Investigating the Functions of Blockchain Technology in Improving the Corporate Governance of Listed Companies

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Economics, Management and Accounting, University of Tabriz

2 Master of Business Administration, Faculty of Economics, Management and Accounting, University of Tabriz

Abstract

Technological advances indicate a new era of analysis and data-driven decision-making in capital markets. Blockchain, which is the main technology of digital currency markets, is being introduced as a disruptive technology, especially in the stock market. Today, there is a broad consensus among the majority of stock market actors about the significant power of blockchain technology in the position of a new approach to managing and exchanging data in financial markets, and especially maintaining reliable and transparent data records in stock markets, considering the huge volume of transactions that are carried out in them. has it. On the other hand, the two main factors that cause representation problems in the corporate governance of traditional stock exchanges are the difference in the interests of investors and representatives and the complexity of the investment chain. The purpose of this study is to investigate the benefits of implementing blockchain technology as a basis for stock transactions in order to improve the corporate governance of publishers through a two-stage review consisting of a systematic review and an online Delphi. The findings of the research show that compared to traditional stock trading systems, blockchain technology has several advantages, including high transparency of information, improvement of stock liquidity, high monitoring by different parties, availability of real-time information, reduction of price divergence from stock value, provision of accounting comparability. And it is preventing profit management, the final output of which will be the creation of better corporate governance. The implementation of blockchain technology will be able to reduce the information asymmetry in the relationship between the manager and the owner, which in turn can improve the quality of corporate governance due to transparency, accountability and high trust between all parties involved in the network

