Investor Protection Research Articles

A semantic notation for comparing global high-resolution coastal flooding studies

IntroductionGlobal coastal flooding maps are now achieving a level of detail suitable for local applications. The resolution of these maps, derived from widely available open data sources, is approaching that of local flooding maps (0.5–100 m), increasing the need for a standardized approach to evaluate underlying assumptions and indicators for local applications.MethodsThis study introduces the Waterlevel, Elevation, Protection, Flood, Impact, Future (WEPFIF) notation, a structured notation for documenting and comparing key methodological choices and data variations across global coastal flooding studies. This approach enhances the understanding and explanation of the fitness-for- purpose of flood maps. This notation builds on commonly used methodological choices, dataset variations, and model approaches in global flooding risk research. Analysis of these workflows identifies common elements and highlights the need for a more structured reporting approach to improve comparability.ResultsApplying the WEPFIF notation to a case study in the Netherlands reveals significant variations in flood risk assessments originating from differences in Digital Elevation Model (DEM) and water level selection, and inclusion of protective infrastructure.DiscussionWEPFIF, by annotating these methodological variations, enables more informed comparisons between local and global flood studies. This allows researchers and practitioners to select appropriate data and models, based on their specific research objectives. The study proposes tailored approaches for three common types of flood studies: raising concern, optimizing flood protection investments, and representing the state of coastal risk.

Impact of Tourism Activity on Urban Land and Housing Market Activity: Evidence from Croatia

This paper explores the interplay of tourism activity, local expenditures on environmental protection, and the decisions to purchase apartments, family houses, and urban land. A random effects panel model is estimated by using data from cities and municipalities from 2012 to 2021 in Croatia, a European economy heavily dependent on tourism. The findings suggest that increasing tourism intensity at a destination motivates apartment purchase decisions but does not influence family house purchases as significantly. Municipal environmental expenditures show a positive relationship with apartment and family house purchase decisions, suggesting that investments in environmental protection may enhance the attractiveness of urban living spaces, leading to increased demand for apartments. Finally, the results reveal that growth in urban land purchases for housing construction is linked to increased short-term rentals and higher municipal housing expenditures. This research contributes to understanding housing market behavior. The results provide actionable insights for policymakers in tourism-dependent economies, emphasizing the need to balance tourism growth with housing affordability and sustainable urban development.

Corporate Environmental Protection Investment and Debt Financing Costs: Evidence from China

Corporate environmental protection investment is crucial for reducing pollution levels and controlling harmful substance emissions. We examine the relationship between corporate environmental protection investment and debt financing costs, utilizing a sample of A-share listed companies in China from 2011 to 2020. We find that debt financing costs are negatively related to corporate environmental protection investment. Green technology innovation and ESG performance are the main channels. Environmental regulations, air quality, and green finance impact the interplay between corporate environmental protection investment and debt financing costs. Moreover, our heterogeneity analysis underscores that enterprises facing looser financing constraints and low levels of pollution are more likely to mitigate debt financing costs by investing in environmental protection. The conclusion provides policy implications for guiding enterprises to consider environmental investment as a long-term strategy and provides a theoretical foundation for the government to enhance its guiding role.

Beyond Sharpe ratio: comparison of risk-adjusted performance of Shariah-compliant and conventional indices

Purpose Upper bound on Sharpe ratio helps to evaluate the risk-adjusted performance in real market setting. The purpose of this study is to evaluate the performance of Shariah-compliant indices (SCIs) and also estimate the upper bound on Sharpe ratio in real-market setting. For comparison, the authors also report the same statistics for conventional indices (CIs). Design/methodology/approach This study considers returns of 12 indices from Asia-Pacific and the USA for the time period May 31, 2013-Aug 25, 2022. These indices are further classified as small-, mid- and large-cap indices. The upper bound is estimated in three settings, an unconstrained setting, correlation constraint and copula constraint. Findings The authors found that upper bound estimation is sensitive to both the choice of index, geographic location and size of constituents within the index. Interestingly, SCIs outperform CIs both in terms of Sharpe ratio and upper bound estimations. The ability of SCIs to achieve high Sharpe ratio boosts investors’ confidence. The results are robust even after introducing correlation and copula constraints to the model. Practical implications Any violation of the upper bound on Sharpe ratio is not necessarily an indication of fraud or dubious Sharpe ratio. It should be interpreted only as a signal for inflated risk-adjusted performance and requires further investigation. Together with risk-adjusted performance, fund managers should report upper bounds to insure investor protection. Originality/value Many studies have compared the risk-adjusted performance of SCIs and CI. To the best of the authors’ knowledge, this study is the first effort to evaluate and compare the upper bounds on Sharpe ratio of SCIs in a real-market setting.

