Search results for: contract governance

Authors: Jamila Garba Audu, Shehu Usman Hassan

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The widespread failure in the financial information quality has created the need to improve the financial information quality and to strengthen the control of managers by setting up good firms structures. Published accounting information in financial statements is required to provide various users - shareholders, employees, suppliers, creditors, financial analysts, stockbrokers and government agencies – with timely and reliable information useful for making prudent, effective and efficient decisions. The relationship between corporate governance and performance to financial reporting quality is imperative; this is because despite rapid researches in this area the findings obtained from these studies are constantly inconclusive. Data for the study were extracted from the firms’ annual reports and accounts. After running the OLS regression, a robustness test was conducted for the validity of statistical inferences; the data was empirically tested. A multiple regression was employed to test the model as a technique for data analysis. The results from the analysis revealed a negative association between all the regressors and financial reporting quality except the performance of listed manufacturing firms in Nigeria. This indicates that corporate governance plays a significant role in mitigating earnings management and improving financial reporting quality while performance does not. The study recommended among others that the composition of audit committee should be made in accordance with the provision for code of corporate governance which is not more than six (6) members with at least one (1) financial expert.

Keywords: corporate governance, financial reporting quality, manufacturing firms, Nigeria, performance

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Authors: Synthia Atas Sari, Engkos Achmad Kuncoro, Haryadi Sarjono

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The purpose of this paper is to examine the impact of reward system which is determined by government over the work of Board of Commissioners in implementing good corporate governance in Indonesian state-owned enterprises. To do so, this study analyses the adequacy of the remuneration, the job attractiveness, and the board commitment and dedication with the remuneration system. Qualitative method used to examine the significant features and challenges to the government policy over the remuneration determination for the board of commissioners to their roles. Data are gathered through semi-structure in-depth interview to the 21 participants over 10 Indonesian stated-owned enterprises and written documents. Findings in this study indicate that government policies over the remuneration system is not effective to increase the performance of board of commissioners in implementing good corporate governance in Indonesian state-owned enterprises due to unattractiveness of the remuneration amount, demotivate active members, and conflict interest over members of the remuneration committee.

Keywords: reward system, board of commissioners, state-owned enterprises, good corporate governance

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Authors: Yrfet Shkreli

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Despite all the wide research and literature on the subject, changing and challenging times often present themselves with new objectives, fluid politics and everlasting point of views. Much is said about the subject and the trend nowadays is watching every EU intervention as a form of neo colonialism or a form of establishing new markets. The paper will try to establish a new perspective on EU influences, policies and impacts analyzed from multidimensional point of view, not limiting itself on a narrow external dimension, focusing on a broader understanding of it diverse contribution to global governance and peace keeping. Tending to be critical, this paper, tend to fall out of extremes, nether holding a Eurocentric position, nor falling for cheap critic to the whole failures and impact of EU policies. The ambition is to show EU as a contributing factor while keeping in mind its nature as a multi layered actor and with not necessarily coinciding interests among its member states.

Keywords: European Union, global governance, globalization, normative power

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Authors: Robert Lindner

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In recent years a multitude of international efforts, including the United Nations’ aspirational 2030 Agenda for Sustainable Development, provided a new momentum to facilitate energy access and rural electrification projects to combat energy poverty in developing states in Asia. Rural electrification projects promise to facilitate other sustainable development aims, such as the empowerment of local communities through the creation of economic opportunities or increased disaster resilience. This study applies a multi-governance research framework to study the cases of the ongoing energy system transition in Myanmar and Cambodia. It explores what impact the international aid community, especially multilateral development banks and international development agencies, has on the governance of the transitions and how diverging aid donor interest shape policy making and project planning. The study is based on policy analysis and expert interviews, as well as extensive field research. It critically examines the current development trajectories and the strategies of the stakeholders involved. It concludes that institutional and technological competition between donors, as well as a lack of transparency and inclusion in the project planning and implementation phases, contributes to insufficient coordination in national energy policy making and project implementation at the local level. The study further discusses possible alternative approaches that might help to promote the spread of sustainable energy technologies.

Keywords: energy governance, developing countries, multi-level governance, energy transitions

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Authors: Sheriff Folarin, Oluwafunke Folarin, Hadassah Hussaini, Victor Jubril, Olaniyi Ayodele

