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Motivated by agency theory, this paper aims to explore the impact of bank diversification and bank independency on the likelihood of bank failure. The effects of corporate governance (ownership and board structures) are also examined.

Logistic regressions are used to explore the role of corporate governance on bank failure risk. This sample covers 608 banks from eight European countries.

The results suggest that the well-documented finding that diversification and bank independency may increase bank failure risk does not persist under strong corporate governance mechanism. Thus, to reduce the bank failure risk, diversification should be strongly monitored by the management to avoid excessive risk-taking by shareholders.

The approach used in this study differs from that used in previous studies from certain perspectives. First, unlike most previous studies that focused on the relationship between bank performance and bank diversification, the impact of income and asset diversification on bank failure is tested. Also, the impact of a combined effect of diversification and corporate governance variables on bank failure is tested. This allows the control for different ownership and board variables as factors that would potentially affect the likelihood of bank failure.

The purpose of this paper is to discuss the concept of regulators’ independence, with a special focus on the competition authorities’ independence. The aim of the paper is to present a broader view of the competition authorities’ independence, by specifically questioning the Western Balkans’ competition authorities’ independence.

In the context discussed, the politicization of competition authorities does commonly result in decisions with uncompetitive nature, whose interference in the functioning of the market economy is fundamental. In that line, this paper discusses and argues in favour of non‐politicized competition authorities’ membership, whose structure should be determined by the law. Therefore, this paper goes on to argue that, when the competition laws determine the appointment of competition authorities’ members biased by and conditional on political factors, it is likely that the competition in the market will be crucially harmed, meanwhile the market mechanism would be insufficient in performance.

The paper finds that the competition policy's independence can be assured through a competition authority whose membership is freed from political appointments, and whose membership represents a plural environment of interests.

The paper limits itself to the organizational bases that precondition the competition authorities’ independence.

The paper provides/contributes for a new concept on competition authorities’ independence, and clarifies the limited role that the government can have in this regard. The paper can serve as a source of academic knowledge to both academicians and practitioners whose field of interest is market regulation.

This study aims to examine whether particular corporate governance mechanisms influence the performance of mergers and acquisitions.

Regression analyses investigating 1,596 recent acquisitions in the US market completed over the five-year period from 2009 to 2013 are performed.

The results show that board independency, CEO duality and level of CEO fixed compensation have an impact on the return of acquisitions. Moreover, the findings indicate that acquisitions significantly create value for bidders delivering a positive cumulative abnormal return upon announcement. Finally, also focusing on the 690 relative larger deals, there is a clear evidence of a positive influence of good corporate governance mechanisms over the quality of acquisitions completed.

To our knowledge, this is the first paper trying to identify corporate governance mechanisms related to the best acquisition decisions, by using specifically the three corporate governance variables (CEO duality, CEO fixed compensation and board independency).

This paper aims to propose a general and rigorous study on the propagation property of invariant errors for the model conversion of state estimation problems with discrete group affine systems.

The evolution and operation properties of error propagation model of discrete group affine physical systems are investigated in detail. The general expressions of the propagation properties are proposed together with the rigorous proof and analysis which provide a deeper insight and are beneficial to the control and estimation of discrete group affine systems.

The investigation on the state independency and log-linearity of invariant errors for discrete group affine systems are presented in this work, and it is pivotal for the convergence and stability of estimation and control of physical systems in engineering practice. The general expressions of the propagation properties are proposed together with the rigorous proof and analysis.

An example application to the attitude dynamics of a rigid body together with the attitude estimation problem is used to illustrate the theoretical results.

The mathematical proof and analysis of the state independency and log-linearity property are the unique and original contributions of this work.

The exterior surface of a building -façade- as a communicative ground reflects the burdened meaning of its structure. Besides communicative capacity of façade, its independency, individuality and image dominancy can define exterior surface as an autonomous architectural element in terms of both physical and moral freedom. However, in the twenty-first century, this autonomy has undermined by globalization, technology and communication tools which are among the rapidly increasing activities of the century. Location of architecture in economic transactions and financial market has caused a loss in its internal dynamics and value system. The endeavor of providing the visual appeal only through the façade formation has caused the transformation in the dependency of exterior surface being devoid of content and context. The surfaces have been treated as changeable and renewable advertisement grounds concentrating on the visual appeal of the product, whether the aim is marketing, advertising or commercializing. Thus, the link between architecture and social structures has weakened through the commodification of the end product. In this framework, aim of this paper is (a) to make the description of façade, (b) to define the autonomy of façade through its physical and moral independency by examining cases and (c) to put forward a logical argument on the aspects which make façade an element pursuing only the visual pleasure by oversimplifying its significance in the generation of architectural idea.

Critical analysis of previously developed white‐collar productivity management techniques focuses on the existing shortcomings of several measurement and evaluation methodologies of white‐collar personnel and functions. An analytical method of defining and measuring various pertinent characteristics of both routine and non‐routine white‐collar jobs helps in the development of a more suitable productivity management methodology. A systematic procedure is described for the measurement and evaluation of white‐collar productivity for an individual, a group of individuals or a department. The recommended measures, viz, operations‐based productivity measures for routine and non‐routine jobs, explain in detail the relationship of different white‐collar job characteristics and individual and group productivity at the middle management level. A case example is cited which illustrates the proposed approach. The advantages, along with some limitations, of the methodology are also highlighted.

The purpose of this paper is to provide an overview of applied hospital quality assurance (QA) policies in Iran.

A mixed method (quantitative data and qualitative document analysis) study was carried out between 1996 and 2010.

