Business Regulation Research Articles

The Problem of Defining Insurance of Business and Financial Risks in Russian Legislation

The development of Russian insurance legislation is associated with the presence of certain differences in the legal regulation of the insurance business; in particular, there is the problem of classifying certain types of insurance: business insurance and financial risk insurance. The purpose of the study is to consider sequentially the main stages of the development of insurance legislation in terms of insurance of business and financial risks, which would allow us to identify, on the one hand, the reasons for changes in insurance legislation, and, on the other hand, to form the authors’ own standpoints on this issue and draw appropriate conclusions. The article examines the changes made to national insurance legislation over the course of a quarter of a century, and identifies contradictions and differences in the definitions of insurance of business and financial risks. The authors have drawn the conclusion that there is a global cause of the observed phenomena, which is the absence in our country of a single codified normative legal act regulating insurance relationships — the Insurance Code. According to the authors, the development and adoption of such a systematic set of insurance legislation would be the most important step towards solving the problem of classifying types of insurance, in particular business risk insurance and financial risk insurance.

Automated License Plate Recognition for Non-Helmeted Motor Riders Using YOLO and OCR

One of the leading causes of serious injuries in motorcycle accidents is the failure to wear a helmet, pressing the need for effective measures to encourage riders to use helmets. To stop these frequent violations of business regulations, regular observation is necessary. The proposed system is for detecting traffic violations in India related to riding motorcycles without helmets. The system utilizes deep learning-based object detection using YOLO and OCR techniques to automatically detect non-helmet riders and extract license plate numbers. The proposed system aims to improve efficiency and accuracy in detecting violations by automating the process and reducing the need for manpower. The system involves three levels of object detection: person and motorcycle/moped, helmet, and license plate. OCR is used to extract the license plate number, and all techniques are subject to predefined conditions and constraints. The system is designed to operate on video input to ensure high-speed execution, and it intends to offer a complete solution for both detection of helmet and extracting the license plate number.

IT SECTOR TAXATION IN UKRAINE: FEATURES AND CURRENT TRENDS

IT SECTOR TAXATION IN UKRAINE: FEATURES AND CURRENT TRENDS

Unlocking Pathways to Employment: Understanding Factors Influencing Youth Employability in Tanzania's Informal Sector

This study investigates the determinants of employability in the informal sector among youth in Tanzania using data from the Integrated Labor Force Survey (ILFS) conducted in 2020–2021, utilizing probity regression analysis. The model, statistically significant at a 1% level, indicates that variables including sex, capital access, income tax, social security, technical and computer skills, literacy and numeracy skills, physical skills, business registration, ownership, age, marital status, readiness for work, and education level collectively account for 4.4% of variations in youth employability. Positive impacts on employability are associated with capital access, numeracy and computer skills, paid employment, and level of education. The negative impacts are being male, income tax, social security coverage, literacy skills, physical skills, registered and owned businesses, married individuals, age, and readiness for work. The study suggests that attending school and possessing computer skills increases the likelihood of informal sector employment, while being male, subjected to income tax, covered by social security, having literacy skills, physical skills, registered or owned businesses, being married, aging, and being ready for work decrease the probability. The findings emphasize the importance of targeted interventions to enhance employability for youth in the informal sector, with considerations for gender, skills development, and business practices. The research recommended that enhancing access to education, programs in skill development, and improving numeracy and computer skills for youth will foster employability.

ISU UNDANG-UNDANG PENGINAPAN KEDIAMAN JANGKA PENDEK (STRA) DI MALAYSIA: PENGAJARAN DARIPADA NEGARA-NEGARA ASING

Activities referred to as Short-Term Rental Accommodations (STRA) include operating short-term rentals and listing owner-occupied accommodations on digital platforms such as Airbnb, Agoda, iBilik and Booking.com, among others. However, this STRA service has created various legal issues such as licensing, business registration, security issues and neighborhood disturbance. Currently, there is no specific law regarding the control of STRA, especially Airbnb in Malaysia. Thus, qualitative methods are used in this study using document analysis, especially related laws in Malaysia and in some selected countries. It is recommended that a specific legislation needs to be established to regulate STRA services for the benefit of property owners, tourists and the general public.

