Issue #4 (Volume 22 2025)

Type of the article: Research Article

Abstract
The paper deals with the intersection of technological awareness and moral behavior in the context of online gambling. The study analyzes the influence of blockchain understanding on anti-online gambling attitudes, with religiosity and perceived social impact serving as mediators. The study’s object comprises 532 millennial Muslims in Indonesia, selected through simple random sampling, and surveyed from July to October 2024. Respondents met inclusion criteria such as age 17-50 years, Indonesian citizenship, Muslim identity, and knowledge of blockchain. Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) was employed to assess proposed relationships.
The results demonstrate that blockchain understanding has a significant positive direct effect on online gambling attitudes (T = 3.974; p < 0.001), suggesting that higher blockchain literacy may actually increase openness toward gambling, possibly due to perceived anonymity and security. In contrast, blockchain understanding significantly enhances religiosity (T = 58.653; p < 0.001) and perceived social impact (T = 4.929; p < 0.001), both of which positively influence anti-online gambling attitudes (T = 11.370 and T = 11.574; p < 0.001). Furthermore, indirect effects confirm that both religiosity (T = 9.822; p < 0.001) and perceived social impact (T = 20.224; p < 0.001) significantly mediate the relationship between blockchain understanding and anti-gambling attitudes. The study concludes that while blockchain knowledge alone may increase gambling engagement, its influence can be redirected toward anti-gambling behavior through enhanced moral and social awareness. The findings offer practical value in designing educational interventions that integrate technological literacy with religious and social ethics.

Type of the article: Research Article

Abstract
The relative stagnation of the Philippine economy since the mid-1900s has been widely debated. It is argued that the negative divergence can be explained by low productivity growth and a lack of foreign direct investments. However, one lacks standardized annual series of comparable GDP and productivity figures covering the entire period from 1950 to the present. This paper attempts to respond to this challenge by proposing new PPP calculations of annual GDP for the years 1950–2023 for nine East and South-Eastern Asian economies. By establishing these figures, one can explain the relative Philippine stagnation compared to neighboring countries.
New calculations of labor, capital, and total factor productivity show that the Philippines lagged compared to the neighboring economies during the second half of the 20th century. Particularly, the lack of total factor productivity growth seems to largely explain the Philippines’ relative fallback. This conclusion is confirmed by growth accounting and counterfactual estimations, suggesting that the missing growth of total factor productivity can explain the bulk of the relative decline in the Philippines. However, from 2011, the relative growth pattern seems to change, as the island economy shows higher economic and productivity growth rates than its surrounding countries.
The relatively weak economic growth and productivity development can be largely attributed to a dysfunctional and corrupt political system, which peaked during the last years of the Marcos dictatorship, 1965–1986. The predatory state system also contributed to bad infrastructure and an inefficient management culture, which discouraged domestic and foreign direct investments.

Type of the article: Research Article

Abstract
An individual’s intention to invest reflects their inclination to explore diverse investment instruments, allocate time to understand investment mechanisms through activities such as seminars or workshops, and actively participate in investment practices. This issue is particularly relevant, given the relatively low levels of financial literacy and investment participation among the public, especially Generation Z. The present study aims to examine the influence of financial literacy, prior behavioral experience, and subjective norms on investment intention among Generation Z in North Sumatra, Indonesia, both directly and indirectly through perceived behavioral control. Respondents comprised students and employees identified as Generation Z, selected using purposive and snowball sampling techniques, with data collected via online questionnaires. A quantitative approach was employed, and data were analyzed using Structural Equation Modeling with Partial Least Squares (PLS) version 4.0. The results demonstrate that financial literacy has a significant positive impact on both investment intention (p < 0.05) and perceived behavioral control (p < 0.05). Furthermore, perceived behavioral control, previous experience, and subjective norms significantly influence investment intention (p < 0.05). Mediation analysis reveals that perceived behavioral control plays a notable mediating role in the relationship between financial literacy and investment intention (p < 0.05). These findings emphasize the need to enhance financial literacy, strengthen investment communities, and deliver targeted training to build Generation Z’s confidence in investing, thereby fostering their investment intentions strategically and sustainably.