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Using a famous, unrestrained and fiery United States-based, Nigerian-owned Sahara Reporters as a case study, this paper examined the impact of online-based media on governance in Nigeria. The discourse is premised on the thesis that the internet has changed the face of journalism and that the mainstream but online-based media have made journalism more participatory than ever. Everyone who has something to say finds it easy to say it quickly and conveniently, unhinged or without being censored. This has made online journalism very popular and the number of online-based news platforms to be on the increase. As these platforms have given the citizens a means to interact and added to the content of the news, they have also succeeded in promoting partisanship. It thus becomes necessary to study the impact of the rabid news platform, Sahara Reporters, on governance in Africa’s biggest democracy, Nigeria. Few studies have examined the impact on governance of mainstream-online media platforms and those studies that did, have only focused on social media, such as Facebook and Twitter. This paper is a product of a bigger study, in which the research design entailed semi-structured interviews with participants from different sectors of the society and an analysis of contents from the Sahara Reporters website, from which data were collected. The findings revealed that through uncensored reporting and citizen participation on the platform of Sahara Reporters, there had been a significant people influence on governance in Nigeria, with government at two levels (national and state) sometimes shifting or yielding grounds, particularly from 2011-2016. The study also recognized the presence of counter-forces in the online community who want to discredit the information on the site. Through the lens of media dependency theory, the study concluded that the public now increasingly depends on online news media for information and the more news these media provide, the more the people depend on it, making it easy for them to influence governance.

Keywords: governance, media, online news, Sahara reporters

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Authors: Asah Nelson Asoh, Wanie Clarkson Mvo

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Given the diverse nature of cultural diversity in Cameroon from the forested south to the sudano-sahelian north regions, Cameroon is aptly described as 'Africa in Miniature', which simply means all of Africa in a single country-Cameroon. Cameroon possesses all that can be attractive to the eyes in Africa. Yet, there is a microscopic involvement of the local inhabitants in participatory governance of cultural patrimony for tourism and community-based socio-economic development, which greatly jeopardizes conservation endeavors because the community fails to trust governing authorities. This study delves into the ways through which local inhabitants could be indulged in participatory governance of cultural patrimony for tourism and community-based socio-economic development. The study adopts a qualitative research design and semi-structured interviews with experts in the collection of primary data blended with secondary materials from published sources, including textbooks, scientific journal articles, dissertations, reports, and internet websites. The collected data was presented and analysed using descriptive statistical techniques, photographic illustrations, and through intuition. The study fosters the ways through which local inhabitants could be indulged in participatory governance of cultural patrimony for tourism and community-based socio-economic development. This is to ensure community support for the conservation of tourism cultural patrimony in Cameroon in particular and the world at large.

Keywords: participatory governance, cultural patrimony, tourism, socio-economic development, Cameroon

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Authors: Abdulaziz Abdulsaleh

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This study aims at identifying the practices that should be taken into consideration by audit committees as a tool of corporate governance in Libyan commercial banks by investigating various perceptions on this topic. The study is based on a questionnaire submitted to audit committees ‘members at Libyan commercial banks, directors of internal audit departments as well as members of board of directors at these banks in addition to a number of external auditors and academic staff from Libyan universities. The study reveals that the role of audit committees has to be shifted from traditional areas of accounting to a broader role including functions related to financial reporting, audit planning, support the independence of internal and external auditors, acting as a channel of communication between external auditors and board of directors, reviewing external audit, and evaluating internal control systems. Although the study is a starting point in developing a framework of good audit committees’ practices in Libya, it is believed that the adoption of its results can result in enhancing the corporate governance practices not only in the banking sector but also in the entire corporate sector in Libya.

Keywords: audit committees, corporate governance, commercial banks, Libya

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Authors: Richard Mbatu

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Implementation of the Reducing Emissions from Deforestation and forest Degradation (REDD+) program will not only lead to significant net gains in greenhouse gas reduction but also gains in biodiversity conservation. However, the looming paradigm shift in the program in the form of the proposed landscape governance approach could change this inclination. The concern lies with the fact that pursue of carbon credits by governments and private entities under the proposed landscape approach could encourage obstinate land use behaviors that are detrimental to the cause of biodiversity conservation and ecosystem services. Yet, the landscape approach could also stimulate governments to develop and implement land use management policies for climate change adaptation and mitigation. Using two potential areas of land use under the proposed landscape approach – carbon farming in grasslands and carbon farming in plantations – this paper provides a balanced analytical review of conservation challenges and opportunities for forest governance and beyond under the proposed landscape approach to REDD+. The paper argues that such a balanced view will enable policymakers and other stakeholders to better present their arguments in their efforts to shape the course of the REDD+ program in the post-Paris Agreement era.

Keywords: biodiversity conservation, REDD+, forest governance, grasslands, landscape approach, plantations

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Authors: Memory Ranga, Phillip Pretorious

