A Cracked Public Administration in Peru: How "Vacunagate" Has Shaken the Foundations of an Already Damaged Society

While crises are ubiquitous in Latin America, due to its geographical characteristics as well as its turbulent business environment, countries such as Peru have also extreme rates of corruption and deep institutional weakness. These factors, taken together, undermine any attempt of national governments or society's collective efforts towards achieving sustainability. This paper aims to analyze the "Vacunagate" scandal that occurred in Peru during the first negotiations of the vaccination process against COVID-19, using a case study method, and focusing our discussion from the Agency Theory as well as from leadership and institutional perspectives. The results of the analysis emphasize how the "Vacunagate" event generated relevant constraints towards the achievement of the SDG 16, and its specific targets related to provide justice for all, deal with organized crime, reduce corruption, and create accountable institutions. In addition, the study provides insights and implications for organizations in Peru that would have to operate under a turbulent business environment, considering a business-as-usual corruption and a weak institutional context.

Investigating the link between board independence and dividend distributions in South Africa

Purpose: As shareholder-elected monitors, independent non-executive directors (INEDs) should ensure that managers do not retain earnings to promote their own interests. The relationship between board independence and dividend distributions was hence investigated for selected companies listed on the Johannesburg Stock Exchange (JSE). The country offers a well-developed corporate governance framework to listed companies. Design/methodology/approach: Data on the considered companies' dividend payout ratios (DPRs), board independence and six control variables were obtained from Bloomberg for the period 2007-2021. The significance of the observed trends in these variables was considered by conducting analysis of variance (ANOVA) and Fisher's least significant difference (LSD) tests. The hypothesised relationship was assessed using a mixed-model regression. Findings/results: The results are in line with prior research showing that dividends are often omitted or reduced during and after crisis periods, that is, the global financial crisis (2008/2009) and the coronavirus disease 2019 (COVID-19) pandemic (2020/2021). A negative but statistically insignificant relationship was reported between DPR and board independence. Practical implications: Although board independence was not significantly related to dividend distributions for the sampled companies, INEDs still perform an important monitoring role. Shareholders are thus encouraged to play a more active role in the election of these directors. Originality/value: This study extends and refines previous research in South Africa and reveals new insights regarding board independence and dividend distributions during three King regimes and distribution-related regulatory changes. Copyright: © 2023. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License.

Dividend payout decisions under uncertainty: the ownership influence in the early days of the COVID-19 pandemic in Finland

PurposeThis paper examines whether ownership type has a moderating influence on dividend payouts during the COVID-19 pandemic crisis with respect to changes in profits. Future uncertainties because of the pandemic will result in a perceived need for liquidity within the company, but retaining cash may be risky for shareholders who could look for less risky alternatives. The dividend payout strategy is thus even more closely related to the overall type concentration and strategy of the owners during the crisis.Design/methodology/approachThe effects are explored and tested on early data from 2019 to 2020 of Finnish companies using ANCOVA while controlling for profitability and sector variables.FindingsA significant effect on dividend payout during the COVID crisis was found when the companies are dominantly held by individual owners validating early suggestions on such an influence. Therefore, this study contributes further to the academic debates on the influence of ownership concentration in times of crises. This study lists certain sectors which experience diminished profits during such a crisis which pinpoints sector separation in future discussions.Research limitations/implicationsThis study explores early data from a specific context in the Nordic countries. However, it does so out of purpose as explained in the paper.Practical implicationsOwnership type and concentration matters when it comes to dividend payout decisions under uncertainty with regard to changes in profit. Investors need to accept these behavioural insights into their decisions.Originality/valueThis study examines the signalling effect of dividends by analysing how actual or anticipated change in profitability due to a crisis is reflected by owners and leads to dividend payout decisions under uncertainty.

