Afro-Asian J. of Finance and Accounting (32 papers in press)

Regular Issues

• The effect of board gender diversity on firm sustainable performance in the MENA region: the moderating effect of ownership concentration  
  by Hebatallah Badawy, Toshitsugu Otake, Ahmed Yehia Ebeid 
  Abstract: Firm sustainable performance is receiving great attention worldwide. Companies are targeting sustainability by focusing on their environmental, social and governance (ESG) activities to meet the expectations of different stakeholders. The objective of this research is to provide empirical evidence on the effect of female presence on boards on the firm sustainable performance, which is a long-term concern, measured by ESG performance in the MENA region and on the moderating effect of ownership concentration. Using a sample of 571 firm-year observations during the period from 2013 to 2022 from Eikon Thomson Reuters database, the current research resulted in evidence, that is; female presence on boards contributes towards enhancing the firm’s sustainable performance in the MENA region. Ownership concentration is proven to have a moderating effect on the relationship between board gender diversity and firm sustainable performance in general and firm social performance in particular.
  Keywords: board gender diversity; sustainable performance; ownership concentration; MENA.
  DOI: 10.1504/AAJFA.2024.10068584
   
  
• Deciphering risk and behavioural biases in investment decision-making  
  by Anushree Ganguly 
  Abstract: Behaviour distinctly shapes individuals' risk tolerance and these biases influence perceptions of risk and drive decision-making in financial contexts investigate the impact of behavioural biases on risk tolerance, focusing on cognitive and emotional biases such as overconfidence, regret aversion, representativeness, anchoring, herding, loss aversion, and mental accounting. The research aims to develop a comprehensive model that captures the complex relationships between prominent biases and risk tolerance, accounting for the interdependencies and interactions among these variables. The research design is descriptive and exploratory, aiming to understand risk and investment patterns driven by biases. Data was collected through structured questionnaire from 365 individuals, and a structural equation was used to analyze the relationship between biases and risk tolerance. Confirmatory factor analysis (CFA) was used to validate measurement models of behavioral biases and risk tolerance, while Structural Equation Modeling (SEM) was used to analyse the relationship between behavioral biases and risk tolerance.
  Keywords: anchoring; adjustment; behavioural finance; bias; herding; invest; loss aversion; mental accounting; overconfidence; regret aversion; representativeness; risk tolerance.
  DOI: 10.1504/AAJFA.2024.10068605
   
  
• Analysis of sustainability reporting and SDG disclosures using NLP evidence from the Indian pharmaceutical sector  
  by Jyoti Singh, Meena Bhatia 
  Abstract: With sustainability reporting gaining momentum globally, the pressure on companies to enhance their sustainability disclosures has been ever-increasing from regulators and investors. The aim of this research paper is to analyse the evolving sustainability disclosures by pharmaceutical companies in India with a focus on the balance of positive and negative sentiments; and thematic trends, based on the United Nations Sustainable Development Goals (SDGs) 2030. Sustainability disclosures in the annual reports of NIFTY 20 Pharma Companies has been done using natural language processing method from 20152022. Analysis shows that the breadth and depth of sustainability disclosures are increasing across the companies included in the study. Thematic analysis revealed that emphasis on environmental aspects is growing as compared to social and governance factors. The results corroborate that companies use sustainability disclosure to signal positive sentiments, as there is a significant degree of voluntarism in narrative disclosures. This study would assist stakeholders in comprehending the topics of sustainability disclosures.
  Keywords: sustainability reporting; environmental; social and governance; ESG; India; sentiment analysis; natural language processing; pharmaceutical; sustainable development goals; SDGs; narrative disclosures.
  DOI: 10.1504/AAJFA.2024.10068869
   
  
• COVID-19 pandemic, government interventions and day-of-the-week anomaly: evidence from Bursa Malaysia sectors  
  by Lay Mei Ng, Y.E.E. Peng Chow 
  Abstract: This paper analyses whether the day-of-the-week effect occurs in the Kuala Lumpur Composite Index (KLCI) and Bursa Malaysia sectoral indices during the COVID-19 pandemic and the impact of government interventions on this association for the study period from January 29, 2020 to March 31, 2021 and four sub-periods, i.e., pre-government intervention, Movement Control Order (MCO), Conditional Movement Control Order (CMCO) and Recovery Movement Control Order (RMCO) phases. The findings reveal the occurrence of day-of-the-week effect in the KLCI and all sectoral indices, except for construction, for the whole study period. During the pre-MCO period, this effect happens in the KLCI and five sectors only. Interestingly, this calendar anomaly can only be detected in the KLCI during the MCO period. During the CMCO period, this effect occurs in the KLCI and all sectors except for plantation. Lastly, the KLCI and four sectors recorded this effect during the RMCO period.
  Keywords: Bursa Malaysia; COVID-19; day-of-the-week effect; government interventions; market anomaly; sectoral indices.
  DOI: 10.1504/AAJFA.2024.10068879
   
