Regulatory Institutions Research Articles

Democratic Governance, Kinship Networks, and Entrepreneurial Development: Evidence from Rural China

Existing entrepreneurship literature has focused on formal regulatory institutions but has rarely examined effects on entrepreneurship of formal political institutions, particularly that of democracy. This study explores the role of democracy in entrepreneurial development, as well as how democracy moderates the role of kinship networks, in a developing or emerging economy setting. Integrating new institutional economic theory with social network theory, this study examines the rate of rural entrepreneurship in China by arguing that stronger local democratic governance facilitates entrepreneurial development and negatively moderates the role of kinship networks in entrepreneurial development. In particular, while kinship networks have a positive effect on entrepreneurial development when democratic governance is weak, their effect turns negative when it is strong. We use a national sample of villages from China for our empirical test. Results from both Ordinary Least Squares and an instrumental variable approach provide strong support for our hypotheses. The research contributions and implications are discussed.

Revisiting groundwater law through the lenses of earth system law and rights of nature

AbstractCurrent groundwater challenges have made evident that national and international groundwater law needs a thorough revision. In this article, we explore earth system law (ESL) and rights of nature (RoN) as possible approaches to rethink groundwater law. Taking inspiration from ESL scholarship, RoN literature, Indigenous worldviews, and socio‐ecological movements, we analyze law as a critical element of the human‐political‐social system, which creates regulatory institutions with the aim to provide a social order for humanity, an order that is being affected by deteriorating earth systems, including groundwater. Recognizing RoN and thinking law through the lenses of ESL involve a new understanding of what groundwater law could be and what the subject of the law could be. So far, little attention has been given to how these approaches can be used to redesign groundwater law, and what implications this could have on groundwater governance and sustainability. Therefore, this article explores the possibility of reforming groundwater law through the lenses of ESL and RoN. It investigates which legal mechanisms are being used to recognize RoN, and what their legal and practical implications have been so far. This article aims to contribute not only to advancing the academic debate on RoN and ESL but also to share light on different ways to reform groundwater law, which includes a new understanding of sustainability and socio‐nature relations.This article is categorized under: Human Water > Rights to Water Human Water > Water Governance Science of Water > Water and Environmental Change

Corruption, lending and bank performance

This paper uses a sample of 7235 banks from 160 countries between 2000 and 2016 to investigate the link between corruption, lending and bank performance. It considers both country- and bank-level corruption. The study finds that while corruption increases bank lending, it has an adverse impact on bank profits and risks (credit, solvency and distance to default). Corporate lending is found to be most influenced by corruption. Bank-level corruption influences bank performance in both developed and developing countries whereas country-level corruption has a lesser effect on lending in developing countries. The study also finds that greater bank competition, market concentration and improved regulatory environments reduce the effect of corruption on bank lending and performance. Policy makers should focus on enhancing regulatory rules and institutions in order to deal with the adverse impact of corruption on bank performance.

Toward good governance in water resources management in Ghana

AbstractIn the global water policy literature, integrating governance principles into water resources management is projected as the best approach to overcome the crisis in water resources management. Therefore, since 1990, many countries, including Ghana, have introduced various changes in their water sector to encourage good governance in the management of the resource. Using interviews and a review of policy and regulatory documents, this study examines recent changes in the water sector in Ghana to identify challenges for good governance in water resources management. The results suggest that the introduction of a new institutional framework and several regulatory mechanisms, including policies, rules, regulations, and laws, has decentralized water management system, increased stakeholder participation, granted voice to marginalized stakeholders, and brought government and communities together in the decision‐making process. However, the results further reveal that several challenges, including institutional barriers, exclusion or underrepresentation of key stakeholders, corruption, multisectoral conflict, collaboration preferences, and others continue to frustrate good governance in water resources management. Deliberately committing to the principles of good governance, amending ineffective regulatory mechanisms, and adequately resourcing regulatory institutions can help avoid many of the challenges in the water sector and propel the country toward sustainable water resources management.

