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.