Strategic management theory in a post-pandemic and non-ergodic world

This quote, written 30 years ago, describes the pandemic environment in which the world exists today. As Meyer et al. explained, such quantum discontinuous changes require entrepreneurial responses. In the ongoing Covid-19 pandemic, firms must devise strategies to deal with short-term discontinuities and significant uncertainty to survive. After the pandemic eases, longer-term strategic changes may be needed to navigate the competitive landscape arising in the 'New Normal' which has resulted from technological, socio-political, and institutional changes that resemble the causes of environmental jolts explained by Meyer et al. This New Normal is unlikely to be a static equilibrium, because the pandemic shock has triggered another unexpected dynamic. As Nobel Laureate Douglass North explained, we now exist in a non-ergodic world in which the new equilibrium after major disruptions continues to change thereafter, similar to dynamic equilibria in open systems. Thus, firms need new and more flexible strategies to achieve what North described as adaptive efficiency. While it is unclear which changes caused by the pandemic will persist, it seems evident that certain aspects of the business environment will change with the current crisis serving as a tipping point. Hence, this new environment (during the pandemic and thereafter) begs the question 'How does strategic management theory help us understand how firms can navigate the New Normal?'. We examine two main strategic management theories prominent in the field for the last three decades - resource-based theory and agency theory - in light of the opportunities and challenges likely to emerge in the non-ergodic New Normal environment, and comment on implications for strategic management more broadly. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

Analyzing the impact of stock options on talent retention and knowledge product generativity at knowledge intensive firms

Purpose: Since the subject matters of human resources activities on knowledge intensive firms have been changed by coronavirus disease 2019 (COVID-19) pandemic, this study aims to analyze the impact of stock options on talent retention (knowledge worker retention) and knowledge productivity (innovation) in terms of patents, which directly affect the financial performance of knowledge intensive firms. Design/methodology/approach: Drawing on agency and contingency theory to design the causality model, this study analyzes the data obtained from 227 publicly traded knowledge intensive firms in information technology (IT) and healthcare sectors. Panel data analysis is used to determine the long run causal relationship between firm innovation, knowledge worker retention and financial performance, in addition to ANOVA for evaluating firm size as a lurking variable on the effect of stock options. Findings: The results of this study demonstrate that, when firm size is taken into account, (1) stock options significantly affect knowledge worker retention and firms' financial performance, and this impact is stronger in a during-pandemic situation than in a pre-pandemic situation (2) firm innovation significantly affects firms' financial performance and this impact is stronger in a during-pandemic situation than in a pre-pandemic situation;(3) knowledge worker retention doesn't have a significant impact on firm innovation and firms' financial performance. Moreover, random effect regression analysis for long-term relationships also depicts the same results: knowledge worker retention has non-significant impact on firm innovation and financial performance, but firm innovation significantly affects financial performance. Originality/value: To the best of the authors' knowledge, the authors are the first to compare the effects of stock options, knowledge worker retention and firm innovation in both pre- and during-pandemic scenarios where firm size is taken into consideration. © 2023, Emerald Publishing Limited.

Auditors' response to regulators during COVID-19: disclosures of key audit matters

PurposeNew Zealand regulatory bodies guided preparers and auditors of financial statements to deal with potential COVID-19 impacts on the financial statements and audit procedures. This study provides evidence of auditors' response to the impact of COVID-19 on the reporting of key audit matters (KAMs) in audit reports of listed companies in New Zealand. The purpose of this paper is to address this issue.Design/methodology/approachA sample of 50 New Zealand listed companies was selected to compare the KAMs in 2019 (pre-COVID-19) and 2020 (during COVID-19). The study uses content analysis to evaluate the KAMs' disclosures and descriptive analysis to examine the differences between 2019 and 2020 in terms of the auditor type, industry sector and accounting standards.FindingsAuditors responded positively to the request from regulators to communicate the impacts of COVID-19. The findings show an increase in the amount and length of KAMs in 2020 compared to 2019, with 82% of companies and 61% of KAMs reporting the impact of COVID-19. The real estate and information technology sectors disclosed more on the impact than other sectors. In analysing the KAMs, accounting standards for inventories, property plant and equipment, impairment of assets, investment property, revenue from contracts with customers and leases were highly affected by COVID-19.Practical implicationsThe findings support regulators to evaluate how well auditors communicated matters relating to COVID-19 in the audit report. Also, the findings will help standard setters to identify key accounting standards affected by COVID-19 of KAMs and provide insights to users on how the KAM reporting enhances communicative value during the pandemic.Originality/valueThe current study captures the impact of COVID-19 on the reporting of KAMs by comparing changes before and during the pandemic.

