Journal of Management and Governance

De Matteis, Fabio; Angelelli, Mario; Striani, Fabrizio; Corallo, Angelo

2024 Journal of Management and Governance

doi: 10.1007/s10997-024-09724-w

This paper aims to provide the basis for a conceptual framework on the linkage that integrates the application areas of blockchains in the public sector and their impact dimensions. Applying the literature review methodology, 33 selected articles were explored in-depth to identify their thematic key points, which led to their attribution to two categories consistent with the RQs of this work: application areas and impact dimensions of the blockchain technology in the public sector organizations. The results enable the identification of a cross-functionality of the impact dimensions (trust, governance, and sustainability) that cut across the main application areas (public health, transactions and fiscal processes, and policy-making), from which derives the basis for a conceptual framework. The conceptual framework links the application areas and impacts of blockchain in the public sector and leads to some concluding remarks on managerial/policy implications and future research opportunities.

Nel, George; Jachi, Moses; Scholtz, Henriette

2024 Journal of Management & Governance

doi: 10.1007/s10997-024-09725-9

This study explores how institutional and managerial ownership influence the connection between executive directors’ pay and firm performance in South Africa. Employing panel linear regression models and Johnson-Neyman analysis, complex insights are revealed. This study revealed that institutional ownership acts as a double-edged sword, positively moderating the link between long-term and total incentive remuneration and Return on Assets (ROA), while negatively influencing the relationship with market-based metrics like Tobin’s Q. This suggests that institutional shareholders play a dual role in enhancing long-term alignment and tempering short-term performance pressures. Managerial ownership also demonstrates mixed impacts, positively moderating the relationship between both short-term and total incentive remuneration, and ROA, but negatively moderating the link between long-term incentive remuneration and Total Shareholder Return (TSR). These findings underscore the delicate balance between managerial incentives, shareholder interests, and long-term value creation. While higher managerial ownership aligns with short-term shareholder goals, it may also lead to managerial entrenchment and short-termism in certain contexts. This study contributes to literature on corporate governance and executive remuneration in an emerging market setting.. By revealing the nuanced effects of institutional and managerial ownership on the pay-performance relationship, the paper provides valuable insights for policymakers, investors and corporate leaders aiming to improve governance practices and foster sustainable value creation. Our study offers essential implications for corporate governance practices and sets the stage for further inquiry into the intricate relationship between ownership structure, executive compensation, and firm performance.

Cappellieri, F.; Vinciguerra, R.; Ricciardi, A.; Pizzo, M.

2024 Journal of Management and Governance

doi: 10.1007/s10997-024-09722-y

In a principal-principal setting, the presence in the boardroom of independent directors appointed by minority shareholders can provide a unique and effective corporate governance solution to reduce agency costs related to undue appropriation of the private benefits of control by majority shareholders to the detriment of minority ones and compress information asymmetry issues. Independent minority directors acting as conduits of information to the market facilitate further engagement by active shareholders, promote better communication, and reduce disclosure manipulation. The growing relevance of Corporate Social Responsibility (CSR) related information on decision investment and the easy manipulation of non-financial information has prompted the authors of this paper to investigate whether independent minority directors can play an important monitoring role in conveying non-financial information to the market, thereby reducing managerial self-serving and manipulative practices in non-financial reporting. By examining a sample of Italian-listed companies from 2017 to 2020, we perform a lexicon-based content analysis on their non-financial reports and then use panel data dependence techniques to address our research aim. Our results suggest that, by reducing managerial self-serving and manipulative practices of non-financial reporting, minority shareholders’ representativeness impacts firms’ communication choices. This evidence confirms that independent minority directors are the right path for boosting minority shareholders’ legal protection and ensuring investors’ awareness in the decision-making process.

Białek-Jaworska, Anna; Szymanek, Paulina

2024 Journal of Management and Governance

doi: 10.1007/s10997-024-09723-x

This paper analyses the regulatory context, i.e., how IFRS preparers investing in Poland react to banning IFRS use by domestic firms in the alternative trading market (NewConnect) after six years of regulatory arbitrage. In other words, it studies their portfolio investment and foreign direct investment (FDI) outward sensitivity to the end of regulatory arbitrage opportunity given by the alternative market’s regulation in the country where accounting law limits IFRS use to regulated markets and business groups where the parent company uses IFRS. The contribution is built on the natural experiment of prohibition of domestic IFRS preparers issuing shares on the alternative (not-regulated and cheaper) trading market after 2012. The originality is delivered by implementing a de facto measure of IFRS adoption by foreign investors to identify a 69% growth rate of IFRS preparers investing in Polish firms in 2012 (317% growth of Swedish investors and 219% of Portuguese) that dropped to 8% in 2013 and 3% in 2018. Thus, we check whether investing decisions consider opportunities to gain funds or attract other investors and build trust through IPOs on the unregulated market dedicated to start-ups and engaged in R&D activity. We use difference-in-differences, GMM dynamic panel-data analysis with Arellano-Bond and Arellano-Bover/Blundel-Bond estimators for the Knowledge-Capital model on portfolio investment, outward FDI overall, and three FDI components based on debt, equity, and earning reinvestment in 2003–2019. We found that banning IFRS use by domestic firms in the alternative market discourages portfolio investments, debt-based FDI flows and FDI earnings reinvestment. Also, total FDI and equity-based FDI from countries with more IFRS preparers have been reduced since 2013 due to the IFRS ban for domestic firms.