Corporate Governance and Sustainability Review

Journal Information
ISSN / EISSN : 2519-8971 / 2519-898X
Published by: Virtus Interpress (10.22495)
Total articles ≅ 81
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Latest articles in this journal

Corporate Governance and Sustainability Review, Volume 5, pp 4-6; doi:10.22495/cgsrv5i2editorial

Corporate Governance and Sustainability Review, Volume 5, pp 102-105; doi:10.22495/cgsrv5i2p9

This review covers the book titled “Board of directors: A review of practices and empirical research”, edited by Stefano Dell’Atti, Montserrat Manzaneque, and Shab Hundal (Virtus Interpress, 2020; ISBN: 978-617-7309-16-0). The focus of this review is particularly on board diversity and sustainability issues that, in the reviewer’s opinion, are two challenges that will keep boards of directors busy in the years to come. It also highlights the contribution of this book to the ongoing discussion on key issues relating to board of directors
Soumaya Ben Khelifa
Corporate Governance and Sustainability Review, Volume 5, pp 89-101; doi:10.22495/cgsrv5i2p8

While the performance of hedge funds has grabbed much attention from researchers, a few studies have been conducted on the drivers of hedge fund liquidity and performance (Shaub & Schmid, 2013). This study proposes new approaches to investigate the effect of share restrictions on European hedge fund performance and liquidity. We run different regressions of 1) returns, 2) flows, and 3) exposure to market liquidity risk on share restrictions, managerial incentives, and a set of control variables as independent variables. Using a sample of 1423 European hedge funds, our results suggest that restrictions imposed by European hedge funds add economic value to investors. Furthermore, we find that European hedge funds with strong share restrictions take on lower liquidity risk. There is a weak difference in liquidity risk exposure across directional European hedge funds with and without share restrictions. In addition, European hedge funds’ experience, large outflows during a crisis, and all share restrictions do not seem to be significantly related to funding flows in the crisis period, as well as in times of non-crisis. Finally, only the groups of young funds are associated with significant funds exposure to market liquidity risk
Shirley Mo Ching Yeung
Corporate Governance and Sustainability Review, Volume 5, pp 82-88; doi:10.22495/cgsrv5i2p7

The aim of this paper is to explore the key elements of emotion sustainability (ES) and sustainable partnership (SP) under post-COVID-19. Qualitative primary data is a major part of data analysis to support the findings from qualitative secondary data analysis on ES. The key findings for wellness influence are 1) self-awareness, 2) spiritual support, and 3) trust with flexibility for productivity with ES and SP with the SERVQUAL model. The learning outcomes on literature and 10 interviews with interviewees from Southeast Asia countries related to ES demonstrate that the principles of SERVQUAL are embedded in measuring wellness. For self-awareness related to new wellness skills, factors such as raisin diet, grapes nutrition awareness, antioxidant, happiness emotion, and adaptiveness are explored. Management with influence via ES and SP under post COVID-19 in 2020 has seldom been studied. With these findings, organizations shall have an idea of designing activities to enhance emotional sustainability for staff members. The paper details the learning outcomes generated from the literature in the past as well as the use of SERVQUAL. This is important for organizational development with wellness training and individual/organizational development
Ahmed M. Abdel-Meguid, Khaled M. Dahawy, Nermeen F. Shehata
Corporate Governance and Sustainability Review, Volume 5, pp 73-81; doi:10.22495/cgsrv5i2p6

This paper provides an exploratory analysis of the extent of Sustainable Development Goals disclosure (SDGD) by the top 30 Egyptian companies. We use the 33 core indicators of the United Nations Conference on Trade and Development (UNCTAD), which span economic, institutional, social, and environmental areas. Overall, the results suggest that SDGD in Egypt is still gaining traction, as indicated by a relatively low average disclosure score of only 25%, which translates to approximately eight indicators. We also document a variation in SDGD among the four areas, where disclosure addressing economic and institutional indicators is higher than that of social and environmental areas. This variation could be attributed to the differential regulatory and legal intensity. Disclosure is most noticeable for taxes, employment, women empowerment, financial transparency, corporate governance, and energy. We argue that Egypt has the legislative infrastructure and clear political will from the state to support sustainable development. However, there is a need for coordinated awareness efforts to establish a culture of sustainable development among various stakeholders, including businesses. Finally, there should be a stronger conviction regarding the importance of information sharing as well as comprehensive reporting standards and enhanced regulatory enforcement. To the best of our knowledge, this is the first paper to address the status of SDGD in Egypt. Accordingly, there is a need for future research that analyzes both the determinants of SDGD and its consequences
Tien-Chin Wang, Bi-Chao Lee
Corporate Governance and Sustainability Review, Volume 5, pp 57-72; doi:10.22495/cgsrv5i2p5

