Journal of Governance and Regulation

Journal Information
ISSN / EISSN : 2220-9352 / 2306-6784
Current Publisher: Virtus Interpress (10.22495)
Total articles ≅ 451
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Latest articles in this journal

Radhi Al-Hamadeen, Turki AlHmoud, Hasan El-Nader, Malek Alsharairi, Firas Almasri
Journal of Governance and Regulation, Volume 10, pp 125-138; doi:10.22495/jgrv10i1art12

This study investigates how corporate boards of directors influence the quality of external audit in a sample of service firms listed on the Amman Stock Exchange (ASE). We contribute to the literature by providing empirical evidence on the efficacy of the corporate governance mechanisms through corporate boards to influence audit quality in an emerging country setting (i.e., Jordan). According to Chua (1986), this is mainstream “market-based” accounting research. We regress multiple dimensions that capture the quality of financial statements’ audit on a group of board of directors (BoD) characteristics for total observations of 225 firm-year obtained for 45 companies during the period (2014-2018). Specifically, the multidimensional analysis of the response variable, audit quality, includes audit firm’s internationalization, audit fees, auditor tenure, and the number of licensed practitioners at the audit firm. Using multiple linear (Panel Least Squares – PLS) and logistic regression models, we document empirical evidence that audit quality is positively affected by the independence and size of boards but negatively affected by CEOs duality, while no influence of the board’s expertise on any measures of the audit quality. The study provides implications for policymakers and investors regarding the signals that firms can send regarding the quality of financial statements audit when complying with the best practices of corporate governance
Abdelsalam Al-Rashid, Rawan Al-Hiyari, Ghazi A Samawi, , Loay Salhieh
Journal of Governance and Regulation, Volume 10, pp 112-124; doi:10.22495/jgrv10i1art11

Purchasing has been viewed in recent literature as a strategic contributor to achieve competitiveness. However, purchasing models in extant literature lack a comprehensive approach to define the variety of purchasing practices implemented in each purchasing strategic category. This paper provides a rich description and an empirical assessment of different practices in the purchasing construct. The study proposes a framework to allocate a variety of purchasing practices according to their strategic priorities that need to be achieved. An abductive approach was used. Based on reviewed literature and in-depth interviews with ten academic consultants and purchasing managers, a Likert scale questionnaire administered to purchasing executives representing manufacturing companies registered in the Amman Stock Exchange from 62 companies in 11 industries. The questionnaire explored purchasing practices related to cost (13 items), quality (10 items), and availability (4 items). The results indicate that purchasing practices can be grouped into three categories including cost practices, quality practices, and availability practices. There is a significant relationship between different purchasing practices and related strategic priorities. Purchasing practices can be utilized to achieve multiple strategic priorities. This paper provides some insights for future research in the area purchasing practices.
Isaac Francis Antwi, , Cecília Carmo
Journal of Governance and Regulation, Volume 10, pp 96-111; doi:10.22495/jgrv10i1art10

After decades of many corporate scandals and financial meltdowns, the quest for effective corporate governance and firm performance has raised the concern of a lot of academicians, practitioners, and researchers regarding articles written on this issue. This study seeks to review corporate governance and firm performance articles written in Ghana under the author’s keywords in order to fulfill the objective. The goal is to identify the research trend and then to suggest the idea of future research directions. The study has conducted a review of corporate governance research by searching at Scopus and Web of Science research databases from 2006 to 2020 to prepare the list of articles. A comprehensive review of recent corporate governance and firm performance literature is essential because it provides a basis for comparing Ghana’s corporate governance research experience with other emerging economies in other continents. The findings reveal that two keywords on corporate governance analysed in this study – board composition and ownership – have many written articles, while compensation has the least number of articles. However, in the future, gender diversity and audit committee may be investigated since it has received global attention.
Sarwani Sarwani, T. Husain
Journal of Governance and Regulation, Volume 10, pp 83-95; doi:10.22495/jgrv10i1art9

