K.; Software — Y.L.; Validation — Y.L. and K.K.; Formal Analysis — Y.L. and K.K.; Investigation — Y.L.; Resources — Y.L. and K.K.; Data Curation — Y.L.; Writing — Original Draft — Y.L.; Writing — Review & Editing — K.K.; Visualization — Y.L. and K.K.; Supervision — K.K.; Funding Acquisition — K.K.

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

Acknowledgements: The Authors are thankful for the support of the PUTI Grant NKB-2509/2020 of Universitas Indonesia (University of Indonesia).

JEL Classification: D12, R20

Received: 31.07.2021
Accepted: 12.01.2022
Published online: 14.01.2022

How to cite this paper: Lastuti, Y., & Khoirunurrofik, K. (2022). Income inequality, regional characteristics and household's conspicuous consumption: An empirical study in developing market. Journal of Governance & Regulation, 11(1), 64–72. https://doi.org/10.22495/jgrv11i1art7

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

Abstract

The Keynesian theory states that economic growth is positively affected by government spending, while Classical theory states that economic growth is negatively affected by government spending, as is stated by neoclassical public choice theorists (Nyasha & Odhiambo, 2019). Based on these theories, many authors have carried out research on the impact of economic freedom on economic growth by analyzing various empirical cases. Bergh and Karlsson (2010) with the findings from his paper confirmed that the countries with the highest government size have an elevated growth in the globalization index of KOF and the Fraser Institute's economic freedom index. The main aim of this paper is to analyze the government size impact on the growth of the economy in the Western Balkan in the time period 2000–2017 according to Fraser Institute's data, incorporating the following econometric models: fixed and random effects, pooled ordinary least squares (OLS), and Hausman-Taylor IV. With these models, this paper analyzes a government size and its components: government enterprises and investment, government consumption, transfers, and subsidies. The results illustrate a relationship between the size of the government and the growth of the economy in the Western Balkans that is positive. 1% increase in government size affects 0.29% gross domestic product (GDP) growth per capita. According to the Hausman-Taylor instrumental variable, 1% growth of government consumption is affected by 0.69% the decline in GDP per capita. The growth rate of transfers and subsidies affects 0.17% of GDP growth per capita and 1% of government enterprises and investment affects 0.54% GDP growth per capita.

Keywords: Government Size, Economic Growth, Fraser Institute, Western Balkan

Authors' individual contribution: Conceptualization — R.B., A.G., K.U., and D.R.; Methodology — R.B.; Software — R.B.; Validation — A.G.; Formal Analysis — R.B.; Investigation — R.B. and D.R.; Resources — K.U. and D.R.; Data Curation — A.G. and K.U.; Writing — Original Draft — R.B., A.G., K.U., and D.R.; Writing — Review & Editing — R.B., A.G., K.U., and D.R.; Visualization — K.U. and D.R.; Supervision — R.B. and A.G.; Project Administration — R.B.

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

JEL Classification: B4, E020, E2

Received: 02.06.2021
Accepted: 11.01.2022
Published online: 13.01.2022

How to cite this paper: Bajrami, B., Gashi, A., Ukshini, K., & Rexha, D. (2022). Impact of the government size on economic growth in the Western Balkan countries. Journal of Governance & Regulation, 11(1), 55–63. https://doi.org/10.22495/jgrv11i1art6

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

Abstract

This paper investigates the influence of accounting information systems (AIS) on firms' performance during the COVID-19 pandemic and how they help enhance employees' performance and the external auditing process. This paper is qualitative in nature using the inductive approach. In-depth primary data were gathered through semi-structured interviews conducted in the year 2020. Due to the pandemic, the interviews with ten auditors were done online through the Zoom software application. The empirical findings of this paper show a positive impact of AIS on firms' performance and a more significant influence on employees' performance and the auditing process. AIS reduces costs and human errors, eases operations, speeds up work tasks, and increases employees' productivity during the COVID-19 pandemic. The findings also show that there is no direct impact on firms' overall cash flow/revenues. This paper increases our understanding of how AIS can influence and improve firms' performance and the significance of implementation factors such as training. It provides practical guidelines for regulators and managers to utilize accounting information systems to perform better.

Keywords: AIS, Firm Performance, COVID-19 Pandemic, Employee Performance, Auditing Process

Authors' individual contribution: Conceptualization — A.L., R.M., and H.A.; Methodology — A.L., R.M., and H.A.; Investigation — A.L., R.M., and H.A.; Formal Analysis — A.L., R.M., and H.A.; Writing — Original Draft — A.L., R.M., and H.A.; Writing — Review & Editing — W.W.E. and A.A.L.; Supervision — W.W.E.

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

JEL Classification: M40, M41

Received: 21.09.2021
Accepted: 10.01.2022
Published online: 11.01.2022

How to cite this paper: Lawal, A., Mohamed, R., Abdalla, H., ElKelish, W. W., & Lasyoud, A. A. (2022). The role of accounting information systems in firms' performance during the COVID-19 pandemic. Journal of Governance & Regulation, 11(1), 45–54. https://doi.org/10.22495/jgrv11i1art5

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

Abstract

Generally, the interest of stakeholders is to see the growth of their entities, also they benchmark their entities through business performance metrics or tools like return on equity, return on assets (Mishra & Kapil, 2018), earnings per share, gross profit margin, employee productivity, sales turnover, ratings given by prominent credit rating agencies, such as Investment Information and Credit Rating Agency (ICRA), Credit Rating Information Services of India Limited (CRISIL), Standard and Poor, etc. In addition to this, internal governance mechanisms, board of directors' characteristics, their independence, transparency, concentration, and presence of employees in the ownership structure also influence financial and stock market performance (Braendle, Stiglbauer, Ababneh, & Dedousis, 2020). However, assessing the performance of entities through some of these limited angles is not always possible. One more criterion for assessing the performance of entities is corporate governance rating (CGR). However, it is not widely used as a tool to assess a firm's performance in emerging markets. The present research paper is intended to address the scenario of corporate governance rating in Indian corporate world to assess a firm's performance. With the help of majorly secondary sources of data, this study was conducted from 2003 to 2021 based on the CRISIL's rating pattern. The results revealed that only 20 companies adopted the process of corporate governance rating. The findings showed the significance of corporate governance rating, its adoption and future research in the development of the rating mechanisms in India as well as in other emerging markets.

Keywords: Corporate Governance, Stakeholders, Benchmarking, Metrics, Rating

Authors' individual contribution: Conceptualization — A.L.R.; Methodology — G.R.; Validation — G.R.; Formal Analysis — A.L.R.; Investigation — A.L.R.; Resources — N.K.; Data Curation — G.R.; Writing — Original Draft — A.L.R.; Visualization — A.L.R.; Supervision — A.L.R.; Project Administration — P.C.B.

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

Acknowledgements: The authors extend their gratitude to all the experts and officials of various companies for extending their support in the completion of this work.

JEL Classification: G38, M42, M48

Received: 27.07.2021
Accepted: 06.01.2022
Published online: 10.01.2022

How to cite this paper: Rao, A. L., Kulshrestha, N., Ramakrishnan, G., & Bahuguna, P. C. (2022). The ignored tool of corporate governance rating: An overview of the corporate world in the emerging market. Journal of Governance & Regulation, 11(1), 38–44. https://doi.org/10.22495/jgrv11i1art4

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

Abstract

This study aims to perceive the effect of financial entrepreneurship performance (FEP) over sustainable innovation (SI) disclosure in an emerging market. Jordanian banks are tested based on a multiple regression analysis for the periods 2008 and 2018 and a time series forecasting webinar analysis for the period from 2019 to 2029 based on data ranging from 2008 to 2018. Innovation is indicated through disclosed intangible assets (IA), and items related to research and development (R&D) costs. As organizations anticipate stability by concentrating on technological awareness to influence higher innovative performance (Guo, Guo, Zhou, & Wu, 2020), this study came to converse the relationships between previous literature variables; Hussain (2015) as well as Lassala, Apetrei, and Sapena (2017) revealed through the regression models that there is a relationship between FEP and SI. Meanwhile, bank FEP is directed by return on assets (ROA) and return on equity (ROE). Results reveal that bank FEP affects SI disclosure in a positive manner for the period 2008 and at a higher significant level than 2018. In the meantime, the growth prediction analyses divulge that both ROA and ROE are expected to decrease rapidly within a coming couple of years and then increase promptly.

Keywords: Sustainable Innovation, Financial Entrepreneurship Performance, Intangible Assets, Research and Development

Authors' individual contribution: Conceptualization — M.E.H. and A.F.S.; Methodology — M.E.H. and A.F.S.; Investigation — M.E.H. and A.F.S.; Writing — Original Draft — M.E.H. and A.F.S.; Writing — Review & Editing — M.E.H. and A.F.S.; Supervision — M.E.H. and A.F.S.

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

JEL Classification: D23, G17, G21, F650, L26, O34

Received: 22.06.2021
Accepted: 04.01.2022
Published online: 06.01.2022

How to cite this paper: Hamdallah, M. E., & Srouji, A. F. (2022). The influence of sustainable innovation on financial entrepreneurship performance: Growth and prediction in an emerging market. Journal of Governance & Regulation, 11(1), 27–37. https://doi.org/10.22495/jgrv11i1art3

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

Abstract

Surveillance is becoming the norm in today's life, especially with the pandemic of COVID-19. Surveillance of public crowds and activity is a controversial issue that can contradict the privacy of individuals (Federal Decree-Law No. (5) of 2012). This paper presents a comparative study of surveillance and privacy regulations and law in the UAE compared to the USA and the EU. The objective of this comparison is to highlight the amendments that have been adopted to improve laws and regulations, the need for further improvement, and the strengths and weaknesses in each of these countries. A discussion of different acts adopted in these countries and comparing them can help security experts to cooperate with legislators in order to rectify shortcomings and improve the acts adopted in their respective countries. Furthermore, we think that such a comparison can help system developers to find an easier way to accommodate the differences in security measures that they have to tackle and incorporate when they are serving customers in these countries and especially in the UAE. A legal framework has been proposed in order to define the maturity level of regulations adopted by a government in regard to surveillance and privacy laws and acts.

