Effects Of New Regulations Research Articles

Building the Bioeconomy through Innovation, Monitoring and Science‐based Policies

SummaryConcerns about climate change, food security and biodiversity loss are challenging society and the scientific community to modify our modes of operation. This involves the transition from relying on non‐renewable resources to renewable resources, reducing the emissions of greenhouse gases, sequestering and storing carbon, and at the same time, improving the well‐being of much of humanity who live in poverty. Establishing a modern bioeconomy is essential for the transition. The BioMonitor Project highlights benefits of establishing a modern bioeconomy and the constraints slowing its development. We propose policies to overcome these constraints, emphasising the importance of monitoring its progress. We present some of its findings and recommendations to improve the performance of the EU bioeconomy. This includes a science‐based regulatory process to balance risk and benefit of new innovations, combined with effective liability rules and sound assessment of the side effects of new regulations without unnecessary delay and extra regulatory costs. Government support is crucial for agricultural and industrial research and development leading to the emergence of new supply chains. Since developing bioeconomy industries that increase productivity and reduce externalities provide public goods, some government support for infant bioeconomy sectors may be justified.

WIBOR, WIRON, WIBID, POLONIA as reference rates for bank loans

Abstract The paper discusses issues connected with the use of selected indices (WIBOR, WIBID, WIRON, POLONIA) as benchmarks for bank loans. In the introduction, the author addresses the problem of manipulation of rates, which are characterized by the forecasting of interest rate values. The following part of the paper analyses the differences in benchmarks’ construction, describes their operation, methods of setting and use. It also outlines their behavior over time. Subsequently, issues relating to the application of WIBOR, WIBID, POLONIA, WIRON as benchmarks for consumer loans are presented. They have been compared to a sample bank offer based on a fixed interest rate. The final conclusions outline the possible effects of various benchmarks on borrowers, and compare the situation of the Polish banking offer for fixed-rate loans with other countries. The possible effects of new regulations in the context of the share of fixed-rate loans in the credit market are also described.

Content Analysis of Audit Reports in Stock Indices EURONEXT 100 vs BIST 100

The purpose of this study is to comparatively investigate the content analysis of the audit reports of the Turkish BIST 100 index and the EURONEXT 100 companies, one of the European stock indexes. In this context, the independent audit reports of the companies included in the EURONEXT 100 and BIST 100 indexes between 2016-2019 were analyzed by content analysis method in terms of selected variables. The increase in audit report pages with the effect of new regulations; Shorter report LAG time in BIST 100; shortening of LAG times over time in both indices; the existence of a large audit firm preference; insufficient representation of female supervisors in both indices; while audit firm rotation is more common in BIST, auditor change is more preferred in EURONEXT, and finally, the similarity in the reported number of KAMs and their subjects can be counted among the research results. In this context, according to the results of the research; first of all, it showed that the audit reports largely comply with the new regulations and that efforts to create a common language for auditing standards are underway. It has been observed that the audit reports compared under six headings show a great deal of similarity, but there are some differences due to legal reasons such as the validity dates of the standards in countries. And, it is hoped that the study will contribute to our national literature within the scope of comparative samples and to draw attention to BIST in the international literature.

Editorial Policy

Editorial Policy

Editorial Policy

Editorial Policy

The effect of new building regulations on indoor radon in radonprone municipalities

Radon is an important contributor to public radiation dose and it is important to monitor levels in homes and introduce measures to reduce radon concentration levels, both overall and where levels are especially high. In Norway, new building regulations were introduced in 2010, which required balanced ventilation and preventive measures to reduce indoor radon levels, including a radon barrier toward the ground and pressure reducing features beneath the building that prevent soil gas from entering (radon sump). Investigations of randomly selected homes all across Norway have shown that houses built under these new regulations have significantly lower radon levels. However, a few municipalities in Norway are especially radon-prone and have houses with particularly high levels. It is crucial to verify the effect of the new regulations in these municipalities, which we have done in this study. Here, we show that both preventive radon measures and balanced ventilation and the building regulations of 2010 have significant effects on reducing the radon levels in the houses of the public. Noticeably for management, houses with a well-ventilated crawl space, which have been exempt from the required preventive measures, still in some cases have levels above action and maximum recommended levels