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION AND THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN SELECTED AFRICAN COUNTRIES

The focus of the study was on examining International Financial Reporting Standard (IFRS) Adoption and The Value Relevance of Accounting Information in Selected Africa Countries: A Comparative Analysis of Nigeria and South Africa. The focus on cross country analysis in the subject of IFRS adoption and value relevance is growing quite slowly. However. Cross country empirical studies for countries in Africa continent is largely non-existent or at best difficult to find. This study address this gap by adopting a cross-country approach using Nigeria and South Africa. The study employed a longitudinal research design. The population and the sample of the study comprised the top companies in each country by way of market capitalization for the countries in the study, namely: Nigeria and South Africa as at December, 2019. The convenience sampling technique was used in the study to select listed firms across the two countries. Secondary data sourced from corporate annual reports of the sampled quoted firms got from the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE) were used for the study. The study made use of panel data regression and the results revealed that for South-Africa, Earnings Per Share (EPS) and EPS*IFRS were both positive respectively, and also statistically significant. Book Value Per Share (BVPS) and BVPS*IFRS were both positive respectively, and also statistically significant. Dividends Per Share (DPS) and DPS*IFRS were both positive respectively, and were also statistically significant. Intangible Assets (INTA) was not value relevant in the pre-IFRS period given the absence of the statistical significance of the variable, but show some evidence of weak incremental relevance from IFRS adoption as the interaction between INTA*IFRS was significant. Cash Flow Per Share (CFPS) was positive and significant; and furthermore, the interaction of CFPS*IFRS was also positive and statistically significant. For Nigeria, EPS and EPS*IFRS are both positive respectively, with EPS statistically significant. BVPS and BVPS*IFRS are both positive respectively, with only BVPS statistically significant. Furthermore, DPS and DPS*IFRS are both positive respectively, and statistically significant. INTA and INTA*IFRS are both insignificant respectively. Finally, CFPS is positive, though not significant; but the interaction of CFPS*IFRS is positive and significant. It therefore implies that, EPS*IFRS, BVPS*IFRS, DPS*IFRS, INTA*IFRS, CFPS*IFRS shows whether EPS, BVPS, DPS, INTA, CFPS reflects a stronger statistical significance in explaining share price when interacted with IFRS adoption (post) than without it (pre) in the two selected Countries( Nigeria and South Africa) . The study concluded that, there is the need for capital markets in developing countries to become more efficient and for companies and accounting regulatory institutions to ensure timely and quality disclosures of accounting information. It recommended that stock exchanges in developing markets should put a frame-work in place that measure the rate of compliance of each listed firm’s annual report with IFRS demands to enable the sanctioning of firms that recorded below the expected compliance level. The study also recommended amongst others, that financial reporting councils and accounting standards setting bodies globally should support the effort to ensure improved compliance with IFRS as a matter of policy.

National context and the transfer of transgender diversity policy: An institutional theory perspective on multinational corporation subsidiaries in Pakistan

AbstractDeploying institutional theory to analyze the transfer of transgender diversity policy in Pakistan, our research highlights the crucial influence of national context with respect to the development and implementation of transgender‐supportive equality measures in multinational corporation subsidiaries. Based on semi‐structured interviews with 4 government officials, and 30 managers, HR leads, and diversity officers working in subsidiary organizations, our thematic analysis highlights how regulatory institutions, normative and cognitive institutions, and institutional distance inform the conditions of possibility for the transfer and execution of diversity policy across national boundaries. Moreover, by highlighting the inadequacy of etic understandings of diversity categories and practices in settings where social structures and ideologies can be different, we argue that utilizing an emic approach is essential in the global diversity field. Our research emphasizes the value of context‐sensitive research instead of generic, and universalistic, applications of ‘Western’ diversity understandings.

Where does working from home “work”?

AbstractAs the COVID‐19 outbreak forced many organizations to shift to work from home (WFH) arrangements, many are now considering whether to continue these arrangements post‐pandemic. To make informed decisions, understanding the environmental factors that influence employees' capacity to WFH effectively is crucial. This study contributes to this understanding by drawing on neo‐institutional theory to develop a model that characterizes how employees' WFH outcomes are shaped by their national institutional environment. The model was tested using data from multiple national‐level sources and individual‐level data obtained via a survey. The findings reveal that employees from high competency (cognitive institutions), meritocratic (normative institutions), and more labor‐regulated (regulatory institutions) contexts demonstrate higher levels of perceived productivity and satisfaction with WFH. Moreover, the link between the institutional context and WFH effectiveness is more pronounced when employees' capacity to adjust to WFH is high. Theoretical and practical implementations for organizations, especially multinational ones, are being discussed.

Does the Zambian Legal Environment Support Informal Enterprises `Transition into the Formal Economy?

