Market Regulation Research Articles (Page 1)

This study examined the co-movement between New York and Shanghai stock markets, and twelve African stock markets, before, during, and after the COVID-19 pandemic. Daily composite indices from January 2016 to March 2023 were used for the study. The study employed the continuous complex Morlet wavelet transform which is best for time-frequency domain in terms of magnitude, direction, and lead-lag in localised linearity, and stationarity. The results revealed notable co-movements between the two advanced markets and some African stock markets. However, considerable number of co-movements between the two advanced markets and most African stock markets were not significant. Furthermore, the study found that the nature of co-movement between advanced and African markets reflects interdependence more than contagion. The results further indicate that, the long-held assertion that African stock markets are resilient to fluctuations in advanced markets during periods of global turbulences if gradually fading away. This study addresses a critical gap in the literature concerning the influence of pandemics on co-movement of markets with a specific focus on co-movement between stock markets in advanced economies and those in Africa. In addition, it departs from previous studies by employing a bivariate wavelet approach which effectively handles non-linearity, non-stationarity, structural breaks and time localization. We recommend that policymakers incorporate both time and frequency characteristics of markets into market regulations and strategies. Investors should employ risk minimisation strategy through the creation of international portfolios between global and emerging African markets to enhance their reward from investments in stocks, albeit with due caution.

Compared to financing options like bank loans, equity pledge financing is widely recognized among shareholders of listed companies due to its convenience, ability to raise funds at a low cost while retaining control. However, when a company's stock price declines to the liquidation threshold, pledged shareholders face the risk of losing control over their shares, which heightens their motivation to appropriate corporate assets or engage in earnings management to stabilize stock prices. State-owned enterprises benefit from natural political connections with the government, granting them advantages in financing and tax policies, as well as superior margin-call capabilities. Moreover, due to stricter and more complex conditions for equity transfers in state-owned enterprises, pledgees are more inclined to use private negotiation to cover loans. In contrast, private enterprises lack these policy and negotiation advantages, making their controlling shareholders more likely to resort to equity pledges to meet financial needs. However, in the event of a stock price drop, they often lack the capital to adequately cover margin calls, leading them to focus on controlling stock price fluctuations through earnings management. Thus, after pledging equity, private enterprises face intensified risks of asset appropriation and earnings management, prompting auditors to establish higher audit pricing to compensate for additional audit resources and hedge against increased audit risks.This study analyzes the relationship between controlling shareholders' equity pledges and audit pricing using data from China's A-share private listed companies between 2015 and 2020. The findings indicate a significant positive relationship between equity pledges by controlling shareholders and audit pricing, with higher pledging levels leading to increased audit fees. Further analysis reveals that this significant positive relationship only exists in regions with higher marketization and among firms audited by the "Big Ten" accounting firms. The conclusions enrich the literature regarding the economic consequences of equity pledges and factors influencing audit pricing, providing valuable insights for corporate governance and market regulation.

Abstract While the volatile and unregulated cryptocurrency market is growing rapidly, little is known about what drives individual investor motivation to participate. This study investigates how trust, a proven predictor for stock market participation, is linked to cryptocurrency participation among 1,519 individual investors in Denmark, Finland and Sweden, countries characterised by high levels of digital adoption, trust and stock market participation. Our results show that individuals who trust strangers in relation to financial matters are more prevalent cryptocurrency participants, both in terms of current holdings and intended future holdings, compared to less trusting individuals. Furthermore, trust reduces how risky individuals consider cryptocurrencies to be and cryptocurrency knowledge raises people’s risk tolerance. Both trust and knowledge, therefore, contribute to increased cryptocurrency participation. Our study contributes to the debate about the mitigating role of trust for household investment decision making, extending its scope to the novel cryptocurrency market. This research is relevant for actors in the cryptocurrency market including developers, service providers, investors, and financial market regulators.

