Issue #1 (Volume 23 2026)

Type of the article: Research Article

Abstract
This study investigates how investment funds influence the stock price volatility of the firms in which they invest. Using a sample of 196 companies listed on the Vietnamese stock market during the period 2016–2022, the analysis captures the presence and influence of investment funds through their key proxies: the ownership ratio that each fund holds in a particular firm, the fund’s size, and the type of investment fund. These proxies and other vital control variables of stock price volatility are investigated using pooled OLS, fixed effects model, random effects model, and generalized linear squares (GLS) models, along with essential tests for model validity. The empirical results reveal that the fund ownership ratio mitigates stock price volatility, whereas fund size potentially exacerbates volatility. The type of investment fund does not significantly impact the stock price. This study offers important theoretical and practical insights for firm managers and investors, providing recommendations to optimize fund management strategies and contributing to the stability and sustainable development of the Vietnamese stock market.

Acknowledgment
The authors gratefully acknowledge the financial support from the Banking Academy of Vietnam.

Type of the article: Research Article

Abstract
Earnings management remains a persistent concern in African markets, particularly in environments where ownership structures are concentrated and regulatory frameworks are still evolving. This study examines how different forms of ownership shape earnings management practices in Morocco, using a panel of 34 non-financial firms listed on the Casablanca Stock Exchange over the period 2018–2022. Earnings management is measured through discretionary accruals estimated using the performance-adjusted Kothari model, and the empirical analysis relies on a two-step GMM estimator. The findings reveal a heterogeneous impact of ownership structure on earnings management. Institutional ownership and foreign ownership are both negatively associated with earnings management, indicating that firms with stronger institutional or international participation tend to exhibit more discipline in financial reporting. In contrast, family ownership and managerial ownership are positively associated with earnings management, suggesting a greater propensity for discretionary accounting practices in firms where control or decision-making power is concentrated among family members or managers. State ownership and ownership concentration do not exhibit significant effects, pointing to a limited role of public participation or dominant shareholders in constraining reporting discretion. These findings highlight that ownership composition is a key determinant of reporting behavior in the Moroccan context, with clear differences between monitoring shareholders and controlling shareholders.

Acknowledgments
This research was supported by the National Center for Scientific and Technical Research (CNRST) as part of the “PhD-Associate Fellowship – PASS” program, awarded to Aymane Chemmaa.

Type of the article: Research Article

Abstract
This study investigates the relevance of corporate governance mechanisms and ownership structure in shaping real earnings management behavior in an emerging market context. The objective of this investigation is to evaluate whether board characteristics and ownership types influence firms’ engagement in real earnings management. A balanced panel dataset comprising 434 non-financial firms listed in Vietnam over the period 2020–2024, totaling 2,170 firm-year observations, is utilized. The empirical analysis employs ordinary least squares, fixed-effects, random-effects, and feasible generalized least squares models to address heteroskedasticity and serial correlation, thereby ensuring robust estimates of the relationships. The results reveal systematic and statistically significant associations between governance attributes and real earnings management. Notably, larger boards are associated with lower levels of real earnings management, suggesting that expanded board structures enhance monitoring capacity and curb opportunistic managerial behavior. Additionally, institutional ownership and state ownership exhibit an inverse relationship with real earnings management, implying that these ownership structures bolster external oversight and discipline managerial discretion. Conversely, increased board independence, financial expertise among board members, and managerial ownership are associated with greater engagement in real earnings management, suggesting that formal governance frameworks do not invariably translate into effective substantive monitoring in emerging markets. Overall, these findings support the view that governance and ownership mechanisms operate asymmetrically in emerging markets, underscoring that strengthening the effectiveness of monitoring structures – beyond their mere formal adoption – is vital to improving financial reporting quality and promoting the sustainability of corporate performance.

Acknowledgments
This research is partly funded by University of Finance – Marketing.

Type of the article: Research Article

Abstract
The private sector remains the engine room for inclusive economic development, and its interaction with Foreign Capital Inflows (FCIs) is crucial for growth in emerging markets like Nigeria. This study examined the impact of FCIs (Foreign Direct Investment, Foreign Portfolio Investment, Foreign Debt, Foreign Aid & Foreign Remittances) on Private Sector Credit in Nigeria. To achieve this objective, time series data spanning a 26-year period (1998–2023) were harvested and used. The Augmented Dickey-Fuller test was used to ascertain the unit root, while the hierarchical regression technique provided the model estimates. From the results, foreign remittances emerged as the only significant contributor to private sector credit growth (β = 0.993, p < 0.05). This underscores the critical role of diaspora remittances in supporting financial intermediation and private sector development. The study concluded that foreign remittance is a major driver of private sector credit expansion in Nigeria. It is recommended that policy efforts should prioritize facilitating remittance inflows through a supportive regulatory framework. Emphasis should also be placed on leveraging remittances as a stable and development-oriented source of capital.

Type of the article: Research Article

Abstract
The rapid expansion of digital financial services has reshaped how young adults manage money, presenting both new opportunities and behavioral risks. Although financial literacy is widely recognized as a key driver of financial well-being, empirical evidence regarding its direct impact remains mixed. This study examines the indirect pathways through which financial literacy influences financial well-being, focusing on the mediating roles of digital financial literacy, financial capability, financial autonomy, and impulsivity.
A quantitative online survey was administered to 984 Indonesian respondents from Generation Z, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that financial literacy significantly enhances digital financial literacy, which subsequently strengthens financial capability and decision-making processes. Among all mediators, financial capability consistently emerges as the most influential pathway, whereas impulsivity does not demonstrate a meaningful mediating effect. The structural model accounts for 57.3% of the variance in financial well-being, highlighting the central role of digital competence and capability development in shaping positive financial outcomes.
The study contributes to the literature by integrating cognitive, behavioral, and psychological factors into a single explanatory framework of financial well-being among digitally active young adults. From a practical perspective, the findings underscore the need for financial education initiatives that combine foundational literacy with digital financial skills and capability-building elements. Policymakers and financial service providers in emerging economies are encouraged to strengthen accessible digital tools and targeted interventions for younger populations.