Type of the article: Research Article

Abstract
This study examined per capita spending as a key indicator of domestic-level economic activity and households’ financial involvement, both of which are essential to promoting inclusive and sustainable economic growth. The analysis focused on the case of Jordan, covering the period 1993–2023, to investigate the effect of three key determinants of per capita expenditure: First, Fintech solutions as a main facilitator of financial inclusion; second, digital tools as the main indicator of digital infrastructure development level; and finally, macroeconomic indicators that mainly affect economic growth. Therefore, the Fully Modified Least Squares (FMOLS) method was applied to the data to emphasize the dynamic relationship between the three determinants in driving per capita expenditure.
The regression results showed a level of spending that naturally exists, even without other determinants, with a coefficient of 4.6 due to the government’s grants and subsidies. Furthermore, they affirmed that higher disposable income through wages, as well as effective financial access through remittance transfer payments and account ownership, enhances individual consumption and financial inclusion. Additionally, despite the large volume of cards, the insignificant impact on PCE suggested that Fintech solutions heavily vary with the progress of technological infrastructure, such as the internet and ICT, combined with the need for financial literacy to avoid misuse of them. Additionally, the negative impact of inflation and the insignificant effect of GDP suggest that without stable economic indicators, such as consistent GDP growth, controlled inflation, and income equality, digital financial solutions may struggle to deliver sustainable benefits in sustaining economic growth.

Type of the article: Research Article

Abstract
This paper examines the influence of inventory management on firm performance, applying Hansen’s threshold estimation method across firm size. It uses panel data, including 149 industrial manufacturing firms listed on HOSE, HNX, and UPCOM markets in Vietnam from 2014 to 2024. In small firms (SIZE ≤ 24.4679), WIP (work in progress) and ITO (inventory turnover) positively affect ROA, while FIN (finished goods) has a negative effect. As SIZE increases (24.4679 < SIZE ≤ 25.0912), WIP reverses to a strong negative effect, FIN turns positive, and ITO loses statistical significance. In large firms (SIZE > 25.0912), RAW (raw materials) appears as a significant negative factor on ROA, WIP continues to have a negative effect but at a decreasing level, and FIN reverses to a negative effect. These findings suggest that SIZE is important in moderating the relationship between inventory and firm performance. The control variables also show significant effects: TANG (tangible assets) negatively affects firm performance, while CASH has a positive impact, confirming the role of working capital balance. Regarding managerial implications, SIZE is an important moderator in the relationship between inventory and firm performance. For small firms, exploiting the benefits of WIP and increasing inventory turnover can improve profitability. Meanwhile, maintaining a reasonable WIP level becomes urgent for medium and large firms to avoid wasting resources and delaying production. For the largest firms, more attention should be paid to RAW to limit the risk of capital congestion, while maintaining a suitable level of FIN to ensure a smooth supply chain.

Type of the article: Research Article

Abstract
Digital transformation plays a crucial role in the evolution of industrial companies, serving as a key driver for boosting productivity and streamlining operational efficiency. This modern shift not only facilitates the adoption of advanced technologies but also fosters a culture of innovation and agility within organizations. Therefore, this study aims to explore the relationship between digital transformation and financial sustainability among industrial companies listed on the Amman Stock Exchange, shedding light on how these digital initiatives can lead to long-term financial health and resilience in an increasingly competitive market. Panel data were built based on the annual reports of 32 industrial companies listed on the Amman Stock Exchange from 2015 to 2023, which were chosen due to their critical role in the national economy. FEM and GMM were employed to obtain study outputs. The study concluded that the relationship between digital transformation and financial sustainability is significant and positive (Coef 0.52, P-value 0.01), meaning that digital transformation contributes significantly and positively to enhancing financial sustainability in Jordanian industrial companies. An interaction coefficient was also found between digital transformation and firm size (Coef = 0.07, P-value = 0.04), where company size is a moderating factor that strengthens the impact of this transformation on financial sustainability. Accordingly, the study recommends expanding the scope of future research to explore the factors driving digital transformation, most notably entrepreneurship and organizational innovation, given their potential role in accelerating the pace of transformation and achieving its sustainable impact.

