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The purpose of this paper is to examine the value-at-risk and related measures for the Bitcoin and to compare the findings with Standard and Poor’s SP500 Index, and the gold spot price time series.

A GJR-GARCH model has been implemented, in which the residuals follow the standardized Pearson type-IV distribution. A large variety of value-at-risk measures and backtesting criteria are implemented.

Bitcoin is a highly volatile currency violating the value-at-risk measures more than the other assets. With respect to the Basel Committee on Banking Supervision Accords, a Bitcoin investor is subjected to higher capital requirements and capital allocation ratio.

The risk of an investor holding Bitcoins is measured and quantified via the regulatory framework practices.

This paper is the first comprehensive approach to the risk properties of Bitcoin.

The purpose of this paper is to apply alternative GARCH‐type models to daily volatility forecasting, and apply Value‐at‐Risk (VaR) to the Taiwanese stock index futures markets that suffered most from the global financial tsunami that occurred during 2008.

Rather than using squared returns as a proxy for true volatility, this study adopts three range‐based proxies (PK, GK and RS), and one return‐based proxy (realized volatility), for use in the empirical exercise. The forecast evaluation is conducted using various proxy measures based on both symmetric and asymmetric loss functions, while back‐testing and two utility‐based loss functions are employed for further VaR assessment with respect to risk management practice.

Empirical results demonstrate that the EGARCH model provides the most accurate daily volatility forecasts, while the performances of the standard GARCH model and the GARCH models with highly persistent and long‐memory characteristics are relatively poor. In the area of risk management, the RV‐VaR model tends to underestimate VaR and has been rejected owing to a lack of correct unconditional coverage. In contrast, the GARCH genre of models can provide satisfactory and reliable daily VaR forecasts.

The unobservable volatility can be proxied using parsimonious daily price range with freely available prices when applied to Taiwanese futures markets. Meanwhile, the GARCH‐type models remain valid downside risk measures for both regulators and firms in the face of a turbulent market.

The accounting regulation literature has recently devoted a significant degree of attention to delineating the roles of accounting firms as key professional actors in the transnational policy arena. Such a heightened level of scholarly engagement with firms seems to have shifted the focus away from the roles of the national professional institutes. The purpose of this paper is to demonstrate the importance of not losing sight of the national professional bodies as important players on the transnational governance scene.

The accounting regulation literature has recently devoted a significant degree of attention to delineating the roles of accounting firms as key professional actors in the transnational policy arena. Such a heightened level of scholarly engagement with firms seems to have shifted the focus away from the roles of the national professional institutes. The aim with this paper is to demonstrate the importance of not losing sight of the national professional bodies as important players on the transnational governance scene.

The paper provides empirical illustrations and discussion of the transforming agendas and strategies of influence pursued by various national professional bodies as they attempt to reinvent themselves to face up to the challenges of the changing regulatory landscape. Specifically, the paper analyses a range of activities where such bodies are seen to be competing with each other as well as partaking in a variety of collaborative initiatives in their quest to gain/maintain the status of a global/regional professional thought leader.

The paper is designed to encourage renewed academic debate on the roles and strategies of national professional institutes and highlight opportunities and venues for future research. The paper is also suggestive of the need to refine conceptual perspectives on professionalization processes operational in transnational settings.

The accounting literature is lacking in terms of contemporary study of national professional bodies as active institutions with global ambition and strategies of influence. This paper addresses such a shortcoming by analysing the strategic intent and actions of a range of such bodies (revealing, in the process, a quite fascinating complex of activity, competition and cooperation) and calling for a renewed focus on national professional bodies as a way of enhancing contemporary understanding of the workings of the “global accounting profession”.

This study aims to render a fundamental assessment of the Basel II internal ratings-based (IRB) approach by taking readings of the Australian banking sector since the implementation of Basel II and comparing them with signals from macroeconomic indicators, financial statistics and external credit ratings. The IRB approach to capital adequacy for credit risk, which implements an asymptotic single risk factor (ASRF) model, plays an important role in protecting the Australian banking sector against insolvency.

Realisations of the single systematic risk factor, interpreted as describing the prevailing state of the Australian economy, are recovered from the ASRF model and compared with macroeconomic indicators. Similarly, estimates of distance-to-default, reflecting the capacity of the Australian banking sector to absorb credit losses, are recovered from the ASRF model and compared with financial statistics and external credit ratings. With the implementation of Basel II preceding the time when the effect of the financial crisis of 2007-2009 was most acutely felt, the authors measure the impact of the crisis on the Australian banking sector.

Measurements from the ASRF model find general agreement with signals from macroeconomic indicators, financial statistics and external credit ratings. This leads to a favourable assessment of the ASRF model for the purposes of capital allocation, performance attribution and risk monitoring. The empirical analysis used in this paper reveals that the recent crisis imparted a mild stress on the Australian banking sector.

Given the range of economic conditions, from mild contraction to moderate expansion, experienced in Australia since the implementation of Basel II, the authors cannot attest to the validity of the model specification of the IRB approach for its intended purpose of solvency assessment.