Acknowledgments
The authors acknowledge the financial support from the Institute for Research and Community Service (LPPM), Universitas Andalas, through the Flagship Research Scheme (PUJK), Batch I, Contract No. 368/UN16.19/PT.01.03/PJUK/2024. Appreciation is also extended to the Faculty of Economics and Business, Universitas Andalas, for its institutional support and facilities that contributed to the completion of this research.

Type of the article: Research Article

Abstract
Financial institutions can play a critical role in promoting energy efficiency by facilitating investment in energy-saving technologies and infrastructure, as per the Sustainable Development Goals (SDGs). This study aims to investigate the impact of Financial Institutions’ Depth (FID), Access (FIA), and Efficiency (FIE) on Energy Intensity (EI) in the GCC countries from 2000 to 2021 within the Environmental Kuznets Curve (EKC) framework. To add novelty to the analysis, regulatory quality’s moderating role is also tested in the relationship between FID, FIA, FIE, and EI. Given the financial, economic, and institutional interconnectedness of the GCC region, second-generation panel econometric techniques, such as Cross-sectional Dependence (CD) unit root tests, cointegration, and Autoregressive Distributed Lag (ARDL), are employed. The findings confirm the long-run validity of the EKC in all models. In the short term, the EKC is only supported by an FID model. FIA and FID do not directly influence EI in either the short or long run. However, regulatory quality significantly moderated these relationships with long-run coefficients of –0.096 (FID) and –0.063 (FIA). FIE is found to reduce EI with the long-run coefficient of –0.109, and this effect is also moderated by better regulatory quality with the long-run coefficient of –0.087. However, FIE and its interaction with regulatory quality do not significantly impact EI in the short run. The results conclude that regulatory quality directly and consistently reduces EI in all models. These results emphasize the need to improve the financial institutions and regulatory governance to achieve energy efficiency in the GCC region.

Type of the article: Research Article

Abstract
Green investment is crucial in supporting the transition to a sustainable economy, yet the internal factors driving it remain poorly understood. This study examines the influence of corporate governance (CGI), sustainability bonds, and labor costs on green investment in manufacturing firms in Indonesia. Using 779 observations (firm-years), the analysis employed a panel regression model and a moderation test for capital expenditure (CapEx). The results show that CGI significantly positively affects green investment, highlighting the importance of strong governance in supporting sustainability practices. The implementation of effective corporate governance can replace tunnelling practices and direct corporate funds toward environmentally friendly investments. Sustainability bonds also have a significant positive impact, reflecting the development of green financial instruments in Indonesia. The existence of sustainable bonds provides investors with confidence that their funds are channeled toward sustainable goals, while also helping companies reduce funding costs and accelerate the growth of green investments. Labor costs exhibit a significant positive effect, indicating that firms with higher labor costs are more likely to adopt green technology-based efficiency measures. The moderation test found that CapEx strengthens the relationship between CGI and green investment, indicating that capital expenditure can be a strategic channel for realizing governance commitments to sustainable investment.

Acknowledgments
The greatest appreciation is conveyed to the Directorate General of Higher Education, Research, and Technology, Ministry of Education, Culture, Research, and Technology, which has provided funding support for this research through a principal research grant with contract number 127/C3/DT.04.00/PL/2025. Thanks are also expressed to the Higher Education Service Institute (LLDIKTI) Region 6 and the Institute for Research and Community Service (LPPM) Unisnu Jepara, Indonesia, for their continuous support and facilitation during the research process.

Type of the article: Research Article

Abstract
Financial fraud in Arab Gulf family firms threatens key stakeholders, yet many still rely on informal, trust-based controls. The purpose of this study is to explain why some family firms in this region adopt machine learning-based financial fraud detection systems, while others remain locked into legacy mechanisms of control. Results from a cross-sectional survey of 416 owners, executives, finance, and compliance officers from family businesses in Saudi Arabia, the United Arab Emirates, and Qatar were analyzed using variance-based structural equation modeling and multi-group analysis. The results show that perceived effectiveness (β = 0.08, p < 0.01) and regulatory support (β = 0.07, p < 0.05) are the strongest positive drivers of the likelihood of adopting machine learning-based fraud detection. Awareness of machine learning, ethical concern, and existing fraud detection practices also have significant positive effects (β ≈ 0.03-0.05, p < 0.05), while barriers to adoption exert a significant negative influence (β = −0.05, p < 0.05). The structural model explains 52.7% of the variance in the likelihood of adoption and 46.8% of the variance in perceived effectiveness. Indirect effects indicate that awareness and regulation promote adoption through perceived effectiveness, whereas barriers reduce adoption through heightened ethical concern. The findings suggest that stronger governance, clearer and incentive-aligned regulation, and explainable, well-governed machine learning implementations are essential to shift family businesses in the Arab Gulf region from trust-based to data-driven fraud detection.

Type of the article: Research Article

Abstract
Small and medium-sized enterprises (SMEs) are crucial to Albania’s economic growth and employment generation; however, their performance is hindered by weaknesses in financial management. The purpose of this study is to examine how specific financial practices determine firm-level outcomes in terms of revenue and employment. A quantitative methodology was applied, using survey data from 86 SMEs processed through correlation analysis, ANOVA, and linear regression models. The results show that business financing exerts the strongest positive effect on employment (B = 10.098), followed by accounting information systems (B = 7.3), while cash management has a negative impact (B = −5.408). Regarding revenue, business financing again demonstrates a significant positive influence (B = 1.306), with client management also contributing positively (B = 0.284). A univariate regression confirms a strong positive relationship between revenue and employment, with revenue influencing employment at a coefficient of 7.178. These findings highlight that structured financing and accounting systems are critical drivers of SME performance, while efficiency gains in cash management may reduce workforce size. The study concludes that strengthening financial governance is essential for enhancing the sustainability and competitiveness of Albanian SMEs.