  
• Corporate tax competition and foreign direct investment: evidence from G20 countries  
  by Mukesh Babu Gupta, Anup Kumar Roy, Kunal Sinha 
  Abstract: This paper investigates the impact of tax competition among the G20 countries, particularly the effect of tax rate reduction on foreign direct investment inflows. In addition to the tax rate, the study also considered several key economic variables. The analysis of the study was based on two regression models, each consisting of eight variables, to investigate the impact of Corporate Tax Rate (CTR) on the flow of FDI. Our findings revealed that corporate tax rate, size, growth, trade openness, secured internet connection, and time required to start a business (TRSB) had a negative impact, while inflation and Political Stability and No Violence (PSNV) had a positive impact on FDI inflow.
  Keywords: corporate tax rate; FDI; foreign direct investment; G20; trade openness.
  DOI: 10.1504/AAJFA.2024.10069047
   
  
• A comparative study of IFRS 17 implementation on Islamic and conventional insurance companies in the UAE emerging market  
  by Mahmoud Osama, Mahmoud Azmi, Mohammad Salem, Mohammad Sheriff Hamid Kamara, Walaa Wahid ElKelish 
  Abstract: This paper investigates the impact and determinants of IFRS17 on Islamic and conventional insurance companies’ operations in the emerging market of the United Arab Emirates (UAE). Data is collected using a survey instrument distributed to active insurance companies in the UAE. The results indicate that the transparency ranking of insurance companies is the most important concern for implementing IFRS 17, while technology investment is the most important challenge. In addition, results indicate that Islamic insurance companies have more worries than conventional insurance companies regarding IFRS 17 data reconciliation time, market valuation accuracy, and challenges, including information management systems, reporting systems, and technology investment. Insurance company size has a vital influence on IFRS 17 implementation. Respondents’ characteristics, such as job title and nationality, are the most important determinants of IFRS 17 implementation. This paper has several practical implications for corporate managers and regulators.
  Keywords: IFRS17; insurance contracts; comparative study; emerging market.
  DOI: 10.1504/AAJFA.2024.10069179
   
  
• Nonlinear effect of corporate income tax on FDI in developing countries  
  by Thi Kim Chi Nguyen, Minh Hang Nguyen, My Hai Duyen Le, Kim Quoc Trung NGUYEN 
  Abstract: This study aims to investigate the nonlinear relationship between corporate income tax rates and foreign direct investment (FDI) inflows in developing countries from 20122022, grounded in the Theory of FDI (marginal return theory, the eclectic theory of international production) and tax competition theory. Using a generalised least squares (GLS) model and the instrumental variables estimator (2SLS) for robustness checks, the study incorporates tax rate, squared, and cubed terms to explore nonlinear effects, particularly focusing on the cubic value of tax rates. The findings reveal a nonlinear effect, identifying a threshold corporate tax rate of 24.08%, at which FDI inflows increase alongside government revenues. This suggests that while lowering tax rates can attract FDI, excessively low rates diminish revenue and are not always beneficial. Therefore, developing countries should avoid engaging in a race to the bottom for tax rates. This studys originality lies in quantifying the threshold beyond which corporate tax rates positively influence FDI, offering practical implications for policy makers in developing nations considering tax reforms. Future research should explore this relationship in countries facing political and economic challenges, such as Ukraine.
  Keywords: corporate income tax; statutory tax rate; effective tax rate; Foreign direct investment.
  DOI: 10.1504/AAJFA.2025.10069952
   
  
• Bridging ESG and financial performance: financial risk as mediator in the MENA region  
  by Rola Shawat, Ahmed Zamel, Toshitsugu Otake, Sara H. Sabry, Hebatallah Badawy 
  Abstract: This paper aims to investigate how ESG performance affects the financial performance of non-financial firms in the MENA region and to analyse the mediating role of financial risk in this relationship. OLS regression models were developed using a panel dataset of 522 firm-year observations during 20132022. The results showed that ESG has a significant impact on the financial performance of firms. Additionally, the results revealed a competitive partial mediation of financial risk in the ESG-FP nexus. Additional path analysis and robustness checks were performed. This research contributes to the existing literature using data retrieved from the Thomson Reuters database and examining the mediating role of financial risk in the hypothesised nexus in the MENA region context. Our results imply that firms must consider the possibility of bankruptcy before commencing any sustainable initiatives as it will in turn affect their financial performance.
  Keywords: financial risk; environmental; social and governance; ESG; financial performance; MENA region.
  DOI: 10.1504/AAJFA.2025.10070064
   
