Stringent Regulatory Environment Research Articles

Proposed Strategy for Maintaining A Small-Family-Business Enterprise in a Competitive Property Market

This study addresses the growing challenges faced by small family businesses in the competitive property market by proposing strategic interventions specifically designed to sustain and enhance the viability of Allure Realty Group, a family-run enterprise established in 2012 in Jabodetabek. With increasing complexity in the property sector due to urbanization, shifting consumer demands, and stringent regulatory environments, the research aims to develop a robust strategic framework. The methodology involves a combination of qualitative and quantitative approaches, including surveys and interviews, to identify key problems and collect data. Analytical tools such as the Marketing Mix 7P, VRIO Framework, and STP Analysis for internal factors, and PESTLE Analysis, Porter’s Five Forces, Competitor and Customer Analysis for external factors are used to conduct SWOT and TOWS analyses for strategic development. The study hypothesizes that targeted strategies will significantly improve the business's resilience and competitiveness in the market. Key objectives include identifying challenges faced by Allure Realty Group, developing strategies to address these issues, and implementing actions to improve operational efficiency, customer satisfaction, and market expansion. The expected outcomes are enhanced operational frameworks, increased customer satisfaction, and a larger market share, contributing to the business's long-term sustainability. This research contributes to business management theory by providing insights into strategies for small family businesses in rapidly evolving markets. The findings aim to bridge traditional business values with modern management practices, offering valuable guidance for both academic researchers and business practitioners in navigating the complexities of the property industry.

Bioaugmentation in Leachate Treatment: Enhancing Ammonia Nitrogen Elimination in US Landfills

Purpose: This research seeks to assess the quantitative effects of implementing bioaugmentation solutions within existing landfill leachate management systems. The study involves the analysis of different sites to gauge the influence on leachate composition, considering various industry management practices such as lagoons, tanks, sewer discharge, or off-site trucking. The primary objective is to examine changes in microbial communities within the leachate, specifically focusing on their impact on ammonia nitrogen elimination rates. The ultimate goal is to achieve lower levels of ammonia nitrogen before the discharge of leachate to publicly owned treatment works (POTW).Methodology: The research employs a comprehensive methodology that involves the examination of diverse landfill sites utilizing various industry management practices for leachate treatment. The analysis includes assessing leachate composition and the study evaluates effectiveness of bioaugmentation in enhancing ammonia elimination rates, considering different leachate treatment approaches and operating conditions. This involves a systematic comparison of outcomes across sites and management practices.Findings: The findings of this study indicate that bioaugmentation is an effective strategy for accelerating ammonia elimination rates in landfill leachate. The analysis reveals notable improvements in microbial communities, leading to reduced levels of ammonia nitrogen in the leachate prior to its discharge to POTW. The study highlights the versatility of bioaugmentation across different industry management practices, showcasing its potential benefits under varying operating conditions and treatment setups.Unique contributor to theory, policy and practice: Based on the study's outcomes, it is recommended that landfill operators and leachate management practitioners consider implementing bioaugmentation solutions to expedite ammonia elimination rates. The findings suggest that bioaugmentation is a cost-effective and fast-to-deploy solution that requires negligible capital expenditure. This approach has the potential to generate significant savings, especially in the face of a more stringent regulatory environment. The recommendations emphasize the adaptability and efficiency of bioaugmentation across a broad range of operating conditions within existing landfill leachate management infrastructure.

A study on analysis of financial challenges of Small and Medium Sized Enterprises (SMEs) in international markets with special reference to blantyre commercial Center-Malawi, Central Africa

Small and Medium-Sized Enterprises (SMEs) play a pivotal role in economic development, particularly in emerging markets like Malawi. However, these enterprises face significant financial challenges when venturing into international markets from hubs such as Blantyre Commercial Centre. This study examines the multifaceted financial barriers that impede SMEs' ability to compete effectively in global trade. This study employs a mixed-methods approach, incorporating quantitative data analysis from SME financial records and qualitative insights gathered through interviews with key stakeholders, including SME owners, financial institutions, and government officials. The study focuses on identifying and analyzing the primary financial challenges encountered by SMEs in Blantyre, Malawi, including limited access to finance, high transaction costs, exchange rate volatility, and stringent regulatory environments. Findings reveal that SMEs in Blantyre face substantial hurdles in accessing financing due to high collateral requirements and exorbitant interest rates imposed by traditional financial institutions. Moreover, the high costs associated with currency conversion, international shipping, and compliance with diverse regulatory frameworks amplify the financial burden on SMEs, constraining their capacity for international expansion and competitiveness. The study underscores the urgent need for tailored financial solutions and supportive policies to address these challenges effectively. Recommendations include developing specialized financial products that cater to SME needs, negotiating preferential trade agreements to reduce transaction costs, and enhancing SME capacity in financial risk management and regulatory compliance. By addressing these financial barriers, stakeholders can foster a more conducive environment for SME growth and internationalization in Blantyre Commercial Centre, thereby contributing to sustainable economic development and inclusive prosperity in Malawi and Central Africa.