Type of the article: Research Article

Abstract
The rise of decentralized finance (DeFi) presents new opportunities for accessing modern financial services. Despite their transformative architecture, most DeFi applications are currently unregulated, which exposes market participants to unforeseen risks. Therefore, understanding the level of connectedness between DeFi and traditional finance (TradFi) is crucial, particularly in emerging Asian markets where the level of cryptocurrency acceptance is high. Applying the time-varying parameter vector autoregressive model, this study examines the return connectedness between leading DeFi assets and traditional financial sectors in Indonesia, India, and Vietnam – the top three countries in Asia for cryptocurrency adoption. By analyzing TradFi at the industry level, this study captures sector-specific spillover dynamics that are essential to the monitoring of systemwide risk. The empirical results reveal low, time-varying return spillovers between DeFi and traditional financial sectors in the selected emerging Asian markets. The emerging financial sectors exhibit stronger linkages with broader traditional market indicators than with DeFi, in which assets interact primarily with each other. Emerging financial sectors and gold are the recipients of return spillovers, and DeFi assets act as the return transmitters. The current low degree of integration between DeFi and TradFi offers policymakers a window of opportunity to develop a robust financial regulatory framework that addresses issues of market stability and consumer protection while promoting the advancement of financial innovation.

Acknowledgments
We thank the editors and anonymous reviewers for their valuable and constructive feedback, which has contributed significantly to improving the quality of this manuscript.

Type of the article: Research Article

Abstract
Interest paid by companies on the debt acquired to finance their operations is a major factor that influences their financial performance and long-term growth opportunities. This paper aims to examine whether Chief Executive Officers’ (CEOs) personal and professional characteristics, including age, academic qualification, managerial experience, stock ownership, duality, and tenure, impact companies’ cost of debt using a sample of service and manufacturing firms listed on the Amman Stock Exchange during the period 2015–2023. The cost of debt is represented by the effective interest rate paid by a company on its debts, which is determined by dividing the firm’s interest expense at the end of the year by the firm’s average total debts. Based on fixed effect regression analysis, the results indicate that firms’ cost of debt exhibits significant negative relationships with both CEO academic qualifications and practical experience (p < 0.05), while the relationships between the cost of debt and CEO age, stock ownership, duality, and tenure are insignificant (p > 0.10). These results suggest that highly educated and experienced CEOs tend to make more efficient financial decisions, which enhances creditors’ trust in the company and is reflected in a reduced cost of debt.

Type of the article: Research Article

Abstract
This study examines the relevance of double taxation treaties (DTTs) in attracting foreign direct investment (FDI), with a focus on how their effects change across lower-middle-income and upper-middle-income countries. As global capital mobility intensifies, many developing economies have expanded their tax treaty networks to enhance investment appeal. The study aims to evaluate whether such expansions effectively increase FDI inflows and how the results vary by income group. Using a balanced panel dataset of 42 developing economies from 2004 to 2023, the empirical analysis applies fixed effects regression models. FDI inflows measured as a percentage of GDP in current US dollars serve as the dependent variable, with control variables capturing both domestic institutional quality and external macroeconomic conditions. The results show that, on average, signing additional DTTs raises FDI inflows by 0.26% in upper-middle-income economies, a relationship statistically significant at the 5% level. In contrast, the effect in lower-middle-income countries is statistically insignificant and occasionally negative, with average changes in FDI below 1%. This divergence suggests that strong governance, transparent legal systems, and stable macroeconomic environments are crucial preconditions for converting tax treaty networks into tangible investment gains. The findings conclude that while DTTs can facilitate cross-border investment, their effectiveness depends largely on domestic institutional capacity, implying that treaty expansion without complementary structural reforms yields limited benefits.

Type of the article: Research Article

Abstract
This study provides empirical evidence on the influence of the corporate governance structure and firm characteristics on earnings management practices within Indonesia’s manufacturing sector. Specifically, it examines whether firms with family-linked CEO duality and varying firm sizes influence the level of discretionary accruals in financial reporting. Adopting agency theory and positive accounting theory, the study explores how internal governance alignment and organizational scale relate to managers’ earnings management practices. Using a quantitative research approach, the study analyzes 840 firm-year observations from 140 listed manufacturing companies on the Indonesia Stock Exchange (IDX) for the period 2018–2023, selected based on data completeness and analyzed using panel data regression. The manufacturing sector is chosen due to its economic significance and vulnerability to earnings management in emerging markets such as Indonesia. The findings reveal that CEO duality, defined as a familial relationship between the board of directors and commissioners, significantly reduces earnings management practices, suggesting improved internal monitoring and interest alignment. In contrast, larger-sized firms are associated with higher levels of earnings management, possibly due to greater financial complexity and performance pressure. Other governance mechanisms and financial indicators, such as board size, audit committee independence, and leverage, are included as control variables. Overall, the results suggest that targeted governance structures and firm attributes play a crucial role in shaping financial reporting quality, offering practical implications for investors, regulators, and corporate policymakers concerned with earnings transparency.