This review critically examines government intervention in agriculture through policies and bilateral agreements, focusing on mechanisms such as the Minimum Support Price (MSP), input subsidies, crop insurance, extension services, and market regulations. A review of existing literature reveals that although these interventions aim to support farmers and stabilize the agricultural economy, their implementation is often flawed. Key findings highlight systemic gaps: MSP programs face delays and insufficient procurement; input subsidies suffer from targeting inefficiencies and elite capture; crop insurance adoption remains limited due to accessibility barriers; and the federalization of extension services has led to institutional fragmentation. The study has deduced that, despite considerable effort by the government, its efficacy and accessibility to common farmers remain far-fetched, and it is confronted with several technical and infrastructure shortcomings.

ABSTRACT In this paper, we investigate the tail dependence and risk spillovers between International Energy Exchange (INE) crude oil futures and global crude oil benchmarks (WTI and Brent), as well as its underlying spot markets, by integrating the ARMA–GARCH‐skewed‐ model with the Copula‐CoVaR framework. Using high‐frequency data with synchronized trading windows, we find consistently strong tail dependence across all sessions, supporting the role of INE as an emerging Asian benchmark. Risk spillovers are asymmetric, with downside risk dominating. INE functions as an information sender during daytime trading, characterized by notable volatility transmission, whereas nighttime spillover is more stable and symmetric. Moreover, INE is more sensitive to extreme events such as COVID‐19 pandemic and the Russia–Ukraine conflict during its domestic trading hours. Our findings offer practical implications for market regulation, emphasizing the need to improve nighttime liquidity and enhance systemic risk monitoring under time‐varying uncertainty.

Purpose The purpose of this study is to investigate the various motivational factor behind the consumer's intention to buy organic food. It also examines how their intention affects actual buying behaviour towards organic food. The motivation, opportunity and ability theory served as the conceptual underpinning for the theoretical framework of this paper. Design/methodology/approach The empirical study was based on responses from a survey completed by 284 individuals. A PLS based structural equation modelling method was used to analyse the collected data. Findings Results revealed that among all motivational factors, knowledge of organic food and health consciousness strongly and positively affects consumer's intention to buy organic food. Further, organic food availability as a consumers' opportunity and their ability in terms of willingness to pay for organic products followed by intention to buy organic food, significantly and positively affect actual buying behaviour. Practical implications The findings have implications for organic food producers, distributors, and market regulators. The study's concepts and recommendations may assist organic food retailers and marketers in increasing sales and satisfying customers. This research should help to fill the gap in knowledge about organic food in India and encourage healthier and sustainable consumption practices. Originality/value The organic food market has not been extensively studied, and the studies that have been done have mostly been limited to the developed nations. Also, motivation, opportunity, and ability theory has been utilised in this study in the context of a developing country like India.

The rapid development of the digital financial assets market (hereinafter referred to as CFA) in the world requires their government regulation. The task is to study and identify the positive aspects in the experience of advanced countries in regulating the digital asset market, to consider Russian practice, its advantages and disadvantages. The subject of the research is the state regulation of the digital asset market in the countries of the world and Russia. The purpose of the work is to summarize the foreign experience of regulating the digital asset market and to determine the priorities of CFA regulation in Russia. In the course of the study, comparative analysis and a systematic approach, as well as other general scientific methods , were used. The source data base consists of federal laws and by-laws, including regulations of the Bank of Russia, and other statistical data. Regulatory practices in a number of developed countries have been studied. The experience of the European Union is reviewed, where legislative initiatives are being promoted to simplify cross-border expansion and mitigate regulatory arbitration, which will allow the EU to form the world’s largest digital asset market with maximum legal and regulatory clarity. As a result of the study, it was found that cryptocurrencies are not legal in all jurisdictions. One third of countries do not have digital assets and do not plan to regulate them, and half of all countries want to create individual regulation. It is noted that the Russian law regulating digital financial assets, which recently came into force, imposes significant restrictions on the use of CFAs with simultaneous prospects for their use for those who are in the register of the Bank of Russia. The conclusion is drawn : the active development of the digital asset market requires new approaches to ensuring digital security and reducing risks from the introduction of new legal norms, more advanced government regulation that would take into account the experience of advanced countries of the world.