Sentiment and Accruals Earnings Management: Does Governance and Regulatory Environment Matter?

This paper examines the implications of firm-level governance mechanisms and the regulatory environment on the relationship between investor sentiment and accrual-based earnings management. Our findings confirm the positive impact of sentiment on earnings management through accruals. Our results confirm that in the presence of a stringent regulatory environment, the likelihood of abnormal accruals following a positive sentiment environment is low. We document that a stringent regulatory environment reduces the likelihood of abnormal accruals following a positive sentiment environment. Results further confirm that improved governance characteristics like larger board, increased board independence, and stringent related party transaction norms help to monitor corporate behaviour and mitigates opportunistic earnings management activity of managers with an exogeneous effect of market sentiment. Thus, our results have important implications for regulators and policymakers for strengthening the regulatory and monitoring environment. Investors may also use earnings announcement news during an optimistic market sentiment scenario in a more informative way.

Competitive dynamics of lead firms and their systems suppliers in the automotive industry

Lead firms play a dominant role in the governance structure of conventional global production network (GPN) analyses but this framework is not fully applicable in sectors where (new) regulations, technologies and subsequent market changes have a disruptive effect on its governance structure. This paper proposes an analytical framework to examine how disruptive effects of industrial megatrends in forms of new regulations and technologies and the subsequent market changes could alter the competitive dynamics between lead firms and their tier-I suppliers. Although lead firms are becoming more specialized and highly efficient in specific product segments, they may not always have inter-firm control over their tier-I suppliers. GPN boundaries become more permeable when there is an external shock, such as new regulations or massive shifts in consumer demand, or the entrance of an entirely new lead firm, possibly due to a technological breakthrough or innovative use of existing technologies in a product. This external shock could have disruptive effects on the GPN, from the exit of current lead firms to the entrance of new tier-I suppliers or lead firms. Consequently, a reconstituted GPN with a newly established boundary is then produced. Applying the analytical framework to the automotive industry, it is argued that selected (and new) systems suppliers with expertise in micro-electronics are not only in a prime position to capture the value generated by the increasingly stringent regulatory environment on safety and environmental standards, but also more resilient than the incumbent automakers to three emerging megatrends: electrification, digitalization and autonomous driving. JEL: F23, L14, L20, L62

The Impact of Chinese New Budget Law on the Issuance cost of Urban Investment Bonds

Abstract In the context of the continuously increasing risk of local government debt, reducing the issuance cost of urban investment bonds have become major concerns in society. Studying the impact and mechanisms of the new budget law, implemented under a stringent regulatory environment, on the issuance cost of urban investment bonds holds significant practical implications. This paper selects balanced panel data of urban investment bonds and industrial bonds issued nationwide from 2009 to 2021 as the research sample. The multi-period difference-in-differences (DID) method is employed to examine the impact and mechanisms of relevant government actions on the issuance cost of urban investment bonds. The results indicate that the promulgation and implementation of the new budget law have reduced the issuance price and financing cost of local bonds, thereby improving the financing environment for urban investment bonds. The examination of the action mechanisms reveals that the debt repayment situation of each province in these years plays a strong moderating role in the policy's impact. Moreover, these government actions influence the pricing and financing environment of urban investment bonds by standardizing their ratings. The research conclusions of this paper hold clear policy implications, providing guidance and reference value for the work of relevant government departments. JEL classification numbers: C12, D74. Keywords: Urban investment bonds, Bond prices, Systemic financial risk.