Type of the article: Research Article

Abstract
The COVID-19 pandemic profoundly reshaped global financial markets, amplifying volatility and redefining risk perception across innovation-driven sectors. This study assesses how the COVID-19 pandemic altered volatility dynamics in the technology sector by quantifying wave-by-wave risk-return behavior using descriptive statistics, including standard deviation, coefficient of variation, and kurtosis. The analysis is based on daily stock prices and returns for the technology sector from March 8, 2019, to December 12, 2022, covering the pre-pandemic period, five pandemic waves, and a post-pandemic stabilization phase. The results reveal that market volatility surged during the first pandemic wave as digital adoption accelerated and investors sought technological assets as temporary safe havens. Subsequent waves showed alternating phases of speculative trading and market corrections, reflecting evolving investor sentiment and macroeconomic uncertainty. The coefficient of variation increased sharply during the height of the crisis, demonstrating that risk consistently exceeded returns, while kurtosis analysis indicated a higher frequency of extreme price movements compared with pre-pandemic conditions. Although volatility gradually declined during the post-pandemic period, it remained notably above pre-2020 levels, signaling a persistent re-pricing of sectoral risk. These findings confirm that the technology sector, while resilient, experienced structural changes in its volatility regime and investor behavior, with lasting implications for market stability and portfolio management in the digital economy.

Acknowledgment
This article is one of the partial outputs of the currently implemented research grant VEGA no. 1/0110/24 and research grant IGMP no. I-25-103-00.

Type of the article: Research Article

Abstract
This study investigates how investment influences firm performance, taking into account the moderating role of agency costs in an emerging market context. Using a balanced panel of 269 non-financial firms listed on the Ho Chi Minh City Stock Exchange from 2013 to 2022, the study applies the System Generalized Method of Moments (SGMM) to address potential endogeneity. The results reveal a nonlinear, inverted U-shaped relationship between investment and operational efficiency, indicating the existence of an optimal investment threshold. Beyond this level, further investment reduces performance due to overinvestment behavior. Moreover, agency costs are found to negatively affect both performance and the efficiency of investment decisions. Firms facing higher agency problems experience weaker performance improvements from increased investment, confirming the moderating effect of agency costs. The findings provide new evidence from a transitional market characterized by information asymmetry and weak governance structures, contributing to the literature on investment efficiency and agency theory. Policy implications highlight the need for governance transparency and effective monitoring mechanisms to mitigate agency-induced overinvestment.

Type of the article: Research Article

Abstract
The increasing behavioral volatility and informational complexity of emerging stock markets such as Vietnam create a critical need for more advanced analytical approaches to identify reliable momentum signals. This study aims to develop and validate an integrated momentum-based trading strategy specifically designed for the Vietnamese stock market. Using price and trading volume data for all stocks listed on the VNINDEX from January 2015 to February 2025, the methodology combines permutation-based entropy measures to capture short-term structural patterns with a formation–holding period framework to analyze medium- and long-term dynamics through Continuing Overreaction. The empirical results reveal a pronounced structural divergence in momentum behavior across investment horizons. Short-term momentum is persistent and strongly associated with low-complexity price and volume patterns, indicating coordinated behavioral trading and temporary predictability. In contrast, medium- and long-term Continuing Overreaction effects exhibit consistently negative values across various formation and holding horizons, suggesting that excess trading intensity leads to systematic mean reversion rather than sustained momentum. Backtesting over the period from January 2023 to February 2025 demonstrates that the proposed integrated strategy substantially outperforms a passive VNINDEX buy-and-hold benchmark, achieving a Sharpe ratio of 3.96 compared to 0.64 for the market. The superior performance remains robust across alternative portfolio construction settings and reflects improved downside risk control rather than increased return volatility. These findings indicate that integrating entropy-based complexity measures with volume-driven behavioral indicators provides a more effective framework for enhancing risk-adjusted returns in emerging stock markets.

Type of the article: Research Article

Abstract
The increasing demand for environmental and social impact information has made the sustainability report a crucial instrument for building stakeholder trust in corporate conduct in this era. This study aims to provide empirical findings on the impact of corporate governance mechanisms, such as independent commissioners, institutional ownership, and gender diversity, on the disclosure of sustainability reports with external assurance as a moderating variable. The study is quantitative research that employs Hayes’s moderation model bootstrapping technique. It covers 867 observations of non-financial companies listed on the Indonesia Stock Exchange over the period 2018 to 2023. Results show that independent commissioners (p < 0.01) and gender diversity (p < 0.05) positively and significantly affect sustainability report disclosure. Conversely, institutional ownership had no significant impact (p > 0.05). For the moderating effect, the interaction terms of external assurance and independent commissioners, and external assurance and institutional ownership are negatively significant (p < 0.05), indicating that external assurance weakens the relations in these cases. The interaction between external assurance and gender diversity was negative but insignificant for sustainability reporting (p > 0.05). This study concludes by examining whether the role of third-party assurance or internal governance mechanisms can positively affect the quality of reporting. The results suggest that third-party assurance, when used to enhance internal governance mechanisms, does not optimally improve the quality of reporting. The latter result reveals that third-party guarantees for non-financial firms have not amplified the effects of corporate governance mechanisms on the quality of sustainability reports.

Acknowledgments
We want to acknowledge the Ministry of Education and Technology for its support of this study with contract numbers 102/C3/DT.05.00/PL/2025 and 19483/UN19.5.1.3/AL.04/2025. We also thank the LPPM Riau University for its research cooperation, as well as the entire team that supports this research.

Type of the article: Research Article

Herding behavior often emerges in uncertain market conditions, when investors, confronted with limited or ambiguous information, tend to imitate their peers’ actions instead of relying on their own analytical assessments. This follow-on herd mentality phenomenon engenders analogous trading behavior among market participants, potentially undermining market efficiency. During times of increased volatility, such behavioral patterns become more noticeable, which has a substantial impact on asset values and skews the efficiency of financial markets. This study explores herding in the UAE stock markets during the COVID-19 outbreak, focusing on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX). Using daily data from January 1, 2019 through December 31, 2021, the Cross-Sectional Absolute Deviation (CSAD) model is implemented in static and dynamic forms to explore nonlinear and evolving aspects of investor behavior. The analysis indicates that during the initial months of the pandemic, clear evidence of herding emerged in the Dubai Financial Market (γ₃ = –3.087; p < 0.05), whereas the Abu Dhabi Exchange did not display statistically meaningful signs of such behavior. This contrast highlights how herding behaviors are not uniform across markets; they are shaped by factors such as institutional structures, liquidity levels, and the overall composition of traders. The results offer valuable implications for regulators, policymakers, and large investors, providing insights into how behavioral patterns can affect market resilience in emerging markets. Moreover, the study’s findings highlight the importance of timely disclosure and targeted investor awareness initiatives in reducing irrational reactions during periods of distress or crisis.