Keywords

Main Subjects

References

  1. Akgiray, V. (2019). The potential for blockchain technology in corporate governance.
  2. Akhtar, T. (2024). Blockchain technology: the beginning of a new era in reforming corporate governance mechanisms. Journal of the Knowledge Economy, 15(1), 3059-3084.‏
  3. Beiderbeck, D., Evans, N., Frevel, N., & Schmidt, S. L. (2023). The impact of technology on the future of football–A global Delphi study. Technological Forecasting and Social Change, 187, 122186.‏
  4. Belton, I., MacDonald, A., Wright, G., & Hamlin, I. (2019). Improving the practical application of the Delphi method in group-based judgment: A six-step prescription for a well-founded and defensible process. Technological Forecasting and Social Change, 147, 72-82.‏
  5. Calleo, Y., & Pilla, F. (2023). Delphi-based future scenarios: a bibliometric analysis of climate change case studies. Futures, 149, 103143.‏
  6. Chen, D. M., Wang, L. Z., & Chen, A. N. (2020). Digitalization and strategic management theory: review, challenges and prospects. Management world, 36(5), 220-236.‏
  7. Cho, J., DeStefano, T., Kim, H., Kim, I., & Paik, J. H. (2023). What's driving the diffusion of next-generation digital technologies?. Technovation, 119, 102477.‏
  8. Chowdhury, N., Katsikas, S., & Gkioulos, V. (2022). Modeling effective cybersecurity training frameworks: A delphi method-based study. Computers & Security, 113, 102551.
  9. Chuaykoblap, S., Chutima, P., Chandrachai, A., & Nupairoj, N. (2017). Expert-based text mining with Delphi method for crude oil price prediction. International Journal of Industrial and Systems Engineering, 25(4), 545-563.
  10. Dadger, Y., Dargahi, H., & Qolizadeh, S. (2023). The role of investors' emotions and government behavior in the fluctuations of the Tehran Stock Exchange market: a behavioral economics approach. Applied Theories of Economics, 10(1), 191-214 (In Persian).
  11. Dinh, T. T. A., Liu, R., Zhang, M., Chen, G., Ooi, B. C., & Wang, J. (2018). Untangling blockchain: A data processing view of blockchain systems. IEEE transactions on knowledge and data engineering, 30(7), 1366-1385.
  12. Gong, Q., Ban, M., & Zhang, Y. (2022). Blockchain, Enterprise Digitalization, and Supply Chain Finance Innovation. China Economic Transition= Dangdai Zhongguo Jingji Zhuanxing Yanjiu, 5(2), 131-158.
  13. Han, H., Shiwakoti, R. K., Jarvis, R., Mordi, C., & Botchie, D. (2023). Accounting and auditing with blockchain technology and artificial Intelligence: A literature review. International Journal of Accounting Information Systems, 48, 100598.
  14. IFC 2018. International Finance Corporation Indonesia Corporate Governance Manual Second Edition.
  15. Javaid, M., Haleem, A., Singh, R. P., Suman, R., & Khan, S. (2022). A review of Blockchain Technology applications for financial services. BenchCouncil Transactions on Benchmarks, Standards and Evaluations, 2(3), 100073.‏
  16. Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate governance (pp. 77-132). Gower.‏
  17. Lafarre, A., & Van der Elst, C. (2018). Blockchain technology for corporate governance and shareholder activism. European Corporate Governance Institute (ECGI)-Law Working Paper, (390).‏
  18. Landeta, J., Barrutia, J., & Lertxundi, A. (2011). Hybrid Delphi: A methodology to facilitate contribution from experts in professional contexts. Technological Forecasting and Social Change, 78(9), 1629-1641.‏
  19. Lewis, A. (2018). The basics of bitcoins and blockchains: an introduction to cryptocurrencies and the technology that powers them. Mango Media Inc..‏
  20. Loveridge, D. (2002). On Delphi questions. Ideas in Progress. Manchester, UK: University of Manchester.
  21. Lozano, M. B., Martínez, B., & Pindado, J. (2016). Corporate governance, ownership and firm value: Drivers of ownership as a good corporate governance mechanism. International Business Review, 25(6), 1333-1343.
  22. Naisola-Ruiter, V. (2022). The Delphi technique: a tutorial. Research in Hospitality Management, 12(1), 91-97.
  23. Pournaqi, S. M., Bayat, M., & Farjami, Y. (2019). A new and secure scheme for medical data sharing based on blockchain technology and feature-based cryptography. Electronic and Cyber ​​Defense Quarterly, 8(1), 101-124 (In Persian).
  24. Ronaghi, M. H. (2022). Contextualizing the impact of blockchain technology on the performance of new firms: The role of corporate governance as an intermediate outcome. The Journal of High Technology Management Research, 33(2), 100438.‏
  25. Ronaghi, M. H. (2021). The impact of block chain technology on corporate governance and social responsibility in knowledge-based companies in the field of information technology. Entrepreneurship Development, 14(1), 61-80 (In Persian).
  26. Schemer, L., Glombiewski, J. A., & Scholten, S. (2023). All good things come in threes: A systematic review and Delphi study on the advances and challenges of ambulatory assessments, network analyses, and single-case experimental designs. Clinical Psychology: Science and Practice, 30(1), 95.‏
  27. Singh, H., Jain, G., Munjal, A., & Rakesh, S. (2019). Blockchain technology in corporate governance: disrupting chain reaction or not?. Corporate Governance: The International Journal of Business in Society, 20(1), 67-86.‏
  28. Sun, X. B., Qian, Y., Zhang, M. C., & Li, J. Z. (2019). A study on the implementation mechanism of enterprise supply chain agility driven by big data. Management World, 35(9), 133-151.
  29. Suominen, A., Hajikhani, A., Ahola, A., Kurogi, Y., & Urashima, K. (2022). A quantitative and qualitative approach on the evaluation of technological pathways: A comparative national-scale Delphi study. Futures, 140, 102967.
  30. Warth, J., Heiko, A., & Darkow, I. L. (2013). A dissent-based approach for multi-stakeholder scenario development—the future of electric drive vehicles. Technological Forecasting and Social Change, 80(4), 566-583.
  31. Wu, L., Hitt, L., & Lou, B. (2020). Data analytics, innovation, and firm productivity. Management Science, 66(5), 2017-2039.
  32. Xu, P., & Xu, X. (2020). Logic and Analysis Framework of Enterprise Management Change in the Age of Artificial Intelligence. Manag. World, 36, 122-129.‏
  33. Yermack, D. (2017). Corporate governance and blockchains. Review of finance, 21(1), 7-31.‏
Quarterly Journal of Applied Theories of Economics
Volume 11, Issue 2 - Serial Number 41
September 2024
Pages 135-166

Files

Share

How to cite

Statistics