Issue #4 (Volume 20 2025)

Type of the article: Research Article

Abstract
This study investigates how corporate governance (CG) shapes financial reporting quality in Jordanian banks and whether audit quality mediates this relationship. Motivated by persistent agency challenges and evolving regulatory expectations in emerging markets, the research examines whether core governance principles – discipline, transparency, independence, accountability, and fairness – translate into more timely, comparable, and understandable reports. A cross-sectional survey of senior executives and board members from 20 banks headquartered in Amman produced 214 valid responses (July–November 2022). Measurement validity and reliability were established, and structural equation modeling was used to test direct and indirect pathways. The results show that CG exerts a strong positive effect on financial reporting quality (β = 0.608) and that audit quality independently enhances reporting outcomes. Mediation analysis indicates that audit quality functions as a significant partial mediator of the CG-reporting link (indirect β = 0.247), demonstrating that governance improvements are amplified when supported by competent, independent, and professionally rigorous audits. These findings imply that governance architecture and assurance practices operate as complementary mechanisms: robust boards and effective audit committees create the conditions for high-quality audits, which in turn convert governance intent into decision-useful disclosures. The study provides context-specific evidence from Jordan’s banking sector, clarifying the channels through which governance reforms strengthen reporting credibility. Practically, the results endorse reinforcing audit committee independence, resourcing internal controls, and embedding transparent disclosure norms to sustain market confidence and align with international reporting expectations.

Type of the article: Research Article

Abstract
This study investigates the link between sustainability commitment and cash holdings and assesses the relationship between board meetings (BM), industry knowledge (IK), and Shariah Supervisory Boards (SSBs) and sustainability commitment in Indonesian Islamic banks. The analysis employs entity-year fixed effects regressions and conducts robustness checks on an unbalanced panel covering 15 banks from 2017 to 2023. Sustainability commitment is proxied by a disclosure index aligned with national and global guidelines, while cash holdings equal cash and equivalents scaled by total assets.
Results from the main specification indicate that stronger sustainability commitment is associated with higher cash holdings (p < 0.05), consistent with precautionary motives under ESG execution and disclosure scrutiny. Board activity, proxied by meeting frequency, is positively related to sustainability commitment (p < 0.01), and SSB size also shows a significant association (p < 0.01). Leadership competency is not a significant factor in the sustainability liquidity link. While standard controls are included, bank age is negatively associated with cash holdings (p < 0.01).
These findings suggest that banks with stronger sustainability commitment maintain larger liquidity buffers, and that SSB oversight and active boards help embed sustainability within prudential liquidity management. The evidence informs regulators and managers seeking to coordinate Shariah governance, sustainability mandates, and cautious liquidity practices in emerging markets.

Acknowledgment
Currently, the manuscript is under the support of The Academic Research Grant (ALG), which is an Internal Research Grant from Unpad (Padjadjaran University) for the year 2023 with reference number 1549/UN6.3.1/PT.00/2023.

The Original Article was published on October 3, 2025

Corrigendum
The authors regret that the original title of the article was inappropriate and wish to amend it to “Do the Sustainable Development Goals enhance bank profitability? Global panel evidence.”
This correction aims to more accurately reflect the scope and focus of the research presented in the paper.
The authors emphasize that this amendment does not affect the data, analysis, or conclusions of the study in any way.
They sincerely apologize for any misunderstanding or inconvenience this may have caused to readers and the editorial team.

Type of the article: Research Article

Abstract
The rapid development of Islamic banking in Indonesia faces challenges in managing Non-Performing Financing (NPF), requiring an innovative approach based on Islamic values. Mabda’ At-Ta’awun, an Islamic cooperative principle that emphasizes collaboration between banks and customers to resolve problem financing, presents a promising alternative solution. This study aims to analyze the effectiveness of implementing Mabda’ At-Ta’awun in increasing the recovery rate and reducing the NPF ratio in Indonesian Islamic banking, as well as to evaluate the influence of bank characteristics on financing risk management performance. The research methodology uses a quantitative approach with panel data analysis from five Indonesian Islamic banks: PT Bank Muamalat Indonesia, PT Bank BCA Syariah, PT Bank BTPN Syariah, PT Bank Mega Syariah, and PT Bank Syariah Bukopin for the period 2016–2024 (45 bank-year observations). Fixed Effects Panel Regression, Seemingly Unrelated Regression (SUR), and Granger Causality Tests are used to identify causal relationships between variables. The results of the study demonstrate the effectiveness of Mabda’ At-Ta’awun in improving the performance of problem financing management: the financing recovery rate increased by 18.47% and the problem financing ratio decreased by 2.34%. Large banks face implementation flexibility constraints, while banks with high profitability demonstrate superior recovery performance. This study provides empirical evidence that implementing the Ta’awun principle can create a sustainable competitive advantage in Islamic banking financing risk management through a win-win solution approach that integrates Sharia compliance aspects with business effectiveness.

