Corporate Sustainability and Financial Performance of Banks in Muslim Economies: The Role of Institutions

Sustainability performance (SP) provides firms with the opportunities that if strategically handled could improve the financial performance of these firms through reputation building. This research aims to investigate the impact of SP on the bank's performance in Muslim countries. This research further investigates the role of institutions in moderating the relationship between SP and the banks' financial performance. It is found that banks with higher SP tend to have better financial performance. Furthermore, the marginal results suggest that the impact of SP is greater for banks in countries with greater institutional quality. These findings are robust to different proxies of financial performance. It is imperative not only to report sustainability practices, but it is equally important to publicize these activities. The sustainable business models would create value for the banks if properly managed and communicated well. This can be made more effective with strong institutions in the country. Moreover, the results are suggesting that banks can enjoy more through contributing to society, doing their part in the equitable distribution of wealth, social justice, and economic wellbeing.     

Technological innovations and firms’ productivity in new patent regime: Evidences from Indian pharmaceutical industry

Innovative firms enjoy more market benefits by conducting both technological (product and process) and nontechnological (organizational and marketing) innovations. This study aims to examine the relationship between technological innovations and firms’ productivity in Indian pharmaceutical industry in new patent regime. In particular, we analyze the direct impact of product and process innovation on the productivity of 168 Indian pharmaceutical firms over 2000–2013. Findings of this study reveal that technological innovations are positive source of firms’ productivity. However, this relationship varies with types of technological innovations and also ownership structure of firms. Moreover, this study also finds that the impact of technological innovation is stronger for multinational enterprises.     

Land tenurial dynamics and participatory forestry management in Bangladesh

Of late, participatory forestry management, more popularly known as ‘social forestry’ (SF), has acquired great significance in Bangladesh as a strategy for both forest resource management and rural development. However, research on the contextual factors such as social relations, institutional structures, forest policies and land tenurial arrangements which regulate SF's performance in the field has been limited. Land ownership and tenurial arrangement is one crucial factor which has remained virtually unexplored in the context of Bangladesh SF. This article examines the land use and tenure arrangements in selected SF projects in Bangladesh. It focuses on the perceptions and choice of the SF farmers regarding land ownership, tenure and use; implications of central land tenurial policy on farm productivity and farmers' motivation; and also on the difference between farmers' land use choice and the assumptions of the SF planners. It shows that land tenure is a complex issue for SF. Although tenurial security is a major motivating force for farmers, providing permanent land ownership alone has little impact on farm productivity or on the growth of collective effort among SF farmers. Farmers need institutional assurance and support (especially from the government) to fully utilize the potential rights and benefits associated with such ownership. © 1998 John Wiley & Sons, Ltd.     

Employers,the state and the politics of institutional change: Vocational education and training in Austria,Germany and Switzerland

An in‐depth comparison of Austria, Germany and Switzerland shows that the employers' constellation and the elites of the public education administration affect patterns of institutional change. If large firms are the dominant actors and collaborate with elites in the public education administration, institutional change follows a transformative pattern. If small and medium‐sized firms are in a strong position and have the power to influence public elites according to their interests, self‐preserving institutional change results. The article also shows that it is not so much trade unions as small and medium‐sized firms that act as a brake on transformative change. The article adds to the literature of institutional change by arguing that specifying and explaining patterns of institutional change requires that sufficient scope be allowed for actors' creative handling of institutions. It also suggests that in order to differentiate between self‐preserving and transformative change, one has to specify the important institutional dimensions that sustain an institution. The article combines Mill's method of agreement and difference.     

Risk Misallocation in Public–Private Partnership Projects in China

ABSTRACT

This article attempts to compare the preferred and actual risk allocation and then to evaluate the impact of risk misallocation (if any) on project performance. The results show a significantly negative relationship between project performance and risk misallocation. The smaller the degree of risk misallocation was, the more successful the project would be. One group of three risks (including “Corruption,” “Government's intervention,” and “Government's reliability”) and the other group of three risks (including “Approval and permit,” “Immature juristic system,” and “Land acquisition”) were found to contribute considerably to the prediction of project performance. This article provides information on the impact of risk misallocation on project performance in China's public–private partnership (PPP) projects. To enter and perform well in China's PPP market, private firms should pay particular attention to the identified risks.     

