Designing optimal models of financial regulation in a changing financial environment / Marianne Ojo.

Format:

Book

Author/Creator:

Ojo, Marianne, author.

Contributor:

Ojo, Marianne, editor.

Series:

Financial institutions and services.

Financial Institutions and Services

Language:

English

Subjects (All):

Financial services industry.

Financial institutions--Law and legislation.

Financial institutions.

Banking law.

Social responsibility of business.

Physical Description:

1 online resource (254 p.)

Place of Publication:

New York, [New York] : Nova Science Publishers, 2016.

Language Note:

English

Summary:

As well as highlighting how corporations and enterprises -- national or multinational -- can be effectively engaged in entrepreneurship and innovation as a means of fulfilling corporate social responsibility goals and objectives, this book aims to propose means whereby auditors (and particularly, external auditors) could more effectively fulfil corporate governance roles through implementation of local, regional, national and internationally recognised codes, regulations, and standards. Whether it is advantageous to regulate both securities investments and consumer financial instruments through a single entity (as is accomplished by the Financial Conduct Authority in the United Kingdom), or through various specialised agencies (as is accomplished in the United States through the Securities and Exchange Commission and the Consumer Financial Protection Bureau) depends on the structure of the "single entity" and whether such an entity is still working as part of a larger entity whose effectiveness is primarily determined by the extent and level of coordination and cooperation with other entities in the supervisory process. As the tripartite arrangement between the Financial Services Authority, Bank of England and the Treasury has revealed, even well-designed regulatory structures are prone to flaws and shortcomings, where resources are inadequately allocated and where the necessary level of communication and coordination is lacking. The structure of financial regulation is hence not only crucial to the success of the attainment of regulatory objectives, but also the extent of involvement, coordination, and cooperation between involved supervisory authorities. Further, the allocation of appropriate tools and resources to those authorities who are best endowed, equipped with the expertise to carry out the required level of monitoring and supervision, as well as clear allocation of such responsibilities, would ensure resources of time and expertise are not wasted, and that responsibilities are not duplicated. As well as highlighting the impact of asymmetric information on levels of monitoring procedures and how conflicts of interests could arise between corporations and their shareholders or between governments and the firms being regulated by the regulator, this book also aims at accentuating the need for the operation of certain vital safeguards, given the merits that are and could be derived from self-governance and self-regulation. Several safeguards that are aimed at bolstering the agent's objectives and actions are closely monitored, as well as aligned with firm investors' desires, encompass and relate to the encouragement of longer term firm economic performance. This also includes increasing shareholder voting power, and the implementation of legislative tools and financial reporting standards as means of determining how effectively executives and management are to be compensated. Finally, this book is also aimed at exploring how these safeguards could be applied, particularly within the context of insider trading and the rationale behind several jurisdictions to adopt or not adopt insider trading regulations. The author seeks to provide the readers with a better understanding of how corporate governance structures can assist businesses.

Contents:

DESIGNING OPTIMAL MODELS OF FINANCIAL REGULATION IN A CHANGING FINANCIAL ENVIRONMENT ; DESIGNING OPTIMAL MODELS OF FINANCIAL REGULATION IN A CHANGING FINANCIAL ENVIRONMENT ; CONTENTS ; PREFACE ; EXECUTIVE SUMMARY ; Chapter One; Chapter Two; Chapter Three; Chapter Four; Chapter Five; Chapter Six; Chapter Seven; Chapter Eight; Chapter Nine; Chapter Ten; Chapter Eleven; Chapter Twelve; Chapter Thirteen; Chapter Fourteen; Chapter Fifteen; Chapter Sixteen; Chapter 1 BACKGROUND TO THE STUDY ; 1. Introduction; 1.1. Exploring Potentials of Self Governance through Financial Reporting Standards

"Say on Pay" Voting1.2. Arguments against Insider Trading and the Impact of Insider Trading on Corporate Governance; 1.3. Advantages and Disadvantages of Self-Regulation; 1.3.1. Advantages of Self-Regulation; 1.3.2. Disadvantages of Self-Regulation; 1.4. Introducing the Concepts of Enforced Self-Regulation, Meta Regulation and Responsive Regulation; 1.4.1. Enforced Self-Regulation; 1.4.2. Traditional Regulation; 1.4.2. (a) Advantages of Traditional Regulation; 1.4.2. (b) Addressing the Deficiencies of Traditional Regulation

1.4.3. Meta Regulation: Why Meta Regulation Could Be the Most Responsive Form of RegulationConclusion; Chapter 2 REVIEW OF THE LITERATURE ON SELF GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY ; 2.1. Introduction; 2.2. Corporate Social Responsibility, Self-Regulation and Meta Regulation: Concepts and Definitions; 2.3. Co-Operative and Competitive Enforced Self-Regulation; 2.4. Addressing the Principal Agent Problem; 2.5. Theories of Self-Regulation; 2.6. Pyramids of Regulatory, Punitive Strategies and Corporate Social Responsibility

2.7. Contrasting the CSR Pyramid with the Pyramid of Enforcement and Regulatory Strategies2.8. Attaining Goal and Profit Maximization Objectives at All Costs?; 2.9. Empirical Studies on IFRS Adoption and Regulatory Developments and Justification for Government Regulation; 2.10. The Impact of the Sarbanes Oxley Act on the Regulation of the Public Company Accounting Oversight Board (PCAOB); Conclusion; Chapter 3 RESTORING TRUST IN BUSINESS FOLLOWING CORPORATE COLLAPSES LIKE ENRON: SARBANES OXLEY ACT AND PRINCIPLES BASED ACCOUNTING ; 3.1. Introduction

3.2. Role of Audits and Audit IndependenceNon Audit Services; 3.3. The Move to Principles Based Accounting; 3.4. Recommendations and Stakeholder Involvement in Enforced Self-Regulation; Conclusion; Chapter 4 RESPONSIVE REGULATION AND CORPORATE SOCIAL RESPONSIBILITY: ACHIEVING THE RIGHT BALANCE BETWEEN PERSUASION AND PENALIZATION ; 4.1. Introduction; 4.2. Interactions between States and Markets; Legal Regulation; 4.3. Achieving Greater Compliance under the Pyramid of Regulatory Strategies: Enforced Self-Regulation; 4.4. Addressing the Deficiencies of Traditional Regulation

Self-Regulation, Co-Regulation and Meta-Regulation

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-63484-843-8