Acknowledgment
We are grateful to our co-authors for their invaluable contributions and collaboration in this research. A special thanks to the young independent researchers who are also the co-authors for their dedication and efforts in data collection and analysis, which have significantly enriched this study. We also appreciate the support provided by our institutions and the insightful feedback from our peers and reviewers.

Type of the article: Research Article

Abstract
Board diversity plays a significant role in determining a corporate cash hoarding policy as it influences investment decisions and financial flexibility. This study investigates how investor protection laws moderate the relationship between board diversity and corporate cash hoarding in Europe. Using a sample of 484 listed firms from European capital markets during the period 2015–2023, the analysis captures the influence of board gender diversity on cash reserves and how investor protection levels (high/low) moderate such a relationship. These variables and vital control variables of cash holdings are examined using a panel fixed-effects model and generalized methods of moment (GMM), along with diagnostic tests of model validity. The empirical results reveal that the presence of female directors on the board positively affects corporate cash hoarding, and thus, this effect is more pronounced in countries with high and low investor protection. Additionally, the presence of female executives on the board tends to exhibit more cash reserves and liquidity buffers. The results also provide ample evidence that the high and low levels of investor protection strengthen the positive effect of gender diversity on cash hoarding. This study offers significant theoretical and practical implications for regulators, policymakers, and investors, providing suggestions on the use of investment decisions and contributing to the stability of liquidity management in European capital markets.

Type of the article: Research Article

Abstract
Firms worldwide are embracing ESG principles and strengthening their ESG performance to foster sustainable development. This study uses five years of data from China to examine the relationship between ESG performance and corporate financial performance (CFP), measured by ROE, and tests the moderating effects of analyst and media attention using both ordinary least squares (OLS) and the fixed-effects model (HD-FE). Regression analyses demonstrate that: (1) the ESG performance has a significantly positive effect on ROE (coefficient = 0.026, p < 0.01), and after lagged by one and two periods, the effect is sustained (coefficient = 0.019/0.018, p < 0.01). (2) Analyst attention negatively modulates the relationship between ESG and ROE (coefficient = –0.011, p < 0.01), and the relationships for CSR (coefficient = –0.002, p < 0.01) and CG (coefficient = –0.011/–0.012, p < 0.01), but can mitigate the negative effect of environmental protection (ENV) on ROE (coefficient = 0.002, p < 0.01). (3) Media attention shows no consistent moderating effect on ESG-ROE relationship (coefficient = –0.001, p > 0.10; coefficient = –0.001, p < 0.05), but after classifying by sentiment, positive and neutral media coverage significantly weakens the positive impact of ESG on ROE (coefficient = –0.004/–0.005, p < 0.01; coefficient = –0.003/–0.004, p < 0.05/0.01), while negative coverage strengthens it (coefficient = 0.003/0.002, p < 0.05/0.10). Therefore, to meet external regulatory or public expectations, firms should strive to disclose more detailed and reliable ESG information, while investors and other stakeholders should critically evaluate the information presented.

Type of the article: Research Article

Abstract
Sustainable innovation has become an important driver of corporate value creation in emerging economies like India, where firms increasingly align their operations with Environmental, Social, and Governance (ESG) practices and Sustainable Development Goal 9 (SDG-9). Despite this rising importance, the financial impact of ESG and SDG-9 innovations on firm performance remains underexplored in the Indian context. This study aims to empirically examine the impact of ESG and SDG-9 innovations on firm value, profitability, and shareholder returns among the top 100 listed Indian companies during the period 2019–2023. Using panel data drawn from the Bloomberg and Refinitiv databases, the study applies multiple regression models and random-effects estimations to evaluate the relationships between innovation indicators (ESG and SDG-9 scores) and financial metrics such as Tobin’s Q, Return on Assets (ROA), and Return on Equity (ROE). The findings reveal that ESG innovation scores do not have a statistically significant effect on firm value and profitability. In contrast, SDG-9 innovation exhibits a positive and significant relationship with both ROA and ROE, indicating that companies integrating infrastructure, industrialization, and innovation goals achieve superior financial performance. On average, firms reporting SDG-9 innovations show a 4.27-point higher ROE and 0.51-point improvement in ROA than non-reporting firms. These results highlight that SDG-9 aligned innovation contributes directly to financial value creation, whereas ESG innovation yields more intangible or long-term benefits, offering critical insights for managers, investors, and policymakers promoting sustainable business growth in India.

Type of the article: Research Article

Abstract
Growing regulatory and investor scrutiny of sustainability has intensified the need to understand whether green finance and environmental, social, and governance (ESG) practices translate into measurable corporate performance gains in emerging markets. This study examines how green finance and ESG practices influence multidimensional corporate performance among firms listed on the UAE stock market. Data were collected via a structured survey of finance and sustainability managers in companies listed on the Abu Dhabi Securities Exchange and the Dubai Financial Market; 167 valid responses (87.4% response rate) were analyzed using structural equation modeling. The survey was administered in the UAE in May 2025. Results show positive effects of green finance on efficiency (β = 0.341, p < 0.01), effectiveness (β = 0.206, p < 0.01), sustainability (β = 0.157, p = 0.041), and customer satisfaction (β = 0.248, p < 0.01). ESG practices also improve efficiency (β = 0.288, p < 0.01), effectiveness (β = 0.179, p = 0.032), sustainability (β = 0.194, p < 0.01), and customer satisfaction (β = 0.142, p = 0.028). Joint modeling indicates complementary effects, with the strongest combined impacts on sustainability (β = 0.376, p < 0.01) and customer satisfaction (β = 0.408, p < 0.01); model fit is strong (GFI = 0.91; CFI = 0.96; RMSEA = 0.014). Overall, integrating green financing with robust ESG practices enhances corporate outcomes in the UAE, providing practical guidance for managers, investors, and policymakers.

