Financial Rules Research Articles

AUTOMATIC EXCHANGE OF INFORMATION SEBAGAI BIG DATA DI BIDANG PERPAJAKAN

Economic globalization between countries becomes commonplace. Differences in financial rules are used for many parties to practice the Basic Erosion and Shifting Profit (BEPS) which leads to state losses. In tackling it has been agreed to implement Automatic Exchange of Information (AEoI), which automatically converts data into large data in the field of taxation.The research method of this paper is a literature study which combines several related literature and global and national implications using secondary data.Drawing up the conclusion that AEoI challenges have been theoretically overcome by Indonesia as a developing country. However, practically mash has not been able to find out whether it can be overcome or not because Indonesia still has not implemented AEoI

Tailoring for Development: China's Post‐crisis Influence in Global Financial Governance

AbstractChina's increasing engagement in global financial governance since the 2008 crisis has potentially significant ramifications for global financial rule‐making and standard‐setting. This article presents a novel analysis of China's growing influence on the international stage and its consequences for the financial rules and standards that constrain policy makers in developing countries. We draw upon literature from international political economy and development studies to develop a framework for assessing whether China's rise has catalyzed a shift in global financial governance towards a tailored approach that responds to country‐specific developmental circumstances and needs. We argue that China's status as a rising power that still has idiosyncratic developmental priorities is leading it to push for rules and standards that are more flexible and sensitive to specific national development conditions. We illustrate this argument in three case studies, deploying the framework to explain variation in the post‐crisis evolution of rules in prudential banking regulation, capital flow management, and debt sustainability surveillance.

The corridor of uncertainty: part two, why attempts to regulate the financial aspects of football are met with legal challenges

Legal systems should be certain so that rules can be easily enforced and the law’s subjects can operate with certitude. And yet, in the world of professional football, the legal validity of various regulatory rules governing the financial aspects of professional football has repeatedly been called into question. Legal challenges, ventilated through various national and international fora, call into question the stability of financial rules created by football’s governing bodies, and, prima facie, undermine the ability of the game’s rule making bodies to create financial rules which engender the requisite degree of legal certainty. This paper is the second in a two-part series. Part One consisted of case studies on legal challenges to financial regulatory rules (Financial Fair Play, the prohibition on third party ownership, and aspects of the market in player transfers). This Part Two critically assesses the underlying themes to those challenges, reflecting on the difficulties in making financial rules in a system of conditional autonomy; the uncertainty precipitated by using arbitration as a preferred—or as the case may be, mandatory—system of dispute resolution; and the intractability of challenges brought by actors outside of governing bodies’ jurisdictional ambit. It is argued that this confluence of factors has put football’s governing bodies in a ‘Corridor of Uncertainty’ in respect of their ability to regulate the financial aspects of the game. In this ‘Corridor of Uncertainty’, governing bodies’ financial rules are inexorably prone to legal challenges to which a legal, political or regulatory response must be produced.

The corridor of uncertainty: part one, case studies on the legal challenges to the financial regulation of football

Legal systems should be certain so that rules can be easily enforced and the law’s subjects can operate with certitude. And yet, in the world of professional football, the legal validity of various regulatory rules governing the financial aspects of professional football has repeatedly been called into question. Legal challenges, ventilated through various national and international fora, call into question the stability of financial rules created by football’s governing bodies and, prima facie, undermine the ability of the game’s rule making bodies to create financial rules which engender the requisite degree of legal certainty. This paper is the first in a two-part series examining the framework within which financial regulatory rules are made and the manifestations of the peculiarities of that framework. This Part One is composed of three case studies on formal legal challenges—to Financial Fair Play, to the prohibition on third party ownership, and aspects of the market in player transfers—each of which involved disputes centred on financial regulatory rules. Part Two of this series will build upon the themes identified in Part One. Considering the structural factors underlying the legal challenges described. It will be argued that a confluence of factors have put football’s governing bodies in a ‘Corridor of Uncertainty’ in respect of their ability to regulate the financial aspects of the game. In this ‘Corridor of Uncertainty’, governing bodies’ financial rules are inexorably prone to legal challenges to which a legal, political or regulatory response must be produced.