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The South African Government has invested a lot of money in Information Technology Governance (ITG) within the Government departments. The ITG framework was spearheaded by the Department of Public Service and Administration (DPSA). This led to the development of a governing ITG DPSA framework and later the Government Wide Enterprise Architecture (GWEA) Framework for assisting the departments to implement ITG. In addition to this, the government departments have adopted the Information Systems Audit and Control Association (ISACA) Control Objectives for Information and Related Technology (COBIT) for ITG processes. Despite all these available frameworks, departments fail to fully capitalise and improve the ITG processes mainly as these are too generic and difficult to apply for specific governance needs. There has been less research done to evaluate the progress on ITG initiatives within the government departments. This paper aims to evaluate the existing ITG frameworks within selected government departments in South Africa. A quantitative research approach was used in this study. Data was collected through an online questionnaire targeting ICT Managers and Directors from government departments. The study is undertaken within a case study and only the Eastern Cape Province was selected for the research. Document review mainly on ITG framework and best practices was also used. Data was analysed using the Google Analytic tools and SPSS. A one–sample Chi-Squared Test was used to verity the evaluation findings. Findings show that there is evidence that the current guiding National governance framework (DPSA) is out dated and does not accommodate the new changes in other governance frameworks. The Eastern Cape Government Departments have spent huge amount of money on ITG but not yet able to identify the benefits of the ITG initiatives. The guiding framework is rigid and does to address some of the departmental needs making it difficult to be flexible and apply the DPSA framework. Furthermore, despite the large budget on ITG, the departments still find themselves with many challenges and unable to improve some of the processes and services. All the engaged Eastern Cape departments have adopted the COBIT framework, but none has been conducting COBIT maturity Assessment which is a functionality of COBIT. There is evidence of too many the ITG frameworks and underutilisation of these frameworks. The study provides a comprehensive evaluation of the ITG frameworks that have been adopted by the South African Government Departments in the Eastern Cape Province. The evaluation guides and recommends the government departments to rethink and adopt ITG frameworks that could be customised to accommodate their needs. The adoption and application of ITG by government departments should assist in better governance and service delivery to the citizens.

Keywords: information technology governance, COBIT, evaluate, framework, governance, DPSA framework

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Authors: Roshan Jelal, Charles Mbohwa

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In today’s world, internal fraud remains one of the most challenging problems within companies worldwide and despite investment in controls and attention given to the problem, the instances of internal fraud has not abated. To the contrary it appears that internal fraud is on the rise especially in the wake of the economic downturn. Leadership within companies believes that the more sophisticated the controls employed the less likely it would be for employees to pilfer. This is a very antiquated view as investment in controls may not be enough to curtail internal fraud; however, ensuring that a company drives the correct culture and behaviour within the organisation is likely to yield desired results. This research aims to understand how creating a strong ethical culture and embedding the principle of good corporate governance impacts on levels of internal fraud with an organization (a South African Bank).

Keywords: internal fraud, corporate governance, ethics, reserve bank, the King Code

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Authors: Alexandre Beaupré-Lavallée, Pier-André Bouchard St-Amant, Nathalie Beaulac

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The question of internal governance of universities is a political and scientific debate in the province of Quebec (Canada). Governments have called or set up inquiries on the subject on three separate occasions since the complete overhaul of the educational system in the 1960s: the Parent Commission (1967), the Angers Commission (1979) and the Summit on Higher Education (2013). All three produced reports that highlight the constant tug-of-war for authority and legitimacy within universities. Past and current research that cover Quebec universities have studied several aspects regarding internal governance: the structure as a whole or only some parts of it, the importance of certain key aspects such as collegiality or strategic planning, or of stakeholders, such as students or administrators. External governance has also been studied, though, as with internal governance, research so far as only covered well delineated topics like financing policies or overall impacts from wider societal changes such as New Public Management. The latter, NPM, is often brought up as a factor that influenced overall State policies like “steering-at-a-distance” or internal shifts towards “managerialism”. Yet, to the authors’ knowledge, there is not study that specifically maps how the Quebec State formally influences internal governance. In addition, most studies about the Quebec university system are not comparative in nature. This paper presents a portion of the results produced by a 2022- 2023 study that aims at filling these last two gaps in knowledge. Building on existing governmental, institutional, and scientific papers, we documented the legal and regulatory framework of the Quebec university system and of twenty-one other university systems in North America and Europe (2 in Canada, 2 in the USA, 16 in Europe, with the addition of the European Union as a distinct case). This allowed us to map the presence (or absence) of mandatory structures of governance enforced by States, as well as their composition. Then, using Clark’s “triangle of coordination”, we analyzed each system to assess the relative influences of the market, the State and the collegium upon the governance model put in place. Finally, we compared all 21 non-Quebec systems to characterize the province’s policies in an internal perspective. Preliminary findings are twofold. First, when all systems are placed on a continuum ranging from “no State interference in internal governance” to “State-run universities”, Quebec comes in the middle of the pack, albeit with a slight lean towards institutional freedom. When it comes to overall governance (like Boards and Senates), the dual nature of the Quebec system, with its public university and its coopted yet historically private (or ecclesiastic) institutions, in fact mimics the duality of all university systems. Second, however, is the sheer abundance of legal and regulatory mandates from the State that, while not expressly addressing internal governance, seems to require de facto modification of internal governance structure and dynamics to ensure institutional conformity with said mandates. This study is only a fraction of the research that is needed to better understand State-universities interactions regarding governance. We hope it will set the stage for future studies.