Ownership structure and market competition in the Gulf cooperation council

Purpose This study aims to examine the impact of sector market competition on the ownership structure of publicly listed firms in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The authors employed the system-Generalized Method of Moments (GMM) model for panel data, utilizing over 93,000 data points from 6,215 firm-years across six GCC countries from 2010 to 2020. Findings The results reveal a statistically significant negative relationship between total block holders and institutional ownership for both Herfindahl–Hirschman and Tobin’s-Q competition proxies. This finding suggests that companies operating in monopolistic or oligarchic sectors are likely to attract block holder investors. Moreover, various firm- and country-level factors, including return on assets, growth, size, gross domestic product and political crisis, also exhibit significant relationships with specific ownership variables. Practical implications Investigating the influence of competition on block holders’ ownership in the GCC region may provide new insights into the role of competitive markets in fostering economic development, promoting investor protection and shareholder rights, enhancing market efficiency and competitiveness and implementing effective reform policies and strategies. Originality/value Despite the significant contribution of GCC countries to global oil commodities, limited market competition research has been conducted in these markets. This study aims to fill this gap by investigating the impact of various firm-, industry-, and country-level factors on firm ownership structure in the GCC region, focusing on the influence of market competition.

Do CSR Activities Influence Cash Holding Policy in European Countries?

The purpose of this article is to check whether socially responsible activities influence the cash holding policy in European companies. Using a sample of 1,352 European companies during 2006-2015, we find that companies with good social performance hold less cash than companies with lower social performance. We also found that in European countries that guarantee good investor protection, CRS companies accumulate less cash. Taking into account the legal origin of the countries, we have noticed that socially successful companies operating in common law are less likely to hold high cash levels. These resuslts suggest that in the presence of good environment that ensures good investor protection, the negative effect of CSR activities on the level of cash holding is accentuated.

Assessing Social Sustainability Efficiency in European Countries: Focusing on Health and Well‐Being

ABSTRACTThis study investigates the challenges of achieving social sustainability efficiency in European countries, especially in health and well‐being, under sustainable development goal 3 amid demographic aging pressures. Using an innovative modified circular dynamic three‐stage systematic network data envelopment analysis model, this research evaluates the influence of social protection investments on healthcare and well‐being systems. The findings reveal that Denmark, Estonia, France, and Germany demonstrate optimal efficiency, while Lithuania, Luxembourg, the Netherlands, and Slovenia require strategic improvements, particularly in healthcare efficiency. Policy recommendations underscore the need for enhanced healthcare technology, occupational safety, and adaptive strategies to support social sustainability across 24 countries from 2016 to 2020. This approach offers a comprehensive efficiency framework and actionable insights to guide future policy development to address European healthcare efficiency gaps.

Removal of Company Directors under the Securities Investor and Futures Trader Protection Act: Comment on the Intellectual Property and CommercialCourt Civil Judgement No. 24 in 2023

Removal of Company Directors under the Securities Investor and Futures Trader Protection Act: Comment on the Intellectual Property and CommercialCourt Civil Judgement No. 24 in 2023

A review of the limitation of legitimate expectation principle in FET Claims in energy regulatory disputes: Can a balance be achieved?