Pengaruh Boards Diversity (CEO Wanita, CFO Wanita, Proporsi Dewan Komisaris Wanita, Proporsi Komite Audit Wanita) Terhadap Pelanggaran Aturan Laporan Keuangan

The focus of this study was on female CEOs, female CFOs, the proportion of female commissioners, and the proportion of female audit committees. This study measures how gender-based board diversity through the presence of female executives exerts an influence on the violation of financial reporting rules conducted by public companies in Indonesia. This study uses the assumption that gender differences will affect a person's behavior. Female and male will have different considerations and actions, for example in terms of cognitive functioning, decision making, and conservatism that may have important implications in the quality of financial reporting. Populations in this study are all non-financial companies that violate financial rules according to Otoritas Jasa Keuangan (OJK). The results of the study explain that female CEO variables and proportion of female board of directors negatively affect the level of financial reporting violations, while female CFOs and female audit committees have no influence on the level of violation of financial statement rules.

Financial Instability, Trade Openness and Energy Prices on Leading African Countries Sustainable Growth

This study aimed to examine the effect of financial instability, energy prices and trade openness on economic growth for leading African countries (Egypt, Kenya, Morocco, Nigeria and South Africa). We employed the second-generation cointegration test and the Dumitrescu and Hurlin (DH) heterogeneous panel Granger causality test over the period from 1970 to 2016. The result of cointegration analysis revealed that, there is the existence of a cointegration relationship between the financial instability, oil prices, and trade openness on economic growth sustainability for leading African countries. While, the causality test has revealed a unidirectional causal relationship, which running from financial instability to real economic growth, oil price to real economic growth; and a bidirectional causality running between trade openness and economic growth. The empirical results also showed that, the intervention by leading African country's policymakers could create rigidity or financial repression policies rather than a more stable financial system which could achieve by financial rules and regulations being designed to widen the space for the growth and stability of oriented macroeconomic policies.

Public Finance: Process of Constitutionalization and Internationalization

The subject-matter of this article is the processes of constitutionalization andinternationalization of public finances. The modern system of government is constitutional.The activities of the governmental bodies in the financial and budgetary spheres areexercised in legal forms. The fundamental principles and rules of this activity are laid down bythe constitutions. It relates to the key directions of the financial regulation (the elaborationand adoption the law on budget, the legislation on taxes etc.). The constitionalization ofpublic finances is a long historical process. Due to it, new principles and rules of financialregulation have been established in the organization and functioning of the government.Constitutionalization of public finances meant the transition from the era of absolutism tothe system of constitutional (responsible) government. The era of constitutionalism led tothe expansion of the financial provisions in the national constitutions. Some of the modernconstitutions are called therefore “financial”. Surely, the process of constitutionalizationis uneven. It is manifested in the embodiment of financial rules and norms in the textsof the constitutions as well as in their implementation in the practice of governmentalbodies. There are some peculiarities of constitutionalization of public finances in theRussian Federation, due to some special features of its historical evolution. One cansee the growing interest of the Russian legal scientists to the problem. The process ofconstitutionalization of public finances is not completed yet. It will be expanding becausethe growing role of public finances in the economic and social development. In the era ofglobalization, the internationalization of public finances has become a universal trend. Itis manifested in various forms. First of all, it is strengthening of the supranational financialstandards. It is also the structural changes concerning national governmental bodies andinstitutions of the supranational organizations. The most evident example is the EuropeanUnion. The general trend is going on the direction of expansion of financial activities. TheUnion has its own budgetary system. The list of the budgetary principles and rules isincluded in the Treaty of European Union and the Treaty on functioning of the EuropeanUnion. Some of rules have been reproduced from the constitutional law of the memberstates.The new phenomenon is the implementation of the rule of the budgetary discipline,which was elaborated on the supranational level, in the national constitutional systems ofsome Member-states. One can see the trend towards the growing harmonization andconvergence of the national and supranational financial systems in the modern world.

TRENDS IN THE FINANCIAL PROVISION OF THE EDUCATION SECTOR IN UKRAINE: THE BASIS FOR THE FORMATION OF GOVERNMENT FINANCIAL RULES

