Corporate Governance for Complex Cryptocurrencies?

2019 ◽  
pp. 140-166 ◽  
Author(s):  
Philipp Hacker
Keyword(s):  
Corporate Governance ◽  
Complex Systems ◽  
Case Studies ◽  
Complexity Theory ◽  
Financial Regulation ◽  
Financial Innovation ◽  
Governance Framework ◽  
Blockchain Technology ◽  
Formal Equality ◽  
Initial Coin Offerings

Cryptocurrencies such as Bitcoin or Ethereum are gaining ground not only as alternative modes of payment but also as platforms for financial innovation, particularly through token sales or initial coin offerings (‘ICOs’). All of these ventures are based on decentralized, permissionless blockchain technology, distinguished by their openness to, and the formal equality of, participants. However, recent cryptocurrency crises have shown that these architectures lack robust governance frameworks and are therefore prone to patterns of re-centralization. They are informally dominated by coalitions of powerful players within the cryptocurrency ecosystem who may violate basic rules of the blockchain community without accountability or sanction. This chapter first suggests that cryptocurrency and token-based ecosystems can be fruitfully analysed as complex systems that have been studied for decades in complexity theory and have recently gained prominence in financial regulation, too. It applies these insights to three key case studies: the Bitcoin Hard Fork of 2013; the Ethereum hard fork of 2016, following the DAO hack; and the ongoing Bitcoin scaling debate. Second, the chapter argues that complexity-induced uncertainty can be reduced, and elements of stability and order strengthened, by adapting a corporate governance framework to blockchain-based organizations: cryptocurrencies, and decentralized applications built on top of them via token sales. The resulting ‘comply-or-explain’ approach combines transparency and accountability with the necessary flexibility that allows blockchain developers to continue to experiment for the sake of innovation. Eventually, however, the coordination of these activities may necessitate the establishment of a self-regulatory institution.

scholarly journals Blockchain-Enabled Corporate Governance and Regulation

2020 ◽  
Vol 8 (2) ◽  
pp. 36
Author(s):  
Dulani Jayasuriya Daluwathumullagamage ◽  
Alexandra Sims
Keyword(s):  
Systematic Review ◽  
Corporate Governance ◽  
Empirical Analysis ◽  
Textual Analysis ◽  
Sample Period ◽  
Governance Framework ◽  
Significant Growth ◽  
Final Article ◽  
Initial Coin Offerings ◽  
Relevant Factors

There is considerable hype about blockchain in almost every industry, including finance, with significant investments globally. We conduct a systematic review of 851 records and construct a final article sample of 183 for the sample period 2012 to 2020 to identify relevant factors for blockchain adoption in corporate governance. We conduct textual and empirical analysis to develop a decentralized autonomous governance framework and link traditional corporate governance theories to blockchain adoption. Furthermore, we explore present and future use cases and implications of blockchains in corporate governance. Using our systematic review and textual analysis, we further identify gaps and common trends between prior academic and industry literature. Moreover, for our empirical analysis, we compile a unique database of blockchain investments to forecast future investments. In addition, we explore blockchain potential in corporate governance during and post COVID-19. We find prior academic articles to mostly focus on regulation (49 studies) and Initial Coin Offerings (ICOs) (46 studies), while industry articles tend to concentrate on exchanges (10 studies) and cryptocurrencies (9 articles). A significant growth in literature is observed for 2017 and 2018. Finally, we provide behavioural, regulatory, ethical and managerial perspectives of blockchain adoption in corporate governance.

scholarly journals Developing public service knowledge and learning about complex systems: using a community of practice to integrate theory and practice

2018 ◽  
Vol 4 (1) ◽  
pp. 46
Author(s):  
Philip Haynes ◽  
Mary Darking ◽  
Julia Stroud
Keyword(s):  
Complex Systems ◽  
Community Of Practice ◽  
Case Studies ◽  
Complexity Theory ◽  
Management Practice ◽  
Shared Values ◽  
Virtual Learning Environment ◽  
Theory And Practice ◽  
Second Phase ◽  
Management Interventions

