New issue of the Corporate Governance and Sustainability Review journal

The editorial team of Virtus Interpress is happy to present the first issue (Volume 4, Issue 1) of the journal “Corporate Governance and Sustainability Review” in 2020. The papers published in this issue are devoted to very topical issues ranging from the influence of corporate governance on social and environmental responsibility to the impact of audit committee characteristics on earning management; from the relationship between quality of governance and quality of assets to the linkage between regulatory governance and financial stability of nations.

The study by Kali Charan Sabat and Bala Krishnamoorthy is focussed on the impact that the corporate environmentally and socially responsible initiatives have on the economic growth of the firms. The authors analyze 48 Indian manufacturing listed companies to verify the direct relationship between corporate governance, environmental and social factors and economic returns of the companies; and the role of corporate governance as a mediator to the relationships between green supply chain management, socially responsible supply chain management and firms’ economic return. The findings show that socially responsible supply chain management positively influence profitability.

Amer Al Fadli focuses on the issues of corporate governance and social responsibility initiatives. Through a longitudinal data analysis conducted on 80 non-financial publicly listed (in the Amman Stock Exchange, Jordan) companies in industrial and service sectors, the author investigates the relationship between governance factors (board size, presence of an audit committee on the board, and CEO duality) and level of Corporate Social Responsibility reporting.

Sana Masmoudi Mardessi and Yosra Makni Fourati provide evidence that audit committee independence and having female members reduce real earnings management. The analysis is conducted on a sample of 124 companies listed in the Amsterdam Stock Exchange and the study contributes to the literature because the Dutch context is not yet explored especially following the issue of new Dutch Corporate Governance Code. The research investigates a legal and institutional environment of a small economy and the findings can represent a benchmark for studies in countries with similar economic and institutional structures.

Wasiu Ajani Musa, Ramat Titilayo Salman, Ibrahim Olayiwola Amoo, and Muhammed Lawal Subair investigate the relationship between firm-specific characteristics and audit fees of quoted consumer goods firms in Nigeria. The study proves that audit fees are affected by some firm-specific factors as auditee size, auditee risk, auditee profitability, and IFRS adoption. Based on the results, the authors suggest that firms should implement corporate governance principles that address issues relating to board independence and committee sizes to guide activities in the consumer goods sector since profitability behave negatively with audit fees.

Chirag Malik and Sonali Yadav explore the asymmetric effects of time-varying volatility in sustainability indexes in India (Greenex, Carbonex, and ESG index). The findings of this research provide the stakeholder like government, corporates, investors and employees a forward-looking approach to be inclined to towards sustainability; show evidence in support of the concept of sustainability by looking at the shareholder’s perspective.

Vinay Kandpal identifies and analyzes the causes that affect non-performing assets in the Indian public and private sector banks. The paper highlights that the lack of frequent interaction with borrowers, the manipulation of income or financial statements by borrowers, the death of earning members of the family may affect non-performing assets.

The paper by Tarika Singh Sikarwar and Saurav Sharma aims to find out in a cross-country context if a relationship between the quality of regulatory governance and financial stability exists. Generally, the findings show a weak association between the quality of regulatory governance and financial stability for nations examined, but supervisory independence and accountability and the role of central banks contribute to the financial stability of nations.

The full issue of the journal is available at the following link.

We wish you pleasant and informative reading!