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International Journal of Business Governance and Ethics

International Journal of Business Governance and Ethics (IJBGE)

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International Journal of Business Governance and Ethics (30 papers in press)

Regular Issues

  • Does internal and external governance reduce earnings management in family owned firms in Malaysia?   Order a copy of this article
    by Wan Masliza Wan Mohammad 
    Abstract: The purpose of this study is to investigate the effect internal and external governance have on corporate governance effectiveness in highly-condensed family ownership structures in Malaysia. The establishment of RMCCG (2007) focuses more on the roles of audit committee independence adopted from developed countries corporate governance standards. However, given the highly concentrated ownership structure in Malaysia, independence directors fiduciary roles may be comprised as family firms attempts to meet stakeholders expectation. The sample of this study is from 1,206 firm level observations between year 2004 to 2009 of firms listed in Bursa Malaysia. Our findings indicate that external governance as measured by stock market informativeness influences earnings management. Our research offers insights into the importance of external governance factors such as stock market volatility and market efficiency in promoting good governance in Malaysian family firms.
    Keywords: corporate governance; audit committee; stock market volatility; family ownership; earnings management; Malaysia.
    DOI: 10.1504/IJBGE.2021.10034910
  • The death of a company: an ethical assessment   Order a copy of this article
    by Eva Dias De Oliveira, Conceição Soares, Gonçalo Marcelo 
    Abstract: The process that leads to the closing down of a company requires a deliberative action and a strong sense of governance from managers. Research on the process of organisational death is scarce, and it is often thought that managers may wish to postpone the death and eventual demise of their company. We argue that such behaviour is a dismissal of managers responsibilities. Drawing on the case of Glue, we discuss whether the decision to close down a company can be ethically justified. We adopted a procedural, context-bound and existential framework and the results unveil some of the specific traits of what is involved in the decision to let a company die. Explaining managers behaviour in terms of authentic existence enables us to understand how managers cope with the death of a company. Furthermore, we suggest that sometimes closing down is the most responsible option that conciliates the interest of different constituents.
    Keywords: death of a company; ethical assessment; managers’ responsibility; governance; authentic and inauthentic existence; communicative action; qualitative research.
    DOI: 10.1504/IJBGE.2021.10036837
  • Modern socio-cultural management practices in the regional cluster   Order a copy of this article
    by Alexander Georgievich Tyurikov, Marina Alexandrovna Kolmykova, Oksana Petrovna Dobrovolskaya, Nadezhda Vitalevna Opletina 
    Abstract: The study considers the problem of the relationship between the business, state and people, the solution of which affects the operation of the regional cluster. The effective development of a regional cluster is based on the cooperation between business and public authorities on the basis of common interest, trust and reciprocity. The authors used the organisational culture assessment instrument (OCAI) developed by Dr. Kim Cameron and Dr. Robert Quinn to conduct a survey which identified the key features of the organisational structures of innovative regional enterprises and the leadership components of the organisational culture.
    Keywords: regional cluster; organisational culture; culture of management activity; innovation; leadership style; socio-cultural management practices; human capital.
    DOI: 10.1504/IJBGE.2021.10037107
  • Students perception about corporate social responsibility: evidence from Pakistan   Order a copy of this article
    by Maqsood Hayat, Asif Iqbal, Mohsin Ahmad, Zeeshan Ahmad 
    Abstract: This study was conducted to investigate the students perception about the basic concept of corporate social responsibility (CSR) in Pakistan. Primary data was collected from universities students and numbers of variables were used to compute the general trends of CSR within the academic courses, scrutinise different CSRs dynamics and thus prioritise its dimensions. This research unveiled the basic but general trends about the concept of CSR. It was found that specific term CSR is unfamiliar within the course contents and only few students have heard about this term from other sources: media or social circles. Community, shareholders and government were found most influential corporate actors that affect or affected mainly by the ethical and philanthropic dimensions. The findings of this study are important both for academia and corporate world. Higher Education Commission should incorporate comprehensive course content in collaboration with representatives from corporate world and other concerned governmental/non-governmental officials.