THE EVOLUTION OF SUPPLY CHAIN INTEGRATION IN THE OIL INDUSTRY: A COMPREHENSIVE REVIEW AND FUTURE PERSPECTIVES

The oil and gas industry, pivotal to global energy demands, confronts transformative challenges in its supply chain integration (SCI). This paper delineates SCI’s intricate dynamics and evolving paradigms within the sector, accentuating both inherent obstacles and emergent opportunities. A salient challenge stems from the industry’s inherent complexity, characterized by fluctuating global demands, geopolitical uncertainties, infrastructural issues, and stringent regulatory environments. Simultaneously, increasing environmental concerns and stakeholder pressures emphasize the industry’s need for transparency, accountability, and sustainable operations. Forward-looking perspectives reveal the promise of digital twin technology, offering real-time monitoring and enhanced operational efficiencies in supply chains. The importance of stakeholder engagement for a comprehensive SCI strategy is highlighted, underlining the significance of multi-faceted dialogues with regulatory entities, local communities, and investors. The paper also underscores the necessity to prioritize environmental stewardship, with a pointed focus on embracing circular economy principles, reducing the environmental footprint, and endorsing sustainable business models. Moreover, decentralized supply chains facilitated by blockchain technology indicate a path toward heightened transparency and traceability. As renewable energy gains prominence, oil and gas enterprises must reimagine their supply chains, incorporating innovative technologies and strategies that complement the shift towards sustainability. This comprehensive analysis culminates in the assertion that for enduring success, the industry must actively foster a culture of innovation, adaptability, and visionary leadership. In conclusion, the oil and gas sector stands at a pivotal juncture; its choices today will chart the trajectory for its future relevance and prosperity.

THE EVOLUTION OF SUPPLY CHAIN INTEGRATION IN THE OIL INDUSTRY: A COMPREHENSIVE REVIEW AND FUTURE PERSPECTIVES

The oil and gas industry, pivotal to global energy demands, confronts transformative challenges in its supply chain integration (SCI). This paper delineates SCI’s intricate dynamics and evolving paradigms within the sector, accentuating both inherent obstacles and emergent opportunities. A salient challenge stems from the industry’s inherent complexity, characterized by fluctuating global demands, geopolitical uncertainties, infrastructural issues, and stringent regulatory environments. Simultaneously, increasing environmental concerns and stakeholder pressures emphasize the industry’s need for transparency, accountability, and sustainable operations. Forward-looking perspectives reveal the promise of digital twin technology, offering real-time monitoring and enhanced operational efficiencies in supply chains. The importance of stakeholder engagement for a comprehensive SCI strategy is highlighted, underlining the significance of multi-faceted dialogues with regulatory entities, local communities, and investors. The paper also underscores the necessity to prioritize environmental stewardship, with a pointed focus on embracing circular economy principles, reducing the environmental footprint, and endorsing sustainable business models. Moreover, decentralized supply chains facilitated by blockchain technology indicate a path toward heightened transparency and traceability. As renewable energy gains prominence, oil and gas enterprises must reimagine their supply chains, incorporating innovative technologies and strategies that complement the shift towards sustainability. This comprehensive analysis culminates in the assertion that for enduring success, the industry must actively foster a culture of innovation, adaptability, and visionary leadership. In conclusion, the oil and gas sector stands at a pivotal juncture; its choices today will chart the trajectory for its future relevance and prosperity.

Machine Learning Prediction of Clinical Trial Operational Efficiency

Clinical trials are the gatekeepers and bottlenecks of progress in medicine. In recent years, they have become increasingly complex and expensive, driven by a growing number of stakeholders requiring more endpoints, more diverse patient populations, and a stringent regulatory environment. Trial designers have historically relied on investigator expertise and legacy norms established within sponsor companies to improve operational efficiency while achieving study goals. As such, data-driven forecasts of operational metrics can be a useful resource for trial design and planning. We develop a machine learning model to predict clinical trial operational efficiency using a novel dataset from Roche containing over 2,000 clinical trials across 20 years and multiple disease areas. The data includes important operational metrics related to patient recruitment and trial duration, as well as a variety of trial features such as the number of procedures, eligibility criteria, and endpoints. Our results demonstrate that operational efficiency can be predicted robustly using trial features, which can provide useful insights to trial designers on the potential impact of their decisions on patient recruitment success and trial duration.

Managing Pain from the Head and Heart

There continues to be significant attention to more comprehensive approaches to pain management. Pharmacologic and interventional options have increased, non-pharmacologic approaches have been endorsed, nursing and medical specialties have developed, and patients have been more engaged in their plans of care. Clinicians are balancing the need for pain relief in a more stringent legal and regulatory environment while balancing institutional constraints. In a related field there is developing knowledge and understanding of the Mind Body Syndrome, which espouses that pain triggering pathways become a well-learned cycle by the brain and body even in the absence of pathology.

