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The challenge of corporate governance in Australian corporations is similar to those faced by the majority of corporations operating globally albeit the manner in which corporate governance is structured in Australia represents a strong reflection of the island continent’s people, egalitarian culture, and legislative framework. This article conside...
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... (1995) model of corporate governance in Figure 1 (below) provides a starting point to examine the role of corporate governance as an external control for Australian corporations (in both national and international markets). The typical external market control measures apparent in open market contexts (i.e. ...
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... Furthermore, the dimensions of sustainable finance/banking have been identified as ESG, and the effect of ESG is apparent for firms who utilise ESG compared to those that do not though there are limited or no specified guidelines specified by the government for sustainable firm/banking practices (Backhouse & Wickham, 2020;Saxena et al., 2021). Thus, risk management related to ESG is vital in a firm/bank (Gouiaa et al., 2020). ...
This study aims to investigate the implementation of climate change policy, governance practices, and green financing and the impact of environment, social, and governance (ESG), specifically on the environment, which includes emissions and climate change policy on stock price and firm’s profitability. Qualitative and quantitative methods are employed. An in-depth interview is conducted with nine non-listed firms across Sumatera chosen based on the most significant emissions contribution in Sumatera for the qualitative approach. Furthermore, this research covers green finance variables, including financing spent to finance investments that can reduce carbon levels. An ordinary least square (OLS) is employed for the quantitative analysis. The observations are listed banks on Indonesia Stock Exchange. Eight banks reported ESG during the observation period from 2002 to 2021. The result reveals that ESG, such as environmental, resource use, innovation, and emission policy and practice, positively and significantly influence stock price and profitability which is consistent with Nawaz et al. (2021). This might indicate that ESG are important, as the investors observe. The choice of resources used, innovation in the product/services concerning environmental factors, environmental investment, and climate change action are crucial in affecting the stock price as one of the indicators of investors’ sentiment. In addition, this also indicates that the greater the company focuses on the environment, the higher the profitability and the reinvestment rate.
... Sustainability requires good corporate governance, based on stakeholder engagement, fairness, transparency and accountability (Salvioni et al., 2016). The complexities of the relationship between CEOs and boards of directors with respect to corporate social responsibility deserve further largescale investigation since current governance theory does not explain this well (Backhouse & Wickham, 2020). All of these principles relate to boards of director that is more externally focused and define a governance approach that is geared towards sustainable value growth. ...
This study aims to analyze the financial indicators on the disclosure of sustainability reports, and the role of good corporate governance can strengthen the disclosure of sustainability reports. The novelty of this research is the role of the moderating variable of the audit committee and the board of directors is expected to be able to provide a solution to the inconsistency of the results of previous studies. The population of this study is mining companies listed on the Indonesia Stock Exchange (IDX) for the 2017–2019 period because they are high-profile companies that significantly impact environmental damage. This study shows that the variables of liquidity, profitability, and leverage have a positive influence on the disclosure of the sustainability report, while the size of the company has a negative effect (Aniktia & Khafid, 2015). The board of directors can strengthen the relationship between company size and profitability in the disclosure of sustainability reports and weaken the relationship between company size, liquidity, profitability, and leverage in the disclosure of sustainability reports. Companies can use the results of this study to consider the application of sustainability reports and investors can increase their attention to financial reports and sustainability in choosing where to invest.
... The importance of remuneration policy has also been understood by banking supervisory bodies who have often set out regulatory rules requiring companies to submit a remuneration report to shareholders (Backhouse & Wickham, 2020 This research fits into this line of research and aims to contribute to understanding whether there is a relationship between the board of directors' remuneration and banking performance in the banking system to be able to outline remuneration policies consistent with corporate performance objectives defined in terms of profitability. ...
