Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
    - ACCOUNTING (132 journals)
    - BANKING AND FINANCE (306 journals)
    - BUSINESS AND ECONOMICS (1248 journals)
    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (212 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (235 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
    - INSURANCE (26 journals)
    - INTERNATIONAL COMMERCE (145 journals)
    - INTERNATIONAL DEVELOPMENT AND AID (103 journals)
    - INVESTMENTS (22 journals)
    - LABOR AND INDUSTRIAL RELATIONS (61 journals)
    - MACROECONOMICS (17 journals)
    - MANAGEMENT (595 journals)
    - MARKETING AND PURCHASING (116 journals)
    - MICROECONOMICS (23 journals)
    - PRODUCTION OF GOODS AND SERVICES (143 journals)
    - PUBLIC FINANCE, TAXATION (37 journals)
    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

ACCOUNTING (132 journals)                     

Showing 1 - 126 of 126 Journals sorted alphabetically
Accountancy     Partially Free   (Followers: 3)
Accounting Analysis Journal     Open Access   (Followers: 4)
Accounting and Finance Research     Open Access   (Followers: 23)
Accounting and Financial Control     Open Access   (Followers: 4)
Accounting Global Journal     Open Access   (Followers: 3)
Accounting History     Hybrid Journal   (Followers: 10)
Accounting History Review     Hybrid Journal   (Followers: 15)
Accounting in Europe     Hybrid Journal   (Followers: 8)
Accounting Research Journal     Hybrid Journal   (Followers: 19)
Accounting Theory and Practice     Open Access   (Followers: 6)
Accounting, Accountability & Performance     Full-text available via subscription   (Followers: 12)
Accounting, Auditing and Accountability Journal     Hybrid Journal   (Followers: 24)
Acta Marisiensis : Seria Oeconomica     Open Access  
Activos     Open Access  
Actualidad Contable Faces     Open Access   (Followers: 1)
Advances in Accounting     Hybrid Journal   (Followers: 10)
Advances in Accounting Education     Hybrid Journal   (Followers: 12)
African Journal of Accounting, Auditing and Finance     Hybrid Journal   (Followers: 12)
Al-Mal : Jurnal Akuntansi dan Keuangan Islam     Open Access  
Applied Finance and Accounting     Open Access   (Followers: 8)
Apuntes Contables     Open Access  
Asia-Pacific Journal of Accounting & Economics     Hybrid Journal   (Followers: 6)
Asian Journal of Accounting Research     Open Access  
Asian Journal of Economics, Business and Accounting     Open Access  
Asian Journal of Finance & Accounting     Open Access   (Followers: 8)
Berkala Akuntansi dan Keuangan Indonesia     Open Access  
Bulletin of Accounting and Finance Reviews     Open Access   (Followers: 1)
China Journal of Accounting Research     Open Access   (Followers: 3)
China Journal of Accounting Studies     Hybrid Journal  
Chulalongkorn Business Review     Open Access  
Cofin Habana     Open Access  
Comptabilité - Contrôle - Audit     Full-text available via subscription  
Comptabilités     Open Access  
Contabilidad y Negocios     Open Access  
Contabilidade, Gestão e Governança     Open Access  
Contaduría y Administración     Open Access  
Copernican Journal of Finance & Accounting     Open Access   (Followers: 2)
Cuadernos de Administración (Universidad del Valle)     Open Access   (Followers: 1)
Cuadernos de Contabilidad     Open Access  
Current Issues in Auditing     Full-text available via subscription   (Followers: 4)
E-Jurnal Akuntansi     Open Access  
ECA Sinergia : Revista Especializada en Economía, Contabilidad y Administración     Open Access  
EL-MUHASABA     Open Access  
Estudios Gerenciales     Open Access  
Financial Reporting     Full-text available via subscription   (Followers: 4)
Fokus Bisnis : Media Pengkajian Manajemen dan Akuntansi     Open Access  
Indonesian Accounting Review     Open Access  
International Journal of Accounting & Finance Review     Open Access  
International Journal of Accounting and Financial Reporting     Open Access   (Followers: 8)
International Journal of Accounting and Information Management     Hybrid Journal   (Followers: 5)
International Journal of Accounting, Auditing and Performance Evaluation     Hybrid Journal   (Followers: 9)
International Journal of Auditing Technology     Hybrid Journal   (Followers: 4)
International Journal of Business Reflections     Open Access   (Followers: 2)
International Journal of Finance and Accounting     Open Access   (Followers: 7)
International Journal of Finance and Accounting Studies     Open Access   (Followers: 7)
Journal of Accounting and Business Education     Open Access   (Followers: 1)
Journal of Accounting and Investment     Open Access  
Journal of Accounting and Management     Open Access   (Followers: 11)
Journal of Accounting in Emerging Economies     Hybrid Journal   (Followers: 2)
Journal of Accounting Literature     Hybrid Journal   (Followers: 5)
Journal of Applied Accounting and Taxation     Open Access   (Followers: 1)
Journal of Applied Accounting Research     Hybrid Journal   (Followers: 15)
Journal of Applied Sciences in Accounting, Finance, and Tax     Open Access  
Journal of Auditing, Finance and Forensic Accounting     Open Access   (Followers: 5)
Journal of Banking and Financial Technology     Hybrid Journal   (Followers: 1)
Journal of Cost Analysis and Parametrics     Hybrid Journal   (Followers: 5)
Journal of Economics Finance and Accounting     Open Access   (Followers: 1)
Journal of Economics, Business, & Accountancy Ventura     Open Access  
Journal of Economics, Finance and Accounting Studies     Open Access  
Journal of Empirical Research in Accounting     Open Access   (Followers: 1)
Journal of Federation of Accounting Professions     Open Access  
Journal of Finance and Accounting     Open Access   (Followers: 7)
Journal of Finance and Accounting Research     Open Access   (Followers: 1)
Journal of Financial Reporting and Accounting     Hybrid Journal   (Followers: 12)
Journal of Islamic Accounting and Business Research     Hybrid Journal   (Followers: 5)
Journal of Management Accounting Research     Full-text available via subscription   (Followers: 24)
Journal of Public Budgeting, Accounting & Financial Management     Hybrid Journal   (Followers: 3)
Journal Syariah and Accounting Public     Open Access  
Jurnal Akuntansi & Keuangan Unja     Open Access  
Jurnal Akuntansi Aktual     Open Access  
Jurnal Akuntansi dan Keuangan     Open Access  
Jurnal Akuntansi dan Perpajakan     Open Access  
Jurnal Akuntansi Indonesia     Open Access  
Jurnal ASET (Akuntansi Riset)     Open Access  
Jurnal Dinamika Akuntansi     Open Access  
Jurnal Ekonomi KIAT     Open Access  
Jurnal Ilmiah Akuntansi dan Bisnis     Open Access  
Jurnal Ilmiah Akuntansi dan Keuangan     Open Access  
Jurnal Kajian Akuntansi     Open Access  
Krisna : Kumpulan Riset Akuntansi     Open Access  
Maandblad Voor Accountancy en Bedrijfseconomie (MAB)     Open Access  
Management & Economics Research Journal     Open Access   (Followers: 1)
Meditari Accountancy Research     Hybrid Journal   (Followers: 2)
North American Actuarial Journal     Hybrid Journal   (Followers: 1)
Open Journal of Accounting     Open Access   (Followers: 2)
PEKA : Jurnal Pendidikan Ekonomi Akuntansi     Open Access  
Point of View Research Accounting and Auditing     Open Access   (Followers: 1)
Prawo Budżetowe Państwa i Samorządu     Open Access  
Profita : Komunikasi Ilmiah Akuntansi dan Perpajakan     Open Access  
Quipukamayoc     Open Access   (Followers: 1)
RACE - Revista de Administração, Contabilidade e Economia     Open Access  
Research Journal of Finance and Accounting     Open Access   (Followers: 10)
REUNIR: Revista de Administracao, Contabilidade e Sustentabilidade     Open Access  
Revista Catarinense da Ciência Contábil     Open Access  
Revista Contemporânea de Contabilidade     Open Access  
Revista de Administração, Contabilidade e Economia da Fundace     Open Access  
Revista de Análisis Económico y Financiero     Open Access  
Revista de Contabilidad : Spanish Accounting Review     Open Access  
Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ     Open Access  
Revista de Contabilidade e Organizações     Open Access  
Revista de Derecho Fiscal     Open Access  
Revista de Finanças Públicas, Tributação e Desenvolvimento     Open Access  
Revista de Gestão, Finanças e Contabilidade     Open Access  
Revista Evidenciação Contábil & Finanças     Open Access  
Revista Mineira de Contabilidade     Open Access  
Revista Universo Contábil     Open Access  
Riset Akuntansi dan Keuangan Indonesia     Open Access  
Risk Governance and Control : Financial Markets & Institutions     Open Access  
Science and Studies of Accounting and Finance : Problems and Perspectives     Open Access  
Social and Environmental Accountability Journal     Hybrid Journal   (Followers: 3)
South African Journal of Accounting Research     Hybrid Journal   (Followers: 1)
Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad     Hybrid Journal   (Followers: 1)
Studia Universitatis Babes-Bolyai Oeconomica     Open Access   (Followers: 2)
Sustainability Accounting, Management and Policy Journal     Hybrid Journal   (Followers: 12)
The Accounting Review     Full-text available via subscription   (Followers: 49)
Universal Journal of Accounting and Finance     Open Access   (Followers: 3)

           

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Risk Governance and Control : Financial Markets & Institutions
Number of Followers: 0  

  This is an Open Access Journal Open Access journal
ISSN (Print) 2077-429X - ISSN (Online) 2077-4303
Published by Virtus Interpress Homepage  [7 journals]
  • Editorial: New insights on environmental management accounting, innovative
           companies, tax measures and foreign direct investments
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on April 28, 2022.