Forecasting is becoming increasingly important in corporate sustainability governance, as is government governance, and the prediction of police crime hotspots is related to human rights, so transparency is needed. There are many ways to predict hotspots of criminal activity in urban areas. Experts assume that if many crimes occur somewhere, even more, are likely to happen at subsequent times. Such predictions may rely on a state dependency model such as the Poisson distribution algorithm to formulate re-occurrence, its results can provide a visualized hotspot map with Q-GIS maps. Forecasting sets the threshold for re-occurrence and affects the distribution of the forecast. This paper studies the occurrence of criminal activity in urban areas, refers to the metrics set by the NIJ’s crime prediction contest and focuses on the presentation of the results by accumulating different historical data. It was determined that when the amount of cumulative data is greater, its prediction measures by the prediction accuracy index (PAI) insures that accuracy is improved, but the prediction efficiency index (PEI) that efficiency level is worse. Because threshold setting directly affects the performance of the forecast, it can be used differently. Here sets four different indicators, hit rate, useful rate, waste rate, and missing rate. It was determined that the hit rate, missing rate, the PAI value, and the PEI value are directly proportional to the threshold value, while the trend of useful rate and waste rate are inversely related. Concerned policymakers can set different thresholds dependent up the number and budgetary constraints of police forces, and they can work towards achieving crime prevention in urban hotspots. Importantly, Poisson’s approach can be simply implemented with Excel, be conducive to drive by the office practitioner, and elevate the transparency of crime prediction.
Kasun Tharaka Dissanayake, D. B. P. H. Dissabandara
Corporate Governance and Sustainability Review, Volume 5, pp 44-56; doi:10.22495/cgsrv5i2p4

The “dividend puzzle” has been an unresolved problem since the 1950s. The purpose of this paper is to investigate the nature and a level of the relationship between board characteristics dividend policy. The study used a positivistic approach and Spearman correlation metric, descriptive statistics, and binary regression models have been deployed as analytical tools. It is found that food and beverages sector had the highest percentage for dividend payout from 2015 to 2019. The highest percentage for women on boards was 13% in the land and property sector. The average board size for the selected companies was 8. The likelihood to pay dividends, women on boards, the board size, and CEO duality indicated a significant positive relationship. Panel regression results indicate that there is no significant relationship between board characteristics and the level of dividend payment for the selected sample. But in a sectorial analysis audit committee size has a significant negative relationship with the level of dividend payment in the manufacturing sector whereas board gender diversity has a significant positive relationship with the same in the food and beverage sector. In summary, dividend decision has been affected by several board characteristics, but such factors had no significant impact on the level of dividends declared in the market. The sectorial analysis revealed that several characteristics affected the level of dividends in two sectors
Hamza El Kaddouri, Modar Ajeeb
Corporate Governance and Sustainability Review, Volume 5, pp 35-43; doi:10.22495/cgsrv5i2p3

The adoption of the Law relative to the Liberties and Responsibilities of Universities (LRU) in 2007 has sought to “modernize” the governance system of French universities. Article 18 of this Law stipulated “the accounts of the university are subject to an annual audit by a legal auditor” (Law no. 2007–1199 of 10 August 2007). This paper explores management teams’ perceptions of the role of legal audit in the governance system of French universities and its impact on the managerial latitude of university managers. Based on twenty-five interviews carried out with members of the management teams in three universities, the results of this study are threefold. Firstly, legal audit plays a disciplinary role by reducing the information asymmetry and cognitive conflicts between university managers and the stakeholders involved in governance particularly the financial supervisory authorities and the accounting agency. Secondly, the audit report is used by university managers to reinforce the legitimacy and the objectivity of their decisions, in the face of internal and external political pressure coming mainly from the university council, faculties, and the supervisory authorities. Thirdly, legal audit plays a complementary role to the governance system in place, including the controls of the accounting agency, the Council, and the Rectorate. Therefore, the results of this research are part of an integrated governance approach (Wirtz, 2006) which is characterized by the complementarity between the disciplinary and cognitive dimensions (Williamson, 1991; Charreaux, 1997)
Vincent Gagné, Sylvie Berthelot
Corporate Governance and Sustainability Review, Volume 5, pp 22-34; doi:10.22495/cgsrv5i2p2

This paper examines the evolution of the extent to which firms with a high greenhouse gases (GHG) emission impact complied with Chartered Professional Accountants (CPA) Canada guidelines on climate change disclosures, as well as the factors that influenced these disclosures. The sample is comprised of Canadian firms in the mining, energy, and chemical sectors. The study measures the influence of the firms’ political exposure and media visibility, their audit firm, the presence of an environment committee, their ownership structure, and their financial performance on their GHG emissions disclosures. Our findings show that these disclosures considerably evolved over the 10 year period from 2007 to 2017 and that this evolution was in the form of a leap rather than a slow and steady learning curve. We also confirmed the significant influence of the environment committee, political exposure, and media visibility on this evolution. Our empirical results corroborate the work of DiMaggio and Powell (1983), outlining the important role normative pressures play in voluntary GHG emissions disclosure firms make in order to secure the legitimacy conferred by society (Suchman, 1995)
Jamel Chouaibi, , Noomen Chaabane
Corporate Governance and Sustainability Review, Volume 5, pp 8-21; doi:10.22495/cgsrv5i2p1

The purpose of this paper is to investigate the effect of selected governance characteristics on the level of environmental disclosure in Islamic banks within the MENA zone. This study used a sample of 40 Islamic banks as part of a new data set, namely the data collected from the annual reports. Environmental disclosure is developed to measure the level of environmental information. We measure the environmental disclosure by both the energy disclosure items and the natural environment disclosure item provided by the annual reports. Multiple linear regression analyzes were used to verify the effect of a bank’s governance characteristics on the level of environmental disclosure. This study may contribute to the existing literature by providing insights from countries with an emerging economy and providing updated documentary and empirical evidence concerning the association between the characteristics of governance and the level of environmental disclosure of Islamic banks within the MENA zone
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