NR5A2 binds to the sequence element 5'-AACGACCGACCTTGAG-3' of the enhancer II of hepatitis B virus genes, a critical cis-element of their expression and regulation. It may be responsable for the liver-specific activity of enhancer II, probably in combination with other hepatocyte transcription factors. It is a key regulator of cholesterol 7-alpha-hydroxylase gene (CYP7A) expression in liver. It may also contribute to the regulation of pancreas-specific genes and play important roles in embryonic development.