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Emerald Group Publishing Limited
Article Type: Editorial From: International Journal of Law and Management, Volume 56, Issue 4
The fourth issue of 2014 begins with Muhamed Zulkhibri from Saudi Arabia providing a comparative analysis of regulation covering non-profit organizations (NPOs) in developing countries. The paper compares regulation and applicable law including tax treatment pertaining to NPOs in 15 developing countries. The findings suggest that regulations of NPOs in these countries exhibit a mixed picture with respect to the establishment, operation, affiliation, fundraising and their tax incentives and preferences. In some countries, NPOs have fewer restrictions and are eligible for generous tax incentives, while for other countries various restrictions and lack of incentives are the norms. The legal frameworks for NPOs are burdensome and to some extent do not reflect the importance of NPOs as partners for the development of society. The findings also suggest that tax treatments in these countries vary from simple to complex, coupled with obscure tax exemptions rules.
Second is an article by Olivia Anku-Tsede from Ghana, titled “Microfinance intermediation: regulation of financial NGOs in Ghana”. Much has been written about the formal financial sector in Ghana, but very little is known about the lower end of microfinance and the impact of formal prudential regulation on financial non-governmental organizations (FNGOs) providing microfinance services. The Bank of Ghana, nevertheless in the year 2011, extended formal prudential regulation to FNGOs without, the author argues, any empirical basis. This study uses regulatory theories and empirical evidence to aid in the evaluation of whether formal prudential regulation is appropriate for FNGOs operating within the microfinance sector. This study seeks to fill a gap in regulatory impact assessment in developing countries by presenting an analysis of how formal regulation impacts on the efficiency and productivity of FNGOs in Ghana.
Next, Bijan Bidabad from Iran tells us about joint stock companies with variable capital. Financial sharing funds and banks necessitate that their capital and number of shareholders be variable. Legal personality of this type of corporation is to be different from conventional companies. This is why Joint Stock Company with Variable Capital is proposed and discussed here.
Fourth comes Demetri Kantarelis from the USA whose conceptual paper is “The firm as a function of deals”. The author’s stated objective in the paper is to attempt a justification as to why the profit-making firm may be viewed as a function of its nucleus expertise and a risky portfolio of deals.
Last, but by no means least, come Kanika Marwaha and Sangeeta Arora from India with a comparative study of variables influencing preferences for stocks (high-risk investment) vis-à-vis fixed deposits (low-risk investment). The paper is an exploratory attempt to analyze the perception of individual investors of the stock market of Punjab toward investing in stocks vis-à-vis fixed deposits. For the purpose of this paper, the most and least influencing variables affecting the decisions of individual stock investors to invest in stocks and fixed deposits were gauged, and a comparison for such variables influencing their preferences was conducted.
As ever, some very thought-provoking material is contained in this issue. Enjoy!
Chris Gale and Alexandra Dobson