Journal of Governance and Regulation

Journal Information
ISSN / EISSN : 2220-9352 / 2306-6784
Current Publisher: Virtus Interpress (10.22495)
Total articles ≅ 428
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Latest articles in this journal

Jameel Aljaloudi
Journal of Governance and Regulation, Volume 9, pp 37-46; doi:10.22495/jgrv9i4art3

Muhammad Mahboob Ali
Journal of Governance and Regulation, Volume 9, pp 25-36; doi:10.22495/jgrv9i4art2

Digitization has transformed societies and economies throughout the world. This exploratory and explanatory research has been performed in the context of digitization of Bangladesh economy. The research question is whether the transformation of Bangladesh towards the digital economy can act effectively and efficiently for the benefits of the society and the economy. Quantitative and qualitative analysis was conducted. Sixteen hypotheses were tested based on the Chi-square test. The time period of the study was from April 1, 2019, to December 31, 2019. The Chi-square test findings were significant for the following null hypotheses: Internet of Thinking will not bring benefits of the human beings; robots are not needed for industries; big data cannot be used for the business intelligence; artificial intelligence (AI) is not effective; bitcoin transactions should not be allowed; the banking sector is not relatively digitalized; chatbots do not need to be used in banks; drones cannot be used for commercial purpose; robots cannot be used for education purpose; farmers must not learn to yield wirelessly. Another six null hypotheses were rejected. Fear of losing employment was the key obstruction to execute the 4th Industrial Revolution (4IR) in the country as revealed from the study. Proper information and communication technology (ICT) based education, preparation and knowledge were required. Good governance and regulation should be established with the help of digitization in Bangladesh. The study is suggested to answer the research question, if the benefit from transforming the society to the digital economy may outweigh negative impacts and turn threats into opportunities, reduce demand for labor and disguised unemployment and narrow down the scope of creating new employment opportunities in the country. The potential unlocking system in the global market is feasible through ensuring digitization of Bangladesh society.
Amrie Firmansyah, Riska Septiana Estutik
Journal of Governance and Regulation, Volume 9, pp 8-24; doi:10.22495/jgrv9i4art1

The self-assessment system tends to provide a loophole for companies to reduce tax payment. The great benefit of the tax to the community links tax with social responsibility. This study aims to investigate the effect of environmental responsibility performance and social responsibility disclosure on tax aggressiveness as well as the role of corporate governance in moderating these effects. The analysis in this study was conducted on 34 non-financial companies listed on the Indonesia Stock Exchange and were participants of 2014-2018 PROPER selected using purposive sampling so that 170 observations were obtained. This study employs two-panel data regression models, namely models with and without corporate governance, as a moderating variable. The result suggests that environmental responsibility performance and social responsibility disclosure are negatively associated with tax aggressiveness. However, corporate governance fails to strengthen these negative influences
Journal of Governance and Regulation; doi:10.22495/jgr

Gonca Atici
Journal of Governance and Regulation, Volume 9, pp 4-6; doi:10.22495/jgrv9i3editorial

In light of challenges such as Covid-19 and social isolation and opportunities in terms of digital transformation, the editorial team is delighted to share a new issue of the Journal of Governance and Regulation. In particular, the latest 2020 issue 3 of volume 9 hosts very interesting, original, inspiring and influencing studies of various authors from different parts of the world. Studies belong to the fields of corporate governance, green information technology and environmental performance, sustainable development, capital efficiency in the insurance market, regulations in banking industry, performance of public enterprises, inequality and tax policy, slate-vote system and corporate ownership and governance under Covid-19.
Gonca Atici, Guner Gursoy
Journal of Governance and Regulation, Volume 9, pp 132-143; doi:10.22495/jgrv9i3art10

The purpose of this study is to analyze trends of non-financial corporations listed on Borsa Istanbul (BIST) in terms of ownership structure for the period of 2002-2019. According to our findings, Turkish non-financial corporations reveal a concentrated nature as an example of family capitalism. Findings also reveal that initial public offerings are mainly from family-controlled corporations. This is noteworthy as corporations integrate more to the capital markets of Turkey. Besides, they get more disciplined as they subject to the regulations of the governing bodies and internalise corporate governance criteria. In terms of ownership mix, findings denote that non-financial corporations listed on BIST benefit from the advantages of conglomerates, cross-ownership, and foreign ownership in line with the literature. Contrary to several emerging economies, state-ownership has a minor share which renders strength and quality of governance level. The concentrated nature of corporations is believed to have a positive effect on governance mechanisms for controlling agency problems especially in the environment of uncertainty during COVID-19. Although Turkish capital markets have promising and progressing corporate governance mechanisms, steps to build up advanced digital governance mechanisms for the “digital new normal” should be taken as soon as possible.
Francesca Cappellieri
Journal of Governance and Regulation, Volume 9, pp 122-131; doi:10.22495/jgrv9i3art9