This paper explores the relationship between board director compensation and bank performance for the period 1999–2021, considering the US banking system. The literature in this area with reference to financial companies and banks is poorly developed and leads to mixed results. Furthermore, the studies have mainly focused on the remuneration of the chief executive officer (CEO), neglecting that of the board members (Minnick et al., 2011; Khumalo & Masenge, 2015; Iskandrani et al., 2018). The scientific analysis methodology adopted is based on the analysis of panel data. Firstly, the results of the data analysis make it possible to highlight the existence of a significant link between the remuneration policies adopted by banks concerning the corporate results obtained in terms of profitability. Secondly, the results show differences, in terms of impact on banking performance, between the remuneration of chief executive officers and the remuneration of directors. The results of this study can help banks identify best practices for bank management as well as provide useful insights to different categories of stakeholders, especially the bank regulators and supervisors.
... Not only in the EU, but also in Australia, green growth, environmental accounting, and corporate social responsibility in general, gain more ground (Backhouse & Wickham, 2020), adopting legislation that protects the environment and trying to promote good practices from enterprises in order to be more eco-friendly. ...
Before the early negative effects of human activity on the environment and nature became apparent, there was no particular concern. The consequences of exponential population growth over the years brought a negative impact, increasing the risk and concern for the future. In recent decades, there has been an admittedly large, joint, and ambitious effort at the international and European levels to promote and implement the values and rules of green development and growth. Green growth is crucial regarding the policy implemented by the European Union (EU). Therefore, it calls on all its member states to participate in this effort concerning the environment and natural resources, having as its main tool environmental taxation. This paper primarily aims in proving that environmental taxation facilitates, through the proper implementation of European Union rules, the achievement of green growth. The research methodology followed, was the study of the environmental indexes of the European Union countries from 2002 to 2020, including Greece. They were analyzed and compared to the European Union average indexes (Eurostat, 2020). The study results highlighted that environmental taxation is crucial in enhancing green growth by increasing the revenues of state funds and reducing environmental problems at European and international levels.
... The increase in environmental awareness and investors' interest in socially sensible companies, which pursue decent performance on environmental and social matters, redirects the attention of firms to focus on their non-financial performance (Backhouse & Wickham, 2020;Talbot & Boiral, 2015). Besides, there is an increasing appreciation amongst investment analysts that companies' responsible moves towards social and environmental performance support to attain investment returns and long-term financial performance (KPMG, 2013 Furthermore, previous researchers used CSR reporting that focuses merely on environmental and social performance whereas the notion of sustainability reporting focuses not only on social and environmental disclosure but also on economic performance. ...
This study, based on the stakeholder theory, explores the relationship between Australia’s electricity companies’ sustainability reporting practices and their financial performance. This paper uses the GRI G4 sector-specific guidelines to examine Australia’s electricity companies’ disclosure level on sustainability, return on assets to assess the companies’ performance, and descriptive statistics and multiple regression to test hypotheses. Relying on the secondary data collected from companies’ annual reports, websites, corporate social responsibility (CSR) reports, or standalone sustainability reports, the regression results show that the sustainability reports have a connection with the companies’ performance. Additional analysis also reveals that only economic and social performance disclosures of sustainability reporting significantly influence the companies’ performance. Though earlier studies on the relationship between sustainability reporting and financial performance have mostly been based on international data, this paper inspects the connection between the adoption of sustainability reporting and the financial performance of electricity companies within Australia that provide essential services to society and have a significant influence on sustainable development. Moreover, this research arbitrates prior inconsistent findings (Garg & Gupta, 2020; Bhattacharyya & Rahman, 2019; Sila & Cek, 2017) and adds to the sustainability reporting and firms’ performance literature
... Similarly, Australia introduced a new regulation instructing all companies to capture in their audited accounts all necessary financial and non-financial information relating to climate risk. This is contained in a revised legal provision ASXCGP 4.3 and 7.3 issued in 2018 [50]. ...
