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The purpose of this paper is to scrutinise the effectiveness of four derivative exchanges’ enforcement efforts since 2007. These exchanges include the Commodity Exchange Inc. and ICE Futures US from the United States and ICE Futures Europe and the London Metal Exchange from the UK.

The paper examines 799 enforcement notices published by four exchanges through a behavioural science lens: HUMANS conceived by Hunt (2023) in Humanizing Rules: Bringing Behavioural Science to Ethics and Compliance.

The paper finds the effectiveness of the exchanges’ enforcement efforts to be a mixed picture as financial markets transition from the digital to artificial intelligence era. Humans remain a key cog in the wheel of market participants’ trading operations, albeit their roles have changed. Despite this, some elements of exchanges’ enforcement regimes have not kept pace with the move from floor to remote trading. However, in other respects, their efforts are or should be, effective, at least in behavioural terms.

The paper’s findings are arguably limited to exchanges based in Anglophone jurisdictions. The information published by the exchanges is variable, making “like-for-like” comparisons difficult in some areas.

The paper makes several recommendations that, if adopted, could help exchanges to increase the potency of their enforcement programmes.

A key aim of the paper is to shift the lens through which the debate concerning the efficacy of exchange-level oversight is conducted. Hitherto, a legal lens has been used, whereas this paper uses a behavioural lens.

The purpose of this study to brought new dimensions by inserting market conditions and investor sentiments as independent variable measure their impact on government policy formulation and sustainable development. This research also measures the moderating effective stakeholder engagement. Previous research has focused on demystifying the relationship between green bonds and sustainable development.

The analysis part of the research is initiated by factor analysis on the sample size of 100. After the construction of appropriate statements matching the research objective, it was circulated to the respondents of northern region of India. The sampling technique was random in nature through which data analysis on 700 respondents was done. For meeting research objectives present research applies PLS algorithm on the conceptual model framed through review of literature.

Out of all independent variables green bond issuance is having statistically significant impact on government policy formulation and investors’ sentiment is having statistically significant impact on sustainable development. Rest all other pairs are statistically insignificant. For an investor, it is necessary to understand that how its sentiments impacts government policy formulation and the health of ecology.

The research produced results with management implications for practitioners and policy makers that are very significant to the fields of sustainability, green finance and environmental policy. Green bonds also influence government policy, illustrating how green financing may revolutionize environmental laws and regulations.

The social implications of this revelation are considerable. The research enhances knowledge about sustainable development by emphasizing the importance of green bonds in supporting environmentally friendly activities. It allows for transparent reporting, increasing social accountability and reputation while attracting environmentally conscious consumers and fostering community trust. According to the survey, investor sentiment and their enthusiasm for eco-friendly investments may push more money to efforts that are good for society and the environment. This study enhances consciousness about sustainable finance, which has the potential to inspire beneficial social shifts towards a more environmentally and socially equitable future.

These social ramifications manifest themselves in various socioeconomic and environmental issues of the society in addition to credit and public policy. Second, it is evident that green bond emissions are influencing government policy, demonstrating the power of financial instruments to encourage environmentally beneficial social outcomes by providing officials with an incentive to modify environmental regulations.

The purpose of this research is to examine the connections between liquidity risk, credit risk, and bank profitability in India.

In order to examine the interlinkage between liquidity risk, credit risk, and profitability of banks in India, the researcher has gathered data from all commercial banks in India from 2004–2005 to 2020–2021. The data sources included in this study encompass the International Country Risk Guide, World Development Indicators and Reserve Bank of India (RBI). Seemingly Unrelated Regression (SUR) has been utilised for the study.

Findings of this research identified that liquidity risk is inversely proportional to credit risk. Return on assets (ROA) and return on equity (ROE) are both impacted negatively by liquidity risk. ROA is impacted positively by credit risk, while ROE is impacted negatively by it. The profitability of banks is harmed by the interaction between liquidity risk and credit risk. It also shows that law and order, are beneficial to bank earnings and risk management. The capital risk-adjusted ratio has a negative relationship with bank profitability, indicating the need for better capital allocation.

