State-owned enterprise governance in the Pacific: The application of local values and practices in Samoa and Tonga

<p><b>This research examined how state-owned enterprises (SOEs) in two Pacific countries approach their governance roles in a context where concepts of good corporate governance are changing internationally. The research considered whether corporate governance practice can be enhanced by the application of local cultural values and principles, and whether there are lessons learned from these two countries that could be shared more broadly.</b></p> <p>The study explored insights from current and former SOE board chairs, directors, CEOs, senior public officials from the Kingdom of Tonga (Tonga) and the Independent State of Samoa (Samoa), and subject matter experts, who discussed their experiences and insights about approaches to corporate governance. The research also examined the literature on the rationale for the concept of ‘good governance’ which emerged in the latter half of the twentieth century, and corporate governance principles that support SOE models, to provide context for participant responses.</p> <p>Twenty-six interviews were undertaken in Tonga and Samoa between July and September 2019. Twelve participants were interviewed about Tonga’s SOEs, 12 participants were interviewed about Samoa’s SOEs, and two participants were interviewed about both countries’ approaches to SOE governance.</p> <p>The research finds that the principles of good corporate governance are dynamic and responsive, and can be modified to fit local situations. Despite the challenges implementing corporate governance principles, SOE directors and officials from Tonga and Samoa are asking how these tools can be applied in their country and are actively adapting and innovating the corporate governance model to improve local application. There are important assertive signs of ambiculturalism reshaping the good governance narrative with a Pacific flavour.</p>

State-owned enterprise governance in the Pacific: The application of local values and practices in Samoa and Tonga

<p><b>This research examined how state-owned enterprises (SOEs) in two Pacific countries approach their governance roles in a context where concepts of good corporate governance are changing internationally. The research considered whether corporate governance practice can be enhanced by the application of local cultural values and principles, and whether there are lessons learned from these two countries that could be shared more broadly.</b></p> <p>The study explored insights from current and former SOE board chairs, directors, CEOs, senior public officials from the Kingdom of Tonga (Tonga) and the Independent State of Samoa (Samoa), and subject matter experts, who discussed their experiences and insights about approaches to corporate governance. The research also examined the literature on the rationale for the concept of ‘good governance’ which emerged in the latter half of the twentieth century, and corporate governance principles that support SOE models, to provide context for participant responses.</p> <p>Twenty-six interviews were undertaken in Tonga and Samoa between July and September 2019. Twelve participants were interviewed about Tonga’s SOEs, 12 participants were interviewed about Samoa’s SOEs, and two participants were interviewed about both countries’ approaches to SOE governance.</p> <p>The research finds that the principles of good corporate governance are dynamic and responsive, and can be modified to fit local situations. Despite the challenges implementing corporate governance principles, SOE directors and officials from Tonga and Samoa are asking how these tools can be applied in their country and are actively adapting and innovating the corporate governance model to improve local application. There are important assertive signs of ambiculturalism reshaping the good governance narrative with a Pacific flavour.</p>

Corporate Governance and Financial Inclusion

The paper focuses on a scantly researched phenomenon, namely, the extent to which financial inclusion is influenced by corporate governance practices. The question that normally arises is whether corporate governance practices are tailored to supporting the financial inclusion mandate. The other question is whether there are certain corporate governance practices that advance financial inclusion. This paper reviews extant empirical literature on these matters with a view of stimulating debate on the subject. Cognisant that institutions that advance financial inclusion are largely financial institutions, the starting point is relating to contemporary corporate governance practice in financial institutions. We know that financial institutions belong to a specific class of corporations whose failure affects society at large because of the financial services they provide. As a result, they are heavily regulated and their corporate governance structures are bound to differ from those of conventional firms. Similarly, we know that financial inclusion institutions are special types of financial institutions with mandates to provide financial services to underserved population segments which equally require special treatment. The scant literature available shows, albeit not conclusive, some evidence of a positive relationship between sound corporate governance and financial inclusion. However, more research on how corporate governance affects different dimensions of financial inclusion is recommended.

What’s in a King? Unveiling the pragmatic micro-perceived value attributes of a fulfilling corporate governance code for responsible sustainable development

Purpose A recent contribution entitled Global Responsibility and the King Reports was made to the literature that represents a significant advancement in the understanding of how standards of good governance are practised. The corpus revealed key insights about macro-institutional governance regimes, yet, extraordinarily little about meso-organisational and even less so, micro-individual corporate governance practice. This study aims to shed light on the micro-individual level of corporate governance practice which has remained obscured by drawing pragmatic insights from the landmark South African King Code experience that may be applied to other governance jurisdictions for global organisational responsibility. Design/methodology/approach To unearth micro-individual corporate governance code practices, a phenomenological exploration of corporate governance practitioners’ (CGPs) perceptions was conducted. Qualitative semi-structured interviews with senior board members of securities-exchange listed companies were conducted with 10 directors of leading multinational South African corporations listed on Africa’s largest formal financial market; the Johannesburg Stock Exchange. Recursive analysis of the qualitative data revealed key attributes that render a corporate governance code “fulfilling” as a consequence of being perceived as subjectively valuable by practitioners who are the ultimate end-users of the King Codes for advancing good corporate governance practice in each of their respective companies. Findings Two categories of fulfilling micro-perceived value attributes (MPVAs) of corporate governance codes emerged, namely, internal and external MPVAs. The three internal MPVAs are, namely, (I1) Meaningful innovation, (I2) Ethical pragmatism and (I3) Cultural transformation. The three external MPVAs are, namely, (E1) Governance legitimacy, (E2) Societal licencing and (E3) Risk mitigation. From these six attributes, two testable corporate governance code development propositions are advanced, namely, (P1) a corporate governance code with a higher constitution of MPVAs will fulfil CGPs more than one with less. (P2) A more fulfilling corporate governance code will enjoy higher adoption, application and/or compliance rates. Originality/value Illumining the subjective experiential perceptions that constitute the fulfilment of a corporate governance code deepens the pragmatic understanding of the “demand-side” or consumption of such codes in practice. Knowing these fulfilling MPVAs may also result in the development of codes that enjoy wider adoption and compliance rates thereby enhancing global corporate responsibility pragmatism through enhanced good governance. This study sheds light on the nexus where normative corporate governance principles and the enactment thereof meet at the coalface of organisational activity with an emphasis on those attributes that render them valuable to practitioners.

