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This paper aims to discuss the money creation mechanisms in emerging markets with special focus on external transactions and outlines the implications for monetary policy and financial stability issues.

To make the argument, the authors analyze a historical episode of flows of funds in Korea and Russia and conduct a canonical correlation analysis for a cross-section of emerging market economies.

The authors show that changes in the net foreign assets of the banking system are associated with (or cause) deposits fluctuations. In emerging markets, however, the scope of such fluctuations is limited unless driven by changes in the foreign reserves of a central bank.

Some preliminary implications for financial stability implementation may be drawn from this analysis. Introducing the net stable funding ratio requirement is unlikely to have any significant destabilizing effect on credit creation in emerging markets (in this regard, it is similar to the restriction on banks’ foreign currency position, which is a common prudential measure). Instead, it is likely to trigger a balance of payment adjustment that is similar to that experienced by an economy during its transition from fixed to flexible exchange rate regime.

The global financial crisis has led to increased attention on the relationship of household indebtedness and systemic risks. As a result, macroprudential measures aimed at reducing the risks have been introduced in many countries. The purpose of this paper is to review the recent empirical literature on the measures targeted at households in the housing markets.

This note reviews and discusses the recent empirical literature on macroprudential measures targeted at households in the housing market as well as housing-related tax policy measures.

To date, the literature mostly consists of cross-country studies using aggregate data and looking at a large set of different measures. The studies typically report associations between the measures and the outcome variables of interest (often credit growth and house price appreciation), but do not assess the causal effects of the different measures or the underlying mechanisms.

Exploiting household data together with policy reforms should be a useful step forward in understanding the effects of the measures and uncovering the mechanisms through which they operate. This would also allow studying the distributional effects of the measures. Understanding the distributional effects is important in its own right, but it is also required because the ultimate goals of the macroprudential policies are related not only to the aggregate level of credit but also to the distribution of leverage.

This study aims to examine whether debt financing creates incentives for private firms to engage in earnings management via classification shifting. Especially, the authors examine whether debt-induced financial reporting incentives differ depending on the type of debt (i.e. public bonds versus private loans) and whether such incentives are influenced by the characteristics of external auditors (i.e. initial audits and auditor size).

The study uses data on 93,427 Korean private firms from 2001 to 2016. Classification shifting is measured by the positive correlation between non-core expenses and unexpected core earnings estimated with ordinary least squares.

The empirical analyses reveal that private firms engage in classification shifting as do public firms. Importantly, classification shifting is observed only in private firms that have outstanding debt, but not in private firms without debt. Among debt-financing private firms, classification shifting is more prevalent for firms that issue public debt than for firms that only use private debt. In addition, classification shifting of debt-financing private firms is more successful when they are audited by new auditors that are one of the non-Big 4 firms.

The study provides evidence of classification shifting in private firms, which is novel to the literature. However, the inferences in the study depend on the validity of the model for detecting classification shifting.

This study helps lenders enhance their understanding on the financial reporting behaviors of borrowing firms. The results in this study suggest that lenders should be cautious in using core earnings for their investment decisions.

This study contributes to the literature by providing novel evidence of classification shifting in private firms. In addition, the authors contribute to the literature on debt-induced incentives for financial reporting.

The authors draw on psychological reactance theory, collective mental programming, psychological profiles and financial vulnerability experiences to assess the possibility that the pandemic may induce transformative changes in households' behavioral intentions related to financial decisions after the pandemic is over.

Using a unique survey data drawn from four different countries located in North America, Europe, Africa and Latin America, the authors show that the stressful conditions that accompanied the pandemic have instigated a state of financial vulnerability and stimulated instinctual defensive mechanisms among consumers.

The study results indicate that households have intentions to make defensive decisions in spending, consumption, planning and investment. Furthermore, the authors report evidence that personal psychological heterogeneity (as an individual factor) and collective mental programming (as a cultural factor) play a significant role in shaping households' postpandemic financial intentions.