Keywords: internal governance, legislation, Quebec, universities

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Authors: Laura Ramona Nae

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The issue of risks faced by companies providing tourist and hotel services in the HoReCa field, related to the goods belonging to consumer tourists left in hotel storage, has acquired a new dimension in the context of the economic and geo-political influences that have recently intervened at the global level. Thus, hoteliers and not only had to create contractual mechanisms regarding the risks and to protect the businesses in this field of activity. This situation has led to a reassessment of the importance of insurance, in particular with regard to hotel liability insurance-premises liability, safety, and security of goods. Interpretation of clauses in contracts concluded between hoteliers and tourists consuming hotel services and products, all the more so in the current pandemic context of Covid 19, stressed the increase in the number of disputes generated by them. This article presents a general picture of the significance of the risks related to the activity carried out in the hospitality industry, tourism, respectively within the HoReCa field. The study mainly marks the specificities of the hotel deposit contract, as well as the related insurance specific to the field, as a way to cover these risks. The article also refers to alternative methods of out-of-court settlement of disputes (ADR) in the HoReCa domain, generally used in both Romania and the European Union.

Keywords: consumer tourist, disputes and ADR methods, deposit contract, hotel warehouse and hotelier insurance, hotel services and tourist products, HoReCa

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Authors: Mahfoudh Hussein Mgammal

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The purpose of this paper is to investigate the moderating and mediating effect of corporate governance mechanisms proxy on the relationship of tax planning measured by effective tax rate components and tax disclosure. This paper tested the hypotheses by a 3-step hierarchical regression with 2010 to 2012 Malaysian-listed nonfinancial firms. We found companies positively value tax-planning activities. This indicates that tax planning is seen as a source of companies' wealth creation as the results show that there is an association between the tax disclosure and the extent of tax planning, and this relationship is highly significant. Examination of the implications of corporate governance mechanisms on the tax disclosure-tax planning association showed the lack of a significant coefficient related to any of the interactive variables. This makes it hard to understand the nature of the association. Finally, we further study the sensitivity of the results, the outcomes were also examined for the robustness and strength of the model specification utilizing OLS-effect estimators and the absence of tax planning related factors (GRTH, LEVE, and CAPNT). The findings of these tests display there is no effect on the tax planning-tax disclosure association. The outcomes of the annual regressions test show that the panel regressions results differ over time because there is a time difference impact on the associations, and the different models are not completely proportionate as a whole. Moreover, our paper lends some support to recent theory on the importance of taxes to corporate governance by demonstrating how the agency costs of tax planning allow certain shareholders to benefit from firm activities at the expense of others.

Keywords: tax disclosure, tax planning, corporate governance, effective tax rate

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Authors: Arnold Sanda Layuk

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Fraud in the disclosure of financial statements by management shows that agency conflict is an important issue in the company. The conflict has consequences for the agency costs that must be borne and has an impact on the firm's performance. The effect of agency costs on firm performance is investigated in this study, as well as whether several variables such as corporate governance mechanisms can positively moderate the agency cost and firm performance relationship. The agency cost is measured by the asset utilization ratio and discretionary expenditure ratio. The firm's performance is represented by the return on equity. Data was collected from the manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2019, then regressed on the panel data using the panel corrected standard error model (PCSE). According to the findings, agency costs are negatively related to firm performance, which supports previous empirical research findings. It also found that the agency cost and firm performance relationship is significantly moderated by board size and ownership concentration as the representatives of corporate governance mechanisms. It suggests that corporate governance can become tools to reduce agency costs and increase firm performance as well. The empirical evidence adds to previous research on agency conflict, particularly in emerging markets. These findings are expected to supplement previous research and provide additional information to shareholders in order to control opportunistic management decisions that affect their investments and discretionary operational expenses.

Keywords: agency cost, corporate governance, asset utilization ratio, firm performance

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Authors: Monjur E-Khoda Tarafdar

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Institutional autonomy and academic freedom corresponding to accountability are seen as a core concept of university governance. Universities are crucial factors in search of truth for knowledge production and dissemination. Academic leaders are the pivots to progressively influence the university governance. Therefore, in a continuum of debate about autonomy and accountability in the aspect of perception, academic leadership has been studied. Having longstanding acquaintance in the field the researcher has been instrumental to gain lived experiences of the informants in this qualitative study. Case studies are useful to gain an understanding of the complexities of a particular site to preserve a sense of wholeness of the site being investigated. Thus, multiple case study approach has been employed with a sample size of seventy-one. Such large size of informants was interviewed in order to capture a wider range of views that exist in Bangladesh. This qualitative multiple case study has engaged in-depth interviewing method of academic leaders and policy makers of three case universities. Open-ended semi-structured questionnaires are used to have a comprehensive understanding of how the perception of autonomy and accountability of academic leaders has impacted university governance in the context of Bangladesh. The paper has interpreted the voices of the informants and distinguished both the transformational and transactional style of academic leaderships in local university settings against the globally changed higher education demography. The study finds contextual dissimilarity in the perspectives of autonomy and accountability of academic leadership towards university governance. Unaccountability results in losing autonomous power and collapsing academic excellence. Since accountability grows competitiveness and competence, the paper also focuses on how academic leaders abuse the premise of academic loyalty to universities.