Keywords: Surveillance and Privacy, Regulations, Cyber Law, Privatization Policy, Regional Government Analysis

Authors' individual contribution: Conceptualization — I.S.A.Q., W.A., and M.Q.; Methodology — I.S.A.Q., W.A., and M.Q.; Validation — I.S.A.Q., W.A., and M.Q.; Investigation — I.S.A.Q., W.A., and M.Q.; Resources — I.S.A.Q., W.A., and M.Q.; Data Curation — I.S.A.Q., W.A., and M.Q.; Writing — Original Draft — I.S.A.Q., W.A., and M.Q.; Writing — Review & Editing — I.S.A.Q., W.A., and M.Q.; Visualization — I.S.A.Q., W.A., and M.Q.; Supervision — I.S.A.Q.; Project Administration — I.S.A.Q. and M.Q.

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

JEL Classification: K24, L50

Received: 23.07.2021
Accepted: 03.01.2022
Published online: 05.01.2022

How to cite this paper: Al Qatawneh, I. S., Almobaideen, W., & Qatawneh, M. (2022). A comparative study on surveillance and privacy regulations (the UAE vs. the USA and the EU). Journal of Governance & Regulation, 11(1), 20–26. https://doi.org/10.22495/jgrv11i1art2

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

Abstract

This study investigates the association between the CEO's foreign experience and the CEO's share ownership with tax aggressiveness. The research data is sourced from financial reports and annual reports of non-financial sector companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019, obtained from www.idx.co.id. Based on purposive sampling, the total sample in this study amounted to 88 observations. Hypotheses testing in this study employed multiple regression analysis for cross-section data. This study concludes that the CEO's foreign experience is negatively associated with tax aggressiveness, and CEO's ownership is not associated with tax aggressiveness. Returnee CEO can adequately analyze the costs and benefits related to tax aggressiveness, and it is found that if they carry out tax aggressiveness in Indonesia, the costs incurred will be greater than the benefits received. Meanwhile, the CEO's ownership in Indonesia is still low, so it cannot affect the tax aggressiveness level. This research indicates that the Indonesia Tax Authority need to pay attention to the CEO's experience when conducting audits and need to cooperate with the Indonesia Financial Services Authority (OJK) to measure how the company behaves in running its business, whether the returnee CEO carry out all business ethics only or adequately those related to tax aggressiveness.

Keywords: Director's Experience, Managerial Ownership, Tax Aggressiveness

Authors' individual contribution: Conceptualization — D.M.D.S.P. and A.F.; Methodology — D.M.D.S.P. and A.F.; Formal Analysis — D.M.D.S.P., A.F., S.W., and F.I.; Investigation — D.M.D.S.P., A.F., S.W., and F.I.; Writing — Original Draft — D.M.D.S.P.; Writing — Review & Editing — D.M.D.S.P., A.F., S.W., and F.I.; Supervision — A.F.

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

JEL Classification: G31, G32, G38, H26, M41

Received: 12.07.2021
Accepted: 31.12.2021
Published online: 04.01.2022

How to cite this paper: Pebriyanti, D. M. D. S., Firmansyah, A., Wijaya, S., & Irawan, F. (2022). The CEO's foreign experience and the CEO's share ownership: Does tax aggressiveness matter? Journal of Governance & Regulation, 11(1), 8–19. https://doi.org/10.22495/jgrv11i1art1

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 December 29, 2021.

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

How to cite: Harman, K. (2021). Editorial: Corporate governance and regulation: The literature review as a research methodology and research method [Special issue]. Journal of Governance and Regulation, 10(4), 190–192. https://doi.org/10.22495/jgrv10i4sieditorial

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

Abstract

Value creation may not be enough when considering deals. Avoiding deviations over mergers and acquisitions (M&A) advisor's standards is a useful behavioral add-on to deals rationality. The investigations on this theme revealed the presence of many different approaches and practices in the decision-making process and managing companies among different countries. This paper is focused on Spain through research built by in-depth interviews and surveys to specialists that shows the main three factors with a capacity to produce deviations and the main deviations created. The factors are the financing needs of the acquirer, the need to do the deal by the seller, and the different nature and role, whether industrial, managerial, or financial of the participants. Deviations found are agreements out of specialists' usual outputs and affect deal pricing. The presence of these factors should allow capacities of alert, analysis, and bargaining and increase the value of planning, training, and management at deals frames. Rationality based on value creation might be enhanced by the fulfillment of the advisors' criteria. The main contribution of the paper is that, to avoid deviations, might be considered a behavioral contribution to complement rationality in the complex and uncertain universe of M&A deals.

Keywords: M&A, Behavioral Corporate Finance, Rationality, Value Creation

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: The Author would like to pay his gratitude and his respects to his colleague, Dr. José Manuel Novas, who passed away. He was a dedicated professor, with a passion for research pertaining to the main deviations over specialist's usual praxis affecting prices and their sources in mergers and acquisitions deals. He certainly will always be in our thoughts.

JEL Classification: G02, G34

Received: 19.10.2021
Accepted: 20.12.2021
Published online: 23.12.2021

How to cite this paper: López Domínguez, I. (2021). Adding behavior to rationality on M&A deals analysis: Deviations over specialist's usual praxis and their sources [Special issue]. Journal of Governance & Regulation, 10(4), 365–370. https://doi.org/10.22495/jgrv10i4siart16

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

Abstract

This paper focuses on investigating the determinants of the debt-to-equity ratio, and its impact on the performance of 20 industrial companies listed on the Amman Stock Exchange (ASE). It uses a numerical research model comprised of two operations: data envelopment analysis (DEA) followed by regression analysis, that is to identify the key determinants of the said ratio and examine the effects of it and its determinants on companies' performances. Furthermore, the paper detects that firm risk has a substantially positive impact on debt-to-equity and firm size; whereas tangibility and liquidity have a substantially negative impact on debt-to-equity. Finally, the study finds that debt-to-equity and firm size both have a substantially negative impact on performance; contrastingly, liquidity and tangibility and possess a substantially positive impact on the industrial companies' performances. The importance of exploring the research problem lies in its potential to further benefit and help the industry leaders in the ASE, and stakeholders of these industries, in developing an action plan that determines the debt-to-equity ratio for financing they will need in order to optimize the company's sustainability and profit generation (Drobetz & Fix, 2005).

Keywords: Debt-to-Equity, Data Envelopment Analysis, Regression Analysis, Capital Structure, Amman Stock Exchange, Industrial Jordanian Firms, Strategic Management

Authors' individual contribution: Conceptualization — K.A.; Methodology — A.B.-H.; Software — A.B.-H.; Validation — K.A.; Formal Analysis — A.B.-H.; Investigation — A.B.-H.; Resources — A.B.-H.; Data Curation — A.B.-H.; Writing — Original Draft — A.B.-H.; Writing — Review & Editing — K.A.; Visualization— K.A.; Supervision — K.A.; Project Administration — K.A.; Funding Acquisition — K.A.

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

Acknowledgements: The Authors are grateful for the support of the Department of Banking and Financial Sciences, the Faculty of Economics and Administrative Sciences, the Hashemite University. We would also like to express our thanks to Mr. Ali Awartany for his assistance in increasing the citability and credibility of the paper.

JEL Classification: G32, C12, G20

Received: 09.07.2021
Accepted: 17.12.2021
Published online: 21.12.2021

How to cite this paper: Alzubi, K., & Bani-Hani, A. (2021). Determinants of debt-to-equity and its impact on the performance of industrial companies listed on Amman Stock Exchange [Special issue]. Journal of Governance & Regulation, 10(4), 353–364. https://doi.org/10.22495/jgrv10i4siart15

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

Abstract

Many less fortunate people are struggling to pay for their medical expenses, as well as with the contributions they have to pay for their health insurance. People especially those who are living in lower-income countries end up suffering from both illnesses and debt when they get sick. This paper is a bibliometric review of 638 articles retrieved from the Scopus database on the subject of sustainable medical insurance, during the past 20 years, from 2000 to 2020. Scopus database was selected as it offers access to published research papers in high-quality journals relevant to the topic studied. Three research streams were further identified in this paper: health financing, health insurance, and global health. The bibliometric analyses provide insights in publication output concerning the growth of publication, most influential authors, keywords analysis, most influential sources, most cited documents, and publications output by countries. Our recommendation would be to design and develop pro-poor medical insurance, which will significantly help the less fortunate people, especially from the lower-income countries, which cannot pay it.

Keywords: Medical Insurance, Sustainability, Health Insurance, Health Financing, Bibliometric Analysis, VOSviewer, Scopus

Authors' individual contribution: Conceptualization —H.N. and H.Z.S.; Methodology — H.N. and H.Z.S.; Investigation — H.N. and H.Z.S.; Writing — Original Draft — L.S.A., F.Y.A.H., F.A., A.F.A., S.K.A., and H.A.A.; Writing — Review & Editing — H.N. and H.Z.S.; Supervision — H.N.

