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.

Type of the article: Research Article

Abstract
In Cambodia’s emerging economy, characterized by a large informal sector and tax compliance challenges, a successful tax amnesty program could strengthen financial markets by enhancing transparency and boosting investor confidence. The purpose of this study is to investigate how tax amnesty programs can improve investor confidence, regulatory trust, and access to finance, thereby promoting capital market participation. Using a quantitative approach, the study employs Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze data from 224 businesses. The findings reveal that participation in the tax amnesty program leads to significant improvements in financial transparency, investor confidence, regulatory trust, and access to finance. Moreover, increased investor confidence, desire to access finance, and regulatory trust were found to significantly influence companies’ intentions to list on the stock market. The study highlights the critical role of tax amnesty in preparing businesses for stock market listings and supporting capital market development, providing valuable insights for policymakers seeking to attract investment through regulatory reforms. The study contributes to the expanding literature on the importance of tax compliance and market development, offering insights into how tax forgiveness can act as a catalyst for economic growth and enhance capital market development.

Acknowledgment
This research was supported by the CamEd Business School research grant.

Type of the article: Research Article

Abstract
Beta serves as a critical measure in portfolio optimization, capturing systematic risk and underpinning numerous asset-pricing frameworks. The present study examines the performance of beta-based portfolios of NSE 500 firms over 27 years using technical trading strategies – Simple Moving Average (SMA) and Exponential Moving Average (EMA) – across short-to-long-time horizon windows. Portfolios are constructed based on beta deciles to examine the relationship between systematic risk exposure and trading-rule effectiveness. The study incorporates transaction costs, emphasizing how trading frequency across five window lengths (5, 10, 20, 50, and 100 days) affects net returns and multiple risk-adjusted performance metrics. The findings indicate that technical trading strategies are more effective than the buy-and-hold (BH) strategy for beta portfolios. The SMA and EMA strategies demonstrate substantial positive alphas before transaction-cost adjustments. Mid-beta portfolios consistently show high returns and statistically significant alphas (ranging from 7% to 14% for SMA and EMA), confirming that technical strategies are most effective in beta portfolios with moderate systematic risk exposure. Further, transaction costs erode much of the excess returns generated by shorter-lag strategies. Despite this, selected mid-beta portfolios continue to generate net positive alpha (ranging between 6% to 11% for 20 and 50-day SMA/EMA) at longer windows, highlighting their resilience and practicality in real-world scenarios. These findings are further validated using various risk-adjusted performance metrics.

Type of the article: Research Article

Abstract
Investment efficiency is crucial for investors and creditors. This study examines whether managers of publicly traded manufacturing firms exhibit sunk-cost bias in capital expenditure decisions. Economic theory dictates that sunk costs – unrecoverable past expenditures – should be ignored in forward-looking decisions. Depreciation expense, which allocates historical capital expenditures under GAAP, represents such a sunk cost, yet limited empirical research tests whether it systematically influences capital replacement decisions.
Using regression analysis with Compustat data for U.S. manufacturing firms from 2003–2024, we examine whether capital expenditures are predicted by past depreciation expenses, controlling for established economic determinants including Tobin’s Q, cash flow, growth opportunities, and firm characteristics. Manufacturing firms are selected due to their heavy reliance on capital assets and substantial depreciation expenses.
The results provide strong evidence of sunk-cost bias: higher depreciation expense predicts significantly larger future capital investments, controlling for economic fundamentals. The depreciation coefficient is positive (0.0158) and highly significant (p < 0.01), contributing meaningfully to explained variance beyond traditional predictors. These findings suggest managers allow accounting allocations to influence economic decisions, affecting optimal asset replacement timing.
The findings alert investors that managerial capital allocation may be suboptimal and influenced by accounting measures rather than purely economic considerations. This bias may cause over-investment when depreciation is high and under-investment when depreciation is low, potentially affecting firm value and competitive positioning.