... Similarly, Australia introduced a new regulation instructing all companies to capture in their audited accounts all necessary financial and non-financial information relating to climate risk. This is contained in a revised legal provision ASXCGP 4.3 and 7.3 issued in 2018 [50]. ...
Corporate social responsibility represents the relationship between business and society. The significant benefits of being socially and environmentally responsible are the focus of this paper. This review emphasized the business oriented notion of Corporate Social Responsibility, where the idea is captured to justify existing arguments supportive of community and environmental programs. The review attempted to clarify major research questions: (1) why do businesses engage in society initiatives; (2) what inspires the decisions to support the society – a specific comparison highlighted between China and India. The study featured various CSR and sustainability regulations currently in force in different countries. In order to achieve the aim of the study, the review begun with overview of CSR based on well-established definitions and subsequently discussed the two major perspectives; the free market theory and CSR theory. This gave a clears explanation of why some businesses invest their resources to benefit the society while others are profit seeking. Finally, the paper sought to establish the integration of CSR with corporate sustainability. The findings suggest that, contemporary CSR programs are largely influenced by regulations and legal provisions across the world. And ideally, a firm’s CSR performance is influenced by internal and external factors which are captured in stakeholder theory and institutional theory. The findings, validate the ascension that the integration of CSR with corporate sustainability (CS) could produce a coherent platform to advance environmental sustainability.
In the challenging backdrop of the pandemic, educational institutions, particularly teacher education entities, found themselves at a crossroads. Administrative services, traditionally seen as the backbone of these institutions, underwent significant shifts. Using a tool inspired by the Area X. Administration section of the Accrediting Agency of Chartered Colleges and Universities in the Philippines (AACCUP) instrument and grounded in the principles of Kivistö and Pekkola (2017), this study adopts a mixed-method approach to dissect these transitions. Our research unveils a robust move towards digitization, emphasizing the growing role of online learning and communication platforms in the modern educational business model. However, this digital embrace brings forth challenges, especially in areas like resource allocation, supply chain management, and stakeholder communication, which demand innovative business solutions. The findings underscore the need for ongoing improvement, adaptability, and the integration of modern business practices in the educational sector. This research serves as a roadmap, offering actionable insights for institutions aiming to optimize their administrative functions amidst changing business landscapes. Furthermore, it sets the stage for future researchers, emphasizing the blend of traditional educational values with contemporary business strategies, and encourages a more profound exploration of how educational institutions can navigate and thrive in today’s dynamic business environment.
The objectives of this study are twofold. The first objective is to assess the degree to which governance principles are implemented in village-owned enterprises, VOEs (Badan Usaha Milik Desa, BUMDes) within the Cilacap regency. Identifying the obstacles to the successful implementation of governance practices in BUMDes is the second objective. A mixed-methods approach was used in the research technique, which combined quantitative and qualitative descriptive analyses. The quantitative component involved the administration of a questionnaire to eighty respondents, including BUMDes managers, village chiefs, and oversight bodies. The qualitative component consisted of focus group discussion (FGD), and observations to gather additional insights and perspectives. The primary findings of the study indicate that the application of governance principles exceeds fifty percent, indicating implementation that ranges from effective to extremely effective. However, the study also identified a number of barriers, such as a lack of synergy between the village government, BUMDes, and the community, limited human resource capacity, the absence of legal entity status for BUMDes, and ineffective governance mechanisms, which are similar to Lauwo et al. (2022) research. The significance of this study rests in the fact that research outcomes can direct efforts to overcome obstacles and improve the administration and accountability of BUMDes in the Cilacap regency and other regions with comparable characteristics.
On behalf of the Editorial team, I feel proud to introduce Issue 4 of Volume 10 (2021) of the Journal of Governance and Regulation. The current issue includes scholarly articles falling in the purview of a wide range of research themes, for example, managerial competencies, consumer relationship intention, accounting standards, principal-agent dynamics, public health emergency, innovation, and fiscal policy, among others.