    Keywords: corporate social responsibility; CSR; corporate ethics; students’ perception; higher education; Pakistan.
    DOI: 10.1504/IJBGE.2021.10037805
  • The chair-CEO chronological age gap and bank performance: the effects of financial crisis shock   Order a copy of this article
    by Vu Quang Trinh, Ngan Duong Cao, Loc Thanh Phan, Mary Nanyondo 
    Abstract: This study investigates the effect of the Chair-CEO chronological age gap on the performance of commercial banks listed on the London Stock Exchange. We examine either the Chair-CEO generational gap (a minimum age gap of 20 years) or the Chair-CEO age difference (+/ or absolute). We find significant evidence for the hypothesis that the Chair-CEO age dissimilarity is likely to increase bank performance. Additional identification attempts include the use of the 20072009 financial crisis as an exogenous shock to monitoring needs. We find that during the crisis, the positive linkage between age difference and bank performance was more intensified.
    Keywords: chair; CEO; age dissimilarity; banks; board of directors; performance.
    DOI: 10.1504/IJBGE.2021.10039788
  • How does CEO incentive matter for corporate social responsibility disclosure Evidence from global corporations based in the USA   Order a copy of this article
    by Hien Thi Tran, Hanh Song Thi Pham 
    Abstract: This study investigates the effect of each component of CEO compensation, including cash-based component (salary and bonus), equity-based component (stock grant and stock option), and other perks on disclosure of corporate social responsibility (CSR) information of global firms. The study uses 2SLS IV estimation method and a sample of 580 US-based firms in a seven-year period. The study finds that equity-based remuneration has a significant and positive impact on a firm's CSR disclosure while CEO salary, bonus, and other perquisites have significant detrimental effects on CSR disclosure. The paper indicates that a CEO's motivation for CSR reporting might arise from stock grant and option; meanwhile, salary, bonus and other perks could demotivate the CEO in this regard. Our findings offer insight into designing CEO compensation packages to meet shareholders' interests and stakeholders' expectations for a sustainable business.
    Keywords: corporate social responsibility; CSR; disclosure; CEO; incentive; compensation; remuneration.
    DOI: 10.1504/IJBGE.2021.10039956
  • Ethical decision making practices in SMEs: the role of risk acceptance and confidence level   Order a copy of this article
    by Mohammad Rashed Hasan Polas, Mosab I. Tabash, Asghar Afshar Jahanshahi, Valentina Gomes Haensel Schmitt 
    Abstract: The aim of this study is to examine the factors influencing ethical business decision-making on environmental issues, among employees of SMEs. To do so, a survey study was performed with 394 top managers of SMEs in the UAE using a questionnaire, and the data was statistically evaluated using SmartPLS 3.0. The results suggest that prior technology use has significant positive relationships with ethical decision-making and the level of risk acceptance. Furthermore, perceived competitive pressure has significant positive relationships with ethical decision-making and confidence level. In comparison, the level of risk acceptance and confidence level have significant positive relationships with ethical decision-making. Results also demonstrate that the level of risk acceptance mediates the relationship between prior technology use and ethical decision-making. There is also a significant and positive association between perceived competitive pressure and ethical decision-making with a mediating impact of the confidence level.
    Keywords: confidence level; ethical decision making; empirical study; risk acceptance; structural equation modelling; SEM; United Arab Emirates; UAE.
    DOI: 10.1504/IJBGE.2021.10040239
  • Corporate governance and corporate sustainability performance: evidence from the emerging Asian economies   Order a copy of this article
    by Linh-TX Nguyen 
    Abstract: This study investigates the relationship between corporate governance and corporate sustainability performance in the emerging Asian markets where the central role of sustainable development was perceived after the 2008 global financial crisis. We base our study on the triple bottom line approach that incorporates three dimensions of sustainability: economic, environmental, and social performance. A governance index comprising ten firm-specific provisions is proposed to summarise internal corporate governance. Consistent with agency theory, we confirm that firms with better corporate governance have better corporate sustainability performance. We also determine which main factors drive the governance-sustainability relation. The findings have practical implications for firms, shareholders, and policy makers by emphasising the role of corporate governance in assessing and enhancing corporate sustainability performance.