      By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

      How to cite: Ballestra, L. V. (2022). Editorial: New insights on environmental management accounting, innovative companies, tax measures and foreign direct investments. Risk Governance and Control: Financial Markets & Institutions, 12(1), 4–6. https://doi.org/10.22495/rgcv12i1editorial

      2022-04-28T10:25:21Z
       
  • Foreign direct investment and export diversification in developing
           countries
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study examines the individual and interactive impact of foreign direct investment (FDI), domestic production structure, infrastructure, natural resource endowment, and fiscal incentives on export diversification. The econometric estimation is based on a dynamic systems general method of moments (sGMM) analysis using panel data from 44 Sub-Sahara African (SSA) countries. The study finds a positive export-diversifying effect of FDI in SSA suggesting that FDI has an influence on the composition of export baskets in host economies. Furthermore, diversifying production sectors, credible institutions, and macroeconomic stability are essential for promoting export diversification, while landlockedness and natural resource endowments contribute to export concentration. The study finds that the FDI's impact on export diversification is reinforced by better access to infrastructure and fiscal incentives to foreign investors in special economic zones (SEZs). The latter results compare with findings by Farole and Moberg (2017), while the importance of infrastructure in export diversification is emphasised by Fosu (2021). The findings from this study are particularly important to SSA economies that other than having highly concentrated export baskets have in recent years faced declines in FDI albeit limited domestic capital and government resources needed to propel export diversification. SSA economies must focus on efforts to attract more FDI possibly through regulatory reforms that grant foreign investors fiscal incentives for investing in targeted sectors and operating in SEZs.

      Keywords: Foreign Direct Investment, Export Diversification, Export Concentration, Natural Resource Rents, Special Economic Zones, Trade Openness

      Authors' individual contribution: Conceptualization — G.G.; Methodology — G.G., L.M., and J.J.; Formal Analysis — G.G., M.B., L.M., and J.J.; Investigation — G.G., M.B., and L.M.; Writing — Original Draft — G.G.; Writing — Review & Editing — M.B., L.M., and J.J.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: F14, F21, F35

      Received: 14.03.2022
      Accepted: 21.04.2022
      Published online: 22.04.2022

      How to cite this paper: Gamariel, G., Bomani, M., Musikavanhu, L., & Juana, J. (2022). Foreign direct investment and export diversification in developing countries. Risk Governance and Control: Financial Markets & Institutions, 12(1), 74–89. https://doi.org/10.22495/rgcv12i1p6

      2022-04-22T14:42:54Z
       
  • FinTech and FinTech ecosystem: A review of literature
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This research aims to suggest a definition of FinTech, stating its main attributes based on the theoretical development of the field in academia. A systematic literature review (SLR) with the qualitative content analysis (QCA) method analyses about 22 research papers. These papers were selected based on the number of citations and their metrics, such as impact factors. After analyzing the literature, a definition of FinTech ecosystem is suggested with the roles played by stakeholders, for instance, lawmakers, information technology (IT) companies, traditional financial institutions, financial customers and investors affecting FinTech. This definition considers the framework offered by Au and Kauffman (2008). Further, the authors identify FinTech as a disruptive innovation and outline the main business models where FinTech operate blockchain, crowdfunding, payments, insurance, wealth and asset management, big data analysis, and application programming interface (API) are discussed with the roles they play. Lastly, competitive advantages and challenges encountered by FinTech are discussed which is an extension of work by Gomber, Koch, and Siering (2017). Further research can be done to understand the nature of each FinTech category and see the impact of regulations and collaborations on the economy and society.

      Keywords: FinTech, Financial Ecosystem, Disruptive Innovation, Industry Convergence

      Authors' individual contribution: Conceptualization — Z.S. and C.A.R.; Methodology — Z.S.; Formal Analysis — Z.S.; Data Curation — Z.S.; Writing — Original Draft — Z.S.; Writing — Review & Editing — Z.S. and C.A.R.; Visualization — Z.S.; Supervision — C.A.R.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: The Authors would like to thank RTU Riga Business School for its financial support in the writing of this paper.

      JEL Classification: M13, O31, Q55

      Received: 01.03.2022
      Accepted: 15.04.2022
      Published online: 20.04.2022

      How to cite this paper: Siddiqui, Z., & Rivera, C. A. (2022). FinTech and FinTech ecosystem: A review of literature. Risk Governance and Control: Financial Markets & Institutions, 12(1), 63–73. https://doi.org/10.22495/rgcv12i1p5

      2022-04-20T14:34:05Z
       
  • A tax system that does not trust the productive power of the people
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The global economy grew by 2.8 times from 1997 to 2019. Meanwhile, Japan's economy grew by only 15%. Even heavily sanctioned countries such as North Korea, Venezuela, and Iran, grew by 60%, 75%, and 5.6 times respectively during the same period of time. Even war-torn countries such as Somalia, Libya, and Afghanistan, grew by 26%, 80%, and 6.5 times respectively (United Nations Statistics Division1). Japan was the second largest economy in the world in 1997. However, Japan's growth rate has been the worst in the world since then. What has happened to the country? Japan's economy began to slow down in the fiscal year (FY) 1990 and reached negative growth from FY 1997. After that, thanks to unprecedented monetary easing and enormous-scale fiscal spending, Japan's nominal gross domestic product (GDP) reached a record high in FY 2016 for the first time in 19 years; however, more easing and more fiscal spending can no longer be expected. Because Japan's tax revenue effectively peaked in FY 1990 and that caused a huge budget deficit and accumulated public debt. And this made the social security system in jeopardy. Japan's strength until the 1980s was neither a coincidence nor a miracle; it was the tax system that supported the economy and public finances well. At that time, there was no consumption tax that levies on sales no matter how the economic condition is, while the income tax which is the fruit of production was highly progressive. The corporate tax rate was also high. This allowed people to compete in a more equal environment, which resulted in higher productivity and consequently higher tax revenue. The tax reform of FY 1989 destroyed Japan's economy. In the face of higher inflation coupled with a weaker yen, another tax reform that goes back to the pre 1989 system is urgently needed. The tax system is the foundation of a country. This paper may give a clue to how to solve your own country's problems as well.

      Keywords: Japan's Economy, Tax System, Social Security, Public Debt, Wealth Gap

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: D00, E01, G30, H20, J00, K34, M10, P00, Y10

      Received: 02.02.2022
      Accepted: 08.04.2022
      Published online: 12.04.2022

      How to cite this paper: Yaguchi, A. (2022). A tax system that does not trust the productive power of the people. Risk Governance and Control: Financial Markets & Institutions, 12(1), 46–62. https://doi.org/10.22495/rgcv12i1p4

      2022-04-12T13:16:51Z
       
  • Firm's strategy to innovate in a European transition economy
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The aim of this paper is to investigate Albanian registered trademarks to understand the characteristics of a successful trademark in a transition economy. In order to verify the research hypothesis on the characteristics of the trademarks (Crass, Czarnitzki, & Toole, 2019) as key indicator of success, we use linear regression on a dataset set based on taxonomy of the legal status of applications and the registration of the trademarks in Albania. Our empirical analyses are based on data from the DPPI (Drejtoria e Përgjithshme e Pronësisë Industriale), Albanian Central Intellectual Property Office, for the period 1994–2019. The findings show evidence of the choice of the trademark name as a critical success factor as well as the characteristics of the activities, as the trademarks used in different product contests or corporate trademark strategies (Antwi, Carvalho, & Carmo, 2021). These results could be relevant both to firms implementing branding strategies and to analysts or policymakers analysing markets in transition economies.

      Keywords: Innovation, Transition Economy, Trademarks, Firm Strategy

      Authors' individual contribution: Conceptualization — S.S. and A.R.G.; Methodology — K.S.; Investigation — S.S., A.R.G., and K.S.; Writing — Original Draft — S.S. and A.R.G.; Writing — Review & Editing — S.S. and A.R.G.; Supervision — S.S.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: Financial support for the research, PRA-2019 — University of Foggia, Italy — D.R. n. 932/2019 Disclosure statement.