Breaking barriers to sustainable jobs and promoting inclusive employment are key goals of the 2030 Agenda, with SDG8 Target 8.5 aiming to achieve decent work for all, including persons with disabilities (PWDs). This paper contributes to the scholarly debate by empirically examining how various regulatory areas, including credit market regulation, labor market regulation, business regulation, and the freedom to compete, influence the informal employment of PWDs in 15 countries between 2007 and 2022. The empirical investigation is conducted for the entire population with disabilities, as well as for adults and youth with disabilities. The analysis employs a dynamic labor demand function estimated through the two-step system GMM method to account for adjustment costs within the labor market. In addition, the Feasible Generalized Least Squares method is employed to assess the robustness of the results. The findings reveal significant heterogeneity in the effects of regulation on the informal employment of PWDs, with substantial differences between adults and youth. At the aggregate level, greater flexibility in most regulatory areas reduces informal employment of PWDs, except for labor market regulation. Upon examining age cohorts, the outcomes for adults exhibit similarities to the aggregate analysis. In contrast, more flexible regulations increase informal employment among young people with disabilities, except for business regulations, which exert negative impacts, and credit market regulations, which demonstrate no significant effects. This study recommends that policymakers support formal business development for PWDs and implement anti-discrimination laws. For youth with disabilities, targeted initiatives, including financial inclusion and wage subsidies, are essential to convert regulatory flexibility into formal employment opportunities.

As the foundation stage of an individual's lifelong development, the science of preschool education management system directly affects the quality of education and children's development trajectory. In recent years, the management of preschool education in China has made remarkable progress under the impetus of policies, but there are still structural contradictions in the aspects of institution building, market regulation and family synergy. From the perspective of educational psychology, this paper combines Piaget's cognitive development theory, Vygotsky's socio-cultural theory and ecosystem theory to systematically analyze the deep-seated influence of China's traditional education model on preschool education management, and compares the preschool education management experiences of New Zealand, Malaysia and other countries, to explore the path of applying theories of educational psychology in the reform of management system. The study finds that the current management of preschool education in China is characterized by imperfections in the system, excessive marketization, and cognitive bias of families, while international experience shows that a collaborative management model based on the laws of children's psychological development can better maximize the effectiveness of education. The study suggests that a reform framework integrating the principles of educational psychology be constructed from the three dimensions of policy improvement, home-school collaboration, and teacher empowerment to provide theoretical references for the scientific development of preschool education management in China.

Subject. This article examines the activities of hedge funds, analyzes their strategies, and the use of derivative financial instruments for hedging risks and maximizing profits. Objectives. The article aims to analyze and structure data on hedge funds from open sources and scientific research, assess the impact of hedge funds on the stock market, and evaluate the development prospects of the Russian hedge fund market. Methods. For the study, I used the method of analysis. Results. Based on the analysis of scientific articles and research regarding hedge fund activities and the assessment of their strategies, the article finds that the use of derivative financial instruments in hedge fund strategies is effective. The article also describes the prospects of the Russian market for interval mutual investment funds. Conclusions and Relevance. Hedge funds use a wide range of strategies and financial instruments and often deliver better results compared to the market. However, not all funds are aimed at hedging risk, so the investor must choose the fund carefully. The results obtained can be used by private and corporate investors to familiarize themselves with the complex structure of hedge funds, as well as in public administration, since regulation of the hedge fund market is necessary.

The process of closing the account transactions related to the purchase and sale of shares on the stock exchange through reconciliation between the buyer and seller is called "settlement". The settlement process takes place two trading days after the transaction, on the “T+2” day. The study covers the top 10 stocks on the Borsa Istanbul (BIST), excluding liquid banks. The monthly clearing shares of all brokerage firms trading these stocks between August (2024-2025) were obtained from the Matriks IQ data terminal, and the concentration of brokerage firms on the stocks and the competitive levels of the stocks were analyzed using the Herfindahl-Hirschman Index (HHI). The analysis revealed that the stocks with low concentration and high competition are EKGYO, EREGL, KCHOL, SASA, THYAO, and TUPRS. Stocks with medium concentration and competition, but where a few brokerage firms have higher shares in the clearing shares, were found to be ASELS, BIMAS, SAHOL, and TCELL. No stock was identified in the analysis result with a high HHI value indicating high concentration and limited competition. In conclusion, changes in brokerage firms' trading shares are important in terms of companies' market valuation. Analysis using the HHI index can be used as a tool for investors and market regulators to establish the existence of competition and measure market dynamics.