  
• Harmonising new financial reporting system and financial reports readability: evidence from top Indian companies  
  by Chanchal Chatterje, Debdas Rakshit, Ananya Paul 
  Abstract: The study analyses whether the readability of annual reports has enhanced or reduced after the adoption of IndAS in India. Additionally, the moderating influence of audit quality on annual report readability is explored following IndAS implementation. The study uses Fog and Smog indexes as readability measures and considers auditing by a Big Four auditor as a proxy for audit quality. Using panel regression analysis, results disclosed that the readability of annual reports has decreased following IndAS implementation in India. Also, length analysis as a robustness check showed that the length of annual reports has increased after IndAS adoption, resulting in longer disclosures and information overload, thereby making annual reports less readable. However, yearly reports' readability has enhanced for companies appointing a Big Four auditor following IndAS adoption. The results have significant implications for regulating and standard-setting bodies.
  Keywords: annual reports; audit quality; Big Four auditor; IndAS; readability.
  DOI: 10.1504/AAJFA.2025.10070571
   
  
• Guardians of resilience: unveiling the power of board diversity in mitigating financial distress  
  by Shital Jhunjhunwala, Nitya Garg, Sonia Mudel 
  Abstract: Board diversity is a strategic asset for enhancing a firm’s resilience in crisis. This study investigates the impact of board diversity in mitigating the probability of financial distress. The study focuses on a sample of 401 non-financial companies listed on NSE from 2018 to 2022. Dynamic panel models with the Generalized Method of Moments were employed to explore the relationship between board diversity and financial distress. This research accentuates the importance of board diversity as a key factor in enhancing a firm’s ability to overcome challenges. Diverse boards play a crucial role in reducing the likelihood of financial distress by fostering a rich mix of skills and experiences in terms of age and tenure diversity. By considering factors such as directors' age, professional experience, and tenure during nominations, companies can build a board capable of steering it through financial challenges more adeptly.
  Keywords: financial distress; board diversity; generalised method of moments; GMM; dynamic panel; Altman Z score; bankruptcy.
  DOI: 10.1504/AAJFA.2025.10071526
   
  
• Abnormal managerial discretionary spending and investment efficiency of South African firms: does board governance quality matter?  
  by Sulaiman Oreshile 
  Abstract: This study examines the effect of abnormal managerial discretionary spending (AbMgr_disexp) on investment efficiency (Invest_eff.) and the role of board governance quality (BGQ) as a moderator on the relationship. Utilizing least square dummy variable (LSDV) two-way fixed effect estimator, the analysis covers panel data from non-financial publicly listed firms on the Johannesburg Stock Exchange from 2015-2023. The finding indicates that AbMgr_disexp deteriorates Invest_eff. while BGQ improves Invest_eff. Additionally, BGQ mitigates the effect of AbMgr_disexp on Invest_eff. Results are robust across alternative measures of AbMgr_disexp and Invest_eff., firm heterogeneous analysis, and endogeneity tests using two-stage least squares (2SLS) and generalized method of moments (GMM) regression estimators. These finding are valuable to investors and policymakers, highlighting the influence of CEOs' decisions such AbMgr_disexp and relevance of strengthening BGQ on investment performance in South Africa and sub-Saharan Africa (SSA) at large.
  Keywords: abnormal managerial discretionary spending; board governance quality; investment efficiency; South Africa.
  DOI: 10.1504/AAJFA.2025.10071856
   
  
• How do board characteristics affect internal audit organisational independence in the MENA region?  
  by Ahmed Eldemiry, Hebatallah Badawy 
  Abstract: Internal audit helps the organization in accomplishing its objectives and plays an important role in the corporate governance environment. Internal audit independence is necessary to ensure its effectiveness. Several factors, such as board characteristics, need be examined to identify the ones that enhance the internal audit organizational independence. The objective of this study is to examine how board characteristics, such as size, independence, gender diversity and CEO duality may affect internal audit organizational independence in the MENA region. Based on a sample of 572 firm-year observations selected from Thomson Reuters database covering a period from 2013 to 2022, we found evidence that board independence and gender diversity can enhance internal audit organizational independence. However, CEO duality will hinder this independence in the MENA region. Our results provide practical and valuable insights to policy makers, standards setters, company managers, internal auditors and researchers interested in the area of corporate governance
  Keywords: board characteristics; internal audit organizational independence; Thomson Reuters; MENA region.
  DOI: 10.1504/AAJFA.2025.10072048
   