Keywords: academic loyalty, accountability, autonomy, leadership, perception, university governance

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Authors: Anthony Townley

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Contract negotiation is fundamental to commercial law practice. For this study, genre and discourse analytical methodology was used to examine the legal negotiation of a Merger & Acquisition (M&A) deal undertaken by legal and business professionals in English across different jurisdictions in Europe. While some of the most delicate negotiations involved in this process were carried on face-to-face or over the telephone, these were generally progressed more systematically – and on the record – in the form of emails, email attachments, and as comments and amendments recorded in successive ‘marked-up’ versions of the contracts under negotiation. This large corpus of textual data was originally obtained by the author, in 2012, for the purpose of doctoral research. For this study, the analysis is particularly concerned with the use of emails and covering letters to exchange legal advice about the negotiations. These two genres help to stabilize and progress the negotiation process and account for negotiation activities. Swalesian analysis of functional Moves and Steps was able to identify structural similarities and differences between these text types and to identify certain salient discursive features within them. The analytical findings also indicate how particular linguistic strategies are more appropriately and more effectively associated with one legal genre rather than another. The concept of intertextuality is an important dimension of contract negotiation discourse and this study also examined how the discursive relationships between the different texts influence the way that texts are constructed. In terms of materials development, the research findings can contribute to more authentic English for Legal & Business Purposes pedagogies for students and novice lawyers and business professionals. The findings can first be used to design discursive maps that provide learners with a coherent account of the intertextual nature of the contract negotiation process. These discursive maps can then function as a framework in which to present detailed findings about the textual and structural features of the text types by applying the Swalesian genre analysis. Based on this acquired knowledge of the textual nature of contract negotiation, the authentic discourse materials can then be used to provide learners with practical opportunities to role-play negotiation activities and experience professional ways of thinking and using language in preparation for the written discourse challenges they will face in this important area of legal and business practice.

Keywords: English for legal and business purposes, discourse analysis, genre analysis, intertextuality, pedagogical materials

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Authors: Rossouw De Bruin, Sebastiaan H. Von Solms

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The state of national security is an evolving concern. Companies, organizations, governments, states and individuals are aware of the security of their information and their assets however, they may not always be aware of the risks present. These risks are not only limited to non-existence of security procedures. Existing security can be severely flawed, especially if there is non-conformance towards policies, practices and procedures. When looking at humanitarian actions, we can easily identify these flaws. Unfortunately, humanitarian aid has to compete with factors from within the states, countries and continents they are working in. Furthermore, as technology improves, so does our connectivity to the internet and the way in which we use the internet. However, there are times when security is overlooked and humanitarian agencies are some of the agencies that do not always take security into consideration. The purpose of this paper will be to introduce the importance of cybersecurity and cybersecurity governance with respect to humanitarian work. We will also introduce and briefly discuss a model that can be used by humanitarian agencies to assess, manage and maintain their cybersecurity efforts.

Keywords: humanities, cybersecurity, cybersecurity governance, maturity, cybersecurity maturity, maturity model

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Authors: Md. Awal Hossain Mollah

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Corporate governance is playing a crucial role for ensuring social accountability and responsibility of business organization through Corporate Social Responsibility (CSR) for the last two decades. In Bangladesh, CSR is a growing and popular concept and a recent development. Various business and corporate organizations are playing crucial role for helping vulnerable sections of our society now. For instance, Dutch Bangla Bank has been providing scholarship for under graduate and graduate students in our country which is very helpful for promoting poor and meritorious students in Bangladesh. In this study, how far CSR is playing its role for ensuring human right in Bangladesh will be examined with specific case studies. The study focus will reflect on both developed and developing nations based on literature review and possible empirical evidence.

Keywords: CSR, corporate governance, social security, Bangladesh, scholarships, graduate students, Dutch angla Bank

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Authors: Jaqueline Nichi, Leila Da Costa Ferreira, Fabiana Barbi Seleguim, Gabriela Marques Di Giulio, Mariana Barbieri

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The transport sector is responsible for approximately 55% of global greenhouse gas (GHG) emissions, in addition to pollution and other negative externalities, such as road accidents and congestion, that impact the routine of those who live in large cities. The objective of this article is to discuss the application and use of distinct mobility technologies such as climate adaptation and mitigation measures in the context of smart cities in the Global South. The documentary analysis is associated with 22 semi structured interviews with managers who work with mobility technologies in the public and private sectors and in civil society organizations to explore solutions in multilevel governance for smart and low-carbon mobility based on the case study from the city of São Paulo, Brazil. The hypothesis that innovation and technology to mitigate and adapt to climate impacts are not yet sufficient to make mobility more sustainable has been confirmed. The results indicate four relevant aspects for advancing a climate agenda in smart cities: integrated planning, coproduction of knowledge, experiments in governance, and new means of financing to guarantee the sustainable sociotechnical transition of the sector.

