Purpose This study aims to examine how regulated investor-company dialogue on exchange-run platforms impacts insider trading profitability. It further investigates the conditions under which this disciplinary effect is strongest by analyzing the moderating roles of institutional ownership, analyst coverage and media attention. By exploring discussion topics and sentiment, this paper clarifies the dual function of these regulated platforms as both a transparency mechanism and a potential tool for market manipulation in an emerging market. Design/methodology/approach This study matches insider trades from Chinese A-share firms (2019–2023) with Q&A data from exchange-run interaction platforms. Interaction intensity is proxied by the log of question counts and word counts over a 360-day pre-trade window. Insider profitability is measured by 30-day abnormal returns from a Fama-French five-factor model. The main relationship is identified using fixed-effects regressions with two-way clustered standard errors. A battery of robustness checks, including alternative return windows, a three-factor model and latent dirichlet allocation topic modeling and sentiment analysis, confirms the results and explores underlying mechanisms. Findings Increased question volume and complexity on regulated platforms significantly reduce insider trading profits. This disciplinary effect is stronger in firms with lower institutional ownership and less analyst or media coverage, suggesting the platform acts as a substitute for traditional monitoring in opaque firms. Findings are robust to alternative specifications. Topic analysis reveals that discussions on strategy and projects are most effective at curbing insider gains. The evidence establishes these platforms as a credible external governance mechanism, although risks of strategic manipulation by insiders remain. Originality/value This paper provides novel empirical evidence linking China’s exchange-sponsored Q&A platforms to insider-trading outcomes. By pairing trading records with platform interaction data and applying NLP techniques, we move beyond traditional disclosure proxies to capture transparency in real time. The findings extend the literatures on insider trading, RegTech and corporate governance by quantifying the conditions under which this digital disclosure is most effective. For regulators, the evidence supports algorithmic surveillance of these platforms as a cost-effective tool to enhance market integrity, especially for firms in opaque information environments.

Purpose Liberal democracies often experience discrepancies between the envisaged principles of policy about the realities of practice, which leads to a decline in trust and legitimacy. The purpose of this paper is therefore to present a proposed ecosystem for the South African National Consumer Financial Education Policy to address the policy−practice gap better. Design/methodology/approach The study’s methodology is to develop an integrated conceptual framework informed by a literature review and related source documents. A qualitative descriptive design was applied to populate the theorized conceptual framework. Findings Ecosystems provide adaptive resources for value creation in recognizing the interdependence and iterative socioeconomic engagements among the key stakeholders. The holism of the system intends to counter the policy−practice gaps that include: insufficient integration around operational regulations and principle-led policy, challenges in multistakeholder coordination with duplication of efforts and persistent resource constraints. Practical implications This paper contributes to the emerging literature on public policy ecosystems and offers a replicable model for other emerging countries. Social implications The proposed model furthermore future-proofs consumer financial education (CFE) as the model anticipates emerging challenges in digital financial literacy and evolving stakeholder incentives, offering a basis for a resilient and adaptive structure for CFE governance in South Africa and potentially other emerging markets. Originality/value This paper makes a distinct theoretical and practical contribution by proposing and critically constructing a conceptual framework for a CFE ecosystem in South Africa – an original approach not previously theorized in this context. While financial literacy is globally acknowledged as a policy imperative, little scholarly work has offered a systems-level model that accounts for the structural, institutional and stakeholder-specific dynamics within a developing country context.

Purpose This study aims to examine the effect of digital finance on the nonlinear relationship between financial development and economic wealth in 54 African economies from 2004 to 2023. Design/methodology/approach This study uses the dynamic system generalized method of moments to analyze the interrelationship between financial development, digital finance and economic wealth. Findings The results confirm that initial financial development enhances economic wealth. However, beyond the thresholds of 0.41 and 1.21, additional financial development reduces economic wealth. Digital finance has a positive influence on both financial development and economic wealth. Additionally, an increase in the levels of digital finance systems amplifies the positive linear effect of financial development on economic wealth. Research limitations/implications While this focus provides valuable insights into the role of digital finance in African economic growth, the findings may not fully capture the complexities and dynamics present in other global markets. Practical implications Policymakers should implement regulatory measures to establish an optimal level of financial development that maximizes economic wealth. Furthermore, fostering digital financial technology within a well-developed financial sector is essential for sustained economic growth in Africa. Originality/value This paper contributes to the literature by offering actionable recommendations for policymakers, emphasizing the need to strengthen financial institutions and infrastructure to fully harness the benefits of digital finance. The findings can inform policy development aimed at fostering inclusive economic growth through digital financial systems.

