scholarly journals Examining models for measuring corporate governance to resolve financial crises

2021 ◽  
Author(s):  
Jabbar Sehan Issa ◽  
Asmaa Habib Alnasiry
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Economic Consequences ◽  
Policy Implications ◽  
Key Factors ◽  
New Information ◽  
Governance Systems ◽  
And Control ◽  
Work Done

This document deals with corporate governance and its impact on corporate performance and economic performance. This work is first summarized and based on previous work done, for example, to provide a clearer expression of the corporate governance models of shareholders and shareholders. It then addresses some of the key factors that lead to the effectiveness of corporate governance, and examines some of the strengths, weaknesses, and economic consequences associated with different corporate governance systems. In addition to providing information not provided in previous work, it also provides new information on the concentration of ownership and voting rights in a number of OECD countries. This document also provides empirical evidence on the relationship between corporate governance, firm performance, and economic growth. Finally, several policy implications are identified. This document shows how a corporate governance framework can influence the development of stock markets, R&D and innovative, corporate activities and the development of an active SME sector, thereby affecting economic growth. However, there is no single model of corporate governance, and each country has, over time, developed a variety of mechanisms to overcome representation problems arising from separation of ownership and control. This document examines the various mechanisms used in different systems (eg centralized ownership, executive rent schemes, stock market, inter-corporate shareholding, etc.) and examines the available evidence. Whether they have achieved their goal or not. do. For example, one of the benefits of centralized ownership is that it provides more effective oversight of management and helps with representation problems arising from separation of ownership and control. However, some costs reduce liquidity and the likelihood of risk diversification. Although dispersed ownership carries more liquidity, it may not provide the appropriate incentive to encourage the long-term

Corporate Governance

2019 ◽  
pp. 328-339
Author(s):  
Sandeep Goel
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Social Change ◽  
Social Transformation ◽  
Business Performance ◽  
Black Box ◽  
Policy Implications ◽  
Central Issue ◽  
Global Level ◽  
Governance Process

In light of the increasing number of corporate frauds worldwide, there is a growing emphasis on corporate governance. These corporate misappropriations not only destroy shareholder value but also act as a detriment to economic growth and social change. Therefore, investors look for companies with better corporate governance to maximize their returns. Still, this aspect of corporate governance has been largely neglected in the existing studies. This chapter is therefore an attempt to address corporate governance and its effect on business performance in the context of economic growth and social transformation at the global level. It goes inside the black box of the financial matrix. The central issue that emerges is the criticality of key parameters in the corporate governance process for organisational performance. It is hoped that it will provide a new dimension to the existing body of corporate governance for global development with policy implications for the required growth and social change.

The Causes and Legacy of the Great Recession in Spain

2020 ◽  
pp. 115-131
Author(s):  
Sebastián Royo
Keyword(s):  
Economic Growth ◽  
Great Recession ◽  
Political System ◽  
Economic Consequences ◽  
The Political ◽  
The European Union ◽  
New Parties ◽  
Political Consequences ◽  
The Great Recession

After over two decades of prolonged economic growth, Spain suffered its worst economic crisis in decades between 2008 and 2014. The political, social, and economic consequences of this crisis were very severe: unemployment increased sharply reaching over 27 per cent; inequalities deepened; and the two-party political system was transformed by the emergence of new parties. The implementation of structural reforms, which intensified as a result of the European Union financial sector bailout of 2012, led to economic recovery. As a result, credit was restored, strong economic growth resumed, and the political system did not implode. Yet, persistently high unemployment (particularly as regards youth and long-term) as well as inequality (and to a certain extent poverty) still persist a decade after the crisis. This chapter looks at the genesis of the crisis and examines the responses to the crisis, as well as its economic, social, and political consequences.

scholarly journals Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402097302
Author(s):  
Muhammad Athar Nadeem ◽  
Zhiying Liu ◽  
Haji Suleman Ali ◽  
Amna Younis ◽  
Muhammad Bilal ◽  
...  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Policy Implications ◽  
Innovation Activities ◽  
Adverse Impacts ◽  
Long Run ◽  
Market Shares ◽  
Auto Regressive

Sound innovation capabilities help the nations not only to capture bigger market shares but also to sustain long-term economic growth. Innovation is of vital importance at all stages of a country’s development as it promotes productivity, value creation, employment, economic growth, and sustainability. Several factors can affect the innovation activities of a country. For example, peaceful and stable environment, effective macroeconomic designs, sound institutional quality, and efficient utilization of resources are of great significance for a country to nourish economic, business, and market activities. Applying the Auto Regressive Distributive Lag approach to cointegration, this study investigates the short- and long-run impacts of aid, political instability, and terrorism upon the innovation of a laggard economy, namely, Pakistan. Our findings reveal that aid, political instability, and terrorism all have adverse impacts on innovation. Results across robustness checks remain the same. This study is of strong policy implications for policymakers, governments and opposition parties, and security and intelligence agencies to develop sound macroeconomic designs and policies, bring harmony for political stability, and curb terrorism, respectively.

