In a world where the implications and consequences of corporate actions and decisions are potentially far-reaching and lasting, ethical standards – their observance and their breach – must be part of the language of business conduct, whether in the context of corporate transgressions, regulatory effectiveness, terms of engagement between business and their stakeholders, or the metrics used by investors in assessing performance and risk and understanding long-term value.This critically important book proposes a new paradigm for understanding, developing and maintaining standards of corporate governance. Its point of departure is not a position along the diverse paths of traditional corporate governance and regulatory theory, law and practice, nor specific questions of how to institute, implement and observe policies and practices that function as proxies for good governance. Instead, it starts with the idea of framing governance generally, and corporate governance specifically, as a matter of conduct that is guided by a set of fundamental ideals and principles. Evolutions in Corporate Governance attempts to answer the wider question of how to re-imagine a framework within which 'good' corporate governance – that takes account of and is responsible for the social, environmental, ethical as well as legal and economic dimensions of business conduct – is addressed alongside issues of profitability and competition, in the face of forces of globalization and business influence that are testing the limits of what can be accomplished by traditional law and regulation. Dempsey contends that meaningful change in behaviour will only come when there is a corporate governance framework that explicitly encompasses both law and ethics. Unlike the British model, much of what is considered to be regulation of the corporate governance of corporate entities in the United States is effected indirectly through the regulation of securities markets pursuant to federal securities law. This distinction is important in locating the appropriate authority for matters of corporate governance when considering and comparing different jurisdictional practices. It is also critical to understanding the fundamental distinction between corporate governance as constitutive and relatively uncontested, as in the British model, and corporate governance as additive and consequently contested as it is in the United States.The departure from the British model resulted from a constitutional divide between federal and state law that prevented Congress in 1930 from adopting a federal model of incorporation that reflected in full the British Companies Act 1929 despite the desire and intention to do so. The United States Supreme Court confirmed the original legislators’ intention to follow the British model in its judgement in Gustafson v. Alloyd Co. 513 U.S. 561 (1995). Supreme Court Justice Kennedy, regarding the proper basis for interpreting the civil liability provisions of the Securities Act 1933, ss. 11 and 12, stated ‘[F]ar from suggesting an intent [sic] to depart in a dramatic way from the balance struck in the British Companies Act, the legislative history suggests an intent to maintain it’.Instead, Congress proceeded with an accommodation of federal and state constitutional jurisdiction in the form of the 1933 Securities Act that seeks to regulate the governance of companies indirectly by means of direct regulation of the sale of securities. That is, using the federal jurisdiction over the market for the sale and exchange of securities, as a means to attach corporate governance requirements as between offerer and purchaser of shares.
Puerto Rico, Estados Unidos, leyes de cabotaje, territorio, Organización Mundial del Comercio, Business, and HF5001-6182
The objective of this essay is to evaluate the governmental and self-regulated power of Puerto Rico, regarding the cabotage laws and its relation with the United States. The history of Puerto Rico with the United States, certain laws and jurisprudence, as well as, the responsibility of the United States and the World Trade Organization is studied. It is concluded that Puerto Rico, although enjoying certain sovereign attributes, remains a territory under the control of the United States Congress.
Academic Journal of Economic Studies, Vol 3, Iss 1, Pp 11-22 (2017)
REITs, tax benefits, international study, Business, and HF5001-6182
Tax exemption is one of the REIT’s most unique characteristics. To improve the development of REITs market, the Congress had passed several Tax Reform Acts. Plenty of previous study had already explored the effects of tax legislation changing on REITs market. However the findings had not come to consensus. This might because most of them explored this topic by event study, which cannot control other events happening on the even dates. This paper tries to avoid the complications encountered in previous research by investigating the tax reform effects through the normal panel model with the data in the United States and then retest the hypothesis by a novel empirical model with panel market data in both U.S. and Australia. The results provide evidence that the Tax Reforms would truly affect the REIT’s performance with more solid empirical evidences. Furthermore, the results shed light on the tax policy and governance of a REITs market.
Naše Gospodarstvo, Vol 62, Iss 4, Pp 12-22 (2016) Naše gospodarstvo, vol. 62, no. 4, pp. 12-22, 2016.