    Keywords: agency theory; Asia; corporate governance; corporate sustainability performance.
    DOI: 10.1504/IJBGE.2021.10040385
  • Role of ethical organisational culture on employee job satisfaction: an empirical study   Order a copy of this article
    by Shaji Joseph, Anil Jadhav, Bhamini Vispute 
    Abstract: The aim of this study is to understand impact of ethical culture of information technology (IT) organisation on employee job satisfaction. In this study, we have identified the constructs of ethical culture of IT organisations on the basis of review of literature and proposed a model indicating the relationship between the identified constructs and job satisfaction. The study is done especially for employees of IT organisations in Pune, India, based on survey of 124 employees working in IT firms. We have analysed impact of organisations ethical culture constructs namely equal opportunity, fairness in promotion process, impartiality in grievance handling, ethical leadership, and ethical policy on employee job satisfaction. Results of the analysis revealed that ethical policy, impartiality in grievance handling, and fairness in promotion process have significant impact on job satisfaction of the employees. Whereas, equal opportunity and ethical leadership has no significant impact on job satisfaction of employees.
    Keywords: business ethics; ethical culture; job satisfaction; ethical leadership; ethical climate.
    DOI: 10.1504/IJBGE.2021.10040504
  • Evaluating the effects of corporate social irresponsibility on brand hate and its behavioural outcomes   Order a copy of this article
    by Elaheh Roozbahani, Reza Salehzadeh, Seyyed Mehdi Mirmehdi 
    Abstract: So far, many research has been undertaken in the field of positive emotions toward brands. Recently, researchers have focused on brand love, which is the most intense positive emotion consumers feel toward brands. By contrast, the research on negative emotions toward brands is scarce and the concept of brand hate has largely been neglected as an object of research. The purpose of this study is to evaluate the impact of corporate social irresponsibility on brand hate and its behavioural outcomes. According to research findings, corporate social responsibility has a significant direct effect on brand hate and consumers behavioural outcomes. Also, brand hate has a significant direct effect on consumers behavioural outcomes. Eventually, corporate social responsibility has a significant effect on consumers behavioural outcomes through brand hate.
    Keywords: corporate social responsibility; CSR; business ethics; brand; brand hate; consumer behaviour; behavioural outcomes.
    DOI: 10.1504/IJBGE.2021.10040847
  • Going beyond social corporate responsibility: possible new directions in tourism   Order a copy of this article
    by Andrea Giampiccoli, Oliver Mtapuri 
    Abstract: This paper advances a framework model within which CSR should work. The ambition was to broaden the conceptualisation of CSR but remaining open to new innovative ideas about CSR incentives. This paper is conceptual in nature. There are many CSR practices, approaches, and dimensions. This paper argues that for CSR to be effective, it needs collaboration and integrated with inputs from all stakeholders for holistic results. This paper proposes that there is a need to go beyond a voluntary CSR, which is company/industry self-regulated and charity/philanthropic, but to embed CSR within industries undergirded by legally enforceable regulations. The main aim is to achieve structural changes in the tourism industry to ensure that CSR is not just a charity/philanthropic activity. This new approach intends to change the structure of CSR. A changed structure is a fundamental framework within which CSR should work.
    Keywords: tourism; corporate social responsibility; CSR; community-based tourism; CBT; pro-poor tourism; PPT; sustainable tourism.
    DOI: 10.1504/IJBGE.2021.10041074
  • Audit committee independence and financial expertise and earnings management: evidence from China   Order a copy of this article
    by Radwan Hussien Alkebsee, Gaoliang Tian, Alexandros Garefalakis, Andreas Koutoupis, Panagiotis Kyriakogkonas 
    Abstract: This paper investigates the effect of the audit committee’s independence and financial expertise on financial reporting quality. In particular, we investigate the relationship between the audit committee’s independence and financial expertise and accrual earnings management. Using a sample of Chinese public firms over the period of 2010 to 2017, the findings show a negative association between the independence of the audit committee and accrual earnings management. This finding suggests that a high proportion of independent directors on the audit committee enhance the monitoring role of the audit committee over earnings quality. We also, find no evidence regarding the effect of the audit committee’s financial expertise on accrual earnings management. Our findings are robust to the potential endogeneity problem. This study has important implications for policymakers and other stakeholders.