The Effect of Profitability, Board Size, Woman on Boards, and Political Connection on Financial Distress Conditions

This research proves the consistency of Agency Theory as a solution to explain the role of the influence of profitability, board size, woman on board, which is divided into two, namely woman on board of commissioner and woman on board of directors, as well as political connections to financial distress. Panel data from these variables were obtained from companies listed in LQ-45 in 2017–2021 which were then analyzed with a quantitative approach through the regression analysis of Ordinary Least Squares, Fixed Effects, Random Effects, and Robust, which was carried out simultaneously. The results of this analysis have a higher level of accuracy compared to partial testing. The first finding explains that the Profitability Ratio has a negative effect on financial distress, the second finding explains that board size has a positive effect on financial distress, the third finding explains that woman on board of commissioner has no effects on financial distress, however, the fourth finding explains that woman on board of director has a positive effect on financial distress, while the fifth finding explains the political connection has no positive effect to financial distress. Panel data-based research through simultaneous testing can be considered for principals in appointing agents to manage the company. Simultaneous analysis of panel data is a new breakthrough in research testing with more detailed results.

The implications of the pandemic for the corporate governance, remuneration and sustainability performance of South African listed companies

The study examined the implications of the recent pandemic on the corporate governance, remuneration and corporate sustainability performance of South African listed companies. Data from 42 companies was analyzed using the panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods from 2010-2021. Findings revealed that the pandemic negatively impacted the selected companies. This study revealed that the pandemic had a good impact on some companies and not just bad ones as claimed by previous researchers. Results from COVID-19-related expenses, debt-to-equity ratios and staff costs revealed a negative but significant result in the estimated model. Other variables such as current ratios, net profit margins and board diversity revealed a positive and significant relationship with all the dependent variables. Hence, a very severe implication of the pandemic on the performance of companies is confirmed through COVID-19related expenses, staff costs and directors' remuneration. These have a very strong negative impact on the future performance, survival, and sustainability of the selected companies. Lastly, a strong relationship between corporate governance and corporate sustainability performance was confirmed as shown by ROA, board size, directors' remunerations and board diversity. This study provides insight for stakeholders such as governments, directors and policymakers to develop both preventive and proactive policies to protect and guide companies from future similar pandemics. To avert and prevent future negative implications on companies, this study recommends a well-structured scheme for all of the company's staff, cash reserves and IT governance. © 2023, Innovative Research Publishing. All rights reserved.

Is supply chain finance an antidote to SMEs in the economic crisis? - A qualitative inquiry

PurposeThis exploratory study aims to explore the operational and financial constraints faced by small and medium enterprises (SMEs) in India during the COVID-19 pandemic. The paper highlights the role of supply chain finance (SCF) in the uncertain business environment caused by the pandemic.Design/methodology/approachThe study adopts an inductive approach and conducts convergent interviews with 32 SME owners and bank officials who are associated with SME-related financial transactions. The analysis of the interview data has been done through a grounded theory approach.FindingsThe findings portray four key themes representing the operational and financial constraints faced by SMEs during the pandemic. Further, the study identifies four drivers of SCF adoption among SMEs, including capital constraints, high inventory turnover cycle time, high order fulfilment cycle time and long debtors' collection period.Practical implicationsThe study provides various insights to the managers and owners of SMEs to deal with the economic crisis and eliminate the financial pressure created by the pandemic. The study enlightens the policymakers about the struggles of the SMEs during the economic turmoil created by the pandemic and guides them to introduce the relevant policies to resolve their problems.Originality/valueTo the best of the authors' knowledge, this is the first study to identify the factors driving the SMEs to adopt SCF due to the economic chaos created by the pandemic. Also, the study theoretically contributes to the literature by developing a theoretical framework for SCF adoption based on grounded theory.

Moral licensing, identity and eco-leadership: Can public managers' support for a green recovery be undermined?

