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1 – 10 of over 1000Anup Kumar Saha and Imran Khan
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory…
Abstract
Purpose
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory influences.
Design/methodology/approach
This study analyzes longitudinal data (2014–2021) from environmentally sensitive firms listed on the Dhaka Stock Exchange, using a disclosure index developed within the Global Reporting Initiative framework. The authors use a neo-institutional theoretical lens to explore regulatory influences on CCD through board characteristics. This study uses hand-collected data from annual reports owing to the absence of an established database.
Findings
The results indicate that a larger board size, the presence of foreign directors and the existence of an audit committee correlate with higher levels of CCD disclosure. Conversely, a higher frequency of board meetings is associated with lower CCD disclosure levels. This study also observed an increase in CCD following the implementation of corporate governance guidelines by the Bangladesh Securities and Exchange Commission, albeit with a relatively low number of firms making these disclosures.
Research limitations/implications
This study contributes to the climate change reporting literature by providing empirical evidence of regulatory influences on CCD through board characteristics in an emerging economy. However, the findings may not be universally applicable, considering the study’s focus on Bangladeshi listed firms.
Practical implications
This study suggests growing pressures for diverse stakeholders, including researchers and regulatory bodies, to integrate climate change disclosure into routine activities. This study offers a valuable framework and insights for various stakeholders.
Social implications
By emphasizing the influence of good governance and sustainability practices, this study contributes to stakeholders’ understanding, aiming to contribute to a better world.
Originality/value
This study stands out by uniquely positioning itself in the climate change reporting literature, shedding light on regulatory influences on CCD through board characteristics in the context of an emerging economy.
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Cryptocurrency arose, and grew in popularity, following the financial crisis of 2008 built upon a promise of decentralizing money and payments. An examination of the history of…
Abstract
Cryptocurrency arose, and grew in popularity, following the financial crisis of 2008 built upon a promise of decentralizing money and payments. An examination of the history of money and banking in the United States demonstrates that stable money benefits from strict controls and commitments by a centralized government through chartering restrictions and a broad safety net, rather than decentralization. In addition, financial crises happen when the government allows money creation to occur outside of official channels. The US central bank is then forced into a policy of supporting a range of money-like assets in order to maintain a grip on monetary policy and some semblance of financial stability.
In addition, this chapter argues that cryptocurrency as a form of shadow money shares many of the problematic attributes of both the privately issued bank notes that created instability during the “free banking” era and the “shadow banking” activities that contributed to the 2008 crisis. In this sense, rather than being a novel and disruptive idea, cryptocurrency replicates many of the systemically destabilizing aspects of privately issued money and money-like instruments.
This chapter proposes that, rather than allowing a new, digital “free banking” era to emerge, there are better alternatives. Specifically, it argues that the Federal Reserve (Fed) should use its tools to improve public payment systems, enact robust utility-like regulations for private digital currencies and limit the likelihood of bubbles using prudential measures.
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Harsimran Sandhu and Soumya Guha Deb
This study estimates the impact of changes in the mutual fund distributor incentive structure on distributor-advised mutual fund flows. The authors employ two recent major policy…
Abstract
Purpose
This study estimates the impact of changes in the mutual fund distributor incentive structure on distributor-advised mutual fund flows. The authors employ two recent major policy interventions by the Indian self-regulatory authority and the financial market regulator – one partial ban and another complete ban on upfront commissions – paid to mutual fund distributors on distributor-advised mutual fund flows.
Design/methodology/approach
The authors use novel distributor-level data across the 198 largest distributors in India between 2013 and 2020 and a series of pooled panel random-effect generalized least squares models with robust standard errors to explore the effect of changes of distributor commissions on distributor assets-under-management (AUM), gross sales, commissions and changes (%) in the number of investors in alternate investment avenues like portfolio management services (PMS).
Findings
Changes in the incentive structure have a significant negative effect on mutual fund flows at an aggregate level and within MF distributor categories. A significant diversion of investor funds toward PMS is noted, which paid higher upfront commissions to distributors during the same period.