Individuals and organizations cannot avoid the era of the Fourth Industrial Revolution (Industry 4.0) in any part of the world by utilizing the latest technological bases. These transformations will change the way humans live and interact in the future. Enterprise decisions are taken and become the most important from the firm’s value empirical models. This study aims to establish the implications of an empirical model of a firm’s value through some determinant factors, i.e., financial ratios with profitability and leverage, intellectual capital with human capital employment, the dividend policy, and audit quality with Big 4 category proxy. The research uses a causal-comparative type with a quantitative approach. Eleven final samples of automotive and components subsectors enterprises of the listed shares in Indonesian Stock Exchange (IDX) were appointed, from 2013 till 2019 by purposive sampling technique. Multiple regression was applied to analyze data on the proposed equation models. The findings state that the profitability and audit quality has positive significance, but leverage, intellectual capital, and dividend policy insignificant implications for predicting the firm’s value empirical model.
Stefania Sylos Labini, Francesca Donofrio
Journal of Governance and Regulation, Volume 10, pp 74-82; doi:10.22495/jgrv10i1art8

In times of the COVID-19 pandemic, banks are in the spotlight. On the one hand, they suffer from the inevitable negative repercussions on their performances (McKinsey, 2020); on the other hand, they are called upon to support the entire economy with timely interventions (EBA, 2020a). Within this scenario, the attention to the remuneration of top managers grows even more than in the past. Banks are expected to review their top management compensations, to make them financially and ethically compatible with the general situation (Camuffo, 2009). This study aims to investigate whether the COVID-19 pandemic incentivized changes in policies adopted by banks. In detail, we verify whether European significant banks, induced by the pandemic crisis, 1) introduced changes to remuneration policies and/or 2) adopted other measures – different from the remuneration ones. To that end, we analysed all official bank press releases published on websites during the first wave of the pandemic, using content analysis methodology. The results of our analysis show a wide spread of interventions carried out by banks to face global pandemic not so much concerning remuneration policies, but rather related to other areas, such as supporting the real economy, through donations to hospitals, volunteering associations or businesses in difficulty. Our paper contributes to the existing literature by providing a truly an up-to-date overview of bank reactions in times of crisis.
Ralph Marenga
Journal of Governance and Regulation, Volume 10, pp 58-73; doi:10.22495/jgrv10i1art7

The reduced representation and tenure of women as public enterprise (PE) principals in Namibia as an emerging market and developing country are concerning (Mboti, 2014; Menges, 2020). The contributing factors are an element literature fails to address explicitly in the Namibian case. This paper, therefore, aims to consolidate evidence on whether the underrepresentation and limited tenures of female principals in Namibian PEs signal a protracted dearth of women in such positions. Methodically, a desk review is used to analyse the literature. Key findings of this paper identify the absence of top-down hands-on leadership; legal and policy implementation gaps; failure to declare gender diversity as imperative in the public sector; failure to focus on helping women gain broad line experience early on, among others, as contributing factors that have disadvantaged female principals in Namibian PEs. The challenges women face in being appointed or completing their tenure as PE principals over the years signal a protracted dearth of women in positions of PE principals in Namibia. Understanding these dynamics is relevant for enhancing Namibia’s policy efforts to curb the further proliferation of patriarchy as nuanced in the glass ceiling. This paper recommends the robust implementation of existing anti-patriarchy legislation.
Journal of Governance and Regulation, Volume 10, pp 49-57; doi:10.22495/jgrv10i1art6

