This study contributes to the existing entrepreneurship literature by demonstrating how formal and informal entrepreneurship in emerging economies are differentially driven by the interplay between ...financial development and good governance. The following findings are obtained through the two-step system Generalized Method of Moments: (i) there exists an unconditional positive (negative) impact of financial development on formal (informal) entrepreneurship; (ii) the conditional effect of quality of governance increases formal entrepreneurship and decreases informal entrepreneurship; (iii) the net effects on formal entrepreneurship from the interactions of financial development with the indicators of governance quality are mostly positive, indicating that the quality of governance can be employed to enhance the positive weak effect of financial development on formal entrepreneurship; and (iv) the net effects on informal entrepreneurship from the interactions between financial development and the indicators of governance quality are negative for most estimated models, indicating that good governance can be used as a policy variable that improves the potentially weak impact of financial development on reducing informal entrepreneurship. Theoretical and empirical contributions, policy and practical implications are also discussed.
Green energy transition directly contributes to Sustainable Development Goals 7 and 13, which are among the 17 development goals determined by the United Nations. However, what are the determinants ...of this green energy transition? Researchers' answers to this question will assist in formulating policy prescriptions that will enable concrete steps toward achieving these goals. This study investigates how the development of the banking sector, human rights, economic complexity, and economic freedom affect the green energy transition in China, which is the biggest emitter of greenhouse gases globally but is also one of the leading countries in renewable energy production. The study covers the years 1995–2022. Advanced time series analysis methods were employed, and robust results were reported. According to the findings, Economic Freedom, Human Rights, and Economic Complexity have increased the transition to green energy in China. No effect of banking sector development was found. The country should improve economic freedom and human rights and increase knowledge/innovation-based production to accelerate China's transition to green energy and contribute to environmental sustainability.
•Green energy transition is influenced by socio-economic factors.•Advanced and robust estimation methods are used.•China is researched for the years 1995–2022.•Sustainable Development Goals are covered.
Current issues of non-bank lending by financial companies and the vision of the future regulation of their activities outline in detail the developments set out in this article. Changes in the volume ...of lending in the non-banking financial market are analyzed. The analysis of the concentration level of loans by the amount of concluded agreements is carried out. The future vision and mission of the financial sector of the economy are formed. Criteria for assessing the required degree of supervision of a credit company are defined. In the study, we used general and specific economic methods, as well as a basic research approach, which allowed us to determine the economic nature of the financial sector and the scope of lending to agricultural enterprises.The goals of realization of an economic growth strategy for the perspective period for the achievement of the European standards in the financial market are offered. Financial support for current activities and promising economic development in Ukraine still remains a significant problem. Expanding access to financial resources of agricultural entities may be one of the factors for the development of Ukraine’s economy. The main goal of the National Bank is to introduce a risk-oriented approach in the licensing and supervision procedures of the non-bank lending market, which will allow it to develop and ensure compliance with the rights and interests of customers. It is proposed to maintain the procedure for agreeing significant participation for financial companies as a key element in verifying the transparency of ownership structures and the impeccable business reputation of owners. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals for the current state of lending and recommendations for supervision in the financial market of Ukraine.
Keywords: lending, financial sector, financial sector regulators, non-bank lending, stabilization.
JEL Classification G19
Formulas: 0; fig.: 5; tabl.: 0; bibl.: 15.
This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen considering the financial sector’s fundamental ...role and its. impact on sustainable economic growth. This impact is measured through the effect that macroeconomic determinants of financial. performance such. as inflation, GDP. growth, general government final consumption expenditure, trade, and the lending interest rate have on credit to private sector as a share of GDP and broad definition of money as a ratio of GDP, which were used to proxy financial sector development. The data are provided by the World Bank as well as the Central. Banks. of the respective countries, for the period 2002–2021. The research methodology consists of different panel regression models such as OLS, OLS robust, Fixed effects, Random effects, and Generalized method of moments (GMM). Findings indicate that domestic credit to the private sector and inflation are positively correlated, whereas broad money and inflation are negatively correlated.
This study focuses on the implications of corporate social responsibility (CSR) on the strategic risk of the listed financial and non-financial firms in Nigeria. The population of the study consists ...of 154 firms, while the census sampling technique was adopted to arrive at an adjusted population of 133. The correlation research design was implored using a positivism approach. Descriptive statistics, correlation matrix, multiple regression, confirmatory analysis and T-test were used to analyze the data extracted from the annual report. Hence, the result of the study shows that corporate social responsibility has a negative impact on strategic risk. The confirmatory factor analysis found that CSR engagement influences strategic risk (SRK), but to varying degrees, contradicting findings from the Frontier Model, PCSE, and GLS that both sectors will have similar results if they engage in CSR effectively. It is therefore suggested that the management of strategic risks need to be more integrated in corporate strategy as the capacity to listen to business stakeholders' viewpoints on social and environmental issues becomes a competitive need.