Type of the article: Research Article

Abstract
The study examines the Jordanian banking environment against the backdrop of rapid digital advances and whether applying Artificial Intelligence, Financial Technology solutions, and hybrid platforms that combine new and traditional technologies is gaining traction. It surveyed 460 respondents, including 280 bank officials and decision-makers, 140 active Financial Technology practitioners, and 40 regulators and policymakers. These groups were deliberately selected to include different views of operation, usage, and regulation. The questionnaire took place between September and December of 2024, a time in which Jordan itself began an electronic transformation project as a result of the previous pandemic outbreak. Institutional Review Board approval from the Middle East University, as well as consent from online volunteers, preceded this study.
Quantitative analysis demonstrates good readiness to adopt Artificial Intelligence (mean value 4.3) and hybrid integration (mean value 4.2). Application Programming Interface integration was indicated as a chief enabler of Artificial Intelligence adoption (0.78, 0.020), which enabled real-time risk analysis (0.70) and customer satisfaction (0.62). These, in turn, enhanced regulatory compliance (0.57), infrastructure buildup (0.54), and tech capacity development (0.49). The study illustrates the interconnected correlation between infrastructural backup, rule compliance, and technological readiness in ensuring the success of digital transformation processes. By integrating empirically derived data and situational analysis, this work provides a new depth of understanding of the feasibility of restructuring financial services provision in new economies such as Jordan. The study illustrates the possibilities and constraints of Financial Technology and Artificial Intelligence applications, with special emphasis on culturally compliant and morality-inclined innovation.

Type of the article: Research Article

Abstract
This study seeks to empirically evaluate the critical role of cybersecurity awareness and cloud computing capabilities in shaping value co-creation using cloud-based mobile fintech services of Islamic banks in Jordan from clients’ perspectives. By employing a quantitative methodology, 498 clients of Islamic banks completed the questionnaire for this study. The questionnaires were sent to clients who perform their financial activities by using cloud-based mobile fintech services from various Islamic banks in Jordan. Based on Structural Equation Model (SEM) analysis, the results uncover that social engineering threats, password security, and social factors have a significant direct effect on cybersecurity awareness among customers of cloud-based mobile fintech services of Islamic banks in Jordan at a significant value level (P < .05, .01, and .001). The findings also confirm that cybersecurity awareness asserts a positive direct influence on both cloud-computing capabilities and value co-creation among customers of cloud-based mobile fintech services of Islamic banks in Jordan (P < .001). Finally, cloud-computing capabilities have a significant direct influence on value co-creation among customers of cloud-based mobile fintech services of Islamic banks in Jordan (P < .001). The results of the developed model of this study could be used to enhance the financial services of Jordanian Islamic banks, assist in producing new services, reinforce the development process of cloud-based mobile fintech services, and aid in developing cybersecurity awareness algorithms in this field.

Type of the article: Research Article

Abstract
Artificial Intelligence (AI) is transforming banking operations, with many banks rapidly embracing the technology. In annual reports, banks voluntarily disclose information about their AI initiatives, but the extent to which such disclosures influence customer behavior remains underexplored. This study investigates the impact of voluntary AI disclosures on customer deposit behavior, with a focus on the ownership structure of banks in India. The AI disclosure index was constructed from annual reports of 12 Nifty Bank Index constituents. Using a mixed-methods approach, the balanced panel dataset over the period 2019–2023 was analyzed using a random effects model, validated through the Hausman test. Results indicate that voluntary AI disclosure positively influences the deposits, supporting the view that transparent reporting strengthens customer confidence. Public sector banks show stronger effects, with the ownership dummy yielding a negative coefficient, suggesting that private banks face a credibility gap. Profitability had a significant influence on deposit behavior, whereas book values per share and policy repo rate were insignificant. The findings demonstrate that voluntary AI disclosure has a signaling effect, influencing customer trust, which is captured in the form of customer deposits. These results have practical implications for managers in designing disclosure and policymakers in standardizing reporting frameworks to improve reporting transparency.