Development Of New Regulations Research Articles

Does corporate governance influence earnings management in listed companies in Bahrain Bourse?

PurposeThis paper aims to consider data for listed companies in Bahrain Bourse to determine whether companies practice earnings management (EM). Further, the effect of a set of corporate governance characteristics on EM practices is examined.Design/methodology/approachThe EM level was measured using discretionary accruals (DA) [calculated using the Modified Jones (1995) Model]. The study sample consisted of 20 companies listed during the period 2011-2015. Panel regression model was used to test the study hypotheses and achieve the study aims.FindingsEM is negatively correlated with board size, confirming that a larger board is associated with a lower level of EM practices. Further, board independence is positively correlated with EM, suggesting that the larger the number of independent directors, the higher the level of EM practices. In addition, internal ownership is positively related to EM, confirming that the higher level of internal ownership increases EM practices. CEO duality does not appear to have any effect on EM in Bahrain Bourse. More interestingly, the findings reveal that companies practice EM through income-increasing DA.Research limitations/implicationsFinancial data and data related to other corporate governance characteristics are lacking.Practical implicationsThe results of this study provide empirical support for the development of new regulations and amendments and necessary corrective decisions regarding the effectiveness of applying corporate governance code in Bahrain Bourse. More specifically, this study reveals an urgent need for new amendments to restrict EM practices in Bahrain Bourse.Originality/valueThis study enriches the EM literature by covering Bahrain as an Asian country, which has not been sufficiently examined in relation to this topic. Further, this study provides a clear picture of the level of EM practices in Bahrain Bourse to multiple parties.

Direct-to-Consumer Marketing of Stem Cell Interventions by Canadian Businesses

This study examines marketing claims of Canadian businesses engaged in direct-to-consumer advertising of putative stem cell treatments. Internet searches were used to locate Canadian businesses selling stem cell interventions. Company websites were subjected to detailed analysis. In total, 30 Canadian businesses sell stem cell interventions provided at 43 clinics. Autologous stem cells are the most common types of products promoted by such businesses. Company websites minimize risks while making strong claims about benefits of stem cell interventions. Businesses' representations could result in patients making health-related decisions informed by marketing claims rather than best available scientific evidence. Although there is absent development of new regulations and guidance, the Canadian direct-to-consumer marketplace for stem cell interventions appears poised for expansion.

General staff of the army of the UPR (the specifics of activities in the conditions of internment in the camps of Poland, 1921-1924)

The article analyzes the specifics of the activities of the General Staff of the Army of the Ukrainian People's Republic under conditions of internment in the camps of Poland in 1921-1924., which continued to perform its functions as the main military unit for planning the development of the armed forces of the UPR and restoration of Ukrainian statehood by armed means. The staff of the General Staff took an active part in the development of new regulations for the army, carried out an examination of bills that determined the structure of the troops in the conditions of internment and in case of restoration of military actions for the restoration of the UРR, identified ways of reforming cultural and educational work in the camps

Agent-Based Modeling: An Application to Natural Resource Management

Computer programs have been categorized as a useful tool to evaluate the complexity of systems. In fact, agent-based modeling (ABM) is considered a new method to model complex systems characterized by the role of independent and interrelating agents. Simulations contribute in estimating and comprehending emerging behaviors that require the development of new regulations for local agents that would make improvements to the system. This paper offers an example of a methodology and a process utilized to develop a simulation model named Befergyonet, an ABM used to conduct computer simulations within a spatio-intertemporal environment. The methodology discussed in this paper is intended solely to stimulate the use of innovative computer programs to simulate complex systems as an approach to represent real world events and may be a methodological guide for readers interested in developing their own ABM.

New trends in the system regulating the market of bank services

The severity of the last financial crisis for the European financial markets, the economy, and society makes the scientists and financial analysts start to seek answers with great openness not only to the question of how to reduce its negative effects in the future, but also of how the system regulating financial institutions will look like in the future. The article discusses three options of the positions on the future regulatory tendencies: theoretical alternative, option presented in reports and expert studies, and the version arising from observations of the current practices of functioning of the European banks. The aim of the article is to confront the views on the future trends in the regulation of the banking sector from theoretical, consulting point of view, and the view formulated on the basis of evalua-tion of banking practices.