IMPACTLocal public managers are increasingly involved in policy co-design, especially in the aftermath of the Covid 19 pandemic. Municipal top management will benefit from this article because it shows how public managers' policy priorities are shaped by their own and their leaders' goals for the local administration. The authors provide a model clarifying the role of managers' environmental self-identity and municipal eco-leadership in policy decisions that involve a trade-off between economic growth and protecting the environment/climate. Previous research has not shown whether 'economy versus environment' messages can influence public managers' policy priorities. This article is important because it provides evidence, while there is still time to use it in policy-making, to support efforts to combat issues like climate change.

Adaptive R&D contract for urgently needed drugs: Lessons from COVID-19 vaccine development.

This paper analyzes an incentive contract for new vaccine research and development (R&D) under pandemic situations such as COVID-19, considering the R&D contract's adaptability to the pandemic. We study how the public sector (government) designs the adaptive R&D contract and offers it to pharmaceutical enterprises. An agency-theoretic model is employed to explore the contract whose terms are an upfront grant as a fixed fee and a sales tax credit as an incentive tool, examining how the values of related parameters affect contract term determinations. We found that the adaptability factor derived from urgent policies such as emergency use authorization (EUA) as well as tax credits, can be utilized as practical incentive tools that lead vaccine developers to increase their effort levels for R&D success. We also found that public-private state-emergency contracts may not follow the conventional wisdom. Counterintuitively, dependency on tax credits (incentive part) decrease as the client's degree of risk averseness increases in the emergency contract.

Does COVID-19 Pandemic Motivate Privacy Self-Disclosure in Mobile Fintech Transactions? A Privacy-Calculus-Based Dual-Stage SEM-ANN Analysis

The emergence of mobile financial technology (mobile fintech) services raises numerous public concerns regarding privacy issues;consequently, researchers in mobile technology acceptance have focused on consumers' privacy self-disclosure behaviors under the usual scenario. However, there is still a lack of understanding on how external influences, such as a public health crisis, affect consumers' privacy decision-making process. Therefore, in this article, we examine the effects of privacy- and pandemic-related antecedents on mobile fintech users' information self-disclosure behavior during the coronavirus disease 2019 pandemic. The present research adopts a self-administered questionnaire with 712 effective responses for data collection and a two-stage partial least squares-structural equation modeling-artificial neural network (PLS-SEM-ANN) approach to test the theoretical lens proposed. The results indicate that the significant structural paths in the model are consistent with the proposed hypotheses and existing literature. Surprisingly, face-to-face avoidance (FFA) does not significantly influence consumers' self-disclosure willingness. Infection severity and infection susceptibility were insignificant with FFA. The present research is the first to investigate consumers' privacy-related behavior via integrating the privacy-calculus framework with control agency theory. This research focuses on consumers' decision-making during the pandemic, explicitly highlighting the macroenvironment's role in influencing an individual's behavior.

Stakeholder governance and the CSR of banks: An analysis of an internal governance mechanism based on game theory.

Banks have an important social responsibility to serve the real economy and to maintain financial stability, and they also need to be responsible to borrowers and others. Against the backdrop of the COVID-19 pandemic affecting the global economy and increasing financial risks, it is particularly important for banks to assume social responsibilities. This study theoretically analyzed the outstanding applicability of stakeholder governance theory. Using a two-stage game method, the optimal pressure intensity of the social responsibility stakeholders was calculated, and the dynamic performance of shareholders was deduced. We found that the establishment of the social responsibility stakeholder governance mechanism will prompt the bank to fulfill its social responsibilities; rational social responsibility stakeholders will not lead to poor bank management due to excessive behavior; and shareholders with social responsibility can self-consciously choose the investment projects with lower negative externalities. The conclusions can be summarized as follows: The participation of stakeholder and the establishment of the social responsibility function of the board of directors can help promote a bank's social responsibility performance. This work studied the social responsibility of banks from the new perspective of stakeholder governance, expands the theoretical boundaries, and puts forward relevant suggestions to enhance the application value of this research.