Introduction. Financial aspect is one of the most problematic issues in education system. Insufficient funding directly affects other dimensions of this system. In many countries, including Ukraine, scientists, researchers, analysts and all those interested in education issues, are trying to find an answer on the questions: who has to finance education and what proportion of funding should come from different sources. Purpose. The purpose of this paper is to analyze the main trends in funding of education to form a basis for the government financial rules. Methods. In the research process, a set of research methods and approaches was used: systemic, structural-functional, analysis and synthesis, comparisons and others. Results. The analysis of statistical data for 2004-2016 on the education sector funding demonstrates that in Ukraine there is a gradual increases in education expenditures, while its share in GDP is at the level of average indicator for the OECD countries, although this share tends to decrease reduce this share. At the same time, the share indicator will be another if taking into consideration the real GDP and the size of the shadow economy. In addition, these costs are used inefficiently. The main source of education funding is public funds, among which the largest share of funds comes from local budgets. The significant reduction of the households occurs share, in the structure of private sector education funding. The largest share of spending goes to the first-level higher education and primary education institutions. Preschool education is funded by the state and local budgets and partly by the private sector; funding for secondary and post-secondary education is mainly carried out at the expense of local budgets; higher and postgraduate education are financed by the government and individuals (households). Conclusions. Priority actions in the education field should be aimed at ensuring a growth of expenditures on education and a significant increase in their efficiency. The issue of optimizing levels and sources of funding for all levels of education is acute. Establishing financial rules in education creates an environment that will not restrict competition in the educational services market. This establishes quantitative benchmarks for the government activities, control of these activities and basis for the formation of certain expectations.

Traps and transformations influencing the financial viability of tourism on private-land conservation areas.

The ability of private conservation organizations to remain financially viable is a key factor influencing their effectiveness. One-third of financially motivated private-land conservation areas (PLCAs) surveyed in South Africa are unprofitable, raising questions about landowners' abilities to effectively adapt their business models to the socioeconomic environment. In any complex system, options for later adaptation can be constrained by starting conditions (path dependence). We tested 3 hypothesized drivers of path dependence in PLCA ecotourism and hunting business models: (H1) the initial size of a PLCA limits the number of mammalian game and thereby predators that can be sustained; (H2) initial investments in infrastructure limit the ability to introduce predators; and (H3) rainfall limits game and predator abundance. We further assessed how managing for financial stability (optimized game stocking) or ecological sustainability (allowing game to fluctuate with environmental conditions) influenced the ability to overcome path dependence. A mechanistic PLCA model based on simple ecological and financial rules was run for different initial conditions and management strategies, simulating landowner options for adapting their business model annually. Despite attempts by simulated landowners to increase profits, adopted business models after 13 years were differentiated by initial land and infrastructural assets, supporting H1 and H2. A conservation organization's initial assets can cause it to become locked into a financially vulnerable business model. In our 50-year simulation, path dependence was overcome by fewer of the landowners who facilitated natural ecological variability than those who maintained constant hunting rates and predator numbers, but the latter experienced unsustainably high game densities in low rainfall years. Management for natural variability supported long-term ecological sustainability but not shorter term socioeconomic sustainability for PLCAs. Our findings highlight trade-offs between ecological and economic sustainability and suggest a role for governmental support of the private conservation industry.

Financial Development And Economic Growth Dynamics In South Asian Region

This study investigates the relationship between financial development and economic growth in the context of five South Asian countries for the period 1985-2014. Pedroni, Johansen co-integration, and panel based Granger causality tests are employed to examine the long and short run relationship dynamics between economic growth and other instrumental variables estimated in this paper. A vector autoregressive model (VAR) is a constructive method of analyzing the impact of a given variable on itself and all other variables by using variance decompositions (VDCs) and impulse response functions (IRFs). To check the robustness of this study, fully modified least square (FMOLS) has been conducted. The results of Pedroni and Johansen co-integration tests confirm that the indicators of financial development have a co-integration relationship with economic growth in the long run. Granger causality test shows that bidirectional causality between economic growth to M2 and also real interest rate and domestic credit to private sector in the short run. Moreover, unidirectional causality exists among the total value of stock traded variable to economic growth, M2 to domestic credit to private sector and M2 to real interest rate in the short run. This paper also documents shocks in stock traded total value has strongly positive response to economic growth. Shocks to domestic credit to private sector, trade openness, M2 have positive response with economic growth but not very strong. The shocks response function of real interest rate to economic growth is negative and quickly returns to the equilibrium. The results of variance decomposition confirm that shocks in the variables of M2 and stock traded total value shock have more impact on economic growth in the long run. FMOLS is employed to check the robustness and shows that financial development and economic growth are holding same relationship except the real interest rate. Policy makers should take immediate steps to minimize the interest rate spread in the south Asian countries. An optimum real interest rate spread will spur the growth process in the south Asian region. The policy makers also should think for transformation of the financial system through upgrading and strictly imposing the financial rules and regulations. The financial institutions must be monitored closely and the policy makers should pay more attention on that issue.

