International Journal of Business Governance and Ethics (3 papers in press)
The internal auditing of corporate governance, risk management and ethics: Comparing banks with other industries.
by Silvia Ferramosca, Giuseppe D'Onza, Marco Allegrini
Abstract: This paper empirically tests whether the internal auditing function (IAF) in banks is more focused on corporate governance, risk management and ethics than it is in other industries. This study is grounded on theory triangulation, which involves agency, institutional and contingency theory. The results indicate that banks are more likely than other industries to devote auditing activities to corporate governance, risk management and ethics. With reference to risk management internal auditors in banks are more likely to cover the following areas of responsibility relating to risk: assurance on individual risks; assurance on risk management system as a whole and advice/consulting on risk management. As predicted, banks are more likely to have a corporate ethics policy (i.e., a code of ethics or conduct). Nevertheless, there is no significant difference between banks and other industries regarding the amount of ethics-related auditing.
Keywords: corporate governance; risk management; ethics; banking; auditing; internal auditor.
Board Diversity and Innovation Performance in Malaysia
by Akmalia Ariff, Zaizulhizma Salleh, Muhd Nur Haniff Mohd Noor, Nor Raihan Mohamad, Norsalasiah Ismail
Abstract: A board of directors consists of a set of key personnel that hold vital positions in a company. Based on the premise of the resource dependence theory, we explore the association between board diversity and innovation performance in Malaysia. The sample consists of 220 companies from the industrial product sector of the Main Market of Bursa, Malaysia for the financial year 2013. Board diversity is represented by a comprehensive score that includes age, gender, ethnicity, nationality, education, tenure, area of experience, and directorship in other companies. Results of the regression analysis show that there is a positive association between board diversity and innovation performance. Our findings contribute to the policy involving the diversity of corporate boards by suggesting that policy, such as one of gender diversity in Malaysia, is expanded to include multi-dimensional aspects of board diversity that better represent the economic, legal, and cultural environment of a country.
Keywords: Board Diversity; Innovation Performance; Malaysia.
Inter-municipal cooperation in service delivery and Governance: Insights from Italy
by Pina Puntillo
Abstract: In recent years, corporate governance and performance management have been deeply changed due to several regulatory requirements around the world and new managerial practices inside the company. All these changes in corporate governance and management control spheres could be seen as drivers of innovations inside the firms and they could affect the overall corporate performance. The purpose of this article is to initiate a more detailed investigation into those particular forms of public sector innovation that seem to fall within the broad set of innovations in governance. This paper is focused, with an exploratory approach, on forms of inter-municipal cooperation (IMC) as an innovation of governance in the public sector. More specifically, the main aim of the article is to contribute to the academic debate on the origin and development of inter-municipal cooperation in service delivery, with specific reference to the Italian context.
Keywords: Governance; Inter-municipal cooperation; Service delivery.