Issue #2 (Volume 22 2025)

Economic policy uncertainty has a profound impact on firms’ investment decisions, mainly in terms of increased risk and uncertainty for firms when planning future investments. This study aims to explore the impact of corporate economic policy uncertainty on corporate investment, as well as how corporate social responsibility disclosure moderates the relationship between economic policy uncertainty (EPU) and corporate investment. The analysis uses a sample of Chinese listed companies from 2010 to 2022, including 33,791 observations. The study uses ordinary least squares (OLS) regression with clustered standard errors. The basic and robust regression empirical results show that economic policy uncertainty has a negative impact on corporate investment. However, corporate social responsibility plays an important moderating role between them. The two-stage least squares method (2SLS) is used to solve the endogeneity problem of reverse causation. The heterogeneity results show that economic policy uncertainty significantly dampens business investment, while corporate social responsibility (CSR) is effective in mitigating this negative effect, especially among non-state-owned and low-cash-flow firms, where this moderating effect is more pronounced. The study concludes that as corporate social responsibility disclosure enhances information transparency and investor confidence, companies should prioritize CSR programs that ultimately help companies remain competitive and attractive to investors in volatile markets. Meanwhile, this also highlights the strategic importance of CSR in mitigating external risks, such as those presented through volatile economic policies.

Financial well-being refers to how individuals perceive their financial security and ability to meet short-term and long-term financial goals. It involves feeling financially stable, having control over one’s finances, being satisfied with one’s financial situation, and handling unexpected events without excessive stress. This study examines the impact of financial literacy, financial behavior, financial stress, and religiosity on financial well-being, with gender as a moderating factor. A quantitative research approach was used, with the participants in this study consisting of permanent lecturers at a prestigious private university in North Sumatra, Indonesia, who are male with more than 1 (one) year of service. Due to the lack of available data regarding the exact number of faculty members, the sample size was calculated using Lemeshow’s formula, which is appropriate for use when the population is unknown. This resulted in a sample size of 385 permanent lecturers. The sampling method was accidental, and the data were analyzed using the SEM-PLS approach with SmartPLS software. The results show that religiosity, financial behavior, and financial literacy positively and statistically significantly affect financial well-being (p < 0.05). In contrast, financial stress, though negative, does not have a significant impact (p > 0.05). Additionally, gender does not moderate the relationship between religiosity, financial behavior, and financial stress on financial well-being (p > 0.05), but gender moderates the effect of financial literacy on financial well-being (p < 0.05).

Acknowledgment
They financed this study under the Fundamental Research - Regular (PF-R) area. Thank you, Ministry of Education, Culture, Research and Technology of the Republic of Indonesia 2024. This is also possible thanks to the Institute for Research and Community Service (LPPM) and the Faculty of Economics and Business Leadership at Universitas Muhammadiyah Sumatera Utara.

Cryptocurrencies have attracted significant attention due to their high risk, extreme volatility, regulatory controversies, and scandals. Investors and policymakers are drawn to them for their potential to enhance diversification and deliver high returns. This study examines the impact of incorporating cryptocurrencies into investment portfolios, focusing on their ability to improve risk-adjusted returns and diversification. A rolling asset allocation strategy employing the maximum Sharpe Ratio within a Markowitz framework was applied to weekly data from 2018 to April 2024. The analysis compares two unconstrained portfolios and two constrained portfolios, which impose a concentration limit on cryptocurrency investments. Results reveal that in 70% of the rolling periods examined, portfolios with cryptocurrency allocations outperformed non-cryptocurrency portfolios in terms of Sharpe Ratios. However, the heightened volatility of cryptocurrencies significantly increased portfolio risk, with annualized weekly standard deviations ranging from 18% to 25%, compared to 12% to 15% for portfolios without cryptocurrency exposure. These findings illustrate the dual nature of cryptocurrencies: they can act as both a source of instability and an opportunity for diversification. The study underscores the necessity of a cautious and strategic approach to incorporating cryptocurrencies into investment plans, given their inherent risks and unpredictable behavior.

