International Journal of Corporate Governance (5 papers in press)

Regular Issues

• Effect of CEO-TMT pay ratio on the value of new product introductions  
  by Prachi Gala, Saim Kashmiri, Cameron Nicol 
  Abstract: This study attempts to investigate the unexplored role played by a key corporate governance factor (CEO-TMT pay ratio) in explaining the variance in stock market response to new product introductions. Results of an event study support the authors’ hypotheses that the stock market reacts less positively to announcements about new product introductions when the firms introducing these products have high CEO-TMT pay ratios. We also find that high advertising intensity and a history of many new product introductions tend to attenuate the negative impact of CEO-TMT pay ratio. A history of many corporate social concerns, however, tends to further strengthen this impact. These results have important implications for board members, investors, customers, compensation committee members, and scholars investigating the valuation of new product introductions.
  Keywords: CEO-TMT pay ratio; compensation; new product introductions; event study; abnormal stock returns; advertising; corporate social concerns.
  DOI: 10.1504/IJCG.2024.10065065
   
  
• Corporate governance and environmental social and governance disclosures: evidence from the Asia-Pacific countries  
  by Monika Dhochak, Abhishek Ranga, Prince Doliya 
  Abstract: The objective of the study is to examine the impact of corporate governance parameters on the quality of environmental, social and governance (ESG) indicators for the Asia-Pacific countries. For this purpose, we have used the quality of ESG disclosures as dependent variable and board gender diversity, independent directors, CEO duality and board size as independent variables along with the firm-level and country-level control variables. The empirical analysis is based on the five-year panel data collected from the Refinitiv Eikon database for the Asia-pacific companies from the year 2016 to 2020. The findings of the study suggest that board gender diversity and independent directors have a positive and significant effect on the ESG disclosures, while the CEO duality has a significant and negative impact. The findings also suggest that independent and female board members bring transparency and instigate more social and environmental initiatives, which results in the transmission of the firm's positive image.
  Keywords: ESG disclosures; corporate governance; board composition; board characteristics; Asia-pacific countries; environmental; social and governance.
  DOI: 10.1504/IJCG.2024.10063055
   
  
• Enshrining principles of corporate governance in the legislative framework on insurance in Mauritius: a critical assessment  
  by Bhavna Mahadew 
  Abstract: The advent of the Insurance Act 2005 of Mauritius has no doubt revolutionised the insurance sector for the last 15 years. However, with the evolution of crimes especially cyber ones, there has been a pressing need for the legislative framework on insurance to be reviewed. With the recent scandals that the sector has known, it has been widely argued that they could have been avoided with the correct infusion and enshrinement of the principles corporate governance as provided for by the 2016 Code of Corporate Governance. This article assesses the legislative framework on insurance to find that some of the major components are already deeply engrained. This article finds that there are still some components of corporate governance which have not been crystallised in Mauritian law. It advocates and recommends for their implementation or enshrinement in law.
  Keywords: Mauritius; insurance; corporate governance; Insurance Act 2005; 2016 Code of Corporate Governance Mauritius.
  DOI: 10.1504/IJCG.2024.10063425
   
  
• Corporate social responsibility: initiatives undertaken by companies concerning education during COVID-19  
  by Sneha Banerjee, Sudeshna Saha 
  Abstract: A nation's progress depends upon a skilled workforce, which can be obtained when the present generation gets education and the proper guidance. A considerable part of the country is at a halt, leaving the poor without a way to earn a living, which directly hits children's education too. The situation is exacerbated by the fact that most youngsters cannot afford to pay for the new normal of online education, which is out of the grasp of the majority of people. Therefore, the paper aims to find out the different stakeholders' innovative ideas, i.e., companies, NGOs, and governments, as their CSR activity to cater to the students during the COVID-19 phase, when the schools were closed for several months. Another area highlighted in the paper is the problems faced by the students during COVID-19 phase. The funding of the CSR companies, particularly in education is highlighted too.
  Keywords: corporate social responsibility; CSR; COVID-19; education; new-normal; beneficiaries; education in new normal; challenges; India.
  DOI: 10.1504/IJCG.2024.10064341
   
  
• Does corporate governance influence corporate social responsibility in developing African countries? Evidence from manufacturing companies listed in Ghana and Nigeria's Stock Exchange  
  by Richard Arhinful, Leviticus Mensah, Halkawt Ismail Mohammed Amin 
  Abstract: The principle of corporate governance mandates comprehensive disclosure of all corporate activities in annual reports and their presentation during shareholder meetings, a practice embraced by manufacturing companies in Nigeria and Ghana, showcasing their CSR endeavours in these reports. Employing purposive sampling, it selected 14 companies from the Ghanaian Stock Exchange and 17 from the Nigerian Stock Exchange between 2011 and 2020. Utilising random effect panel binary logistic regression and the generalised method of moments (GMM), the study scrutinised board characteristics' influence on CSR disclosures in both countries. Notably, non-executive directors and board busyness significantly bolstered CSR disclosures, whereas board size, CEO duality, and female representation showed positive but statistically insignificant effects. Significantly, the study's insights serve as a valuable directive to shareholders, board members, and company managers in both countries, advocating increased CSR disclosure due to its profound impact on brand image and corporate reputation.
  Keywords: corporate governance; corporate social responsibility; CSR; generalised method of movements; GMM; heteroskedasticity; Ghana; Nigeria.
  DOI: 10.1504/IJCG.2024.10064342