This article provides findings from a study which examined ways in which the Zambian legal environment supports informal enterprises` transition into the formal economy. This qualitative study adopted a phenomenological research design. Data was collected via structured interviews from 11 respondents who were purposively selected. Thematic and content analysis of the data were used to come up with the findings of the study. The findings established that a few laws and policies support and facilitate transitioning from informal to the formal Zambian economy. Further, the findings indicated that enterprises were critical to the economy because of the contribution they made through employment creation and poverty reduction activities, against the desired outcome by government? to have a smaller informal economy in relation to the formal economy. The study also established reasons why some informal enterprises are non-compliant to government compliance requirements. Based on the finding of the study, it was recommended that regulatory institutions be lenient and flexible to allow noncompliant enterprises to smoothly transition to formal economy. It is further recommended that more investment in the change management and education of the informal enterprises is made for owners to value formalisation.

ФОРМУВАННЯ ЦІН НА МІЖНАРОДНОМУ РИНКУ ФІНАНСОВИХ ПОСЛУГ

Specific features of international trade in services are considered; the features of the world market of services are defined; pricing methods and pricing strategies used by enterprises providing various services on the international market are characterized. The purpose of the research is aimed at researching the international market of financial services to analyze its main characteristics, impact on the global economy and identify key factors affecting its development and level of financial risk. Research methods: logical and meaningful method, methods of comparison, systematization, induction and deduction, analysis and synthesis, coefficient method. The main hypothesis of the research was the statement that the international market of financial services plays an important role in the global economy and its development depends on such factors as technological innovations, regulatory policy, globalization and the stability of financial systems. Presenting main material. All spheres of international cooperation need developed services, which are a continuation and development of modern production. The main features of the world services market include the following: systematic development, which means that the services market is considered as a complete system with many interconnected components; sensitivity to market changes, which is caused by constant fluctuations in the demand and supply of services on the market; high rate of capital turnover associated with a shorter production cycle in the service sector; constant growth of the range of services. The originality and practical significance of the research are in the understanding of the main characteristics of the international market of financial services, which will help specialists in the financial sector make informed decisions about the development and improvement of their services at the international level; analysis of the impact of the international financial services market on the global economy will enable states and international organizations to determine effective strategies to promote economic growth and stability; determining the key factors affecting the development of the international market of financial services will help to avoid financial risks and ensure the stability of financial systems. The practical significance of the article also lies in the promotion of academic research and expansion of knowledge in the field of finance, economics and international relations. Conclusions and prospects for further research. The results of the study can be useful for government bodies and regulatory institutions in forming an effective policy for regulating the international market of financial services and ensuring its healthy functioning. It was determined that the successful choice of the method of setting prices for international services and the formation of an effective price strategy will allow the enterprise of the service sector to receive high income, increase the volume of service provision, and conquer new market segments.

Asian conceptions of international order: what Asia wants

Abstract How do major Asian states regard the current international security order? Do they agree or disagree among themselves? This is an introduction to a special section on ‘Asian conceptions of international order: what Asia wants’. It draws on articles analysing the stances of China, India, Japan, South Korea, Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam towards the existing international security order usually described as a liberal international order (LIO). It argues that Asian states substantially support the main constitutive and regulatory norms and institutions of the LIO, but they worry that the LIO does not consistently honour these norms. Asians disagree on the centrality of political liberalism, but even Japan and South Korea, the most liberal states, are uncomfortable with strident criticism, punishment and the exclusion of less liberal states. Asians also disagree on the role of US alliances: some are strongly supportive, some are ambivalent and some are negative. Finally, Asians disagree on how they voice dissatisfaction. Japan and South Korea supplement existing norms and institutions as a way of transcending the limitations of the LIO; south-east Asian states promote ASEAN's mediatory role for peace and security above and beyond existing global arrangements; and Indonesia, India and China want to move from being norm takers to becoming norm shapers. The introduction ends with six policy implications.

Incentivisation practices and their influence on physicians' prescriptions: A qualitative analysis of practice and policy in Pakistan.

Focus on profit-generating enterprise in healthcare can create conflicts of interest that adversely impact prescribing and pricing of medicines. Although a global challenge, addressing the impacts on quality of care is particularly difficult in countries where the pharmaceutical industry and physician lobby is strong relative to regulatory institutions. Our study characterises the range of incentives exchanged between the pharmaceutical industry and physicians, and investigates the differences between incentivisation practices and policies in Pakistan. In this mixed methods study, we first thematically analysed semi-structured interviews with 28 purposively selected for-profit primary-care physicians and 13 medical sales representatives from pharmaceutical companies working across Pakistan's largest city, Karachi. We then conducted a content analysis of policies on ethical practice issued by two regulatory bodies responsible in Pakistan, and the World Health Organization. This enabled a systematic comparison of incentivisation practices with what is considered 'prohibitive' or 'permissive' in policy. Our findings demonstrate that incentivisation of physicians to meet pharmaceutical sales targets is the norm, and that both parties play in the symbiotic physician-pharma incentivisation dynamics. Further, we were able to categorise the types of incentive exchanged into one of five categories: financial, material, professional or educational, social or recreational, and familial. Our comparison of incentivisation practices with policies revealed three reasons for such widespread incentivisation linked to sales targets: first, some clear policies were being ignored by physicians; second, there are ambiguous or contradictory policies with respect to specific incentive types; and third, numerous incentive types are unaddressed by existing policies, such as pharmaceutical companies paying for private clinic renovations. There is a need for policies to be clarified and updated, and to build buy-in for policy enforcement from pharmaceutical companies and physicians, such that transgressions on target-driven prescribing are seen to be unethical.

