The impact of financial regulation on financial control efficiency: A comparative analysis of economies
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Author(s)Ihor RekunenkoLink to ORCID Index: https://orcid.org/0000-0002-1558-629X
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Artem Koldovskyi
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Kristina BabenkoLink to ORCID Index: https://orcid.org/0000-0001-7227-886X
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Rasa SubačienėLink to ORCID Index: https://orcid.org/0000-0001-6559-8478
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DOIhttp://dx.doi.org/10.21511/afc.06(1).2025.02
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Article InfoVolume 6 2025, Issue #1, pp. 13-24
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1 Downloads
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Creative Commons Attribution 4.0 International License
A significant aspect of financial regulation provides for risk mitigation, transparency improvement, and maintaining economic stability, making financial control systems more efficient. This article analyzes the interaction of financial regulation strength with financial control efficiency in five economies, such as the USA, the UK, Germany, Poland, and China, from 2020 to 2023. An econometric model is utilized and the World Bank Financial Regulatory Index is incorporated as the core independent variable, along with financial infrastructure, efficiency of risk modeling, GDP growth, inflation, and financial leverage; all variables are used to understand their effect on financial control mechanisms. It is confirmed that the stronger financial control efficiency of the USA, the UK and Germany is associated with their stronger scoring by financial regulation (the countries with higher scores of financial regulations are better enforced and have more appropriate risk management strategies). On the other hand, Poland and China have problems in terms of regulatory enforcement which translates into lower effectiveness of financial control. The results also show that inflation and financial leverage decrease the efficiency of financial control, and financial infrastructure and risk modeling are positively related to financial control efficiency. The study emphasizes the exigency of regulating financial oversight in emerging markets, strict enforcement policies, and embracing technological advancements that supplement the area. A future research agenda needs to broaden the scope to other economies and qualitative assessments of regulatory effectiveness.
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JEL Classification (Paper profile tab)M48, G18, H83
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References36
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Tables1
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Figures1
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- Figure 1. FRI for 2020–2023 for each country
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- Table 1. Integration of FI and RM in accounting and financial control frameworks
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The role of accounting in sustainable development
Inna Makarenko ,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
Accounting and Financial Control Volume 1, 2017 Issue #2 pp. 4-12 Views: 8183 Downloads: 4897 TO CITEIdeology of Sustainable Development and Sustainable Development Goals influence the transformation of business processes in the companies. Professional accountants are important part of this transformation. In this paper the role of accounting in Sustainable Development Goals achievement is discussed. Different approaches to structuring the role of professional accountants in Sustainable Development are investigated. Among them are types of roles that perform accountants, their professional functions, skills and competencies in the corporate environment. As the result a holistic vision of the role of accounting in sustainable development in the new economic conditions is provided.
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The risk management practices in the manufacturing SMEs in Cape Town
Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 386-403 Views: 3496 Downloads: 560 TO CITE АНОТАЦІЯRisk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.
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The determinants of liquidity risk of commercial banks in Vietnam
Tu T. T. Tran ,
Yen T. Nguyen ,
Thuy T.H. Nguyen ,
Long Tran
doi: http://dx.doi.org/10.21511/bbs.14(1).2019.09
Banks and Bank Systems Volume 14, 2019 Issue #1 pp. 94-110 Views: 2084 Downloads: 1218 TO CITE АНОТАЦІЯThis research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Using the OLS regression method for analysis, it was found that:
- the interbank market helps commercial banks improve their liquidity;
- the larger the loan size, the higher the liquidity risk;
- good credit risk management has a positive impact on liquidity risk management; and
- long-term interest rate is negatively related to the liquidity of commercial banks.
The research also makes recommendations on liquidity risk management policies to banks and policy-makers from the Government and the State Bank of Vietnam.