      JEL Classification: L11, L26, O3, O34

      Received: 15.12.2021
      Accepted: 25.03.2022
      Published online: 28.03.2022

      How to cite this paper: Spallini, S., Gurrieri, A. R., & Sheu, K. (2022). Firm's strategy to innovate in a European transition economy. Risk Governance and Control: Financial Markets & Institutions, 12(1), 33–45. https://doi.org/10.22495/rgcv12i1p3

      2022-03-28T12:38:20Z
       
  • Performance measurement in a “hidden champion” company: An
           empirical study
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The purpose of the paper is to review and evaluate the performance of a specific type of globally successful innovative company introduced to scientific literature as “hidden champion” by Simon (1990), using a combination of traditional financial key performance indicators (KPIs) with the modern evaluation method of the European Foundation for Quality Management (EFQM) model. The results showed that there are many areas in the selected company where EFQM allows building an effective management system, applied as a benchmarking tool for using the experience of leading companies. The joint utilisation of the KPIs and the EFQM model helps to create an objective picture and evaluate the organization in a relatively complex way. This paper provides in-depth insights into the application of new models in practice that are still scarce and may serve as a base for further research realized on larger samples. This work shows for the first time the application of EFQM commonly used in large organizations, for the special category of small and medium-size enterprises (SMEs) companies called “hidden champions” (HCs). In general, there is a lack of studies in domestic literature devoted to the concept of “hidden champions”. This paper contributes to this field from the perspective of quality management, and it provides also valuable insight for practice.

      Keywords: Hidden Champions, Small and Medium-Sized Enterprises, EFQM, Performance Measurement, KPIs

      Authors' individual contribution: Conceptualization — N.S. and J.T.-P.; Methodology — N.S. and J.T.-P.; Writing — Original Draft — N.S. and J.T.-P.; Writing — Review & Editing — N.S. and J.T.-P.; Supervision — J.T.-P.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: L250, M130, O470

      Received: 01.01.2022
      Accepted: 22.03.2022
      Published online: 25.03.2022

      How to cite this paper: Sariyev, N., & Táborecká-Petrovičová, J. (2022). Performance measurement in a “hidden champion” company: An empirical study. Risk Governance and Control: Financial Markets & Institutions, 12(1), 21–32. https://doi.org/10.22495/rgcv12i1p2

      2022-03-25T08:13:25Z
       
  • Barriers of environmental management accounting practices in developing
           country
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The use of environmental management accounting (EMA) benefits organisations by providing them with different information for decision-making (Burritt, Hahn, & Schaltegger, 2002; Adams & Zutshi, 2004; International Federation of Accountants IFAC, 2005). EMA has received increasing attention since 2000 and is now considered an effective tool for dealing with environmental issues and the economic performance of companies and countries (Elhossade, Abdo, & Mas'ud, 2021). This paper purposes to present an empirical case for research in EMA. The paper provides an analysis of the current status of EMA practices in manufacturing companies operating in Libya and identified the barriers preventing such practices. Data were collected from a sample of companies in Libyan manufacturing industry contexts utilizing a questionnaire survey. To analyse these data, two statistical techniques were employed: factor analysis and descriptive tools analysis. The current level of EMA adoption among manufacturing companies in Libya was found to be low. The findings of the study reveal that institutional barriers constituted the greatest obstacle to the adoption of EMA in manufacturing companies in Libya. This was followed by management barriers, informational barriers, financial barriers, and, lastly, attitudinal barriers. This paper concluded that Libyan universities should include EMA in the management accounting syllabus, provide books, and conduct research into practices related to EMA. Furthermore, the Libyan government and other stakeholders should play an active role in enacting and enforcing further strict environmental regulations and laws. This would be useful, as it would increase the concern of local communities about environmental issues; this would, in turn, make companies more concerned about improving their environmental performance.

      Keywords: Environmental Management Accounting, Environmental Performance, Corporate Social Responsibility, Environmental Barriers, Manufacturing Companies, Libya

      Authors' individual contribution: Conceptualization — S.S.E., A.A.Z., and A.A.Z.; Methodology — A.A.Z. and A.A.Z.; Formal Analysis — S.S.E.; Investigation — S.S.E., A.A.Z., and A.A.Z.; Writing — S.S.E., A.A.Z., and A.A.Z.; Supervision — A.A.Z. and A.A.Z.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: M00, M40, M41, M49, L00

      Received: 06.01.2022
      Accepted: 11.03.2022
      Published online: 15.03.2022

      How to cite this paper: Elhossade, S. S., Zoubi, A. A., & Zagoub, A. A. (2022). Barriers of environmental management accounting practices in developing country. Risk Governance and Control: Financial Markets & Institutions, 12(1), 8–20. https://doi.org/10.22495/rgcv12i1p1

      2022-03-15T11:53:28Z
       
  • Editorial: COVID-19 and its effect on world economy
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on January 21, 2022.

      By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

      How to cite: Hasan, F. (2021). Editorial: COVID-19 and its effect on world economy. Risk Governance and Control: Financial Markets & Institutions, 11(4), 4–6. https://doi.org/10.22495/rgcv11i4editorial

      2022-01-21T08:44:19Z
       
  • Cryptocurrencies in hyperinflationary Venezuela
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This literature review covers hyperinflation in Venezuela, from the 1980s to the present. Particular emphasis is placed on the role of cryptocurrency in the country and how the Venezuelan government has been using crypto, specifically the Petro, as a means to avoid further blunders with hyperinflation. From Hugo Chávez and “Socialism of the 21st Century” to the current regime of Nicolás Maduro, Chávez' successor, the printing of money in Venezuela has sky-rocketed to the point of the government needing cryptocurrency, such as Bitcoin, as a means of circumventing inflation to fund the government's ambitious social projects. A key element in its success, however, will be whether the Venezuelan people will opt to use the government-backed Petro, or whether they will opt to use a different, decentralized alternative digital currency to avoid the perils of hyperinflation. The paper will examine this issue from several diverse points of view: specifically, the Austrian School (Echarte Fernández, Hernández, & Zambrano, 2018), the neo-Keynesian school (Pagliacci & Barráez, 2010), and public policy and institutional perspective (Corrales, 1999). The use of cryptocurrencies by governments, in particular socialist governments, is a new occurrence and merits much attention for the future of public and monetary policy in those countries.

      Keywords: Venezuela, Hyperinflation, Cryptocurrencies, Socialism, Monetary Policy

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: E5, E6, O3, P2

      Received: 25.09.2021
      Accepted: 10.01.2022
      Published online: 13.01.2022

      How to cite this paper: Fast, R. (2021). Cryptocurrencies in hyperinflationary Venezuela. Risk Governance and Control: Financial Markets & Institutions, 11(4), 62–67. https://doi.org/10.22495/rgcv11i4p5

      2022-01-13T13:21:54Z
       
  • Review of financial liberalisation policies in developing countries from
           1986 to 2016
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      By the late 1980s, most sub-Saharan African (SSA) countries had undertaken policy reforms to abolish financial sector controls. While studies have produced several liberalization indices, available measures are limited in scope and time coverage. The purpose of this research is to address this limitation by constructing a new set of indicators that tracks the magnitude, pace, and timing of reform aspects in 26 countries between 1986 and 2016. The paper uses questions and coding rules from a framework developed by Detragiache, Abiad, and Tressel (2008) to collect and analyse data on seven liberalization policies: credit controls, interest rate controls, entry barriers, state ownership of banks, capital account restrictions, prudential regulation and supervision, and securities market policy. Results indicate that interest rate liberalization is the most advanced dimension, followed by the abolition of entry restrictions. The least advanced dimension is bank supervision and prudential regulation. An aggregate liberalization index constructed using principal component analysis (PCA) confirms advancements in financial liberalization over time. This study is significant as it provides indicators critical for policy formulation in developing economies whose performance hinges on sufficiently developed and stable financial sectors. The study recommends implementing further reforms to update and modernise prudential regulation and supervision of banks in line with good governance.

      Keywords: Financial Sector Regulations, Financial Repression, Prudential Regulation

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: G28, E44, E58

      Received: 11.11.2021
      Accepted: 07.01.2022
      Published online: 11.01.2022

      How to cite this paper: Gamariel, G. (2021). Review of financial liberalisation policies in developing countries from 1986 to 2016. Risk Governance and Control: Financial Markets & Institutions, 11(4), 47–61. https://doi.org/10.22495/rgcv11i4p4

      2022-01-11T09:59:26Z
       
  • Have women made gains in the top leadership positions at insurance
           companies'
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Gender diversity on corporate boards and in other leadership positions is an area of concern for many global companies (Di Biase & Onorato, 2021; Doan & Iskandar-Datta, 2018). This paper updates and enhances an industry study “Women are making steady gains” (2018) that examined the state of gender diversity in the global insurance industry. We analyze trends to see if women have made any significant gains in board leadership, C-suite, and insider positions in insurance over time. Our sample covers 83 insurance companies as of 2021 and compares the gains from those made previously. Our results show a clear trend of improvement in gender representation in the board of directors and insider positions for firms in the insurance industry. However, the gains stop there, and unfortunately, no significant advancement for the percentage of women in the C-suite positions is evident in our dataset at this time. A meager 10% of all CEO and CFO positions in this sample of the insurance industry are held by females. Our research is important as it demonstrates which segments of the industry females are making gains and where we see deficiencies. We also suggest ways we feel future gains can be made.