Board reforms around the world: The effect on corporate social responsibility

AbstractResearch Question/IssueThis study examines the effects of major board reforms on firms' corporate social responsibility (CSR) performance in countries around the world.Research Findings/InsightsUsing a difference‐in‐differences design, we find robust evidence that worldwide board reforms can have significant effects on various stakeholders, resulting in increased firm CSR performance in both the environmental and social dimensions. Relative to countries that have implemented comply‐or‐explain reforms, countries with rule‐based reforms tend to drive the increase in CSR performance post‐reform. Our results hold for both first board reforms and major reforms, across different types of reforms, and across various dimensions of CSR performance. In addition, the effect of reforms on CSR performance is more pronounced for firms with higher levels of institutional ownership or lower levels of insider ownership and in countries with weaker CSR awareness and more stringent legal and regulatory environments. Further analyses show that reforms strengthen the relationship between CSR performance and future financial performance. Finally, we explore the possible mechanism through which board reforms could have a significant effect on firms' CSR performance. We find that board reforms increase a firm's likelihood of integrating CSR criteria in executive compensation.Theoretical/Academic ImplicationsThe findings of this study suggest that worldwide board reforms that aim to increase shareholders' value can also have significant effects on various stakeholders, resulting in increased firm CSR performance in both the environmental and social dimensions, a non‐financial dimension of firm performance.Practitioner/Policy ImplicationsOur evidence suggests that increases in CSR performance are an important channel through which board reforms can increase shareholder value. In addition, our findings suggest that the effectiveness of reforms on CSR varies with both firm‐ and country‐level characteristics related to the relative influence of external shareholders. Thus, this study offers insights to policy makers interested in enhancing CSR performance in their country.

Board Reforms around the World: The Effect on Corporate Social Responsibility

This study examines the effects of major board reforms on firms’ corporate social responsibility (CSR) performance in countries around the world. Using a difference-in-differences design, we find robust evidence that worldwide board reforms can have significant effects on various stakeholders, resulting in increased firm CSR performance in both the environmental and social dimensions. Relative to countries that have implemented comply-or-explain reforms, countries with rule-based reforms tend to drive the increase in CSR performance post-reform. In addition, the effect of reforms on CSR performance is more pronounced for firms with higher levels of institutional ownership or lower levels of insider ownership and in countries with weaker CSR awareness and more stringent legal and regulatory environments. Further analyses show that reforms strengthen the relationship between CSR performance and future financial performance. Finally, we explore the possible mechanism through which board reforms could have a significant effect on firms’ CSR performance. We find that board reforms increase a firm’s likelihood of integrating CSR criteria in executive compensation.

Operational risk management and regulatory investment constraints on portfolio allocation: evidence from property and casualty insurers

We examine an insurer’s portfolio allocation choice in the context of a regulatory environment where investment in specific asset classes is constrained. We use a year- and insurer- specific proxy, the Investment Regulatory Stringency Index, to show that property and casualty insurers operating in more stringent regulatory environments allocate a smaller proportion of their investment portfolio to taxable assets. Given the market conditions, the environmental risks, and the economic pressure of the period under study, theory suggests the demand for taxable securities would otherwise be greater. We infer from this result that regulation is restricting investment in taxable assets in an undesirable manner. This result is consistent with prior literature. Lastly, we find that operational risk management can mitigate the investment constraints imposed by regulation.

Voluntary climate action and credible regulatory threat: evidence from the carbon disclosure project

This paper examines the role that the U.S. Environmental Protection Agency’s introduction of the Clean Power Plan played in voluntary carbon disclosure by the Global 500 firms during 2011–2015. Results from difference-in-difference-in-differences estimators nested in a two-stage endogenous binary-variable model—which accounts for the correlation between a firm’s participation and intensity of participation—show that U.S.-based firms acted preemptively in anticipation of a more stringent regulatory environment. Regardless of country of origin, among firms making voluntary disclosures, the Clean Power Plan was associated with higher levels of carbon disclosure in firms with favorable management structures and practices involving the agency of corporate management, ceteris paribus. Empirical analysis includes controls for firm size, natural gas prices, sector-specific market pressures, and macro-economic and political economy dynamics. Results are robust to alternative specifications, including a trimmed matching sample, the Heckman selection model, and sector-specific regressions.

