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The purpose of this paper is to analyze the role of four different incentives in improving hedging effectiveness and propose an alternative regulatory mechanism for China’s futures market.

The research method that this study uses is a laboratory experiment, and this study follows the basic norms of experimental research. In addition, this paper designs and conducts a game experiment between hedgers and futures brokerage firms (FBFs) under different incentive mechanisms.

By analyzing the experimental data, it is found that compared with other incentive mechanisms, hedgers’ willingness to hedge and FBFs’ regulatory intention are both significantly higher for the dynamic linkage updating mechanism, indicating that hedgers have a stronger willingness to follow their hedging plan, and FBFs are more responsible for their regulatory behaviors. Additionally, the dynamic linkage updating mechanism has a long-term impact on effective hedging in the futures market.

The findings suggest that the dynamic linkage updating mechanism is beneficial for effectively restricting both hedgers’ over-speculation and FBFs’ regulatory slack and improving the hedging efficiency of the futures market.

To solve the problem of inefficient hedging in China’s futures market, i.e., hedgers’ over-speculation and FBFs’ passive collusion with hedgers, the regulators of China’s futures market should reform the existing incentives and adopt a dynamic linkage updating mechanism to encourage all the participants to actively improve hedging effectiveness.

This paper analyzes and verifies, for the first time, the role of the dynamic linkage updating mechanism in the investing behaviors of hedgers and the regulatory behaviors of future brokerage firms. The futures market experiment that was designed and used in this study is a pioneering and exploratory experiment that applies game theory and mechanism design theory to the field of behavioral finance.

The aim of the paper is to examine what type of relationship existed between the Office of the Comptroller of the Currency (OCC) and Riggs Bank in respect of anti-money laundering (AML) compliance. Different commentators have established certain trends in the interaction between a regulator and a regulated entity, and this paper seeks to apply these findings to the relationship between the OCC and Riggs Bank and ascertain where this example lies in the wider domain of regulatory relationships. The paper then examines whether the relationship between the OCC and HSBC United States was similar to the one between the OCC and Riggs Bank or did the regulator adopt a more aggressive supervisory stance. Throughout this work, there is also a focus on the underlying incentives which may adversely affect how a financial institution interacts with a financial regulator and possible solutions to this problem proposed.

Research undertaken by commentators was assessed and their findings as the different regulatory relationships that may develop between a regulator and a regulated entity were applied to the interactions between the OCC and two different financial institutions, namely, Riggs Bank and HSBC United States. Examples from the Senate Subcommittee Reports into the AML failings into these financial institutions were examined through the prism of pre-existing regulatory relationship categories.

The paper ultimately concludes that the OCC was far too passive in its interactions with both Riggs Bank and HSBC United States and that the primary underlying motivations for both institutions were profit- rather than compliance-led.

One of the main limitations to this research was the absence of direct input from either personnel from the banking sector in the USA or of regulators from the same jurisdiction.

This paper proposes a number of practical solutions to recast the relationship between financial regulators and regulated institutions away from the former deferring to the latter to one where the former dictates to the latter.

This paper seeks to examine an actual regulatory relationship between a financial regulator and two different institutions that is reported in the public domain by applying pre-existing academic research on question of regulatory relationships and see how the practice differs or corresponds with the theory.

This conceptual paper aims to present a new framework for the use of incentives when encouraging small businesses to adopt more sustainable business practices. It seeks to identify and categorize various types of incentives.

The incentives framework was designed as a practical tool for use during the development of a small business sustainability program. Although conceptual in nature, the framework is based on research conducted by the Washington State (USA) Department of Ecology that used, in part, a modified grounded theory approach.

In addition to identifying and categorizing potential incentives, the paper presents an overview of mainstream thought on incentives and argues that incentives and disincentives are significantly different concepts. The paper identifies seven potential barriers to implementing incentives and summarizes potential solutions to those barriers. It also explains how incentives can be used to encourage sustainable behavior and corporate social responsibility reporting.

The framework presented is intended to assist practitioners develop and structure incentive programs. It is also intended to provide guidance to practitioners regarding the current mainstream paradigm on incentives and recommends changes to that paradigm.

The framework presented is entirely original. No similar framework appears to currently exist.

Recent calls by prominent Islamic scholars to shift the focus of Islamic finance away from bond‐like sukuk have been met with great unease by bankers in the industry. Islamic Financial Institutions, which hold the majority of all sukuk issued, face deposit side constraints on the types of returns they distribute, due to a need to match returns to market‐based deposit interest rates. Hence, it is in their interest to hold assets that provide stable benchmark‐based returns. The purpose of this paper is to provide an outline of an incentive‐based regulatory mechanism to encourage Islamic banks to reconcile their intended normative structure (profit and loss sharing) with the operational and pragmatic realities within which Islamic banks exist.

The paper traces the regulatory infrastructure and in particular Islamic Financial Services Board regulations on Capital Adequacy for Islamic Banks and provides recommendations for technical improvements to particular aspects of the regulations.

The paper provides practical regulatory recommendations on the capital adequacy regime implemented by central banks that could potentially align more effectively with the intended form of Islamic bank's operational structure, either as an investment bank or as a commercial bank.

By aligning the activities of Islamic banks with their intended operational structure through the implementation of a system of regulatory incentives as recommended in this paper, may help in quelling the increasing tide of criticisms of the current Islamic banking model which has deviated from its intended form. More importantly, if such regulation is implemented, it could also lead to enhanced systemic stability, since Islamic banks will be more resistant to economic shocks that affect the system.