Purpose This paper aims to analyze the structural features and regulatory challenges of US private equity, with a focus on informational asymmetries between general and limited partners. It examines how short-term, high-leverage strategies and limited transparency have shaped both industry practices and regulatory responses. Particular attention is given to recent efforts by the US Securities and Exchange Commission (SEC) to increase disclosure and accountability. Design/methodology/approach This paper integrates empirical findings, industry reports, case studies and legal rulings to examine informational asymmetries in private equity. It introduces a two-level framework distinguishing asymmetries at the fundraising and operational stages. It also evaluates recent SEC rulemaking, enforcement strategies and court challenges. Findings The short-term, profit-driven strategies of private equity concentrate market power and frequently disadvantage limited partners, employees and customers. Informational asymmetries allow general partners to exploit opaque governance structures, limiting oversight. While the SEC has sought to enhance transparency through disclosure rules, private equity firms have successfully challenged these regulations in court. Despite setbacks, the SEC continues to enforce accountability through whistleblower programs and existing laws. Originality/value This paper highlights the systemic risks associated with private equity and the regulatory challenges in addressing them. It advocates for balanced reforms that maintain private equity’s role in economic growth while ensuring transparency, stakeholder protection and financial stability.

Purpose This study aims to investigate the role of financial technology (Fintech) in mitigating the impact of the COVID-19 pandemic on the banking sector. We constructed a Fintech index as a proxy for digital transformation and assessed its effect on financial performance and resilience. The study also examines how ESG commitments influence the effectiveness of digitalization. Design/methodology/approach We conducted a text-mining analysis on the annual reports of publicly listed banks in Thailand from 2012 to 2023. Using AntConc software, we extracted Fintech-related keywords and applied principal component analysis (PCA) to create a Fintech index. We used fixed-effect regression models to examine the impact of Fintech adoption on banks’ profitability and shareholder value. To address endogeneity, we applied an instrumental variable regression. We also used a difference-in-differences approach to assess the role of Fintech in enhancing resilience during the COVID-19 period. Findings Banks with higher Fintech adoption demonstrated stronger profitability and firm value, particularly during the pandemic. The positive interaction between Fintech and COVID-19 confirms digitalization’s role in resilience. ESG commitments negatively moderated this relationship, suggesting that sustainability efforts may limit financial gains from digital investments. Originality/value To the best of the authors’ knowledge, this study is among the first to apply text mining and PCA to analyze the impact of Fintech on banking resilience in the Asia-Pacific region during the COVID-19 pandemic. It also examines ESG as a moderating factor, offering new insights into how digitalization and sustainability interact in banking.

PurposeThis study aims to examine the relationship between the structure of compliance control systems and their effectiveness in financial institutions, considering the moderating effects of organizational context.Design/methodology/approachUsing the contingency theory, a model was developed and tested using structural equation modeling on data collected from 271 compliance professionals in Moroccan financial institutions.FindingsThe structure of compliance control systems directly impacts their effectiveness. This relationship is moderated by organizational size, structure and perceived environmental uncertainty. Larger institutions and those with mechanistic structures show weaker relationships between system structure and effectiveness, while organic structures and higher perceived uncertainty strengthen this relationship.Research limitations/implicationsThe study provides a contingent framework for analyzing compliance control systems in financial institutions within their context.Practical implicationsFindings suggest that compliance managers should tailor control systems to their specific organizational context, considering factors such as size, organizational structure and environmental uncertainty.Originality/valueThis study extends the contingency theory to compliance control systems in financial institutions, an area previously underexplored in management control literature.

PurposeThis paper aims to propose a causal relationship between the imposition of international sanctions and the level of cryptocurrency adoption, drawing on a comprehensive data set of global cryptocurrency metrics.Design/methodology/approachThis study uses a data set that includes the global cryptocurrency adoption index, as compiled by Bhimani et al. (2022) and Chinalysis (2020), along with various socioeconomic factors such as democracy, education, the GINI index, GDP per capita, the Human Development Index, the Corruption Perception Index, regulatory quality, control of corruption, the Economic Freedom Index and the Network Readiness Index. In addition, this paper incorporates a global sanctions database developed by Felbermayr et al. (2020). To determine causal relationships, this study constructs an instrumental variable aimed at plausibly isolating the endogenous effects of sanctions on cryptocurrency adoption.FindingsUsing a robust empirical strategy that includes an instrumental variable approach, this research establishes a causal link between the number of sanctions and the level of cryptocurrency adoption. The findings suggest that sanctions can act as a significant motivator for countries to adopt cryptocurrencies, especially in regions with high levels of economic inequality and generalized trust, such as Africa. In addition, this study found that conflicts occurring between 1500 and 1599 could predict cryptocurrency adoption in Africa. The civil conflicts occurring between 1960 and 2017 also show a relationship with higher levels of cryptocurrency usage across the African continent.Originality/valueThe analysis further distinguishes the heterogeneity of these relationships across different nations, with a special emphasis on the unique context of African countries and the implications of ongoing civil conflicts.