    Keywords: earnings management; audit committee independence; audit committee financial expertise; China.
    DOI: 10.1504/IJBGE.2021.10041095
  • Implementing mandatory corporate social responsibility in India: assessing progress made by corporates and NGOs   Order a copy of this article
    by Suresh Kalagnanam, Priya Nair Rajeev 
    Abstract: CSR in India is mandated through Section 135 of the Companies Act (2013), covering the practice and reporting of social responsibility projects. This paper examines India’s CSR framework and reports findings on governance, planning, and implementation from a survey of and non-governmental organisations (NGOs). Overall findings reveal several positive aspects and inform us of the challenges that companies and NGOs consider essential. First, an overwhelming majority of companies focused on three investment areas: health, education, and the environment. Second, 88% of companies undertook long-term continuing projects, a positive signal from a social development perspective. Third, 68% reported that their CSR strategy was aligned with their core business strategy. Fourth, a significant majority of the companies have established the required structure for policy development, planning, and periodic monitoring from a governance perspective. Finally, findings on NGOs indicate several elements of preparedness; however, the retention of talented employees is a continual challenge.
    Keywords: mandatory corporate social responsibility; corporate performance; NGOs; governance; planning; implementation; reporting; accountability; corporate-NGO partnerships.
    DOI: 10.1504/IJBGE.2021.10041188
  • Determinism vs. solidarism: the philanthropic approach of foundations   Order a copy of this article
    by Giacomo Boesso, Fabrizio Cerbioni, Kamalesh Kumar, Giulia Redigolo 
    Abstract: Extant research shows that foundations adopt two broad management approaches for achieving their strategic outcomes. One body of literature focuses on the deterministic approach, in which foundations are managed like for-profit organisations. The other argues for managing foundations with a solidarist approach, in which foundations are guided by the solidarity of interests found in natural interdependencies of various members of the society. Proponents of each of these two approaches argue that their approach would result in generating better social value. Based on the survey of 201 leaders of Italian foundations, and supplemented by data collected from archival sources, this study investigates the association between the approach adopted and performances. Results of the study support the capacity of both approaches to generate positive performances if properly implemented, while, on the opposite, foundations that lack a clear management approach, report lower social performance and asset utilisation.
    Keywords: managing foundations; strategic philanthropy; solidarism; determinism.
    DOI: 10.1504/IJBGE.2021.10041540
  • Do deviations from shareholder democracy harm sustainability? An empirical analysis of multiple voting shares in Europe   Order a copy of this article
    by Marco Fasan, Elise Soerger Zaro, Cláudio Soerger Zaro, Cesare Schiavon, Ernesto-Marco Bagarotto 
    Abstract: This paper builds on previous literature on corporate governance and sustainability by studying the relation between the adoption of multiple voting shares (MVS) and environmental, social and governance (ESG) performance. More specifically, it hypothesises that controlled companies with MVS have lower sustainability performance than controlled companies without MVS because of different shareholders incentives. We rely on a proprietary dataset that includes 1,940 firm-year observations from 11 European countries, between 2016 and 2018 and we conduct multivariate analyses. To account for endogeneity and to further strengthen the results, we performed a difference-in-differences (diff-in-diff) analysis. We find that companies controlled by a dominant shareholder through MVS have lower sustainability performance compared to controlled companies without MVS.
    Keywords: sustainability; corporate governance; multiple voting shares; MVS; short termism; environmental; social and governance; ESG.