  
• Are red flags really effective in predicting insider fraud? Evidence from Indian banking industry  
  by Lalita Soni, Deepa Mangala 
  Abstract: The present study examines the internal auditors’ perceptions of the effectiveness of red flags in assessing insider fraud risk in Indian banking industry. Primary data were collected by using purposive sampling method from 255 internal auditors of Indian banks. Data were analyzed using exploratory factor analysis and multiple linear regression. The results indicate that lapses in structure and supervision are the foremost important red flags for identifying insider frauds in Indian banking sector followed by loopholes in policy and procedures, poor corporate governance practices, unusual employee behaviour and financial/economic characteristics of banks. The results further reveal that experienced and highly educated internal auditors rate higher the importance of red flags in fraud detection. The findings of the study may assist the regulatory authorities in formulating policies to thwart the nefarious acts of bank officials.
  Keywords: banking industry; fraud detection; internal fraud; red flags.
  DOI: 10.1504/AAJFA.2025.10072353
   
  
• Intangible assets and trade credit: evidence from MENA countries  
  by Imran Batti, Irfan Ahmed Sheikh, Razali Haron, Shakeeb Mohammad Mir 
  Abstract: In this paper we investigate the novel relationship between investment in intangible asset and trade credit and whether this relationship is driven by cross-sectional heterogeneity among firms. The study is based on secondary financial data of non-financial firms from Middle East and North African (MENA) countries for the period 2000-2020. The data is sourced from S&P Compustat Database. This study employs fixed-effects regression to arrive at results. Results of the study confirm the inverted U-shape relationship between investment in intangible assets and trade credit. In addition, we also found that high cash flow and growth firms can invest greater proportions in intangible assets while reducing investment in trade credit.
  Keywords: intangible assets; trade credit; cash flow; growth; panel data; Middle East and North Africa; MENA.
  DOI: 10.1504/AAJFA.2025.10072492
   
  
• The price of IFRS compliance: audit timeliness challenges in GCC countries
  by Faisal Khan*, Hafiz Muhammad Zia-ul-haq 
  Abstract: This study investigates whether IFRS adoption experience influences audit report lag (ARL) in the Gulf Cooperation Council (GCC) region. This region exhibits several characteristics of an emerging economy. We support the view that as firms gain more experience with IFRS, they become accustomed to the complexities that arise during the initial years of adoption, thereby increasing audit efficiency. ARL refers to the period between a companys fiscal year-end and the audit report date. It is one of the few externally observable audit output variables that enable outsiders to assess audit efficiency. Using a sample of 5,764 firm-year observations of non-financial firms in GCC economies over the period 20092024, the study finds that high IFRS adoption experience leads to a decrease in ARL. This is consistent with the view that auditors respond to the risks associated with IFRS adoption by increasing their efforts. Additionally, it is found that the negative association between IFRS adoption and ARL is moderated by high IFRS adoption experience, industry-specialist auditors, and audit fees. Furthermore, firm complexity, measured by the number of business segments, weakens the negative relationship between IFRS adoption and ARL. Overall, this research offers various important practical and policy implications.
  Keywords: ARL; GCC countries; audit fee; auditor industrial specialization; firm complexity; ordinary least square regression; propensity score matching.
  
  
• Firm-specific factors and microfinance sustainability in India: a panel approach  
  by Komal Dhiman, Ashok Kumar, Urvashi Suryavanshi, Rishi Chaudhry 
  Abstract: This research aims to investigate the factors influencing the financial and social sustainability of MFI’s in India. It utilizes data from 18 Indian MFIs sourced from the MIX market spanning the time period from 2015 to 2019. The empirical analysis employs a Fixed Effect Model to explore balanced panel data of MFI’s. OSS, Breadth & Depth of Outreach are considered as dependent variable and MFI size, Leverage, Efficiency, Staff Productivity, Profitability, Solvency, Portfolio Quality are considered as independent variables. The study found that among the seven firm specific factors considered, only four factors (Leverage, Profitability, Solvency, Portfolio Quality) affects the financial sustainability while the depth of outreach is impacted by the five factors (MFI size, Efficiency, Profitability, Solvency, Portfolio Quality) and two factors (MFI size, Staff Productivity) impact the breadth of outreach. Moreover, the study conducted a robustness check by using System Generalized Method of Moment (System GMM) technique.
  Keywords: microfinance institution; MFI; sustainability; financial sustainability; outreach; social sustainability; MIX database; firm-specific factors; panel approach; system GMM; India.
  DOI: 10.1504/AAJFA.2025.10073016
   