The article describes the Republic Poland experience of regulation access to the road transport market in accordance with Regulation (EC) No 1071/2009 of the European Parliament and of the Council of 21 October 2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator and repealing Council Directive 96/26/EC. It is described how Poland have been implemented the requirements for the good repute, the financial standing and the professional competence. The functions of Polish central and local executive bodies regulating domestic and international road transport are defined and the procedures for the loss of an good repute are described. A comparative analysis of the legal regulation of the road transport market in Poland and Ukraine is presented. Discussion questions and proposals regarding the implementation EU legislation concerning road transport market in Ukraine are provided. Keywords: European Union, Poland, Ukraine, road transport, regulation, market access, good repute, financial standing, carrier, transport manager, certificate of professional competence, electronic register, General Inspectorate, voivodships, counties.

In 2021-2023, the volume of investments in the crowd-lending market showed more than threefold growth, but the corresponding volume of unfulfilled obligations doubled. Global and Russian experience confirm that the crowd-lending market has great potential, which depends on effective risk management. The purpose of the study is to propose measures to regulate the risks of the Russian crowd-funding market. Research hypothesis: the mechanism of operation of the crowd-lending market is similar to the exchange-traded corporate bond market, which suggests the possibility of adapting individual regulatory mechanisms of the corporate bond market to the crowd-lending market. The scientific novelty of this research lies in the fact that it is the first time an analysis of the Russian crowd-lending market by level of credit risk has been conducted. The comparison of the regulatory mechanisms of the exchange-traded corporate bond market and the crowd-lending market is also original. Furthermore, new measures for managing the risks associated with the Russian crowd-lending market have been proposed. Research methods: grouping, FOREL clustering, comparative analysis. Main results: 1) in the Russian crowd-lending market, 2 groups of participants were observed annually: with zero and moderate risk, groups with high credit risk were present sporadically. When using FOREL clustering, it was revealed that the group of investment platform operators with zero and moderate credit risk is heterogeneous; 2) the common features and differences between the regulation of the exchange-traded corporate bond market and the crowd-lending market are discussed; 3) risk management measures in the crowd-lending market are proposed (quarterly reporting by the platform operator on the share of outstanding obligations in the total volume attracted investments with the establishment of a recommended threshold value for such an indicator; the introduction of a representative of borrowers among the participants of the investment platform to protect their rights and interests; the inclusion of the procedure for dealing with overdue debts in the rules of the investment platform).

This study examines the relationship between labour market flexibility and pro- ductivity, but with emphasis on the role of human capital in emerging economies. Labour market flexibility has primarily been regarded as a motivation for economic growth since it enables companies to adapt to shifts in market conditions through adjusting employment and wages. Alternatively, productivity gains are highly re- liant on labor quality, competence, and responsiveness. Human capital is thus the mechanism for adjusting the impact of flexibility in the labor market to economic performance. Based on theoretical assumptions and evidence, this paper discusses how productivity performance is influenced by labor market flexibility and adjusted by the availability and quality of human capital. The evidence points to the dual nature of flexibility: it can improve the efficiency of work, promote investment, and promote innovation, but undermine job security, wage protection, and long-term skill acquisition in its excess. The argument is even stronger though for develop- ing economies, where institutions, education systems, and labor market regulation are still in construction, so that the link between flexibility and human capital is even more pertinent. The conclusions are likely to shed light on how governments and policymakers can reconcile flexibility with investment in human capital in an attempt to achieve sustainable productivity growth. With cross-country data, the study makes a contribution to economic literature regarding competitiveness in emerging markets, human capital development, and the economics of work.

