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1 – 10 of over 54000Daniel Ofori-Sasu, Elikplimi Komla Agbloyor, Saint Kuttu and Joshua Yindenaba Abor
This study aims to investigate the coordinated impact of regulations on the predicted probability of a banking crisis in Africa.
Abstract
Purpose
This study aims to investigate the coordinated impact of regulations on the predicted probability of a banking crisis in Africa.
Design/methodology/approach
The study used the dynamic panel instrumental variable probit regression model of 52 African economies over the period 2006 to 2018.
Findings
The authors observe that banking crisis is persistent for few years but dissipates in the long run. The results show that board mechanism and ownership control are important in reducing the likelihood of banking crisis. The authors found a negative impact of regulatory capital and monetary policy on the predicted probability of a banking crisis while regulatory quality was not strong in reducing the likelihood of banking crisis. There was also evidence to support that regulatory capital and monetary policy augment the negative impact of board mechanism and ownership control on the predicted probability of a banking crisis.
Research limitations/implications
The limitation of the study is that it did not explore all measures of regulatory framework and how they impact banking crisis. However, it has an advantage of using alternative measures of regulations in a banking crisis probability model. Therefore, future studies should include other macro-prudential regulations, regulatory environments and supervision and observe how they are coordinated to reduce possible crisis in a robust methodological framework.
Practical implications
The research has policy implications for monetary authorities and policymakers to set coordinated regulations through internal banking mechanisms that are relevant in sustaining banking system stability goals. Countries in Africa should strengthen their quality of regulation in such a way that it can play a strong and complementary role to a robust internal control mechanisms, so as to maintain stability in the banking system. In general, regulators and policymakers should design greater coordination of external and internal regulations through a single regulatory framework and a common resolution mechanism that make the banking system more robust in curbing possible crisis.
Social implications
The policy implication of the study is to build banking confidence in the society.
Originality/value
This study analyses the interactions of different components of internal and external regulatory framework in helping to reduce the probability of a banking crisis in Africa.
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Government agencies have endeavored, with limited success, to improve the methodological consistency of regulatory benefit–cost analysis (BCA). This paper recommends that an…
Abstract
Government agencies have endeavored, with limited success, to improve the methodological consistency of regulatory benefit–cost analysis (BCA). This paper recommends that an independent cohort of economists, policy analysts and legal scholars take on that task. Independently established “best practices” would have four positive effects: (1) they would render BCAs more regular in form and format and, thus, more readily assessable and replicable by social scientists; (2) improved consistency might marginally reduce political opposition to BCA as a policy tool; (3) politically-motivated, inter-agency methodological disputes might be avoided; and (4) an independent set of “best practices” would provide a sound, independent basis for judicial review of agency BCAs.
Nadine Gatzert and Thomas Kosub
Policy or regulatory risks represent one of the major barriers for renewable energy investments, especially against the background of several retrospective reductions of support…
Abstract
Purpose
Policy or regulatory risks represent one of the major barriers for renewable energy investments, especially against the background of several retrospective reductions of support schemes in Europe. This paper aims to contribute to the literature by offering a categorization of major risk drivers and determinants of policy risk associated with renewable energy projects in developed countries.
Design/methodology/approach
Based on a narrative (traditional) review of the academic literature and supported by industry studies regarding cases of support scheme cuts in Europe (from the end of 2010 until the end of 2013), the paper derives determinants of policy risks of renewable energy investments.
Findings
As a main result, the paper offers a concise categorization of major risk drivers of policy and regulatory risks associated with renewable energy investments in developed countries along with potential indicators.
Practical implications
The derived categorization of major risk drivers and the set of indicators are of high relevance for risk management and risk assessment of renewable energy investments, where understanding the underlying risk drivers is vital. The findings can thus be applied when establishing a sound risk management for renewable energy investments.
Originality/value
The paper helps (potential) investors, policymakers and regulators to assess policy risks associated with renewable energy investments.
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Zihao Jiang, Jiarong Shi and Zhiying Liu
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Originality/value
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.
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Meige Song, Longwei Wang, Li Wang and Wan Chen
Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical…
Abstract
Purpose
Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical innovation and how regulatory uncertainty and technological uncertainty affect firms’ choice of PCPA as well as its effectiveness on radical innovation.
Design/methodology/approach
Hierarchical regression analyses were conducted to test the research model based on survey data collected from 227 Chinese manufacturing firms.
Findings
The results indicate that PCPA has a significantly positive effect on radical innovation. Both regulatory and technological uncertainty are positively related to PCPA. In addition, regulatory uncertainty strengthens the positive relationship between PCPA and radical innovation, whereas technological uncertainty weakens this relationship.
Practical implications
This study reveals that firm managers should be mindful that PCPA is beneficial to firms’ radical innovation activities in China. Additionally, although regulatory uncertainty and technological uncertainty can drive firms to engage in PCPA to cope with the ambiguity they experienced, managers should also be alert to the complicated role of environment forces in enlarging or discounting the positive effect of PCPA on radical innovation.
Originality/value
The findings offer fresh insights into the use of PCPA to manage the uncertain external environment when pursuing radical innovation activities in China.
