New issue of the Corporate Governance and Sustainability Review journal
The editorial team of Virtus Interpress is honored to introduce the third issue of the journal “Corporate Governance and Sustainability Review” in 2023. This issue contains the papers that focus on different corporate governance issues, namely environmental disclosure quality, value relevance, cost of equity capital, ownership holding of institutional investors, sustainability performance, corporate strategy, board characteristics, overvaluation, financial statistics, firm performance, accounting and disclosure, management accounting practice, governance and reporting, etc.
The first paper by Fatma Baalouch, Salma Damak-Ayadi, Khaled Hussainey, and Issal Haj-Salem examines the connection between environmental disclosure quality and the cost of equity capital, market valuation, and institutional investors. Concentrating on French companies listed in the Société des Bourses Françaises (SBF) index between 2009 and 2014, this study innovatively measures environmental disclosure quality based on IASB and GRI standards. The results indicate that enhancing ED quality leads to desirable economic consequences for disclosing companies and investors.
The second paper, authored by Peter Kwarteng, Kingsley Opoku Appiah, and Joseph Akandeagre Agana explores the role of corporate strategy in the association between corporate governance and sustainability performance in Sub-Saharan Africa. The study finds that corporate governance has a positive and significant contribution to sustainability performance. Furthermore, this study demonstrates that corporate strategy acts as a mediator that influences the link between corporate governance and sustainability performance. The findings of the study shed fresh light on the board members, practitioners, and policymakers for planning and promoting sustainability practices, as well as strategies and firm governance necessary for sustainable development. The paper concludes that companies with effective corporate governance structures stand a better chance of demonstrating better sustainability performance, specifically with strategy decisions targeted at sustainability integration.
In the next paper, Ayishat Omar and Johnson Owusu-Amoakor investigate the influence of corporate governance mechanisms, especially board characteristics, on equity overvaluation in the United States. The study highlights the significant and negative relationship between board gender diversity and equity overvaluation, adding to the literature on the impact of governance mechanisms on equity misvaluation. This paper underscores the complexities inherent in the separation of ownership and control in publicly held U.S. firms.
Peter Chi Wan Yip and Elvy Pang examine the relationship between corporate governance and firm performance in companies listed in China’s Greater Bay Area, utilising data from the Hang Seng and Shenzhen Component Indices (2015–2021). Their research shows no significant impact of corporate governance on operating and financial performance, and factors such as the largest shareholder’s ownership, board independence, and board size do not significantly influence firm performance. In light of these findings and limitations such as aggregated data and limited sample size, the necessity for further research is underscored.
Lastly, the paper by Samira Benelifa and Faten Nasfi Salem uniquely focuses on exploring the nature of management accounting practices in Tunisian small and medium-sized enterprises through semi-structured interviews with 192 firms. The originality of this study is that it examines the level of sophistication of MAPs in the Tunisian context, using a set of MAPs (38 practices) instead of focusing on a singular number of practices. It is also the first analysis to determine its level in Tunisian enterprises using the IFAC model.
The full issue of the journal is available at the following link.
We wish you pleasant and informative reading!
