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Corporate governance is the system of rules, practices, and processes used to direct and control a company. It is important to ensure that companies are managed fairly and transparently, protecting all stakeholders' interests. Joint-stock companies (JSCs) are a type of business organization in which ownership is divided into shares. Shareholders are the company's owners; they have the right to vote on important company matters (e.g., electing the board of directors and approving major financial decisions). International standards for corporate governance have been developed by a number of organizations, including the World Bank, the Organization for Economic Cooperation and Development (OECD), and the International Finance Corporation (IFC). These standards provide guidance on how to establish and maintain effective corporate governance systems.

This chapter explores the role of artificial intelligence (AI), particularly its subfield of machine learning (ML) methods, as a core technology of the fintech revolution in the financial services industry. It simplifies some of the complex concepts related to AI by introducing the main ML paradigms and related techno-methodic aspects. This chapter uses real-world examples to illustrate how next-generation AI powered by ML is transforming the financial services industry. Next, in illustrating the risks associated with AI adoption, this chapter discusses the need for regulation to address the essential facets of AI governance, including transparency, accountability, ethics, and responsible use. Lastly, it looks at emerging regulatory approaches across leading global jurisdictions. The primary goal is to give readers an initial understanding of AI's profound impact on the financial sector.

Introduction: The global financial crisis has affected the financial markets and has had social consequences in addition to economic ones. The concept of ‘sustainability’ concerns firms reaching their main corporate goals. So, to maximise corporate financial performance (FINP), firms pay attention to non-financial data, such as elements of governance, social, and environmental concerns (henceforth referred to as ESG). Therefore, non-financial information provided by EGS factors measured by the ESG score has a crucial role in incorporating strategy and firm performance.

Purpose: This chapter looks at how ESG scores affect the performance of firms. The term ‘ESG’ describes how corporate operations include ESG principles. The ESG score is a novel way to gauge a company’s sustainability.

Methodology: ESG practices are a current phenomenon that has taken the attention of researchers in the last decades. Besides the amount of research conducted, researchers still need consensus regarding its impact. This chapter implements a systematic literature review to compile the research on ESG performance (ESGP) and how it affects business performance.

Findings: Businesses can incorporate sustainability practices into their operations with the help of ESG reports. ESG reports and scores provide non-financial information, which is crucial for businesses to achieve sustainability in their activities and attract more investors. The chapter contributes to the literature by creating value through a comprehensive and theoretical literature review.

Cross-border mergers and acquisitions (CBM&As) are a significant component of foreign direct investment (FDI), which in turn is at the heart of the international business strategy of multinational enterprises (MNEs). Given that CBM&As involve both a scale and an immediacy to raising financing that greenfield investments often lack, financially constrained firms are inhibited from undertaking CBM&As. The authors go further and show that these financing constraints impact the markets where MNEs target firms for CBM&A transactions. In the presence of such financing constraints, the determination of which markets are targeted by MNEs is directly related to the supply of capital in the target market and the institutional distance between the home and host markets. Evidence in support of the hypotheses is documented using firm-level data on CBM&As from Organization for Economic Co-operation and Development (OECD) countries as well as Brazil, Russia, India, China, South Africa (BRICS) into every country globally for which data exist. The main implication of the research is that not only are financial constraints at the firm level important, but also that these constraints have a significant impact on the location of an acquisition target.

This chapter reviews possible regulatory updates needed to address the four general challenges arising from digitalization of financial services, regardless of the business models of the financial services providers. These challenges are customers' data rights, artificial intelligence (AI) ethics, cybersecurity and financial exclusion.

The authors examine the role of stock liquidity in CEO equity compensation design. For a sample of publicly traded firms from 2007 to 2020, the authors find that greater stock liquidity is associated with a higher proportion of stock awards relative to the proportion of options in CEO equity compensation. The results of this study suggest that stock price informativeness on the grant date has a differential effect on the preference for the type of equity compensation awarded to CEOs. The empirical results are supported by multivariate analyses using alternative measures of stock liquidity and a two-stage least squares (2SLS) specification that alleviates endogeneity concerns. Furthermore, the authors document that the firm-specific increase in the proportion of stock awards compared to the proportion of stock options is associated with a firm-specific increase in stock liquidity. Collectively, the analyses suggest that stock liquidity as a measure of stock price informativeness contributes to the choice of CEO equity compensation design.

Environmental, Social and Governance (ESG) reporting is crucial for organizations, especially in the current era where sustainability holds significant importance. Proper utilization of ESG reporting offers long-term benefits and enhances overall corporate well-being. This study explores fundamental aspects of ESG reporting, elucidating the reporting process, its advantages and requirements. An analysis highlights key impacts on businesses and their influence on consumer behaviour. The disclosure of ESG reporting and its determinants, such as business size and profitability, is discussed. Additionally, the study underscores the role of promoting diversity and inclusion as a Corporate Social Responsibility (CSR) function. Global firms undertake diverse initiatives to advance sustainability. The study emphasizes the triple bottom line theory as a strategy for sustainable development. ESG is recognized as a valuable tool for ensuring sustained growth and development in businesses. The research underscores the imperative for businesses to adopt sustainable measures consistently. Overall, the findings stress the significance of ESG reporting in the contemporary business landscape, linking it to corporate success, responsibility and the pursuit of sustainable practices.