The impact of local government debt on entrepreneurship: Evidence from a quasi-natural experiment of local debt governance reform

We investigate the impact of China's New Budget Law of 2015 on local entrepreneurship. The legislation introduces exogenous limitations on local governments' debt-financing mechanisms. Our findings suggest that rates of new business registration experience an uptick following this change in debt management, which implies the reform can bolster local entrepreneurial ventures. This effect is more pronounced for firms operating in cities characterized by poor financial infrastructure, elevated fiscal stress, limited market openness, or inadequate legal frameworks. Supplementary analysis reveals that enhanced access to broader financing options, alleviated local tax and non-tax obligations, optimized urban land use, and reduced firms' perceptions of economic uncertainty serve as four mechanisms underlying our findings. Collectively, this governance modification mitigates the crowding-out effect exerted by local government debt on private-sector activity, leading to an increase in local entrepreneurship.

A register-based statistical system in New Zealand: Progress and opportunities

This paper provides an overview of progress and opportunities in Stats NZ’s journey towards a register-based statistical system. It sets out to provide a status update of the components of the system at Stats NZ – Statistical Business Register (SBR), Statistical Person Register (SPR), and Statistical Location Register (SLR). The drivers for change and changes to the authorising environment are described, including the prioritisation of a register-based statistical system through Stats NZ’s strategic priorities and the updates to the legislative context through the Data and Statistics Act 2022. The current state of each of the base registers is briefly described and detail is provided on the evolution of a SPR and concept development of a property-centric location register.

Small and Medium Enterprises Amidst the Pandemic and Reopening: Digital Edge and Transformation

Using administrative universal business registration data as well as primary offline and online surveys of small businesses (including unregistered self-employments) in China, we examine (i) whether digitization helps small and medium enterprises (SMEs) better cope with the COVID-19 pandemic and (ii) whether the pandemic has spurred digital technology adoption. We document significant economic benefits of digitization in increasing SMEs’ resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. After the January 2020 lockdown, firm entries exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced immediate drop and a quicker rebound. Moreover, the pandemic has accelerated the digital transformation of existing firms and the industry in multiple dimensions (e.g., altering operation scope to include e-commerce, allowing remote work, and adopting electronic information systems). The effect persists more than one year after reopening, and it is more pronounced for certain sectors, firms in industrial clusters, and areas with more digital inclusion but less financial efficiency, constituting initial evidence for the long-term impact of the pandemic and the supposedly transitory mitigation policies. This paper was accepted by David Simchi-Levi, finance. Funding: This research was funded in part by the China Natural Science Foundation [Grants 71874008, 71441008, 71873121, and 72192844], Peking University, the Kauffman Foundation [Junior Fellowship], and the FinTech Chair at Paris–Dauphine University–Université Paris Sciences et Lettres. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.02424 .

Digital financial inclusion in micro enterprises: understanding the determinants and impact on ease of doing business from World Bank survey

The study aims to identify the determinants of digital financial inclusion (DFI) and its role in micro enterprises’ ease of doing business. The study is based on the World Bank’s Enterprises Survey of Micro Firms (ESM) 2022 data of 998 micro-enterprises. The variables that measure access and use of digital finance are extracted from the data. Two sets of independent variables, namely digital resource capability and firms and owners’ characteristics, are taken as explanatory variables of digital financial inclusion. Analysis of variance (ANOVA) has been applied to analyze the difference in perceived business obstacles across the micro-enterprises with and without access and use of digital finance. Further, a logistic regression model is developed to analyze the determinants of DFI. The findings of the study reveal that digital financial inclusion helps to face obstacles in business regulation and handle market externalities. Further, estimates of both the logistic regression model and marginal effects suggest that access to the internet, education, and owner experience are instrumental in digital financial inclusion among micro-enterprises. This study may be helpful for various stakeholders, such as the government, promoters of entrepreneurship, banks, and international organizations working in digital financial inclusion. The originality of the study lies in exploring the determinants of DFI among micro-enterprises, which are still unexplored in the case of India using extensive and specific micro enterprise’s data collected by the World Bank.

Accounting conservatism as a strategy to deter entry: Evidence from China's Negative List System

This paper examines the market force and real effect of accounting conservatism from the perspective of an entry game. Using China's Negative List System (NLS), a nationwide deregulation policy resulting in a significant increase in new business registrations of new entrants, we find that incumbents affected by the NLS, especially those at competitive frontiers within an industry, increasingly adopt accounting conservatism in reaction to the NLS-induced market changes. Additional tests indicate that the underlying mechanism lies in the imposing threat of entry, effectively ruling out the alternative explanations related to corporate governance. Moreover, we observe that industries exhibiting a higher inclination towards conservative accounting tend to be less susceptible to new entrants. This finding suggests that the adoption of accounting conservatism could be interpreted as a tactical measure to deter new entrants.