Dividend payout decisions under uncertainty: the ownership influence in the early days of the COVID-19 pandemic in Finland

Purpose: This paper examines whether ownership type has a moderating influence on dividend payouts during the COVID-19 pandemic crisis with respect to changes in profits. Future uncertainties because of the pandemic will result in a perceived need for liquidity within the company, but retaining cash may be risky for shareholders who could look for less risky alternatives. The dividend payout strategy is thus even more closely related to the overall type concentration and strategy of the owners during the crisis. Design/methodology/approach: The effects are explored and tested on early data from 2019 to 2020 of Finnish companies using ANCOVA while controlling for profitability and sector variables. Findings: A significant effect on dividend payout during the COVID crisis was found when the companies are dominantly held by individual owners validating early suggestions on such an influence. Therefore, this study contributes further to the academic debates on the influence of ownership concentration in times of crises. This study lists certain sectors which experience diminished profits during such a crisis which pinpoints sector separation in future discussions. Research limitations/implications: This study explores early data from a specific context in the Nordic countries. However, it does so out of purpose as explained in the paper. Practical implications: Ownership type and concentration matters when it comes to dividend payout decisions under uncertainty with regard to changes in profit. Investors need to accept these behavioural insights into their decisions. Originality/value: This study examines the signalling effect of dividends by analysing how actual or anticipated change in profitability due to a crisis is reflected by owners and leads to dividend payout decisions under uncertainty. © 2022, Andreas Lindén, Othmar M. Lehner, Heimo Losbichler and Minna Martikainen.

The Impact of Organizational Characteristics on Corporate Cash Holdings: Evidence from Saudi Arabia During COVID-19 Period

The article investigates the level and financial determinants of corporate cash holdings in the kingdom of Saudi Arabia during the COVID-19 period, at the beginning we reviewed the academic accounting literature to develop the theoretical framework of corporate cash holdings in terms of definition, motivations, and theories, then to conduct our empirical study we use a sample consisted of the largest 50 corporations listed in the Saudi stock market, going further, the corporate cash holdings mean was 14.96% during the study period, the article's results prove empirically a positive relation between corporate cash holdings, leverage, and ownership concentration among the sample corporations. and a negative relationship between corporate cash holdings, corporate size, cash flow, growth opportunities, working capital, and dividends, finally, the article results will add to the academic accounting literature and help researchers and corporations' management to understand the financial determinants, motivates, theories and the optimal amount of corporate cash holdings based on scientific evidence. © 2022 NSP Natural Sciences Publishing Cor.

An Investigation of the Link between Major Shareholders’ Behavior and Corporate Governance Performance before and after the COVID-19 Pandemic: A Case Study of the Companies Listed on the Iranian Stock Market

One of the basic functions of establishing corporate governance (CG) in companies is improving performance and increasing value for shareholders. Expanding the company’s value will ultimately increase the shareholders’ wealth. Therefore, it is natural for shareholders to seek to improve their performance and increase the company’s value. If CG mechanisms cannot perform this function in companies, they do not have the necessary efficiency and effectiveness and, therefore, cannot improve the efficiency of companies. This article investigated the connection between the power of major shareholders and the modality of CG of companies listed on the Iranian capital market before and after the COVID-19 pandemic. The statistical sample of the research included 120 companies listed on the Tehran Stock Exchange for the selected period from 2011 to 2021. The results showed that the concentration of ownership is harmful to adopting corporate governance (GCG) practices. In particular, the high level of voter ownership concentration weakens the corporate governance system (CGS). The results of this study, which was conducted using panel analysis, revealed that the concentration of ownership impairs the quality of CGS, and major shareholders cannot challenge the power of the main shareholder;it alsonegatively affected the quality of business boards, both during and before the COVID-19 pandemic. The competitiveness and voting rights of the major shareholders negatively affected the quality of board composition before and after the COVID-19 pandemic. The concentration of voter ownership also negatively affected the quality of CGS, both during and before COVID-19, and the competitiveness and voting rights of major shareholders before COVID-19. This concentration positively affected the quality of CGS after the COVID-19 pandemic.

Policy responsiveness and institutions in a federal system: Analyzing variations in state-level data transparency and equity issues during the COVID-19 pandemic.