The utilization of business intelligence has become increasingly crucial for small and medium-sized enterprises (SMEs) to remain competitive amid rapid advancements in information technology and heightened business uncertainty. This study analyzes the influence of business intelligence on the financial performance of SMEs, focusing on the mediating role of financial ambidexterity. Additionally, it examines how financial access, financial availability, and financial information quality enable effective business intelligence adoption. Data were collected from a survey of 233 SME managers in Central Java, Indonesia, conducted between December 2023 and February 2024. Smart PLS 3 was used to analyze the data and test the proposed hypotheses. The findings revealed that business intelligence significantly affects financial performance (β = 0.655, p = 0.044). Furthermore, the indirect effect analysis confirmed that financial ambidexterity plays a crucial role in mediating the relationship between business intelligence and financial performance (β = 0.531, p = 0.018). Additionally, the results confirmed that financial resources positively influence business intelligence implementation, with financial availability (β = 0.243, p = 0.000), financial information quality (β = 0.335, p = 0.016), and financial access (β = 0.768, p = 0.025) all showing significant effects. This study highlights the critical role of business intelligence and financial ambidexterity in enhancing financial performance and underscores the importance of financial resources for successful business intelligence implementation in SMEs.

This paper investigates the determinants of working capital management in the Indian hotel sector, focusing on factors influencing financial efficiency and sustainability. Using a dynamic panel model, the study analyzes data from 67 publicly listed Indian hotels over ten years from 2013 to 2022. The data were obtained from the Refinitiv database, the World Bank, and the Sustainable Development Index. The system generalized method of moments estimator was applied to ensure the robustness of results. The study results indicate that firm-specific factors, including return on assets, leverage, asset tangibility, and board structure, significantly impact working capital needs. Additionally, macroeconomic elements such as GDP play a crucial role in shaping working capital management. A notable positive relationship was identified between return on assets and working capital requirements. Conversely, leverage exhibited a strong negative association with working capital needs. These results emphasize the importance of both internal financial characteristics and broader economic conditions in effective working capital management. The study highlights the importance of integrating governance and economic conditions into working capital management strategies.

Sharia financial literacy pertains to individuals’ capacity to manage their finances, partake in Sharia-compliant agreements, and make investments based on Islamic tenets for long-term prosperity. This study explores the relationship between Sharia financial literacy, financial stress, financial behavior, and financial well-being among Islamic university students in Medan, Indonesia. Three hundred seventy-eight (378) students from various regions of Medan, Indonesia, were used as the research sample. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Telegram) in which the Google Forms link is shared. The Likert scale measures indicators in responses to statements and questions. The analysis was conducted using SEM with PLS 3.0 software. The findings show a significant positive effect of Islamic financial literacy on financial behavior and well-being (p < 0.05). However, financial stress does not significantly impact financial behavior and financial well-being (p > 0.05). In addition, financial behavior positively affects financial well-being among university students (p < 0.05). This study also demonstrates that Islamic financial literacy indirectly improves financial well-being through its influence on financial behavior (p < 0.05). However, financial stress does not indirectly affect financial well-being through financial behavior (p > 0.05).

Acknowledgment
This research was funded in 2024 by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia under the Basic Research – Regular (PF-R) category. Thanks also go out to the different tiers of administration at Universitas Muhammadiyah Sumatera Utara, such as the administration of the School of Economics and Business and the staff at the Institute for Research and Community Service (LPPM).

By leveraging supply chain finance (SCF), businesses can optimize their cash flow and strengthen their supply chain relationships, improving overall performance. By effectively harnessing this strategy, companies can dramatically enhance cash flow, strengthen supplier relationships, and propel overall efficiency and growth across their supply chains. The study considered 34 years, from 1990-91 to 2023-24, for India's personal and home care product industry companies, which is a part of the consumer goods industry and contributes as the fourth largest sector in the country's GDP. The study emphasizes the development of an empirical model on the impact of SCF on financial performance parameters like net profit margin (NPM), return on equity (ROE), return on capital employed (ROCE), and return on assets (ROA). The study applied an ordinary least square regression method to establish the relationship. Four empirical models were developed where Model 1 and Model 2 indicate that the accounts receivable turnover ratio (ART) emerged as a key SCF parameter with a statistically significant correlation to firm performance, particularly influencing NPM and ROE. The results of Models 3 and 4 reflect that ATR does not significantly impact the ROCE and ROA of firms. The study results also show that the SIZE variable positively influences financial performance, while LEV (Leverage) has a negative influence. This study compellingly illustrates the connection between SCF and a firm’s economic success, providing actionable insights for stakeholders eager to sharpen their strategic approaches. By prioritizing SCF, industries can unlock significant competitive advantages and drive sustainable growth.