This article explores the intricate interplay between the right of states to regulate in the context of environmental regulations aimed at decarbonization and an investor's right to investment protection, particularly focusing on the Fair and Equitable Treatment (FET) standard in international investment law. With the increasing importance of environmental regulations such as the US Greenhouse Gas Standards and Guidelines for Fossil Fuel-Fired Power Plants, in the transition to cleaner energy sources, the potential economic impacts on investments and resulting investment disputes could be huge, making the balancing of these competing interests a topical issue. The article delves into the prominence of the FET standard in investment protection and its evolution in international investment law. It argues that the limitation on the legitimate expectation element of the FET standard in modern times poses challenges in balancing states' rights to regulate with the protection of foreign investments in decarbonization disputes. The author asserts that recent developments in international investment law, exemplified by treaties like the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and the United States-Mexico-Canada Agreement (USMCA), signal a shift towards prioritizing states' right to regulate over investment protection. By analyzing the limitations on legitimate expectation and investment protection in modern times and the implications for energy investments in the era of decarbonization, the article aims to shed light on the complexities of reconciling the competing interests of states and investors in the evolving landscape of international investment law. Ultimately, this author contends that achieving a balance between these interests is increasingly challenging and may require a reevaluation of the prevailing norms in investment protection.

Corporate Governance: A Best Practice for the Sustainable Success in the Indian Context

Corporate governance is a cornerstone of effective business operations and sustainability. The paper explores the fundamental principles, benefits, challenges, and best practices of corporate governance, highlighting its critical role in fostering accountability, transparency, and long-term value creation. Principles of Corporate Governance mainly aim to support listed companies access financing from capital markets as well as protect investors, and to support companies' sustainability. The study also focuses on the benefits of best corporate practices and also highlights the best practices of the companies. The paper seeks to address the challenges by identifying key problem areas, analysing their impacts, and offering recommendations to enhance governance structures and practices. Finally, the study made a keen analysis on the extent to which the Indian companies implemented the so called best practices for the sake of the protection of its investors. The study ends with the note that the implementation of the best corporate governance practices is not free from challenges.

Retail Investor Protection in the Age of Digital Trading: Regulatory Challenges and Solutions

The research analyzes the regulatory challenges posed by these platforms and to develop effective solutions. The study examines existing regulatory frameworks, such as the Dodd-Frank Act, MiFID II, and the Commodity Exchange Act, as well as market data on trading behaviors and feedback from retail investors and regulatory bodies. Key findings include the identification of significant regulatory gaps, particularly in the areas of anti- money laundering (AML) and know-your-customer (KYC) requirements, and the lack of clarity in the classification of digital assets as securities or commodities. The significance of these findings lies in their implications for enhancing investor protection and market stability. The broader implications suggest that a more integrated and technology-driven regulatory framework could enhance transparency, prevent market manipulations, and ensure a level playing field for all market participants. This research contributes to the ongoing discourse on digital asset regulation to safeguard retail investors in the digital trading era.

Transition of Crypto Asset Supervision From Bappebti to OJK

This article discusses the impact of rapid technological advancements in information and communication on the financial system, particularly the shift from cash-based transactions to non-cash payment methods and the emergence of cryptocurrencies. The increased adoption of digital currencies, such as Bitcoin and Ethereum, highlights the need for a comprehensive regulatory framework to ensure investor protection and financial stability. This study focuses on the role of Indonesia’s Financial Services Authority (OJK) in regulating cryptocurrencies, especially following the enactment of Law No. 4 of 2023, which mandates OJK’s involvement in overseeing these digital assets. The research utilizes a normative legal approach, leveraging a literature review to gather relevant literature, regulations, and legal frameworks on cryptocurrency management. Key findings reveal the existence of a dual regulatory framework involving both OJK and the Commodity Futures Trading Regulatory Agency (Bappebti), which may lead to potential conflicts and challenges in supervision. This article aims to provide recommendations for regulatory harmonization between OJK and Bappebti to enhance regulatory effectiveness and protect investors in the rapidly evolving cryptocurrency landscape. Through this analysis, the study seeks to contribute to a deeper understanding of the regulatory challenges faced by cryptocurrencies and propose policy solutions that can strengthen OJK’s role in this sector..

