• 한국정보시스템학회지:정보시스템연구
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• 제20권2호
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• pp.207-228
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• 2011

IT governance is an integral part of enterprise governance and consists of the leadership, organizational structures, and processes that ensure organization's IT decision making for achieving organizational goal. Most firms have failed to resolve the balance in building IT governance. The challenge is to align IT strategy with business strategy in establishing and implementing effective IT governance. The purpose of this study is to find out the relationship between IT governance implementation factors and IS effectiveness, and the moderating effect of strategic alignment of IS strategy with business strategy on IS effectiveness. IT governance implementation factors consist of IT vendor management, IT human resource management, and IT infrastructure. Strategic alignment was measured as the alignment between business strategic orientation and IS strategic orientation that used in the research of Chan et al.(1997). In the relationship between three IT governance implementation factors and IS effectiveness, the results of multiple regression analyses showed that IT human resource management is an important determinant to influence IS effectiveness. The additional analysis using multiple regression showed that strategic alignment of IS strategy with business strategy has moderated the relationship between IT governance implementation factors and IS effectiveness.

• 경영과학
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• 제29권2호
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• pp.167-184
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• 2012

Business diversification is inevitable to survive under the current competitive business environments. The advent of new businesses makes corporate governance more complicated through corporate combinations. Recent introduction of new accounting standard, International Financial Reporting Standards(IFRS), accelerates the need for corporate governance analysis. This study analyses the complex corporate governance system and its relation to the business performance using social network analysis. Corporate inter-governance networks can be visualized easily in a social network diagram. 552 corporate governance data are empirically analysed in the Korean stock market. The changes in In-Degree between networks are positively related with the changes in corporate sales volume. We can find the same results using operating profits as corporate performance proxy. The results show that social network analysis technique can be applied to investments in the stock markets.

• The Journal of Asian Finance, Economics and Business
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• 제4권1호
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• pp.59-66
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• 2017

The purpose of this paper is to review the quality of corporate governance from the prior empirical literature. This study finds that most of the researchers developed the self structured corporate governance index and few researchers used the corporate governance index provided by rating agencies. This study also finds that there is no uniform basis to measure the corporate governance quality and observed the variation in terms of overall and individual attributes of corporate governance; sub-indices of corporate governance; scoring system; weighted and un-weighted method; statistical method; time period; financial and non financial companies; code of corporate governance; listing requirement; disclosure practices; legal environment; firms characteristics; and country perspective. This study also observed that overall corporate governance quality is very low in most of the studies and even quality of corporate governance varies in the firms within the same country. This study recommends that the boundary of corporate governance quality should be defined based on the agreed set of rules and regulation, code of governance and practices. This study also suggests that the regulator and policy makers should more emphasize on code of corporate governance and regulatory framework and monitoring to improve the quality of corporate governance.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.885-894
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• 2020

This paper aims to provide a review concept regarding the relationship between corporate governance and corporate sustainability in Indonesia. This paper examines the mechanisms and guidelines for implementing good corporate governance. This research used the literature review method and explores some effective corporate governance principles such as transparency, accountability, responsibility, independence, fairness, and equality to achieve business sustainability in Indonesia's setting. The results show that good corporate governance regulation in Indonesia has been improved, but the enforcement is still needed to be optimized because good corporate governance will positively impact corporate sustainability. Thus, sustainability requires more corporate innovation because sustainability is about how a company can create profits and value-added to society through corporate social responsibility (CSR) programs and how the company can contribute to the preservation of nature and the environment. In Indonesia, the board of directors, the board of commissioners, and the audit committees are positively related to CSR disclosure. Thus, leadership and management efforts are crucial. However, to comprehensively support the synergy of implementing good corporate governance, we need the role of the state, the business community, and society. This study provides important insights into the implementation of good corporate governance in achieving corporate sustainability in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.69-79
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• 2021

Good Corporate Governance (GCG) has been implemented by companies, especially companies that have gone public. However, many local companies still have not applied the principles of GCG. This study examines the implementation of the CG concept which is not fully implemented in family businesses in Indonesia. Besides, this research also aims to find out the role of the Internal Audit function in enhancing GCG practices. This research is a qualitative study that uses in-depth interviews, observation, and data triangulation, to gather evidence from exploratory case studies conducted in three family business firms. The results of this study found that CG is essential for the successful run of family businesses. After analyzing the data, we developed a new theory called Islamic Integrity Governance. The Internal Auditor plays a key role in improving GCG and a vibrant and agile internal audit function can be an indispensable resource supporting sound corporate governance. The internal auditor provides objective assurance and insight on the effectiveness and efficiency of risk management, internal control, and governance processes. Therefore, the Internal Auditor is an important pillar for effective and efficient GCG implementation. This theory concludes several concepts such as THTCL (Trustworthy, Honest, Transparent, Creative, Loyal). Internal auditors are needed because the concept of control is useful for improving GCG in business.

