The second issue of Corporate Governance and Sustainability Review journal

The new issue of the journal CORPORATE GOVERNANCE AND SUSTAINABILITY REVIEW focuses on the questions of corporate governance and sustainability, risk management, financial decision making process, reporting and bank performance.

Frank Lehrbass investigates the Russian decision not to hedge its well-known oil price exposure by making use of expected utility theory. Secondly, Russia’s bailout of Rosneft is subsumed under this model. It was shown that under expected utility maximization the assumptions of an unbiased oil forward market and a strictly convex utility function – representing a risk-acceptant attitude of the Russian leader – are sufficient to explain the open position in oil, the bailout of Rosneft and the difficulties to settle the conflict in Ukraine peacefully.

Hugh Grove and Mac Clouse develop lessons learned from the $86 billion Valeant scandal to emphasize the importance of sustainable corporate governance principles as a pathway to avoid malpractices in the future. This scandal was even larger than the infamous $78 billion market cap destruction scandal of Enron which occurred 15 years earlier in 2001. These scandals appear here to stay as the new normal so these gatekeepers should be doing everything they can to analyze the ongoing fraud problems.

Sana Shahid, Basheer Ahmad and Munib Badar focus on demographic and behavioral factors that plays their role in altering their decision making process. Questionnaires were distributed for collecting response of different professionals holding managerial positions encompassing Demographic Factors i.e. gender, age, marital Status and education, Behavioral factors i.e. Excessive Optimism, Over Confidence and Emotional Intelligence on risk perception.

Julia M. Puaschunder captures the human natural drive towards intergenerational fairness in order to retrieve information on how to implement intergenerational justice. Based on the idea of intergenerational equity as a natural behavioral law, the following paper theoretically outlines the current societal demand for eternal equity and proposes intergenerational justice theories.

Lorenzo Gelmini offers fruitful practical insights since only a truthful assessment of the cultural pattern, as such as Islam, can lead to a conscious approach towards sustainability. His paper offers insights for future research on the broad field of social and environmental issues, as well as Integrated Reporting, since it suggests to take always in account – when addressing issues and potentialities of non-financial reporting – the cultural pattern.

Themistokles Lazarides detects the variables that have an impact on performance. Ratios and stratification variables are used in panel data regressions and the time period of the study is from 2004 to 2013. The results show that performance (ROAA) is dependent on four categories of ratios (Asset quality, Capital ratios/risk and solvency ratios, Operations ratios, Liquidity ratios).

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