Micro Operators to Boost Local Service Delivery in 5G

Future digital society depends heavily on timely availability of high quality wireless connectivity the offering of which today is dominated by mobile network operators (MNOs). Future 5G systems aim at connecting billions of devices to serve versatile location and case specific needs of vertical sectors in parallel with the provisioning of traditional mobile broadband services. As the majority of mobile traffic originates from indoors, cost-efficient and fast deployment of new indoor small cell networks is fundamental, which calls for new developments in regulation and technology to enable new business. This paper proposes the concept of micro operators (uO) for local service delivery in 5G to build indoor small cell communication infrastructure and offer context related services and content. Key elements of the new micro operator concept are introduced including regulation-related factors of local spectrum access rights, and technology-related factors of flexible network implementation. Several business opportunities are identified for the uO concept including the provisioning of hosted local connectivity to all MNOs in specific locations, operation of secure networks for vertical sector specific use, and offering of locally tailored content and services.

Comparison of prescriptive and performance-based regulatory regimes in the U.S.A and the U.K.

Every major industrial accident such as Piper Alpha disaster, Exxon Valdez Oil Spill, BP Texas City Refinery led to the development of new regulations. After the BP Deepwater Horizon accident, several investigation committees recommended to reexamine the United States' existing regulatory approaches by integrating more sophisticated risk assessment and risk management practices. It has been observed that this type of reactive changes in regulation sometimes give more focus on the causes of a particular accident rather than considering possible future hazards unrelated to that particular accident. There are primarily two approaches of the offshore oil/gas industry's regulatory regime; while the United States' regulatory system is the more prescriptive-based, the United Kingdom's approach is performance-based. The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling Accident recommended changing U.S. regulatory regime to a proactive, risk-based approach which could be similar to the “Safety Case” approach of the North Sea. The “Safety Case” approach of the U.K. is considered successful in minimizing accidents in the North Sea region. The objective of this study is to perform an evaluation and comparison between the United States' prescriptive-based regulatory approaches and the United Kingdom's performance-based regulatory approaches to understand their advantages and disadvantages. Then, this study presents an analysis of major accident histories under both regulatory regimes and discusses their effectiveness in reducing accidents. The study has found that there are both advantages and disadvantages in both the regulatory regimes and with available data, it is difficult to conclude with certainty that one regulatory regime is better than the other.

Closing the Gap. A Human Rights Approach to Regulating Corporations

This paper examines the current system regulating state and corporate behavior with regards to human rights. As such it contributes to the debate on a global treaty on business and human rights through an interdisciplinary, human rights approach. The analysis takes a threefold approach to how one can best regulate corporations to secure an increased protection of rights. First, it asks whether there is a regulatory gap in protection in the current system. Reflecting on existing theories, the hypothesis is that there is a protection gap. To assess the hypothesis the paper takes an empirical approach, building on data from a newly constructed database holding information on eighty two global standards. Through a quantitative analysis of the standards, it concludes that there is a gap in protection that has to be addressed.Second, having established a gap, the analysis further examines corporate and sectorial standards as alternatives to a global treaty. Relying on the same data, it quantitatively analyses the alternatives. Taking a human rights approach, it compares standards on human rights language, inclusion of human rights treaties, strength, parties, and enforcement mechanisms. It concludes that while neither corporate nor sectorial standards appear to have the potential to close the gap, a combination of sectorial standards and a global treaty may be a good solution.Third, given the conclusion that a global treaty may be the best option, the final chapter asks if treaties have an impact. To answer the question, the paper examines the legislative impact of the Framework Convention on Tobacco Control (FWCTC) on domestic legislation. Building on existing research and showing a clear link based on a newly constructed dataset, the analysis concludes that the FWCTC appears to have had a significant impact on the development of new regulation. Based on the theoretical discussions and empirical findings, the paper concludes that the best way to regulate corporations and states, to increase the protection of human rights, appears to be through a global framework convention; perhaps preferably supplemented by sectorial treaties.