• 수산경영론집
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• 제33권2호
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• pp.99-125
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• 2002

Fisheries cooperative requires dual characteristics in performing its original function. Economic characteristic as an business enterprise and democratic characteristic as cooperative entity need to complete its objectives and survive in the complex rapidly-changing environment. After IMF crisis, fisheries cooperative received enormous government's financial support and credit-business department is perfectly under government's control. Regional fisheries cooperative also faces business failure, therefore pure cooperative movement can't save the fisheries cooperative. Economic characteristic as an business enterprise is more emphasized than democratic characteristic as cooperative entity in recent years. The theory of corporate ownership and governance can be applied to explain the ownership and governance of fisheries cooperative because fisheries cooperative is now similar to an business enterprise. During the IMF crisis the board, the auditors and the minority shareholders in business enterprise were revealed to be powerless against the mighty influence of controlling shareholders. Unconstrained discretion exercised by those controlling shareholders not only led to the firms'insolvency, but also brought down the country's financial system. During the past few years, Korea has experienced many institutional changes regarding its corporate governance structure. The introduction of outside directors, the strengthening of minority shareholders' rights, and enhanced accounting transparency are achieved to improve the efficiency of economic system. Investors, including institutional and individual, also seem to be more aware of governance issues now. Credit-business department of fisheries cooperative is recommended to introduce the institutions same as the case of the corporate governance structure. Fisheries cooperative except economic and credit-business department requires other prescriptions because it is emphasized as democratic cooperative entity. But we should be careful to interpret the ownership and governance structure because they are products of nations, eras and organizations.

• The Journal of Asian Finance, Economics and Business
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• 제8권9호
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• pp.287-300
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• 2021

The study is conducted to find out the impact of the country- and corporate-level governance and firm internationalization on stock liquidity of 120 listed firms in Japan, Hong Kong, Pakistan, and India. Panel data is used in the current study. The annual time span covered in the current study is 10 years. The current study explores results based on secondary data. The findings of the 'robust panel corrected standard error' estimator shows that the internationalization strategy of firms positively influences the stock liquidity. The internationalization strategy of multinational corporations proves to be an effective methodology for improving stock liquidity in the home market as well as abroad. The study also shows that a stronger relationship exists between stock liquidity and internationalization in those countries where the regulatory settings are effective, the judiciary system is efficient and shareholders' rights are protected. Corporate governance and stock liquidity are negatively associated. The study also finds a negative relationship between country-level governance mechanisms and stock liquidity. Whereas the 'robust panel corrected error' estimator shows a positive association between corporate governance mechanisms and firm internationalization. The study depicts that effective corporate governance motivates multinational companies to expand their business abroad.

• 수산경영론집
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• 제48권3호
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• pp.33-45
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• 2017

There have been several complications and problems about marine ranching policy. Regional conflicts have occurred in the process of selecting land for the pasture. And conflict occurred in post-management process. The causes of these conflicts were pointed out to lack of social science research and alternatives. The government-led initiative model, which ignores participation in each sector, has been pointed out as a problem. In order to increase the effectiveness of the marine ranching project, the following points should be considered. First, at the stage of establishing the ocean ranch business plan, social science approach should be considered together with natural science approach. Second, a governance system should be established to enhance the effectiveness of the marine ranch project. The governance system refers to a consultative body in which the central government and local governments, autonomous steering committees, research institutes, local civil society organizations, and participating companies participate. We can improve the efficiency of business by establishing and promoting direction, operation policy, and action plan of sea pasture business centering on governance system. Third, it is necessary to change the management system from the existing administration-led business model to the cooperative governance system - based model. The effectiveness of the marine ranching project can be improved through the governance system.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.223-231
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• 2020

This research aims to examine (1) the effect of carbon emission disclosure on firm value, (2) the effect of good corporate governance on firm value, (3) the mediating role of financial performance between carbon emission disclosure and firm value, and (4) the mediating role of financial performance between good corporate governance and firm value. The research sample includes 43 mining, agro, and manufacturing firms listed in the Indonesian Stock Exchange over the 2015-2017 period. Carbon emission disclosure is measured by an indicator of the Global Reporting Initiative Series of Environmental Aspect. Good corporate governance is measured by the corporate governance score of shareholder rights, boards of directors, outside directors, audit committee and internal auditor, and disclosure to investors. Financial performance is measured by return on assets, while firm value is measured by Tobin's Q. Data analysis uses the structural equation modeling. The result shows carbon emission disclosure and good corporate governance have no direct effect on firm value. On the other hand, financial performance mediates the effect of carbon emission disclosure and good corporate governance on firm value. It shows that higher carbon emission disclosure and good corporate governance are meaningless for the investor if they do not give any financial performance improvement.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.679-688
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• 2021

This study aims to verify family ownership's effect on earnings management by using corporate governance as the moderation variable. This study uses data panel regression with the period of 2011-2017. Corporate governance consisted of three dimensions, namely the board of commissioners, share ownership and transparency, and disclosure and auditing. Discretionary accruals measure earnings management with a model that controls company performance. Samples are manufacturing companies listed on Indonesia Stock Exchange. Observations were conducted on 198 firms throughout the year. The results indicated that corporate governance significantly affected earnings management. However, it declined the significance of family ownership toward earnings management. Hence, corporate governance can reduce earnings management. Furthermore, of the three components of corporate governance: the board of commissioners, shareholding, and transparency, the term shareholding precisely encouraged managers to conduct earnings management. Besides, the three core bodies of corporate governance lowered the significance of shareholding toward earnings management. This study's findings suggest that in family firms in Indonesia, earnings management is becoming more intensive than in non-family firms. Additional tests show that there is an entrenchment effect on family firms in Indonesia. Furthermore, corporate governance leads to earnings management.