Managing expectations in financial markets: voluntary accountability practices of capital market regulators in Spain and Turkey

2021 ◽  
Author(s):  
Fulya Apaydin ◽  
Jacint Jordana
Keyword(s):  
Comparative Study ◽  
Financial Markets ◽  
Public Administration ◽  
Capital Market ◽  
Financial Regulation ◽  
Organizational Capacity ◽  
Regulatory Agencies ◽  
The World ◽  
Independent Regulatory Agencies ◽  
Accountability Practices

Abstract In recent decades, independent regulatory agencies (IRAs) have been introduced as part of public administration reforms around the world. Unlike traditional administrative agencies, most IRAs are not accountable to the executive and their accountability relationship to the legislative tends to be weak. Nevertheless, these agencies often engage in acts of voluntary explanation and justification of their decisions to stakeholders. Based on a comparative study of financial regulation agencies, this article shows that these IRAs resort more actively to voluntary accountability when the expectations of actors interacting with the agency are at conflict. Specifically, we argue that the agency’s ability to manage expectations is shaped by the level of agency independence and the degree of organizational capacity. Our findings contribute to the existing debates by conceptualizing voluntary accountability as a mechanism for managing stakeholders’ conflicting expectations through the lens of financial regulation based on original evidence from Spain and Turkey.

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals Some Thoughts on Innovation and Regulation of Financial Technology

2021 ◽  
Vol 13 ◽  
pp. 127-132
Author(s):  
Zhuoying Li
Keyword(s):  
Artificial Intelligence ◽  
Financial Markets ◽  
Information Technologies ◽  
Financial Regulation ◽  
Technology Development ◽  
Regulatory Agencies ◽  
Financial Risks ◽  
Innovative Development ◽  
Financial Industry ◽  
Financial Technology

The recent years witness innovative development of financial industry, which attributes to fast progress and in-depth application of information technologies such as big data, artificial intelligence, and blockchain. But, at the same time, they bring challenges to financial regulation and accelerate rise of regulatory technology. Based on challenges to regulatory agencies brought by financial technology development, this study proposes suggestions for the coordinated relationship between financial innovation and financial technology regulation from the perspective of technology empowerment, in order to improve efficiency of financial markets, and reach a balance between financial technology and prevention of systemic financial risks.

scholarly journals THE GLOBAL IMPACTS OF TRANSFORMATION ON WORLD CAPITAL MARKET

2017 ◽  
pp. 89-98 ◽  
Author(s):  
Pavlo LUTSIV
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
World Economy ◽  
High Efficiency ◽  
Modern World ◽  
Stock Exchanges ◽  
Modern Theory ◽  
International Capital ◽  
International Capital Market ◽  
The World

Introduction. The general feature of the modern theory of globalization is the interdependence of economies of countries of the world, which is based on the transformation of national economics into an integrated global world economy. Permanent transformations of world economic processes lead to corresponding changes in the distribution and redistribution of capital. Essential growth of amounts and quantities of ІPO-transactions is showing the high efficiency of the principal financial instrument which is IPO-market. Purpose. The investigation of condition of transformation process on international capital market, installation of tendencies in changing of dynamic of the activity on world IPO market. Results. The globalization of financial markets has a revolutionary effect not only forworld financial market, but also for international investors and borrows of capital. The theoretical concept of globalization of financial markets provides of elimination barriers between domestic and international financial markets. The modern world economy is characterized by three tendencies such as new convergence, cyclical interdependence and dissimilarity in distribution. The essence and forms of manifestation ofthe financiaiization ofthe economics are deployed which leads to an increase in the financial depth of the economy. The essence of the international capital market is complemented by the analysis of problems ofthe development of IPO-market. Conclusion. The international capital market is in a condition of constant renewal through the positive influence of globalization processes in the world economy. The consolidation of Western stock exchanges on the IPO-market is continuing, while stock exchanges are expanding in developing countries throughjoint initiatives and closer integration.

Capital Market Frauds

2021 ◽  
pp. 332-354
Author(s):  
Shailendra Singh
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Financial Innovation ◽  
Fraud Detection ◽  
Global Integration ◽  
Significant Development ◽  
Regulatory Authorities ◽  
Regulatory Frameworks ◽  
The World ◽  
Detection Mechanisms

In recent times there has been a significant development in financial markets that include global integration, internet-based trading, and financial innovation to name a few. Now financial markets are more sophisticated, diversified, and internationalized than ever. During the last decade, as a result of the Enron and WorldCom scandals, numerous legislations, amendments, and restructuring policies are introduced across the world. This chapter mainly covers various aspects of capital market frauds, manipulation practices, and country case studies from global financial markets. The chapter also highlights international regulatory frameworks, guidelines, and challenges being faced by the regulatory authorities. Fraud detection mechanisms and opportunities for the future are also discussed.