Recent advances in risk assessment and risk management of geologic CO2 storage

This paper gives an overview of the advances made in the field of risk assessment and risk management of geologic CO2 storage (GCS), since the publication of the IPCC Special Report on Carbon Capture and Storage in 2005. Development and operation of a wide range of demonstration projects coupled with development of new regulations for safe injection and storage of CO2 have led to development and deployment of a range of risk assessment approaches. New methods and tools have been developed for quantitative and qualitative risk assessment. These methods have been integrated effectively with monitoring and mitigation techniques and deployed in the field for small-scale field tests as well as large-scale commercial projects. An important development has been improved definition of risks, which can be broadly classed as site performance risks, long-term containment risks, public perception risks and market risks. Considerable experience has now been gained on understanding and managing site performance risks. Targeted research on containment risks and induced seismicity risks has led to improved understanding of parameters and processes influencing these risks as well as identifying key uncertainties that need to be targeted. Finally, significant progress has been made to effectively integrate communication strategies with risk management approaches to increase stakeholder confidence in effectiveness of deployed risk management approaches to manage risks.

Comparative environmental assessment of unconventional power installations

Procedure of the strategic environmental assessment of the power installations operating on the basis of renewable energy sources (RES) was developed and described. This procedure takes into account not only the operational process of the power installation but also the whole life cycles: from the production and distribution of power resources for manufacturing of the power installations to the process of their recovery. Such an approach gives an opportunity to make a more comprehensive assessment of the influence of the power installations on environments and may be used during adaptation of the current regulations and development of new regulations for application of different types of unconventional power installations with due account of the ecological factor. Application of the procedure of the integrated environmental assessment in the context of mini-HPP (Hydro Power Plant); wind, solar, and biogas power installations; and traditional power installation operating natural gas was considered. Comparison of environmental influence revealed advantages of new energy technologies compared to traditional ones. It is shown that solar energy installations hardly pollute the environment during operation, but the negative influence of the mining operations and manufacturing and utilization of the materials used for solar modules is maximum. Biogas power installations are on the second place as concerns the impact on the environment due to the considerable mass of the biogas installation and gas reciprocating engine. The minimum impact on the environment is exerted by the mini-HPP. Consumption of material and energy resources for the production of the traditional power installation is less compared to power installations on RES; however, this factor incomparably increases when taking into account the fuel extraction and transfer. The greatest impact on the environment is exerted by the operational process of the traditional power installations.

Corporate governance mechanisms and unmanaged earnings: Empirical evidence from Malaysian government linked companies

The aim of this paper is to examine the effectiveness of board monitoring mechanisms in Government Linked Companies (GLCs) in Malaysia. Mainly it focuses on how the introduction of the transformation policy, which emphasizes strengthening the board effectiveness, would lead to an improvement in the performance of GLCs. Our study goes further to explain the impact of earnings management on performance as it is opined that the performance of the firm could be affected by the earnings management (EM) practices, and, hence, looking at the performance after stripping away the managed portion of performance could provide more accurate results concerning the impact of corporate governance on performance. Using regression analysis, the findings of the study showed that the adjusted R2 increased from 14.8% to 26.8% (between the pre-transformation and post-transformation models). In addition, more corporate governance variables were found to be significant in the post-transformation model (i.e. board independence and board meetings). More importantly, the significance of the variables are as predicted in the hypotheses, thus lending support for the argument of the agency theory. This study has recognized a few limitations. First, the main limitation of the study is that the data were collected through publicly available data which include annual reports and other databases such as Bloomberg. Other data such as qualitative information could be helpful to gain more insight concerning the issue of the effectiveness of the transformation policy. Second, although we are using all available data for the Malaysian GLCs, the sample size of 35 companies could still be considered as a small sample size for generalization purpose. The government, in its role of regulating the corporate governance for GLCs, could gain an insight from the results of the study, thereby providing empirical support for the development of new regulations and recommendations, and takes the necessary corrective decisions regarding the effectiveness of the transformation policy. The paper provides further evidence concerning the relationship between performance and corporate governance mechanisms. Specifically, it looks into such a relationship within the Malaysian GLCs after the introduction of the transformation programme. The results of the study are more accurate for interpretation as the measure of performance has deducted the portion of managed earnings.