The originality of this work lies in its unique contributions, It emphasises explicitly the Indian context, thereby providing insights tailored to this particular setting. It employs the SUR methodology, a statistical approach allowing for a more comprehensive data analysis. Additionally, it identifies and explores interaction effects, which can shed light on the complex relationships between variables.

The great recession of 2008–2009 busted the market bubble and highlighted the loopholes in the banking sector related to excessive leverage and inadequate capital. It has led to the increased rigidity of financial regulations, forcing banks to focus more on compliance rather than moving towards innovation. All these factors together led to the emergence of new players in the financial market in the name of financial technology (Fintech) companies. With the help of Fintech, banking operations are now being revolutionised and transformed into techno-friendly systems. They, hence, can promise to act as a game changer for the banking sector as a whole.

This chapter aims to understand different perspectives of Fintech and how it helps the banking sector to improve its operations. This chapter will also offer insight into various types of Fintech instruments used by the banking sector, collaboration between banks and Fintech, and the benefits of its application to the banking sector.

This chapter attempts to lay out a literature review on Fintech. It examines the implications of applying Fintech in the banking sector to revolutionise its traditional banking operations and achieve its pre-established targets. Different techniques banks use to match up with Fintech and adapt it easily in its organisational structure.

This chapter presents a list of challenges linked to the application of financial technology in the banking industry. The chapter will also address the difficulties of using Fintech and ways to deal with them.

This paper aims to understand if buy-now-pay-later (BNPL) services, a digital type of credit that targets young consumers, acts as a protective or a risk factor for food insecurity among young consumers in Australia.

The study uses survey data from a representative sample of young consumers aged 18–24 from all internal states and territories in Australia. Propensity score matching is used to test two hypotheses: BNPL drives young consumers to food insecurity, and food insecurity leads young consumers to use BNPL.

There is evidence that BNPL use is driving young Australian consumers to experience food insecurity, but there is no evidence of food insecurity driving the use of BNPL services.

The evidence of BNPL driving young consumers to experience food insecurity calls for the adoption of practices and stronger regulation to ensure that young users from being overindebted.

Although the link with more traditional forms of credit (such as personal loans) and consumer wellbeing has been explored more broadly, this project is the first attempt to have causal evidence of the link between BNPL and food insecurity in a high-income country, to the best of the authors’ knowledge. This evidence helps to fill the gap about the protective or risky nature of this type of digital financial product, as experienced by young Australians.

This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality.

The authors use the ordinary least squares regression on data from 942 firm-year observations of Jordanian non-financial institutions across the period (2017–2022) to test the hypotheses. The authors use content analysis method to measure levels of KAM disclosure.

The investigation’s findings highlight the importance of KAM disclosure in achieving audit quality in line with international standard on auditing no. 701 (ISA-701) requirements. COVID-19 is also found to have a positive relationship with audit quality, further confirming the crisis’s devastating impact on audit complexity and risks and providing evidence for the need for supplementary, high-quality audit services. Due to the correlation between KAM disclosure and increased auditor workload and responsibility, the analysis reveals that the COVID-19 factor strengthens the link between KAM disclosure and audit quality.

This study has the potential to be used as a basis for the creation of a new regulation or standard regarding the reporting of unfavourable events in financial filings. This study’s findings provide standard-setters, regulators and policymakers with current empirical data on the effects of implementing ISA-701’s mandate for external auditors to provide more information on KAM. The COVID-19 crisis offers a suitable setting in which to examine the value of precautionary disclosures in times of economic uncertainty, as well as the significance of confidence interval disclosures and the role of external auditing in calming investor fears. This analysis is helpful for stakeholders, regulatory agencies, standard-setters and readers of audit reports who are curious about the current state of KAM disclosures and the implementation of ISA-701. The results may have ramifications for academia in the form of a call for more evidence expanding this data to other burgeoning fields to have a clear explanation of the real impact of reporting KAM on audit practices.

To the authors’ awareness, this research is one of the few empirical studies on the effect of the COVID-19 crisis on auditing procedures, and more specifically, the effect of disclosures on KAM by external auditors on audit quality. This study’s findings represent preliminary scientific evidence linking the pandemic to business performance. Minimal research has been done on how auditors in developing nations react to pandemic investor protection and how auditors’ enlarged reporting responsibilities affect them. The vast majority of auditing studies have been conducted in a highly regulated system, so this research contributes by examining audit behaviour in a weak legal context.