The Recognition, Measurement and Disclosure of Biological Assets of Selected Agritourism Farms in Region IV-A, Philippines

The accounting standard for agriculture was introduced to harmonize the accounting procedures of entities engaged in agricultural production. This accounting standard for agriculture specifies the accounting treatment for biological assets and their biological transformation as well as how it must be reflected in the financial statement. However, there has been little awareness of applying the standard, especially in the agritourism industry. Agritourism is a young industry in the Philippines and is seen as a profitable revenue-generating investment. Therefore, education on financial management and recordkeeping must be given importance. This study assessed the accounting practices of selected agritourism farms in Region IV-A, Philippines, in accordance with the Accounting Standard for Agriculture, 41. The International Accounting Standard 41 and Philippine Accounting Standard 41 cover the recognition and measurements of biological assets and the presentation and disclosure of biological transformation. Interviews were conducted with 17 farms and their financial records were reviewed. The results show that most farms do not recognize and measure their biological assets per accounting standards. The recognition and measurement of biological assets are based on their current practices and are not influenced by the provision of the standards. Moreover, the type of business registration, i.e., corporation or sole proprietorship, affects the accounting practice of the farm. Their records do not accurately reflect the presentation and disclosure of biological assets and biological transformation. Thus, it is recommended that training, seminars, and workshops on IAS/PAS 41 must be conducted, and an application guideline must be developed to improve the accounting practices of agritourism farms and their compliance with the accounting standard.

From Pixels to Taxes: A Comparative Study of Digital Economy Tax Policies in the Philippines to Selected ASEAN Member States

This research focuses into the proposed Digital Economy Taxation Act, scrutinizing its provisions aimed at bolstering income tax and value-added tax (VAT) compliance. The bill mandates network intermediaries and ecommerce platforms, including those without a physical presence in the country, to act as withholding agents, a move that has sparked debate over its implementation challenges, such as the requirement for non-resident entities to establish a representative office within the Philippines. Utilizing qualitative method through documentary analysis, this study compares the Philippine approach to digital taxation with initiatives undertaken by other ASEAN countries, analyzing literature, articles, reports, blogs, and media releases to gain insights to the regional tax landscape. The paper seeks to uncover the nuances of each country's digital tax policies, focusing on the variance in tax rates and the thresholds set for business registration. The analysis extends to the potential economic impacts of the Digital Economy Taxation Act on the Philippines, considering both the opportunities and complexities posed by its enforcement. The paper underscores the imperative nature of digital taxation in an era increasingly reliant on digital transactions while highlighting the challenges associated with tax collection from non-resident digital service providers. The research provides a comprehensive understanding of the ASEAN digital taxation framework and offer insights into establishing unambiguous rules that ensure effective tax collection without hindering the growth of the burgeoning digital economy.

On the Validity of Using Webpage Texts to Identify the Target Population of a Survey: An Application to Detect Online Platforms

A statistical classification model was developed to identify online platform organizations based on the texts on their website. The model was subsequently used to identify all (potential) platform organizations with a website included in the Dutch Business Register. The empirical outcomes of the statistical model were plausible in terms of the words and the bimodal distribution of fitted probabilities, but the results indicated an overestimation of the number of platform organizations. Next, the external validity of the outcomes was investigated through a survey of the organizations that were identified as a platform organization by the statistical classification model. The response by the organizations to the survey confirmed a substantial number of type-I errors. Furthermore, it revealed a positive association between the fitted probability of the text-based classification model and the organization’s response to the survey question on being an online platform organization. The survey results indicated that the text-based classification model can be used to obtain a subpopulation of potential platform organizations from the entire population of businesses with a website. This subpopulation may form a good starting point to study platform organizations in more detail.

