This investigation addresses the issuance of preference shares by companies listed on the Malta Stock Exchange (MSE), identifying key determinants and obstacles associated with these initiatives. Semi-structured interviews were conducted with 27 stakeholders, including representatives from 23 MSE-listed companies (MLCs), one MSE official, two stockbrokers, and an advisor from a leading global accounting firm. An evaluation of the financial distress faced by issuers prior to the issuance of preference shares was also undertaken. Despite the establishment of the MSE in 1992, preference shares have been issued by only two listed companies, indicating their minimal utilization as financial instruments within the Maltese market. The findings reveal that preference shares are primarily issued to meet financing needs, support corporate expansion, prevent control dilution, capitalize on favorable market conditions, maintain balanced capital structures, and enhance debt capacity. However, several barriers hinder the issuance of preference shares, including limitations inherent to the Maltese capital market, low investor interest, perceived complexity, and a general lack of understanding regarding this hybrid financial instrument. The study underscores the necessity for improved educational efforts concerning preference shares and elucidates the distinctive characteristics of the local market.
This study investigates the critical role of corporate governance in facilitating positive organisational transformations and countering the detrimental impacts of egocentric leadership. By embracing a qualitative descriptive methodology, a comprehensive systematic review of literature was conducted, exploring the myriad facets of corporate governance, including its principles, processes, systems, legal frameworks, regulations, and corrective mechanisms. Findings from the review reveal an inverse relationship between robust corporate governance and the prevalence of egocentric leadership. A significant challenge identified is the limitation faced by boards of directors, metaphorically described as being “without a spare wheel”, which hinders their capacity to address these governance challenges effectively in today’s dynamic work environment. Furthermore, conflicts of interest were found to severely compromise the integrity of governance practices. It is recommended that boards failing to rectify non-compliance within their tenure should be subject to dissolution, contingent upon the specifics of the case. Additionally, it is imperative that organisations conduct thorough assessments and reviews of the effectiveness of their corporate governance, enhancing internal controls to enforce governance principles rigorously. This study is pioneering in integrating the transformation of corporate governance while delineating the obstacles encountered, concluding that organisations can promote and uphold exemplary governance by implementing stringent measures against violations and by rewarding adherence among stakeholders.
This study delineates the current landscape and effectiveness of micro life insurance in India, with a particular focus on its utility for economically disadvantaged populations. Utilizing descriptive statistics, bar diagrams, tables, figures, and scatter plots, the analysis reveals a positive trend in the coverage of lives under micro life insurance, concomitant with an increase in the number of agents. The life insurance corporation of India (LIC) plays a predominant role relative to private insurers, with group insurance schemes proving more effective than individual schemes. Furthermore, factors such as education, age, family size, wealth, financial literacy, bequest motives, and saving behaviors are identified as significant determinants of microinsurance uptake. Critically, micro life insurance is shown to substantially reduce out-of-pocket expenditure (OOP) and alleviate financial hardships among the poor, thereby contributing to poverty reduction. This comprehensive examination not only underscores the expanding reach and impact of micro life insurance but also emphasizes its strategic role in mitigating poverty within vulnerable segments of the population.
This empirical investigation examines the influence of corporate governance mechanisms on agency costs among firms listed on the CAC 40 index from 2005 to 2023. Agency costs were evaluated using three proxies: asset turnover ratio, selling, general and administrative expenses, and the interaction between free cash flow and Tobin's Q ratio. The findings suggest that larger board sizes are more effective in reducing agency costs within the studied French firms. Contrary to traditional agency theory predictions, higher managerial ownership did not correlate with reduced agency costs; rather, it was associated with increased costs. However, at high levels of managerial ownership, a reduction in agency costs was observed, challenging the notion of managerial entrenchment behavior within these firms. The analysis also indicates that CEO duality, board independence, ownership concentration, and institutional ownership contribute negatively to asset utilization efficiency, thus increasing agency costs. These results raise questions about the effectiveness of these governance mechanisms in the French regulatory and corporate environment. Furthermore, the study reveals that the effectiveness of specific governance mechanisms, such as board size and independence, as well as executive and non-executive ownership, is contingent upon the firm's growth opportunities. Specifically, board size appears more effective in low-growth firms, whereas mechanisms like board independence and diverse ownership structures benefit high-growth firms. This study enhances understanding of how corporate governance can influence agency costs, emphasizing the importance of aligning governance structures with firm growth trajectories.
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