      Keywords: Gender, Board of Directors, Insurance, Diversity, Firm Performance

      Authors' individual contribution: Conceptualization — K.M.H. and D.V.; Methodology — K.M.H. and D.V.; Writing — K.M.H. and D.V.; Investigation — K.M.H. and D.V.; Resources — K.M.H. and D.V.; Project Administration — K.M.H. and D.V.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G22, L20, M14, M19, G00, G18

      Received: 15.11.2021
      Accepted: 06.01.2022
      Published online: 10.01.2022

      How to cite this paper: Hogan, K. M., & Vesneski, D. (2021). Have women made gains in the top leadership positions at insurance companies? Risk Governance and Control: Financial Markets & Institutions, 11(4), 38–46. https://doi.org/10.22495/rgcv11i4p3

      2022-01-10T14:09:14Z
       
  • Monitoring of digital transformation risks as a key policy to prevent
           future financial crises
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The digital transformation of finance has been significantly facilitated by the COVID-19 pandemic, and it has become the dominant trend and the driving force of development in the upcoming years. The digital transformation brings not only benefits to financial markets, people, companies, and institutions, but it also results in dramatic changes of the underlying risks. The nature, mechanisms, and scale of financial crises are bound to change substantially. The paper develops a new, forward-looking approach to financial crises research. We build further upon the multidisciplinary research agenda on digital transformation by Verhoef et al. (2021). Achieving a bright digital future requires knowing and managing the adverse effects of digitalisation (Clim, 2019; Dickson, 2019; Gimpel & Schmied, 2019). Our literature search has not found any studies on digital transformation risks as a key policy to prevent future financial crises. The purpose of this paper is to examine the existing system of risks monitoring, to analyse changes in risks due to the digital transformation in finance, and to provide policymakers with insights regarding the related evolution of risks. This paper is a policy analysis type of research containing a systematic overview of risk assessment reports at the global and the EU levels.

      Keywords: Financial Crisis, Digital Transformation, Risks of Financial Systems, Risks Monitoring

      Authors' individual contribution: Conceptualization — A.A. and O.K.; Methodology — A.A. and O.K.; Formal Analysis — A.A. and O.K.; Investigation — A.A. and O.K.; Writing — Original Draft — A.A. and O.K.; Writing — Review & Editing — A.A. and O.K.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: F65, G01, G28, G32

      Received: 06.10.2021
      Accepted: 03.12.2021
      Published online: 06.12.2021

      How to cite this paper: Afanasiev, A., & Kandinskaia, O. (2021). Monitoring of digital transformation risks as a key policy to prevent future financial crises. Risk Governance and Control: Financial Markets & Institutions, 11(4), 26–37. https://doi.org/10.22495/rgcv11i4p2

      2021-12-06T13:23:07Z
       
  • Cluster analysis of share price: How firm characteristics relate to
           accounting metrics
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The purpose of this paper is to improve our understanding of the relationship between share price and accounting information. Much of the literature utilizes the earnings number to reflect firm value. However, the revenue number seems more relevant for high tech firms (Xu, Cai, & Leung, 2007), and cash flow figures are more informative for internet companies (Romanova, Helms, & Takeda, 2012). We build on this notion that share price may map out to different accounting numbers for different firms. We collect 629 accounting metrics for 3,365 firms in the U.S. and estimate their correlation with the firms' share price. We analyze these correlations and find that many firms exhibit a low correlation between share price and earnings. Other accounting numbers are important for these firms, including book value of net assets, retained earnings, stock options, gain or loss items, special or non recurring items, and dividend rates. We are curious to learn what causes firms to anchor onto different metrics, therefore perform a cluster analysis to group similar firms together along three key accounting metrics. We examine the composition of each cluster and find that capital structure, dividend patterns, the persistence of operations, age, and industry can influence which accounting number is correlated with firm value. We encourage other researchers to continue this exploration as there are many interesting questions to answer.

      Keywords: Share Price, Earnings, Financial Accounting, EPS, Cluster Analysis, Accounting Numbers, Industry, Text Mining

      Authors' individual contribution: Conceptualization — M.A. and K.T.; Methodology — G.D.; Software — G.D.; Validation — G.D.; Formal Analysis — K.T.; Investigation — G.D.; Data Curation — K.T.; Writing — Original Draft — M.A. and K.T.; Writing — Review & Editing — K.T.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: C8, G120, M41

      Received: 06.09.2021
      Accepted: 26.11.2021
      Published online: 29.11.2021

      How to cite this paper: Akpan, M., Dhillon, G., & Trottier, K. (2021). Cluster analysis of share price: How firm characteristics relate to accounting metrics. Risk Governance and Control: Financial Markets & Institutions, 11(4), 8–25. https://doi.org/10.22495/rgcv11i4p1

      2021-11-29T13:44:35Z
       
  • Editorial: Public and private sector entities in an institutional
           perspective
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on November 24, 2021.

      By clicking the button "Download this Article" you will gain direct access to the Editorial of the issue.

      How to cite: Samborski, A. (2021). Editorial: Public and private sector entities in an institutional perspective. Risk Governance and Control: Financial Markets & Institutions, 11(3), 4-6. https://doi.org/10.22495/rgcv11i3editorial

      2021-11-24T14:37:50Z
       
  • Book review: “Innovation in financial restructuring: Focus on signals,
           processes and tools”
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This review analyses the book titled "Innovation in financial restructuring: Focus on signals, processes and tools" co-authored by Marco Tutino and Valerio Ranciaro (Virtus Interpress, 2020; ISBN: 978-6-177309-10-8). The review highlights the original approach of the book to financial restructuring management and turnaround process. It describes in detail the structure of the book and content of chapters within the book. The review indicates that the book provides indications that will help academics, regulators and professionals to better manage the financial restructuring and prevent financial crisis.

      JEL Classification: G32, G34

      Received: 10.10.2021
      Accepted: 12.11.2021
      Published online: 15.11.2021

      How to cite this paper: Dell'Atti, S. (2021). Book review: “Innovation in financial restructuring: Focus on signals, processes and tools”. Risk Governance and Control: Financial Markets & Institutions, 11(3), 81–84. https://doi.org/10.22495/rgcv11i3p6

      2021-11-15T11:14:56Z
       
  • Climate-related financial risks as a governance challenge: An inclusive
           international public policy proposal
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study focuses on climate-related financial risks as a governance issue, which drives our attention to the quality of stakeholders' interactions. The theoretical approach is undertaken through the institutional literature lens, along with the works of Rawls (1971, 2001) and Sen (1992, 2000, 2009), and contributions from the conceptions of co-creation and inclusive development. The applied analysis is carried out by connecting climate change to financial risks under a scenario of uncertainty (Bolton, Despres, Pereira da Silva, Samama, & Svartzman, 2020; TCFD, 2017; Daniel, Litterman, & Wagner, 2019; Carney, 2016; Maier et al., 2016; NGFS, 2018, 2019). The core objective of this study is to present a public policy proposal that aims to support effective international climate-related agreements, from a procedural perspective. To this end, we start by presenting an institution, which is broken down into three propositions. This process enables us to undertake a critical analysis from a technical and normative standpoint. The latter is based on Bush (1987). The main contribution of this study is the rationale underlying that the best set of policies to face climate change issues is that representing agents' strong engagement and commitment. Finally, although the applied analysis focuses on climate change issues, the discussion conducted here can be reproduced in other areas.

      Keywords: Climate Risk, Financial Stability, Governance, International Cooperation

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      Disclaimer: The views expressed in this work are those of the Author and do not reflect those of the Central Bank of Brazil or its members.

      Acknowledgments: The Author is grateful for the important knowledge shared by Marcos Masnik, André Hollatz and Ricardo Rezende, and for the valuable support of Caetano Negrão. However, any possible remaining mistakes are the Author's own responsibility.

      JEL Classification: G18, G38, H11, Q01

      Received: 15.09.2021
      Accepted: 11.11.2021
      Published online: 12.11.2021

      How to cite this paper: von Borowski Dodl, A. (2021). Climate-related financial risks as a governance challenge: An inclusive international public policy proposal. Risk Governance and Control: Financial Markets & Institutions, 11(3), 67–80. https://doi.org/10.22495/rgcv11i3p5

      2021-11-12T14:34:04Z
       
  • The impact of IFRS mandatory adoption on KPIs disclosure quality
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The aim of this study is to investigate context, the impact of International Financial Reporting Standards (IFRS) on the Key Performance Indicators' (KPIs) disclosure quality in the United Kingdom (UK). We used the UK listed firms FTSE 350 in the stock exchange market during the pre-IFRS period and the post-IFRS period (2003 to 2004, and 2006 to 2013). In particular, we examine special events such as the emergence of the 2006 UK Accounting Standard Body (ASB) Guidelines for KPIs best practice, the 2010 IFRS Management Commentary, and the phenomenon of the 2008 financial crisis. The results of this paper show that the UK's mandatory adoption of IFRS has had a positive and significant effect on the KPIs' disclosure quality. The results demonstrate, also, that together with the emergence of the 2006 UK ASB Guidelines, the 2008 financial crisis, and the 2010 IFRS Management Commentary have had a positive and significant influence on the quantity and quality of the KPIs' disclosure.