Corporate social responsibility (CSR) disclosure plays a pivotal role in expanding investment opportunities, enhancing operational efficiency, and strengthening transparency and accountability to meet stakeholder demands. This study investigates the determinants influencing CSR disclosure’s extent and quality, aiming to provide a comprehensive understanding of how organizational, institutional, and stakeholder-driven factors shape transparent reporting practices. Using time-series data spanning six years (2017–2022) collected from 200 Vietnamese-listed enterprises annually, this research employs the ordinary least squares (OLS) method for quantitative analysis. The findings reveal that board independence, awards, company size, and financial performance significantly and positively influence both the extent and quality of CSR disclosure. Conversely, industry sensitivity negatively impacts CSR disclosure, while financial leverage exhibits mixed effects – positively affecting the extent but negatively influencing the quality of disclosures. Notably, company size emerges as the strongest determinant of CSR disclosure, underscoring the critical role of larger firms in driving transparent reporting practices. In contrast, industry sensitivity demonstrates the weakest effect on the extent of CSR reporting, suggesting that internal firm characteristics may outweigh industry-specific pressures. Based on these findings, the study recommends that Vietnamese regulatory bodies prioritize company size over industry type when designing CSR disclosure policies. This study provides valuable insights into the evolving dynamics of CSR disclosure in emerging markets like Vietnam, highlighting the need for context-specific strategies to enhance corporate accountability and sustainable development.

Acknowledgment
The author thanks everyone who helped make this study possible.

Common market anomalies tested in developed markets have been considered adequate to explain behavior there. However, the different characteristics in emerging markets such as Indonesia make traditional asset pricing models inadequate. Furthermore, this study highlights the importance of integrating company fundamentals and investor sentiment. This study enriches the asset pricing method in Indonesia and supports the theory of market signals and anomalies. This study analyzes the moderating role of investor sentiment on the relationship between profitability premium, investment premium, and stock returns in one of the emerging markets, Indonesia. The study uses panel data from 93 companies in Indonesia from 2013 to 2023. Portfolio construction with the five-factor model is used. The analysis method used is moderated regression analysis or interaction testing. The study results show that profitability premium and excess return interact significantly with investor sentiment at the 1% level, so investment premium and excess return interact significantly with investor sentiment at the 1% level. This study shows that investor sentiment plays a role in strengthening the premiums for profitability and investment. The findings of this study indicate that considering a company’s financial condition and sentiment level is essential for investors and investment managers in implementing long-term stock investment analysis strategies in emerging markets such as Indonesia. This study can support market stability policies, such as tighter supervision, when negative sentiment has the potential to cause a decline in stock prices that is disproportionate to fundamentals.

Acknowledgments
The authors would like to thank the Indonesian Capital Market for providing data supporting this study’s results. Thanks also to the promoter, co-promoter, and reviewer for their suggestions and input, which were very helpful in preparing this article. In addition, the family has provided prayers and patience in supporting the author in carrying out this research. This research was supported by funding from Universitas Syiah Kuala.

The financial literacy and culture of small and medium-sized enterprises (SMEs) significantly influence their financial stability, decision-making processes, and long-term sustainability. This study analyzes the relationship between financial literacy, company size, and their impact on access to financing and loan repayment performance among Hungarian SMEs from 2019 to 2023, an emerging market economy characterized by continuous economic challenges. Using a partial linear regression model and mediation analysis on a representative dataset of approximately 2,500 SMEs evenly distributed across size categories over five years, the study finds that financial management has a statistically significant effect on access to funding (β = 0.217, p < 0.001 in 2023). Financial planning also plays a crucial role in financial decisions, with a positive correlation strengthening over time (β = 0.181, p < 0.001). The mediating role of company size is confirmed across all models, with Sobel test results indicating a significant indirect effect (z = 5.093, p < 0.001 for financial management impact on funding access). By 2023, medium and larger SMEs demonstrated improved financial decision-making and increased financing opportunities, whereas smaller enterprises continued to struggle, emphasizing the need to enhance their financial strategies. The findings highlight the importance of financial literacy development to ensure SME sustainability, improve access to external financial resources, and support broader economic growth.

Acknowledgment
“Project no. TKP2021-NKTA-51 has been implemented with the support provided by the Ministry of Culture and Innovation of Hungary from the National Research, Development and Innovation Fund, financed under the TKP2021-NKTA funding scheme.” Made in Széll Kálmán Public Finance Lab of Ludovika University of Public Service, Budapest.