The ethics of voluntary ethics standards

AbstractMany nongovernmental forms of business regulation aim at reducing ethical violations in commerce. We argue that such nongovernmental ethics standards, while often laudable, raise their own ethical challenges. In particular, when such standards place burdens upon vulnerable market participants (often, though not always, SMEs), they do so without the backing of traditional legitimate political authority. We argue that this constitutes a structural analogy to wars of humanitarian intervention. Moreover, we show that, while some harms imposed by such standards are desirable, others are best thought of as a form of collateral damage. We thus look at the well‐developed literature on just war theory for inspiration and find that the principles of jus ad bellum and jus in bello contain many insights that can be fruitfully adapted to the case of nongovernmental standard‐setting. Consequently, we propose the Ius ad Normam—a set of principles that should guide would‐be standard‐setters in assessing whether imposing those burdens is ethically justifiable in particular cases. We also discuss how powerful multinational businesses often act simultaneously as standard‐takers and standard‐setters and explore the normative implications of this dual role.

Concepts of “zoo” and “zookeeping” in Russian and foreign legislation

The article is devoted to the issues related to the legal regulation of zoos and zoo business. The article presents a selection of definitions of the concepts of “zoo” and “zookeeping”, established in the laws of the Russia and of some foreign states.

Impact of fintech readiness, natural resources, and business freedom on economic growth in the CAREC region

The CAREC region, particularly Central Asian economies, traditionally rely on mineral resources. However, there is an increasing awareness of the significant potential and growing interest in financial technology, and supportive business regulations. Hence, this study investigates the pivotal role of fintech, natural resources, and economic freedom in shaping the economic growth trajectory of the CAREC region between 2000 and 2020. So far, no publicly available fintech index exists for this region. This study constructed a comprehensive index considering digitalization and financial development to analyse fintech readiness. It applies fixed and random effect models to examine the relationships between these variables. To account for non-linearity stemming from structural shifts and global financial shocks, it employs method of moment quantile regression (MMQR). The findings from the fixed effect models substantiate the positive impact of fintech, economic freedom, and natural resources on economic growth, albeit with varying degrees of marginal influence. A one-percentage-point improvement in fintech, economic freedom, and natural resources yields economic growth boosts by 0.102%, 0.903%, and 0.176%, respectively. Parallel results emerge from the random effect models with differing magnitudes and parameter significance levels. The MMQR outcomes consistently highlight the potency of fintech and economic freedom, with their impact being more pronounced at higher and lower quantiles of economic growth, respectively. This suggests that countries in the CAREC region experiencing higher growth levels stand to gain more from Fintech adoption, while those with lower growth levels can reap greater benefits from enhanced economic freedom. This study sheds light on the multifaceted interplay of these factors, offering valuable insights for policymakers and stakeholders in the CAREC region.

УПРАВЛІННЯ ГОТЕЛЬНИМИ МЕРЕЖАМИ В УМОВАХ ВОЄННОГО СТАНУ В УКРАЇНІ

Due to the ongoing Russian-Ukrainian war and martial law in Ukraine, it is advisable to expand the scope of study of problematic issues related to the management of hotel chains under martial law in Ukraine by examining the current state of the industry and the experience of hospitality industry enterprises gained during this time, which has led to the relevance of the chosen topic for this scientific article. The article is aimed at analyzing the mechanism of functioning of international and national hotel chains in Ukraine and the peculiarities of management of hotel chains under martial law. The object of research is the management system of hotel chains under martial law in Ukraine. The subject of the study is a set of theoretical and methodological foundations for determining the essence and features of the hotel chain management system under martial law in Ukraine. The scientific novelty of the study is to summarize the arguments regarding the organisation and functioning of hotel chains in the current business environment and to systematize the scientific theoretical, methodological and applied foundations for determining and taking into account the peculiarities of hotel chain management during martial law in Ukraine. In order to reveal the subject of scientific research, the article uses such methods as observation and comparison (characteristic features and forms of functioning of hotel chains in the hospitality industry are determined), analysis and synthesis (the essential indicators of success in Ukraine and the world of certain hotel chains, management methods in crisis conditions are clarified), methods of statistics (recording the dynamics of development of hotel chains), methods of visualisation (graphical and tabular forms), classification (in terms of types, forms and factors of influence on the functioning of hotel chains), visualisation methods (graphical and tabular forms). The article summarises the arguments regarding the importance of state regulation in the hotel business and international and national requirements for the provision of hotel services under conditions of risk. The scientific theoretical, methodological, analytical and applied principles of the hotel business in the system of the legal field for compliance with the standards of functioning of international and national hotel chains under martial law are systematised. The results of the study can be useful for employees of the tourism and hospitality industry; researchers, teachers, students of higher education institutions, who study, in particular, the specialities "Tourism" and "Hotel and restaurant business". Keywords: martial law, hotel industry, hotel chains, hotel services, hospitality industry, hotel management, hospitality market, Ukraine, hotel management.