The legal framework contained in Articles 90 to 93 of the Law Number 8 of 1995 on Capital Market affirms the prohibition of market manipulation practices. Nevertheless, the effectiveness of law enforcement is often hindered due to the complexities involved in proving market manipulation, which include the perpetrators' sophisticated modus operandi, limitations of legal instruments, and weaknesses in investigative mechanisms. The PT Asuransi Jiwasraya case, as adjudicated in Judgment in the Criminal Corruption Case No. 34/Pid.Sus-TPK/2020/PN.Jkt.Pst dated October 12 th, 2020, illustrates the evidentiary complexities of market manipulation, given that such offenses were committed by white-collar criminals in a structured manner, employing nominees so that transactions appeared administratively legitimate. This research adopts a normative juridical method, using a statutory approach and case study analysis to examine regulatory weaknesses and propose an applicable evidentiary model. The findings reveal that the absence of specific evidentiary rules, the weakness of tracing mechanisms for market manipulation, and the limited capacity of law enforcement authorities constitute major obstacles in addressing such cases in Indonesia. The study proposes an ideal evidentiary model grounded in judicial decision analysis and the strengthening of the role of law enforcement authorities. These findings underscore the urgency of reforming capital market regulations to ensure more effective enforcement against market manipulation and to restore public confidence.

The article analyses recent developments in the regulation of digital markets in the Republic of Uzbekistan, introduced by the Law on Competition dated 2023 and subordinate regulations that came into force in August 2024. Uzbekistan is among the first CIS countries to adopt specific rules for digital platforms, establishing quantitative criteria for dominance and an exhaustive list of prohibitions for their operators. A comparative analysis shows that while Uzbekistan’s model formally follows the principles of traditional antitrust regulation, it is substantively close to the ex ante approach embodied in the European Union’s Digital Markets Act. In contrast, the Russian model (combining classic antitrust tools with targeted regulation of specific digital markets) appears more flexible and effective in the context of a rapidly evolving digital economy.

This study examines the short-term effects of the Russia–Ukraine conflict on stock return volatility in Vietnam, focusing on a 40-day event window around February 24, 2022. Using a sample of 387 stocks listed on the Ho Chi Minh Stock Exchange, we identify a significant psychological impact on investor sentiment, despite Vietnam’s geographical and political distance from the conflict. A sharp decline in abnormal returns (AAR) and cumulative abnormal returns (CAAR) occurred around the event date, followed by a modest recovery, suggesting investor overreaction to geopolitical uncertainty. At the industry level, most sectors experienced negative AARs, with the Energy sector displaying statistically significant positive returns – consistent with previous findings on geopolitical events benefiting energy markets. In contrast, Finance, Industrial, and Real Estate sectors, known for their volatility and news sensitivity, suffered the most. Firm size analysis revealed that small and micro firms were more vulnerable to shocks, while large firms demonstrated greater resilience due to better diversification and operational advantages. Our findings underscore the influence of international political crises on emerging markets and emphasize the role of investor psychology in driving short-term volatility. The study offers policy implications for market regulators, suggesting the need for robust legal frameworks, technical infrastructure, and targeted support for small and medium enterprises (SMEs). Enhanced communication strategies and tailored intervention policies are crucial for minimizing systemic risk and promoting market stability. The research contributes to the broader literature on geopolitical risk and market behavior, highlighting the importance of contextualizing global events within local financial systems.