With the government's focus on combatting public sector corruption and violent crime, the plight of white-collar financial crime in the private sector is of subordinate priority. This contribution ...seeks to explore means to enhance the capacity of law enforcement agencies to combat white-collar financial crime in the private sector. We clarify the salient terminology and give an overview of the role of financial sector regulators in financial crime prevention in South Africa, focussing on the Financial Sector Regulation Act 9 of 2017. Financial sector regulators have an important role to play against financial crime, though they are dependent on the criminal justice system to protect the financial sector against criminals. This section is followed by an overview of the role and functions of the South African Police Service, the National Prosecuting Authority, and the court system. We identify difficulties which may hinder the prosecution of white-collar financial crime. First, there is a tendency that companies do not investigate conduct that may amount to white-collar financial crime, and otherwise do not report such incidents. Second, there is a need for a specialised and independent law enforcement agency to attend to serious white-collar financial crime. There is also a skills shortage in the National Prosecuting Authority relative to the intricacies of white-collar financial crime. As remedial measures, companies ought to apply the corporate governance principles of King IV more robustly. Artificial intelligence can also be utilised to prevent white-collar financial crimes committed in cyberspace. Private sector agencies should be vested with a more comprehensive duty to report white-collar financial crime to the authorities, and the protection and scope of whistle-blowers should be increased. We propose the introduction of Deferred Prosecution Agreements, as well as cooperation between the State and the private sector, to weaken capacity constraints in the prosecution process.
This paper investigates how human capital in the financial sector affects corporate innovation. Based on China's National Economic Census in 2008, we construct a measure of the financial sector's ...human capital across prefecture-level cities and then match the data with nonfinancial listed firms over 2009–2017. We find that human capital in the financial sector plays a significant and positive role in firms' patent quantity and quality; this effect is more pronounced for firms with higher R&D intensity, more serious financial constraints, lower industry competition and those located in regions with lower bank density and lower marketization levels. Furthermore, the mechanism tests show that debt issuance and R&D investment increase as more highly educated workers flow into the financial sector, while the cost of debt and the cash flow sensitivity of fixed assets investment decrease, consistent with the credit constraints channel. Our findings argue that increasing human capital in the financial sector does not impede corporate innovation but strengthens corporate innovation by reducing the information asymmetry between the financial and productive sectors.
The effect of financial sector development on economic growth is among the main debatable issue in economics and policymaking. Thus, by using different financial sector dimensions, this research ...tried to look at the effect of financial sector development on the economic growth of 25 sub‐Saharan Africa countries for the period 2010–2017. Precisely, three dynamic panel data models that look at the effect of financial sector depth, access, and efficiency on economic growth were estimated by two‐step system GMM estimation. In this research, credit extended to the private sector per GDP, commercial bank branch per 100,000 adult population, and Return to assets were used as a proxy and measures for financial sector depth, access, and efficiency respectively. Accordingly, the results revealed that financial sector depth, access, and efficiency have a positive and statistically significant effect on these countries' economic growth. Therefore, it is recommended that the concerned bodies that broadening the depth of financial institutions by giving more credit to the private sector is essential. Besides, the financial institutions will have to be expanded to increase their accessibility to the mass and take some measures to promote their efficiency.
The situation on the market of bank crediting of agricultural enterprises is analysed. Have been identified the key reasons for the low efficiency of the current mechanism of lending by banks to the ...agro-industrial sector. The key shortcomings in the system of financing the enterprises of the agro-industrial complex are revealed. The investment attractiveness in Ukraine is considered and specified in the dynamics by regions. The volumes of financing the activity of agro-industrial enterprises in Ukraine by sources of income are analysed. It is proved that effective financing opens wide opportunities for the development of enterprises in the agricultural sector.
In the study general and specific economic methods, as well as a basic research approach, which allowed us to determine the economic nature of the financial sector and the scope of financing of agricultural enterprises are used. The financial instruments of the agricultural enterprise use of which will promote the achievement of the European standards are offered. Scientifically substantiated recommendations on the directions of application in Ukraine of the international experience of stimulation of the financial activity of subjects of the agro-industrial complex are entered. In developed countries, a rich arsenal of support tools is used to support financial activities in the agro-industrial complex. A list of the most common tools for such support used in developed countries is given. It is noted that the solution of problems of financial support for the development of the agro-industrial complex should be carried out on the basis of studying, generalizing, and taking into account the best international experience. The world experience of financing the agricultural sector of the economy and the peculiarities of the distribution of state subventions for the development of agricultural production are studied. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals for the current state of lending to agriculture and recommendations for the use of new financial instruments in the context of the implementation of international experience.
Keywords: crediting, financial sector, agro-industrial complex, international experience.
JEL Classification Q14
Formulas: 0; fig.: 5; tabl.: 2; bibl.: 16.
The financial sector relies heavily on information systems for business. This study sets out to investigate cyber situation awareness in the financial sector in Sweden, by examining what information ...elements that are needed for a common operational picture, and exploring how key actors perceive cyber-threats.
Data was collected through a survey and a series of interviews with key actors in the sector in conjunction with a national level crisis management exercise. The data was then analyzed and contrasted to theory. Conclusions were drawn and results discussed. Finally, possible mitigation actions were suggested.
It was found that actors in the Swedish financial sector have a well developed crisis management working concept. However, information about rational adversaries that cause prolonged disturbances is possibly not collected, analyzed and utilized systematically. Much effort is put into ensuring that timely and relevant information from organizations is shared in an efficient manner. The sector perceives cyber-threats against the underlying financial infrastructure, as well as against IT service availability and data confidentiality, besides financial theft. The sector has particular concerns for the potential of reputational loss due to cyberattacks. There are also special concerns about the insider threat.
Respondents agree that risk management has to account for cyber risk. A possible route to enhance risk management practices is to ensure that cyber personnel is integrated in crisis management teams.
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