A Community of Practice Knowledge Exchange (CPKE) comprising of practitioners and academics with an interest in complexity theory was formed. The central activity of the CPKE was an agreement that each would develop a case study that integrated complexity theory and challenges in practice. In the first phase, members agreed definitions of core concepts and used them to describe the systems they were working in.  Frequent contact was via a virtual learning environment.  This activity was supplemented with face-to-face contact, in the form of half-day workshops. After several months, the CPKE agreed two core pieces of reading to provide a theoretical basis. These were popular because of their applied focus. The CPKE evolved to a second phase.  Diverse case studies of practice-based challenges were used to share experiences of complex systems. A key event was the presentation of case studies as complex systems using a shared conceptual language generated by earlier learning. In the final phase, the CPKE considered interventions into the case studies and created and applied a management toolkit to develop approaches to possible management interventions. Through the development of the toolkit, the CPKE became interested in the role of values in a complexity-based practice and how coherent and shared values could aid more informed interventions. The use of complexity theory changed the ontology of management practice by facilitating an understanding and acceptance of uncertainty and that optimal approaches often required a relational and cooperative approach built on shared values, rather than an instrumental and singular management orthodoxy.

scholarly journals Blockchain Technology and Financial Regulation: A Risk-Based Approach to the Regulation of ICOs

2019 ◽  
Vol 10 (2) ◽  
pp. 263-314 ◽  
Author(s):  
Alexis COLLOMB ◽  
Primavera DE FILIPPI ◽  
Klara SOK
Keyword(s):  
Initial Public Offerings ◽  
Financial Regulation ◽  
Regulatory Framework ◽  
Functional Equivalence ◽  
Public Offerings ◽  
Blockchain Technology ◽  
Equity Crowdfunding ◽  
The Us ◽  
Securities Laws ◽  
Initial Coin Offerings

This paper compares Initial Public Offerings (IPOs) and equity crowdfunding with Initial Coin Offerings (ICOs) and explores the corresponding risks and limitations of these different fundraising practices, with a view to analysing the extent to which the latter should be subject to the same regulatory framework as the former. After assessing the underlying principles and current regulatory framework for IPOs and equity crowdfunding, with a focus on Europe and the US, we investigate the possibility of applying existing financial regulations to ICOs. Drawing from the notion of “functional equivalence”, we contend that many ICOs share a sufficient number of similarities with traditional IPOs and equity crowdfunding, to be regulated in a similar manner. However, given the various attempts by token issuers to escape from the scope of securities laws by assigning a different function to their ICOs tokens, we argue that principle-based regulation based on an in-depth risk-analysis could be an effective way of addressing the regulation of ICOs, thereby moving from “functional equivalence” to “risk equivalence”. Finally, we explore the use of blockchain technology as a regulatory technology, incorporating specific rules and constraints into the technological fabric of an ICO, in order to ensure compliance with the fundamental principles of financial regulation.

Corporate governance in microfinance organizations: along and winding road

2001 ◽  
Vol 39 (4) ◽  
pp. 296-302 ◽  
Author(s):  
Marc Labie
Keyword(s):  
Corporate Governance ◽  
Governance Framework ◽  
Key Issues

Over the last few years, more and more attention has been devoted to microfinance by academics and practitioners interested in development issues. This paper is part of this trend, as it tries to identify to what extent the corporate governance framework can be applied to microfinance organizations. Therefore, after considering some of the key issues, it tries to show how relevant these issues are to the microfinance industry.

scholarly journals Current Practices and Improvement of Saudi Corporate Governance Framework

2017 ◽  
Vol 10 (4) ◽  
pp. 81
Author(s):  
Khalid Saad Al-habshan
Keyword(s):  
Corporate Governance ◽  
Legal System ◽  
Annual Reports ◽  
Legal Basis ◽  
Governance Framework ◽  
Preceding Article ◽  
Financial Scandals ◽  
The Way ◽  
Current Practices

The preceding article described the notions of disclosure and transparency and their purpose and importance in practice. An understanding of the requirements and elements of the practice of disclosure leads to a discussion of its benefits and advantages, as well as the consequences of a lack of transparency during financial scandals. The Saudi approach to disclosure and transparency is also examined based on the evidence given in board annual reports. This paper highlights the way the Saudi legal system evaluates corporate governance and its legal basis.