Development, Application, And Regulation of Web3.0

This paper explores the development, applications, and regulatory issues of Web3.0 as the next generation of internet technology. Web3.0 is based on technologies such as distributed computing, blockchain, artificial intelligence, and smart contracts, and it features decentralization, intelligence, and high security. This paper introduces the development, characteristics, technical architecture, and key technologies of Web3.0, as well as its applications and future development trends in areas such as digital currencies, decentralized finance, supply chain management, and digital identity. However, the decentralized nature of Web3.0 increases regulatory challenges, and the emergence of new businesses like digital currencies and smart contracts also poses challenges to traditional regulatory institutions. Therefore, this paper discusses the regulatory status and challenges of Web3.0 and proposes solutions. The aim of this paper is to provide references and insights for the research and application of Web3.0.

Method Validation for Simultaneous Determination of Pyriproxyfen and Fenpropathrin in Okra Matrices

Extraction and quantification of pesticide residue from the okra matrix at or below the established maximum residue limit (MRL) is a challenging task for both analytical chemists and regulatory institutions to take corrective actions for human health and safety. to develop a simple rapid and less expensive extraction and cleanup method for simultaneous analysis of pyriproxyfen and fenpropathrin residue in okra two methods: QuEChERS and Liquid-Liquid Extraction (LLE) were tested. Both methods produce reliable results, QuEChERS method was chosen for the present research due to its superior efficiency, low cost as well as reduced risk of exposure to solvents in comparison to Liquid-Liquid Partitioning. The residues of both pesticides were confirmed and quantified by hyphenated gas chromatography-tandem mass spectrometer (GC-MS/MS). The effect of spiking concentration, matrix effect (ME), measurement of inter- and intra-assay repeatability, reproducibility of recovery, and trueness of the results were investigated to validate the effectiveness of the method. Limit of determination (LOD) and limit of quantitation (LOQ) for both the analytes were 0.005 and 0.01 mg/kg. The % recovery of both pesticides ranged between 85.9 to 97.9 % with RSD ≤ 7.19 %. The method fulfilled all the SANTE guidelines (SANTE, 2021) and thus can be extended for routine analysis of multiclass pesticide residue in the okra matrix.

Accountability in University System in Nigeria: Challenges and Way Forward

This paper looked at Accountability in the University system in Nigeria and its Challenges. Secondary data were adopted for the paper. The secondary data were collected from online and print publications. The paper concluded that lack of political will, weak accountability culture, weak labour unions, weak participation of stakeholder, poor implementation of accountability policies, poor monitoring of universities by anti-corruption agencies and other regulatory institutions, political influence and lack of autonomy amongst others are the factors responsible for poor accountability in the university system in Nigeria. To address these challenges, the paper suggested that Federal and State Governments should develop the political will to ensure visitation panels are constituted every five years and the white paper released should be implemented as at when due, to promote accountability in the universities. University administrators and managers should be trained and retrained on the importance of ensuring and promoting the culture of accountability in the universities. The various labour unions in the universities should be proactive in ensuring accountability in the universities. Also, autonomy should be granted to the universities to eliminate political influence activities in the universities.

Towards a framework for the protection of citizen rights of capital market shareholders: evidence from Iran