    DOI: 10.1504/IJBGE.2021.10041569
  • Does increase in female representation on boards impact banks' value: a case of an emerging economy   Order a copy of this article
    by Riyanka Baral, R.L. Manogna, Debasis Patnaik, Aswini Kumar Mishra 
    Abstract: This paper aims to study female participation on bank boards and the effect of gender diversity on publicly listed Indian bank's performance. Banks were subdivided into large and small banks based on market capitalisation. Gender diversity is measured using various variables. Return on assets (ROA) and return on equity (ROE) are taken as a proxy to assess bank performance. A balanced panel data set of 20 banks with duration 2008-2018 were executed to evaluate the relationship between gender diversity and performance of the banks. The result suggests that there is a value addition to the bank due to the existence of a female CEO in large banks and the presence of women on board in small banks. Few banks seem to meet the minimum requirement set by the regulator. These findings bear policy implications for the banking sector. Emphasis should be put on ways for women to undertake roles in top echelons of management which can enhance the framework of corporate governance.
    Keywords: corporate governance; banks; performance; gender; board of directors.
    DOI: 10.1504/IJBGE.2021.10041608
  • Evidence of ethics and misconduct in a multinational corporation: motives for growth of corrupt environments in todays business world   Order a copy of this article
    by Christian T. Elbaek, Panagiotis Mitkidis 
    Abstract: Unethical behaviour, such as corruption and fraud, is a massive problem in today’s business world. Research in the fields of business ethics and moral psychology has presented compelling evidence of a series of behavioural concepts that might influence an individual’s propensity to engage in unethical conduct. Yet, it is still unknown how these concepts apply to more ecologically valid contexts such as real-world scandals on unethical behaviour. Motivated by this, we use empirical qualitative evidence from one of Denmark’s largest corruption scandals to explore how well renowned concepts within business ethics and moral psychology hold up in the real world, when looking into both what causes unethical behaviour and how it could be minimised. We find evidence that catalysts of immoral conduct in the case company are well supported by some of the most well-researched concepts in the research area, and our research indicates a possible real-world interaction between concepts.
    Keywords: business ethics; corruption; moral psychology; empirical qualitative evidence.
    DOI: 10.1504/IJBGE.2021.10041702
  • Determinants of CEO compensation in the FTSE100 constituent firms   Order a copy of this article
    by Tasawar Nawaz, Aoxing Pang 
    Abstract: The main objective of this paper is to examine the determinants of CEO compensation in the UK public listed companies. Our analysis, based on the sample drawn from the FTSE100 constituent firms, suggest that firm financial performance measured by return of assets (ROA), influence CEO compensation with the impact being most pronounced for the CEO total compensation. Results further suggest that corporate governance characteristics such as board size and CEO role duality have direct implications for CEO compensation. These attributes, however, differentially determine the various components of CEO compensation. Although the results of this research help to elucidate the importance of corporate outcomes, board attributes and CEO traits in explaining the determinants of CEO compensation in the UK public listed companies, these findings have important economic implications for the corporate sector, regulators, investors, market analysts, academics and the public, which extend beyond the UK market.
    Keywords: CEO compensation; firm performance; governance mechanisms; FTSE100; United Kingdom.
    DOI: 10.1504/IJBGE.2021.10041971
  • Social undermining and organisational attitudes: the moderating role of personality traits   Order a copy of this article
    by Vahid Yousefian Arani, Marjan Fayyazi 
    Abstract: Social undermining is an interpersonal insidious misbehaviour and is significantly associated with employee’s outcomes if it repeats over time. The purpose of this article is to investigate the impact of social undermining (SU) on employee’s attitudes including organisational commitment (OC), job satisfaction (JS) and job involvement (JI). Moreover, we study the moderating role of personality traits including conscientiousness and neuroticism, on the impact of SU on job attitudes. Regression analysis was used to analyse the data collected from 158 questionnaires completed by employees in an Iranian public institution. Results show that SU by coworkers and supervisors has a considerable effect on employee’s job attitudes. The main contribution of the paper is that we found conscientiousness has a moderating role on the effect of SU on OC, affective commitment, normative commitment and JI, and neuroticism has a moderating role on the effect of SU on normative commitment and JS.
    Keywords: social undermining; organisational attitudes; job satisfaction; organisational commitment; job involvement; personality traits; neuroticism; conscientiousness.