Корпоративная финансовая политика и финансовые правила

The implementation of a corporate financial policy in order to establish the fiscal discipline and fiscal responsibility ethos, to maintain macroeconomic stability, to provide a confidence environment and predictability in the economy, to achieve a balanced generation distribution of financial burdens and benefits and to realize the sustainability of public finance from on a long-term basis has become increasingly widespread in developing countries. In the widespread implementation of the institutional fiscal policy, public deficits resulting from prosperity / monetary policy, played a major role in the financing of tax and non-tax resources, and the impact and consequences of this explicit financing. In this study basic literature, theoretical, philosophical and intellectual background of budgetary policies has been summarized. The article has also studied and examined financial rule applications.

Microfinance and Financial Inclusion. The Challenge of Regulating Alternative Forms of Finance (Introduction)

Following the recent global financial crisis there is a growing interest in alternative finance – and microfinance in particular – as new instruments for providing financial services in a socially responsible way or as an alternative to traditional banking. Nonetheless, correspondingly there is also a lack of clarity about how to regulate alternative financial methods particularly in light of the financial crisis’ lessons on regulatory failure and shadow banking’s risks. This book considers microfinance from a legal and regulatory perspective. Microfinance is the provision of a wide range of financial services, particularly credit but also remittances, savings, to low-income people or financially excluded people. It combines a business structure with social inspiration, often resorts to technological innovations to lower costs (Fintech: e.g. crowdfunding and mobile banking) and merges with traditional local experiences (e.g. financial cooperatives and Islamic finance), this further complicating the regulatory picture. The book describes some of the unique dimensions of microfinance and the difficulties that this can cause for regulators, through a comparative analysis of selected European Union (EU) countries’ regimes. The focus is in fact on the EU legal framework, with some references to certain developing world experiences where relevant. The book assesses the impact and validity of current financial regulation principles and rules, in light of the most recent developments and trends in financial regulation in the wake of the financial crisis and compares microfinance with traditional banking. The book puts forward policy recommendations for regulators and policy makers to help address the challenges and opportunities offered by microfinance.

The Role of Financial Corruption Management in Promoting Sustainable Development

The present study aims at highlighting the role of the financial corruption in supporting the Sustainable Development through finding active systems to put an end to the financial corruption, and treating it through guiding people and advising them not to use it. The importance of the article stems from the spread of the financial corruption and its effect on the Sustainable Development. We try to find the ways to terminate it or treat it for the sake of supporting the Sustainable Development. To meet the objectives, the two researchers used the descriptive method, and they also consulted a number of relevant studies. The Study came up with a number of conclusions, the most important of which is:
 The financial corruption is a group of illegal financial conducts which break the financial rules and regulations which influence the economic growth and also lead to instability.

Book Review on „Romanian Family – Social Evolution and Contemporary Challenges”

Publishing the book Family - Social Evolution and Contemporary Challenges justifies its importance from the very beginning, through its scientific quality and the current nature of the topics presented in the book. Further, it becomes a landmark work given the fact that for the Romanian conjugal space, the scientific literature describes the general marital couple, in theoretical terms, framing conjugality in its classic, features of functionality. From this point of view, the novelty of the book derives from the fact that the topics approached are placed in a modern and postmodern context regarding the new structure of conjugal cohabitation, using social and legal arguments up until the legal alternatives for marriage. Therefore, from a different perspective, the new conjugal perspectives developed in Romania more as first tendencies, target the conjugal relationships with contractual attitudes. For this type of conjugality, the relationships between the partners have an individualist orientation, reason for which the legislative is asked to provide specific legal framework that would better secure their patrimony, would establish financial rules for both partners and would ensure easy access to dissolution and sharing goods. This is the reason why, since 2002, Romania has had 3 projects of legalizing the consensual union, starting from the possibility of legally authenticating the relationships between two heterosexual partners and, in the case of the last two legislative proposals, until the possibility of legalizing the relationships between the partners, regardless of their sexual orientation. How to cite: Vlad, L. (2017). Book Review on Romanian Family - Social Evolution and Contemporary Challenges. Revista Romaneasca pentru Educatie Multidimensionala , 9(1), 121-124. DOI: http://dx.doi.org/10.18662/rrem/2017.0901.09

Public Procurement Issues with Government of India

Why should a country/ Government have a well-considered Public Procurement Policy? 1. Government is a bulk buyer 2. To assure the citizens that their money is being spent in a most judicious manner 3. To build trust among the suppliers and the industry that everybody is free to participate in a most transparent manner 4. An impetus to the industry and the economy, more demand : more production 5. Preferential treatment to specific sectors – SSIs, Co-operatives, Departments, PSUs etc India does not have a single public procurement law, though policies, procedure and manuals are there; 1. General Financial Rules and Delegation of Financial powers Rules, although embodying some internationally accepted best principles, have no force of law. Marked differences in practices are followed across ministries and organisations and states. CVC circulars, MoF OMs…… 2. Only the states of Tamil Nadu, Rajasthan and Karnataka have adopted transparency laws for public procurement