The study findings carry important practical implications. For financial institutions, marketers and financial advisors, the authors’ work implies that individual and collective factors affect people's perception and behavioral intentions in response to financial adversities. For social planners and legislators, the authors’ work shows that they should expect not only short-term but also long-term reactions to the COVID-19 pandemic.

Most research on the impact of COVID-19 pandemic on households' financial behavior focuses on transitional adjustments made during the pandemic, and little emphasis has been placed on potential postpandemic adjustments. The authors contend that it would be a mistake to analyze the pandemic-induced crisis as a temporary financial hardship.

There is shortage of global research on asset management (AM) by various central governments. This paper aims at reducing this gap.

This general review is based on literature, published government documents, agendas of specialized membership organizations (considered through the qualitative thematic analysis) and the authors’ experiences in advising governments on AM in 30 countries. The study focuses on three topics of recurrent interest among governments and AM experts: drivers of change and response trends; organizational models and attributes of good governance at public AM organizations. It also discusses whether the examined practices conform with New Public Management (NPM).

The paper identifies five key international drivers of change: austerity measures; an increased focus on performance management; changes in political and ideological agendas; technology and business operations changes; and the environmental sustainability agenda. It analyses response trends to these drivers, both positive and negative. Five dimensions of organizational settings that are important for AM are identified, demonstrating the great diversity of practices. The paper outlines governance elements specific to government AM and illustrates related challenges. It also shows that while current AM typically conforms with NPM, there are notable deviations, such as low corporatization and recentralization of AM.

This paper is a broad review; in-depth study of specific aspects is left for further research.

The paper introduces new empirical knowledge about AM approaches at central governments into research discourse, with a broad thematic coverage not achieved before; contributes to the discussion of some hot underexplored topics; hypothesizes why current AM practices deviate from NPM doctrines; and provides unique insights for AM practitioners.

The concept of outsourcing is a recognised business planning strategy; senior corporate management and facilities services have been progressively outsourced in the UK for many years. However, transforming an outsourcing business plan into an effective and balanced operating contract remains challenging. Getting your outsourcing project properly positioned in the business, procuring the right integrated facilities contractor and then subsequently mobilising and managing the contract can be a difficult journey to navigate. This paper describes how to approach the principles and practicalities of outsourcing noncore services and how to make sure that some of the principal pitfalls along the road of the outsourcing project are avoided. It finally offers some ideas on how to get the most out of a project in the long term.

This study aims to test the link between enterprise digital transformation and technological innovation and the mechanisms and channels behind this link.

This study systematically examines whether and how enterprise digital transformation affects technological innovation in China.

Enterprise digital transformation effectively improves technological innovation. This result remains stable in robustness and endogeneity checks. The channel mechanisms of this promoting effect are internal (improvement of internal control quality and alleviation of agency costs) and external (increased attention of analysts and reduction of customer concentration). Moreover, this promoting effect is more significant for state-owned enterprises, small and medium-sized enterprises, enterprises in areas with low marketization and enterprises that do not enjoy digital subsidies from the government.

Enterprises need to attend to the mechanisms behind the link between digital transformation and technological innovation and to the unique effects of different enterprise attributes and capital markets, such as size, the ownership nature, the degree of regional marketization and government subsidies. Doing so will effectively promote digital transformation and technological innovation and strengthen core competitiveness.

This study provides systemic evidence of the link between enterprise digital transformation and technological innovation. The findings enrich the research literature on enterprise digitization and the factors of influencing enterprises’ technological innovation and provide a reasonable explanation for how enterprise digital transformation affects technological innovation.

Training has been an important tool for enhancing the skills and productivity of employees. Having productive employees helps organizations sustain themselves. Today, the authors organisations have an increasing number of employees on third-party payroll performing core as well as noncore business functions. However, due to the lack of ownership and moral obligation of employers, these employees are often not provided training, resulting in skills obsolesce and less productivity. The present study is a systematic literature review (SLR) on client organizations’ roles in training third-party employees (TPEs) and its related outcomes.

