Impact of corporate network position on strategic risk and company’s performance – evidence from Poland

Purpose The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market. Design/methodology/approach This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness. Findings The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk. Research limitations/implications The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data. Originality/value To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.

Corporate Governance from an Islamic Moral Economy Perspective: The Dimensions and Analysis

Corporate governance from Islamic perspective is derived from Islamic worldview, whereby the God is at the apex and human beings are below Him. However, there is no unified definition of corporate governance under shari’ah point of view. To bridge the applicability of Islamic corporate governance model with Islamic moral economy framework, some key questions to be addressed are as follows. (i) do Islamic corporate governance models consistent with the aspiration of Islamic moral economy? (ii) what are the important dimensions of Islamic corporate governance? (iii) what is the concept of Islamic corporate governance inspired by the ideals of Islamic moral economy? To accomplish the objectives, this paper follows critical review analysis as a methodology, through which it aims to highlight how each Islamic corporate governance model models are being constructed and to compare those models with Islamic moral economy perspective. The paper proposes the suitable model of Islamic corporate governance under the Islamic moral economy perspective.JEL Classification: G34, O16How to Cite:Sakti, M. R. P., Tareq, M. A., & Kamiyama, H. (2021). Corporate Governance from an Islamic Moral Economy Perspective: The Dimensions and Analysis. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 359-378. https://doi.org/10.15408/sjie.v10i2.21511.

Corporate governance model, stakeholder engagement and social issues evidence from European oil and gas industry

Purpose Lately, sustainability issues are increasingly affecting all sectors, even if oil and gas industry is highly required to improve its social performance because of the societal pressure to environmental protection and social welfare. Sustainability concerns and corporate governance features and practices are more and more connected because sustainability has been perceived as a crucial topic by owners and managers. In this perspective, the empirical analysis aims to explore whether and to what extent, sustainability-oriented corporate governance model is linked with social performance. Design/methodology/approach By adopting a multi-theoretical framework that includes the legitimacy theory, the stakeholder theory and the resource-based view theory, this analysis used a sample of 42 large European-listed companies belonging to the oil and gas industry. The authors run fixed effects regression models by using a dependent variable, i.e. the social score, available in ASSET4 Thomson Reuters, and some independent variables focused on sustainable corporate governance models, stakeholder engagement, firm profitability, market value and corporate risk level. Findings Drawing upon the investigation of a moderating effect, findings display that stakeholder engagement is positively associated with corporate social performance and it can be considered an important internal driver able to shape a corporate culture and most likely to address corporate social responsibility issues. Research limitations/implications This study confirms the need to develop an organizational and holistic approach to corporate governance practices by analyzing internal and external governance mechanisms. From the managerial perspective, managers should opt for a sustainable corporate governance model, as it is positively correlated with corporate social performance. Originality/value There is an urgent need to investigate sustainability issues and their potential association with firm internal mechanisms, particularly in the oil and gas industry. This paper can extend the current body of knowledge by pointing out a positive relationship between stakeholder engagement and firm social performance.

Indigenous corporations: Lessons from Māori business forms

The economic and political empowerment of Indigenous people are linked although the issue of economic empowerment is often overlooked. This Brief analyses the corporate governance model and business structures used by Māori in New Zealand along with some developments in Canadian Indigenous businesses. Based on this, the Brief makes suggestions for proving the regulatory support and options available for Indigenous businesses in Australia.

