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The purpose of this paper is to assess the latest directives of the European Parliament and the Council – MiFID II and MiFIR – on markets in financial instruments in response to the growth of dark pools in European equity markets.

This paper examines the impact of the new regulatory packages on European equity markets by identifying areas where the legislation is effective and comparing these changes in EU legislation with US legislation on dark pools.

This paper find that the MiFID II and MiFIR directives, implemented by the European Securities and Markets Authority to address these concerns, have reduced information asymmetry between market participants, thereby increasing competition between regulated markets and alternative trading facilities.

Increased competition can improve market quality, which has practical implications for financial market regulation and policy formulation.

These findings are novel in the existing literature on high frequency trading through dark pools. They improve the understanding of dark trading and its impact on competition and market efficiency. In addition, this research can assist policymakers in designing effective financial market regulation. The economic analysis of legislation also helps regulators assess the impact of new legal provisions on the functioning of capital markets.

The purpose of this study is to investigate the challenges and potential improvement mechanisms for the development of technology and innovation in the Ethiopian construction industry.

In this study both quantitative and qualitative research approaches were adopted. While a structured questionnaire was used for the quantitative data collection, semi-structured interview was used for qualitative data collection. In analyzing the quantitative data, mean score was used to rank the variables and factor analysis was conducted to identify the underlying dimensions of the research constructs. The qualitative data was analyzed thematically focusing on specific objectives of the study; the challenges and improvement mechanisms of technology and innovation development.

The findings indicate that the major challenges are nature of the industry and lack of awareness, weak capacity of companies and the regulatory instruments, inadequate tender duration and poor monitoring and controlling practice. The suggested improvement mechanisms are effective coordination of the process and awareness creation, promoting technology and innovation in the procurement process and technology and innovation consideration in construction project registration.

Effectiveness of construction industry improvement programmes is affected by inappropriateness of the adopted implementation mechanisms. Understanding the operating environment; the enablers and potential barriers, is important for the success of any envisioned improvement programme. The improvement framework proposed by this study indicates the potential intervention areas and improvement mechanisms to effectively induce and enhance technology and innovation development in the construction industry. Major pillars of the improvement framework are improving regulatory framework, raising awareness and stakeholder engagement and continual monitoring and controlling of the practice.

This study aims to explore the potential of Islamic climate finance in Indonesia and to map Islamic climate finance based on Islamic finance instruments, both commercial and social.

The analysis was conducted in Jakarta, Indonesia, between October 2022 and June 2023. This study adopted a qualitative interpretive approach in two phases. The first phase was desk-based research which focused on document analysis such as official documents, scientific publications, non-governmental organization publications and company reports in Indonesia. This analysis was conducted to identify significant milestones in developing green and eco-friendly finance that used Islamic financial instruments in Indonesia. The second phase consisted of interviews with essential Islamic climate finance project actors, such as green sukuk publishers, zakat and waqf collection agencies, stakeholders, capital market regulators, Shariah supervisory boards and Islamic finance experts.

The main finding of this study is that the development of Islamic green finance in Indonesia can occur through various channels, including greening Islamic capital markets, greening Islamic social finance, Islamic green finance and developing green banking services for the unbanked to support financial inclusion. Green sukuk, or Islamic bonds, are key financial instruments in Islamic green finance. They are used to fund projects in areas such as clean energy, mass transit, water conservation, forestry and low-carbon technology. These green financing initiatives also include socially responsible investments that are designed to improve the lives of people and communities.

First, the availability of data on Islamic green finance practices in Indonesia may be limited, making it difficult to obtain a comprehensive understanding of the current landscape. Second, cultural and religious factors may play a role in the adoption and implementation of Islamic green finance, and these factors may vary across different regions in Indonesia.

The exploration and clustering of Islamic climate finance based on Islamic financial instruments in Indonesia can lead to the development of more sustainable and environmentally friendly practices in the financial industry.

This study serves as a pioneering effort to explore the potential and clustering of Islamic climate finance based on Islamic financial instruments in Indonesia.

This study aims to conduct a comprehensive methodological review, exploring the strategies used to address endogeneity within the realms of corporate governance and financial reporting.

This research reviews the application of various methods to deal with endogeneity issue published in the 10 journals covering the corporate governance discipline included in the Web of Science’s Social Sciences Citation Index.