Acknowledgment
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at University of Bisha for supporting this work through the Fast-Track Research Support Program.

Type of the article: Research Article

Abstract
This study analyzes the causal relationships between economic growth, inflation, exports, and domestic credit to the private sector in Turkey using annual data covering the period from 1990 to 2024, obtained from the World Bank and the Turkish Statistical Institute. The empirical strategy is based on a Vector Autoregressive (VAR) modeling framework combined with the Toda–Yamamoto Granger causality approach, with the long-run interactions among the variables further examined through Johansen cointegration analysis. This integrated methodology allows for a comprehensive assessment of both short-run dynamics and long-term equilibrium relationships in the Turkish macro-financial system. The empirical findings from the Toda–Yamamoto causality tests reveal statistically significant causal effects running from exports of goods and services, economic growth, and inflation to domestic credit to the private sector. Specifically, exports (EXGS), GDP growth (GDPG), and inflation (INF) each exert a meaningful influence on domestic private sector credit (DOCR), indicating that historical movements in these macroeconomic variables possess substantial explanatory and predictive power for credit dynamics. These results underscore the importance of real economic activity, external trade performance, and price stability in shaping the evolution of financial intermediation in Turkey. From a policy perspective, the results imply that maintaining export competitiveness, promoting stable and inclusive economic growth, and ensuring low and predictable inflation are essential for improving private sector credit access, reinforcing financial sector performance, and fostering sustainable economic development and macroeconomic stability in Turkey.

Type of the article: Research Article

Abstract
Intangible assets play a significant role in the New Economy period we currently live in, yet their capitalization remains challenging due to high failure rates in innovation. The purpose of this study is to investigate the circumstances under which businesses have the potential to raise the future value of using their intangible assets. This study used publicly listed firms on the Indonesia Stock Exchange (IDX) from 2019 to 2024. The final sample comprises 1,974 firm-years that satisfy the selection criteria. A multiple regression analysis was carried out for the assessments. The findings show that the sole possession of intangible assets is insufficient to raise the value of the companies and explicitly shows a negative effect (coefficient = –0.1443, t-value = –2.406). However, the interaction tests reveal that to boost future excess returns, businesses possessing intangible assets are required to demonstrate earnings growth (coefficient = 0.0142, t-value = 2.388) and a strong price-to-book ratio (coefficient = 0.0627, t-value = 7.441). Furthermore, a sector-specific analysis reveals that these results diverge for the technology and healthcare sectors, where intangible assets fail to explain future excess returns (F-statistics = 3.912 and 8.299, respectively). This investigation suggests that the impact of intangible assets on firm value is not uniform; rather, it is contingent upon specific corporate financial fundamentals and industry contexts, proving that investors require validation of innovation through profitability and market strength.

Type of the article: Research Article

Abstract
Strengthening environmental, social, and governance (ESG) practices is a keyway for corporations to improve their adaptability and cope with uncertainty. This study explores how ESG performance affects the adaptability of listed companies in China. The study used an observation data set of 45,031 Chinese listed companies from 2009 to 2024, and the fixed effect regression model was used to reveal the positive impact of ESG performance on corporate adaptability. The benchmark regression results show that the overall ESG performance has significantly improved corporate adaptability. In-depth analysis shows a significant U-shaped relationship between environmental performance and corporate adaptability. This shows that environmental investment will initially inhibit corporate adaptability due to cost pressure, but once it exceeds a certain threshold, it will have a positive impact. At the same time, both the social and governance dimensions show a continuous linear improvement effect. Heterogeneity analysis shows that higher internal agency costs will weaken the positive impact of ESG, while higher levels of external supervision will enhance these impacts. The economic consequence test corroborates that ESG performance indirectly has a positive impact on corporate value by enhancing adaptability. The research results show that for corporates operating in a dynamic environment, ESG development should be regarded as a strategic investment, especially through long-term continuous improvement of social and governance performance to overcome the threshold of environmental management costs, which can effectively enhance the corporate resilience and corporate adaptability of corporates and ultimately enhance the corporate value.

Acknowledgments
This research was funded by the General Program of the National Social Science Fund of China [Grant 25BGL022], The Impact Effect and Mechanism of Generative Artificial Intelligence on Organizational Deviant Innovation.

Type of the article: Research Article

Abstract
This paper aims to examine the operating performance of firms after new issues. Using financial data of 43 initial public offering (IPO) firms from 2013/14 through 2022/23 with 215 observations, operating performance is evaluated. Both the independent samples t-test and the Wilcoxon signed-rank test were used to compare firms’ operating performance between pre- and post-issue periods. Results reveal that operating performance after IPO for all indicators in different time windows from Year t+0 to t+3, has been negative compared to Year t–1. Sector-specific analysis shows that the decline in operating performance is significantly higher in the microfinance sector compared to hydropower firms. Underpricing has a positive effect on operating performance except in a few cases. Hot issue dummy has a negative, insignificant effect on both measures of operating performance, viz., operating return on assets and operating cashflow to total assets, for the first two-time windows, and it weakly supports the windows of opportunity hypothesis. On the other hand, the influence of promoter ownership on operating performance was positive except in few cases, which is contrary to the agency theory. Further, the results show that operating performance has a weaker influence on long-run IPO returns. Thus, it is proposed that IPO firms should strive to intensify their activities and effectively utilize capital raised through IPOs, considering the net present value of the projects to achieve better firm performance.

Acknowledgments
This paper is prepared based on my ongoing PhD work. So, I would thank my supervisors, Professor Dr. Keshar J. Baral and Professor Dr. Dilli Raj Sharma, for their mentoring during my PhD. I also extend a deep gratitude to the University Grants Commission Nepal for providing me PhD Fellowship with the Award No. PhD-78/79-Mgmt-02. I never forget my friend Ramkrishna Chapagain, a research scholar at Delhi School of Economics, University of Delhi, for assisting me with several inaccessible resources for this study.