Type of the article: Research Article

Abstract
Gender diversity fosters robust and effective corporate governance mechanisms by introducing diverse perspectives and signaling progressive organizational values. Recognizing the growing significance of inclusive leadership structures, this study examines the characteristics of corporate boards of companies listed on the Bombay Stock Exchange (BSE) and analyzes the impact of women on corporate boards on their financial performance. Drawing on panel data from 379 non-financial firms indexed in 500 BSE-listed companies between 2010 and 2020 the paper employs instrumental variable (IV) regression analysis to explore the relationship between gender diversity and key performance indicators, namely return on equity (ROE), return on sales (ROS), and return on assets (ROA). The empirical evidence indicates a continued predominance of men on Indian corporate boards; however, greater gender representation is associated with significant improvements in firm performance. Gender-diverse boards enhance organizational efficiency and profitability, underscoring the economic value of inclusion. These results suggest that strengthening board diversity constitutes a strategic mechanism for improving financial outcomes. The study supports the theoretical framework of resource dependency and agency theory, which asserts that gender balance improves business success. The study’s emphasis on Indian firms within a specific timeframe limits the generalizability of its findings across other emerging economies. The results underscore the strategic significance of gender diversity, offering valuable evidence for policymakers, regulators, and corporate leaders to promote greater female board participation. The research contributes to the limited literature on board diversity in emerging economies, emphasizing its economic and organizational value.

Type of the article: Research Article

Abstract
The application of artificial intelligence (AI) in enterprises presents new opportunities for growth in their market value. This study aims to evaluate the impact of AI applications in enterprises on the growth of enterprise market value and the transmission mechanism of these impacts. Using an enterprise AI application level as the independent variable, a regression model is constructed to analyze the long-term and short-term market value of the enterprise. This study uses relevant data from Chinese listed companies from 2014 to 2023 for analysis. Findings show that for every 1% increase in AI application level, the enterprise market value increases by 0.03% and the enterprise value multiple increases by 0.44%. Increasing the level of AI application in enterprises will enhance their ability to implement low-carbon measures and investors’ expectations of corporate profits, thereby increasing the market value of enterprises. High-quality talent within the enterprise and market share can enhance the impact of these two mechanisms. The application of AI in enterprises has different impacts on different industries and companies of different sizes. This study provides new empirical evidence for enterprise market valuation.

Acknowledgments
This research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (IRN BR28713593 “Sustainable development of Kazakhstan’s economy in the context of new сhallenges: foresight, strategies and scenarios of modernization, institutions”).

Type of the article: Research Article

Abstract
This study investigates the influence of dividends, cash flow, and earnings on equity valuation within publicly traded companies in Nigeria from 2019 to 2023, a timeframe characterized by macroeconomic volatility, currency devaluation, and regulatory changes. Utilising panel data from 22 enterprises across various industries and employing fixed effects regression models, this study aims to determine which financial determinants have the most substantial impact on equity valuation. The research results provide evidence of earnings having a significant positive relationship with equity valuation and a strong correlational figure (coefficient = 3.52, p < 0.01). This proves that they are one of the major factors affecting valuation. On the other hand, free cash flow and dividend payments had a negative but statistically finite impact (p > 0.05), indicating that the impact on the investor’s valuation decision is weakened during times of economic uncertainty. Moreover, equity value also positively depends on firm size. Additionally, the value of R-squared, 0.98 in the fixed effects model, shows a high level of dependability of the analysis conducted. Based on these findings, the study suggests that to improve market valuation, Nigerian firms should focus on long-term, sustainable earnings growth and strategic reinvestment, rather than dividend payments. These results provide important insight for policymakers, business leaders, and investors who struggle with emerging market valuation in countries like Nigeria.