Keywords: urban mobility, climate change, smart cities, multilevel governance

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Authors: Adelina Vrancianu

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A public procurement procedure starts with the publication of the contract notice and the tender documentation. The documentation provides bidders with general guidelines and rules governing the tender process. At this stage, the interested economic operators start to prepare their bid. During this process, they may encounter unclear elements that, if are not clarified, may have a negative impact on the future bid with the ultimate sanction of exclusion. Until the opening of the bids, the potential bidders have the right to ask questions in order to clarify certain aspects of the tender documentation. In correlation, the contracting authorities have the obligation to answer these questions in a reasoned time and with clarity. In practice, the two conditions are not met due to a number of factors. This essay tries to outline the general principles regarding the clarifications during the phase of tender preparation. The provisions of the new directive on public procurement will be taken in consideration in this process in regard to the old directive.

Keywords: tender preparation, tender documentation, clarifications, contract notice

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Authors: Juhan Kim, Jinsoo Kim

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South Korea cannot import natural gas in any form other than LNG because of the division of South and North Korea. Further, the high proportion of natural gas in the national energy mix makes this resource crucial for energy security in Korea. Expansion of Panama Canal will allow for reducing the cost of shipping between the Far East and U.S East. Panama Canal expansion can have significant impacts on South Korea. Due to this situation, we review the natural gas optimal portfolio by considering the uniqueness of the Korean Natural gas market and expansion of Panama Canal. In order to assess Korea’s natural gas optimal portfolio, we developed natural gas portfolio model. The model comprises two steps. First, to obtain the optimal long-term spot contract ratio, the study examines the price level and the correlation between spot and long-term contracts by using the Markowitz, portfolio model. The optimal long-term spot contract ratio follows the efficient frontier of the cost/risk level related to this price level and degree of correlation. Second, by applying the obtained long-term contract purchase ratio as the constraint in the linear programming portfolio model, we determined the natural gas optimal import portfolio that minimizes total intangible and tangible costs. Using this model, we derived the optimal natural gas portfolio considering the expansion of Panama Canal. Based on these results, we assess the portfolio for natural gas import to Korea from the perspective of energy security and present some relevant policy proposals.

Keywords: natural gas, Panama Canal, portfolio analysis, South Korea

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Authors: Khalid Alshaikh

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In recent years, leadership, Corporate Governance (CG) and Corporate Social Responsibility (CSR) have been under scrutiny in the Libyan society. Scholars and institutions have commenced investigating the possible resolutions they can arrange to alleviate the economic, social and environmental problems the war has produced. Thus far, these constructs requisite an in-depth reinvestigation, reconceptualization, and analysis to clearly reconstruct their rules and regulations. With the demise of Qaddafi’s regime, levels, degrees, and efforts to apply CG regulations have varied in public and private commercial banks. CSR is a new organizational culture that still designs its route within these financial institutions. Detaching itself from any notion of dictatorship and autocratic traits, leadership counts on transformational and transactional styles. Therefore, this paper investigates the extent to which the Board of Directors and Chief Executive Officers (CEOs) redefine these concepts and how they entrench CSR within the framework of CG. The research methodology used both public and private banks as a case study and qualitative research to interview ten Board of Directors (BoDs) and eleven Chief executive managers to explore how leadership, CG, and CSR are defined and how leadership integrates CSR into CG structures. The findings suggest that the CG framework in Libya still requires great efforts to be developed. Full CG code implementation appears daunting. Also, the CSR is still influenced by the power of religion. Nevertheless, the Islamic perspective is more consistent with the social contract concept of the CSR. The Libyan commercial banks do not solely focus on the economic side of maximizing profits, but also concentrate on its morality. The issue is that CSR activities are not enough to achieve good charity publicly and needs strategies to address major social issues. Moreover, leadership is more transformational and transactional and endeavors to make economic, social and environmental changes, but these changes are curtailed by tradition and traditional values dominating the Libyan social life where religious and tribal practices establish the relationship between leaders and their subordinates. Finally, the findings reveal that transformational and transactional leadership styles encourage the incorporation of CSR into the CG regulations. The boardroom and executive management have such a particular role in flagging up how embedded corporate Social responsibility is in organizational culture across the commercial banks, yet it is still important that the BoDs and CEOs need to do much more to embed corporate social responsibility through their core functions. They need to boost their standing to be more influential and make sure that the right discussions about CSR happen with the right stakeholders involved.