      Keywords: IFRS, Key Performance Indicators (KPIs), Disclosure Quality, the UK

      Authors' individual contribution: Conceptualization — N.C.R.; Methodology — N.C.R., F.W.B.M.D., and K.H.; Investigation — N.C.R., F.W.B.M.D., and K.H.; Writing — Original Draft — N.C.R; Writing — Review & Editing — A.A.; Project Administration — A.A.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G10, M40, M41, M48

      Received: 23.08.2021
      Accepted: 10.11.2021
      Published online: 11.11.2021

      How to cite this paper: Cheikh Rouhou, N., Ben Mrad Douagi, F. W., Hussainey, K., & Alqatan, A. (2021). The impact of IFRS mandatory adoption on KPIs disclosure quality. Risk Governance and Control: Financial Markets & Institutions, 11(3), 55–66. https://doi.org/10.22495/rgcv11i3p4

      2021-11-11T11:23:40Z
       
  • Sunshine after the rain' The stock market performance of family firms
           in and after financial crises
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study applies financial crises as an exogenous shock to family and non-family firms to identify differences in stock market performance. We investigate 278 firms listed on the German Stock Exchange in the world financial crisis starting in 2007 as well as the Euro crisis starting in 2010. Based on the methodology of Gompers, Ishii, and Metrick (2003), we form portfolios with and without family blockholders and apply equally- as well as value-weighted four-factor models to identify differences in stock market performance. Results show that family firms do not necessarily perform better than non-family firms in years of economic downturn. But our models suggest that they outperform non-family firms three years after the beginning of the world financial crisis and in and after the Euro crisis. This implies that family firms recover faster than their non-family counterparts. We follow that the financial preconditions of family firms, differing financial strategies during recessions and the controlling incentives and capacities that are rooted in the long-term orientation and risk aversion of family blockholders, as well as the country-specific corporate governance framework of Germany, explain these differences. The paper contributes to the ongoing academic exploration on family firm performance as well as crisis resilience of family firms and suggests practical implications for policymakers in countries with high levels of family ownership among firms.

      Keywords: Family Firms, Family Ownership, Financial Crisis, Abnormal Returns, Stock Market Performance, Blockholders

      Authors' individual contribution: Conceptualization — F.F. and M.M.; Methodology — F.F.; Formal Analysis — F.F.; Data Curation — F.F. and M.M.; Writing — Original Draft — F.F.; Writing — Review & Editing — F.F. and M.M.; Supervision — M.M.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G01, G14, G32, G34

      Received: 26.07.2021
      Accepted: 27.09.2021
      Published online: 30.09.2021

      How to cite this paper: Franzoi, F., & Mietzner, M. (2021). Sunshine after the rain? The stock market performance of family firms in and after financial crises. Risk Governance and Control: Financial Markets & Institutions, 11(3), 41–54. https://doi.org/10.22495/rgcv11i3p3

      2021-09-30T12:54:34Z
       
  • Islamic financial institutions: Performance comparison with Canadian banks
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The Canadian financial market is considered to be very conservative and has been using the same practices for a long time. The economies of some countries such as England have adopted a strategy of including Islamic finance in their market and this has produced very satisfactory results. Considering that Islamic finance has been growing in recent years, this type of practice could be relevant to the Canadian market. The objective of this article is to analyze whether the performance of Islamic financial institutions is comparable to traditional banks. A comparison of the efficiency of conventional and Islamic banks will be important to determine because they do not operate in the same way and their primary source of income is different. The results revealed that Islamic banks tended to perform better than conventional banks. Performance ratios were in most cases higher for Islamic banks. This observation was confirmed with the use of the data envelopment analysis (DEA) model, which measures efficiency and effectiveness at the bank level. The results show that although some Islamic banks had significantly fewer assets than conventional banks, they were still able to use resources more efficiently. This confirmed that Islamic finance is an option for Canada and that with government support it will be possible to have a stronger economy overall.

      Keywords: Islamic Finance, Traditional Banks, Performance, Risk, Regulation, Islamic Banks

      Authors' individual contribution: Conceptualization — R.G. and P.-R.G.; Methodology — R.G. and P.-R.G.; Validation — R.G. and P.-R.G.; Formal Analysis — P.-R.G.; Investigation — R.G. and P.-R.G.; Writing — R.G. and P.-R.G.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: We are very grateful for the support of the Performance Research Group at the University of Quebec in Outaouais.

      JEL Classification: G21, G23, G28, G29, G32

      Received: 09.07.2021
      Accepted: 20.09.2021
      Published online: 23.09.2021

      How to cite this paper: Gouiaa, R., & Gaspard, P.-R. (2021). Islamic financial institutions: Performance comparison with Canadian banks. Risk Governance and Control: Financial Markets & Institutions, 11(3), 16–40. https://doi.org/10.22495/rgcv11i3p2

      2021-09-23T14:47:57Z
       
  • The future for the replacement cost in the International Public Sector
           Accounting Standards
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The purpose of this paper is to review academic literature and professional practice guidance in relation to the replacement cost (RC) method of valuation in public sector financial accounting. The replacement cost is regarded as being the most appropriate basis for the determination of fair value when the fair value of the asset could not be reliably determined using market-based evidence (Wyatt, 2009). However, several problems persist in RC definition and application, underlining the lack of a uniform approach in the current valuation standards. The paper explores the current adoption of RC by performing a content analysis of the latest financial statements published by International Public Sector Accounting Standards (IPSAS) adopter jurisdictions across the globe. The analysis highlights interesting patterns in the use of RC and provides an empirical base for further investigations. Additionally, the research offers useful insights to stimulate professional and academic debate on the replacement cost method, particularly in view of amendments proposed by the recently published Exposure Draft.

      Keywords: Replacement Cost, Fair Value, Public Sector Accounting Standards, Financial Statement

      Authors' individual contribution: Conceptualization — F.P. and M.P.; Methodology — T.I.; Writing — Original Draft — T.I., F.P., and M.P.; Project Administration — M.P.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: M41, M48

      Received: 16.06.2021
      Accepted: 07.09.2021
      Published online: 10.09.2021

      How to cite this paper: Izzo, T., Paolone, F., & Pozzoli, M. (2021). The future for the replacement cost in the International Public Sector Accounting Standards. Risk Governance and Control: Financial Markets & Institutions, 11(3), 8–15. https://doi.org/10.22495/rgcv11i3p1

      2021-09-10T12:51:07Z
       
  • Editorial: New perspectives of corporate governance, regulation and
           markets: Is there a need for a new theory on them'
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on July 12, 2021.

      By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

      How to cite: Lazarides, T. (2021). Editorial: New perspectives of corporate governance, regulation and markets: Is there a need for a new theory on them? Risk Governance and Control: Financial Markets & Institutions, 11(2), 4-6. https://doi.org/10.22495/rgcv11i2editorial

      2021-07-12T11:24:52Z
       
  • Sectors stock indices aggregate correlations and expectations: Evidence
           from the Greek stock market
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Based on the cyclical movements of the Athens Stock Market, the paper empirically examines the behavior of seven sectors (markets) namely: industry-services, emporium, construction, petroleum, telecommunications, food-beverages, and banks. Specifically using daily observations from January 2006 to August 2017, we estimate a dynamic equicorrelation multivariate GARCH model (DECO-MGARCH) developed by Engle and Kelly (2012), to analyze the dynamic behavior of these sectors. Furthermore, using time-dependent entropic measures we examine empirically the uncertainty (expectations) regarding the correlation behavior of these seven sectors. The empirical results are in line with previous findings (Tsai & Chen, 2010; Garnaut, 1998) and provide evidence supporting the view of high correlations during periods of crises. In addition, the dynamic entropy shows that the expectations of market participants were more concentrated (less spread out) during these periods of crises. Therefore, the empirical evidence of the paper supports the view that market participants share the same opinions (entropy exhibits low uncertainty) during crises and therefore are acting in a similar fashion (exhibiting high correlation).

      Keywords: Financial Markets and Institutions, Athens Stock Market, Dynamic Equicorrelation, GARCH Model, Entropy, Market Sectors, Investors' Risks and Returns

      Authors' individual contribution: Conceptualization — A.N. and I.P.; Methodology — A.N. and I.P.; Software — I.P.; Validation — A.N. and I.P.; Formal Analysis — I.P. and S.P.; Investigation — I.P. and S.P.; Writing — Original Draft — I.P. and S.P.; Writing — Review & Editing — S.P.; Supervision — A.N. and I.P.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: The authors would like to thank the participants of the 16th Annual Conference of the Hellenic Finance and Accounting Association, Athens, Greece, December 2017.