While there are studies that research the effect of the capital adequacy ratio, none really provide practically implementable recommendations that align the Islamic bank business model with its intended objectives.

Amid increased size and complexity of the banking industry, operational risk has a greater potential to occur in more harmful ways than many other sources of risk. This paper seeks to provide a succinct overview of the current regulatory framework of operational risk under the New Basel Accord with a view to inform a critical debate about the influence of data collection, loss reporting, and model specification on the consistency of risk‐sensitive capital rules.

The paper's approach is to investigate the regulatory implications of varying characteristics of operational risk and different methods to identify operational risk exposure.

The findings reveal that effective operational risk measurement hinges on how the reporting of operational risk losses and the model sensitivity of quantitative methods affect the generation of consistent risk estimates.

The presented findings offer tractable recommendations for a more coherent and consistent regulation of operational risk.

In recent years major banking and financial crises have emerged in several countries. Banking systems seem to have become more crisis‐prone. Banks in many countries have very high levels of non‐performing loans, there has been a major destruction of bank capital, banks have failed, and massive support operations have been necessary. They have involved substantial costs: in some cases the cost has exceeded 10 per cent of GNP (eg in Spain, Venezuela, Bulgaria, Mexico, Argentina, Hungary).

The purpose of this paper is to map corporate disclosure theories as a step towards filling a gap in the theoretical background for corporate disclosure research. The purpose of the map is to encompass a range of particular theories relating to corporate disclosure and to demonstrate the complex relationships between different notions of the financial disclosure phenomenon. This will help new researchers to understand how particular corporate disclosure theories are related, as well as help with teaching accounting theories at undergraduate and postgraduate level.

A deductive and inductive approach to theory building was applied. The deductive approach suggests identifying the gap in the literature, the inductive approach then prescribes theory building in three stages: phenomenon observation, categorisation and relationship building. This approach serves to develop a theoretical map integrating the corporate disclosure theories.

The paper discusses theories that recognise actual features of financial markets – market failure, information asymmetry and adverse selection – to provide an explanation for the existence of corporate reporting regulations and managerial incentives, which control and determine the maximum level of corporate information under these conditions. It then integrates these theories in a map seeking to explain corporate disclosure levels, mandatory and voluntary, financial and narrative. A combination of theoretical supplements – codification theory, Dye's theory of mandatory and voluntary disclosure, and disclosure transformation theory – are proposed in this framework as theories to explain processes of change in mandatory and voluntary corporate disclosure in practice.

Another benefit mapping these theories is to provide useful insights into existing disclosure theories, which may help to explain why some empirical results have been inconsistent with the predictions of these theories. No similar attempts have been published in the accounting literature.

Biodiversity conservation tax incentives were inserted into the Income Tax Act 58 of 1962 in terms of the Revenue Laws Amendment Act 60 of 2008 and are now contained in section 37C. The objectives of this study were to quantify the maximum potential revenue loss, to National Treasury, as a result of these tax incentives granted to landowners in the Western Cape; to identify and discuss alternative policy instruments to encourage conservation; and to investigate the perceptions of landowners in the Western Cape on the tax and alternative incentives available for conservation. The study found that the maximum tax revenue foregone should amount to a tiny percentage of total estimated revenue income for the 2008/2009 fiscal year, while projected future losses could also be insignificant. Landowners prefer direct financial incentives and exemption from property taxes, and contend that direct assistance with conservation activities would also be beneficial. The use of municipal value in the valuation of land would promote objectiveness and consistency. Finally, only a third of the landowners indicated that tax incentives would encourage them to commit more land for conservation.

These zones offer participants a wide variety of incentives and can be found in sizes ranging from a few square acres to entire large cities. The diversity among SEZs presents an opportunity for new research.

Special economic zones (SEZs) have grown exponentially in popularity during the past few decades, in size and scope. They are often lauded as instruments central to enhancing economic growth in developing countries. However, the empirical evidence on the relationship between SEZs and growth is inconclusive.

The analysis concludes that corruption leads to the creation of smaller zones that are likely the products of rent-seeking.

The authors argue that SEZs can be effective vehicles for rent-seeking, especially geographically small zones and develop an empirical model to explore the relationship between zone size and the impetus for the zone creation, namely corruption. Specifically, the authors analyze whether these small zones are vehicles of economic growth or manifestations of country wide corruption.

Sustainability and environmental issues are among the most pressing concerns for modern humanity, governments and environmentally conscious business organizations. Green supply chain management has been acknowledged as a key factor to promote organizational sustainability. Green supply chain management is evolving into an important approach for organizations in emerging economies to manage their environmental responsibility. Yet, despite their importance for easing environmental degradation and providing economic benefits, study of the drivers that influence green supply chain initiatives in an emerging economy is still an under‐researched area. Using survey data collected from ISO 14001 certified organizations from Malaysia, the purpose of this paper is to propose that the drivers that motivate firms to adopt green supply chain management can be measured by a second‐order construct related to the implementation of the firm's green supply chain initiatives.

Structural equation model was used to analyze a set of survey data to validate the research hypotheses.

The research reveals four crucial drivers of green supply chain adoption that collectively affect a firm's green purchasing, design‐for‐environment and reverse logistics initiatives. This study uncovers several crucial relationships between green supply chain drivers and initiatives among Malaysian manufacturers.

The role of the drivers is crucial in motivating these firms to adopt green supply chain initiatives and facilitate their adoption. Firms in emerging countries need to realize that green supply chain initiatives can result in significant benefits to their firms, environment, and the society at large which gives them additional incentives to adopt these initiatives.