    DOI: 10.1504/IJBGE.2021.10042163
  • Can board governance and financial performance be a matter for corporate disclosure tones?   Order a copy of this article
    by Zainab Abdulwahed Al-Alalwani, Gehan A. Mousa 
    Abstract: The study investigates the effect of board characteristics and firm performance on disclosure tones by considering DICTION five master variables namely activity, optimism, certainty, realism and commonality tones using a sample of 779 annual reports of GCC listed firms (2012 to 2018). Disclosure tones of the sampled GCC firms were measured through corporate narrative disclosures by DICTION 7.0 software. Then, the ordinary least square regression analysis was conducted. The main findings of the study show that firm performance has a significant effect on disclosure tones in terms of activity, optimism, certainty, and realism tones except for commonality reported tone. Board characteristics have different effects on the five disclosure tones. The study offers a unique contribution to accounting literature as it is one of the first studies in the Gulf region that seeks to examine the relationship between disclosure tones and firm performance as well as board governance.
    Keywords: disclosure tones; firm performance; board characteristics; GCC countries.
    DOI: 10.1504/IJBGE.2021.10042266
  • Firm financial performance and sustainability reporting: the role of institutional investors' ownership   Order a copy of this article
    by Hafizah Abd-Mutalib, Nor Atikah Shafai 
    Abstract: The relationship between firm financial performance and sustainability reporting (SR) has been extensively researched previously, but with inconsistent results. By incorporating the coercive isomorphism of the institutional theory, this study examines if the relationship is moderated by the ownership of institutional investors. Using data from a sample of 270 Malaysian public listed firms, the study tests two ordinary least square (OLS) regression models. The results show that firm performance and institutional ownership have a positive link to SR. Further examination however discloses a negative moderation of institutional ownership on the relationship between firm performance and SR, thus fail to support the indication that institutional investors coerce the investee firms to utilise their firm performance for sustainability activities. This study adds to SR-related literature by providing reliable and objective findings and directions for future studies in this context.
    Keywords: sustainability reporting; financial performance; institutional investors; institutional ownership; ordinary least square; OLS.
    DOI: 10.1504/IJBGE.2021.10042655
  • Implementation of whistleblowing policies. The case of listed companies in Spain   Order a copy of this article
    by Elisa Baraibar Diez, María D. Odriozola 
    Abstract: To Shh, or not to Shh: that is the question. Paraphrasing Hamlet, one of the main ethical dilemmas for workers and organisations can be represented: to blow the whistle or to remain silent when facing a wrongdoing. Whistleblowing is analysed from psychological, normative and organisational points of view, but the implementation in the company is less represented. And it should not be like that, since internal whistleblowing mechanisms allow organisational wrongdoing staying inside the organisation, where it can be remedied and its reputational effects, alleviated. With a content analysis methodology, this paper analyses disclosed information about the implementation of whistleblowing mechanisms in Spanish listed companies (Ibex35), a country where corruption scandals have once again brought to the fore the problem of reporting wrongdoing. The implementation of whistleblowing mechanisms is heterogeneous in terms of denominations, channels and procedures, identifying weak points in the reporting of irregularities in CSR and sustainability reports.
    Keywords: whistleblowing; whistleblowing mechanisms; whistleblowers; ethics; business ethics; human resources; human resources management; sustainable HRM; Spain.
    DOI: 10.1504/IJBGE.2021.10043042
  • When silence is golden? Virtuous silence in the organisation: its conceptualisation, key characteristics, and values   Order a copy of this article
    by Shih Yung Chou, Charles Ramser, Katelin Barron 
    Abstract: Perhaps one of the most pervasive behaviours in organisations is individual silence. Although individual silence may be triggered by various motives, prior research has predominantly discussed individual silence from the dark side. Thus, individual silence has been viewed as a dysfunctional and antisocial workplace behaviour. In this article, we take a bright perspective by incorporating virtues into the discussion of individual silence. Specifically, we propose the concept of virtuous silence to capture individuals' inclination to remain silent in order to feel, think, and act in ways that contribute to the common good within the organisation. Additionally, virtuous silence contains the following key characteristics: 1) it is driven by an individual's natural propensity for righteousness and collective prosperity; 2) it is a dyadic behaviour; 3) it is a communicative behaviour that focuses on engaging oneself and others in deeper thinking and reasoning. Theoretical contributions and managerial implications are discussed.