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

JEL Classification: G10, G15, G19, G32

Received: 22.06.2021
Accepted: 01.12.2021
Published online: 03.12.2021

How to cite this paper: Nobanee, H., Shanti, H. Z., Abukarsh, L. S., Al Hamadi, F. Y., Abdulaziz, F., Alqahtani, A, F., AlSubaey, S. K., & Almansoori, H. A. (2021). Sustainable medical insurance: A bibliometric review [Special issue]. Journal of Governance & Regulation, 10(4), 343–352. https://doi.org/10.22495/jgrv10i4siart14

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

Abstract

This paper aims to investigate the internal audit implementation in European and non-European public hospitals or public bodies. Researchers conducted a systematic literature review based on various fields and countries (European and non-European). Our results revealed differences between countries regarding the role and effectiveness of internal audit of public hospitals in each country. European countries need to address different challenges concerning internal audit in comparison to non-European countries. For instance, European public hospitals need to implement internal audit to develop their risk management practices. In contrast, the public hospitals of non-European countries need to address challenges and issues related to the high corruption rate, the lack of transparency and accountability, and the lack of competent staff. Upon completion, this systematic literature review provided some evidence for further research on the matter under investigation. While recognizing the limitations of our analysis, we believe we have significantly contributed to the evolution of the international and Greek literature concerning the implementation of internal audit in European and non-European countries.

Keywords: Internal Audit, Public Hospitals, European Countries, Non-European Countries

Authors' individual contribution: Conceptualization — A.I.R.; Software — A.I.R.; Validation — A.I.R.; Formal Analysis — A.I.R.; Investigation — A.I.R.; Resources — A.G.K.; Data Curation — A.G.K.; Writing — Original Draft — A.G.K.; Writing — Review & Editing — A.T.; Visualization — A.T.; Supervision — C.K.; Project Administration — C.K.; Funding Acquisition — C.K.

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

JEL Classification: M41, M42, H83

Received: 21.08.2021
Accepted: 30.11.2021
Published online: 02.12.2021

How to cite this paper: Rodakos, A. I., Koutoupis, A. G., Thysiadou, A., & Kampouris, C. (2021). A systematic literature review on the implementation of internal audit in European and non-European public hospitals [Special issue]. Journal of Governance & Regulation, 10(4), 336–342. https://doi.org/10.22495/jgrv10i4siart13

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

Abstract

The economic crisis in the EU had severe impacts not only on the performance of the domestic economy but also on the living standard for the citizens. The extended spread of this crisis resulted in limitation in the disposable income and significant negative changes have taken place with negative consequences for the corporate economic performance and competitiveness (de Jorge Moreno, Castillo, & de Zuani Masere, 2010). Within the dominance of certain conditions of economic crisis, there are a few firms that act as lighting exceptions. The present work makes an effort, to unveil the role of selected supermarket retail chain stores in the performance of certain macroeconomic parameters and therefore to illustrate the mechanism through which the restoration of the economy in Greece becomes feasible. More specifically, based on data derived by Eurostat and Greek National Statistics with the assistance of the findings of present analysis that validate a significant contribution of the firms studied to macroeconomic parameters such as national income or employment it may provide policymakers with knowledge tools to promote corporate efforts of this type and in sequence to lead the macroeconomic system in a trajectory of economic growth.

Keywords: Economic Crisis, Unemployment, Investments, Disposable Income

Authors' individual contribution: Conceptualization — N.Z. and E.Z.; Methodology — N.Z. and A.G.; Software — N.Z.; Validation — A.G.; Formal Analysis — A.G., S.G., and K.S.; Investigation — N.Z. and K.S.; Resources — N.Z. and S.G.; Data Curation — N.Z., E.Z., and S.G.; Writing — Original Draft — N.Z.; Writing — Review & Editing — E.Z.; Visualization — A.G., K.S., and S.G.; Supervision — E.Z.; Project Administration —N.Z., E.Z., A.G., K.S., and S.G.

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

JEL Classification: E21, E32, E52

Received: 12.08.2021
Accepted: 12.11.2021
Published online: 17.11.2021

How to cite this paper: Zisoudis, N., Zafeiriou, E., Garefalakis, A., Spinthiropoulos, K., & Garefalakis, S. (2021). The contribution of organized food retail to the Greek socio-economic development during the years of economic crisis [Special issue]. Journal of Governance & Regulation, 10(4), 326–335. https://doi.org/10.22495/jgrv10i4siart12

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

Abstract

This paper aims to give an overview and examine the effects of value-added tax (VAT) income as one of the main elements of fiscal policies on Albanian economic growth GDP (Demi, Hysa, & Nanaj, 2018), for the period 1999–2019, considering also the implementation of VAT legislation rules. The quantitative analysis methods are used in this study based on the wide range of theoretical and practical cases obtained from the literature to figure out the existing link between VAT as the explanatory variable and GDP as the explained variable. Based on empirical testing hypotheses on the importance of econometric models, the statistical information was selected by public institutions in Albania and the data is in the form of time series, often self-correlated from period to period. This feature was considered to avoid the consequences caused by autocorrelation and following the detection, the corrective measures were taken, in order for the statistical inference to be as objective as possible. Finally, this paper argues that VAT rules are considered a very important element for the Albanian economy, and the relevance of this study is to serve policymakers in drafting fiscal policies in the function of economic growth (GDP) in the future.

Keywords: Fiscal Policy, Economic Development, Government Policies and Regulation, Public, Economics, Business Taxes and Subsidies, Dynamic Model

Authors' individual contribution: Conceptualization — A.D.; Methodology — A.D. and S.X.; Formal Analysis — A.L., S.S., and S.U.; Writing — Original Draft — A.D., S.X., and A.L.; Writing — Review & Editing — S.S. and S.U.

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

Acknowledgements: The Authors acknowledge the role of the ISCBF 2021 Conference participants (University “Aleksandër Moisiu”, Albania), for insightful and very constructive comments.

JEL Classification: E62, F63, G28, H20, H25, K34

Received: 09.06.2021
Accepted: 03.11.2021
Published online: 05.11.2021

How to cite this paper: Demi, A., Xhaferri, S., Uku, S., Shahini, S., & Lushi, A. (2021). The impact of fiscal policies on Albanian economic growth: The case of value-added tax [Special issue]. Journal of Governance & Regulation, 10(4), 311–325. https://doi.org/10.22495/jgrv10i4siart11

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

Abstract

The purpose of this paper is to investigate the association between bank performance and audit committee characteristics for banks in Gulf Cooperation Council (GCC) over the period from 2013 to 2017. Regression of ordinary least squares quantile (OLS) and regression of quantile data are used to test the relationship between bank performance as a dependent variable and certain independent variables. The results revealed that committee size has a significant impact on banks' performance but the presence of women members, independent members, committee meetings, and the existence of qualified members do not. The current study is one of a few studies, which addresses the association between bank performance and audit committee characteristics for banks in GCC.

Keywords: Audit Committee Characteristics, Bank Performance, Non-Executive Committee Members, Committee Size, Committee Meetings, GCC Countries

Authors' individual contribution: Conceptualization — E.R.E.; Methodology — E.R.E.; Investigation — M.E.B.; Resources — E.R.E.; Writing — Original Draft — E.R.E.; Writing — Review & Editing — M.E.-B.; Supervision — M.E.B.; Funding — E.R.E., M.E.-B., and M.E.B.

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

JEL Classification: G30, M1, M2

Received: 28.12.2020
Accepted: 01.11.2021
Published online: 03.11.2021

How to cite this paper: Elbahar, E. R., El-Bannany, M., & El Baradie, M. (2021). Characteristics of audit committees and banking sector performance in GCC [Special issue]. Journal of Governance & Regulation, 10(4), 302–310. https://doi.org/10.22495/jgrv10i4siart10

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

Abstract

Short-termism (i.e., the sub-optimal favouring of short-term performance over long-term performance) is generally explained as an outcome of the agency relationship whereby self-interested managers and/or stock market pressures distort the balance between short and long-term performance. We investigate if short termism (Crilly, 2017; Reilly, Souder, & Ranucci, 2016) is due to cognitive bias (temporal distortion) rather than agency costs. We test these hypotheses with an experimental approach by applying a 3x2 factorial design to manipulate temporal distortion on 60 non-conflicted decision-makers. Results suggest that individuals make inconsistent investment decisions based on differing payout time horizons. Participants faced with simple comparisons between investment opportunities were consistent across different time periods and followed a model of rational decision-making. In contrast, more complex decisions led to intertemporal inconsistency. We provide evidence that: 1) individuals on the whole struggle to deal with incorporating time into business decisions in a consistent way causing us to question the link between short-termism and agency theory; 2) principals likely view investment decisions inconsistently across time and so are a cause of sub-optimal investment decision-making and 3) we need to look beyond studies of moral hazard associated with agency theory and/or myopic market pricing when investigating short-termism.

Keywords: Boards of Directors, Corporate Governance, Short-Termism, Board Process, Cognitive Bias

Authors' individual contribution: Conceptualization — G.N.; Methodology — A.B.M.A.; Formal Analysis — A.B.M.A. and M.B.M.A.; Investigation — A.B.M.A. and M.B.M.A.; Resources — A.B.M.A. and M.B.M.A.; Data Curation — M.B.M.A.; Writing — Original Draft — G.N.; Writing — Review & Editing — G.N.; Visualization — A.B.M.A.; Supervision — A.B.M.A.; Project Administration — A.B.M.A.

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

JEL Classification: C91, D25, D81, D91, G34, M14

Received: 19.07.2021
Accepted: 29.10.2021
Published online: 02.11.2021

How to cite this paper: Alzoubi, A. B. M., Nicholson, G., & Alzoubi, M. B. M. (2021). The effect of decision time horizon on short termism: An experimental approach [Special issue]. Journal of Governance & Regulation, 10(4), 293–301. https://doi.org/10.22495/jgrv10i4siart9

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

Abstract

Most research on strategic management concentrates on strategy formulation and implementation. Little research considers environmental scanning (ES) and how small, and medium manufacturing enterprises (SMMEs) scan their environments in preparation for strategy formulation and implementation (Nandonde, 2019). This study investigates the environmental scanning behaviour of SMME owners/managers in a volatile environment, Zimbabwe in particular. The study employed a qualitative methodology to accomplish its objectives. The recorded in-depth interviews were transcribed and analysed using ATLAS.ti. The findings reveal that SMMEs in Zimbabwe emphasise scanning the political and economic environments as they are the most unstable. The results also illustrate that environmental scanning is a continuous, informal, and less structured activity, often using cheap, personal, and highly informal sources of information. Therefore, the paper concludes that contrary to the demands of strategic management literature, the informal and sequential environmental scanning behaviours of SMMEs support the growth and development of the sector. The study explored environmental scanning in a single country, Zimbabwe; therefore, generalisability is limited. The study results must be interpreted in light of this limitation.