Many corporate scandals shed new light on the risks associated with related party transaction (RPT), increasing the suspicious attitude and the negative perceptions that generally accompany these operations. In particular, in a high ownership concentration setting – as the Italian market – RPTs could be used by majority shareholders to tunnel resources, stimulating an undue appropriation of private benefits of control to the detriment of minority shareholders (self-dealing transactions). This paper contributes to the existing literature, analysing the slate-vote system’s impact on the risks related to RPTs that pursue opportunistic purposes. The study aims to investigate the role that this corporate governance mechanism plays on the strictness of procedures and transparency of RPT disclosure, in the Italian institutional setting. More specifically, it identifies the anti-tunneling tools to protect minority shareholders aimed to prevent harmful transactions (ex-ante screening mechanism) and monitor the quality of RPT information conveyed to the market (ex-post screening mechanism). The analysis of an explanatory Italian case study offers an opportunity to gather evidence on the costs of these transactions and the role of minorities in fairness and transparency of the RPT procedure.
Jasper Kim
Journal of Governance and Regulation, Volume 9, pp 110-121; doi:10.22495/jgrv9i3art8

The theoretical literature on inequality and tax policy contains compelling and competing arguments for and against the inclusion of inequality measures and metrics into tax policy. Some tax policy arguments reflect equity-efficiency tradeoffs. Other tax policy arguments reflect attempts at achieving greater equity (fairness) through further inclusion of inequality over efficiency. The third school of thought seeks a middle ground, with arguments for achieving both lower income inequality and higher economic growth. Thus, the research question analyzed in this article and present in all three aforementioned policy views is whether inequality should be included in tax policy and design. This article implements an interpretivist methodological approach relating to tax policy, augmenting and complementing the relevant research and seminal scholarship of Saez and Zucman (2019), Mirrlees (1971) and Akerlof (1978), among others. This article argues that in balancing the current research literature and evidence, inequality measures incorporating equity and fairness should be part of tax policy and governance.
Ralph Marenga
Journal of Governance and Regulation, Volume 9, pp 96-109; doi:10.22495/jgrv9i3art7

Public enterprises (PEs) are important instruments through which governments implement various national development objectives. A majority of PEs in Namibia face criticism on their inability to meet performance targets. These PEs are poorly managed and are a constant financial burden to the state. The degree of state acceptability through its public administrative processes as influenced by PE performance has been problematised as having a bearing on the trust and confidence of the public in the government. A qualitative paradigm was followed in analysing PE performance and its challenges for public administration in Namibia. The current text finds that poor accountability measures, financial burden on the state, procurement anomalies and the proliferation of corruption as some of the underlying causes for the poor performance of a majority of PEs in Namibia. This status quo erodes the public’s trust in the ability of the government to manage PEs. The study found a great contradiction in the relationship that exists between the government as a shareholder with the leadership of most PEs as relating to the crux of the agency theory. This study centrally recommends the robust implementation of existing legislation to redress the poor performance of PEs and its challenges for public administration.
Pablo De Andres, Laura Arranz-Aperte, Juan Antonio Rodriguez-Sanz
Journal of Governance and Regulation, Volume 9, pp 84-95; doi:10.22495/jgrv9i3art6

In a highly influential paper, Bradford (2015) coined the term “Brussels effect” to describe the way the EU regulatory power is externalized to third countries via consumer markets. In this paper, we analyze whether there is a Brussels effect in the finance industry as well. To do so, we study the evolution and regulatory changes put in place in Europe after the financial crisis to ensure that directors in the banking industry are adequately qualified and competent to meet the expertise and education requirements (the “fit and proper” criteria). We find that, as a result of the latest financial crisis, stricter board requirements were paired with stricter controls from the banking supervisory authorities in Europe. We describe the post-crisis regulatory framework as being characterized by 1) a strong commitment to regulation of risk management, 2) a multilayered control system and 3) a harmonized system with a strong presence of national regulatory authorities. We conclude that the European Union – through European Banking Authority (EBA) and the European Single Supervisory Mechanism (SSM) – has become a standard setter for the banking industry promoting international financial standards and “hardening” the soft law recommendations with directives and binding technical standards as regulatory instruments.
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