NGOs and Global Business Regulation of Transnational Alcohol and Ultra-Processed Food Industries

Abstract The intensification of efforts by state and nonstate actors to address issues affecting global health has produced a patchwork of transnational regulatory governance. Within this field, nongovernmental organizations (NGOs) are expected to perform authoritative roles in holding business actors to account and enhance the democratic legitimacy of institutions via their participation in governance processes. While there exists a large body of conceptual and empirical research on global business regulation and private authority, we surprisingly know little about the governance functions of NGOs engaged in influencing the practices of corporations that produce health-harming commodities. This knowledge gap is especially pronounced in the issue area of noncommunicable diseases. This article begins to address this gap by mapping the networks of NGOs that engage in regulatory activities (rule-setting, monitoring, and enforcement) related to the (ultra)processed food and alcohol industries. We identify the networks of NGOs involved in global policy making across health, regulatory standards, and multistakeholder initiatives using nonstate actor submissions to consultations held by World Health Organization, UN Codex Alimentarius Commission (Codex), and the UN Global Compact. This paper examines NGO governance functions and their patterns of engagement and participation across institutional spheres. Overall, the article makes a twofold contribution to existing debates. First, we identify the governance functions through which NGOs attempt to hold corporations to account, contrasting their “watchdog” function with other governance functions. Second, we examine the representation of NGOs, highlighting asymmetries in participation of NGOs in the Global North and South.

Determinants Of The VAT Gap In The European Union: An Empirical Evidence with Corruption Control As A Moderating Variable

The aim of this study was to determine the effect of Shadow Economy, Economic Growth, Trade Openness, and Corruption Control on VAT Gap. Additionally, this study aims to examine the moderating effect of Corruption Control on the relationship between independent variables and the dependent variable. The study was conducted using panel data regression with Panel-Corrected Standard Errors (PCSE) model in 25 European Union countries for the 2003-2020 period. The research findings indicate that all independent variables simultaneously have a significant impact on VAT Gap. Partially, Shadow Economy has a positive effect on VAT Gap, while Economic Growth has a negative effect on VAT Gap. However, Trade Openness and Corruption Control do not significantly affect VAT Gap. Corruption Control only moderates the relationship between Shadow Economy and VAT Gap negatively. This suggests that effective corruption control measures in EU countries can reduce the negative impact of Shadow Economy on VAT revenue. Based on this research, policymakers are expected to implement comprehensive monitoring and auditing practices, simplify business regulations, and enhance education and support to mitigate the potential loss of value-added tax (VAT).

Gender-based policies and women’s entrepreneurship: an fsQCA analysis of sub-Saharan African countries

PurposeEntrepreneurship policy is a vital component of any entrepreneurial ecosystem. However, the specific policy initiatives that have a greater impact on women's entrepreneurship remain unclear in many developing economies. Therefore, this study aims to evaluate the effectiveness of entrepreneurship policies targeted at women’s entrepreneurship in sub-Saharan Africa (SSA).Design/methodology/approachEmploying fuzzy-set qualitative comparative analysis (fsQCA), this paper utilises and analyses secondary data collected by the World Bank's Women, Business, and the Law (WBL) from 1970 to 2020, encompassing 48 countries within SSA.FindingsThrough our analysis, we identified two configurations that sufficiently support women's entrepreneurship. First, a combination of gender-based policies focussing on enabling “access to credit” and “signing of contracts”; and second, a blend of policies supporting “signing of contracts”, “business registration”, and “opening a bank account”, represent significant antecedents to supporting women's entrepreneurship. These distinct pathways are crucial to fostering women’s entrepreneurship in the SSA region.Research limitations/implicationsThe study's findings indicate that the impact and effectiveness of entrepreneurship policies targeted at women entrepreneurs in developing economies depend on the effectiveness of other policies that are in place.Originality/valueThis study offers new insights into the intricate interrelationship between entrepreneurship policies and women’s entrepreneurship in developing countries by considering the interdependence and combinative value of gender-based policies that effectively support women’s entrepreneurship in sub-Saharan Africa.