Keywords: Environmental Scanning, Information Sources, Macro-Environment, Small and Medium Manufacturing Enterprises, Scanning Mode, Zimbabwe

Authors' individual contribution: Conceptualization — M.M.; Methodology — M.M.; Investigation — M.M.; Resources — M.A.P. and M.C.; Data Curation — M.A.P. and M.C.; Writing — Original Draft — M.M., M.A.P., and M.C.; Writing — Review & Editing — M.M., M.A.P., and M.C.

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

Acknowledgements: We would like to thank all the manufacturing SMEs and the official from the Department of SMEs, business development section for participating in the survey. We also acknowledge the role of the Ministry of Women Affairs, Community, Small and Medium Enterprises, the Ministry of Industry, Commerce and Enterprise Development, and the University of KwaZulu-Natal, South Africa.

JEL Classification: M19, C12, M10

Received: 26.05.2021
Accepted: 28.10.2021
Published online: 01.11.2021

How to cite this paper: Mashingaidze, M., Phiri, M. A., & Chinakidzwa, M. (2021). Macro-environmental scanning practices of small and medium manufacturing enterprises: Evidence from emerging markets [Special issue]. Journal of Governance & Regulation, 10(4), 282–292. https://doi.org/10.22495/jgrv10i4siart8

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

Abstract

Much effort has been expended by the regulators in Jordan to enhance the code of corporate governance (CG); however, the effectiveness of CG mechanisms in monitoring management and enhancing the value of a firm is still a puzzle. This study aims to investigate the impact of CG and cash holdings (CH) on firm value as measured by the market-to-book ratio. The sample consists of all manufacturing firms listed on the Amman Stock Exchange (ASE) over the years 2010–2017. The study hypotheses were tested using panel regression analysis. The research findings suggest that CH have a positive association with firm value, supporting the transaction and precautionary motives for holding cash. An interesting finding is that board expertise was found to be negatively associated with firm value. Gender diversity was found to be positively related to firm value, while board size, independence, and frequency of meetings were found to be insignificant. It seems that firms in Jordan regard strong CG mechanisms to be expensive and of little value in mitigating the negative effects of a weak legal system. These findings shed new light on the influence (or the lack of it) of boards in Jordanian firms. Consequently, the study recommends that the regulatory agencies in Jordan should consider improving governance codes and Rules to increase the effectiveness of the board and governance in general.

Keywords: Cash Holdings, Governance, Firm Value, Board of Directors, Market-to-Book Ratio

Authors' individual contribution: Conceptualization — H.Z.J.; Methodology — H.Z.J. and A.A.A.; Formal Analysis — A.A.A.; Investigation — A.A.A.; Resources — H.Z.J. and S.A.A.; Writing — Original Draft — S.A.A.; Writing — Review & Editing — S.A.A.

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

JEL Classification: M40, M41, G30

Received: 14.07.2021
Accepted: 27.10.2021
Published online: 29.10.2021

How to cite this paper: Jaradat, H. Z., Alnaimi, A. A., & Alsmadi, S. A. (2021). The effect of cash holdings and corporate governance on firm value: Evidence from the Amman Stock Exchange [Special issue]. Journal of Governance & Regulation, 10(4), 272–281. https://doi.org/10.22495/jgrv10i4siart7

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

Abstract

This research explains judicial control as a form of governance in the face of arbitrary administrative decisions — the UAE is an example (Zwart, 2016). The aim of the study is to demonstrate how judicial control can contribute to achieving good governance of the administrative decisions in the absence of the legislative provisions related to the causes of cancellation of an administrative decision. The data were sourced from relevant books, journals, official texts, and courts decisions. The data obtained was analysed through descriptive and analytic methods. This paper is divided into three themes. The first tackles the incidents of abuse of power. The second demonstrates the ways in which abuses of power can be proved, and the third discusses the correlation between judicial control and good governance. The study found that the abuse of power is related to the discretionary power of the administration and that it is a latent defect related to the psychological intentions of the decision-maker and is difficult to prove, also that the administrative jurisdiction plays an important role in promoting the good governance. The study concluded that it is important for the UAE legislator to issue a law regulating the action for the annulment of administrative decisions.

Keywords: Good Governance, Discretionary Power, Judicial Control, Abuse of Power

Authors' individual contribution: Conceptualization — F.A.A. and T.M.S.; Methodology — F.A.A. and T.M.S.; Investigation — F.A.A. and T.M.S.; Resources — F.A.A. and T.M.S.; Visualization — F.A.A. and T.M.S.; Writing — Original Draft — F.A.A. and T.M.S.; Writing — Review & Editing — F.A.A. and T.M.S.; Supervision — F.A.A. and T.M.S.

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

Acknowledgements: The Authors would also extend their gratitude and appreciation to all who have helped carry out this research paper, and to all who have provided any facility to complete this work.

JEL Classification: K1, K14, K140

Received: 24.06.2021
Accepted: 25.10.2021
Published online: 28.10.2021

How to cite this paper: Alshawabkeh, F. A., & Shiyab, T. M. (2021). Judicial oversight as a form of governance in the face of administration arbitrariness in administrative decisions [Special issue]. Journal of Governance & Regulation, 10(4), 261–271. https://doi.org/10.22495/jgrv10i4siart6

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

Abstract

Research on whistleblowing has increased significantly in the last decades, and so has the number of laws governing whistleblowing. Whereas the EU recently enacted a Directive (Directive 2019/1937) protecting whistleblowers, the US has gone one step further long ago, not only protecting them but also offering substantial monetary rewards for their information. More countries are now adopting reward programs, while numerous recent instances of corporate wrongdoing suggest that the central promise of these programs: increasing detection and deterrence of wrongdoing, is highly needed not only in the US. These developments warrant a review on the optimal design of these programs, based on experience and available evidence, to obtain optimal deterrence and avoid policy mistakes. In this paper, we review the evidence for the effectiveness of the US whistleblower reward programs and consider some recent novelties. We also consider objections against these programs and local factors in the US that likely contribute to their success. Finally, we voice some concerns over the EU Directive's ability to achieve its policy objective of enhancing enforcement of Union law. We find that the evidence for the effectiveness of reward programs is significant, and that common concerns about these programs have not materialized. Whereas much of the prior literature has focused on their viability and effectiveness, further research would do well in focusing on how to effectively design these programs, what has driven their success, and what local national characteristics could hamper their effectiveness outside the US.

Keywords: Whistleblowers, Whistleblower Rewards, Corporate Wrongdoing

Authors' individual contribution: Conceptualization — T.N. and G.S.; Methodology — T.N. and G.S.; Writing — Original Draft — T.N. and G.S.; Writing — Review & Editing — T.N.; Supervision — G.S.

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

Acknowledgements: The Authors declare that there is no conflict of interest.

JEL Classification: K10, K20, K42

Received: 15.07.2021
Accepted: 22.10.2021
Published online: 26.10.2021

How to cite this paper: Nyreröd, T., & Spagnolo, G. (2021). A fresh look at whistleblower rewards [Special issue]. Journal of Governance & Regulation, 10(4), 248–260. https://doi.org/10.22495/jgrv10i4siart5

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

Abstract

Increasingly, people communicate and build networks using online social interaction. According to Packard and Bylund (2017), the advances in technology have influenced communication and processes in organizations leading to improved marketing communication and the introduction of innovations. There is also evidence of the growing use of social media among entrepreneurs (Nambisan, Wright, & Feldman, 2019; Olanrewaju, Hossain, Whiteside, & Mercieca, 2020). Despite this, little is known on how the adoption of online social interaction affects entrepreneurial opportunity evaluation. Thus, there is a need to access how this medium can be used to promote entrepreneurial activities. This empirical study used a mixed-method approach to find out if resource availability mediates the relationship between online social interaction and opportunity evaluation. It used a survey and in-depth interviews to collect data from young entrepreneurs in Ghana. A sample of 383 and 13 entrepreneurs was selected through simple random sampling technique and snowballing technique for quantitative and qualitative components respectively. SPSS was used to evaluate the quantitative data and analyzed with STATA. Nvivo was used for the qualitative data analysis. The study found that online social interaction via social media was not just a source for needed resources to help entrepreneurs in better evaluation of entrepreneurial opportunities but also used as a resource itself. This study is vital as it provides entrepreneurs with knowledge on where to obtain the resources needed to be able to evaluate potential opportunities.

Keywords: Online Social Interaction, Mediation, Social Capital, Opportunity Evaluation, Social Media, Resource Availability

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 research was funded with a bursary received from the University of South Africa.

JEL Classification: D80, D81, D83, D85, O30

Received: 15.06.2021
Accepted: 21.10.2021
Published online: 25.10.2021

How to cite this paper: Engmann, A. (2021). The effect of online social interaction on entrepreneurial opportunity evaluation: A mediation approach [Special issue]. Journal of Governance & Regulation, 10(4), 235–247. https://doi.org/10.22495/jgrv10i4siart4

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

Abstract

Employees represent the essential assets of any organization. The best organizations oversee human capital in the most efficient and effective way (Nethmini & Ismail, 2019). Blau (2017) highlighted the relevance between human resources management (HRM) practices and the employees' success at work through enhanced inspiration and commitment. Hence, employee commitment cannot be overlooked as the degree of employee commitment can decide employee performance (Ahmad, 2014). This paper aims to explore the significance of employee commitment as a mediator in the relationship between HRM practices and employee performance. The target population is employees in the construction industry in Jordan. The respondents were selected utilizing a simple random sampling method. The data was gathered through a self-administered questionnaire and analyzed utilizing structural equation modeling (SEM) in IBM SPSS AMOS 24.0. The researcher obtained an aggregate of 297 usable and completed questionnaires. The study found that: 1) HRM practices have significant effects on employee performance, 2) employee commitment has significant effects on employee performance, 3) HRM practices have significant effects on employee commitment, and more importantly, and 4) employee commitment partially mediates the relationship between HRM practices and employee performance. The implications of the study are also examined.