Sustainable Commuting: Active Transport Practices and Slovenian Data Analysis

This study examines the influence of transportation policies and urbanisation on cycling participation and environmental sustainability in Slovenia. Factor and regression analyses were employed. The yearly data from 2008 to 2021 were isolated. A modest increase in urban cycling frequency was observed, bolstered by investments in environmental protection and safety enhancements; however, additional evidence is needed to confirm the long-term effects (H1). Furthermore, while increased cycling was linked to a reduction in CO2 emissions and improved air quality, the overall environmental benefits were found to be affected by other factors, such as motorisation and public transportation in summer (H2). The study revealed that the introduction of reduced urban speed limits and expanded cycling lanes significantly enhanced cycling safety and desirability, leading to a shift from car usage to bicycles (RQ). These findings indicate that cycling could play a vital role in advancing Slovenia’s sustainable development goals, emphasising the need for continued investments and supportive urbanisation policies.

Accredited investor tests: How to balance, access, entrepreneurial funding, and investor protection?

AbstractRegulators seek to balance investor protection with the costs of that protection. This often leads to a distinction between “accredited” and “retail” investors. Only “accredited” investors can invest in certain “risky” or “illiquid” assets, including start‐ups and wholesale funds. But what should be the “bar” to be classified as “accredited”? Should people be able to qualify via income, wealth, or education? Should they be able to self‐certify? Thus, this article considers the situation in the US, UK, and Australia and argues in favour of letting people qualify via wealth, income, and education and being able to self‐certify.

Intelligent water quality prediction system with a hybrid CNN–LSTM model

ABSTRACT Water pollution remains a longstanding challenge globally, prompting substantial investment in water quality protection. The integration of advanced machine learning models offers promising avenues for accurate water quality prediction, enabling proactive measures to safeguard water sources. Presently, water quality assessment relies predominantly on physical and chemical metrics. This study developed MultiLayer Perceptron (MLP), eXtreme Gradient Boosting (XGBoost), long short-term memory (LSTM), and a hybrid CNN–LSTM model to forecast pH and dissolved oxygen (DO) levels. Results demonstrated the hybrid model's superior performance, with mean squared errors (MSEs) of 0.0015 and 0.0361 for pH and DO prediction, respectively. For Water Quality Classification (WQC), Random Forest (RF), k-Nearest Neighbors (kNNs), Support Vector Machine (SVM), and Light gradient Boosting Machine (Light GBM) were employed, with SVM achieving the highest accuracy at 88.75%. The research underscores the effectiveness of the CNN–LSTM model in predicting pH and DO levels. Leveraging these predictions as inputs to the SVM model offers valuable insights, particularly in regions where conventional monitoring methods face limitations. This streamlined approach, requiring only two parameters, signifies a significant advancement in accurate water quality prediction.

The Structure of the Legal Institute of the Protection of the Retail Investor

The article is an attempt of a structural approach to the protection of the retail investor. “Structural” in this contest includes the necessity to take into consideration the role of the retail investment market in the financial system of the state, the risky nature of this market, including the potential risky consequences which it can create for the state, therefore the public interest of the state is of “indirect” nature and the “investor protection” is likely to be understood as the fare redistribution of the risks on the retail investment market. The article suggests the four main areas where the relevant measures are to be undertaken.