Tourism, economic growth, energy consumption, and CO2 emissions in China

2020 ◽  
pp. 135481662091845 ◽  
Author(s):  
Jiekuan Zhang ◽  
Yan Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Policy Implications ◽  
Long Run ◽  
Cointegration Tests ◽  
Short Run ◽  
Vecm Granger Causality ◽  
Growth Energy

In this article, we for the first time applied the vector error correction model (VECM) Granger causality approach to investigate the short-run and long-run causal relationships among tourism, economic growth, energy consumption, and carbon dioxide (CO2) emissions for 30 Chinese provinces over the period 2000–2017. The results implied that the analyzed variables became stationary at their first differences. The panel cointegration tests indicated the presence of a long-term equilibrium relationship among these four analyzed variables. Results from the VECM Granger causality tests suggested that the bidirectional short-term causalities were statistically confirmed between gross domestic product (GDP) and tourism. Additionally, we found that some unidirectional short-run causalities existed running from energy consumption to other analyzed variables and bidirectional long-run causalities existed between CO2 emissions and GDP, CO2 emissions and tourism, and GDP and tourism. Moreover, we also found the existence of unidirectional long-term causalities running from energy consumption to other analyzed variables. Based on these findings, we highlighted some key policy implications to develop China’s sustainable tourism.

scholarly journals Financial Development, Clean Energy, and Human Capital: Roadmap towards Sustainable Growth in América Latina

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3763
Author(s):  
Pablo Ponce ◽  
José Álvarez-García ◽  
Johanna Medina ◽  
María de la Cruz del Río-Rama
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Clean Energy ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Renewable Energy Consumption

The consumption of renewable energy has become a substitute for fossil fuels to mitigate environmental degradation. However, this substitution of energy raises many questions regarding its possible impact on economic growth. In this context, this research aims to examine the long-term relationship between economic growth and financial development, non-renewable energy, renewable energy, and human capital in 16 Latin American countries. Panel data techniques during the period 1988–2018 and statistical information compiled by the World Bank and Penn Word Table databases were used. Second-generation econometric techniques (cross-sectionally augmented Dickey–Fuller (CADF) and cross-sectionally augmented IPS (CIPS) were used in the work methodology, which allow the presence of cross-sectional dependence between sections to be controlled. The main results indicate that there is a long-term equilibrium relationship between financial development, non-renewable energy consumption, renewable energy consumption, human capital, and economic growth. The results show that the consumption of renewable energy does not compromise economic growth; the 1% increase in renewable energy consumption is related to the 1% increase in economic growth. The policy implications suggest some measures to ensure economic growth considering the role of green energy and human capital.

Drivers and Policies for Increasing and Internationalising R&D Activities of EU Multinational Enterprises

2013 ◽  
pp. 1-12
Author(s):  
Michele Cincera
Keyword(s):  
Economic Growth ◽  
Multinational Enterprises ◽  
Public Support ◽  
Econometric Analysis ◽  
Descriptive Statistics ◽  
Policy Implications ◽  
Explanatory Factors ◽  
Innovation Activities ◽  
The Impact

R&D and innovation activities of firms are the main source of economic growth over the long term. A recent trend is the increasing off shoring of R&D activities of large Multinational Enterprises (MNE), i.e. delocalization of R&D outside their home countries. After examining the evidence and explanatory factors of this new phenomenon, the authors focus on the study of the factors impacting on the internationalization of R&D of EU MNEs. Based on the data coming from a survey of large EU MNEs, they first present some descriptive statistics based on this survey and, second, carry out an econometric analysis to examine the drivers of R&D internationalization, of the preferred location(s), and the impact of public support granted to R&D. Policy implications are also discussed.

Corporate Governance and Family-owned Companies

2018 ◽  
Author(s):  
Prem Sikka
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Ownership Structure ◽  
Agency Problems ◽  
Board Members ◽  
Socially Responsible ◽  
Shareholder Capitalism ◽  
And Control

It is often claimed that the ownership structure and the close involvement of family members alleviates agency problems and gives them a long-term orientation compared to a corporation with dispersed shareholding and control. Through a case study relating to the demise of BHS, one of the biggest UK retailers, the chapter probes these claims. BHS was an epitome of shareholder capitalism. It was owned and controlled by Sir Philip Green and his family. The control enabled the Green family to extract large amounts of cash from BHS through dividends and complex intragroup transactions, with virtually no questions from board members, regulators or auditors. The flawed corporate governance of BHS inflicted considerable hardship on other stakeholders. The demise of BHS should encourage reflections on the claims (agency theory) that an alignment of the interests of shareholders and directors somehow leads to better governance and socially responsible management.

scholarly journals Do coffee exports have impact on long-term economic growth of countries?