Type of the article: Research Article

Abstract
Globally, small and medium-sized enterprises (SMEs) are facing increasing pressure to achieve sustainability goals through vital financing mechanisms, including green financing, social impact investments, and microfinancing. This study examines the impact of modular innovation on the relationship between sustainable development financing (SDF) and the performance of SMEs in an emerging economy. The research used a cross-sectional survey of 740 SMEs across Nigeria from January 2024 to March 2024. After cleaning the data, 612 responses were valid. These responses were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that all three sustainable financing mechanisms have a significant and positive influence on SME performance. Modular innovation, specifically incremental, architectural, and radical innovation, notably moderates these relationships. Incremental innovation exhibited the strongest moderating effect (β = 0.543), followed by radical innovation (β = 0.473), and architectural innovation (β = 0.441). This suggests that innovative capacity enhances the impact of sustainable financing. Consequently, these results underscore the crucial role of modular innovation in improving the effectiveness of sustainable financing for SMEs. They also emphasize the need to incorporate innovation policies that support SME growth via green financing, social impact investments, and microfinancing in emerging economies like Nigeria.

Acknowledgments
The authors express their gratitude to the anonymous reviewers, the journal editor, and all the scholars whose work was referenced in this study. They also sincerely thank the respondents who provided the data necessary for the research.

Type of the article: Research Article

Abstract
Herding behavior, in which investors follow overall market trends rather than conducting independent analysis, has significant implications for market efficiency, volatility, and liquidity conditions, particularly in emerging markets like Indonesia. This study aims to investigate the presence and dynamics of herding behavior in Indonesia’s LQ-45 index during three distinct periods: pre-pandemic (2019), pandemic (2020–2021), and post-pandemic (2023). The sample comprises 22 firms consistently listed on the LQ-45 index, with daily data collected from 2019 to 2023. A time-series regression based on the Cross-Sectional Absolute Deviation (CSAD) model measured herding intensity, while a Granger causality test assessed the relationship between herding behavior and market liquidity. The results indicate that herding behavior intensified significantly during the pandemic, evidenced by a strong negative γ₂ coefficient (–0.0124, p = 0.0026) and an adjusted R² of 0.1902, the highest across all periods. In contrast, the pre-pandemic period showed relatively weak herding behavior under more stable market conditions, while the post-pandemic phase demonstrated a return to more independent decision-making. The Granger causality test confirmed a bidirectional relationship between market liquidity and herding during the crisis, while such causality was absent after the pandemic. In the pre-pandemic period, herding influenced liquidity (p = 0.014), while no significant causal relationships were found afterward. Overall, herding behavior increased during the pandemic but returned to more independent decision-making in the post-pandemic phase.

Acknowledgments
The authors thank to Universitas Syiah Kuala for supporting this research. We also thank the reviewer for the thorough review of this manuscript and for the guidance on this research article. We sincerely appreciate the time and effort you have dedicated to providing valuable feedback.

Type of the article: Research Article

Abstract
Between 2019 and 2023, the Peruvian sol showed an accumulated nominal variation of approximately 12.9%, reflecting moderate depreciation influenced by both external and domestic factors, although in 2022 it appreciated by 4.6%, positioning itself as one of the most stable currencies in the region. The objective of this study was to estimate the impact of exchange rate volatility on Peru’s foreign trade during this period of global and domestic turbulence, employing a quantitative correlational design with secondary data from the Central Reserve Bank of Peru (BCRP) and the National Superintendence of Customs and Tax Administration (SUNAT), analyzed through regression models and statistical tests in SPSS. The results indicate that exchange rate variability explains 61.1% of changes in export volume, 49.8% in import volume, and 45.9% in terms of trade (all p < 0.01), while inflation and GDP also show significant associations with exports and imports, with R² values ranging from 24.5% to 60.4% (p < 0.01). These findings confirm that macroeconomic volatility, particularly exchange rate dynamics, significantly shapes trade performance. From a theoretical perspective, this study provides evidence from a primary-exporting economy, enriching the literature on exchange rate fluctuations in emerging markets, while from a practical standpoint, it underscores the importance of adopting economic and trade policies that mitigate external vulnerability, stabilize exchange rate fluctuations, and strengthen competitiveness. In conclusion, exchange rate volatility exerts a decisive influence on Peru’s foreign trade, reinforcing the need for integrated and sustainable policy measures to ensure stability and long-term growth.