In the absence of a coherent federal response to COVID-19 in the United States, state governments played a significant role with varying policy responses, including in data collection and reporting. However, while accurate data collection and disaggregation is critically important since it is the basis for mitigation policy measures and to combat health disparities, it has received little scholarly attention. To address this gap, this study employs agency theory to focus on state-level determinants of data transparency practices by examining factors affecting variations in state data collection, reporting, and disaggregation of both overall metrics and race/ethnicity data. Using ordered logistic regression analyses, we find that legislatures, rather than governors, are important institutional actors and that a conservative ideology signal and socio-economic factors help predict data reporting and transparency practices. These results suggest that there is a critical need for standardized data collection protocols, the collection of comprehensive race and ethnicity data, and analyses examining data transparency and reductions in information asymmetries as a pandemic response tool-both in the United States and globally.

Conceptualizing Cybersecurity Management Impact on Performance: Agility and Information Technology Governance

It is inevitable that the era of Industrial Revolution 4.0 is here, businesses are digitalizing their processes especially under the uncertainty inflicted by the COVID-19 pandemic to stay competitive. However, businesses and governing agencies soon realizes the potential pitfall of excessive digitalization without addressing the security aspect of it with the sharp rise of cybersecurity incidents. Consequently, the area of cybersecurity management (CM) has been identified as one key area that can help businesses enjoy the full benefits of modern technology. Despite this, it is observed that not all business owners are convinced of the importance of cybersecurity management. This paper proposes a framework through the theoretical lens of Dynamic Capability View (DCV) and the Agency Theory to study what impact CM has on a firm's performance, providing a foundation for more in-depth study on the matter for practical and academic purpose. © 2021 IEEE.

Leadership as Stewardship: What Does the Story of the Unjust Steward Have to Say?

With the various high-profile global debates and protests about the urgent need to address climate change, the environment and sustainability, as well as the outbreak and pandemic spread of COVID-19, the focus turns once more to the concept of stewardship as a form of leadership. This chapter outlines the key features of stewardship theory, the etymology of stewardship as a concept and some of its biblical and theological aspects. The chapter then turns its focus to the story of the unjust steward as found in the New Testament. Although his dishonesty is not commended, the steward’s prudence is. It is contended that this constructive lesson about the affirmation of the normative quality of prudence with resources in a time of crisis – despite the unethical context of dishonesty – offers an interesting position for the continuing reflection on leadership and business ethics. Using the categories of prudence to refer to ‘responsible’ and honesty to refer to ‘good’ – it is argued that with the present demand to address climate change, the environment and sustainability, prudent (responsible) rather than honest (good) leadership may become the prime focus for reflection on ethics in business and leadership as a form of stewardship. © 2022, Springer Nature B.V.

Does risk matter for executive compensation?

PurposeThe purpose of this study is to examine whether chief executive officer (CEOs) are paid for the systematic and/or unsystematic risks and whether there is any optimum risk premium level in the executive pay.Design/methodology/approachFirm and year fixed effect panel data regression was used to estimate the relationship between total CEO compensation and systematic (market) and unsystematic (firm) risks.FindingsThere is no nexus between CEO pay and unsystematic (diversifiable) risk;however, the association between CEO compensation and systematic (undiversifiable) risk is positively significant in line with agency theory. Moreover, it is revealed that this positive relationship has an optimum point (curvilinear).Research limitations/implicationsThis paper contributes to the controversial argument in the literature by investigating the situation in the Swiss market. Switzerland is an exemplary country because of its direct democracy (consensus) structure for executive pay. This study is limited by the fact that only total CEO compensation is analyzed.Practical implicationsAs a practical implication, it is shown that after the optimal point, the higher compensation does not motivate the CEOs to take higher risks and does not provide the organizations with any additional benefit.Originality/valueThe finding of this study supports agency theory’s risk premium assumption and provides additional evidence to the contradictory results in the literature with a new country setting that has paramount importance in executive compensation phenomena. It is a comparative finding with prior literature also outlines the future research area in the risk and compensation literature.