<i>Background: </i>Although protectionist trade policies are usually analysed from an economic perspective, their broader effects on democratic governance are less explored. Historical examples, from the Smoot-Hawley Act of 1930 to modern trade disputes, show that tariff-led economic nationalism goes beyond market regulation, notably affecting institutional power structures and democratic accountability mechanisms.<i> Objective: </i>This study examines how protectionist trade policies impact economic freedom, individual liberty, and democratic institutions by analysing the political economy mechanisms through which tariffs influence government actions. We specifically explore whether the adoption of tariffs consistently leads to executive overreach while also placing regressive economic burdens on citizens.<i> Methods and Main Ideas: </i>We employ a comprehensive mixed-methods approach, combining econometric analysis of U.S. trade data (2000-2020) with qualitative case studies of historical tariff incidents and institutional analysis of democratic indicators. Our theoretical framework incorporates Hayek's theory of market distortion, Lockean principles of liberty, and Dahl's model of polyarchy to identify causal links between tariff revenue and changes in institutional power. We examine three interconnected pathways: the erosion of economic freedom resulting from market distortions, restrictions on individual liberty stemming from regressive consumption effects, and the suppression of democratic expression due to the expansion of executive authority.<i> Results: </i>Our econometric analysis indicates that tariff regimes with an average of 20% reduce GDP by between 0.23% and 0.57% annually (p<0.01). The prices of goods subject to tariffs increase by 10.3 percentage points more than those of untariffed goods (p<0.001). Notably, households with lower incomes experience greater welfare losses than those with higher incomes, losing 2.1% of their income compared to 0.6%. Regarding democratic effects, executive agencies that collect tariff revenue see their budgets rise by 14.3%, whereas other agencies only see a 3.7% increase (p<0.01). Additionally, congressional oversight hearings declined by 23% following executive tariff actions. During periods of high tariffs, the Freedom House Press Freedom Index decreases by 2.8 points over three years (p<0.05). Moreover, 60% of trade policy journalists report self-censoring due to pressure from regulators.<i> Conclusions: </i>This study demonstrates that protectionist policies foster self-sustaining cycles of democratic decline by enabling executive expansion, funded by tariff revenues, which systematically suppresses dissent while imposing regressive economic burdens. Policy options focused on innovation lead to better outcomes in both economic (10-year GDP impact: +20.2% versus -6.0%) and democratic spheres. They generate 5.6 times more jobs per pound while maintaining institutional balance. These findings highlight the need for a comprehensive reassessment of trade policy evaluation frameworks, emphasising that economic nationalism carries substantial democratic costs that go beyond traditional economic inefficiencies.

The study presents a step-by-step structural and logical formation of the concept of regulatory impact assessment in the context of international and domestic practices of economic regulation. The factors stimulating the development of regulatory impact assessment within the framework of different technologies of its implementation are identified: conceptual, analytical, “good,” smart, and flexible regulation. The limitations and assumptions in using the phenomenon under study that affect its effectiveness in solving problems of state regulation are determined. The criteria for the classification of regulatory impact assessment (RIA) methods with their subsequent structuring and determination of the contribution to the formation of effectiveness are formulated. The formation of the phenomenon of RIA hybridization and the factors and conditions contributing to its development are revealed. It is determined that the improvement of the RIA design process should focus on the following areas: development of reference books with data on company losses from regulatory actions; ensuring stable political support for the RIA implementation process; designing an interested regional system for implementing RIA; and development of digital integration of reporting, statistical, and process parameters of RIA. The hybrid format of regulatory impact assessment is presented as a promising direction for integrating RIA concepts into the system of state regulation of the economy, balancing the costs of introducing and implementing regulatory practices with economic development priorities.

Purpose This paper aims to explore the implementation of target costing (TC) in a real estate development company in the Kingdom of Saudi Arabia. It focuses on the interplay between human and nonhuman actors in a highly regulated environment, contrasting with some existing studies that often overlook the detailed interactions between actors and the mechanisms behind the implementation process. Design/methodology/approach Drawing on a qualitative research approach and the Actor-Network Theory (ANT) framework, this study provides a detailed examination of the roles various actors (i.e. human and nonhuman, such as project managers, financial systems, governmental policies and market regulations) play in ensuring the alignment of TC with organizational goals. Findings The findings provide deeper insights into the complex implementation of TC in the real estate development sector, emphasizing that the interactions among various actors play a central role in shaping the implementation outcomes. We highlight that the TC implementation involves a complex network of actors whose collaboration significantly influences the success of the cost management approach. Practical implications While much of the existing literature focuses on the benefits and critical success factors of implementing TC, this study provides actionable insights for real estate firms, emphasizing the need to identify and manage key actor relationships to navigate regulatory constraints and enhance cost control practices. Originality/value This study contributes to the literature by illustrating how ANT can provide a clearer understanding of the mechanisms and actor-networks involved in implementing TC in a highly regulated environment. It ultimately shows that successful TC implementation depends not only on internal strategies but also on navigating the dynamic relationships among diverse actors.