Type of the article: Research Article

Abstract
This study aims to examine whether herding behavior intensifies during shock events and whether such crisis-induced herding leads to abnormal returns across nine IDX sectors over the 1997–2025 period. The study employs a quantitative event study approach using daily stock return data from 13 major global and domestic shock events representing nine industrial sectors listed on the Indonesia Stock Exchange. Herding behavior is measured using the cross-sectional absolute deviation model, while its effect on abnormal returns is analyzed through time series regressions incorporating interaction terms between herding indicators and shock event dummies, controlling for firm size, SMB, and HML factors. The results show strong asymmetry across market conditions and sectors. During bearish market phases, herding intensifies significantly in the agriculture, finance, and property real estate construction sectors and is associated with positive short-term abnormal returns, indicating crisis-driven market inefficiency. In contrast, during bullish market phases, most sectors exhibit anti-herding behavior, reflected in greater return dispersion and more selective investor decision making. The interaction between herding behavior and shock events is positive and statistically significant in most sectors, with the strongest effects observed during the 1997–1998 Asian Financial Crisis, the 2008 Global Financial Crisis, and the 2020 COVID-19 pandemic. Overall, the findings indicate that the Indonesian capital market remains in a transitional stage toward full efficiency, where psychological factors and information asymmetry continue to influence price formation during periods of extreme uncertainty.

Type of the article: Research Article

Abstract
Volatility in international capital flows remains a key source of global financial stability, particularly in the manifestation of sudden stop episodes with disruptive consequences. This study examines how global financial conditions, domestic macroeconomic fundamentals, and macroprudential policy responses shape the likelihood of sudden stop episodes in international capital flows. The analysis utilizes an unbalanced quarterly panel of up to 64 advanced and emerging economies over 1980–2024, in which sudden stop episodes in total, portfolio, and cross-border bank gross inflows are constructed following the Forbes and Warnock methodology. A panel probit with clustered standard errors is employed to estimate the likelihood of sudden stop episodes. The results indicate that tighter global financial conditions, measured by global uncertainty and long-term interest rates, significantly increase the probability of sudden stop episodes across capital flow categories. For total inflows, a one-point increase in the VIX raises sudden stop probability by 0.39 percentage points, while a one-standard-deviation increase raises it by 2.66 percentage points. Stronger domestic fundamentals, including high capital account openness and higher growth, reduce sudden stop risk, whereas elevated domestic credit significantly increases this risk. Emerging economies exhibit a structurally higher baseline probability than advanced economies, even after controlling global and domestic factors. Macroprudential policy tightening does not prevent sudden stop risk unconditionally, but when tightened amidst domestic credit expansion, it significantly mitigates sudden stop probability. These effects are most pronounced for Total and Cross-border sudden stop episodes, whereas portfolio flow sudden stops are largely driven by global push factors.

Type of the article: Research Article

Abstract
Thailand’s green bond market is expanding but remains less developed than in advanced economies, raising questions about issuance patterns and whether return–risk conditions support broader market growth. This study aims to analyze issuance dynamics in Thailand’s green bond market, evaluate return and risk performance, assess the relationship between return, risk, and issuance volume, and classify green bonds based on their risk characteristics. The sample included 62 green bonds registered with the Thai Bond Market Association (ThaiBMA) during 2019–2025. Descriptive statistics are used to summarize issuance and performance indicators; return measures include current yield, yield to maturity, holding period return, and annual percentage rate; risk is assessed using seven variables capturing default, liquidity, interest rate, inflation, and reinvestment risks, and hierarchical clustering is applied to classify bonds by risk level. Results show that private-sector issuers dominate the market, accounting for 79% of outstanding green bond value (103.216 billion baht), followed by state-owned enterprises (12%) and foreign issuers (9%). Current yield ranges from 1.62% to 5.55% (mean 3.40%), while yield to maturity ranges from 1.75% to 8.86% (mean 3.20%). Credit spreads range from 0.41% to 3.49% (mean 1.46%), and duration ranges from 0.019 to 10.07 years (mean 3.35), indicating generally moderate risk conditions. SEM analysis further reveals a significant positive relationship between risk and return, while issuance volume is not significantly related to either factor. Cluster analysis identifies four distinct risk groups – low, medium, high, and highest – offering a practical risk classification for investors and policymakers to support sustainable finance development in Thailand.

Type of the article: Research Article

Abstract
Corporate tax avoidance remains a central governance concern in emerging markets characterized by concentrated ownership and uneven monitoring effectiveness. This study examines whether multiple large shareholders and family ownership constrain corporate tax avoidance and whether digital transformation moderates these relationships in Indonesian listed firms. The sample consists of 369 firms (3,670 firm-year observations) during 2013–2022, representing major industry groups on the Indonesia Stock Exchange, including basic materials, energy, consumer cyclical, consumer non-cyclical, industrials, infrastructure, and property and real estate. Panel regression models are estimated using effective tax rates (ETR) and book–tax differences (BTD) as tax avoidance proxies. The results show that multiple large shareholders are negatively but not significantly associated with tax avoidance, indicating limited monitoring effectiveness in the full sample. Family ownership likewise exhibits no systematic relationship with tax avoidance. Furthermore, digital transformation does not significantly moderate the ownership–tax avoidance relationship at the aggregate level. However, industry-level analysis reveals that multiple large shareholders significantly reduce tax avoidance in the consumer cyclical sector, and this effect becomes stronger in firms with higher digital transformation intensity. Overall, the findings indicate that ownership-based governance and digital transformation do not uniformly constrain corporate tax avoidance in Indonesia, and their effectiveness is highly dependent on industry context.

Acknowledgment
This research was supported by the Ministry of Higher Education (MoHE) of Malaysia through the Fundamental Research Grant Scheme (FRGS/1/2022/SS01/UUM/02/10).