Development of Bayesian Models for Marine Accident Investigation and Their Use in Risk-based Ship Design

Historical marine accident/incident data remain severely underused in regulatory development as well as during design and operation. It is widely recognized that this is mainly the result of underreporting in commercially available databases and in databases maintained by national authorities. A factor further signifying this underuse is the evident improper reporting because most data are maintained as textual information requiring significant amounts of time and effort to distill and use the essential characteristics of accidents. Compounded with improved accessibility to an ever increasing amount of historical records, there is a need to develop the means that all the available information from marine accident/incidents is fully used in decision-making during development of new regulations, design, and operation. This article elaborates on the underlying causes for the current unsatisfactory state of affairs and details the description of the structures adopted for the development of appropriate marine accident databases using Bayesian Belief Networks as the platform for translating the information contained in the databases to probabilistic risk-based knowledge-intensive models. The article further explains the use of these models within a risk-based ship design framework, concluding with an example case study of application for fire safety onboard passenger ships.

Triggers behind the regulatory development triad

The regulatory development process used by the US Environmental Protection Agency (USEPA) can be divided into three categories ‐ “priority” regulations, the six‐year review of existing regulations, and the development of new regulations. This article summarizes recent USEPA actions in each of these categories and examines the triggers that ultimately determine regulatory development. Regulatory triggers that are based on the occurrence data from the first six‐year review and on the first round of regulatory determinations from the Contaminant Candidate List provide insight into when a national drinking water regulation may or may not be considered to be warranted. By consolidating information from different sources, this article furthers the understanding and analysis of drinking water policy. It also points out the need for additional research and information in several areas including historical data used in the regulatory development process, performance of analytical methods at low concentrations, comparisons of the uncertainty and risk management factors used in past regulations as well as a comparison of past cost‐benefit analyses.

Roll Up Your Sleeves, Get Involved in Shaping Regs

This article states the importance of public participation in the development of new regulations. Since the enactment of the 1996 Safe Drinking Water Act (SDWA) Amendments, more than 75 public stakeholder meetings on various regulatory issues have been held. These meetings are committed to informing and involving interested parties in the process of making rules. The frequency of stakeholder meetings is expected to remain at a high level throughout implementation of the 1996 SDWA Amendments. USEPA is using several mechanisms to encourage and allow public involvement. Further information is given as to how to take advantage of these opportunities.

Government policy and asbestos

The development of government policy on an issue like Asbestos, where science, industrial relations, economics, available technology and community concerns all play a part, is a slow and complex process. The 1978 Asbestos Regulations established a framework for dealing with occupational exposure to asbestos in a largely manufacturing environment. In developing government policy on asbestos, a wide range of factors need to be considered:- • the asbestos industry in 1991 is predominantly a removal industry • the exposure standards for asbestos have been dropping worldwide in response to epidemiological findings • VTHC, in October 1989 passed a resolution to ban the manufacture of asbestos and asbestos products by 1/1/1995 • industrial disputation over asbestos has increased significantly - one dispute alone in 1989 cost about $24 million to the company and workers. • Minister for Labour in 1990 requested that the Victorian Occupational Health and Safety Commission carry out an inquiry into asbestos usage in Victoria, and examine the feasibility of substitutes and alternatives. Development of new regulations on asbestos had commenced within the Victorian Occupational Health and Safety Commission in 1986, but because of the great complexities of this issue, a draft was not recommended to the Minister until April 1991. In addition, the Subordinate Legislation Act in Victoria requires an economic assessment of all proposed new regulations. Economics dictate that the policy position of the unions for a total ban is unable to be supported. Worldwide trends in legislation and community concerns also dictate that the position of some employer groups for very conservative regulatory control is equally impossible to endorse. Government policy in these sensitive and complex areas must be developed in full knowledge of all these factors in an attempt to reach the best outcome for all Victorians.