Keywords: HRM Practices, Employee Performance, Employee Commitment, Construction Firms, Jordan

Authors' individual contribution: Conceptualization — S.M.; Methodology — S.M. and A.S.B.; Investigation — A.S.B.; Writing — Original Draft — S.M., A.S.B., and N.A.; Writing — Review & Editing — S.M., A.S.B., and N.A.; Supervision — S.M.; Funding Acquisition — S.M., A.S.B., and N.A.

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

JEL Classification: L740, M210, M540, O150, O530

Received: 15.07.2021
Accepted: 20.10.2021
Published online: 22.10.2021

How to cite this paper: Mahfouz, S., Bahkia, A. S., & Alias, N. (2021). The impact of human resource management practices on employee performance and the mediating role of employee commitment [Special issue]. Journal of Governance & Regulation, 10(4), 222–234. https://doi.org/10.22495/jgrv10i4siart3

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

Abstract

The Ministry of Finance of China has proposed a new lease accounting model to the existing lease accounting standard that requires the capitalization of all operating leases as assets and liabilities. In this case study, the key effects of the application of a new accounting standard — Accounting Standard for Business Enterprises 21 (ASBE 21), on financial statements and financial ratios of listed companies in the Chinese air transport industry have been analyzed and investigated. Significant relative differences were found within the airline industry in China. Results indicated that the total assets and liabilities would increase due to the capitalization of operating leases, whereas the profitability of firms was expected to decrease. Furthermore, the coverage of firms would decline, but the leverage of these firms would be improved. Rather than China, prior studies have analyzed the firms in other countries, where different accounting principles are applied. Hence, this study can provide useful information for the investors, as well as other stakeholders that are interested in Chinese airline corporations, and help to complete the studies about different lease accounting standards applied in different countries.

Keywords: Finance Lease, Operating Lease, Financial Ratios

Authors' individual contribution: Conceptualization — M.J.R.; Methodology — M.J.R.; Software — Y.X.; Validation — Y.X.; Formal Analysis — Y.X.; Investigation — Y.X.; Resources — Y.X.; Data Curation — Y.X.; Writing — Y.X. and M.J.R.; Supervision — M.J.R.

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

JEL Classification: L93, M41, M48

Received: 08.02.2021
Accepted: 19.10.2021
Published online: 21.10.2021

How to cite this paper: Xu, Y., & Rahman, M. J. (2021). Effects of applying the new ASBE 21 Leases on the financial statements: Evidence from China [Special issue]. Journal of Governance & Regulation, 10(4), 212–221. https://doi.org/10.22495/jgrv10i4siart2

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

Abstract

The 2007 to 2009 global financial crisis significantly affected the funding structures of banks, especially internationally active ones (Gambacorta, Schiaffi, & Van Rixtel, 2017). This paper examines the impact of liquidity regulations, in particular, the liquidity coverage ratio (LCR), on funding structures of commercial banks operating in emerging markets over the period 2011 to 2016. Similar to Behn, Daminato, and Salleo (2019) who developed a dynamic partial equilibrium model to examine capital and liquidity adjustments, this paper develops three dynamic error component adjustment models and estimates them using the two-step system generalized method of moments (GMM) estimator to analyze funding adjustments adopted by banks in emerging markets in response to the LCR requirement. The results revealed that banks in emerging markets responded to binding liquidity regulations by increasing deposit, equity as well as long-term funding. In terms of the magnitude of response, deposit funding was found to be more responsive to the LCR rule while the elasticity of equity and long-term funding to the LCR specification was found to be weak. The weak response of equity and long-term funding to liquidity standards was attributed to low levels of capital market development in emerging markets (Bonner, van Lelyveld, & Zymek, 2015). By and large, the results suggest that Basel III liquidity regulations have been effective in persuading banks in emerging market economies to fund their business activities with stable funding instruments. Based on this evidence, the study supports the adoption of Basel III liquidity regulations in emerging markets. Moreover, policymakers in emerging market economies should monitor competition for retail deposits to safeguard the benefits of the LCR rule and pay more attention to developing capital markets.

Keywords: Basel III, Liquidity Coverage Ratio, Funding Structures, Emerging Markets, System GMM

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.

JEL Classification: G11, G18, G19, G21, G28

Received: 11.04.2021
Accepted: 18.10.2021
Published online: 20.10.2021

How to cite this paper: Mashamba, T. (2021). Liquidity regulations and bank behavior: An emerging markets perspective [Special issue]. Journal of Governance & Regulation, 10(4), 194–211. https://doi.org/10.22495/jgrv10i4siart1

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 October 18, 2021.

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

How to cite: Hundal, S. (2021). Editorial: New horizons and developments in the field of corporate governance, regulatory imperatives, and control mechanisms in the emerging countries. Journal of Governance and Regulation, 10(4), 4–6. https://doi.org/10.22495/jgrv10i4editorial

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Abstract

Major technological changes, the development of management, and its functions have influenced companies to launch more and more innovative products and services every day, even if these are inventions or improvements in their specific products or services. Innovation is a difficult process, but very valuable and effective for achieving the intended results. Knowing that Kosovo has had a difficult history in the recent past, from this paper we can see that there has been a pretty good technological development and an increase in knowledge by managing quite well the knowledge that has served in the establishment level of service and production, attracting foreign investors, and thus influencing a better economic development thanks to innovations from the above factors. This study examines all types of innovation whether they are product or process and service including their forms which are incremental or marginal innovations and any other form related to innovation and in any form that has influenced or is expected to positively affect the performance of the organization. These conclusions could also be used for the purposes of any business plan analysis for opening a new business or expanding an existing business, comparing search results with current ones and new business expectations. Very little research has been done on the impact of innovation on the growth of firms in Kosovo, but this paper shows concretely this impact by understanding them closely through interviews conducted with firms.

Keywords: Innovation, Impact, Kosovo, Enterprise, Growth, Technology, Development, Employment

Authors' individual contribution: Conceptualization — V.S., S.B., and P.D.; Methodology — V.S. and P.D.; Resources — V.S., S.B., and P.D.; Writing — Original Draft — V.S., S.B., and P.D.; Writing — Review & Editing — V.S., S.B., and P.D.; Visualization — V.S. and P.D.; Funding Acquisition — V.S., S.B., and P.D.

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

JEL Classification: I240, I260, L260

Received: 26.04.2021
Accepted: 29.09.2021
Published online: 01.10.2021

How to cite this paper: Shala, V., Bytyçi, S., & Dodaj, P. (2021). The role of innovation in the growth of the company: A case of the emerging country. Journal of Governance & Regulation, 10(4), 175–182. https://doi.org/10.22495/jgrv10i4art16

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

Abstract

This study aims to explore the effect of intrinsic and extrinsic motivation on business school students' aspirations to become entrepreneurial managers in the future and whether the gender of their university instructor affects such a relationship. Gender equivalence proved to devour an instructive advantage over students (Aragonés-González, Rosser-Limiñana, & Gil-González, 2020), in addition to the idea that gender competence is a key element in the educational field (Palmén et al., 2020). The hypothesized paradigm is tested through multiple regression and univariate tests based on the responses of 321 Jordanian university students who finished entrepreneurship courses to pursue nexuses between the endogenous and exogenous variables. Results indicated that both intrinsic and extrinsic motivations affect students' aspirations to become entrepreneurial managers in the future in favor of their role models. Additionally, both intrinsic and extrinsic motivations are affected by female instructors. However, male instructors only inspired the intrinsic motivation of the students. As female academic instructors face challenges attributed to gender bias, especially in the Arab and Middle Eastern countries, the results of the study hope to help change the discerning negative perceptions of female instructors in Jordanian and Arab universities. Such problems in gender inspiration affect the prospect of the outcomes required and may have an indirect effect on the educational field in general. The study recommends focusing more on the effect of motivation and innovation efficiency based on gender type in addition to converging entrepreneurship educational research due to the COVID-19 pandemic (Ratten & Jones, 2021).

Keywords: Motivation, Entrepreneurship, Education and Gender, Teacher Quality, Educational Outcomes

Authors' individual contribution: Conceptualization — M.E.H. and A.F.S.; Methodology — M.E.H. and A.F.S.; Investigation — M.E.H., A.F.S., and B.K.M.; Writing — Original Draft — M.E.H., A.F.S., and B.K.M.; Writing — Review & Editing — M.E.H. and A.F.S.; Supervision — M.E.H.

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

JEL Classification: I240, I260, L260

Received: 22.06.2021
Accepted: 24.09.2021
Published online: 29.09.2021

How to cite this paper: Hamdallah, M. E., Srouji, A. F., & Mahadin, K. (2021). Intrinsic and extrinsic motivations on business school students' aspirations: The gender role models perspective. Journal of Governance & Regulation, 10(4), 164–174. https://doi.org/10.22495/jgrv10i4art15

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

Abstract

Islamic philanthropy or zakat has a mission to poverty alleviation and improve welfare for zakat recipients (Fitri, 2017), especially for the poor and affected by natural disasters. This study aims to determine the distribution model and use of productive zakat and to determine the effectiveness of productive zakat in improving welfare after natural disasters in Indonesia. This study uses qualitative methods with the theoretical development of field research. Data collection was carried out through interviews and in-depth observations from national zakat management organizations in Indonesia, including The National Board of Zakat of Republic Indonesia (BAZNAS), The Department of Amil Zakat, Infaq and Alms of Nahdlatul Ulama (NU-Care LAZISNU) The Department of Amil Zakat, Infaq and Alms Muhammadiyah (LAZISMU), as well as communities receiving productive zakat programs. The results of this study indicate that the model of productive zakat distribution by zakat institutions in Indonesia uses two approaches, namely through direct business capital assistance and through proposals addressed to victims of natural disasters. They use zakat for starting businesses or developing businesses that are already owned by the recipient of productive zakat funds. In sum, productive zakat helps the economy of people who receive productive zakat recipients but it is still not effective for their welfare. Therefore, to increase the maximum role of zakat institutions in distributing productive zakat, synergies are needed between zakat institutions, partners (universities, volunteers, business consultants, etc.), and Islamic insurance.