2019 ◽  
Vol 65 (No. 8) ◽  
pp. 385-393
Author(s):  
Theodore Murindahabi ◽  
Qiang Li ◽  
Eric Nisingizwe ◽  
E.M.B.P. Ekanayake
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Long Run ◽  
Auto Regressive ◽  
Coffee Sector ◽  
The Impact ◽  
Positive Effect

The present paper aims to investigate the impact of coffee exports on long-term economic growth in an open economy for 32 countries exporting coffee over the period of 1994–2013. The study applied a dynamic panel Auto-Regressive Distributive Lag (ARDL) modelling approach with estimators. All variables involved in the specified model were found to be stationary of order I (1) at a first difference. The Pooled Mean-Group (PMG) long-run results suggest the presence of a significant positive effect of coffee exports on economic growth. The empirical findings of the study suggest policy implications, promoting the coffee sector to boost the countries’ economy.

scholarly journals An Empirical Analysis on COVID-19: Lockdown Impact on Nigerian Economy

2020 ◽  
Vol 3 (3) ◽  
pp. 206-214
Author(s):  
Hayatuddin Hamza Safiyo ◽  
Ahmed Ibrahim Mohammed ◽  
Muhammad Bello Jakada ◽  
Umar Musa Kallah ◽  
Bashir Usman Mika'il
Keyword(s):  
Quantitative Research ◽  
Economic Consequences ◽  
Systematic Evaluation ◽  
Research Approach ◽  
Economic Activities ◽  
Poverty Level ◽  
Economic Resilience ◽  
The Government ◽  
And Control

Objective – Objective of this study is to analyze the lockdown effect on economic activities in Nigeria as the lockdown response measure to COVID-19 pandemic claim to pose a serious and potentially long term socio-economic threat to individuals, households, businesses as well as public sectors in Nigeria. Design/methodology – This study considered four regions in Nigeria (Northwest, North-Central, South-South and Southeast) and adopted a quantitative research approach which entails systematic evaluation of individuals’ behavior towards an unprecedented economic shock and their response to the manner in which the situation might unfolds by lifting the lockdown measure in Nigeria. This is achievable with a systematic random sample and a well-structured survey questionnaire. All these regions experienced the imposition of lockdown measure by their respective state authorities. Results – The results indicated that most socio-economic challenges including job loss, increase social vices, rise in poverty level, fall in economic activities, as well as fall in the level of GDP faced by individuals was not a resultant of the lockdown. Consequently, authority’s inefficiency was also challenged in spite of their efforts to mitigate and control the emerging economic consequences faced by households during the lockdown periods.Recommendation - The study recommends that lifting of lockdown would be the best action for the government to take for socio-economic resilience. The study also revealed that both public and individuals need to establish democratic preferences, and trust on health professionals or experts. Further to this, government should decide on effective measures needed to contain the continuous spread of the virus especially through development of research based and healthcare institutions.

scholarly journals On investment performance, value creation, management and corporate governance: The French case

2004 ◽  
Vol 1 (4) ◽  
pp. 72-80 ◽  
Author(s):  
Mondher Bellalah
Keyword(s):  
Corporate Governance ◽  
Value Creation ◽  
Conflict Of Interest ◽  
Minority Shareholders ◽  
Investment Performance ◽  
Controlling Shareholders ◽  
Governance Systems ◽  
French Case ◽  
Block Holders ◽  
And Control

This paper studies corporate governance, investment, value creation and their effects on corporate performance in some European countries and in particular in France. It accounts for specific aspects of investment performance, governance, management and entrepreneurship. Corporate governance systems can be identified by the degree of ownership and control and the identity of controlling shareholders. In outsider systems characterized by wide dispersed ownership as in the U.S and UK, the main specificity is the conflict of interest between strong managers and widely-dispersed weak shareholders. In insider systems characterized by concentrated ownership or control as in Germany and Japan, the main specificity is the conflict of interest between controlling shareholders (or block holders) and weak minority shareholders. There are several models of corporate governance since each country has developed a variety of mechanisms to overcome agency problems arising from the separation of ownership and control. Some results are reported using a data base conceived by IPAG students.

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