With a focus on empirical studies published in leading journals, the author scrutinizes the prevalence of endogeneity and the methodologies applied to mitigate its effects. The analysis reveals a predominant reliance on the two-stage least squares (2SLS) technique, a widely adopted instrumental variable (IV) approach. However, a notable observation emerges concerning the inconsistent utilization of clear exogenous IVs in some studies, highlighting a potential limitation in the application of 2SLS. Recognizing the challenges in identifying exogenous variables, the author proposes the generalized method of moments (GMM) as a viable alternative. GMM offers flexibility by not imposing the same exogeneity requirement on IVs but necessitates a larger sample size and an extended sample period.

The paper sensitizes researchers to the critical concern of endogeneity bias in governance research. It provides an outline for diagnosing and correcting potential bias, contributing to the awareness among researchers and encouraging a more critical approach to methodological choices, recognizing the prevalence of endogeneity in empirical studies, particularly focusing on the widely adopted 2SLS technique.

Practitioners, including corporate executives and managers, can benefit from the study’s insights by recognizing the importance of rigorous empirical research. Understanding the limitations and strengths of methodologies like 2SLS and GMM can inform evidence-based decision-making in the corporate governance realm.

This paper analyzes the ex-ante determinants of asset securitization in Moroccan banks, providing a detailed exploration of factors influencing securitization in the Moroccan banking sector.

The study focuses on funding, performance, risk transfer and regulatory capital arbitrage hypotheses. By employing a probit model, we examined all Moroccan banks that securitized their assets from 2002 to 2022. Additional analyses were conducted with alternative variables and by splitting the sample into two periods, 2002–2013 and 2014–2022, to assess the impact of the regulation law 119-12 implemented in 2013 on the Moroccan securitization market.

The results indicate that the search for alternative funding sources and bank size emerge as significant factors driving securitization in Morocco. Additionally, there is limited evidence that loan portfolio quality is a decisive factor to securitize. Meanwhile, there is no evidence that securitization is driven by performance and regulatory capital arbitrage. Robustness tests further support these findings, while also suggesting that banks may engage in securitization to enhance their performance and, to a lesser extent, reduce regulatory capital.

This paper contributes to the empirical literature by identifying the determinants that drive Moroccan banks to securitize, addressing a research gap in the relatively understudied Moroccan securitization market. The findings provide valuable insights for bankers, investors and policymakers, highlighting the potential benefits of securitization and suggesting policy changes to foster a robust securitization market while ensuring financial stability.

This study investigates the relationship between corporate social responsibility (CSR) and financial performance of the banking sector from the prospective of emerging countries.

This study obtained balance sheet and income statement data for 173 banks in 20 emerging countries from the Bankscope database from 2005–2018. The CSR-related data were taken from the Thomson Reuters ASSET4 database. Moreover, macroeconomic controls such as GDP per capita, inflation, and financial development are attained from the GFDD. The series of institutional quality indices (Political Stability, Rule of Law, Control of Corruption, Government Effectiveness, and Regulatory Quality) is obtained from the WGI. At the same time, national culture and bank regulation are attained from Hofstede Insights and Barth et al. (2013). We used the panel fixed-effects model in our baseline estimations, while 2SLS and GMM were applied to control for endogeneity.

The finding shows that CSR activities significantly improve bank performance, but the effect varies across the bank. Only environmentally friendly activities have shown a significant positive relationship with banking performance for CSR dimensions. However, the social and government dimensions did not significantly affect bank performance. Moreover, a sound institutional and regulatory environment and national norms play an important role in the nexus of CSR activities and bank performance.

This study provides empirical evidence that sheds light on CSR and bank performance in an emerging market context.

Research indicates a significant risk of economic crime associated with post-disaster funding. The purpose of this paper is to assess the characteristics of post-disaster funding that make it susceptible to the risk of economic crime and to analyse how the statutory and regulatory disaster risk management instruments of South Africa aim to manage post-disaster events.

This paper uses secondary sources such as, but not limited to, legislation, institutional reports, textbooks and peer-reviewed academic journal articles.

Post-disaster funding is inherently susceptible to economic crime due to characteristics identified such as time pressure; substantial inflow of money, goods and services; inadequate needs assessment, large-scale reconstruction and the involvement of contractors or suppliers; power imbalance; and the responsibility of governments. The Disaster Management Act and National Disaster Management Framework provide an extensive regulatory framework for mitigating post-disaster funding risks by attempting to find a balance between quick aid distribution and financial controls. This paper finds that even though South Africa is known to have some of the best disaster risk management laws, the pervasive nature of the characteristics could still render post-disaster funding structures susceptible to the risk of economic crime.