PurposeThe citizen-shareholder approach in the capital market is considered a knowledge-enhancing and emerging concept in financial and accounting offerings. Its reliable background in management and human sciences makes it an essential basis for protecting the interests of shareholders and investors. Shareholders are considered a necessary part of the social platforms that are companies and regulatory institutions in the capital market; beyond being obligated to protect their material and intellectual rights, they are responsible for developing norms and facilitating investment values and gaining trust through mutual interactions based on respect for their interests. The purpose of this paper is to perform interactive qualitative analysis of the requirements for protecting the rights of citizens of capital market shareholders.Design/methodology/approachThe methodology of the research is mixed, so that in the qualitative part, through content screening, the dimensions related to the protection of the citizen rights of the capital market shareholders were identified through a systematic review of 10 research in the period of 2017–2022. Then, the reliability of the specified dimensions was examined through Delphi analysis; in the quantitative part of the research, the criteria identified through the pairwise comparison matrix were first determined by the level of their relationships to determine based on the pattern of systemic representation of drivers and the consequences of requirements to protect the rights of citizens of capital market shareholders.FindingsThe research results in the qualitative part indicated the existence of 12 primary themes; during the two stages of Delphi analysis, three themes were removed, and a total of nine themes entered the quantitative phase. The results in a quantitative part indicate the creation of specialized and active committees of the board of directors as the primary driver and the reliability and timely disclosure of information in the long term as a systemic consequence.Originality/valueTo the best of the authors’ knowledge, this is the first research that presents the new concept of citizen shareholders to strengthen the requirements of protecting the rights of shareholders in the capital market while developing new theoretical literature.

Corporate governance, enforcement institutions and corporate liquidity in the MENA region

Purpose The study examines the effects of corporate governance and countrywide institutions and risk factors on corporate liquidity.Design/methodology/approach Using firm-level data, the authors analyze the effect of corporate governance and various economic, regulatory and social institutions on the liquidity of firms operating in the Middle East and North Africa (MENA) region. The authors use fixed-effects, firm-specific and country-level controls, disaggregated analysis, sensitivity and endogeneity analysis to test the robustness of the estimates.Findings The corporate governance characteristics of firms influence in diverse ways their liquidity decisions. The independence and diversity of the board and institutional ownership are especially strong predictors. The effect also depends on the size of the firm and the degree of economic development and exhibits time sensitivity and nonlinearity. Enforcement institutions and risk factors play a strong role.Originality/value The analysis contributes to the literature by using a large sample of countries and firms over a larger period, distinguishing between poorer and richer countries and using sensitivity and endogeneity analysis. The analysis considers explicitly the role of regulatory and enforcement conditions, social structures and religious beliefs.

Beyond Buzzwords: Mandatory Human Rights Due Diligence and a Rights-Based Approach to Business Models

AbstractThis article argues that the trend to zoom into mandatory human rights due diligence (mHRDD) as the sole solution to corporate abuse is misleading. In fact, it might risk missing entirely the main point which, as set out in this article, should be creating economic systems that enable rights-based and rights-driven business models. A small, but growing number of scholarly articles address the economic, fiscal and regulatory institutions needed to create an enabling environment for the fulfilment of human rights. These policy areas constitute what some of us understand as a ‘rights-based economy’ or ‘rights-enabling economies’. State-level efforts would be much more effective in promoting substantive equality if driven by a rights-based approach rather than a market logic. This article contends that while ensuring comprehensive mHRDD is in place as a preventative and mitigation tool, states must also push for transformative macroeconomic policies based on human rights principles as a way to fundamentally change business models.

About the Contributors

About the Contributors

Beyond Climate Due Diligence: Fossil Fuels, ‘Red Lines’ and Reparations

AbstractThe scale and scope of the climate crisis and its drastically worsening impacts means that even as a ‘climate due diligence’ obligation is increasingly taking shape as a dimension of human rights due diligence, there is also growing evidence of the limitations of this emerging norm. This article provides four critiques of climate due diligence based on its insufficiency, its conceptual ambiguity, its operational limitations, and its structural limitations. It argues that these critiques could be addressed by regulatory reform that draw clear ‘red lines’ based on the need to prevent the development of any new fossil fuel and address the ‘corporate capture’ of regulatory institutions by the fossil fuel industry. Additionally, it calls for reparations to ensure effective access to a remedy for existing and potential future climate-related human rights impacts that business has caused or contributed to.

Who’s controlling our energy future? Industry and environmental representation on United States public utility commissions

Public utility commissions (PUCs) are small state-level regulatory institutions in the United States adjudicating conflicts over electrical power rates, energy generation, electric vehicle infrastructure, and energy efficiency among other issues. PUCs are critically understudied institutions given their central role in addressing climate change. This is partially due to a lack of data related to public utility commissioners. What are the characteristics of these energy system regulators? I make an initial contribution with expansive original data on the professional backgrounds of the over 800 commissioners who served from 2000 to 2020. Particular attention is given to ties to the utilities PUCs regulate, the fossil fuel industry, and environmental positions in government, business, and advocacy. Utility industry backgrounds have become more frequent, but there has been a greater increase in environmental connections in recent years. These data and findings can stimulate additional research on the increasing environmental responsibilities of PUCs.