      JEL Classification: C13, C18, C58, G21, G23

      Received: 15.02.2021
      Accepted: 18.06.2021
      Published online: 23.06.2021

      How to cite this paper: Noulas, A., Papanastasiou, I., & Papadopoulos, S. (2021). Sectors stock indices aggregate correlations and expectations: Evidence from the Greek stock market. Risk Governance and Control: Financial Markets & Institutions, 11(2), 71–81. https://doi.org/10.22495/rgcv11i2p6

      2021-06-23T13:06:31Z
       
  • Legislative pressure and credit rating agency behavior
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study investigates whether legislative pressure influences credit rating agency (CRA) behavior. It covers a time period in which the European Union moves from exerting minimal to intense legislative pressure on CRAs, providing an almost ideal context for analyzing if and how CRAs are affected by this pressure. Two possible outcomes are discussed: 1) more timeliness in the flow of information and 2) more stickiness in the flow of information. The analysis is based on an examination of market reactions following CRA announcements between 2000 and 2019. The results show that the market reactions after CRA announcements decrease when legislative pressure increases. The interpretation is that as legislative pressure increases, the flow of information from CRAs becomes stickier. This confirms that legislative initiatives that put pressure on CRAs have an effect, evidence that legislators' intention to change behavior by threatening or initiating new regulations works, which confirms assumptions underlying the theory of legislative threats (Halfteck, 2008). A reasonable interpretation of legislators' push for changes in this context is that they want to see a faster flow of information. The results, however, show the opposite. A plausible explanation for this is increased caution on the part of CRAs because if in retrospect, the information in an announcement turns out to be wrong or misleading, the ensuing criticism could lead to additional pressure.

      Keywords: Credit Rating Agencies, Legislative Pressure, Stickiness, Timeliness

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      Acknowledgements: This study was funded by Jan Wallanders and Tom Hedelius Foundation, Handelsbanken (grant number P18-0128).

      JEL Classification: G14, G24, G28, G30, G34

      Received: 30.03.2021
      Accepted: 01.06.2021
      Published online: 04.06.2021

      How to cite this paper: Nilsson, O. (2021). Legislative pressure and credit rating agency behavior. Risk Governance and Control: Financial Markets & Institutions, 11(2), 58–70. https://doi.org/10.22495/rgcv11i2p5

      2021-06-04T13:50:36Z
       
  • Single Supervisory Mechanism and corporate finance: A DSCR based approach
           for AQR prudential provisioning
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Asset quality review (AQR) conducted by the European Central Bank (ECB) introduced 2014 indicators and logic typically used in the context of corporate finance. The new approach tries to overcome the backward-looking approach in favour of a completely forward-looking perspective based on the assessment of cash flows. From the AQR point of view, EBITDA and DSCR have taken particular importance also in the prudential provisioning process. As is known, the AQR manual, for calculating the prudential provisioning, provides that banks, in a going-concern perspective, estimate the recoverable amount of loans by appropriately discounting the cash flows. Our work, although under some hypotheses, highlights limitations in the prudential regulatory approach. The paper, using a DSCR-based dual-leg approach, tries to propose a generalisation logically consistent with the guidelines on loan origination and monitoring recently expressed by the European Banking Authority (EBA) (EBA, 2020). Although there is literature dealing with access to credit constraints (Demirgüç-Kunt & Maksimovic, 1999; Beck & Demirgüç-Kunt, 2008; Calabrese, Girardone, & Slip, 2020), with the relationship between credit risk management framework and accounting standard (Porretta, Letizia, & Santoboni, 2020) and with loan loss coverage policies (Alessi, Bruno, Carletti, Neugebauer, & Wolfskiel, 2020), no empirical or theoretical research analyses the relationship between prudential provisioning and underlying incentive structure. This paper offers a contribution in this regard highlighting how an economic approach for provisioning tends to reward companies capable of generating adequate prospective cash flows given the contractual structure of the loan, thus mitigating the potential allocative distortions implicit in the incentive structure underlying the AQR approach.

      Keywords: Provisioning, Debt Service Coverage Ratio, IFRS 9, Corporate Finance, Forward-Looking, Stochastic Model

      Authors' individual contribution: Conceptualization — E.G. and M.P.; Methodology — M.P.; Software — M.P.; Validation — E.G. and M.P.; Formal Analysis — M.P.; Investigation — M.P.; Resources — L.J.; Data Curation — L.J.; Writing — Original Draft — M.P.; Writing — Review & Editing — L.J.; Visualization — L.J.; Supervision — E.G. and M.P.; Project Administration — M.P.; Funding Acquisition — E.G. and M.P.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: The authors would like to thank Prof. Andrea Molent for his contribution to the analytical development of the paper.

      JEL Classification: L51, G17, G21, G38

      Received: 14.02.2021
      Accepted: 05.05.2021
      Published online: 06.05.2021

      How to cite this paper: Geretto, E., Polato, M., & Jones, L. (2021). Single Supervisory Mechanism and corporate finance: A DSCR based approach for AQR prudential provisioning. Risk Governance and Control: Financial Markets & Institutions, 11(2), 47–57. https://doi.org/10.22495/rgcv11i2p4

      2021-05-06T12:15:21Z
       
  • Corporate social responsibility and firm performance: Modified social
           contribution value per share
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study attempts to enhance the corporate social responsibility (CSR) performance measurement by introducing the concept of environmental contributions. As suggested by Xu and Zhu (2010), we modify the formula of social contribution value per share (SCVPS) developed by the Shanghai Stock Exchange (SSE) in 2008 by employing two environmental elements, namely, the audited environmental cost (AEC) and additional audited environmental cost (AddAEC). Using pooled least square regressions to examine the relationship between the two modified SCVPSs, under the accrual basis and the cash basis, and the performance of the listed firms in the SSE social responsibility index, we find that they have a positive relationship — a larger modified SCVPS corresponds to better CSR performance and firm performance. Our results for the two modified SCVPSs are relatively unaffected by the different ownership structures, state-owned (SO) and non-state-owned (NSO). Evidence also indicates that the influence on firm performance of the modified SCVPS under the accrual basis is more significant for SO firms than NSO firms. Companies are encouraged to increase their environmental contribution and SCVPS to go beyond the minimum environmental protection standards.

      Keywords: Corporate Social Responsibility, Firm Performance, SCVPS, State-Owned Firms

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: G21, G32, O16

      Received: 23.01.2021
      Accepted: 23.04.2021
      Published online: 27.04.2021

      How to cite this paper: So, S. M. S. (2021). Corporate social responsibility and firm performance: Modified social contribution value per share. Risk Governance and Control: Financial Markets & Institutions, 11(2), 32–46. https://doi.org/10.22495/rgcv11i2p3

      2021-04-27T12:28:39Z
       
  • Liquidity risk: Intraday liquidity and price spillovers in euro area
           sovereign bond markets
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The purpose of this paper is to determine the cross-market liquidity and price spillover effects across euro area sovereign bond markets. The analysis is carried out with the constructed minute frequency order-book dataset from 2011 until 2018. This derived dataset covers the six largest euro area markets for benchmark 10-year sovereign bonds. To estimate the cross-market spillover effect between sovereign bonds, it was decided to use the empirical approach proposed by Diebold and Yilmaz (2012) and combine it with the vector error correction model (VECM). We also employed the panel regression model to identify why some bond markets had a higher spillover effect while others were smaller. The dependent variable was the daily average spillover effect of a particular bond. As the spillover effects vary highly across different bonds, country-specific fixed effects were used, and the clustered standard errors were calculated for robustness reasons. Lastly, the cross-market spillovers were analyzed daily to compare them with the results of the model with intraday data. The analysis was performed with rolling 100-day window variance decompositions and a 10-day forecast horizon for six sovereign bonds and the overnight indexed swap (OIS) market. The results of the created time-series model revealed that intraday cross-market spillovers exist but are relatively weak, especially in the case of liquidity spillovers. As the cross-market linkages became much more robust with the model using daily data, the liquidity or price disbalances between different markets are usually corrected on longer intervals than minutes. Distance between countries is the most important explanatory variable and is negatively linked to the magnitude of both liquidity and price spillovers. These findings should be of particular interest to bond market investors, risk managers, and analysts who try to scrutinize the liquidity and price transmission mechanism of sovereign bonds in their portfolios.