Based on data of all listed insurance companies in Jordan over the period of 2008-2018, the study investigates the effect of chairman of the board of directors (chair) and chief executive officer (CEO) age variation on risk-taking behavior via different chair-CEO age variation proxies. Risk-taking behavior is measured by total risk, a proxy set up on the market’s risk perception. Thus, the study finds evidence that the chair-CEO age variation tends to decrease risk-taking practice in Jordan’s insurance companies, only if a generation gap exists. It doesn’t matter whether the chair or CEO is older. These results are consistent with Goergen, Limbach, and Scholz (2015) and Zhou, Kara, and Molyneux (2019). Different robustness tests (CEO-firm fixed effect, random effect, and dynamic panel estimation) confirm results. Overall, this study contributes to corporate governance literature; thus, enhancing the internal corporate governance mechanism is essential. Finally, it has a practical implication for stakeholders, policymakers, and researchers.
Haitham A. Haloush, Hashem Alshurafat, Ahmad Abed Alla Alhusban
Journal of Governance and Regulation, Volume 10, pp 42-48; doi:10.22495/jgrv10i1art5

Since the emergence of the profession, auditors’ liability is recognized as a controversial and loose debating matter (Flores, 2011). This everlasting issue not only differs among contexts but also differ among the lawsuits. Consequently, as an essential step, this research endeavors to provide a full understanding of the extent and nature of auditors’ legal liability according to the Jordanian relevant regulations. To do so, the authors gain a full capture of the regulation through a qualitative-analytical study. Consequently, the authors found that in Jordan auditors are subject to different standards of proof before the judiciary. Therefore, judges in Jordan are bound to understand the peculiar technical-legal nature of auditors’ liability. Although the Jordanian regulations state clearly that an auditor is obliged to compensate for any realized damage or lost profit incurred as a result of errors committed by him/her, it must be borne in mind that lost profit is not recognized, and therefore, not entitled to compensation under the Jordanian Contract Law. In some cases, auditors’ liability might be increased to one of fitness for intended purposes, instead of reasonable care. Undoubtedly, this paper has serious legal implications in construing the wording of legal provisions and ensuing obligations and liabilities thereof.
Hadeel Yaseen, Asma’A Al-Amarneh
Journal of Governance and Regulation, Volume 10, pp 35-41; doi:10.22495/jgrv10i1art4

Using the value added intellectual capital (VAIC) this study aims to investigate the impact of intellectual capital (IC) on the performance of Jordanian banks listed in the Amman Stock Exchange (ASE) during the years 2005-2018. Two empirical models were designed to test the effect of VAIC, and its three components including capital employed efficiency (CEE), human capital efficiency (HCE) and structural capital efficiency (SCE) on banking performance. The results of the study show that there is a significant and positive relationship between VAIC and banks profitability presented by return on assets (ROA). Meanwhile, when VAIC is split into components, SCE, CEE and HCE have a significant and positive impact on banks performance. Yet, CEE has more influence on performance compared to HCE and SCE. This study contributes to the literature as well as practitioners in financial institutions by providing evidence on the influence of intellectual capital on banks performance in an emerging economy, Jordan, in which its national vision and strategy emphasize the importance of intellectual capital in sustaining its economic growth.
Le Thi Thanh Tam, Hoang Dinh Thai, Pham Thi Thanh Hai, , Tran Chi Thanh
Journal of Governance and Regulation, Volume 10, pp 29-34; doi:10.22495/jgrv10i1art3

Emerging economies are facing problems in the administration and compliance with intellectual property protection in their countries. The IP term is now much more familiar to the public, but it is not well understood completely in a lawful way. The public is misinformed (or, at best, under-informed) about IP leading to higher levels of infringement as well as reducing the use and value of IP. Our study aimed to determine the level of perceptions, awareness, and behavior (PAB) on IP Protection of the medical technology students with the cross-sectional on-line survey on 795 students by electronic European Union Intellectual Property Office (EUIPO) questionnaire. The overall level of PAB was very high, greater than three quarters. The demographic factors related significantly to right PAB on IP protection were sex (female higher than male) and residency (other cities higher than Ho Chi Minh City). Only the awareness had the covariance with the behavior in structural equation modeling (SEM) model with a significant coefficient of 0.55. We should focus on an education program to increase the right awareness, then it would improve the right behavior on intellectual property protection in students who are living in the emerging countries.
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