Keywords: Islamic Philanthropy, Productive Zakat, Economic Recovery, Welfare, Recovery Disasters, Effectivity Distribution, Islamic Insurance

Authors' individual contribution: Conceptualization — A.Z.A.; Methodology — N.A.; Resources — N.A. and A.Z.A.; Writing — Original Draft — A.Z.A.; Writing — Review & Editing — A.Z.A.; Visualization — A.Z.A.; Funding Acquisition — N.A. and A.Z.A.

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

Acknowledgements: The researchers would like to thank the Research Institute of the Islamic University of Nahdlatul Ulama Jepara, Indonesia, which funded this research in 2019.

JEL Classification: I38, I31, O31

Received: 05.07.2021
Accepted: 20.09.2021
Published online: 23.09.2021

How to cite this paper: Arifin, N., & Anwar, A. Z. (2021). The improvement model of microenterprises of post-disaster through empowerment of productive zakat. Journal of Governance & Regulation, 10(4), 156–163. https://doi.org/10.22495/jgrv10i4art14

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

Abstract

This study examines the impact of corporate governance mechanisms on a firm's cost of equity. The corporate governance mechanisms examined consist of board size, board independence, CEO duality, multiple directorships held by board members, and board political influence. To accomplish the study objective, 210 firm-year observations for manufacturing companies listed on Amman Stock Exchange (ASE) in the period 2014–2018 are analyzed using panel data analysis techniques. The results of the fixed effects regression model reveal that CEO duality and board political influence negatively affect the cost of equity, while there is no significant effect of board size, board independence, and multiple directorships on the cost of equity. The results suggest that firms' board of directors is an important factor in mitigating the agency problem suggested by Jensen and Meckling (1976). They also suggest that information risk is priced, which is consistent with previous research such as Easley, Hvidkjaer, and O'Hara (2002), and that the board of directors plays a role in reducing that risk in capital markets.

Keywords: Corporate Governance, Board of Directors, Cost of Equity, Jordan

Authors' individual contribution: Conceptualization — M.A.O. and K.A.A.D.; Methodology — M.A.O., K.A.A.D., and Z.M.Z.; Validation — M.A.O., K.A.A.D., and Z.M.Z.; Formal Analysis — M.A.O., K.A.A.D., and Z.M.Z.; Data Curation — M.A.O., K.A.A.D., and Z.M.Z.; Writing — Original Draft — M.A.O., K.A.A.D., and Z.M.Z.; Writing —Review & Editing — M.A.O., K.A.A.D., and Z.M.Z.

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

JEL Classification: E22, M41, M48

Received: 09.06.2021
Accepted: 16.09.2021
Published online: 20.09.2021

How to cite this paper: Odat, M. A., Al Daoud, K. A., & Zurigat, Z. M. (2021). Corporate governance and the cost of equity: Evidence from the developing country. Journal of Governance & Regulation, 10(4), 144–155. https://doi.org/10.22495/jgrv10i4art13

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

Abstract

This research aims to gauge the effect of cash holdings on Jordanian companies' value and to detect whether there is a non-linear association between them. By conducting a multivariate regression on 86 non-financial companies listed on Amman Stock Exchange (ASE) during the period from 2006 to 2017. The results of the research reveal that there is a significantly positive association between cash holdings and firm value. The study also shows the positive impacts of financial leverage and revenues growth on firm value, while the results show that a size of a company has a negative effect on a value of a company. Moreover, the study notices that there is no optimal level to reserve some cash in order to increase firm value in Jordan. The methodology of the study depends on the work of Martínez-Sola, García-Teruel, and Martínez-Solano (2013) and Nguyen, Nguyen, and Le (2016). This research documents a substantial contribution to the existing research works that investigate the association between cash holdings and firm value in an emerging market like Jordan. Moreover, the findings are recognized to be an interest to policymakers, scholars, and potential investors.

Keywords: Amman Stock Exchange, Cash Holdings, Firm Value, Non Financial Companies, Jordan

Authors' individual contribution: Conceptualization — A.H. and T.A.; Methodology — A.H., T.A., and M.I.; Software — A.H. and M.I.; Validation — A.A.; Formal Analysis — A.H., T.A., and M.I.; Investigation — A.H., M.I., and A.A.; Resources — A.H. and A.A.; Data Curation — A.H. and A.A.; Writing — Original Draft — A.H. and T.A.; Writing — Revision & Editing — A.H., T.A., M.I., and A.A.; Visualization — A.H. and M.I.; Supervision — T.A. and A.A.; Project Administration — T.A. and A.A.; Funding Acquisition — A.H., T.A., M.I., and A.A.

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

JEL Classification: G30, G32

Received: 12.06.2021
Accepted: 15.09.2021
Published online: 17.09.2021

How to cite this paper: Hamad, A., Alzoubi, T., Iskandrani, M., & Alhadidi, A. (2021). A non-linear relationship between cash holdings and firm value: Study of companies in the emerging economy. Journal of Governance & Regulation, 10(4), 137–143. https://doi.org/10.22495/jgrv10i4art12

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

Abstract

The main purpose of this study is to analyze the effects of fiscal policy on economic growth in the Republic of Kosovo for the time period from January 2006 to September 2018 in terms of their long-term and short-term relationships. The methods used are measured using the second data (monthly series) provided by the Department of Finance as the appropriate national institution. Kosovo as one of the Balkan countries is facing the same problems as other labor countries. This study will contribute greatly to analyzing the impact of fiscal policy and will help policymakers come up with good decision-making. The econometric vector autoregression (VAR) model used in this study uses total public expenditure, total public income, fixed income structure, and consumer price index as independent variables and gross domestic product (GDP) as a dependent variable. In addition, in order of consistency time-series data were evaluated by the augmented Dickey-Fuller unit root test. The study concludes that total public expenditure significantly affects GDP; on the other hand, the total public income has a positive but visible impact on GDP, which means that the impact of government investment is more pronounced on financial development compared to public revenue; and increased demand for co-operation has decreased in monetary terms (World Bank, 2021). It is possible that government spending and structure may be related to key development quality ideas, such as the segregation of wages and environmental support (Halkos & Paizanos, 2015).

Keywords: Fiscal Policy, Economic Growth, Direct Taxes, Indirect Taxes, VAR Model, Granger Causality Test

Authors' individual contribution: Conceptualization — B.H. and P.M.; Methodology — B.H.; Formal Analysis — B.H.; Writing — Original Draft — B.H.; Writing — Review & Editing — B.H. and P.M.

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

JEL Classification: E60, E61, E62

Received: 28.05.2021
Accepted: 13.09.2021
Published online: 15.09.2021

How to cite this paper: Hamza, B., & Milo, P. (2021). Fiscal policy and economic growth: Some evidence from Kosovo. Journal of Governance & Regulation, 10(4), 130–136. https://doi.org/10.22495/jgrv10i4art11

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

Abstract

Egyptian investors have lost a large portion of their investment due to the coronavirus pandemic. This research is novel research that aims to identify the behavioral factors of Egyptian investors that affect their investment decisions, before and after the pandemic. A number of survey questionnaires were distributed to Egyptian investors, in addition to personal interviews. Descriptive statistics and a regression model were used to analyzing the impact of psychological factors on the investment decisions for Egyptian investors. Results revealed that demographic and psychological factors influence investment decisions: overconfidence, loss, and regret aversion, disposition effect, representativeness and herding behavior, but it is not affected by gambler's fallacy. It is affected also by some other demographic variables. However, income level has no effect. After the pandemic, not all demographic and psychological factors affect Egyptian investor's behaviour. The behaviour finance theory is valid only and applied before the pandemic. This research opens the door for a new dimension to studying how to work on the governance of investors' decisions, rationalizing those decisions and their effectiveness, which ultimately contributes to achieving high returns on their investment portfolios.

Keywords: Behavioural Finance, Investors' Governance, Emerging Markets

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.

JEL Classification: G40, G010, G11

Received: 16.06.2021
Accepted: 10.09.2021
Published online: 14.09.2021

How to cite this paper: Hafez, H. M. (2021). Investigating the psychological factors that affect Egyptian investors' behaviour and decisions before and after the pandemic. Journal of Governance & Regulation, 10(4), 113–129. https://doi.org/10.22495/jgrv10i4art10

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

Abstract

As governments in different parts of the world seek solutions to the public health emergency created by the COVID-19 pandemic and the impacts on corporate enterprises, different steering committees are constituted to implement measures aimed at containing the spread of the disease. Information that has the potential to impact materially on companies' securities when made public is shared among committee members in the course of their deliberations. That realization informs the purpose of this paper which is to explore through doctrinal research method the law on insider trading in South Africa in such a manner as would reaffirm the position of the law on insider, inside information, and the prohibited conducts. The findings indicate a propensity by those entrusted with business information to leverage such information for personal benefits which creates a problem of uncertainties on the integrity of the securities market. The paper concludes by advocating the application of the law in such a manner as would ensure that the conduct of persons entrusted with inside information is guided by the legal threshold on insider trading.

Keywords: COVID-19, Public Health Emergency, Insider, Inside Information, Company, Securities

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.