Type of article: Research Article

Abstract
Throughout 2024, interest rate changes and dividend announcements have become crucial information for investors in determining their investment portfolios. These two factors have different impacts on stock price movements in the market. This study aims to examine weak-form market efficiency based on these factors. The sample consists of companies that regularly announce and distribute dividends, as they are considered to attract significant investor attention. To test market efficiency, this study applies the runs test and variance ratio test to analyze time series data of stock returns adjusted for risk-free rates. The findings indicate that the Indonesian stock market in 2024 is relatively efficient, particularly in its weak form. The implication is that interest rate changes and dividend announcements play a crucial role in determining market efficiency. This condition is supported by rational investor behavior in allocating their investments between stocks and risk-free assets, assuming that dividends remain sufficiently profitable. This study contributes to the development of the efficient market hypothesis, particularly regarding the simultaneous entry of interest rate and dividend announcement information into the market. However, this study is limited by the sample criteria within a specific period. Therefore, future research is expected to expand the scope of analysis by incorporating additional factors.

Acknowledgment
The authors would like to express their sincere gratitude to Universitas Sam Ratulangi for the financial support provided for this study.

Type of the article: Research Article

Abstract
Fintech can bridge the financial gap between urban and rural areas. Yet, its impact on rural development in developing nations remains understudied. This paper analyzes the impact of fintech adoption by rural households and small and medium enterprises (SMEs) in Jordan, a developing country. Employing a mixed-methods approach, the study analyzed data from 242 survey participants and conducted interviews with fintech policymakers and service providers. The sample covered rural areas with no banking infrastructure but emerging digital adoption, thus refining the findings to the greater Jordan rural area. The findings indicate that the adoption of fintech markedly improves financial inclusion and rural economic development, especially access to credit, digital payments, and entrepreneurship. The qualitative data provide further insights into barriers to digital economic growth, including inadequate infrastructure, low digital literacy, and a lack of regulatory framework. Overall, the study demonstrates that fintech adoption can significantly transform rural areas of Jordan, provided they have the right institutional and digital infrastructure.

Type of the article: Research Article

Abstract
As renewable energy is now central to decarbonization and energy security, understanding how financial indices, green bonds, and venture capital steer capital flows has become crucial. This article aims to conduct a comprehensive bibliometric and science-mapping analysis of scholarly research on financial indices, green bonds, and venture capital in the context of renewable energy, to reveal the intellectual structure, thematic trends, and research gaps most relevant to investment management and financial innovations. Based on a Scopus dataset of 299 articles published between 1991 and 2023, the study employs Bibliometrix in R, standard performance metrics, and network-mapping techniques for co-authorship, co-citation, and keyword co-occurrence analysis. The results indicate a marked acceleration in publication activity after 2012, accompanied by rising citation rates and the emergence of a distinct research domain at the intersection of renewable energy and finance. This domain is characterized by a small core of journals and authors that account for a disproportionately large share of output and impact. Country analysis reveals a strong dominance of advanced economies, particularly the United States, China, the United Kingdom, Germany, Australia, and Italy. At the same time, many regions with substantial renewable energy potential remain underrepresented. Thematic and conceptual mapping shows that “investments” form the central organizing concept of the field; financial indices and stock-market linkages between fossil and clean-energy assets constitute a mature, densely connected cluster; green bonds and sustainable finance appear as a rapidly expanding frontier; venture capital and early-stage finance, though still peripheral, are gaining prominence in connection with policy stability, innovation support and market design.

Acknowledgments
The project was funded by the European Union’s Horizon 2020 Research and Innovation Programme based on the Grant Agreement under the Marie Skłodowska-Curie funding scheme No. 945478 - SASPRO 2, Ministry of Education, Research, Development and Youth of the Slovak Republic and the Slovak Academy of Sciences (VEGA 2/0003/23), and Ministry of Education and Science of Ukraine (0123U101920), and the project 101127491-EnergyS4UA-ERASMUS-JMO2023-HEI-TCH-RSCH. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or European Education and Culture Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.