The Legal Regime of the Investment Protection and Promotion Agreement

Introduction: the paper deals with a new contractual structure – the investment protection and promotion agreement, which is one of the investment instruments aimed at stimulating interaction between a public legal entity and a private legal entity. According to the author, Investment Protection and Promotion Agreements are part of a group of investment agreements mediating the mechanisms of a public-private partnership. The purpose of the paper is to study the problems related to the concept, legal nature, and content of the investment protection and promotion agreement. The author also examines the place of the agreement under study in the system of investment contracts and the relationship with related concepts and categories, including the issue of applying the provisions of civil legislation to it. Methods: both the general scientific and specific scientific methods of scientific cognition are used, among which one can distinguish systematic, dialectical, structural and functional, etc. The methods of formal legal, comparative law, and legal forecasting allow taking into account the specifics of the legal nature of the concepts under study, comparing homogeneous legal phenomena, and identifying prospects for the development of legal relations in dynamics. Results: an analysis of the new contractual structure on attracting investments – the investment protection and promotion agreement led to the conclusion of the legislative confusion and difficulty in determining its content and legal nature. Conclusions: the author concludes that it is difficult to determine the legal nature of the investment protection and promotion agreement (IPPA) today due to the imperfection of the Federal Law “On the Investment Protection and Promotion in the Russian Federation,” which does not allow to unequivocally answer the question of whether an investment project should be implemented within the framework of the IPPA itself, or whether it is also necessary to conclude an additional agreement. It is claimed that the IPPA is an unnamed agreement that has no analogues in the Russian legislation. It is concluded that the structure of the IPPA includes the implementation of an investment project. According to the author, until clarification is made to the Federal Law “On the Investment Protection and Promotion in the Russian Federation,” the IPPA will not be implemented in practice.

Facilitator or figurehead? The impact of academician shareholder on corporate innovation: Evidence from China

Investment by academicians with resource advantages can serve as a vital channel for promoting innovation. In this study, we investigate whether and how academician shareholders who are esteemed fellows or candidates of the Chinese Academy of Sciences and the Chinese Academy of Engineering impact corporate innovation. Using a sample from China, we document a positive association between academician shareholders and corporate innovation. Our channel analysis reveals four potential channels through which academician shareholders promote corporate innovation: innovative human capital, investor protection, top management team attention to innovation and reduction in innovation uncertainty. Moreover, in line with the resource-based view and incomplete contract theory, our findings indicate that the positive association is more pronounced in firms with directors appointed by academician shareholders, without state ownership, and with multiple large shareholders. Finally, our findings indicate that academician shareholders can enhance open innovation, attract government subsidies, shorten the time it takes for corporate patent applications to be granted, and improve firm performance.

Monitoring and Evaluation of Coastal Ecological Carrying Capacity in the Context of Sustainable Development: A Case Study of Shandong Province

The research on coastal ecological carrying capacity holds great significance for the sustainable development of coastal areas and is a focal point of the United Nations Sustainable Development Goals (SDGs). This study coupled multi-source data and ecological analysis models to construct a multi-level evaluation system and analysis method for the coastal ecological carrying capacity of Shandong Province so as to realize the dynamic monitoring and evaluation of the coastal ecological carrying capacity of Shandong Province from 2010 to 2020. The results indicated: (1) The ecological carrying capacity of the coastal zone in Shandong Province showed a “U”-shaped development trend, with 2016 being a turning point. (2) The economic development–social support system gradually became the main force driving the overall improvement of coastal ecological carrying capacity. (3) The system coupling coordination degree of ecological carrying capacity in the coastal areas of Shandong Province showed a trend of first decreasing and then increasing, with a high level of internal coupling coordination of carrying capacity. (4) Per capita GDP, environmental protection investment, per capita water resources, and other indicators were the main factors driving the changes in the ecological carrying capacity of the coastal zone. This study aims to provide methodological reference and data support for coastal ecosystem monitoring, assessment, and climate change response.

Asset pricing in African frontier equity markets

This paper undertakes a horse races style comparison of the efficacy of a range of multifactor asset pricing models in explaining the cross section of stock returns in African securities markets. Valuation factors used include size, book-to-market value, momentum, operating profit, asset growth or investment, liquidity and investor protection. Using monthly returns of 375 blue chip firms from 8 African equity markets over 23 years, we undertake a horse-race style comparison of various classes of augmented CAPM models. We show that both the Fama & French (2015) five factor and Fama & French (2018) six factor framework yield the highest explanatory power. Analysis of costs of equity and optimized portfolio opportunity set simulations reveal substantial differences arising and borne by practitioners from the contrasting application of different asset pricing models underscoring the timely importance of our study.