JEL Classification: H51, L51, O16, P46

Received: 07.05.2021
Accepted: 09.09.2021
Published online: 13.09.2021

How to cite this paper: Nwafor, A. O. (2021). Public health emergency and insider trading in the corporate sector. Journal of Governance & Regulation, 10(4), 104–112. https://doi.org/10.22495/jgrv10i4art9

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

Abstract

This paper aims to investigate the board of directors' (BD) effectiveness in enhancing compliance with regulations in the Saudi context. In particular, it explores whether there is an impact of the board of directors (size, independence, frequency of meeting and CEO serving on board) on the value of fines imposed by the Saudi Capital Market Authority (CMA) during the period from 2010 to 2017. In total 728 year observations were collected and analyzed. Multiple linear regression is performed to examine the association between the value of fines imposed by CMA and companies' board of directors attributes. The results show that the CEO is serving on board, and ownership concentration significantly impacts the value of the fines imposed by the CMA. These results suggest that power distance could influence the function and effectiveness of the board of directors in compliance with official regulations. This paper provides implications to regulators interested in fostering compliance with regulations in emerging capital markets. The findings can also help investors to enhance their corporate governance practices.

Keywords: Corporate Governance, Board of Directors, Regulations, Fines, Capital Market

Authors' individual contribution: Conceptualization — A.A.A. and T.A.; Methodology — A.A.A. and T.A.; Formal Analysis — A.A.A. and T.A.; Investigation — A.A.A and T.A.; Data Curation — A.A.A.; Writing — Original Draft — A.A.A.; Writing — Review & Editing — T.A.; Supervision — A.A.A.

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

JEL Classification: M40, M41, M48, M49

Received: 21.02.2021
Accepted: 08.09.2021
Published online: 10.09.2021

How to cite this paper: Alnodel, A. A., & Azid, T. (2021). The impact of the board of directors characteristics on regulation compliance: An evaluation of the board of directors' effectiveness. Journal of Governance & Regulation, 10(4), 93–103. https://doi.org/10.22495/jgrv10i4art8

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

Abstract

The family firm literature has found that 73% of empirical studies focus on American and European family firms (De Massis, Sharma, Chua, & Chrisman, 2012). De Massis et al. (2012) propose investigating family firms with contextual nuances of family firms in under-represented areas such as Asia. In addition, study on family firms related to tax aggressiveness activities is limited and the mixed results. Therefore, this study aims to explain the effect of family ownership on corporate tax aggressiveness. This study also investigates whether independent commissioners influence the practice of tax aggressiveness by family firms. The study observed 220 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2015. We found that family ownership has a negative effect on tax aggressiveness. We also found that independent commissioners reinforce the negative influence of family ownership with tax aggressiveness. Our study contributes to the family firm literature in developing countries, particularly in terms of tax aggressiveness. We also provide practical implications for management to consider independent commissioners to provide adequate supervisors and advisors regarding family firm tax strategies.

Keywords: Tax Aggressiveness, Family Ownership, Family Firm, Independent Commissioners, Indonesia

Authors' individual contribution: Conceptualisation — N.H., R., B.B., and D.S.; Methodology — N.H.; Formal Analysis — N.H.; Writing — Original Draft — N.H.; Writing — Review & Editing — N.H., R., B.B., and D.S.

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

JEL Classification: M0, M4, M410, M120

Received: 16.06.2021
Accepted: 07.09.2021
Published online: 09.09.2021

How to cite this paper: Herawati, N., Rahmawati, Bandi, B., & Setiawan, D. (2021). Family ownership and corporate tax aggressiveness: The moderating effect of independent commissioner. Journal of Governance & Regulation, 10(4), 84–92. https://doi.org/10.22495/jgrv10i4art7

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

Abstract

The presence of principal-agent problems in publicly owned enterprises is highlighted by many scholars. Unfortunately, such problems are present in publicly owned enterprises (POEs) in Kosovo too. Capture, rent-seeking, moral hazard, information asymmetry, and adverse selection are some of the agency problems that POEs in Kosovo are facing, negatively impacting their performance and citizens' welfare. Recently, one of the POEs that used to be the most profitable is on the verge of bankruptcy with bank accounts blocked. This paper aims to explore the relevance of principal-agent problems in the governance of publicly owned enterprises and the failure of the shareholder to play its role and pursue the best interest of POEs. The paper also questions the applicability of the principal-agent model in POEs when the shareholder fails to play its role as a principal by concluding that the lack of “real” principal in publicly owned enterprises undermines the applicability of principal-agent theory and there is a need to make the Government more responsible by taking some measures such as the inclusion of private sector as a shareholder. The paper concludes that the Government must act as a responsible shareholder and exercise its role properly while also raises the opportunity of the inclusion of the private sector as minority shareholders in POEs, which may help in increasing the responsibility of the shareholder in the oversight of the management of POEs. Conclusions of the paper may be relevant for further studies regarding the corporate governance and structure of publicly owned enterprises from the perspective of the agency theory and hence exploring possibilities of reducing principal-agent problems in POEs.

Keywords: Publicly Owned Enterprises, Agency Problems, Principal, Agent, Legal, Performance, Shareholder, Failure

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 research was finalised during the visit of the author as a Fulbright scholar at the University of Iowa, Faculty of Law. The author thanks Fulbright and the University of Iowa for enabling the use of the library of the University of Iowa.

JEL Classification: H4, K2, P2

Received: 03.06.2021
Accepted: 06.09.2021
Published online: 08.09.2021

How to cite this paper: Zejnullahu, N. (2021). Principal-agent problems in publicly owned enterprises: The failure of the shareholder. Journal of Governance & Regulation, 10(4), 70–83. https://doi.org/10.22495/jgrv10i4art6

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

Abstract

South African state-owned enterprises (SOEs) form a critical cog in the state machinery. The significance of sound corporate governance has become more pronounced as citizens demand more accountability and value in the use of public resources (Vicente, 2020). The paper utilised a qualitative desktop approach, a case study design and thematic analysis to investigate board and executive management practices in the North West Development Corporation (NWDC) corporate governance, factors hindering good corporate governance and lastly recommendations that can be offered to enhance good corporate governance. The NWDC is a regional development finance institution in South Africa, which over the years has continued to implement adverse audit outcomes (AGSA, 2019b). The thematic analysis findings revealed a direct relationship between lack of consequence management and the state of poor corporate governance in the NWDC. The lack of ethical leadership lies at the heart of this morass of SOEs in general. The study, therefore, recommends the full implementation of the existing legislative framework, the Codes on Good Governance and the anti-corruption national strategy in order to inculcate accountability in the South African public agencies that include the NWDC. The paper is relevant in addressing the Auditor-General qualified audits, which underlines the ineffectiveness of the existing SOE governance system by not inherently correlating corporate success with the presence of deeper corporate governance standards and ethical behaviour.

Keywords: Good Governance, Corporate Governance, Accountability, Ethical Leadership, State-Owned Enterprises

Authors' individual contribution: Conceptualization — M.K. and A.M.; Methodology — M.K. and A.M.; Formal Analysis — M.K. and A.M.; Investigation — M.K. and A.M.; Resources — M.K. and A.M.; Writing — M.K. and A.M.

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

JEL Classification: H1, H6, K0

Received: 02.05.2021
Accepted: 03.09.2021
Published online: 06.09.2021

How to cite this paper: Khumalo, M., & Mazenda, A. (2021). An assessment of corporate governance implementation in state-owned enterprises of the emerging economy. Journal of Governance & Regulation, 10(4), 59–69. https://doi.org/10.22495/jgrv10i4art5

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

Abstract

This study explores the impact of corporate governance mechanisms (CGMs) of compliance with Indian Accounting Standards (Ind-AS). A sample of 70 firms listed on Bombay Stock Exchange (BSE) over a period of two years from 2016–2017 to 2017–2018 was used. The results revealed that board independence, size, expertise, size of the audit committee, expertise and independence exhibit a significant influence on compliance with Ind-AS. However, no significant effect was found regarding the board and audit committee diligence, foreign ownership and audit quality by Big-Four. The current study fills an existing gap in compliance of accounting standards and corporate governance literature in the context of the emergent market. It uses a methodology of comprehensive compliance index to evaluate the level of disclosure of Ind-AS that could generalize the results and benefit other listed firms. Finally, as a practical contribution, the present study brings useful insights and empirical evidence which are very beneficial and are of significant importance to investors, practitioners, academicians and policymakers. It is considered as one of the pioneering studies in this context and a battery for further research. The study recommends that more prominence should be given to compliance with Ind-AS and an overseeing body for compliance with Ind-AS should be created.

Keywords: Compliance with Ind-AS, Board Attributes, Audit Committee Characteristics, Audit Quality, Foreign Ownership

Authors' individual contribution: Conceptualization — F.A.A. and W.M.A; Methodology — F.A.A. and W.M.A; Formal Analysis — F.A.A. and W.M.A; Investigation — N.M. and M.I.T.; Resources — N.M. and M.I.T.; Writing — F.A.A., W.M.A., N.M., and M.I.T.; Supervision — F.A.A.