The study aims to investigate the impact of indirectly evoked incentives, in the form of supervisor’s preferences, on the decision about accounting policy regarding depreciation method selection and to examine subsequent post-decision distortion by evaluating the depreciation method.

The authors conducted two experiments with control and treatment groups, manipulating the supervisor’s indirectly evoked preferences. In Study 2, the authors also measured the evaluation of both depreciation methods to investigate post-decisional distortion regarding the assessment of the depreciation method chosen in a decision task. Study 1 was conducted among 85 accounting students, while Study 2 consisted of 200 accountants.

Both studies revealed the significant impact of supervisor’s indirectly evoked preferences on accounting policy decisions. Participants who were aware of supervisors’ preferences were more likely to choose the depreciation method that was consistent with those preferences. The authors also found that those participants attached a higher value to the depreciation method, providing evidence that adherence to the supervisor’s preferences results in a distorted assessment of the depreciation methods.

First, this study shows that indirectly evoked supervisors’ preferences may lead to a departure from substantive criteria resulting in low-quality accounting outcomes. Second, the assessment of the depreciation method is inseparable from the situational context, as the evaluation of the depreciation method is interdependent upon the preferences of the choice of a depreciation method and the fulfillment of those preferences.

This study aims to evaluate the interaction between bank capital and explicit deposit insurance scheme (DIS) on the financial stability of Islamic and conventional banks.

The author's sample covers 52 Islamic and 108 conventional banks operating in 12 countries over the period 2000–2021 using the random-effects generalized least squares (RE-GLS) regression technique.

The author's results reveal that bank capital negatively mediates the relationship between explicit DIS and the financial stability of both Islamic and conventional banks. Additionally, explicit DIS has a positive impact on the financial stability of conventional banks. However, the results are mixed for Islamic banks, as the effect of explicit DIS is positive for the Middle East and North Africa (MENA) region but negative for the South and Southeast Asia (SSA) region. Finally, the interaction between explicit DIS and the COVID-19 pandemic has a negative effect on conventional banks operating in the MENA region, while it has a positive effect on Islamic banks operating in the SSA region.

The findings of this paper have important implications for regulators in evaluating DIS policies and in anticipating any potential adverse consequences that might arise for both Islamic and conventional banks in normal and crisis times. Policymakers should strive to preserve the benefits of DIS while mitigating the destabilizing effects of its interaction with capital ratios.

This study introduces a novel aspect by examining the mediating role of capital in the relationship between explicit DIS and the financial stability of Islamic and conventional banks.

Lack of access to finance is a major constraint to the growth of small and medium-sized enterprises (SMEs) and entrepreneurship in developing countries. The recent proliferation of mobile phone services, access to the internet and emerging technologies has led to a surge in the use of FinTech in Africa and is transforming the financial sector. This paper aims to examine whether FinTech developments heterogeneously contribute to the growth of digital finance for SMEs and entrepreneurship in 47 African countries from 2013 to 2020.

The paper uses a novel method of moments quantile regression, which deals with heterogeneity and endogeneity in diverse conditions for asymmetric and nonlinear models.

The empirical results reveal that the rise of FinTech companies offering services in Africa heterogeneously increases digital finance for SMEs and entrepreneurship in their different stages of growth. FinTech developments have a strong and positive impact in countries with higher levels of digital finance than those with lower levels. FinTech developments and digital finance positively and significantly influence entrepreneurship in Africa, particularly in the nascent and transitional development stages of entrepreneurship. Institutional quality has a considerable positive moderating effect when used as a control rather than an interaction variable.

The results suggest the need to promote FinTech developments in Africa: to provide a wide range of alternative digital finance schemes to SMEs and to promote entrepreneurship, especially in countries where entrepreneurship is in the nascent and transitional development stages. The results also underscore the need to promote FinTech development through supportive regulations and institutional quality to reduce risks related to FinTech and digital financing schemes.

To the best of the authors’ knowledge, this paper is one of the first attempts to account for the often overlooked heterogeneity effects and show that the influence of FinTech developments is not homogenous across the varying development stages of digital finance and entrepreneurship.