Risk Governance and Control: Financial Markets & Institutions 

About: Risk Governance and Control: Financial Markets & Institutions is an academic journal published by Virtus interpress. The journal publishes majorly in the area(s): Corporate governance & Emerging markets. It has an ISSN identifier of 2077-429X. It is also open access. Over the lifetime, 512 publications have been published receiving 1707 citations. The journal is also known as: Risk governance and control: financial markets and institutions.

Fraud Diamond: Detection Analysis On The Fraudulent Financial Reporting

Abstract: The accounting scandal became one of the reasons for analyzing financial statements in order to minimize fraud against the financial reporting. Therefore, companies use the services of a public accountant to audit the financial statements of companies that are expected to limit the fraudulent practices that increase the public's confidence in the company's financial statements. This study aims to detect fraud by using analysis of fraud diamond . This study takes banking companies listed on the Indonesian Stock Exchange in 2009-2014, with a total sample of 149 banks. Based on the results the external pressure, financial stability and capability have influence on fraudulent financial reporting. While target financial, ineffective monitoring and rationalization does not affect the fraudulent financial reporting.

An extensive exploration of theories of foreign direct investment

Abstract: The purpose of this study was to identify and examine the key foreign direct investment theories. The history and origins of FDI theories were considered, prior to dwelling in-depth on the theories themselves. FDI theories were classified under macroeconomic and microeconomic perspectives. Macroeconomic FDI theories emphasize country-specific factors, and are more aligned to trade and international economics, whereas microeconomic FDI theories are firm-specific, relate to ownership and internalisation benefits and lean towards an industrial economics, market imperfections bias. FDI theories are fairly complex to explain and apply. This paper is purely qualitative in nature, and attempted to explain the different FDI theories by providing an analyisis of the key theories used in many scholarly works**.

Accounting fraud: a literature review

Abstract: This paper explains the main features of accounting fraud across an examination of the current literature by putting the environment and the different ways to prevent fraud under a microscope. The study analyses in five steps how corporate governance, ethical behaviour, accounting manipulation, detection techniques and forensic accounting are related to fraud. After having reviewed the most relevant literature on the topic, it emerged that in order to avoid fraudulent behaviour in a company, it is important, mostly, to establish an ethical education between employees and executives. Therefore, this article examines how governance elements such as board, CEO, or remuneration, influence the occurrence of fraud inside companies. Last but not at least, it has been seen how the role of forensic accountant has revealed itself as being very useful for his varied expertise, which have been analysed, and has been positioned as one of the top 20 future jobs.

The quality of institutions and financial development in mena countries: an empirical investigation

Abstract: This paper provides new evidence that sheds light on the influence of institutional quality on financial development using data from Middle East and North African (MENA) countries over the period of 1984-2007. To measure institutional quality we construct a yearly composite index (INST) using the International Country Risk Guide’s (ICRG). The results of both panel data and IV techniques of estimation show that the institutional quality is more relevant for banking sector than for stock market development. Examining the impact of five sub-indicators of the composite ICRG index on financial sector development, we find that some institutional aspects matter more than others do. While law and order are the most relevant determinant of banking sector development, corruption and investment profile are of secondary importance for banking sector development. We also find that, investment profile is the most relevant determinant of stock market development. It has a positive significant effect on market index and stock market liquidity.

Formalization of factors that are affecting stability of ukraine banking system

Abstract: Intensification of financial development during last decade causes transformation of banking sector functioning. In particular, among the most significant changes over this period should be noted the next ones: convergence of financial market segments and appearance of cross-sector financial products, an increase of prevailing of financial sector in comparison with real economy and level of their interdependent, an intensification of crisis processes in financial and especially banking sector and a significant increase of the scale of the crisis consequences etc. thus, in such vulnerable conditions it is become very urgent to identify the relevant factors that can influence on the stability of banking sector, because its maintenance seems to be one of the most important preconditions of the stability of the national economy as a whole. Purpose of the article is to analyze key performance indicators of the Ukrainian banking system, clarify its main problems, identify relevant factors of the stability of the Ukrainian banking system and the character of their influence on the dependent variable. Realization of the mentioned above tasks was ensured by regression analysis (OLS regression). Analysis of key indicators that characterize current situation in the Ukrainian banking system found out the existence of numerous endogenous and exogenous problems, which, in turn, cause worsening most of analyzed indicators during 2013-2015. Unfavorable situation in Ukrainian banking system determined the necessity of identification of relevant factors of banking system stability to avoid transmission of financial shocks. According to the results of regression analysis on the stability of banking sector positively influence such factors as increase of interest margin to gross income ratio, reserves to assets ratio, number of branches, ratio of non-performing loans to total loans. Meanwhile, negative impact on stability of banking system has an increase of liquid assets to short term liabilities ratio and cost to income ratio. Empirical results of the research found out that grate damage to the stability of banking system has some parameters of banking activity, that’s why the main purpose of the regulation by the National Bank of Ukraine should be strengthening of macroprudential supervision and intensification of adaptation of Basel II and Basel III requirements.