Type of the article: Research Article

Abstract
This study investigates how financial innovation, financial behavior, and accounting knowledge influence investment decisions, with fintech security tested as a moderating variable. The research focuses on 250 small enterprise owners in Indonesia, allowing for robust path analysis. Purposive sampling was used to ensure participants were active non-professional investors with comparable business scale and digital financial exposure. These enterprises operate primarily in trade, services, and light manufacturing, with annual turnover below IDR 2.5 billion, aligning with Indonesia’s official SME classification. Structured questionnaires were used to collect data for analysis through Structural Equation Modeling (WarpPLS). This analysis indicated that financial innovation (β = 0.383, p = 0.001), accounting knowledge (β = 0.311, p = 0.001), and financial behavior (β = 0.131, p = 0.010) were all positively and significantly related to investment decisions. Fintech security (β = 0.326, p = 0.001) was a direct predictor of investment decisions, and also positively moderated both financial innovation (β = 0.182, p = 0.002) and accounting knowledge (β = 0.166, p = 0.028) on investment decisions. However, fintech security did not significantly moderate financial behavior. These results suggest that technological capability through fintech solutions, financial literacy, and platform security were significant elements affecting investment strategies for small business owners. In terms of policy implications, strict measures should be undertaken in developing features and architecture to scheme out insecurity with technological innovation, improving the accounting literacy of investors, and encouraging the use of innovations to enhance the investment decision quality of small business owners.

Type of the article: Research Article

Abstract
This study examines the influence of governance, sustainability performance, and innovation on firm performance. The study employs a quantitative approach, utilizing panel data regression analysis, on manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2023. The data collection yielded 782 unbalanced panel datasets as the basis for the analysis. Data were collected through documentation in the form of financial and annual reports during the observation period. The results indicate that sustainability performance has a significant impact on the return on assets. The coefficient is 0.10105182 and is statistically significant at the 5% level. Innovation also affects the return on assets and gross profit margins. The coefficient is 0.02189183 and is statistically significant at the 1% level. The percentage of independent commissioners affects the gross profit margin. The coefficient is –0.01407224 and is statistically significant at the 1% level. No evidence suggests that governance, sustainability performance, or innovation affects return on equity. In general, sustainability performance and innovation are key predictors of a firm’s overall performance.

Type of the article: Research Article

Abstract
This study evaluates asset pricing models in India, highlighting the superiority of the Fama-French Three-Factor Model over CAPM while questioning the added value of the Fama-French Five-Factor Model. The findings offer insights for investors and policymakers in portfolio management and asset allocation. The study evaluates and compares the performance of asset pricing models – Single-Factor Model of Sharpe and Linter, Three-Factor Model of Fama and French, and Five-Factor Model of Fama and French– on the Indian stock market. It employs the Fama-French methodology to analyze asset pricing. This paper uses four characteristics of a firm to test the market capitalization model for the size effect, the book-to-price ratio for the value effect, the net income to book equity ratio as a variable of profitability effect, and annual growth of total assets for the investment effect. Spanning nine years from July 1, 2012 to June 30, 2021, this study examines 64 companies from the NSE 100 index to analyze stock return dynamics. This study provides a comprehensive comparison of the three models using 18 (6 x 3) portfolios constructed based on size, value, profitability, and investment. The study found that the Fama-French Three-Factor Model, with an R² of 95.6%, outperformed the Capital Asset Pricing Model, which had an R² of 89.9%. Although the Fama-French Five-Factor Model achieved the highest R² of 95.8%, its improvement over FF3FM was minimal. This indicates that the inclusion of profitability and investment factors does not significantly enhance the model’s ability to explain stock returns.