Type of the article: Research Article

Abstract
Financial inclusion has become increasingly central to the European Union’s social policy agenda amid digital transformation, recurrent economic shocks, and persistent poverty and inequality concerns. This study aims to assess the impact of financial inclusion on poverty risk and income inequality in the European Union, with particular attention to non-linear and long-run effects. The analysis uses annual aggregate EU-level data for 2004–2023. It applies time-series econometric methods, including correlation analysis, unit root and Granger causality tests, linear and quadratic regressions, and Error-Correction Models. The results indicate that financial inclusion does not exert a uniform direct linear effect on social outcomes. Correlation analysis shows a strong association between digital financial use and income inequality (e.g., card transactions and the Gini coefficient: r = −0.69; internet banking use and the Gini coefficient: r = −0.63), while correlations with poverty risk remain weak. Regression results confirm that most financial inclusion indicators have no statistically significant linear effect on poverty risk. However, a significant non-linear (inverted U-shaped) relationship is identified between card payment transactions and poverty risk, indicating that poverty risk declines once digital payment usage exceeds a threshold. In contrast, income inequality is significantly and negatively associated with traditional financial access, as increases in bank branch density per 100,000 inhabitants reduce the Gini coefficient in both the short and long run. Overall, the findings show that the social effects of financial inclusion in the EU are outcome-specific and depend on the form and intensity of inclusion rather than access alone.

Type of the article: Research Article

Abstract
In the context of macroeconomic instability, geopolitical challenges, and financial market transformation, real estate has gained increasing attention as an important asset class. The purpose of this paper is to conduct a comparative analysis of the financial efficiency of real estate investment trusts (REITs) that operate under income-driven and NAV-driven approaches in developed countries and to substantiate organizational schemes of investment funds for the development of Ukraine’s REIT segment. The analysis shows that although REIT regimes differ across jurisdictions, they share common structural features that may be considered in adapting Ukrainian legislation to international standards. Based on a system of key financial indicators and data from international associations (INREV, EPRA, NAREIT), consulting reports, and stock market statistics, the study identifies two dominant approaches. The income-driven approach, typical of listed REITs in the United States, emphasizes stable cash income, liquidity, and market transparency. In contrast, the NAV-driven approach, characteristic of European non-listed real estate funds, focuses on long-term growth in net asset value. For Ukraine, the study identifies major barriers to REIT implementation, including underdeveloped stock exchange infrastructure, high entry thresholds for investors, and the absence of mandatory profit distribution requirements. Organizational schemes of non-listed investment funds based on the NAV-driven approach are proposed as a more feasible framework under current financial conditions, particularly in transitional economies with underdeveloped capital markets, and may serve as a foundation for the post war development of the Ukrainian REIT segment.

Type of the article: Research Article

Abstract
This study aims to identify the nonlinear determinants of listing day returns globally using a comprehensive dataset. It further examines the regional distinctions and complexities in the international context using spline regression analysis. It also assesses variation in the linear and nonlinear relationships of listing day returns and their determinants across various geographical regions worldwide. Using a set of 8,914 initial public offerings issued across the globe from January 2011 to October 2024, this study employs a restricted cubic spline methodology. Spline knots for each determinant under study were identified to examine the nonlinear influence of the already studied determinant variables. The results of the analysis depict the offer price and listing delay as major non-linear determinants, whereas issue size and market timing significantly influence listing day returns based on linear analysis. In addition, it was found that the Asia-Pacific market substantially differs from other markets geographically, based on splines. The findings of this study provide valuable insights for associated stakeholders by focusing on issue performance, predictions, and market understanding. There is a substantial presence of nonlinear relations among listing day returns and their determinants worldwide.

Type of the article: Research Article

Abstract
Financial statement fraud (FSF) continues to undermine investor confidence, particularly in emerging markets where governance enforcement remains uneven. This study examines how Fraud Triangle factors influence FSF and whether earnings management strengthens these relationships in Vietnam. Using a two-step system GMM regression on 138 listed non-financial firms over 2019–2022 to address potential endogeneity concerns, the results show that financial distress significantly increases fraud risk. Firm performance is also positively associated with fraud, implying that pressure to maintain good results may contribute to misreporting. State ownership and foreign ownership are both negatively associated with FSF, indicating that monitoring by these shareholders constrains fraudulent behavior. Industry characteristics proxied by receivables intensity are positively related to fraud, suggesting greater opportunity for manipulation in revenue-related accounts. In contrast, liquidity and auditor reputation do not exhibit statistically significant effects, suggesting that external audit prestige alone may be insufficient to constrain fraudulent reporting in transitional regulatory environments. Importantly, earnings management is positively associated with FSF and significantly strengthens the impact of financial distress on fraud, indicating that discretionary accruals amplify the translation of financial pressure into misreporting. These findings point to the importance of improving financial management, enhancing transparency, and strengthening regulatory oversight to reduce fraud risk and support more effective detection by policymakers, auditors, and investors.

Acknowledgment(s)
This research is funded by the University of Economics and Law, Vietnam National University Ho Chi Minh City/VNU-HCM

Type of the article: Research Article

Abstract
The growing importance of renewables in the global push towards low-carbon economies has led to rising investor interest in clean energy stocks; however, their performance remains sensitive to macroeconomic and financial conditions. This study aims to examine the dynamic short-run and long-run impacts of macroeconomic and financial stress factors on clean energy stock returns, proxied by the Clean Edge Green Energy Index. Monthly data covering the period from January 2008 to June 2025 are employed. An autoregressive distributed lag modeling framework is used to capture both short-run dynamics and long-run equilibrium relationships between clean energy stock returns, crude oil prices, exchange-rate, interest rate, and the volatility index. The results confirm the existence of a stable long-run relationship among the variables, as evidenced by the bounds testing approach. In the short run, increases in volatility, exchange-rate appreciation, and rising interest rates exert statistically significant negative effects on clean energy stock returns, while the adjustment toward long-run equilibrium is rapid, with approximately 74% of short-run deviations corrected within one month. In the long run, exchange-rate movements and interest rates continue to impose persistent and economically meaningful adverse effects, whereas crude oil price changes remain statistically insignificant. These findings underscore the importance of macro-financial conditions in shaping clean energy stock performance beyond commodity price dynamics and highlight the role of stable financial environments in supporting long-term investment in renewable energy markets.