This study examines the relationship between CEO overconfidence and discretionary deferred tax assets (DTAs) using a method that separates DTAs into discretionary and non-discretionary components. Based on data from publicly listed companies in South Korea between 2017 and 2021, the study analyzes how overconfident CEOs influence the recognition of DTAs. Under K-IFRS 1012, DTAs should be recognized only when there is sufficient future taxable income with a high probability; however, the lack of explicit guidelines on what constitutes “high probability” leaves room for subjective interpretation by management. Overconfident CEOs, driven by excessive optimism and upward-biased forecasts of future cash flows, may over-recognize DTAs. The main analysis, incorporating industry and year-fixed effects, reveals a positive relationship between CEO overconfidence and discretionary DTAs (coef = 0.003, p-value < 0.05). This tendency is more pronounced in firms with higher marginal tax rates compared to those with lower rates (coef = 0.004, p-value < 0.005) and in firms with lower levels of outside directors (coef = 0.002, p-value < 0.1). Additionally, analyses using alternative variables for CEO overconfidence and discretionary DTAs, as well as propensity score matching (PSM) models, yield consistent results. Overall, this study underscores the critical role of managerial characteristics in shaping accounting judgments and decisions. By providing empirical evidence on the impact of cognitive biases such as overconfidence on financial reporting quality, the findings contribute to the broader discourse on corporate governance and offer practical implications for policymakers, investors, and regulators.

The adoption of digital financial tools improves financial efficiency, transparency, and governance. However, family-owned businesses in Jordan adopt these tools at a lower rate than non-family businesses, potentially limiting their competitiveness. This study examines the extent of digital adoption, its impact on financial management, and the role of generational involvement.
A survey of 366 businesses (262 family-owned and 104 non-family) across six industries was analyzed using multi-group analysis. Family-owned businesses reported a 31.2% improvement in financial management after adoption, compared to 19.6% in non-family businesses (p = 0.039). Generational involvement increased adoption by 26.5% in family-owned businesses versus 10.8% in non-family businesses (p = 0.015). Cultural resistance hindered adoption in family-owned businesses by 4.5% more than in non-family businesses (p = 0.028). Business size influenced adoption similarly (10.2% vs. 10.1%, p = 0.460). Financial management improvements were slightly lower in family-owned businesses (76.6%) than in non-family businesses (78.2%, p = 0.532). Adoption rates in family-owned businesses were 11.7% lower (p = 0.039). The interaction of business type and generational involvement contributed to a 22.0% increase in adoption (p < 0.01).
These results underscore the importance of phased adoption, digital literacy programs, and intergenerational collaboration in accelerating financial digitalization within family-owned businesses. Addressing cultural resistance is essential for ensuring long-term financial sustainability and competitiveness in Jordan’s evolving economy.

Capital inflow into local bond markets helps countries with infrastructure financing, funding fiscal deficit, enhancing bond market liquidity, and diversifying investment portfolios globally. This study aims to assess the impact of institutional quality and capital account openness on capital inflow into Asian local bond markets for the period 2002–2023. For reflecting Asian bond markets, seven countries, namely, China, Malaysia, South Korea, Japan, the Philippines, Indonesia, and Thailand, have been considered. The rule of law, regulatory quality, control of corruption, voice & accountability, political stability, and government effectiveness indices are the various proxies considered in this study to measure the different aspects of institutional quality. Further, the Chinn-Ito index is employed to measure capital account openness. Fixed effect, random effect, and pooled data ordinary least squares are employed as different forms of panel data estimation methods in this study. Moreover, Breusch-Pagan LM and Hausman tests are performed to select the most efficient estimation method. This study reveals that the rule of law, regulatory quality, and control of corruption have a positive influence on capital inflow at a 5% significance level and political stability at a 1% significance level. In contrast, capital account openness has a negative impact at a 1% significance level. However, neither voice & accountability nor government effectiveness have a significant influence over capital inflow. These findings suggest improving the rule of law and regulatory quality, creating policies for political stability, stringent acts against corruption, and controlling capital account openness to encourage capital inflow into local bond markets.

Mandatory and voluntary segment disclosure is crucial for shareholders to assess a firm’s financial health and make informed investment decisions. Given the importance of disclosure to investors, this study investigates the extent of voluntary and mandatory segment disclosure of listed companies in Nigeria from 2015 to 2022. Using descriptive analysis, specifically a recursive transition matrix approach, this study tracked yearly changes in mandatory and voluntary segment disclosure for 85 companies listed on the Nigerian Exchange Group. The findings revealed that mandatory segment disclosure has a mean score of 11.3, which is notably higher than the mean score of 6.86 for voluntary segment disclosure. Also, the recursive transition matrix revealed a notable increase in companies transitioning from lower to higher levels of mandatory segment disclosures. For instance, 87.5% of companies were at Level 1 (Low-level disclosure) in 2016, but this dropped to 35.4% by 2022, showing a shift to higher levels. Levels L2, L3, and L4 remained relatively stable, indicating sustained improvements. This trend reflects the impact of regulatory changes on the increased transparency of companies in Nigeria. For voluntary segment disclosures, in 2016, 72.5% of companies were at L1, 25% moved to L2, and 2.5% advanced to L3. By 2022, the percentages were 41.1% at L1, 34% at L2, and 24.9% at L3. Although some companies have progressed, many continue to maintain low levels of voluntary segment disclosure. The study concluded that listed companies in Nigeria need to improve their voluntary segment disclosures to enhance transparency and address investors’ concerns about inadequate segment disclosure practices among firms.