Access to internal bank data collected by the prudential regulator distinguishes this paper from other empirical studies on the IRB approach and financial crisis of 2007-2009. The authors are not the first to attempt to measure the effects of the recent crisis, but they believe that they are the first to do so using regulatory data.

The study focuses on drug safety regulation capture, reveals the inner mechanism and evolutionary characteristics of drug safety regulation capture and provides suggestions for effective regulation by pharmacovigilance.

The article introduces prospect theory into the game strategy analysis of drug safety events, constructs a benefit perception matrix based on psychological perception and analyzes the risk selection strategies and constraints on stable outcomes for both drug companies and drug regulatory authorities. Moreover, simulation was used to analyze the choice of results of different parameters on the game strategy.

The results found that the system does not have a stable equilibrium strategy under the role of cognitive psychology. The risk transfer coefficient, penalty cost, risk loss, regulatory benefit, regulatory success probability and risk discount coefficient directly acted in the direction of system evolution toward the system stable strategy. There is a critical effect on the behavioral strategies of drug manufacturers and drug supervisors, which exceeds a certain intensity before the behavioral strategies in repeated games tend to stabilize.

In this article, the authors constructed the perceived benefit matrix through the prospect value function to analyze the behavioral evolution game strategies of drug companies and FDA in the regulatory process, and to evaluate the evolution law of each factor.

The purpose of this paper is to test whether the simple exposure to different types of products can trigger different motivational orientation on consumers (prevention vs promotion), which in turn would match message frame and increase persuasion.

Three experiments test whether exposure to product categories can trigger consumer’s regulatory focus orientation. Participants in the pilot study are students, while participants in the two other studies are consumers.

A first pilot study randomly exposed participants to a product that could trigger promotion orientation (e.g. orange juice) versus a product that could trigger prevention orientation (e.g. sunscreen). Participants exposed to promotion (prevention) product suggest more promotion (prevention) strategies to reach a particular goal (preparing for their final exam). Study 2 shows that gain (vs loss)-framed messages using health appeals have better evaluations when featuring promotion (vs prevention) products. Study 3 generalizes these results using another sample and different product categories.

The paper uses some product categories and including other categories would increase external validity.

The practical implication is to help marketers to choose the right health argument to match the product category they are trying to sell.

Theoretically, the results from three studies show that exposure to products can temporarily trigger a consumer’s regulatory focus and that messages using health arguments that are consistent with this regulatory focus are more persuasive than those that are not. Managerially, these results help managers to adapt the right message in function of the product category.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

Refers to previous research to suggest that US commercial bank managers use discretion to “manage” regulatory capital and that accounting discretion can influence a bank’s investment opportunity set (IOS) and therefore its share price. Challenges the assumption that using accounting discretion to manipulate contracting variables will only result in a redistribution of wealth. Develops a mathematical model based on Feltham and Ohlson (1995) and uses it to explore the bank manager’s optimal investment in risky assets, the constraint on investment choice produced by minimum regulatory capital requirements and how accounting discretion can reduce this. Shows that regulatory requirements do constrain a bank’s IOS but that discretion (e.g. over loan loss provisions) can only mitigate this if dividend and financing policies depend on the discretionary components.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

In this paper, the authors examine the association between the banking regulatory regime and the quality of bank earnings. We further investigate whether the banking agency regulatory characteristics moderate the association between banking regulation and earnings quality.

Using panel data spanning 29 years over the period 1991 to 2019, the authors model bank earnings quality as a function of scores for banking regulation for 170 banks in the East African region using both the feasible generalized least squares (FGLS) and generalized method of moments (GMM) estimation methods.

The results, which are robust for endogeneity among other checks, reveal a positive impact of bank regulatory mechanisms on the quality of bank earnings. The authors further establish differential impact of specific regulatory mechanisms, with some contributing positively toward earnings management while others contributing negatively toward earnings management. The differential impacts of banking regulation on earnings quality are also manifested in the country-level analyses.

First, the study utilises a mix of bank-specific, country-specific as well as economy-specific variables in one dataset. Second, the authors utilise survey-based data using the World Bank's Bank Regulation and Supervision Surveys (BRSS) for the periods 1999 to 2019. The authors assume that the bank regulatory mechanisms in place pre-1999 are close to the mechanisms in place as per the 1999 BRSS. Given limitations in data availability, the authors are not able to control for banks engaging in multiple activities such as insurance, underwriting of securities, FinTechs, among others.

The results are useful in bridging the gap between theory and practice regarding the expected effect of strict banking regulations on the quality of earnings in Eastern African Banks. For the positive impact of banking regulation on bank earnings quality to be felt, the institutional, social and environmental specificities of the five selected countries need to be adequately developed and taken into consideration.

This study is perhaps the first to utilise a large dataset of commercial banks from countries in a developing region characterised by relatively lower enforcement and dynamism in the banking regulation. Further, in-depth studies on the association between banking regulation and earnings quality remain sparse.