Assessing the Effects of Directive 2014/95/EU on Nonfinancial Information Reporting: Evidence from Italian and Spanish Listed Companies

This paper explored the effects of new regulation on the disclosure of NFI in two European countries, Italy and Spain. The method used to develop the analysis is mainly qualitative. Content analysis was performed to verify the sustainability indicators disclosed by Italian and Spanish companies, listed on the FTSE MIB and IBEX 35 Indexes, before and after the Directive’s publication and implementation in national legislation. The level of NFI disclosure was scored using a disclosure index. The comparative analysis found a progressive reduction in disclosure levels for Italian companies compared with Spanish companies, for which an expansion of the disclosure was detected. Moreover, a reduced gap between the quantity of NFI reported in the two countries was found. This is one of the few studies to use a 3-year longitudinal analysis to investigate the EU Directive’s impact at the cross-country level.

Failed Attempt to Break Up the Oligopoly in Sovereign Credit Rating Market after Financial Crises

For decades, the credit rating market has been dominated by three major agencies (Moody's, S&P and Fitch Ratings). Their oligopolistic dominance is especially strong in sovereign credit ratings industry, where they hold a collective global share of more than 99%. Global financial crisis and the Eurozone sovereign debt crisis exposed serious flaws in rating process and forced public authorities to act. This study investigates effectiveness of new regulations adopted in the United States and in the European Union after financial crises in terms of reducing oligopolistic dominance of the “Big Three” in sovereign credit ratings market. The study applies descriptive statistical analysis of economic indicators describing concentration rate in a market, as well as content analysis of legal acts and case study methodology. Analysis shows that the Dodd-Frank reform and new European rules on supervision of credit rating agencies were not effective enough and did not lead to the increased competition in the market. The evidence from this study is explained using two alternative perspectives – economic theory of natural oligopoly and hegemonic stability theory coming from international relations field.

Underpricing in the euro area bond market: New evidence from post-crisis regulation and quantitative easing

We conduct an extensive study of underpricing in the euro area bond market and find strong evidence of underpricing. In cross-sectional regressions we find patterns that are consistent with bookbuilding-based theories of underpricing and inconsistent with liquidity-based explanations. The underpricing has increased considerably during the financial crisis and has remained at an elevated level since. We also show that secondary market liquidity in the euro area bond market is significantly lower in the post-crisis period than pre-crisis. These results are consistent with recent US evidence and may represent unintended side effects of new regulation enacted in the wake of the financial crisis, such as Basel III and the Volcker Rule. Furthermore, our evidence suggests that the ECB’s corporate sector purchase programs has led to a decrease in underpricing.

Estimating the potential impact of requiring a stand-alone board-level risk committee

Motivated by the requirement under the Dodd-Frank Act that all large bank holding companies create a stand-alone, board-level risk committee, this paper investigates the association between such a committee and regulatory risk both before and during the financial crisis. I focus the analysis on the set of banks that did not have a risk committee in place prior to the Dodd-Frank Act, as these are the banks that were most affected by the regulation. I find that matched control banks with a risk committee in place had higher capital ratios during the financial crisis, but lower capital ratios during more stable economic conditions relative to the banks without a risk committee. This paper contributes to the literature by narrowly investigating the effects a board-level risk committee, by focusing on a risk measure that is of interest to the regulators who implemented the new regulation, and by documenting that this association changes over time which highlights the importance of estimating the effects of new regulations across different economic conditions.

Evaluation of Patients with Brain Death Diagnosis and Investigation of the Effect of New Regulation on the Duration of Diagnosis

Evaluation of Patients with Brain Death Diagnosis and Investigation of the Effect of New Regulation on the Duration of Diagnosis

Evaluation of Patients with Brain Death Diagnosis and the Effect of New Regulation on the Duration of Diagnosis

Evaluation of Patients with Brain Death Diagnosis and the Effect of New Regulation on the Duration of Diagnosis

Post-regulation effect on factors driving environmental disclosures among Chinese listed firms