      Keywords: Euro Area Sovereign Bonds, Intraday Market, Variance Decomposition, Liquidity, Liquidity Spillovers, Market Connectedness

      Authors' individual contribution: Conceptualization — L.J., D.T., and R.K.; Methodology — L.J. and D.T.; Validation — L.J. and D.T.; Formal Analysis — L.J., D.T., and R.K.; Investigation — L.J., D.T., and R.K.; Writing — Original Draft — L.J., D.T., and R.K.; Writing — Review & Editing — D.T. and R.K; Visualization — L.J.; Supervision — D.T.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: C22, G14, G21

      Received: 02.02.2021
      Accepted: 29.03.2021
      Published online: 01.04.2021

      How to cite this paper: Jurkšas, L., Teresienė, D., & Kanapickiene, R. (2021). Liquidity risk: Intraday liquidity and price spillovers in euro area sovereign bond markets. Risk Governance and Control: Financial Markets & Institutions, 11(2), 18–31. https://doi.org/10.22495/rgcv11i2p2

      2021-04-01T11:59:27Z
       
  • The impact of the intellectual capital components on firm's performance in
           emerging markets
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The objective of this research is to review, analyse, and provide empirical evidence about the impact of the intellectual capital (IC) characteristics on the firm performance on listed 26 companies in Tunisian Stock Exchange for the years 2010–2019. 260 companies were taken as a sample of this research using the purposive sampling method. The efficiency of intellectual capital was measured using the value added intellectual coefficient (VAIC) method developed by Pulic (2000). The research method used was multiple linear regression analysis. Our empirical analysis substantiates the fundamental role of IC components in improving the financial and stock market performance of listed Tunisian companies. The results obtained on the human capital efficiency variable contribute to improving the market of Tunisian listed companies and confirm the role attributed to human capital in the knowledge economy and even the basic hypothesis of the VAIC method. Investors do not place any importance on the following variables: structural capital, human capital and the efficiency of structural capital during market valuation. Future research is suggested to use cross-country companies as the sample.

      Keywords: Human Capital, Structural Capital, Efficiency, Financial Performance, Stock Market Performance

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: G210, M45, M14

      Received: 02.01.2021
      Accepted: 22.03.2021
      Published online: 24.03.2021

      How to cite this paper: Chaabane, N. (2021). The impact of the intellectual capital components on firm's performance in emerging markets. Risk Governance and Control: Financial Markets & Institutions, 11(2), 8–17. https://doi.org/10.22495/rgcv11i2p1

      2021-03-24T12:53:37Z
       
  • Editorial: Challenges and opportunities in sustainable governance and
           finance
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on March 23, 2021.

      By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

      How to cite: Mattei, G. (2021). Editorial: Challenges and opportunities in sustainable governance and finance. Risk Governance and Control: Financial Markets & Institutions, 11(1), 4-6. https://doi.org/10.22495/rgcv11i1editorial

      2021-03-23T10:28:41Z
       
  • The impact of regulation governance on financial system efficiency: The
           importance of consumer behavior
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      This study focuses on the value structure that correlates improvements in the financial services consumer's decision-making quality with the development of their autonomy. The discussion is based on the concepts of ceremonial and instrumental values, according to Bush (1987). We anchor our analysis on the premise that there is still room for enhancing the results within the National Financial System – NFS – by broadening the scope of initiatives on financial services consumers' education and protection (von Borowski Dodl, 2020). Strengthening this perspective, we emphasize the consumer's role as an agent and the relevance of taking decisions according to their life plans. The analysis is undertaken through the institutional literature lens, considering both schools of thought: Original Institutional Economics (OIE) (drawing on Tauheed, 2013a, 2013b) and New Institutional Economics (NIE) (focusing on North, 1990). From the conjunction of the theoretical apparatus and the applied analysis, we propose a governance policy within the NFS aimed at increasing its efficiency. Effective communication between stakeholders and consumers' participation in the structuring of institutions – by publicly evincing their political power – hold the potential for promoting governance effectiveness. Additionally, although the approach taken focuses on the NFS, the diagnosis process carried out in this study can be easily reproduced in other contexts.

      Keywords: Governance, Regulation, Consumer, Institutional Matrix

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      Disclaimer: The views expressed in this work are those of the author and do not reflect those of the Central Bank of Brazil or its members.

      Acknowledgments: The author is thankful for the important contributions of Sidney Soares Chaves, José Renato Nunes Barros, Gustavo Jorge Laboissière Loyola, Cristiane Alkmin Junqueira Schmidt, Marcelo Luiz Curado and Eduardo Angeli. However, any possible remaining mistakes are the author's own responsibility. The author also thanks Ricardo Rezende de Pádua for his valuable backing; the Central Bank of Brazil for the financial support provided and the Federal University of Paraná for the opportunity to learn and discuss new ideas.

      JEL Classification: G18, G38, H11, O16

      Received: 22.12.2020
      Accepted: 12.03.2021
      Published online: 15.03.2021

      How to cite this paper: von Borowski Dodl, A. (2021). The impact of regulation governance on financial system efficiency: The importance of consumer behavior. Risk Governance and Control: Financial Markets & Institutions, 11(1), 80-93. https://doi.org/10.22495/rgcv11i1p6

      2021-03-15T14:12:08Z
       
  • Global fintech entrepreneurship and its influencing factors: An
           evolutionary economic analysis
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Fintech entrepreneurship has already influenced financial markets and their players worldwide in a disruptive, but also a risky way (Thakor, 2020; Zeranski & Sancak, 2020). In this context, it seems worthwhile to analyze which factors drive the design and development of global fintech entrepreneurship. Thus, the paper takes fintech-related research a step further by exploring the drivers of fintech evolution in different countries and continents that display different levels of fintech activity. For this purpose, first economic, technological, legal, and cultural factors influencing the development of fintech entrepreneurship are examined from an evolutionary point of view, and second, a generalized linear mixed model is used in order to evaluate the statistical relevance of these factors on fintech entrepreneurship more comprehensively. The analyzed data period from 2000 to 2017 also makes it possible to assess the influence of the dot.com bubble and the financial crisis on fintech entrepreneurship. The results of the empirical analysis suggest that the gross domestic product (GDP), regulatory burden, government tech procurement and the degree of individualism are important drivers of fintech startup activity. These findings help gauge the present and future market position of fintechs, leading to implications for entrepreneurs, competitors, and regulators alike.

      Keywords: Fintech Entrepreneurship, Startups, Innovation, Financial Institutions, Evolutionary Economics

      Authors' individual contribution: Conceptualization – T.H. and A.H.; Methodology – T.H., A.H., and J.S.; Formal Analysis – J.S.; Investigation – T.H. and J.S.; Writing – Original Draft – T.H. and A.H.; Writing – Review & Editing – T.H. and A.H.; Visualization – T.H.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G20, M13, O16, O30

      Received: 22.12.2020
      Accepted: 26.02.2021
      Published online: 01.03.2021

      How to cite this paper: Holtfort, T., Horsch, A., & Schwarz, J. (2021). Global fintech entrepreneurship and its influencing factors: An evolutionary economic analysis. Risk Governance and Control: Financial Markets & Institutions, 11(1), 61-79. https://doi.org/10.22495/rgcv11i1p5

      2021-03-01T12:36:32Z
       
  • Organizational behaviour and firm performance: A study of Italian retail
           industry
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      There is a growing consensus among scholars that the liberalization of shop opening hours increases revenues and creates jobs. While this is probably true, prior literature does not provide evidence on the risks of this kind of liberalization on the reduction of firm performance, and how firms in the retail industry manage the risk of underperformance. In fact, although theory establishes a direct link between increasing of shop opening hours with revenues and employment, it is challenging to rule out how firms react to this and if there are effects on firm performance. While several studies on firms' strategic choices on opening hours have recently been released, no empirical studies provide evidence on firm performance following a change in the regulation of shop opening hours. The study contributes to the literature adding evidence on consequences on firm performance, an aspect generally not analysed by prior scholars in this field. We explore the effects of extended shopping hours on performance faced by firms operating in retail industries. To this purpose, we collected data about a large sample of limited liability companies in Italy, where a reform was issued in 2012 to boost the economy even through liberalization of shop opening hours. Using data of Italian firms operating in the retail industries, we find that reducing restrictions on shopping hours increases revenues and personnel costs. Interestingly, our model predicts that the deregulation of shopping hours involves firm lower performance.

      Keywords: Retail Industry, Deregulation, Performance, Firm Behaviour, Employment

      Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

      Declaration of conflicting interests: The Author declares that there is no conflict of interest.

      JEL Classification: J3, M1, M4

      Received: 05.01.2021
      Accepted: 24.02.2021
      Published online: 26.02.2021

      How to cite this paper: Savio, R. (2021). Organizational behaviour and firm performance: A study of Italian retail industry. Risk Governance and Control: Financial Markets & Institutions, 11(1), 49-60. https://doi.org/10.22495/rgcv11i1p4

      2021-02-26T09:36:50Z
       
  • Sustainable vs. not sustainable cooperative banks business model: The case
           of GBCI and the authority view
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Sustainable finance has become a common lexicon of both supervisors and financial institutions in the last years also due to the COVID-19 crisis. Undoubtedly, the application of ESG (environmental, social, and governance) factors is currently designing a new strategic perspective, a new approach to business usually named “sustainable”. The paper's research problem is related to the reengineering of the bank's business model on sustainability. Integrate ESG factors within the decision-making process will not be enough for the European financial sector; it will be strategic that European authorities and regulators also ensure incentives in this direction. In this perspective, the paper has the purpose to answer the following questions: “How sustainable the business model of cooperative credit banks is and how they are ESG oriented?”, “What are the possible ways, in the prudential framework, to foster a higher attention to the ESG paradigm, in the bank's business model?”. The research methodology used analyses of a) the main features of cooperative bank systems and the sustainability of their business model and the conceptual benchmark framework used by EBA in the 2020 survey; b) the case of Iccrea Sustainability Framework. The contribution of our paper is manifold and likely to raise the interest of policymakers. Our argumentations and conclusions are likely to contribute in terms of recognition of the sustainable business model also in the prudential framework in the current COVID-19 economy.