Ingredients of institutional reputations and citizen engagement with regulators

The purpose of this study is to examine the link between the reputational components of efficacy and moral reliability of institutions, and citizens' compliance with institutional recommendations. Research on bureaucratic reputations highlights the significance of positive political reputations based on credibility and legitimacy, but the impact of these components is not systematically isolated and studied. We draw insights from political psychology to move beyond a positive‐negative valence‐based approach of reputation, and highlight the different effect of efficacy and moral reliability components of reputation on citizens' cooperation, engagement in water saving activities, and levels of complaints. We use the Cypriot Water Authority as a case study and inquire how its institutional reputation influences Cypriot citizens' behavior regarding water use. Our data was collected via a representative national survey administered to a random sample of 800 Cypriots in the spring of 2009 and show that favorable perceptions of particular components of institutional reputation shape the levels of satisfaction with specific organizational outputs.     

Making Institutions in Central and Eastern Europe,and the Impact of Europe

The end of communism in Central and Eastern Europe offered the region a unique opportunity for institutional redesign. Thanks to the variety of historical experiences, inherited structures, transition paths and deal sweeteners during the round-table talks, post-communist Europe initially witnessed much institutional diversity. Throughout the course of the past decade, however, there has been a notable convergence of institutional designs across the region. The process of convergence has been, in part, a response to domestic political concerns, but the demands of the European Union have also played a role. This article plots the course of institutional development in the region, outlining some of the major cases of institutional redesign and highlighting both the positive and negative impact of 'Europe' on the process.     

Establishing Legitimacy in Emerging Markets: An Empirical Comparison of the Warsaw, Budapest, and Prague Stock Exchanges

The purpose of this analysis is to investigate the influence of economic and sociological institutional constraints in determining the legitimacy of firms. This study specifically looks at the importance of regulatory and transnational institutional constraints for firms traded on the Warsaw, Budapest, and Prague stock exchanges. The results indicate that a well-regulated securities environment has a direct impact on the ability of firms to establish organizational legitimacy. We also find that, lacking local regulation, firms can increase their legitimacy by adopting international accounting standards. Thus, we find support for the assertion that both economic and sociological solutions to the problem of legitimacy are appropriate for firms operating in an emerging market.     

Learning Contested Lessons: Participation Equity and Electric Utility Regulation

Electric utilities have typically enjoyed a close and cooperative relationship with the state regulatory bodies that oversee them. In 2001, the Colorado Public Utilities Commission mandated that the largest Colorado utility build a wind power plant as part of its conventional generating capacity, despite the utility's vigorous objections. Local environmental groups, intervening in a form of rule making called Integrated Resource Planning, succeeded in overturning regulatory capture. This paper explains this anomalous case and highlights the role of knowledge and learning in the outcome. The case shows the opportunities and limitations of using contested technical knowledge to push for institutional learning. The case also suggests the importance of repeated policy processes. Wind energy advocates perceived that they had acquired participation equity, ownership in the process akin to Kingdon's “softening up,” which led policy makers to take their arguments more seriously, opening up the possibility of institutional learning.     

Governing the Chinese Economy: Regulatory Reform in the Service of the State

Pursuant to its extensive program of market reforms, China’s government tried to restructure itself to support a market‐dominated economy. Reform efforts have included elements that are familiar to scholars of public administration: streamlining government, strengthening bureaucratic capacity, distancing government from firms, and establishing independent regulators. But how deep have these reforms been, and with what ultimate goals? This article examines a crucial segment of the economy—China’s so‐called lifeline industries—to show how reforms to China’s economic governance system have been mapped onto an existing system characterized by extreme institutional fragmentation and an inability to imbue new governmental bodies with authority. Moreover, for these key industrial sectors, the Chinese party‐state’s strong interests in ownership, revenues, and social policy dictate that it use a variety of tools to protect these interests.     