Keywords: board of directors, chief executive officers, corporate governance, corporate social responsibility

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Authors: Ons Triki, Fathi Abid

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Along with the increase in the use of leasing contracts in corporate finance, multiple studies aim to model the credit risk of the lease in order to cover the losses of the lessor of the asset if the lessee goes bankrupt. In the current research paper, a convertible lease contract is elaborated in a continuous time stochastic universe aiming to ensure the financial stability of the firm and quickly recover the losses of the counterparties to the lease in case of default. This work examines the term structure of the lease rates taking into account the credit default risk and the capital structure of the firm. The interaction between the lessee's capital structure and the equilibrium lease rate has been assessed by applying the competitive lease market argument developed by Grenadier (1996) and the endogenous structural default model set forward by Leland and Toft (1996). The cumulative probability of default was calculated by referring to Leland and Toft (1996) and Yildirim and Huan (2006). Additionally, the link between lessee credit risk and lease rate was addressed so as to explore the impact of convertible lease financing on the term structure of the lease rate, the optimal leverage ratio, the cumulative default probability, and the optimal firm value by applying an endogenous conversion threshold. The numerical analysis is suggestive that the duration structure of lease rates increases with the increase in the degree of the market price of risk. The maximal value of the firm decreases with the effect of the optimal leverage ratio. The results are indicative that the cumulative probability of default increases with the maturity of the lease contract if the volatility of the asset service flows is significant. Introducing the convertible lease contract will increase the optimal value of the firm as a function of asset volatility for a high initial service flow level and a conversion ratio close to 1.

Keywords: convertible lease contract, lease rate, credit-risk, capital structure, default probability

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Authors: Ghaleb Y. Abbasi, Sufyan Al-Mrayat

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This study examined the contribution of thirty-six factors to building construction project’s cost overrun in Jordan. A questionnaire was distributed to a random sample of 350 stakeholders comprised of owners, consultants, and contractors, of which 285 responded. SPSS analysis was conducted to identify the top five causes of cost overrun, which were a large number of variation orders, inadequate quantities provided in the contract, misunderstanding of the project plan, incomplete bid documents, and choosing the lowest price in the contract bidding. There was an agreement among the study participants in ranking the factors contributing to cost overrun, which indicated that these factors were very commonly encountered in most construction projects in Jordan. Thus, it is crucial to enhance the collaboration among the different project stakeholders to understand the project’s objectives and set a realistic plan that takes into consideration all the factors that might influence the project cost, which might eventually prevent cost overrun.

Keywords: cost, overrun, building construction projects, Jordan

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Authors: Guenther Schuh, Sebastian Woelk

Abstract:

Companies face increasing challenges in research due to higher costs and risks. The intensifying technology complexity and interdisciplinarity require unique know-how. Therefore, companies need to decide whether research shall be conducted internally or externally with partners. On the other hand, research institutes meet increasing efforts to achieve good financing and to maintain high research reputation. Therefore, relevant research topics need to be identified and specialization of competency is necessary. However, additional competences for solving interdisciplinary research projects are also often required. Secured financing can be achieved by bonding industry partners as well as public fundings. The realization of faster and better research drives companies and research institutes to cooperate in organized research networks, which are managed by an administrative organization. For an effective and efficient cooperation, necessary processes, roles, tools and a set of rules need to be determined. The goal of this paper is to show the state-of-art research and to propose a governance framework for organized research networks.

Keywords: interorganizational cooperation, design of network governance, research network

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Authors: Ndagi Salihu

Abstract:

Corporate governance mechanisms are the control measures for ensuring that all the interests groups are equally represented and management are working towards wealth creation in the interest of all. Therefore, there are many empirical studies during the last three decades on corporate governance and firm performance. However, little is known about the effects of family ownership on the relationship between corporate governance and firm performance, especially in the developing economy like Nigeria. This limit our understanding of the unique governance dynamics of family ownership with regards firm performance. This study examined the impact of family ownership on the relationship between governance mechanisms and financial performance of publicly listed companies in Nigeria. The study adopted quantitative research methodology using correlational ex-post factor design and secondary data from annual reports and accounts of a sample of 23 listed companies for a period of 5 years (2014-2018). The explanatory variables are the board size, board composition, board financial expertise, and board audit committee attributes. Financial performance is proxy by Return on Assets (ROA) and Return on Equity (ROE). Multiple panel regression technique of data analysis was employed in the analysis, and the study found that family ownership has a significant positive effect on the relationships between corporate governance mechanisms and financial performance of publicly listed firms in Nigeria. This finding is the same for both the ROA and ROE. However, the findings indicate that board size, board financial expertise, and board audit committee attributes have a significant positive impact on the ROA and ROE of the sample firms after the moderation. Moreover, board composition has significant positive effect on financial performance of the sample listed firms in terms of ROA and ROE. The study concludes that the use of family ownership in the control of firms in Nigeria could improve performance by reducing the opportunistic actions managers as well as agency problems. The study recommends that publicly listed companies in Nigeria should allow significant family ownership of equities and participation in management.

