New issue of the Corporate Ownership and Control journal

The editorial team of Virtus Interpress is happy to announce that a new issue of the Corporate Ownership and Control journal has been published. This issue is represented by the authors from developed and developing countries, such as the USA, Germany, Australia, Italy, Egypt, and Ghana.

The issue focuses on the key topics such as corporate governance, firm performance, enterprise resource planning systems, management accounting, board diversity, foreign directors, independent directors, women directors, board power, CEO power, agency theory, tournament theory, internal audit, earnings management, deferred tax, tax avoidance, sustainability performance, corporate social responsibility, management board, shareholder value concept, integrated reporting, stakeholder value creation, human resources, hospitality industry, marketing, etc.

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

The authors of the first article, Patrick Ulrich and Hasan Andac Güler, study enterprise resource planning systems with 94 participants. The outcomes indicate that using ERP systems within management accounting offers benefits that are positively interrelated with the extent and the satisfaction of using this information to make decisions. As a higher extent of using this information and a higher degree of satisfaction with this information is positively interrelated with organizational performance, they show that using ERP systems within management accounting helps improve organizational performance.

David Qian, Wahed Waheduzzaman, and Sarod Khandaker examine the impact of board diversity including the gender, nationality, and independence of board members on the financial performance of publicly listed companies in China. This study finds that women on the board impact positively on firm’s financial performance while measured by ROA, but not by Tobin’s Q. The study also finds that the nationality of directors and independent board membership is found to have no significant influence on firms’ financial performance.

Zhonghui “Hugo” Wang and Zonghui Li extend the research of the antecedents of the CEO-TMT pay gap by directly comparing different theoretical predictions regarding the impacts of board power and CEO power on the CEO-TMT pay gap. Conducting dynamic panel analyses with GMM estimator on a sample of 2,117 firm-year observations in the S&P 500 between 2006 and 2013, the authors empirically test the contrasting predictions regarding the relationships among board power, CEO power, board-CEO power imbalance, and the CEO-TMT pay gap. The authors find that board power is negatively associated with the CEO-TMT pay gap and CEO power has the opposite effect.

Marc Eulerich, Joleen Kremin, K. Kelli Saunders, and David A. Wood prior outlined that previous research finds that the internal audit function plays a critical role in organizations, yet there is still a stigma toward the profession. The authors examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe (113 observations) and the United States (124 observations) for the year 2017 and an experiment (65 observations) in 2018. The authors find that when internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to change audit findings.

John MacCarthy examines the effect of earnings management and deferred tax on tax avoidance. A probability sampling technique selected twenty-four firms from 2001 to 2020 on the Ghana Stock Exchange. A quantitative research technique is used to test five hypotheses. Panel data regression is employed to predict the effect of earnings management on tax avoidance. The study revealed that earnings management and other macroeconomic variables accounted for or explained 77.9% of tax avoidance practices of the selected firms. The study revealed a significant and positive relationship between earnings management, deferred tax, and leverage on tax avoidance.

The following study by Neveen Noureldin and Mohamed A. K. Basuony aimes at filling the existing research gap by scrutinizing the influence of females on management boards on sustainability performance in a developing country using cross-sectional data from the Egyptian Stock Exchange (EGX) of non-financial companies over the period 2012–2019. The analysis is considered one of the earliest empirical studies that tests the relationship of females on the management board and sustainability performance in Egypt. Results indicate that female representation on board has a positive impact on sustainability performance, which demonstrates that companies that have females on their boards have a better sustainability performance.

Carl-Christian Freidank and Franziska Handschumacher underline that the recent discussions about the “right” profit in business administration have led to uncertainty in research and practice about which performance measures and business management concepts should be used to manage companies. The authors believe that this is only possible with the help of top financial ratios with regard to the shareholder value concept. Therefore, the methods of the weighted average cost of capital approach and the capital asset pricing model should be used to determine the value of the company.

The aim of the following article by Valentina Della Corte, Massimo Aria, Giovanna Del Gaudio, Fabiana Sepe, and Enrico Di Taranto is to understand whether the current literature deals with the general issue of stakeholder value creation and of specific marketing activities for human resources and if they can generate value for different stakeholders. In order to achieve this goal, the paper uses a bibliometric analysis that determines the conceptual structure of the topic, highlighting its evolution over time. Accordingly, this study uses the precise context of the hospitality industry since human resources are of strategic importance in the world of hospitality.

Francesco De Luca, Stefania Migliori, Hussain Muhammad, and Agnese Rapposelli examine the effectiveness of corporate governance mechanisms by analysing the influence of corporate board structure on firm performance. A sample of 224 non-financial publicly traded Italian firms is selected to test the proposed research hypotheses and evaluate the firm’s efficiency by adopting the DEA approach. The findings show that corporate governance mechanisms are crucial in the performance of Italian publicly listed firms. The results show that the inclines and declines in DEA efficiency rankings are associated with the characteristics of the corporate boards.

We hope you will enjoy reading this issue of the journal!