FEATURES AND FACTORS OF FORMATION OF AN EFFECTIVE PERSONNEL POLICY OF AGRICULTURAL ENTERPRISES

The article is devoted to the study of the features, as well as the establishment and analysis of factors for the formation and imple-mentation of an effective personnel policy of enterprises, including the agricultural sector of the economy. The parameters that affect the effectiveness of the company's personnel policy are defined. The basic principles of personnel policy implementation are summarized and expanded. It is established that the implementation of the personnel policy of the enterprise and the achievement of maximum use of its human resources potential should be based on the creation of equal employment opportunities and career growth of employees. It is proved that the personnel policy of an enterprise is formed under the influence of the external environment, namely socio-political, demographic and socio-economic processes, while adapting through the prism of strategic goals and objectives into a unique manage-ment model for each individual business entity, the main purpose of which is to maximize the full disclosure and use of its own personnel potential. A set of strategic tasks is outlined that should ensure the constant preservation of the numerical and qualitative composition of employees through its periodic restoration and maximum use of human resources in order to constantly improve the efficiency of person-nel work. Various approaches to the interpretation of the content of the concept of «personnel policy» are studied and generalized. The industry features of enterprises operating in the agricultural sector of the national economy are established and cause specific problems in creating a model of personnel policy. It is established that the effectiveness of the personnel policy of agricultural enterprises depends not only on the chosen corporate governance model, which is based on a system of strategic goals and objectives, but is also directly influenced by a complex of factors specific to this sphere of the economy. It is noted that the personnel policy should be formalized as much as possible and clearly, while at the same time remaining flexible and open to continuous improvement. It is noted that when form-ing and actually implementing the personnel policy, it is important for an enterprise to achieve a certain balance of interests of interested parties – the enterprise itself and its employees.Keywords: personnel policy, human resources potential, enterprise personnel, Personnel Management, labor activity, personnel development, agricultural sector of the economy. Статтю присвячено дослідженню особливостей, а також установленню й аналізуванню чинників формування та реалізації ефективної кадрової політики підприємств, зокрема аграрної сфери економіки. Визначено параметри, що впливають на ефек-тивність кадрової політики підприємства. Узагальнено і розширено базові принципи реалізації кадрової політики. Установлено, що реалізація кадрової політики підприємства і досягнення максимального використання його кадрового потенціалу мають ба-зуватися на створенні рівних можливостей зайнятості та кар’єрного зростання працівників. Окреслено комплекс стратегічних завдань, що мають забезпечувати постійне збереження чисельного та якісного складу працівників через його періодичне віднов-лення і максимальне використання кадрового потенціалу. Вивчено та узагальнено різноманітні підходи до трактування змісту по-няття «кадрова політика». Установлено галузеві особливості підприємств, що діють в аграрному секторі національної економіки і зумовлюють виникнення специфічних проблем створення моделі кадрової політики. Установлено, що ефективність кадрової політики підприємств аграрної сфери залежить не лише від вибраної моделі корпоративного управління, а й знаходиться під безпосереднім впливом комплексу специфічних для цієї сфери економіки чинників.Ключові слова: кадрова політика, кадровий потенціал, персонал підприємства, управління персоналом, трудова діяльність, розвиток персоналу, аграрна сфера економіки.

An action plan to protect and strengthen corporate governance practices in Russian corporations

Subject. The article considers the corporate governance implementation in Russia under modern conditions and evaluates its efficiency. Objectives. The aim is to identify key areas for strengthening and developing the corporate governance practices in Russian companies that will enable to improve the existing corporate governance model. Methods. The study draws on comparative analysis, ranking, classification, formation of ratings on the basis of sociological surveys. Results. The paper includes recommendations on creating a single standard to assess corporate government practices, which should involve three parties, i.e. the business, rating agencies and the State, and consider their interests. I offer a methodology for overall assessment of components investigated by rating agencies that may help investors understand the business activity of companies. Conclusions. Public companies and State-owned corporations demonstrate the best results in the sphere of corporate governance. It is critical to enhance corporate governance in Russia, which implies developing the corporate legislation, improving the law enforcement practice. Companies should be willing to take measures to perfect corporate governance.

Comparative analysis of development paths within the framework of the two-tier corporate governance model in Germany, Italy, and China

This article aims to reveal the three trajectories of establishing the two-tier model and select Germany, Italy, and China to discuss the ontology of the two-tier model, its integration with other local models, and its development variants. This article compares the similarities and differences of the two-tier model in the organizational structures of three countries to show that there is institutional inertia or path dependence in the design of legal systems and rules on corporate governance. In the two-tier model, the management agency performs the corporate business, the supervisory agency supervises the corporate operations, and the relationship between the management agency and the supervisory agency is subtle and complex. Germany is the original user of the two-tier model. Italy introduced the two-tier model as an optional model in addition to the traditional model. China is learning from the world’s experience and establishing its own two-tier corporate structure based on its own conditions. As Buck and Shahrim (2005) mentioned, cultural traditions, historical development paths and models, the overall development level and maturity of the market economy, social legal awareness, and the improvement of the rule of law influence the corporate governance structure that the country chooses to adopt