Keywords: profitability, board characteristics, agency theory, stakeholders

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Authors: Sami Kabir, Sadek Hossain Khoka

Abstract:

Open Government Data (OGD) refers to all data produced by government which are accessible in reusable way by common people with access to Internet and at free of cost. In line with “Digital Bangladesh” vision of Bangladesh government, the concept of open data has been gaining momentum in the country. Opening all government data in digital and customizable format from single platform can enhance e-governance which will make government more transparent to the people. This paper presents a well-in-progress case study on OGD portal by Bangladesh Government in order to link decentralized data. The initiative is intended to facilitate e-service towards citizens through this one-stop web portal. The paper further discusses ways of collecting data in digital format from relevant agencies with a view to making it publicly available through this single point of access. Further, possible layout of this web portal is presented.

Keywords: e-governance, one-stop web portal, open government data, reusable data, web of data

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Authors: Puti F. Marzuki, Adrianto Oktavianus, Almerinda Regina

Abstract:

Interface problems among interacting parties in Indonesian construction projects have most often led to low productivity and completion delay. In the midst of this country’s needs to accelerate construction of public infrastructure providing connectivity among regions and supporting economic growth as well as better living quality, project delays have to be seriously addressed. This paper identifies potential causes factors of interface problems experienced by construction projects in Indonesia. Data are collected through a survey involving the main actors of six important public infrastructure construction projects including railway, LRT, sports stadiums, apartment, and education building construction projects. Five of these projects adopt the design-build project delivery method and one applies the design-bid-build scheme. Interface problems’ potential causes are categorized into contract, management, technical experience, coordination, financial, and environmental factors. Research results reveal that, especially in railway and LRT projects, potential causes of interface problems are mainly technical and managerial in nature. These relate to complex construction execution in highly congested areas. Meanwhile, coordination cause factors are mainly found in the education building construction project with loan from a foreign donor. All of the six projects have to resolve interface problems caused by incomplete or low-quality contract documents. This research also shows that the design-bid-build delivery method involving more parties in construction projects tends to induce more interface problem cause factors than the design-build scheme.

Keywords: cause factors, construction delays, project delivery method, contract documents

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Authors: Norazlan Alias, Mohd. Hasimi Yaacob

Abstract:

This study examines the impact of governance structure via corporate restructuring decision on selected firm characteristics and performance. Results of selected ratios that represent corporate decision, governance structure and performance in pre and post restructuring are analyzed for some conclusions. This study uses annual data of companies that are consistently listed on the Main Board of Bursa Malaysia and announced completed corporate restructuring. The results show that only debt ratio is significantly different before and after asset restructuring. This study concludes that firms do not view corporate restructuring namely asset restructuring as an opportunity to simultaneous enhance governance structure that could also contribute enhance firm performance and board of directors’ structure subsequent to asset restructuring only has significantly influence on changing capital structure but not on firm performance.

Keywords: board of directors, capital structure, corporate restructuring, performance

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Authors: A. R. Nor Azlina, H. Salwana, I. Zuraeda, A. R. Rashidah, O. Normah

Abstract:

Transitioning towards globalization in the business environment has necessitated more essential growing changes such as competition, business strategy, innovation in technology and effectiveness of societal trends on adopting corporate governance are seen to be drivers of the future. This transformations on business environment has a significant impact to organizations’ performances. Many organizations are demanding for more proactive entrepreneurs with dynamic team, who can run and steer their business to success. Changing on strategy, roles, tasks, entrepreneurial skills and implementing corporate governance in relationship development is important to enhance the organization’s performance towards being more cost-efficient and subsequently increase its efficiency. Small Medium Enterprises (SMEs) in most developing countries are contributors to the economic growth of a nation. However, the potential of Microfinance Institutions (MFIs) is always overlooked in contributing towards SMEs development. The adoption of corporate governance and accountability in MFIs as driving forces for these SMEs is not incorporated in measurements of organization performance. This paper attempts to address some of the governance issues associated with dimensions of accountability in improving performances of microfinance institutions. Qualitative approach was adopted in this study to analyze the data collected. The qualitative approach emerges as contributing factor in understanding and critiquing accountability processes, as well as addressing the concerns of practitioners and policymakers. A close researcher engagement with the field which concerns process, embracing of situational complexity, as well as critical and reflective understandings of organizational phenomena remain as hallmarks of the tradition. It is concluded that in describing and scrutinizing an understanding of managerial behavior, organizational factors and macro-economic relationship in SMEs firm need to be improved. This is also the case in MFIs. A framework is developed to explore the linkage of corporate governance and accountability issues related to entrepreneurship as factors affecting MFIs performances in facing ongoing transformation of organization performance within Malaysian SMEs industries.

Keywords: accountability, corporate governance, microfinance, organization performance

Procedia PDF Downloads 364