      Keywords: Sustainability, ESG Risk, Cooperative Banks, Consolidated Cooperative Network Group

      Authors' individual contribution: Conceptualization – P.P.; Methodology – P.P.; Writing – P.P. and A.B.; Investigation – P.P. and A.B.; Funding – P.P.; Resources – P.P. and A.B.; Supervision – P.P. and A.B.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      Acknowledgements: The authors offer their acknowledgments to GBCI Sustainability Team for their suggestions: Elsa Arras, Elisa Bottoni, Claudia Gonnella, Giuseppe Ingrao, Matteo Pasolini. The paper is approved by the Scientific Committee on Sustainability of Iccrea Banking Group that is composed by Mario Calderini, Professor of Social Innovation, at School of Management, Milan Polytechnic; Paola Ferrara, Sustainability Manager of Confcooperative; Teresa Fiordelisi, Chairwoman of BCC Basilicata and Board member of Iccrea Banca SpA; Giuseppe Gambi (Chairman), Vice Chairman of Banca Ravennate, Imolese, Forlivese and Board member of Iccrea Banca SpA responsible for sustainability; Carmelo Giuffré, CEO of Irritec SpA; Marina Migliorato, Head of Sustainability Stakeholders Engagement, ENEL; Paola Pizzetti, Board Member of Emil Banca; Serena Porcari, CEO of Dynamo Foundation; Pasqualina Porretta, Associate Professor, Faculty of Economics, Sapienza University; Alessandra Smerilli, Professor of Political Economy, Auxilium University; Edoardo Zanchini, Vice Chairman of Legambiente.

      JEL Classification: G2, G3, K2

      Received: 30.11.2020
      Accepted: 22.02.2021
      Published online: 24.02.2021

      How to cite this paper: Porretta, P., & Benassi, A. (2021). Sustainable vs. not sustainable cooperative banks business model: The case of GBCI and the authority view. Risk Governance and Control: Financial Markets & Institutions, 11(1), 33-48. https://doi.org/10.22495/rgcv11i1p3

      2021-02-24T13:31:37Z
       
  • An empirical analysis of the FDI and economic growth relations in Albania:
           A focus on the absorption capital variables
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Over the past three decades, Albania has had positive and increasing foreign direct investment (FDI) inflows that have brought significant changes in many economic sectors. The paper's purpose is to analyze the dynamic relationship between FDI and economic growth, particularly emphasizing absorption capital variables. The research question is if the human capital development level, technological development, trade openness, public expenses, and financial system development in Albania help or hinder the materialization of the expected positive effect of FDI on economic growth? We used empirical analyses to evaluate these relationships based on the model created by Borensztein, De Gregorio, and Lee (1998). We changed a few variables in the model, and we used the multivariate vector autoregressive (VAR) model and the vector error correction model (VECM) to analyze the variables' causal relationships. Some of the results achieved are consistent with other authors' findings, so human capital is considered an essential element of host countries' absorptive capacity. In the long run, in Albania, the FDI's impact on economic growth positively affects human capital development, especially on knowledge and expertise and financial system development. However, the technological difference index gives a negative long-term impact on economic growth, and trade opening is statistically insignificant.

      Keywords: FDI, Economic Growth, Absorption Capacity, Human Capital

      Authors' individual contribution: Conceptualization – L.Ç., O.M., and F.M.; Methodology – L.Ç. and O.M.; Validation – L.Ç. and O.M.; Formal Analysis – L.Ç., O.M., and F.M.; Investigation – L.Ç.; Writing – Original Draft – L.Ç. and O.M.; Writing – Review & Editing – L.Ç. and O.M.; Visualization – O.M.; Supervision – L.Ç.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: F21, F43, C23, O10

      Received: 24.11.2020
      Accepted: 25.01.2021
      Published online: 27.01.2021

      How to cite this paper: Çakërri, L., Muharremi, O., & Madani, F. (2021). An empirical analysis of the FDI and economic growth relations in Albania: A focus on the absorption capital variables. Risk Governance and Control: Financial Markets & Institutions, 11(1), 20-32. https://doi.org/10.22495/rgcv11i1p2

      2021-01-27T12:20:16Z
       
  • Financial technology in the Finnish banking sector and its impact on
           stakeholders in the wake of COVID-19
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      Financial Technology (FinTech, hereafter) has integrated with the banking sector. Despite its fast growth, FinTech is a relatively new and under-explored phenomenon in the academic and corporate spheres. The current study aims to explore, first, the role and relevance of FinTech in the commercial banking sector in Finland; and second, the changing dynamics of stakeholders of the banking industry in the light of FinTech. The above objectives have been studied in the wake of the COVID-19 pandemic. The primary data has been collected through semi-structured interviews. A significant impact of FinTech has been observed in the following aspects of the banking sector: customers, strategy, risk management, investors, operations, competitiveness, and future growth. FinTech adoption has been contributed by the growth in the IT sector and innovations in the field of firm financing including crowdsourcing and peer-to-peer financing. Changing customers' demands and behaviour have also facilitated FinTech adoption (Lee & Teo, 2015). Banks have been integrating FinTech into insurance services and this feature has become more profound ever since banks increased their cooperation with international insurance companies (Paschen, Wilson, & Ferreira, 2020). Similarly, there has been a significant increase in collaboration between banks and FinTech start-ups. Nonetheless, the unpredictable factors, such as the ongoing COVID-19, can influence the future innovation and adoption of FinTech.

      Keywords: Financial Technology (FinTech), Digitalization, Banking Sector, COVID-19, Finnish Banking Sector

      Authors' individual contribution: Conceptualization – S.H.; Methodology – S.H. and T.Z.; Formal Analysis – S.H. and T.Z.; Investigation – S.H. and T.Z.; Resources – S.H. and T.Z.; Writing – Original Draft – S.H.; Writing – Review & Editing – S.H.; Visualization – S.H.; Project Administration – S.H. and T.Z.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G01, G21, G32, G34, M15, M41

      Received: 03.11.2020
      Accepted: 22.01.2021
      Published online: 25.01.2021

      How to cite this paper: Hundal, S., & Zinakova, T. (2021). Financial technology in the Finnish banking sector and its impact on stakeholders in the wake of COVID-19. Risk Governance and Control: Financial Markets & Institutions, 11(1), 8-19. https://doi.org/10.22495/rgcv11i1p1

      2021-01-25T10:07:43Z
       
  • Editorial: COVID-19: The unexpected and disruptive event that will
           radically shake up and change the world as we know it
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      This issue of Risk Governance and Control: Financial Markets & Institutions journal was published on January 22, 2021.

      By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

      How to cite: Pezzuto, I. (2020). Editorial: COVID-19: The unexpected and disruptive event that will radically shake up and change the world as we know it. Risk Governance and Control: Financial Markets & Institutions, 10(4), 4-6. https://doi.org/10.22495/rgcv10i4editorial

      2021-01-22T12:07:40Z
       
  • The link between debt finance and profitability in the emerging market: A
           case study of a furniture retail company
    • "Creative
      This work is licensed under a Creative Commons Attribution 4.0 International License.

      Abstract

      The objective of this research was to establish the impact of debt finance on the profitability of a firm using A furniture retail company (pseudo name “A”) as a case study. The mixed methods approach was employed quantitative data from financial statements and qualitative data from interviews. The target population was 25, hence the researchers used a population census, 24 participants assisted in the research. The statistical method used for analysing secondary data was STATA 11. The regression model and variables incorporated were debt ratio, which was the independent variable, and the return on asset ratio, which was the dependent variable, and the measure of profitability in this particular research. Main findings from the research indicated that debt financing was significantly and statistically negatively affecting the return on assets of the company. The regression yielded a p-value of 0.018 and a coefficient of 0.9992 thus confirming a 99.92% that the variability in profitability is well explained by the independent variable used in this research which is debt finance. The study recommends companies to carry out an in-depth cost-benefit analysis of debt financing to ensure optimum profitability especially for small and private limited companies in a volatile economy (Zimbabwe).

      Keywords: Debt Finance, Financial Risk, Profitability

      Authors' individual contribution: Conceptualization – C.M.; Methodology – L.N. and E.M.; Formal Analysis – L.N., C.M., and E.M.; Investigation – C.M., L.N., and H.I.H.; Data Curation – L.N. and E.M.

      Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

      JEL Classification: G30, G32, L25

      Received: 26.09.2020
      Accepted: 08.01.2021
      Published online: 11.01.2021

      How to cite this paper: Nyamwanza, L., Haufiku, H. I., Ellen, M., & Mhaka, C. (2020). The link between debt finance and profitability in the emerging market: A case study of a furniture retail company. Risk Governance and Control: Financial Markets & Institutions, 10(4), 57-80. https://doi.org/10.22495/rgcv10i4p5

      2021-01-11T10:56:02Z
       
 
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