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Brajesh Mishra and Avanish Kumar
Globally, the governance has shifted from positivist to the regulatory-centric approach, necessitating accurate contouring of regulatory governance framework. The study proposes a…
Abstract
Purpose
Globally, the governance has shifted from positivist to the regulatory-centric approach, necessitating accurate contouring of regulatory governance framework. The study proposes a novel approach to unravel the regulatory governance framework in the context of the Indian electronics industry – extendable to other sectors in India and other emerging economies.
Design/methodology/approach
The research objective has been operationalized through document analysis and thematic analysis of semi-structured interview transcripts in three steps: (1) arrive at parameters of the regulatory governance framework, (2) identify instruments against each parameter and (3) characterize parameters in terms of dominant instruments and their underlying modalities. The authors have adopted a set of 6 Cs modalities (control, communications, competition, consensus, code and collaboration) and regulatory space theory to analyze existing modalities mix in the dominant instruments.
Findings
In summary, the study has (1) identified eight macro and twenty micro regulatory governance parameters, (2) mapped regulatory governance parameters with instruments and institutions (3) revealed the top two dominant modalities for each regulatory governance parameter.
Practical implications
The existing modality characteristics of regulatory governance parameters can be used by manufacturers, investors and other stakeholders to make a realistic assessment of regulatory governance and reduce regulatory risk and regulatory burden.
Originality/value
The multidimensional use of parameters, instruments and modalities broadens the understanding of the existing regulatory governance framework and may assist the regulators in optimizing it to meet market requirements.
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Ravinder Kumar Verma, P. Vigneswara Ilavarasan and Arpan Kumar Kar
Digital platforms (DP) are transforming service delivery and affecting associated actors. The position of DPs is impacted by the regulations. However, emerging economies often…
Abstract
Purpose
Digital platforms (DP) are transforming service delivery and affecting associated actors. The position of DPs is impacted by the regulations. However, emerging economies often lack the regulatory environment to support DPs. This paper aims to explore the regulatory developments for DPs using the multi-level perspective (MLP).
Design/methodology/approach
The paper explores regulatory developments of ride-hailing platforms (RHPs) in India and their impacts. This study uses qualitative interview data from platform representatives, bureaucrats, drivers, experts and policy documents.
Findings
Regulatory developments in the ride-hailing space cannot be explained as a linear progression. The static institutional assumptions, especially without considering the multi-actors and multi-levels in policy formulation, do not serve associated actors adequately in different times and spaces. The RHPs regulations must consider the perspective of new RHPs and the support available to them. Non-consideration of short- and long-term perspectives of RHPs may have unequal outcomes for established and new RHPs.
Research limitations/implications
This research has implications for the digital economy regulatory ecosystem, DPs and implications for policymakers. Though the data from legal documents and qualitative interviews is adequate, transactional data from the RHPs and interviews with judiciary actors would have been insightful.
Practical implications
The study provides insights into critical aspects of regulatory evolution, governance and regulatory impact on the DPs’ ecosystem. The right balance of regulations according to the business models of DPs allows DPs to have space for growth and development of the platform ecosystem.
Social implications
This research shows the interactions in the digital space and how regulations can impact various actors. A balanced policy can guide the paths of DPs to have equal opportunities.
Originality/value
DP regulations have a complex structure. The paper studies regulatory developments of DPs and the impacts of governance and controls on associated players and platform ecosystems.
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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…
Abstract
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.
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Brajesh Mishra and Avanish Kumar
The regulatory framework may be construed as the existence of supporting infrastructure that assists in control, direction/implementation of a proposed course of law, rule or…
Abstract
Purpose
The regulatory framework may be construed as the existence of supporting infrastructure that assists in control, direction/implementation of a proposed course of law, rule or action. The regulatory order is now more formalized, expert-driven, transparent, independent and pervasive across countries and sectors. As a result, regulatory reforms enable markets to function efficiently by providing a supportive environment for increased investment, private sector growth and market-led economic growth. This study aims to review previous literature for understanding the impact of sectoral regulatory framework on sectoral performance.
Design/methodology/approach
This paper has adopted a systematic literature review to understand dynamics between the sectoral regulatory framework and sectoral performance. While seven multidisciplinary databases were used to identify 51 research articles, the bibliometric research profiling was executed to broaden academic research.
Findings
The results are organized into three broad categories: research context, research area and research methods. The identified articles exhibited association with 12 distinct sectors/industries, with maximum articles belonging to telecom, energy and finance industries. The study has focused on evolution of regulatory studies, impact of regulatory framework on sectoral performance and commonality in regulatory studies. Among the 15 distinct research contexts identified in this systematic literature review (SLR), the highest mapping was registered (from 23 articles) by the research context “impact of regulatory framework on the sector–institutions, infrastructure and performance indicators.”
Practical implications
Public administration researchers are increasingly using mixed methods research approaches to add diverse and novel perspectives on wicked problems. The qualitative approach (grounded theory, action research, phenomenology and participant observations) is appropriate for understanding the native viewpoints of regulatory practitioners and reducing the gap between rigor and relevance.
Originality/value
The study addresses lack of systematic review of articles covering the impact of regulatory framework on sectoral performance encompassing all sectors by, inter alia, collating important bibliometric profiles of the identified articles.
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