The present study is a SLR on client organizations' roles in training TPEs and their related outcomes. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) approach, this study presents a review of 217 research papers on training of TPEs and its related outcomes.

The study identifies the outcomes of providing training to TPEs and presents the findings and suggestions made by researchers. The study concludes that TPEs are an important investment for the client organization. Training them would benefit the client organization, TPEs and the economy as a whole. The paper also suggests some avenues for future research.

This paper tries to answer an important question: What could drive productive behavior among TPEs? Based on the literature reviewed, the answer is that TPEs could be offered training opportunities with a view to enhancing their employability. This could induce, among them, a sense of being valued and supported while contributing to organizational performance and creating a feeling of reciprocal obligation. This is an important contribution to literature. Low investment in these employees affects their employability, i.e. be it in the same organization for another term or another organization and thus the need for training and development, for sustained productivity among TPEs, in organizations.

Training and development, for them, would result in enhanced employability within as well as outside the organization. These employees could also be a good source for regular positions within the organization, if required, benefiting both the organization and the employee. Additionally, the economy would also benefit from a pool of skilled workforce. Therefore, it is suggested that governments initiate some policy framework regarding mandatory training of TPEs to increase their competencies, resulting in increased organizational productivity, especially for TPEs at lower and middle levels of management.

The paper is an original contribution by the researcher. An attempt has been made to highlight the training needs of TPEs and their related outcomes.

This paper aims to investigate a fundamental research question of whether the Islamic banking business model makes corporate earnings more uncertain. This question arises because prior research shows that Islamic banks do well in loan performance but incur more operational costs than conventional banks, indicating the systemic limitation of Islamic banks in business risk management.

The study used a sample of banks to conduct the panel regression analysis with 15 years of data for 532 banks (129 Islamic and 403 conventional) from 23 Muslim countries across the world. The authors estimate earnings uncertainty in two ways: the spread and standard deviation of the country-adjusted return over the sample period and applied the difference-in-difference approach interacting cost to income ratio with the Islamic bank dummy, checking if Islamic bank’s high operational costs contribute to more earning uncertainty.

Islamic banks’ returns on assets are significantly more uncertain than conventional banks due to higher operational costs. Consistent with earlier evidence, the study also finds that Islamic banks generally have fewer nonperforming loans than conventional banks. The authors conclude that Islamic banks trade-off between reducing credit risk and escalating business risk.

This study documents that the Islamic banking model helps build a safer asset portfolio but gives rise to the uncertainty of corporate earnings. Therefore, the choice between Islamic and conventional banking models involves a trade-off between credit and business risks. It is a new finding that we add to the literature body on Islamic finance.

This paper aims to examine the impact of charter type (national vs state), holding company structure, and measures of bank fragility on the likelihood of bank failure during the late 2000s financial crisis.

The study estimates a series of logit regressions in an effort to identify the causes of failure and assess the role of the bank‐level characteristics while controlling for the economic and regulatory environment.

The empirical results indicate that established institutions were more likely to fail, dependent upon whether a bank received bailout funds or not, if they were relatively large, had relatively low capital ratios, had relatively low liquidity, relied more heavily on brokered deposits, held a relatively large portfolio of real estate loans, had a relatively large proportion of non performing loans, and had less income diversity. Consistent with being financially fragile, de novo banks and those banks that grew substantially prior to the crisis faced an increased likelihood of failure relative to established banks. However, capital levels were not significantly related to the likelihood of failure in de novo institutions.

This paper provides a comprehensive analysis of the possible business models' impact on the likelihood of failure during the recent financial crisis. It contributes to the ongoing debate regarding appropriate regulatory reform in the banking industry by shedding light on the extent to which the business model decisions made by bank managers have an impact on the stability of the banking system.