The role of rules-based compliance systems in the new EU regulatory landscape: perspectives of institutional change and agency

The financial crisis of 2007-2009 and the subsequent reaction of the G20 have created a new global regulatory landscape. Within the EU, change of regulatory institutions is ongoing. The research objective of this study is to understand how institutional changes to the EU regulatory landscape may affect corresponding institutionalized operational practices within financial organizations and to understand the role of agency within this process. Our motivation is to provide insight into these changes from an operational management perspective, as well as to test Thelen and Mahoney?s (2010) modes of institutional change. Consequently, the study researched implementations of an Investment Management System with a rules-based compliance module within financial organizations. The research consulted compliance and risk managers, as well as systems experts. The study suggests that prescriptive regulations are likely to create isomorphic configurations of rules-based compliance systems, which consequently will enable the institutionalization of associated compliance practices. The study reveals the ability of some agents within financial organizations to control the impact of regulatory institutions, not directly, but through the systems and processes they adopt to meet requirements. Furthermore, the research highlights the boundaries and relationships between each mode of change as future avenues of research.

The role of rules-based compliance systems in the new EU regulatory landscape: perspectives of institutional change

Purpose The research objective of this study is to understand how institutional changes to the EU regulatory landscape may affect corresponding institutionalized operational practices within financial organizations. Design/methodology/approach The study adopts an Investment Management System as its case and investigates different implementations of this system within eight financial organizations, predominantly focused on investment banking and asset management activities within capital markets. At the systems vendor site, senior systems consultants and client relationship managers were interviewed. Within the financial organizations, compliance, risk and systems experts were interviewed. Findings The study empirically tests modes of institutional change. Displacement and Layering were found to be the most prevalent modes. However, the study highlights how the outcomes of Displacement and Drift may be similar in effect as both modes may cause compliance gaps. The research highlights how changes in regulations may create gaps in systems and processes which, in the short term, need to be plugged by manual processes. Practical implications Vendors abilities to manage institutional change caused by Drift, Displacement, Layering and Conversion and their ability to efficiently and quickly translate institutional variables into structured systems has the power to ease the pain and cost of compliance as well as reducing the risk of breeches by reducing the need for interim manual systems. Originality/value The study makes a contribution by applying recent theoretical concepts of institutional change to the topic of regulatory change uses this analysis to provide insight into the effects of this new environment

A structuration theory perspective on the institutional change in Higher Education sector

Budgeting system has been traditionally viewed as a control mechanism rather than a communication tool to facilitate the institutionalisation of organisational change. A good budgeting system not only reflects the organisational reality but also socially constructs the reality. This paper uses the structuration perspective to understand budget-related behaviour in a UK research-intensive university and especially, study the role of budgeting system in achieving organisational sustainability. Giddens’ structuration theory offers a valuable framework for the study of the duality of structure and emphasises on the structural properties of social systems. Based on the semi-structured interviews with top management and budget holders, it is concluded that in this specific context, budgeting system may place a significant role in establishing and legitimising institutional change.

A new approach to superstring field theory

I review the construction of an action for open superstring field theory which does not suffer from the contact term problems of other approaches. I also discuss a possible generalization of this action for closed superstring field theory.

New phenomenon of nonlinear Regge trajectory and quantum dual string theory

The relation between the spin and the mass of an infinite number of particles in a q-deformed dual string theory is studied. For the deformation parameter q a root of unity, in addition to the relation of such values of q with the rational conformal field theory, the Fock space of each oscillator mode in the Fubini-Veneziano operator formulation becomes truncated. Thus, based on general physical grounds, the resulting spin-(mass)2 relation is expected to be below the usual linear trajectory. For such specific values of q, we find that the linear Regge trajectory turns into a square-root trajectory as the mass increases.

Theory and practice of industrial policy: evidence from the Latin American experience

Includes bibliography

Old and new trade policies

Includes bibliography

Institutional elements of a new diplomacy for development: notes for a book of memoirs

Examina las caracteristicas principales de la nueva diplomacia para el desarrollo, originada a partir de la primera reunion de la UNCTAD, y su evolucion hasta la actual situacion de estancamiento derivada de la existencia de un fuerte conflicto de interes entre los paises desarrollados y en desarrollo, agravada por un conjunto de problemas institucionales. Subraya la necesidad de romper el presente estancamiento en el dialogo Norte-Sur y sugiere algunas medidas encaminadas a lograrlo.

A new aspect of sign and its implications for the Theory of Communication

Este artigo propõe que a semiótica peirceana pode oferecer bases tanto lógicas quanto epistemológicas para a busca de uma teoria geral da comunicação. No entanto, o desenvolvimento de uma teoria semiótica da comunicação depende, em primeiro lugar, de uma melhor compreensão dos aspectos formais do signo, tarefa atribuída por Peirce à gramática, o primeiro ramo de sua semiótica. Nós apresentamos uma análise das relações do signo, revelando um aspecto não trabalhado por Peirce, ampliando seu número para onze. Este novo aspecto é a relação triádica entre signo, objeto dinâmico e interpretante dinâmico (S-OD-ID). Nós defendemos que esta relação é essencial para a compreensão da comunicação como semiose, por dar conta da repetição ou redundância do signo comunicativo, quando se cria ou transmite informação. O artigo pretende dar um passo a mais na direção de uma teoria da comunicação verdadeiramente universal, através do vínculo entre a semiótica peirceana e a moderna filosofia da linguagem.

Local home bias: Theory and new empirical evidence from Italy

This thesis examines the literature on local home bias, i.e. investor preference towards geographically nearby stocks, and investigates the role of firm’s visibility, profitability, and opacity in explaining such behavior. While firm’s visibility is expected to proxy for the behavioral root originating such a preference, firm’s profitability and opacity are expected to capture the informational one. I find that less visible, and more profitable and opaque firms, conditionally to the demand, benefit from being headquartered in regions characterized by a scarcity of listed firms (local supply of stocks). Specifically, research estimates suggest that firms headquartered in regions with a poor supply of stocks would be worth i) 11 percent more if non-visible, non-profitable and non-opaque; ii) 16 percent more if profitable; and iii) 28 percent more if both profitable and opaque. Overall, as these features are able to explain most, albeit not all, of the local home bias effect, I reasonably argue and then assess that most of the preference for local is determined by a successful attempt to exploit local information advantage (60 percent), while the rest is determined by a mere (irrational) feeling of familiarity with the local firm (40 percent). Several and significant methodological, theoretical, and practical implications come out.