    Keywords: virtuous silence; individual silence; virtues; organisational prosperity.
    DOI: 10.1504/IJBGE.2021.10043160
  • Board of directors' configurations and the performance of banks: lessons learned from the global financial crisis   Order a copy of this article
    by Nicola Cucari, Michele Simoni, Antonio Renzi 
    Abstract: Our paper analyses the characteristics of the boards of directors of the best performing listed Italian banks during the last global financial crisis (from 2008 to 2015). Through a fuzzy-set qualitative comparative analysis (fsQCA), the study identifies three different board configurations (archetypes) that these banks adopted: a committee-based board, a gender diversity-based board, and a large size-based board. Although different in some of their characteristics, these configurations share the rationale of favouring the advisory services that the board can provide to managers in their decision-making activities. These services, in turn, are particularly valuable in a time of high risk and uncertainty for banks. With its results, the paper contributes to the literature on the relationship between board characteristics and organisational performance and to a better understanding of the configurations that can best serve when firms’ decision making, for various reasons, becomes particularly complex and can benefit from board support. Our results also contribute to further detail the governance characteristics of banks in the Italian context.
    Keywords: board of directors; board role; financial performance; bank governance; qualitative comparative analysis.
    DOI: 10.1504/IJBGE.2021.10043353
  • Striving towards better governance and a knowledge-based economy: impact of intangible resources on firm performance   Order a copy of this article
    by Kanwal Iqbal Khan, Syed Khurram Abbas Sherazi, Hafsa Hamida 
    Abstract: The nexus between corporate governance, intellectual capital, and firm performance is imperative for developing countries striving towards being more knowledge-based. This paper investigates the influence of innovation and competitive advantage on the relationship between intellectual capital, corporate governance, and firm performance. An industry-wise analysis of the non-financial sector of Pakistan is conducted. In order to assess corporate governance and intellectual capital, internal mechanisms of corporate governance and modified value-added intellectual coefficient were used. Data were collected from primary and secondary sources. A multi-group analysis was conducted to examine the industry-wise performance of the firms. The findings indicate that innovation and competitive advantage partially mediate the relationship of corporate governance, intellectual capital, and firm performance. This study is one of the first attempts to investigate the multi-group analysis of the non-financial sector of Pakistan concerning mechanisms of corporate governance and intellectual capital. The findings will help the non-financial sector of Pakistan to develop strategies and focus on intangible resources that can add value to their firms.
    Keywords: corporate governance; competitive advantage; firm performance; intellectual capital; innovation; non-financial sector; modified value-added intellectual coefficient.
    DOI: 10.1504/IJBGE.2021.10043369
  • The ethics of talent management practices in China, exploring the role of guanxi in talent recruitment and talent development   Order a copy of this article
    by Shuai Zhang 
    Abstract: This paper explores talent management (TM) ethics in China, specifically examines the role of Chinese guanxi in TM practices. Guanxi in the Chinese business context has been widely acknowledged amongst Western academics and business managers, and there is a growing literature on TM and its ethics. However, guanxi-related behaviours and ethical issues arising from TM practices’ operation have been overlooked but need to be addressed. This paper explores the roles of guanxi in talent recruitment and development with views of TM ethics. 15 interviews were conducted in a case company to explore how guanxi factors impact its talent recruitment and development activities. The roles of guanxi are analysed based on the ethics of elitist TM. This paper also identifies several ethical dilemmas related to guanxi in TM practices. This paper recommends that TM practitioners take account of guanxi effects to discuss TM ethics in China’s context.
    Keywords: talent management; ethics; guanxi; China.