Type of the article: Research Article

Abstract
Capital structure decisions in the Nigerian economy are vital and significantly influence the performance of manufacturing firms. This study investigates the effect of the debt-equity ratio on the financial outcomes of the following manufacturing companies: BUA Cement Plc, Dangote Cement Plc, Lafarge Africa Plc, and Flour Mills Nigeria Plc, all quoted on the Nigeria Exchange Group Ltd. during the period 2015–2024. Fixed-effect panel data regression analysis is used to determine the influence of short-term and long-term debts on profit (return on investment). The findings suggest that the negative relationship is strong and statistically significant between the financial performance (profitability) and the leverage ratios, such as short-term debt/net worth ( -0.042, p < 0.025), long-term debt/net worth ( -0.061, p < 0.009), and total debt/net worth ( -0.035, p < 0.025). Therefore, all the null hypotheses were rejected at the 5% level of significance. The model describes the variation in firm performance which is, on average, 39%. At the firm level, BUA Cement Plc experienced a deleveraging trend and the profitability of the firm was on the downwards trend while Flour Mills Plc, owing to its high leverage, was marginally affected in its profit performance. The conclusion is that effective control of capital structure is essential if a better return per naira is to be earned for the country’s manufacturing sector.

Type of the article: Research Article

Abstract
This study examines whether Environmental, Social, and Governance (ESG) performance enhances stock returns directly or indirectly through firm fundamentals in an emerging market context. The analysis focuses on non-financial firms listed on the Indonesian Stock Exchange (IDX) over the period 2014–2023, following the expansion of sustainability reporting regulations in Indonesia. The final sample comprises 4,037 firm-year observations, of which 477 contain available ESG scores obtained from a third-party rating database. Panel data regression models with firm-level controls and mediation analysis are employed to test both direct and indirect relationships. The empirical results indicate that ESG performance has a positive and statistically significant effect on total factor productivity (TFP) and return on assets (ROA), suggesting that sustainability practices are associated with improvements in operational efficiency and profitability. In turn, both TFP and ROA exhibit positive and significant effects on stock returns. However, ESG does not demonstrate a statistically significant direct effect on stock returns after controlling for firm fundamentals. Mediation analysis confirms that ESG influences stock returns indirectly through productivity and profitability channels, with productivity emerging as the stronger transmission mechanism. These findings suggest that, in the Indonesian capital market, ESG operates primarily as a fundamental value-enhancing mechanism rather than as an independent pricing signal. Sustainability performance contributes to shareholder value when it strengthens firms’ internal efficiency and financial resilience, highlighting the importance of fundamental performance channels in emerging markets.

Type of the article: Research Article

Abstract
ESG investing has emerged as a key factor in corporate strategy and capital investment, although its effects on stock returns in emerging markets such as India remain inconclusive. This paper investigates the effects of ESG scores and the financial performance of firms on the stock returns of firms in the Indian Nifty100 ESG Sector Leaders Index. Based on balanced panel data on 14 firms for 2015–2024, the study employs pooled OLS, random-effects, and fixed-effects models, conducts the Breusch-Pagan LM and Hausman tests to determine the appropriate specification, and finally estimates a two-way fixed-effects model. The empirical findings show that the ESG score has a statistically significant negative correlation with stock returns, indicating a negative relationship between ESG performance and short-term returns in the market. Return on Capital Employed (ROCE) is an important positive factor of stock returns, indicating that capital efficiency is important for stock price growth. The macroeconomic factors are also important: GDP growth has a statistically significant negative correlation with stock returns, whereas the statistical significance of inflation and industrial production is insignificant. There are no significant effects on returns in Earnings per Share (EPS) and Return on Assets (ROA). These findings imply that ESG integration in India is in its early development stage and could introduce short-term adjustment costs where corporate strategy and policy support are necessary to ensure sustainability initiatives are justified in the long-term value creation.

Type of the article: Research Article

Abstract
The capital market is one of the investment venues that supports economic growth. Investors entering the capital market must take advantage of all issues to obtain returns on their investments. The January effect is a phenomenon related to the documentation of irrational behavior in global capital markets, but its exact nature remains uncertain. This study aims to test the existence of the January effect in the IDX by analyzing data on companies with small, medium, and large market capitalizations. The January effect was tested using the Mann-Whitney test on daily data, with a total of 17,760 observations during the 2023–2024 period, comprising 8,400 Small Market Capitalization (SMC), 7,920 Medium Market Capitalization (MMC), and 1,440 Large Market Capitalization (LMC) stocks, accessed via www.idx.co.id or www.yahoofinance.com. Findings reveal significant evidence of the January effect among small-cap firms, with returns showing positive anomalies in January. Conversely, no such evidence is found in medium or large-cap firms, suggesting that the anomaly is not universal. This study concludes that market anomalies may persist within certain segments, and, in practical terms, underscores the importance of investor caution when relying on seasonal anomalies in decision-making.

Acknowledgment
The authors would like to express sincere gratitude to Muhammad Dava Rizki for his assistance in data tabulation, to Dr. Didi Pianda for his valuable preliminary review, and to Dr. A.Y.M. Atiqul Islam for his insightful suggestions.

Type of the article: Research Article

Abstract
This study examines the impact of the Economic Growth Rate and the Foreign Investment Ratio on the financial performance of Jordanian public shareholding industrial companies. In doing so, it also accounts for a set of control variables, particularly firm size, firm age, and financial leverage. Financial performance is measured through Return on Equity and Return on Investment, using a panel dataset spanning 2014 to 2023 from 26 companies listed on the Amman Stock Exchange, obtained from the Amman Stock Exchange, the Securities Depository Center, the Jordan Securities Commission, and the World Bank. This study uses a quantitative analytical framework based on random effects panel regression models, estimated using Stata 17 software. The results illustrate that Foreign Investment Ratio has a statistically consequential and positive effect on both ROE and ROI, while there was no statistically significant effect of Economic Growth Rate on both ROI and ROE. Regarding the control variables, the effect of financial leverage on ROI was negative, while financial leverage had no effect on ROE. In addition, Age had a positive effect on both ROI and ROE, while Size had a positive effect on ROE but no effect on ROI. This study contributes novel insights by exploring the interaction between macroeconomic growth and foreign investment in shaping corporate financial outcomes in emerging markets. It further offers implications for investors, policymakers and corporate managers aiming to leverage economic and investment environment to enhance firm performance.