Type of the article: Research Article

Abstract
Financial globalization promotes investment inflows, financial market development, and deeper integration into the international economic system, yet its impact on economic growth remains ambiguous. The study aims to identify and quantify the influence of key financial globalization factors – direct and portfolio investments, external debt, and international reserves – on the economic growth of selected countries, with a focus on Ukraine’s integration into the global financial space. Statistical analysis was employed to summarize financial globalization indicators, correlation analysis to assess the strength and direction of relationships between these factors and GDP growth, regression modeling to estimate the impact of each factor on economic performance, and comparative analysis to contrast Ukraine’s trends with those of European countries. The results revealed that in developed economies (Germany, the UK), high FDI levels (5-8% of GDP) and stable reserves (over 25% of imports) support sustainable growth. In transition economies (Poland, Romania), financial globalization contributes to modernization but increases volatility due to reliance on external investors. For Ukraine, the impact remains limited: FDI averaged 3-4% of GDP, external debt exceeded 80% of GDP, and international reserves fluctuated around USD 25-30 billion, insufficient for long-term macroeconomic stability. Correlation between FDI and GDP (r = 0.62) indicates a moderate positive link, while portfolio investment showed a weak and unstable connection (r = 0.28). Overall, financial globalization offers opportunities for capital inflows and technological transfer, but its benefits for Ukraine depend on strengthening institutional capacity, financial resilience, and a predictable regulatory environment to ensure it serves as a driver of sustainable development rather than a source of risk.

Acknowledgment
This research is carried out within the framework of the scientific project “Model of the post-war development of credit institutions based on artificial intelligence: customization of financial services and prudent supervision” with the support of the Ministry of Education and Science of Ukraine, State registration No. 0124u000810 (Order No. 1569 dated December 27, 2023).

Type of the article: Research Article

Abstract
Market rumors distort price discovery and investor confidence, especially in high-velocity trading environments. This study evaluates how the UAE commercial and securities law protects transactions against market-moving rumors and compares the UAE’s approach with that of the US, UK, and EU. Using a doctrinal-comparative design, it analyzes statutes, exchange rules, supervisory guidance, and published actions (2019–2025). Illustrative enforcement items and operational timelines are also mapped (e.g., early-morning disclosure windows and short suspensions). UAE provisions prohibiting misleading statements/manipulation converge with international standards. Exchange operations create same-day rebuttal discipline (e.g., 09:00 disclosure with a 09:00–09:30 suspension lever if missed), while public sanctions have reached AED 5,000,000, alongside aggregate and individual penalties. Compared with benchmarks, the UAE exhibits faster initial issuer statements but less explicit safe harbors for rapid rebuttals and narrower private redress pathways. The framework materially aligns with leading jurisdictions. Codifying explicit rebuttal timelines, introducing calibrated safe harbors for good-faith rapid clarifications, and clarifying interfaces for private actions would improve predictability and investor outcomes without weakening administrative deterrence.

Type of the article: Research Article

Abstract
The relevance of this study lies in the importance of making accurate investment decisions and reliable earnings forecasts, especially given the role of big data in financial analysis. The purpose of the study is to investigate the influence of electronic business (e-business) information on the forecasting of future earnings among listed industrial firms in Jordan, and to examine the moderating effect of big data on this relationship. E-business information consists of forward-looking, financial, and sustainability disclosures. Data from 180 firm-years of industrial firms listed on the Amman Stock Exchange between 2017 and 2022 were analyzed by using multiple regression models. The results show that more e-business disclosures are positively associated with accurate future earnings expectations. Specifically, forward-looking, financial, and sustainability disclosures indicate a strong statistical relationship between disclosure quality and earnings predictability. Moreover, adding big data as a moderating variable significantly strengthened the predictive power of the relationships, where the adjusted R² increased by more than 30 percentage points. This notable enhancement provides new empirical evidence of the value added by big data analytics in improving the relationships between e-business information and the forecasting of future earnings in industrial companies. The study concludes by providing practical insights for investors, policymakers, and corporate managers, highlighting the joint roles of e-business transparency and big data technologies in enhancing financial prediction and supporting strategic decision-making.