PurposeThe purpose of this study is to re-examine the factors that affect the level of environmental information disclosures (EID) following the issuance of the “Environmental Information Disclosure Guidelines for Chinese Listed Companies”.Design/methodology/approachThe study is underpinned by stakeholder and legitimacy theories. Level of EID was measured for 100 Chinese companies using a scoring system and content analysis of their annual reports. The study explored the effect of ownership structure, managerial shareholding, economic power and industry classification on the level of EID using panel regression.FindingsThe study revealed that with clearly spelt out guidelines, Chinese companies are prepared to disclose environmental information regardless of their economic power. It was found that the overall level of EID in China remains lower than in developed economies. The findings are robust across several econometric models that sufficiently address various endogeneity problems.Originality/valueThis paper contributes to the existing literature by using new and updated data to re-examine the factors that affect the level of EID among Chinese listed companies. The study is important and timely as it covers the period 2014-2016, which is after the Chinese Government strengthened the enforcement of EID. It highlights the effects of new regulations and underscored areas that still require government attention to foster effective environmental protection.

New regulations in the development of a financial market

Effective functioning of a financial market has a key role in the development of a country's economy. Developing countries experience lack of funds, one of the best ways to attract investment capital is the development of the right direction of the securities market, credit market and insurance market that are served by the regulations adopted in this field, which are derived from the Association Agreement.
 It can be said that a new phase starts with new regulations on the market of financial institutions. Current regulations are directed to the solvency of the insurance company, the use of mechanisms for maintaining financial sustainability, and the rule of formation and placement of reserves. However, there are no regulations for the development of life insurance. According to the new regulations, we think that in 2019 banking sector will be significantly different from the 2017 situation. In the short term, it will bring down retail lending, increase expenditures in the sector, increase demand on capital and reduce profitability, and in the long term we should hope that it will contribute to the improvement of the financial system of Georgian financial system, which will ensure financial sustainability of the banking system. Regulations concerning the development of the securities market, here a pension reform is important, which has come into force since January, 2019. As a result of this, the state accumulative pension system started in which large amounts of accumulated funds will be invested in local securities, in the local economy.
 The research objective: To determine the effectiveness of new regulations on the financial market, the purpose of implementing regulations is to improve the quality of the banking system, the securities market, the insurance market, and the sustainable development of the economy.

Underpricing in the Eurozone Corporate Bond Market

We conduct the most extensive study of underpricing in the Eurozone bond market so far and find strong evidence of underpricing. In cross-sectional regressions we find patterns that are consistent with bookbuilding-based theories of underpricing and inconsistent with liquidity-based explanations. The underpricing has increased considerably during the financial crisis and has remained at an elevated level since. The European Central Bank’s asset purchase programs have led to a decrease in underpricing. We also show that secondary market liquidity in the Eurozone bond markets is significantly lower in the post-crisis period than pre-crisis. The decrease in liquidity is consistent with recent US evidence and may be an unintended side effect of new regulation enacted in the wake of the financial crisis, such as Basel III and the Volcker Rule.

Survey on forecast bias (analysts and earnings)

This literature review surveys some of the main topics regarding analysts and earnings. My primary focus is on analyst forecast bias by highlighting the various incentives, biases, and weightings that can influence the accuracy of analysts’ forecasts. I then demonstrate some of the factors that can influence analysts’ overall accuracy, specifically their career concerns, the tendency for analysts to herd, and information weighting. I study the effect of new regulations and reforms passed in the early 2000s on analysts, brokerage house earnings, and forecast bias.

Consequences of fishing moratoria on catch and bycatch: the case of tropical tuna purse-seiners and whale and whale shark associated sets

Time–area regulations have been introduced to manage stocks of tropical tuna, given the increased use of drifting fish aggregation devices (FADs). However, the consequences in terms of changes in fishing strategies and effort reallocation may not always be as expected. For instance, in the eastern Pacific Ocean, previous studies have highlighted that the increase use of FAD-fishing following the demand for tuna caught without dolphin mortality has raised concerns about the bycatch and the capture of juvenile tuna. In the tropical eastern Atlantic and western Indian Oceans, this study aimed to (1) assess, using before–after analysis, the consequences of previous time–area regulations on FAD sets on the fishing effort allocated to megafauna associated sets, and (2) evaluate through Monte Carlo simulations the potential effect of new regulations banning whale or/and whale shark associated sets. Firstly, we showed that previous time–area regulations, which were mainly implemented during seasons with few whale and whale shark associated sets, generally had thus little effect on the number of megafauna associated sets. Secondly, some simulations, particularly when both whale and whale shark associated sets were banned, predicted consequences of changes in fishing strategy. Indeed, these types of ban could lead to an increase in the number of FAD and free school sets but no change in the tuna catch, as well as a slight decrease in bycatch. These results indicate that an ecosystem approach to fisheries, by taking into account megafauna associated sets and bycatch, should thus be adopted when implementing management or conservation measures.