The ascendancy of stakeholder capitalism: What is its meaning for corporate governance?

We address the recent ascendancy of “stakeholder capitalism” and its potential impact on US corporate governance practice. Utilizing a four dimensional, analytic framework (legal, ethical, economic, and political), the authors evaluate the potential effects of stakeholder capitalism on the existing corporate governance of companies, concluding that stakeholder capitalism is a commitment, not a legal requirement; it is currently being practiced in boardrooms; and yet it is not the responsibility of the company, under stakeholder capitalism, to solve America’s social issues. The article concludes with business policy recommendations for directors concerning likely legal, ethical, economic, and political changes affecting stakeholder capitalism.

An Overview of Corporate Governance Practice in Companies Listed on the Libyan Stock Market

The corporate governance concept has recently become a major issue in the corporate practices of both developed and developing countries alike. Corporate governance is considered to be a tremendously important topic in many countries around the world; specifically within the emerging stock markets in order to protect the minority of shareholders. The aim of this research is to investigate corporate governance practices in companies listed on the Libyan stock exchange. In particular, to investigate whether corporate governance practices in these companies meet international standards of corporate governance and to identify the main obstacles to implementing them. The concept of corporate governance, corporate governance practices in developing countries, the Libyan stock market and OECD principles of corporate governance were discussed. A close-ended questionnaire was the main method for data collection. 100 questionnaires were distributed to the participants of the study, and only 76 questionnaires usable for analysis were received. Several issues related to corporate governance, depending on OCED principles, were investigated. The results revealed that corporate governance practice in the companies under investigation fit with OCED principles of corporate governance in some aspects and do not fit in others. Furthermore, the most important obstacles were perceived impeding corporate governance practice in companies listed in the Libyan stock market are "lack of compliance with the laws governing the work of companies" and "high cost of applying corporate governance rules". (JEL G30) Keywords: Corporate governance, the Libyan stock exchange, developing countries, OCED principles of corporate governance

Board Features and Timely Disclosure of Audited Accounts of Listed Deposit Money Banks in Nigeria

Objective–This study examines the moderating effect of company age on the relationship between board features on timely disclosure of audited financial statements. Specifically it tests the effects of board size, proportionate audit committee size, board independence on timely disclosure of the banks under study; and assess the influence of age as a moderator of board size, proportionate audit committee size, and board independence respectively as they affect timely disclosure of the listed deposit money banks in Nigeria. Design/methodology–The sample of 10 banks out of 15 listed deposit money banks in Nigeria were used. Secondary data was gathered from the sampled banks’ annual accounts and reports. Correlational research design was used to examine the relationship between the studied variables. Descriptive statistics, correlation, and hierarchical multiple regression analyses were eventually carried. Results –This study finds that board size and proportionate audit committee size are negatively related to timely disclosure of listed deposit money banks in Nigeria with the later exerting significant effect on the dependent variable. Furthermore, company age moderates both corporate governance and timely disclosure. Therefore, this study recommends that companies should strategize ways to improve corporate governance practice in order to inspire confidence on investors by timely disclosure of the financial report. Contribution – The study has been able to provide evidence on age as a moderator to some corporate governance determinants of timeliness disclosure peculiar to Nigerian Deposit Money Banks. It has also addressed the measurement issue regarding audit committee size, introduced a new term known as ‘proportionate audit committee size’ as a variable.

The phenomenon of corrupt pricing. On some aspects of institutional regulation (experience of the Russian Federation)

Based on the study of Russian economic and corporate governance practice, as well as the judicial practice corresponding to it in the zone of the selected problematic, the article undertakes a fragmentary analysis of the phenomenon called by the author “corruption pricing” - the formation by the competent management bodies of companies and their interconnected groups of prices for relevant goods, works and services that, according to the initial perception and formal criteria, satisfy the parties of the transaction, however, upon a more thorough analysis, they turn out to be inconsistent with the interests of significant agents of the corporation system, including title co-owners and beneficiaries of business entities, realizing exclusively the interests of a narrow group of persons, capable of unfairly influencing on the legal process of price formation. Turning to specific cases, the author puts forward a hypothesis regarding the inevitability of institutional restrictions of the freedom of pricing in a market (non-state) pricing zone, predetermined by the circumstances of the objective discrepancy between the motives of investment and professional participation in entrepreneurial activity in general and management practice, in particular, of its various subjects - business owners and service providers. their top managers, majority and minority investors, personnel and administration, customers and service providers in the order of outsourcing and the associated need for a creative interpretation of the principles of integrity and reasonableness and their summarizing principle - economic justice.