There is limited scientific research on this topic. The expected prevalence of future disasters requires the regulatory and legislative disaster risk management instruments to evolve concomitantly. Research on this topic must continue to ensure that risks associated with post-disaster funding and its susceptibility to economic crime can be mitigated as far as possible.

This study aims to investigate whether the changes in gender composition of bank board affects Vietnamese bank stability efficiency.

This research covers a panel of 27 commercial banks in Vietnam over a 14-year period from 2007 to 2020. The two-step system generalized method of moments is used to estimate the gender diversity–Vietnamese bank stability efficiency nexus.

The authors find that a greater degree of board gender diversification enhances bank stability efficiency and reduces bank risk-taking in Vietnam. The relationship between gender diversity and the stability efficiency of Vietnamese banks is still valid under the influence of regulatory capital sufficiency and during the financial crisis. These findings are robust to alternative proxies for risk indicators and consistent with the perspectives of stakeholder and behavior theory.

Although this research revisits the relationship between gender diversity and bank risk-taking, it is the first attempt to explore the role of women on board in enhancing the stability efficiency of banks, using the stochastic frontier approach. These findings shed light on the function of gender diversity as a governance instrument for mitigating risk in an emerging market context.

Firms in emerging economies are generally at a disadvantage in terms of resources, which may limit their digital transformation. The Chinese government has designed and promulgated a series of wind power policies from the perspectives of support and regulation. The former provides scarce resources for enterprises and thus alleviating financial constraints. While the latter increases the demands for advanced technologies, thereby triggering resource bricolages. This study aims to clarify the impact of industrial policy on the digital transformation of the Chinese wind power industry, and the role of financing constraint and resource bricolage in the above relationship.

Based on the data of listed companies in the Chinese wind power industry from 2006 to 2021, this study clarifies the impact and mechanism of industrial policy on firm digital transformation with fixed effect regression models.

Empirical results indicate that both supportive and regulatory policies are the cornerstone of the digital transformation of the Chinese wind power industry. Financial constraint and resource bricolage, respectively, mediate the impact of supportive and regulatory policies. However, the mix of supportive and regulatory policies inhibits digital transformation. Moreover, industrial policies are more effective for the digital transformation of state-owned enterprises, as well as enterprises in economically underdeveloped regions.

This study investigates the path of government intervention driving firm digital transformation from the resource-related perspective (i.e. financial constraint and resource bricolage), and its analytical framework can be extended based on other theories. The combined effects of cross-sectoral policies (e.g. wind power policy and digital infrastructure policy) can be further assessed. The marginal net benefit of government intervention can be calculated to determine whether it is worthwhile.

This study emphasizes the necessity of government intervention in the digital transformation of enterprises in emerging economies. The governments should align the policy targets, clarify policy recipients and modify policy process of different categories of industrial policies to optimize the effectiveness of policy mix. Given that the effectiveness of government intervention varies among different categories of enterprises, the competent agencies should design and promulgate differentiated industrial policies based on the heterogeneity of firms to improve the effectiveness and efficiency of industrial policies.

This is one of the earliest explorations of industrial policies’ effect on the digital transformation of the renewable energy sector in emerging economies, providing new evidence for institutional theory. Meanwhile, this study introduces financial constraint and resource bricolage into the research framework and attempts to uncover the mechanism of industrial policy driving the digital transformation of enterprises in emerging economies. Besides, to expand the understanding of the complex industrial policy system, this study assesses the effectiveness of the industrial policy mix.

The purpose of this study is twofold. On the one hand, it studies the impact of IFRS 9 adoption on the firm value; and on the other hand, it investigates the impact of the classification of financial assets on the firm value.

The study covers a sample of 55 listed banks in the Middle Eastern and North African (MENA) region. Data is collected for three years (2017–2019).

The findings show that banks’ value is not impacted by IFRS 9 adoption but by financial assets’ classification. Firm value is positively affected by fair value through other comprehensive income assets, while it is negatively affected by amortized cost and fair value through profit or loss assets. The results of the additional analysis show consistent outcomes.

This research reveals important managerial implications. Priority should be given to the financial assets’ classification strategy following the adoption of IFRS 9 to boost the market valuation of banks. It may be useful for investors, managers and regulators in their decision-making.

This study enriches previous research as IFRS 9 is a new standard, and its adoption consequences need to be investigated. A few recent studies have focused on IFRS 9 as a whole or on other parts of IFRS 9, namely, the impairment regime and hedge accounting and concern developed contexts. However, this research adds to the knowledge of capital market studies by investigating the application of IFRS 9 in terms of classification in the MENA region.