Online Appendix for 'Voluntary Climate Action and Credible Regulatory Threat: Evidence from the Carbon Disclosure Project'

This paper examines the role that the U.S. Environmental Protection Agency’s introduction of the Clean Power Plan played in voluntary carbon disclosure by the Global 500 firms during 2011-2015. Results from difference-in-differences and difference-in-difference-in-differences estimators nested in a two-stage endogenous binary-variable model — which accounts for the correlation between a firm’s participation and intensity of participation — show that U.S.-based firms acted preemptively in anticipation of a more stringent regulatory environment. Regardless of country of origin, among firms making voluntary disclosures, the Clean Power Plan was associated with higher levels of carbon disclosure in firms with favorable management structures and practices involving the agency of corporate management, ceteris paribus. Empirical analysis includes controls for firm size, natural gas prices, sector-specific market pressures, and macro-economic and political economy dynamics. Results are robust to alternative specifications, including a trimmed matching sample, the Heckman selection model, and sector-specific regressions.

The rise of encrypted malware

Increasingly complex multi-cloud architectures and more stringent regulatory environments have increased reliance on encryption – primarily secure sockets layer (SSL) and transport layer security (TLS) – to the extent that over 80% of all network traffic is now encrypted. While in many ways the growth of encryption is a good thing for security, it also creates a backdoor for hackers and threat actors looking to hide from traditional detection tools. Organisations are adopting more stringent encryption practices. And while the growth of encryption might seem a good thing for security, it also creates a backdoor for hackers and threat actors looking to hide from detection tools. Additionally, as organisations continue to move to the cloud, increase their utilisation of APIs and adopt ever-more complex and sensitive systems, they find themselves with ever-more complex multi-cloud architectures. The solution lies in encrypted cognitive analytics, argues Omar Yaacoubi of Barac, which enables the creation of new types of data elements or telemetry that are independent of protocol details.

Portfolio rebalancing behavior with operating losses and investment regulation

Firms should make every attempt to reduce their tax burden by, for instance, preferring higher-yield taxable investments when faced with operating losses and lower-yield tax-exempt investments otherwise. We examine in this paper whether there are impediments to rebalancing which result from a firm's regulatory environment. Using an original measure of investment regulatory stringency that U.S. property and casualty insurers encounter, we find that insurers operating in more stringent regulatory environments receive a lower percentage of their investment income from taxable sources. We conclude that regulatory constraints limit insurers from rebalancing efficiently their investment portfolio in response to operational performance.

The Cost of Immediacy for Corporate Bonds

Liquidity provision for corporate bonds has become significantly more expensive after the 2008 crisis. Using index exclusions as a natural experiment during which uninformed index trackers request immediacy, we find that the cost of immediacy has more than doubled. In addition, the supply of immediacy has become more elastic with respect to its price. Consistent with a stringent regulatory environment incentivizing smaller dealer inventories, we also find that dealers revert deviations from their target inventory more quickly after the crisis. Finally, we investigate the pricing impact of information, changes in ownership structure, and differences between bank and nonbank dealers. Received February 22, 2017; editorial decision May 29, 2018 by Editor Itay Goldstein. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

An Index to Characterize the Multi-Dimensional Nature of Land Use Regulations in the Greater Houston Metropolitan Area

Abstract
 Although housing prices and the lack of real income growth are cited as the main factors behind the housing affordability problem, it has been proven that land use regulations have some responsibility as well. Indices have been the most common indicator used to characterize the stringency of local land use regulations; however, these studies focus primarily on those most stringent regulatory environments, and therefore there is no evidence of the validity of such indices in areas regarded as less stringent. In response to this lack of evidence, using a unique data set this article presents an index characterizing local regulatory environments in a well-known less stringent regulatory environment: the Houston-Galveston Area in Texas. This index proves to be a valid measure capable of capturing the multi-dimensional nature of land use regulations. The analysis of the index and statistical correlations validate the use of indices to characterize metropolitan land use regulations.

Challenges with Designing and Permitting an Internal Combustion Engine based Renewable Power Generation System in California for a Water Conservation Plant Under Stringent Regulatory Environment

Challenges with Designing and Permitting an Internal Combustion Engine based Renewable Power Generation System in California for a Water Conservation Plant Under Stringent Regulatory Environment