Practical implications
The authors posit that these two developments are not mutually independent and that both fall out of the aforementioned policy changes by Securities and Exchange Board of India and Association of Mutual Funds in India. The study findings have implications for all stakeholders in the Indian mutual fund industry and, by extension, for Indian and global alternative investment avenues.
Originality/value
This study is the first to explore the effects of these two major policy interventions by regulators on mutual fund flows in India.
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The rise in business activities coupled with free trade liberalisation across countries has entailed an increase in securities transaction as well as insider trading (IT). In…
Abstract
Purpose
The rise in business activities coupled with free trade liberalisation across countries has entailed an increase in securities transaction as well as insider trading (IT). In fact, IT is characterised by the influence and usage of some prior knowledge concerning sensitive information of a corporate body which results in a financial benefit to the insider trader. The practice of IT is not only unethical but also illegal and this statement is witnessed by the mushrooming of laws across the globe categorising IT as an offence. However, the type of punishment varies in different countries depending on various factors. Consequently, the purpose of this paper is to assess the adequacy and efficiency of IT laws in the context of a developing country being Mauritius.
Design/methodology/approach
To achieve the research objective, the Mauritian laws on IT were compared with the corresponding laws of some developed countries like the USA and the UK. As such, a qualitative research method was adopted. In particular, the black letter approach was used to examine the relevant laws of Mauritius, UK and USA on IT. A comparative analysis was conducted concerning IT laws for each country with the view of suggesting recommendations for Mauritian stakeholders to adopt to enhance the existing legal and regulatory framework on IT.
Findings
It was found that Mauritian IT laws are largely inspired from both the US and UK corresponding legislation. However, Mauritian laws need to be strengthened by imposing some more severe penalties in terms of fines and terms of imprisonment like the USA has established. The Mauritian Financial Services Commission as the regulator also needs to play a more active role in disseminating particularities of IT laws, offences and penalties to the civil society at large.
Originality/value
At present, this study will be among the first academic writings on the efficiency of IT laws in Mauritius and also, because existing literature is quite scarce on assessing the adequacy of IT legislation in developing countries, this research aims at filling in the gap in literature. The study is carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.
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Alam Asadov, Ikhtiyorjon Turaboev and Ramazan Yildirim
Despite its potential as an emerging market for Islamic financial services, Uzbekistan has lagged in legislative support. This study aims to evaluate the feasibility of…
Abstract
Purpose
Despite its potential as an emerging market for Islamic financial services, Uzbekistan has lagged in legislative support. This study aims to evaluate the feasibility of introducing an Islamic capital market (ICM) in Uzbekistan, preceding a broader industry establishment.
Design/methodology/approach
The authors begin by assessing Islamic finance literacy and the potential demand for ICMs in Uzbekistan. The authors then scrutinize Uzbekistan’s capital market legislation and its readiness. This analysis uses primary data, including surveys and interviews, and secondary data from literature and financial legislation.
Findings
This study highlights a significant demand for ICMs, despite low Islamic finance awareness in Uzbekistan. Presently, Uzbekistan’s capital market development is lacking, with regulations not yet suitable for ICMs. As a result, legal and operational enhancements are needed.
Practical implications
The authors provide essential policy recommendations for authorities and practitioners to facilitate the effective launch of ICMs and enhance Uzbekistan’s capital market stature.
Originality/value
To the best of the authors’ knowledge, this is the first study offering an in-depth analysis of the potential and feasibility of ICMs in Uzbekistan.
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The Rajapaksa regime over the 2005–2022 period promoted a national-popular project based on a militarised Sinhala-Buddhist nationalism promoting a market-driven rentier economy…
Abstract
The Rajapaksa regime over the 2005–2022 period promoted a national-popular project based on a militarised Sinhala-Buddhist nationalism promoting a market-driven rentier economy. It illustrated a form of patrimonial capitalism undermining public accountability and the efficacy of the state bureaucracy. This popular-national project was dependent on strengthening ties with China while distancing relations with India and the Global North (USA and the EU). The ways in which the external relations were coordinated reinforced discrimination against Tamil and Muslim communities, while disregarding their demands for justice and reparations. The increasing integration of the economy with financial markets, driven by the Central Bank, amplified the commercialisation of the state, restraining public revenues and state oversight. Meanwhile, the militarisation of the state involved the commercialisation of the military, opaque military budgets and violent repression of protests. The Rajapaksa regime, which enabled a minority-privileged (leisure) class to culturally flourish in regulated safe spaces, also instigated multiple protests from below demanding democracy as well as justice.