Type of the article: Research Article

Abstract
Board characteristics play a critical role in shaping corporate transparency and preventing financial misreporting in emerging markets. This study investigates how the independence, size, gender diversity, and meeting frequency of boards of directors influence the likelihood of financial statement fraud among listed firms in Vietnam, while also examining the moderating effect of audit committees. Using a balanced panel dataset of 2,584 firm-year observations from 323 non-financial companies listed on the Ho Chi Minh City and Hanoi Stock Exchanges during 2015–2022, logistic regression analysis (Stata 17) was used to test the proposed hypotheses. The results show that board independence and board size significantly reduce the likelihood of financial statement fraud, aligning with agency and resource dependence theories. Although gender diversity has no significant effect in the baseline model, it becomes negatively significant when the audit committee is included, indicating that effective oversight enhances the governance role of diverse boards. Additionally, the previously positive relationship between meeting frequency and fraud becomes insignificant when an audit committee is present, confirming its neutralizing effect. These findings highlight that the audit committee is a vital governance mechanism that enhances monitoring quality, reinforces accountability, and promotes ethical behavior. The study provides important insights for regulators and firms in Vietnam by emphasizing the need to strengthen audit committee independence, promote board diversity, and advance professional governance to reduce fraudulent reporting and support sustainable corporate integrity in emerging economies.

Type of the article: Research Article

Abstract
The article examines the interdependence between a country’s investment attractiveness and its level of debt security, as debt risks significantly shape foreign investors’ decisions and determine the stability of capital flows. The study aims to quantify the impact of debt sustainability on investment activity using the proposed approach, which allows for analyzing this dependence under both normal macroeconomic conditions and crisis environments, including war-related shocks. The empirical assessment is conducted on a sample of six countries – Poland, the Czech Republic, Slovakia, Hungary, Türkiye, and Ukraine – which share structural characteristics such as economic openness and reliance on external financing, yet differ substantially in their debt trajectories. For each country, an analytical model of investment attractiveness is constructed based on the integrated debt security index and key macroeconomic indicators. The results reveal pronounced cross-country differences. In Poland, the Czech Republic, and Slovakia, debt sustainability demonstrates a stable positive effect on investment activity, consistent with their moderate debt burdens and macroeconomic stability. Hungary and Türkiye show a weaker and more volatile relationship, reflecting higher sensitivity to debt risks and unstable macro-financial conditions. In Ukraine, the crisis (war-related) shock leads to a significant decline in investment attractiveness, offsetting the positive influence of improvements in individual debt or macroeconomic indicators. The obtained models can be applied for comparative analysis, evaluation of debt policy outcomes, and scenario-based forecasts of investment recovery under different economic and crisis conditions.

Acknowledgment
This study is funded by the Ministry of Education and Science of Ukraine and contains the results of projects No. 0121U112685 “Economic foundations of debt security management in Ukraine under war conditions”.

Type of the article: Research Article

Abstract
Extensive research has been conducted on the global effects of the US unconventional monetary policy shock on capital flows in emerging markets. However, there is limited empirical evidence on the transmission channels of capital flows in emerging bond markets. This study examines it by analysing capital flows across 45 emerging bond markets from 2009 to 2023. Contemporaneous shock transmission is examined using the contemporaneous impact matrix, and dynamic shock transmission is assessed using the impulse response function of the structural vector autoregression (SVAR) model. All variables in this study are standardised to account for differences in scale within the model. The pairwise correlation coefficient matrix indicates that multicollinearity is not a concern for parameter estimates in this model. The ADF-Fisher Chi-square unit root test result reveals that all variables are stationary in this model. The contemporaneous coefficient matrix results indicate that changes in the US term spread serve as the contemporaneous transmission channel through which US Treasury bond purchase and US MBS purchase shocks positively affect capital flows in emerging bond markets. The impulse response function indicates that changes in the global financial cycle serve as a dynamic transmission channel through which US MBS purchase shocks affect capital flows in emerging bond markets. Moreover, changes in the US mortgage spread serve as the dynamic transmission channel through which US Treasury bond purchases and US MBS purchases affect capital flows in emerging bond markets.

Acknowledgment
The author expresses sincere gratitude to Assistant Professor Dr Nupur Moni Das, Faculty of Management Studies, Sri Sri University, India, for her careful proofreading of the manuscript and her valuable academic insights.