The Effects of the Regulations on the ELW Markets : An Analysis on ELW Pricing

We examine the effects of new regulations introduced by Korean government to cool down overheated Korean ELW markets. We also investigate whether ELWs are fairly priced as noted in the previous research. The empirical findings are as follows. Firstly, ELW was more expensive than KOSPI200 option not only before but also after the introduction of the new regulations. But degrees of the overpricedness are decreased significantly with the new regulations. Secondly, we confirm the well known facts in the literature that liquidity providers get extra profits as monopolistic providers for ELWs. Thirdly, we analyze the determinants of the differences in premiums between ELW and KOSPI200 option. The trading volume is negatively correlated with premium difference, however, timeto-maturity and market share are not statistically significant. Even though it seems that the financial regulator achieve their primary purpose to control the overheated market, we find that the new regulations have almost no effects on the overpricing problem, which implies that overpricing in ELW is not related to the market inefficiency.

Development of mergers and acquisitions in the conditions of the Czech economy 2001-2010

This paper presents the first results of a research project which has the aims to identify the problems appearing during the preparation of mergers in compliance with valid Czech regulations and to analyze economic causes and consequences of mergers. At the first stage it was necessary to compile a basic dataset in a structure needed for a statistical analysis. The aim of the analysis presented in this paper is to ascertain, both theoretically and empirically, how the external environment affected the development of mergers of trading companies in the conditions of the Czech economy. The covered period is the past ten years, i.e. 2001–2010, when the development of the global economy was affected by the bank crisis in the USA and the economic recession. The analysis of the development of mergers and acquisitions focuses on three groups of factors affecting activities in the field of company combinations. These are mergers and acquisitions which are subject to approval by regulatory bodies, the effect of new regulations of financing (financial factors) and the effect of the macroeconomic situation in the form of GDP indicator and PX index. Macroeconomic indicators are related to mergers whose development has not been published or explored within scientific research. The results of the analysis allowed us to describe the dependence of activities in the field of company mergers which took place in the Czech Republic in the past decade on the selected factors of the external environment.

Impacts of Energy Regulations and Vehicular Technologies on Fuel Tax Revenues

Various energy regulations including corporate average fuel economy (CAFE) are forcing auto manufacturers and auto distributors to improve the fuel efficiency of vehicles significantly over the next decade. Conversely, improved automotive technologies and higher gasoline fuel prices enable better alternative-fuel vehicles (AFV), including hybrid vehicles (HV) and electric cars. This research evaluates the impacts of CAFE regulations in automobile and light truck fleet fuel economies, and effects of HV and AFV in the fleet, on gasoline-tax-based revenues. The new sales survivability (NSS) model, along with new vehicle sales data and vehicle survivability data from 1980 to 2005, were used to estimate the fleet mix, vehicle miles traveled (VMT) by fleet mix, and revenue projections through the year 2025. Five scenarios were considered to analyze the impacts of CAFE regulations and introduction of HV and AFV on fuel consumption and fuel-tax-based revenues for highway revenues. The results show that the CAFE regulation alone is expected to reduce the fuel-tax-based revenue by more than 21% in the year 2025. Similarly, the introduction of HV and AFV along with CAFE regulations is expected to reduce fuel-tax-based revenues by more than 31 and 37%, respectively, in the year 2025. This paper shows the significance of considering the effects of new regulations and technological improvements in estimating future fuel-based revenues. The revenue estimated in this paper is much lower than the estimates developed by previous studies. This shows that modifications to the existing system of highway financing would be required much earlier than anticipated.