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Jennifer Brodmann and Omer Unsal
The authors examine the impact of employee litigation on Securities Action Lawsuits. The authors study whether frequently sued firms are more likely to be investigated by…
Abstract
Purpose
The authors examine the impact of employee litigation on Securities Action Lawsuits. The authors study whether frequently sued firms are more likely to be investigated by Securities Exchange Commission (SEC). The authors study how labor relations are crucial to corporate governance.
Design/methodology/approach
The authors use hand-collected datasets of employee violations, misconducts and lawsuits and test whether bad employee treatment increases the likelihood of SEC probe. The authors' methodology includes panel fixed effects, as well as alternative measures of employee mistreatment and SEC case.
Findings
The authors find that with each increase in employee dispute increases the likelihood of the firm being investigated by the SEC. The authors find that geographically dispersed firms are more likely to be investigated by the SEC when facing employee disputes and that more labor union coverage and a higher unemployment rate triggers more employee allegations and labor-related lawsuits.
Originality/value
The authors' study is the first to investigate how employee relations affect firms involving federal investigation. The authors aim to contribute to the literature by studying (i) the relation between employee mistreatment and legal challenges, (ii) how firm characteristics affect the path from employee disputes to securities class actions and (iii) the impact of employee mistreatment on the corporate governance.
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The political crisis related to two main factors internal to the public revenue system, namely financial markets and the commercialisation of the state, and three related external…
Abstract
The political crisis related to two main factors internal to the public revenue system, namely financial markets and the commercialisation of the state, and three related external factors, pertaining to the pandemic, popular discontent and inequality. The emphasis on financial markets since the mid-1990s expanded the commercialisation of the state while neglecting public accountability and government oversight. The efforts to shore up public finances through the tax system is increasingly undermined by the global tax architecture, enabling financial secrecy and illicit financial flows.
The pandemic revealed the significance of women’s work, paid as well as unpaid care work. The pandemic also exposed the limitations of a domestic economy, based on export-oriented development, over-reliant on tourism and remittances from migrant workers. Combining with the on-going dengue epidemic, the pandemic highlighted the urgency of climate adaptation. Meanwhile, the popular discontent conveyed an accumulation of grievances linked with cultural discrimination, political misrepresentation as well as economic maldistribution. The participation of new middle-class segments in the protests foregrounded new tendencies significant for strengthening the labour movement as well as working-class parties in their demands for redistribution, reframing democracy as well as citizenship.
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Deborah Goodner Combs and Lucas M. Dille
The case uses primary source documents, such as the court cases brought forth by the SEC and US District Attorney, for the specifics about the fraud and secondary sources for…
Abstract
Research methodology
The case uses primary source documents, such as the court cases brought forth by the SEC and US District Attorney, for the specifics about the fraud and secondary sources for further background information about the town and industry. The individuals in the case are not disguised. The authors have no connection to the case.
Case overview/synopsis
Thomas Laws was a CPA, a registered investment advisor and a real estate broker. Laws made a poor business investment. Instead of taking the financial hit, Laws orchestrated a complex Ponzi scheme using clients from his CPA practice and embezzling money from an employer, Santa Fe Gold Corporation. Laws’ scheme continued until his employer confronted him about missing funds. Frank Mueller, the CFO of Santa Fe, did not exercise the due diligence necessary until it was too late. Rest’s framework for ethical decision making is used to frame the ethical decisions Mueller can make. The case examines the conflict-of-interest guidance issued by the American Institute of Certified Public Accountants (AICPA) and allows students to examine the due diligence and controls needed by employers and prospective investors.
Complexity academic level
This case is designed for undergraduate accounting students taking Intermediate Accounting I, ACCT 0312 at the authors’ institution, typically junior-level students. It would be appropriate whenever you introduce the AICPA Code of Professional Conduct during an ethics discussion.
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