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

JEL Classification: M4, G64, G38,O16

Received: 07.06.2021
Accepted: 01.09.2021
Published online: 03.09.2021

How to cite this paper: Almaqtari, F. A., Al-Ahdal, W. M., Mishra, N., & Tabash, M. I. (2021). The effect of corporate governance on compliance with Indian Accounting Standards: An empirical analysis of post IFRS convergence. Journal of Governance & Regulation, 10(4), 40–58. https://doi.org/10.22495/jgrv10i4art4

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

Abstract

Most E-commerce transactions nowadays are electronically executed via well-known internet websites (Amazon, Alibaba, eBay, and others). Online sales in the Middle East, including Jordan, are estimated to count 2% of the overall retail sales, that is too much lower than the 15% in developed markets (Mehta & Bhandari, n.d.); and online sales in Jordan are still limited (Statista, 2020). Therefore, this study comes to determine the threats limiting E commerce in Jordan. The services sector accounts for about two thirds of the Jordanian economy and the insurance sector is considered an important component of it (Ghazal, 2015). The problem is to what extent threats from risks accompanied with E-commerce limit it from the viewpoint of Jordanian insurance companies' employees. Five (5) insurance companies out of twenty-five (25) are randomly selected for analysis and a questionnaire is conducted according to a psychometric method for data collection. The results show that perceived ease of use, perceived usefulness, and perceived risk with products/services are the main effective factors for predicting transaction loss, while delay time is significantly affected by perceived ease of use and perceived risk with product/service. Policymakers can rely on the results of this study to avoid the risks facing online shopping in Jordan and enhancing it. This study contributes to the literature by reducing the dearth of previous research regarding the determinants of threats and risks limiting online shopping and E-commerce in emerging markets.

Keywords: E-commerce, Insurance Companies, Perceived Risk, Transaction Loss, Perceived Usefulness, Jordan

Authors' individual contribution: Conceptualization — W.A.S. and M.E.; Methodology — M.A.S. and M.E.; Formal Analysis — W.A.S. and M.E.; Resources — M.E.; Writing — Original Draft — M.E.; Writing — Review & Editing — W.A.S.; Supervision — W.A.S.; Project Administration — W.A.S.

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

JEL Classification: G22, G32, G52, M31

Received: 04.06.2021
Accepted: 31.08.2021
Published online: 02.09.2021

How to cite this paper: Al Salamat, W., & Elian, M. (2021). The impact of risks in limiting E-commerce. Journal of Governance & Regulation, 10(4), 27–39. https://doi.org/10.22495/jgrv10i4art3

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

Abstract

Local, district, and metropolitan municipalities as spheres of government should deploy a highly competent and professional management corps to address complex integrated development planning demands, local service delivery issues, and various governance-related dynamics (Polo & Kantola, 2019). However, official oversight, performance reports, and media scrutiny regularly reveal that the current South African situation fails to meet these requirements. Corruption, maladministration, political factionalism, and managerial incompetence have led to violent public protests (SACN, 2016). This paper assesses the current competency profile of senior managers in the South African local government sector, focusing on their integrated development planning responsibilities. The methodology followed a qualitative design involving an intensive literature review on international management competency models, document analyses to assess official statutory and regulatory prescriptions for senior managers, and semi-structured interviews with senior managers in sampled municipalities. The study established that most challenges faced by municipalities stem from a lack of senior management competency. Recommendations are made to address the current competency deficit.

Keywords: Competency, Competency Profile, Senior Managers, Local Government Sector, South African Municipalities

Authors' individual contribution: Conceptualization — G.v.d.W., D.J.F, and G.v.D.; Methodology — G.v.d.W. and G.v.D.; Formal Analysis — G.v.d.W., D.J.F., and G.v.D.; Writing — Original Draft — G.v.d.W.; Writing — Review & Editing — G.v.d.W., D.J.F., and G.v.D.; Supervision — D.J.F.

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

JEL Classification: M5, R5, Y9

Received: 11.05.2021
Accepted: 30.08.2021
Published online: 31.08.2021

How to cite this paper: van der Waldt, G., Fourie, D. J., & van Dijk, G. (2021). Senior manager competency profiling: The case of local government sector in the emerging country. Journal of Governance & Regulation, 10(4), 15–26. https://doi.org/10.22495/jgrv10i4art2

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

Abstract

Corporate social responsibility (CSR) raised the attention of the MENA market, given its capacity to influence consumers' purchase intention and, particularly, consumers' repurchase intention. Therefore, CSR helps to build a long-term relationship between the companies with its consumers. Following this new trend, our work contributes to the understanding of how CSR contributes to a long-term relationship with consumers. To achieve that, we considered the four dimensions of CSR (philanthropic, legal, organisation, and ethics) and used those constructs to evaluate the consumers' relationship intention with companies. Our research was performed in MENA countries by interviewing 1632 consumers. Our findings showed that the philanthropic, legal, and ethical dimensions played a relevant role in determining a long-term relationship between the companies and consumers. This research results differ from the results gained by other researchers in previous studies. Therefore, to establish a long-term relationship with consumers, MENA countries' companies should focus on philanthropy, legal, and ethics. This study extends, as well as contributes to the extant corporate social responsibility literature by offering new evidence on the impact of corporate social responsibility on consumer relationship intention. The findings will help regulators and policy-makers in evaluating the adequacy of the current corporate social responsibility reforms to prevent management misconduct and scandals.

Keywords: Corporate Social Responsibility, MENA Countries, Philanthropy, Legal, Ethics, Relationship Intention

Authors' individual contribution: Conceptualization — A.A. and T.A.-A.; Methodology — A.A. and R.A.A.; Formal Analysis — A.A. and R.A.A.; Investigation — T.A.-A., G.D., and R.A.A.; Resources — T.A.-A. and G.D.; Writing — Original Draft — A.A.; Writing — Review & Editing — G.D. and R.A.A.

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

JEL Classification: M480

Received: 24.02.2021
Accepted: 27.08.2021
Published online: 30.08.2021

How to cite this paper: AlHares, A., Abu Asi, T., Dominic, G., & Al Abed, R. (2021). The impact of corporate social responsibility on consumer's relationship intention: Evidence from MENA countries. Journal of Governance & Regulation, 10(4), 8–14. https://doi.org/10.22495/jgrv10i4art1

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 August 27, 2021.

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

How to cite: Ismail, T. H. (2021). Editorial: Corporate governance and regulation: Further evidence on the ongoing developments. Journal of Governance and Regulation, 10(3), 4-6. https://doi.org/10.22495/jgrv10i3editorial

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

Abstract

Effective corporate board supervision might be a viable solution to the agency problem of excessive cash holdings (Fama & Jensen, 1983). Thus, this study aims to examine how the participation of women on corporate boards affects cash management. The study looks at how the size of a company affects the relationship between female board members and cash holdings, especially at high and low cash holding levels. A total of 373 publicly-listed companies in seven industries from 2008 to 2017 were chosen as research samples using purposeful sampling. Furthermore, static panel data processing was also used. The results showed that women on boards had a favorable and important impact. This study discovered a positive and significant WOB (women on board) coefficient, implying that companies with women on board had relatively more cash on hand. This result supports the trade-off and gender role theory predictions. However, the relationship between firm size and cash keeping is negative, but insignificant for all models. Different impacts were discovered by separating a sub-sample of companies with high and low cash holding rates. Women on the board of companies with large cash holding have a significant negative effect on cash holding. The partnership between women on boards and cash holding yielded negligible results. These findings have implications for regulators and corporate decision-makers in terms of board gender equality.

Keywords: Cash Management, Women on Board, Firm Size, Cash Holding

Authors' individual contribution: Conceptualization — M.; Methodology — M., Y.U., and Y.A.Y.; Investigation — M., Y.U., and Y.A.Y.; Resources — Y.U. and Y.A.Y.; Data Curation — Y.U. and Y.A.Y.; Writing — Original Draft — M.; Writing — Review & Editing — Y.U. and Y.A.Y.; Supervision — M.; Project Administration — M.; Funding Acquisition — M. and Y.U.

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

Acknowledgements: This research was financially supported by the Faculty of Economics and Business, Mulawarman University (contract No. 034/UN/2021).

JEL Classification: G30, G31, G32, G34

Received: 12.06.2021
Accepted: 18.08.2021
Published online: 20.08.2021

How to cite this paper: Musviyanti, Ulfah, Y., & Yudaruddin, Y. A. (2021). Women on board, firm size and cash holding: Empirical evidence from the developing country. Journal of Governance & Regulation, 10(3), 177–185. https://doi.org/10.22495/jgrv10i3art16

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

Abstract

How is stock market price volatility affected, and what is the nature of the impact that macroeconomic variables do on the stock market price direction? The main objective of this study is to investigate the impact of some selected macroeconomic variables (inflation rate (INR), interest rate (IR), economic growth rate (EGR), and foreign investment (FI)) on Amman Stock Exchange (ASE) fluctuation for the period 1999–2018. The information is based on the annual data published by industrial companies listed at ASE. The study adopted a descriptive-analytical approach, also simple and multiple linear regression analysis was employed for the mentioned purpose (Nurfadilah & Samidi, 2017). The results revealed that there is no statistically significant impact of INR, IR, EGR, and FI collectively on ASE performance (Niewińska, 2020). Individually, the results indicated that there is a statistically significant impact of all variables (INR, IR, EGR, and FI) on ASE performance. Additionally, the results concluded that foreign investment, portrayed the highest impact factor on ASE performance, followed by a change in average interest rate, then inflation rate, and the least impact attributes to the economic growth rate. Finally, the research recommends that Jordanian banks should reduce the lending interest rate to enhance investment in securities and improve economic growth rate, also Jordanian authorities should encourage foreign direct and indirect investment and make more efforts to attract more foreign investment, either in the form of tax incentives or by extending finance at low-interest rates.

Keywords: Inflation, Interest, Economic Growth, Foreign Investment, ASE Performance

Authors' individual contribution: Conceptualization — M.A.A. and T.A.K.; Methodology — T.A.K.; Formal Analysis — M.A.A.; Software — M.A.A.; Validation — T.A.K.; Investigation — T.A.K.; Writing — Original Draft — M.A.A.; Writing — Review & Editing — T.A.K.; Supervision — T.A.K.

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

JEL Classification: G11, G12, G14

Received: 14.06.2021
Accepted: 13.08.2021
Published online: 17.08.2021

How to cite this paper: Al-Rimawi, M. A., & Kaddumi, T. A. (2021). Factors affecting stock market index volatility: Empirical study. Journal of Governance & Regulation, 10(3), 169–176. https://doi.org/10.22495/jgrv10i3art15