Employee buy-outs and privatization: Issues and implications for LDCs and post-communist countries of UK experience

Privatization has become an international phenomenon. Most attention has been devoted to privatization by stock market flotation or by sales to third parties. Management and employee buy-outs present a third main possibility for transferring assets from the public to the private sector. This paper discusses the scope for privatization buy-outs in LDCs and ‘post-communist’ economies in the light of conceptual issues and UK experience. The positive aspects of privatization by management and employee buy-outs concern: ownership incentives; the introduction of control mechanisms by institutional investors and various types of financing instruments; indigenous ownership, decentralized privatization; greater incentives in firms where specific skills are involved; the ability to improve trading relationships between a privatized supplier (the buy-out) and its former parent, which remains in the public sector where the supplier is heavily dependent on its former parent; and the general contribution of buy-outs to a redrawing of a state firm's spread of activities to create a more viable entity. The potential problems with buy-outs concern such issues as: absence of entrepreneurial skills; the scope of their applicability; the potentially restrictive effects of debt and debt-like finance; the need to deal with investment requirements of firms; the lack of personal wealth; the use of inside information by managers to purchase a firm at a price which is to the detriment of the public interest; and the possibility of social and political problems if individuals are perceived to enhance their personal wealth significantly as an accident of where they work. There are means by which many of these potential problems can be dealt with and the paper addresses these.     

Legislative Capacity and Credit Risk

Legislatures differ in their institutional capacity to draft and enact policy. While strong legislatures can increase the congruence of policy outcomes to the electorate's preferences, they can also inject uncertainty into markets with their ability to alter the political economic landscape. We argue that this uncertainty will manifest in a state's ability to borrow and hypothesize a negative relationship between legislative capacity and creditworthiness. Using ratings of general obligation bonds issued by the American states over nearly two decades and data on the institutional capacity of state legislative assemblies, we find support for the claim that having a legislature that is better equipped to affect policy change increases credit risk evaluations. The results we present broaden our understanding of the importance of legislative institutions, the determinants of credit risk, and the economic implications of democratic responsiveness.     

Dark side of social media and academic performance of public sector schools students: Role of parental school support

Students are regularly engaged in several things at the same time during class and school time. They are using smartphones, tablets, laptops, and using social media on these devices while learning and attending class. However, there are some situations likely influenced by this, current study tests the influence of technostress, cyberbullying, and media multitasking in the context of students in technology‐saturated classrooms and how this is affecting their academic performance. This study further explored the buffering effects of parental school support on the relationship between technostress, cyberbullying, and student's performance. By using the person‐environment fit model, this study surveyed 248 public sector school students in two waves and examined the impact of these variables on student's academic performance. Results show that technostress, cyberbullying, and media multitasking have a negative impact on student performance, and school parental support moderates the negative relationship between technostress and student performance. Implications and contributions have also been discussed.     

Political uncertainty and corporate investment: Evidence from India

This article examines the relationship between political uncertainty and corporate investments in India. Using the data of 771 non-financial Indian firms for the period 2007 Q1 to 2020 Q4 and for three general elections, 2009, 2014, and 2019, the study confirms a significant negative impact of political uncertainty on corporate investments and a pronounced impact of political uncertainty on corporate investment in closely contested elections. Also, we find that corporate investment tends to rise post-election. Additionally, we find that the negative relationship between political uncertainty and corporate investment is more pronounced for politically sensitive industries and firms facing higher financial constraints.     

Institutional Reforms and Democratization in Korea: the Case of the Kim Young Sam Administration, 1993–1998

This article examines the nature of political and institutional reform initiatives that have been carried out under former president Kim Young Sam. How effective have they been in consolidating democracy in Korea? Specifically, we examine why the Kim Young Sam government's political reform campaigns have been limited, and explore the impact of this limitation on his institutional reform initiatives and the process of consolidation of democracy in Korea. We argue that Kim Young Sam's initial political reform campaigns have contributed to creating a favorable environment for his institutional reform efforts. However, limitations of these initial political reform campaigns such as political funding and bribery scandals have hampered institutional reforms. We also argue that these difficulties were intensified by public dissatisfaction with Korea's poor economic performance and International Monetary Fund (IMF) financial assistance. As a result, Kim Young Sam's moral legitimacy as a civilian and reform-oriented leader toward the public has totally evaporated. Therefore, experiences under the Kim Young Sam administration are just trials and errors of democratization that show another failure in presidential leadership in Korea. These experiences will negatively affect the consolidation process of democracy in Korea by increasing the public's distrust of government as a whole. As a result, democratic consolidation in Korea is being delayed.     