    DOI: 10.1504/IJBGE.2022.10044026
  • Do gender-diverse boards lead to selection of female CEOs: a study of life insurance firms in the USA   Order a copy of this article
    by B. Elango 
    Abstract: In recent years, one overarching corporate governance goal in the corporate world has been to increase the number of female CEOs of firms. It has been argued that one approach to achieve this goal is through a gender-diverse board. This study empirically tests to see if a relationship exists between gender-diverse boards and female CEOs. This study focuses on a sample of firms in the USA operating in the life insurance segment of the financial services industry, with data from hand-collected and secondary data sources. Findings indicate that a greater number of women on a company’s board of directors leads to a greater likelihood that a firm will have a female CEO. This finding is quite robust in the alternate specifications of the model tested, offering confidence in the study findings.
    Keywords: female; CEO; corporate governance; gender-diverse board; female CEO; logit modelling; financial services industry; life insurance.
    DOI: 10.1504/IJBGE.2022.10044027

Special Issue on: Environmental, social and Governance (ESG) Disclosure Ethical Consideration And Implications

  • Sustainability reporting and assurance in Gulf Cooperation Council countries: what is missing?   Order a copy of this article
    by Abdulhadi H. Ramadan, Mahmoud Nassar, Mohammad Haroun Sharairi, Mohammed Hassan Makhlouf, Khalil Nimer 
    Abstract: This study explores the sustainability reporting (SR) and assurance market in the Gulf Cooperation Council (GCC) region from the Big 4 auditors’ perspectives, and investigates the drivers and barriers of SR and assurance in the GCC region. We have interviewed ten representatives of auditing firms (i.e., members of Big 4) in the GCC region. The results of study reveal the immaturity of the SR and assurance market in the region but are hopeful for the future contingent upon certain factors. In addition, the voluntary nature of SR, the cost of reporting and assurance, and religious concerns among others are primary barriers in front of the eagerness of firms to adopt SR and its assurance. Reputation building and accessing international markets among others are the main motivations for the adoption of SR and assurance. The interviewees have firmly expressed that there is no direct relationship between SR assurance and financial report audit.
    Keywords: sustainability report; assurance; Gulf Cooperation Council; GCC; Big 4; interview.
    DOI: 10.1504/IJBGE.2021.10042227
  • Do investors care about corporate environmental responsibility engagement?   Order a copy of this article
    by Khaldoon Albitar, Siming Liu, Khaled Hussainey, Gaoke Liao 
    Abstract: We aim to investigate the effect of corporate environmental responsibility (CER) engagement on investors reactions. We also explore heterogeneity of this impact among different types of companies and different companys market performance. We use panel data models and quantile regression based on data related to firms listed on the A-share China security market and the final sample consists of 3,776 firm-year observations. The results show that CER engagement has a significant positive impact on investors' investment decisions. Further, investors are more sensitive to CER engagement of high energy-consumption companies and no matter the company is a state-owned or a non-state-owned, CER engagement has a significant positive impact on investors' reactions. CER engagement has a significant positive impact on investors' reactions in all quantiles except one and the promoting effect increases first and then decreases with the growth of corporate market value from lower to upper quantiles.
    Keywords: investor's reaction; corporate environmental responsibility; high energy-consumption; corporate market performance; heterogeneity.
    DOI: 10.1504/IJBGE.2021.10042854
  • Emergent themes of social and environmental reporting in the UK retail banks   Order a copy of this article
    by Mohamed Saeudy, Khaled Hussainey 
    Abstract: We examine current practices in the development and communication of social and environmental reporting (SER) in the UK retail banks. Empirical data was triangulated between semi-structured interviews with bank executives, bank sustainability reports, and third-party sustainability entrepreneur initiatives (termed 'SEIs') to identify current practices and growth areas. We use social contract theory to examine how these social and environmental retail banks developed their SER practices. Our findings reveal that SER practices are crucial for pursuing more positive social and environmental values. We clarify the role of SER as a form of integrated reporting (IR) to assess and improve the usefulness of the IR reporting practices. The SER practices also appear to have benefited from the presence of a number of SEIs in the sampled banks who specialise in commercialising social and environmental projects. In addition, methodical analyses of SER components assist managers and regulators in determining which components are meaningful to stakeholders.
    Keywords: social and relationship capital; integrated reporting; sustainable banking; social contract; value creation.
    DOI: 10.1504/IJBGE.2021.10042907