transpacifiški sporazum o partnerstvu, HF5001-6182, sporazum o prosti trgovini med Kitajsko in Avstralijo, Business, TPP, interakcijski učinki, interaction effects, China-Australia FTA, China-South Korea FTA, sporazum o prosti trgovini med Kitajsko in Južno Korejo, and udc:339.5:338.2
On 5 October 2015, the Trans-Pacific Partnership Agreement (TPP) led by the U.S. was signed. Already, 12 countries1 have joined the agreement, but China has not. Thus, lots of research has focused on the negative effect of the TPP on China’s foreign trade. On the other hand, China is moving forward in its own efforts to establish bilateral free trade agreements (FTAs) and free trade zones. In June 2015, China-South Korea and China-Australia signed bilateral FTAs which went into effect in December 2015. Several questions were raised: Since South Korea and Australia are the major trade partners in the Pacific area and the bilateral FTAs will be effective before the TPP, will these FTAs’ positive effects on China’s foreign trade offset some of the negative effects of the TPP? If China and the U.S. adopted a competitive trade policy, which countries would benefit? If China and the U.S. adopted a cooperative trade policy, how would the trade value and economic welfare change? This paper simulates and analyses the mutual effects of China-South Korea and China-Australia FTAs and the enlarging TPP using the computable general equilibrium model. The major conclusions drawn suggest that China-South Korea and China-Australia FTAs will significantly offset the TPP’s negative effect on China’s foreign trade. If China is not included, the U.S. economic benefit from the TPP will be limited. The economic welfare for a country like Australia, which joined both the bilateral FTA and the TPP, will be increased the most. In the long run, China joining the TPP would be the most beneficial decision for its national interest. However, if the TPP cannot be approved by the US congress, the U.S.’s economic indicators and export would be decreasing sharply. China’s economy and export will benefit from FTAs. Transpacifiškemu sporazumu o partnerstvu, ki je bil sklenjen 5. oktobra 2015, se je že pridružilo 12 držav. Ker Kitajska k sporazumu ni pristopila, je bilo veliko raziskav osredotočenih na negativne učinke na kitajsko zunanjo trgovino po sklenitvi tega sporazuma. Po drugi strani si Kitajska prizadeva, da bi omogočila svoj razvoj z bilateralnim sporazumom o prosti trgovini in z območji proste trgovine. Junija 2015 je Kitajska podpisala bilateralna sporazuma z Južno Korejo in Avstralijo veljati sta začela decembra 2015. Pojavila so se številna vprašanja: Ker sta Južna Koreja in Avstralija glavni trgovinski partnerici na pacifiškem območju in ker bosta bilateralna sporazuma o prosti trgovini učinkovita še pred transpacifiškim sporazumom o partnerstvu, ali bodo pozitivni učinki sporazumov o prostem trgovanju nadomestili nekatere negativne učinke transpacifiškega sporazuma o partnerstvu? Katere države bodo imele korist od tega, da bi Kitajska in Združene države Amerike privzele tekmovalno trgovinsko politiko? Kako bi se spremenili tržna vrednost in ekonomska blaginja, če bi Kitajska in ZDA privzele sodelovalno trgovinsko politiko? V prispevku simuliramo in analiziramo vzajemne učinke sporazumov o prosti trgovini med Kitajsko in Južno Korejo ter Kitajsko in Avstralijo ter razširjenega transpacifiškega sporazuma o partnerstvu z uporabo izračunljivega modela splošnega ravnovesja. Glavne ugotovitve so: sporazuma o prosti trgovini med Kitajsko in Južno Korejo ter Kitajsko in Avstralijo bosta značilno nadomestila negativne učinke transpacifiškega sporazuma o partnerstvu na kitajsko zunanjo trgovino. Če Kitajska ne bo vključena, bo ekonomska korist transpacifiškega sporazuma o partnerstvu za ZDA omejena. Ekonomska blaginja za državo, kot je Avstralija, se bo s pridružitvijo tako bilateralnemu sporazumu o prosti trgovini kot transpacifiškemu sporazumu o partnerstvu najbolj povečala. Na dolgi rok bo odločitev Kitajske, da se pridruži transpacifiškemu sporazumu o partnerstvu, za njene nacionalne interese prinesla največ koristi.
Problems and Perspectives in Management, Vol 14, Iss 3, Pp 162-178 (2016)
Business and HF5001-6182
After more than 21 years under the leadership of the African National Congress (ANC), post-1994 South Africa finds itself yet again embroiled in race-related politics. Government policies such as black economic empowerment (BEE) and employment equity (EE) have not brought about the economic growth, social development and political democracy that the late former President Nelson Mandela had envisaged and what the ANC had promised to all the people of South Africa. South Africa is currently disengaging itself from the West including the Unites States of America (USA) and certain European Union (EU) countries and appears to rather embrace and align itself with countries such as Russia and China that pursue socialist and communist ideologies. Both these two issues may have a profound impact on how businesses will be managed in the future. In an exploratory, qualitative study using a “5 Star” research methodology, the direct and indirect impacts of BEE policies were investigated and the possible movement in South Africa’s ideological stance was explored. BEE does not appear to have helped to bring about high economic growth to help to reduce unemployment and eradicate the high levels of poverty and inequality, and government graft and corruption have increased at all levels of government, including local municipalities. BEE appears to have become the ANC’s curse to economic, social and political progress and should be scrapped. A national debate should follow on whether the ANC’s current covenant with pro-socialism and pro-communism rather than Western free-market capitalism is the appropriate ideology for South Africa to pursue. Keywords: black economic empowerment (BEE), employment equity (EE), African National Congress (ANC), capitalism, socialism, communism. JEL Classification: M14, M21
Julio César Hernández, Angélica María Valdés, and Kristia Paola González
Fórum Empresarial, Vol 23, Iss 1, Pp 75-95 (2018)
salario mínimo, empleo, transferencias, QCEW, Business, and HF5001-6182
In 2016, the United States Congress created the possibility of lowering Puerto Rico’s nominal minimum wage from $7.25 to $4.25 per hour for young people under the age of 25. This study evaluates the effect of changes in the minimum wage on inter-industrial employment in Puerto Rico, in the period from 1991 to 2010. Dynamic panel regressions were used as statistical methods for the evaluation of relations between variables. The results suggest that increases in the minimum wage are associated with increases in employment in the construction, transportation, and wholesale industries; in contrast, increases in the minimum wage are associated with reductions in employment, in industry such as manufacturing, services, and public administration.