The Next Stage of Reforms: Korean Corporate Governance in the Post-Asian Financial Crisis Era

2006 ◽  
Vol 1 ◽  
pp. 1-23
Author(s):  
Joongi Kim
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Boards Of Directors ◽  
Corporate Control ◽  
Asian Financial Crisis ◽  
Governance Framework ◽  
Quantum Leap ◽  
World Class

AbstractFollowing the 1997 financial crisis, Korea underwent a dramatic overhaul of its corporate governance framework. Drastic changes in its legal and regulatory infrastructure led to more transparent and accountable companies. Boards of directors, shareholders, stakeholders, and auditors began to function effectively and even a corporate control market emerged. Many forms of internal and external corporate governance and market-oriented discipline were established. Korean companies are poised to make a quantum leap to reach the most competitive international levels of corporate governance. This paper argues that Korea must continue its reform efforts. It first discusses the Asian financial crisis and the first stage of reforms that followed. It then explores the areas where Korea needs to undergo the next stage of reforms. It will argue that only then can Korean corporations receive proper valuations. Korean companies have indeed come a long way but lingering perceptions of weak corporate governance thwart them from becoming world-class competitors.

scholarly journals A review of the complexity approach to the study human (society)-nature interactions

2010 ◽  
Vol 90 (2) ◽  
pp. 109-137 ◽  
Author(s):  
Dragana Miljanovic
Keyword(s):  
Complex Systems ◽  
Complexity Theory ◽  
Complex Dynamics ◽  
Traditional Approach ◽  
Human Society ◽  
Natural Systems ◽  
Two Systems

Traditional approach to the study of society-nature interactions based on reductionism and linear causality is no longer fully capable of explaining complex dynamics of integrated socio-economic and natural systems. For this reason demands for complexity theory is growing. Understanding interactions between society and nature, human and their environment must come from the examination of how the two systems operate together, and not from examination of those systems themselves in isolation. Since our geographical community is not familiar enough with complexity theory, first part of article is devoted to outlining shift from reductionism to holism and complexity theory. In the second part, features of complex systems as it is human (society)-environment system are discussed. .

scholarly journals Blockchain in Health Care Innovation: Literature Review and Case Study From a Business Ecosystem Perspective (Preprint)

2020 ◽  
Author(s):  
Shuchih Ernest Chang ◽  
YiChian Chen
Keyword(s):  
Health Care ◽  
Life Cycle ◽  
Literature Review ◽  
Case Studies ◽  
Paradigm Shift ◽  
Potential Health ◽  
Business Ecosystem ◽  
Blockchain Technology ◽  
The Impact

BACKGROUND Blockchain technology is leveraging its innovative potential in various sectors and its transformation of business-related processes has drawn much attention. Topics of research interest have focused on medical and health care applications, while research implications have generally concluded in system design, literature reviews, and case studies. However, a general overview and knowledge about the impact on the health care ecosystem is limited. OBJECTIVE This paper explores a potential paradigm shift and ecosystem evolution in health care utilizing blockchain technology. METHODS A literature review with a case study on a pioneering initiative was conducted. With a systematic life cycle analysis, this study sheds light on the evolutionary development of blockchain in health care scenarios and its interactive relationship among stakeholders. RESULTS Four stages—birth, expansion, leadership, and self-renewal or death—in the life cycle of the business ecosystem were explored to elucidate the evolving trajectories of blockchain-based health care implementation. Focused impacts on the traditional health care industry are highlighted within each stage to further support the potential health care paradigm shift in the future. CONCLUSIONS This paper enriches the existing body of literature in this field by illustrating the potential of blockchain in fulfilling stakeholders’ needs and elucidating the phenomenon of coevolution within the health care ecosystem. Blockchain not only catalyzes the interactions among players but also facilitates the formation of the ecosystem life cycle. The collaborative network linked by blockchain may play a critical role on value creation, transfer, and sharing among the health care community. Future efforts may focus on empirical or case studies to validate the proposed evolution of the health care ecosystem.

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