PurposeThe purpose of this study is to examine the causality between the environmental, social and corporate governance (ESG) score, which is the component of banks’ performance obtained from ESG activities, and the capital costs, market values and bankruptcy risk of banks. For this purpose, 117 banks with fully accessible data from 29 developing countries were included.Design/methodology/approachIn the methodology part of the study, the panel causality test developed by Emirmahmutoglu and Köse was used based on the periods 2015–2022. First, the cross-section test and delta tests were performed. Then, Levin, Lin and Chu, Breitung, Im, Pesaran, Shin, Fisher ADF and Fisher-PP panel unit root tests and Emirmahmutoglu and Köse panel causality test were performed.FindingsAs a result of the analyses, bidirectional causality was observed between ESG and weighted average cost of capital of private banks. Similarly, bidirectional causality from ESG to company market capitalization and from ESG to the risk indicator ZSCORE was determined in both private and state banks. The results reveal that ESG components should also be considered in relation to financial performance. In this respect, it is expected to guide regulatory and supervisory institutions in the establishment of regulations and guidelines regarding the determination and promotion of ESG practices that will increase capital efficiency and reduce corporate financing costs.Originality/valueFocusing on ESG activities has ceased to be an arbitrary situation for banks. In today’s competitive conditions, financial institutions are turning to strategies that differentiate them from their competitors, such as ESG, as they have difficulty maintaining customer loyalty. Based on the lack of focus on structure differentiation before, the main research question of this study is whether the private and public structure will cause a difference in the effect of ESG activities on bank performance and cost.

PurposeThis study aims to investigate the potential impact of total value locked (TVL) fluctuation in decentralized finance (DeFi) on banks deposits for a sample of 21 countries, including the Eurozone members and the USA, over the period from July 2018 to October 2023.Design/methodology/approachPanel vector autoregression model has been used to analyze the existence of a relationship between TVL and banks deposits. In the second stage, the impulse response function has been exercised to find out the response of banks deposits among each nation.FindingsEmpirical findings exhibit that while increases in TVL have a significant negative long-run association with banks deposits in a global perspective, the effect is weak, suggesting modest disruption to traditional banking services to date. However, the impact varies between short and long-run effects at the country level. Six nations exhibit substantial negative long-run effects, whereas eight countries experience only temporary decreases in deposits following TVL upticks that rebound over time, reflecting the lack of trust in DeFi services and the engagement in speculative instead of long-term activities.Research limitations/implicationsThis study provides general insights into DeFi’s impact on banking performance and deposit stability. However, it likely has limitations in scope and time frame. Future research could explore long-term effects, specific DeFi protocols and cross-country comparisons.Practical implicationsThis study’s findings provide key insights for policymakers, central banks and bank managers on the impact of DeFi growth on banking performance and deposit stability. The results highlight the need for adaptive regulatory frameworks and investment strategies to address the emerging DeFi ecosystem. At the country level, the observed variations suggest the importance of tailored policy approaches. These insights are crucial for developing effective regulations and strategies in the evolving financial landscape.Social implicationsDeFi growth may alter financial access and inclusion, raising concerns about consumer protection and literacy. It could shift power dynamics in finance, potentially reducing traditional intermediaries’ influence while creating new forms of inequality. Balancing innovation with social responsibility is crucial for equitable distribution of benefits.Originality/valueAlthough numerous studies have been conducted on the effects of cryptocurrencies on bank deposits and stock performance across various regions, they have largely overlooked the DeFi and its role in influencing deposits as a new competitor to traditional banks services. This study aims to address this gap by examining the influence of TVL developments on banks deposits, and to what extent it can be served as an alternative to banking services.

PurposeThis study aims to investigate the factors influencing liquidity creation in banks, particularly focusing on the role of bank governance. Using a unique panel data set, it compares Islamic and conventional banks to discern governance’s impact on liquidity creation, offering insights for policymakers and bank managers.Design/methodology/approachQuantitative analysis is used on a panel data set to assess liquidity creation determinants in banks. A governance index is constructed, analyzing metrics such as risk management, audit committee effectiveness and Shariah board presence. Regression models identify significant relationships between governance factors and liquidity creation.FindingsThis study reveals a positive relationship between governance index and liquidity creation, especially in banks with better performance, higher credit risk, smaller size and lower equity, particularly in low-inflation environments. Specific governance practices significantly impact liquidity creation, alongside a positive relationship with Tier1 ratio, supporting the risk absorption hypothesis.Originality/valueThis research offers empirical evidence on the relationship between bank governance and liquidity creation, highlighting its significance for both Islamic and conventional banks. It provides valuable insights for policymakers and bank managers aiming to enhance banking sector stability and efficiency.