Attitude of Investors to Capital and Money Market Investments Before and After Financial Crisis

2014 ◽  
Vol 3 (1) ◽  
pp. 53-64
Author(s):  
Felicia Omowunmi Olokoyo ◽  
Babajide Michael Oyewo ◽  
Abiola A. Babajide
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Capital Market ◽  
Stock Exchange ◽  
Secondary Data ◽  
Money Market ◽  
Economic Recovery ◽  
The World ◽  
Before And After ◽  
Multivariable Regression

In the second half of 2008, the world experienced financial and economic storm. Value of investments crashed and investors lost money to the extent of their exposure to financial markets. In the light of gradual global economic recovery from the effect of the financial crisis in recent times, the research comparatively studied the attitude of investors to investments before and after the financial melt-down in Nigeria. Secondary data sourced from the Nigerian Stock Exchange (NSE) for the period 1961 to 2011 were analysed using statistical procedures such as correlation, multivariable regression and t-test. The study found out that there was significant change in the attitude of investors before and after the financial crisis to investments, as investors switched funds from capital market securities in favour of money market instruments which guaranteed fixed interest income. Despite the fact that the capital market is gradually recovering; investors still demonstrate low confidence in the market. It was therefore recommended that the NSE should strive to regain and retain common investors' confidence in the primary market through improvement in their corporate performance.

External Factors of Big Business Transformation in Russia

2005 ◽  
pp. 72-89 ◽  
Author(s):  
Ya. Pappe ◽  
Ya. Galukhina
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Business Groups ◽  
External Factors ◽  
Big Business ◽  
Business Transformation ◽  
Global Standards ◽  
The World ◽  
Principal Subject

The paper is devoted to the role of the global financial market in the development of Russian big business. It proves that terms and standards posed by this market as well as opportunities it offers determine major changes in Russian big business in the last three years. The article examines why Russian companies go abroad to attract capital and provides data, which indicate the scope of this phenomenon. It stresses the effects of Russian big business’s interaction with the world capital market, including the modification of the principal subject of Russian big business from integrated business groups to companies and the changes in companies’ behavior: they gradually move away from the so-called Russian specifics and adopt global standards.

The world and Russia: Inflation is minimal, economic growth is slowing, risks are rising

2019 ◽  
pp. 5-23 ◽  
Author(s):  
Mikhail V. Ershov ◽  
Anna S. Tanasova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
World Economy ◽  
Domestic Demand ◽  
New Combination ◽  
Russian Economy ◽  
The World ◽  
World Economic ◽  
Money Creation ◽  
Main Factors

Russian economy has reached the low level of inflation, but economic growth has not accelerated. Moreover, according to official forecasts, in the following years it will still be low. The article concludes that domestic demand, which is one of the main factors of growth, is significantly constrained by monetary, budgetary and fiscal spheres. The situation in the Russian economy is still hampered by the decline of the world economic growth. The prospects of financial markets are highly uncertain. This increases the possibility of crisis in the world. Leading countries widely use non-traditional measures to support their economies in the similar environment. In the world economy as well as in Russia a principally new combination of factors has emerged, which create specific features of economic growth. It requires special set of measures to stimulate such growth. The article proves that Russian regulators have large unused potential to stimulate growth. It includes monetization, long-money creation, budget and tax stimuli. It is important that the instruments, which will be used, should be based on domestic mechanisms. This will strengthen financial basis of the economy and may encourage economic growth. Some specific suggestions as to their use are made.

Dirk J. Wolfson. Public Finance and development Strategy. Baltimore: The Johns Hopkins University Press. 1979. Pp. xiv+264.

1982 ◽  
Vol 21 (3) ◽  
pp. 255-257
Author(s):  
Zafar Mahmood
Keyword(s):  
Public Finance ◽  
Economic Policy ◽  
Public Administration ◽  
Development Strategy ◽  
Executive Branch ◽  
Policy Makers ◽  
Use Of Resources ◽  
Johns Hopkins University ◽  
The World ◽  
Economic Council

The world in its politico-economic aspects is run by policy-makers who have an academic background in law or public administration or other related social disciplines including economics. Only rarely would a majority of the policy-makers be trained in economics. In the making of economic policy, the basic choices before the policy-makers are political and they transcend the narrow concerns of economists regarding optimal use of resources. These considerations in no way downgrade the relevance of economic analysis in economic policy-making and for the training of policy-maker in economics. Policy-makers need economic council to understand fully the implications of alternative policy options. In this book, Wolfson attempts to educate policy-makers in the areas of public finance and development strategy. The analysis avoids technicalities and is kept to a simple level to make it understandable to civil servants, law-makers and members of the executive branch whom Wolfson refers to as policy-makers. Simplicity of analysis is not the only distinguishing mark of this book. Most other books on public finance are usually addressed to traditional public finance issues relating to both the revenue and expenditure sides of the budget and neglect an overall mix of issues dealing with the interaction of fiscal policy with economic development. Wolfson in this book explicitly deals with these issues.

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