Type of the article: Research Article

Abstract
This study aims to systematically analyze and synthesize the existing scientific literature on the determinants of long-term capital flows, particularly Foreign Direct Investment (FDI) into China, with a focus on how prior empirical studies examine the roles of trade openness, infrastructure development, institutional quality, and financial modernization. Using the PRISMA framework, the study systematically reviewed 114 peer-reviewed articles published between 1990 and 2025 to identify recent patterns, evaluate the impact of core sources, and highlight thematic trends in academic literature. The finding of this study indicates a clear upward trend in article production, with a significant jump from 124 publications in the UK to 1,855 in China, with China emerging as the leading contributor and host to several highly influential articles. The Journal of International Trade/Economics is the leading source with 109 documents, followed by China Economic Review (63), Research in Emerging Markets Finance and Trade (45), and Economic Modeling (36). A total of 780 authors contributed to these works, with 2.96 co-authors per document on average, but international co-authorship was limited. This study also highlighted FDI as a key theme with 254 counts following Economic Growth/Development (181 mentions) and Trade (146), which indicates a strong research interest in the role of capital flows and macroeconomic performance in the Chinese context. This study analyzed 639 articles for the bibliometric review, with a primary focus on FDI. However, other significant components of long-term capital flows, such as portfolio investment, external debt, and remittances, were not adequately covered, representing a key limitation of this study. Additionally, the direction of causality between FDI and China’s economic growth was not covered by this study.

Type of the article: Research Article

Abstract
This study examines the effect of two-tier board characteristics on firm value, with corporate reputation, proxied by Return on Assets (ROA), as a mediating variable. The research focuses on the Indonesian two-tier governance context, where the Board of Commissioners supervises management under concentrated ownership structures. The study uses panel data from 333 firm-year observations of non-financial companies listed on the Indonesia Stock Exchange (IDX) and included in the Kompas 100 Index over the 2019–2023 period. Data were analyzed using panel regression models with the Sobel test applied to evaluate the mediating effect. The results reveal that among the six examined board attributes, namely independence, size, tenure, education, meeting frequency, and age, only board meeting frequency shows a significant positive effect on firm value (p < 0.01). Board size positively affects ROA, indicating that a larger supervisory board enhances operational efficiency, while board education exhibits a negative influence, suggesting a potential mismatch between academic qualifications and practical business needs. However, ROA does not significantly affect firm value (p > 0.05), indicating that corporate reputation, when proxied by financial performance, fails to mediate the relationship between board characteristics and firm value. These findings underscore the crucial role of board meetings as a formal mechanism for effective supervision in Indonesia’s two-tier system. Moreover, they highlight that financial reputation alone is insufficient to drive firm value in emerging markets where direct governance mechanisms are more influential.

Acknowledgment
This research was conducted without financial support from any public, commercial, or nonprofit funding agency.

Type of the article: Research Article

Abstract
This study examines the effect of audit committee chair experience on accounting conservatism in Jordanian publicly listed firms, addressing a key gap in corporate governance literature in emerging markets. The analysis is based on 340 firm-year observations from 68 non-financial service and industrial companies listed on the Amman Stock Exchange during 2018–2022. Firms were selected from an initial population of 169 companies; financial institutions were excluded due to sector-specific regulations, and others were removed for delisting or insufficient data. Accounting conservatism is measured using Basu’s asymmetric timeliness model. Audit committee chair experience is captured along two dimensions: accounting experience and supervisory experience. The model includes controls for firm size, firm age, profitability, board size, audit committee size, and the COVID-19 pandemic years. The findings show that both accounting experience and supervisory experience significantly strengthen accounting conservatism. These results suggest that audit committee chairs with relevant experience enhance governance effectiveness and mitigate opportunistic financial reporting. This study makes a novel contribution by providing the first empirical evidence on the direct impact of an audit committee chair’s supervisory and accounting experience on accounting conservatism.