Do Anti‐immigration Parties Matter? The Case of the Sweden Democrats and Local Refugee Policy

With the increased electoral success of anti‐immigration parties, questions regarding what impact the parties actually have naturally follow. Previous research has rarely explored this question. Furthermore, within this body of research, one is given different answers. While some argue that anti‐immigration parties have made an impact on public policy, others find no such evidence. This article shows that some of this inconsistency is a consequence of the methodological strategies that have been employed. Previous studies are either single case studies or comparisons of a small number of countries. Consequently, different parties in different institutional settings are compared, making it difficult to estimate the actual impact of the party of interest. In order to circumvent such methodological problems, this article explores the question of anti‐immigration party impact on a local level and asks if the Sweden Democrats (SD) have managed to influence decisions on refugee reception in Swedish municipalities. The analysis shows mixed results. First, while unable to find an independent effect of the size of the representation of the SD, it appears that the party's impact is conditioned by them holding the balance of power. Second, the SD's impact is not dependent upon whether there is right‐wing or left‐wing rule, although local migration policy is stricter when the main right‐wing party has strong support.     

Urban government and market reforms in China

Chinese reformers wish through their economic programme to create a new form of developmental state in China and a new relationship between state and economy. This paper examines these issues through a study of the impact of Chinese economic reforms on the structure and behaviour of local government, focusing on urban government at the district level. It looks at three aspects of the issue—the trend towards financial decentralization, institutional changes in district administration and changes in the relationship between local government and the urban economy. It concludes (contrary to arguments which regard bureaucratic response to the reforms as one of pure inertia and obstruction) that urban local government has changed in several major ways, the most obvious being a trend towards institutional expansion and proliferation. From the point of view of the reform process, some institutional changes have been positive, others negative, resulting in a ‘dualistic’ state which contains elements of both old and new forms of developmental state. There is a need for systematic analysis of the specific future needs and evolution of China's urban government which would guide a process of politico-administrative reform comparable to the current economic reform.     

Determinants of Firm‐Level Lobbying and Government Responsiveness in Agricultural Biotechnology in China

Understanding what stimulates agribusiness firms to lobby the government and what makes the government responsive to lobbying are the two issues that have been discussed extensively in the debates concerning determinants of biotechnology policy. This paper examines the factors influencing agribusiness firms' lobbying and government response using econometric modeling on a new data set of 160 leading agribusiness firms in the food, feed, chemical, and seed industries in China. The results show that approximately 10% of agribusiness firms lobbied the government about biotechnology policy and regulations and over half of those that lobbied received a verbal or written acknowledgment from government agencies. Seed and feed companies are more likely to engage in lobbying than chemical companies. Owning GM patents not only has a positive impact on firms' lobbying activities, but firms with these patents are more likely to receive a government response to their lobbying efforts. The experience of selling GM products does not significantly influence lobbying activities or response from the government.     

Dysfunctional institutions? Toward a New Agenda in Governance Studies

There is a wide‐spread perception among academics and commentators that institutional dysfunction has become increasingly common in important social, political, and economics arenas. Opinion polls show a decline in trust and confidence in major actors and institutions, including inter‐governmental organizations, governments, firms, NGOs, and religious organizations. For some, the core of the problem is that the hitherto well‐functioning states have become less effective in aggregating and acting upon citizens' preferences. Many policy initiatives of the 1990s – deregulation, privatization, new public management, private regulation, regional integration, civil society, and so on – seemed to have failed to meet expectations. This symposium seeks to identify important theoretical and empirical questions about institutional failure, such as why do institutions fail, why are they not self‐correcting, what might be a clear evaluative yardstick and analytic approach by which to measure performance, and to what extent contemporary theories of institutional evolution and design are useful in examining institutional restructuring and institutional renewal? Symposium essays by leading social science scholars offer important insights to inform future work on institutional performance and outline an agenda for institutional renewal and change.     

Improving democratic governance through institutional design: Civic participation and democratic ownership in Europe

In this article we provide a conceptual and argumentative framework for studying how institutional design can enhance civic participation and ultimately increase citizens' sense of democratic ownership of governmental processes. First, we set out the socio-political context for enhancing the democratic governance of regulatory policies in Europe, and highlight the way in which civic participation and democratic ownership is given equal weight to economic competitiveness. We then discuss the potential for institutionalized participatory governance to develop and its prospects for improving effective and democratic governance in the multi-layered European polity. We conclude by outlining a research agenda for the field and identifying the priorities for scholars working interactively with civil society and governments.