Agricultural enterprises play a crucial role in China’s rural revitalization strategy, but persistent financing constraints hinder their innovation potential. This study examines the impact of digital inclusive finance on agricultural enterprise innovation, with a particular focus on the mediating role of financing constraints. Using panel data from agricultural enterprises listed on the Shanghai and Shenzhen Stock Exchanges (2014–2023), this study employs fixed-effect regression models and mediation analysis to explore these relationships. The empirical findings reveal that digital financial inclusion significantly enhances innovation levels in agricultural enterprises (β = 0.5127, p < 0.01). Additionally, digital financial inclusion reduces financing constraints (β = –0.0385, p < 0.01), confirming that improved access to digital financial services lowers borrowing costs and increases credit availability. Mediation analysis demonstrates a partial mediation effect, as the coefficient of digital financial inclusion on innovation decreases when financing constraints are included in the model (β = 0.5057). Subgroup analyses show that SMEs, state-owned enterprises, and non-coastal firms benefit the most from digital financial inclusion in China. These findings have important policy and managerial implications. Policymakers should strengthen digital financial infrastructure in rural areas and promote financial inclusion policies to support agribusinesses. Financial institutions should expand digital financial services, such as fintech-driven credit assessments and online lending platforms, to enhance agricultural innovation. Additionally, agricultural enterprises should leverage digital financial tools to overcome financing constraints and boost competitiveness.

This study examines how internal governance mechanisms influence tax aggressiveness among listed companies in Morocco. Using a quantitative approach, the study applies linear regression analysis to panel data from 2018 to 2022. The analysis assesses the impact of key governance factors, such as ownership concentration, board size, board independence, CEO duality, firm performance, and firm age, on tax aggressiveness.
The findings indicate significant relationships between governance mechanisms and tax behavior. Ownership concentration is negatively associated with the effective tax rate, implying that firms with a dominant shareholder are less likely to engage in aggressive tax planning. Conversely, financial performance is positively linked to effective tax rate, suggesting that more profitable firms tend to comply with tax obligations. In the current effective tax rate model, board size, board independence, CEO duality, and financial performance are positively related to tax aggressiveness, while firm age has a negative effect. The book-tax difference model reveals that board independence and CEO duality reduce tax aggressiveness, whereas ownership concentration and financial performance increase it.
These results highlight the significant role of corporate governance in shaping tax strategies. Strengthening governance structures – especially by reinforcing board independence and limiting CEO duality – could help curb aggressive tax practices and promote greater fiscal transparency in Morocco’s financial market.

Precise risk management is crucial in options trading, especially in strategies with limited risk and capped profit potential. The Short Iron Condor is a widely adopted strategy due to its structured risk-reward profile. It provides traders with controlled exposure in low-volatility markets while maintaining defined profit and loss parameters. This paper deals with developing an optimization framework using a mixed-integer programming model to evaluate key factors influencing return efficiency, including maximum loss limits, price confidence intervals, and holding periods. Using 2023 options data for 14 U.S. equities and 9 ETFs, filtered and selected using Out of the Money Strategy (OTM), 324 option contracts from as many snapshots as possible, the study analyzes 324 trading scenarios with maturities ranging from 5 to 20 days. Results indicate that increasing the maximum loss limit raises total return but reduces return efficiency. A $100 loss limit generates an average return of $30 with a 40.7% return on investment, while a $900 limit increases returns to $131 but lowers return on investment to 18.8%. These findings demonstrate that higher risk exposure does not always enhance return efficiency in capped-risk strategies. The proposed framework provides actionable insights for traders aiming to refine strategy selection within well-defined risk constraints. Risk managers can utilize these findings to sustain stable investment portfolios, while algorithmic trading systems may integrate this optimization model for automated strategy refinements and real-time adjustments. This study enhances decision-making in options trading, portfolio risk management, and financial strategy development.