Norm: The New Hot Wastes

Concerned about the threat of contamination from illegally dumped radiopharmaceuticals earlier this year, the managers of a Pennsylvania landfill increased the sensitivity of the radiation detector used to scan incoming wastes. To their surprise, the first shipment to set off the alarm contained nothing but concentrated brine sludge a mineral waste produced by oil and gas drilling. sludge, which arrived in April, contained significant levels of two radium isotopes. In July, a batch of paper mill wastes tripped the radiation alarm at a scrapmetal yard in Pittsburgh. mill's operators and Pennsylvania's Department of Environmental Resources (DER) are still puzzling over the source of the uranium in the mill wastes. Both cases involved naturally occurring radioactive materials, collectively known by the acronym NORM. Geologists have recognized for decades that could contaminate equipment and wastes at nearly any mineral-extraction site. But because mining engineers suspected that the risk of finding anywhere but in the residues, or tailings, of uranium and phosphate mining was small, no one systematically sought it elsewhere. Over the past three years, however, a number of incidents have raised concerns that is ubiquitous usually in small, diffuse quantities in many industries traditionally regarded as nonnuclear. Indeed, regulators and waste managers now use the term primarily to describe contaminants produced by such industries. Because neither waste shipper involved in the Pennsylvania incidents was aware that its goods contained contamination, the shipments were apparently quite legal, says James G. Yusko, a health physicist in DER's Pittsburgh office, who investigated both incidents. Still, these shipments proved about as welcome-and perhaps as innocuous-as a kiss from someone with halitosis. But nobody's laughing off. Some NORM-contaminated sites and equipment may pose a real health hazard. Moreover, the growing number of related incidents poses political, legal and financial headaches for everyone who encounters NORM, from state officials and industrial-waste generators to waste-treatment operators and metal smelters. One widely touted remedy for those headaches involves the development of new regulations. The American public continues to press for increasingly stringent environmental and public health regulation, observes Linda S. Wennerberg, a regulatory analyst with Arthur D. Little, Inc., in Cambridge, Mass. This sentiment is especially strong in the areas of radioactive material and waste management. According to a draft preliminary risk assessment for diffuse that the Environmental Protection Agency began circulating in May, NORM materials are not covered by the Atomic Energy Act of 1954 and are generally not specifically covered by most existing [federal] regulations. Although they are covered by some state regulations, there are presently no universally applicable regulations for materials. As such, NORM management represents a gap in the federal regulatory structure, and is currently one of the complex, interdisciplinary regulatory issues emerging in the 1990s, Wennerberg says.

The Effectiveness of Recent Policies to Maintain Thrift-Deposit Flows

The topic of financial disintermediation has received a great deal of attention since 1966, when severe monetary restraint led to a sharp decrease in the rate of growth of deposits at filnancial institutions, particularly at savings and loan associations and mutual savings banks. The 1966 experience led to fears of widespread insolvency among thrift institutions and to the development of new regulations, or reinforcement of existing regulatory powers, designed to protect thrift institutions. Chief among these changes were the shift in the rationale for the Federal Reserve System's power to establish maximum rates payable on commercial-bank time deposits (Regulation Q) and the extension of deposit-rate ceilings to member institutions of the Federal Home Loan Bank Board and the Federal Deposit Insurance Corporation. The new rationale for Regulation Q was as a means of protecting the deposit inflows of thrift institutions (particularly weak ones) from commercial-bank competition in periods of monetary restraint, when in the absence of such restrictions commercial banks would raise their rates offered more rapidly than would thrift institutions.l The extension of deposit-rate ceilings to thrift institutions in The Interest Rate Regulation Act of 1966 was at least partially motivated by a desire to limit interest rate competition among thrift institutions.2