The QA policy cycle forms a tight monitoring system to assure hospital quality by combining mandatory and voluntary methods in Iran. The licensing, annual evaluation and grading, and regulatory inspections statutorily implemented by the government as a national package to assure and improve hospital care quality, while implementing quality management systems (QMS) was voluntary for hospitals. The government’s strong QA policy legislation role and support has been an important factor for successful QA implementation in Iran, though it may affected QA assessment independency and validity. Increased hospital evaluation independency and repositioning, updating standards, professional involvement and effectiveness studies could increase QA policy impact and maturity.

The study highlights the current QA policy implementation cycle in Iranian hospitals. It provides a basis for further quality strategy development in Iranian hospitals and elsewhere. It also raises attention about finding the optimal balance between different QA policies, which is topical for many countries.

This paper describes experiences when implementing a unique approach, combining mandatory and voluntary QA policies simultaneously in a developing country, which has invested considerably over time to improve hospital quality. The experiences with a mixed obligatory/voluntary approach and comprehensive policies in Iran may contain lessons for policy makers in developing and developed countries.

Prior studies suggest that most expropriation of firm’s resources is conducted through related party transactions (RPTs). Based on the conflict of interest view, related parties opportunistically use their authorities to expropriate firms’ resources for their own benefits via RPTs subsequently increasing agency costs and reduce firm value. One important monitoring system suggested by agency theory to reduce the agency problem is corporate governance (CG). CG monitors firm’s performance to align the interests of those who control and those who own the residual claims in a firm. The purpose of this paper is to investigate the moderating effect of CG characteristics on the relationship between RPTs and firm value.

In order to clarify the distinct effect of RPTs, this study categorises RPTs into two groups including beneficial and detrimental RPTs (DRPTs). Applying “proportionate stratified random sampling”, this study covers a panel of 271 firms listed on Bursa Malaysia over the period of 2009–2011, using a moderated multiple regression model.

This study documents that firm value is positively associated with beneficial RPTs (BRPTs) and negatively related to detrimental RPTs (DRPTs). In addition, results show that divergence can intensify the negative relationship between DRPTs and firm value. Findings support the necessity for more scrutiny by regulators, policy makers and standard setters to monitor the conflict of interests in RPTs and restrain the power of related parties to protect the firm’s wealth by introducing stricter regulations for RPTs and improve CG practices especially to monitor RPTs in order to limit the opportunistic behaviour of related parties.

Research implications have been presented in Section 10. It has also been summarised in practical implications and social implications sections.

The findings of this study indicate that investors, creditors and policy makers should not consider all RPTs as harmful transactions and it seems necessary to categorise RPTs into different groups including transactions which are detrimental and transactions which are beneficial to the firm.

The findings of this study support the necessity for more scrutiny by regulators, policy makers and standard setters to monitor the conflict of interests in RPTs. They should restrain the power of related parties to protect the firm’s wealth by introducing stricter regulations for RPTs and improving CG practices especially to monitor RPTs in order to limit the opportunistic behaviour of related parties.

This study contributes to the RPTs literature by showing that the effect of RPTs on firm value depends on the types of RPTs, and market participants allocate different values to different types of RPTs. Therefore, to fill the gap and clarify the distinct effect of RPTs, this study categorizes RPTs into two groups including beneficial and detrimental RPTs.

The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on financial sustainability – its usefulness and necessity of maintaining, its impact on citizens’ welfare and alternative proposals. The setting is rather interesting as strict rules are imposed by a legislation criticized of mimicking European Commission policies, on well-performing municipalities, in light of the recent “independency” conflict.

The study uses insights from the public choice theory and the concept of accountability to draw a framework that could explain the perceptions of mayors and comptrollers. The views of the two groups are captured with the use of an online questionnaire.

The results indicate that while the application of strict rules has borne fruit, this trend is not sustainable in the long run and a careful reconsideration is required. Accordingly, both groups express concerns on citizens’ future welfare. It moreover appears that in this particular setting, mayors’ and comptrollers’ sense of accountability toward citizens exceed their personal interests.

This study provides empirical evidence on the impact of strict budget stability and sustainability rules on the long-term financial sustainability of local governments from the point of view of mayors and municipality comptrollers who are called to implement them.

The purpose of this paper is to study the effect of a computational grid in computational fluid dynamics‐based mathematical modeling, focusing on but not limiting the attention to industrial‐scale boilers.

A full boiler model is used to show the difficulties related to judging iteration and discretization errors in boiler modeling. Then, a single jet is studied in detail to determine the proper degree of local grid refinement required in the vicinity of jets in the full boiler model. Both a nonreactive axisymmetric jet exhausting into a quiescent atmosphere and a reactive jet exhausting into a crossfiow are studied.

Over two million computational cells are required for the grid‐independent solution for a single jet. Local grid refinement is shown to be a good option for improving the results consistently without an excessive increase in the number of computational cells. Using relatively coarse grids of tetrahedral cells with a finite‐volume‐based solver may cause serious errors in results, typically by overpredicting the jet spreading rate and underpredicting the mean axial centerline velocity. Relatively coarse grids of hexahedral cells are less prone to error in a case where a jet exhausts into a quiescent atmosphere. However, their performance deteriorates when a crossfiow is introduced. As assumed, the differences in the predicted reaction rate and species concentrations are significant in the reactive case. It is confirmed that the standard k‐ε model tends to overpredict the axisymmetric jet spreading rate. The estimated inlet turbulence intensity is not among the most critical factors in modeling. Estimations of the axisymmetric jet centerline velocity from the analytical correlation may not coincide with the modeling results.

The error caused by the computational grid may easily dominate the errors caused by simplifying models used in industrial‐scale boiler modeling (turbulence, combustion, radiative heat transfer, etc.).

The present study deals with grid independency issues in industrial‐scale boiler modeling in a systematic and profound manner.