Collateral management: Addressing different regulatory requirements

Regulatory tightening, a major consequence of the global financial crisis (GFC), is one of the many challenges the financial sector is currently facing. To address stricter financial rules, a fast and efficient implementation of the newly issued requirements is one of the key topics, industry stakeholders across the globe need to focus on. This paper provides an overview of major implementation areas while focusing on the regulatory requirements under Dodd Frank (DF) and European Market Infrastructure Regulation (EMIR). In addition, practical guidance for the monitoring and implementation of risk mitigation requirements is provided. The paper concludes on key factors for a successful implementation.

CENTRAL BANKING IN THE NEW ERA

This paper analyzes the evolution of central banking, and in particular the American experience of central banking. It provides projections for the future of central banking in the new era of post 2008. The paper initially demonstrates recent improvements in the financial and banking sectors, regulations and different measures of monetary and financial rules both in the USA and the rest of the advanced economies. Then, it claims institutions, such as central banks, will gain new objectives and more significance in this new era and thus will be given new roles, over time and along with the improvements and deepening in the financial system. The paper argues centuries long central bank evolution is not complete yet and that more objectives should be expected to come forward. In that line, there is need for a shift in the conventional policy measures. New trends in central banking such as the helicopter money, popular nominal GDP targeting regime and the retro developmental central banking are all critically analyzed. The paper provides a breakdown of financial development and central banking activities in a historical context and provides a rationale and a new basis for possible future innovations.

After Weaning-off the Global Fund's Support-Can Thailand’s HIV/AIDS Program Survive?

Global Fund supported HIV/AIDS program in Thailand since 2002, largely for prevention and treatment of key populations, such as men having sex with men, sex workers, injecting drug users and undocumented migrants who cannot easily access to government health services. Global Fund resources facilitate civil society organizations deliver service to these key populations. To sustain AIDS program after weaning-off from Global Fund support, analysis found that the government is able to mobilize adequate domestic resources and sustain it, as the magnitude of funding from the Global Fund supporting Thailand was relatively small, 7-15% of total AIDS expenditure during 2008-2013. Consensus among key actors was reached to maintain the principle of participatory governance where civil society organizations involved in the whole process of resource mobilization, resource allocation and program implementation. The challenges on the bureaucratic rigidity of not able to use government budget to contract civil society organizations can be overcome by amendment of public financial management rules. Given the strong intersectoral actions and non-state actor roles, there are more enabling factors than barriers, supporting smooth transition and sustaining AIDS program and ending the diseases after weaning off from Global Fund.

The digital currency challenge for the regulatory regime

ABSTRACT There are some puzzles in digital currency matter. First, finding the best definition. Digital currencies have specific features that make necessary to mention in its definition. The second puzzle is the function of Internet. It is important because the Internet is the vehicle for the good functioning of digital currency schemes. The network provides all the facilities to digital currency, but it also may be a place for criminal activity. The third puzzle is the relation of digital currencies and the e-commerce. The electronic commerce is an antecedent of virtual currencies. The necessity to make the payment quicker and easier makes possible the growth of virtual currencies. Finally, there is the puzzle of the regulation. A complete regulation does not exist in the digital area. It is the nature of the Internet. It is a place where there are no financial rules. Criminal activity and improper use of Internet will increase over time.

Financial Compliance in the European Union: A Cross‐National Assessment of Financial Correction Patterns and Causes in Cohesion Policy

AbstractEU compliance scholarship has expanded rapidly over the last decade but has neglected the financial dimension of compliance in terms of Member States' conformity with EU financial rules on the regularity and legality of EU spending. This article makes the case for a multi‐dimensional approach to compliance research and provides the first cross‐national assessment of financial compliance in EU Cohesion policy, employing quantitative and qualitative methods. To account for cross‐national variations in the application of financial corrections for non‐compliant spending, several factors are explored, focusing on regional autonomy, administrative capacity and goodness‐of‐fit. The quantitative analysis finds strong support for the impact of administrative capacity on cross‐national compliance patterns and some evidence for the role of goodness‐of‐fit. Contrary to expectations, regional autonomy is not associated with compliance in this critical case of EU multi‐level governance. Qualitative analysis reinforces these findings while revealing additional factors of relevance.