  
• Exploring mean reversion dynamics in stock markets through Hurst exponent and GARCH analysis  
  by Shifa Hasan, Renu Ghosh 
  Abstract: Mean reversion is the tendency for asset prices to revert to their historical means over time. The current study investigates mean reversion and the speed of mean reversion within Indian financial market at BSE Sensex and NSE Nifty for a dataset of 20 years (20042024). It employs a variety of techniques, including traditional tests like the Augmented Dickey-Fuller (ADF) and Philips-Perron (PP) tests, as well as long-term dependency analysis using the Hurst exponent. Using GARCH (1, 1), half-life method facilitated the speed of mean reversion. The Hurst exponent of this investigation shows significant findings. Empirical data demonstrates that mean reversion processes exhibit Hurst exponent values less than 0.5, suggesting mean reverting behaviour. This signifies the importance of adopting long-term perspectives in decision-making and trading strategies for market participants. Additionally, the half-life values extracted using GARCH (1, 1) for BSE Sensex is 79 days whereas it is 88 days for Nifty.
  Keywords: mean reversion; financial markets; Hurst exponent; half-life method; predictive capabilities; GARCH (1; 1).
  DOI: 10.1504/AAJFA.2025.10073533
   
  
• Nonlinear threshold effect of workers' remittances on the investment rate in African countries: Does financial development and governance quality matter  
  by Makram Nouaili 
  Abstract: In African countries, remittances from emigrants are a steadily growing external source of capital and play an essential role in their development. The main objective of this study is to determine the threshold level of remittances, governance quality and financial development, which, once attained, will increase the investment rate in African countries. Unlike previous studies, we use the first-difference GMM estimator of the dynamic panel threshold model. The results support the idea of the conditional positive impact of remittances on investment and that their impact depends on their volume, the development of the financial sector, the good governance of the state, and the economic environment of the migrants' countries of origin. Based on the findings, this study proposes several policy recommendations.
  Keywords: remittances; investment; financial development; governance; dynamic panel threshold models; Africa.
  DOI: 10.1504/AAJFA.2025.10073693
   
  
• Key audit matters and audit quality: first year implementation from Indonesia  
  by Iwan Suhardjo, Sedat Coşkun, Budi Harsono, Antony Antony 
  Abstract: Indonesian auditors are navigating an important phase in implementing the new standard on auditing and disclosing key audit matters (KAMs). This study examines the factors influencing KAMs disclosures and the strategies employed to address associated challenges. Through a qualitative approach, incorporating an online survey and semi-structured interviews, the study explores the experiences of auditors at various professional levels. Thematic analysis, informed by communication theory, was used to identify key themes in KAMs disclosures within the Indonesian context. The findings indicate that KAMs disclosures could improve audit quality in Indonesia. However, auditors face challenges such as restricted access to client data, regulatory changes, and skill gaps. To overcome these obstacles, auditors adopt strategies like continuous auditor development, consistent regulatory compliance, and leveraging advanced technologies. Since KAMs disclosures in Indonesia are in their early stages, this study suggests the importance of integrating technology with human expertise to further improve audit quality.
  Keywords: key audit matters; audit quality; communication theory; first year implementation; Indonesia.
  DOI: 10.1504/AAJFA.2025.10073968
   
  
• Exploring the impact of digital financial services on consumer saving habits and investment decisions in the evolving economic landscape  
  by Roop Raj, J.Salomi Backia Jothi, Vaishali Ojha, Iskandar Muda, M. Khalufi Nasser Ali, M. Arulmozhi 
  Abstract: The growth of Digital Financial Services (DFS) has improved customer saving, investment, and money confidence. We discuss how DFS affects saving and investing decisions in re-engineered economies with increased digitisation and financial inclusion. 1,200 income, age, and education respondents provided primary and secondary data. The data set includes milestone DFS adoption behaviours such internet transaction frequency, savings frequency, investment category ownership, and financial faith. Microsoft Excel was used for systematic tabulation and comparative analysis, while Python (Matplotlib, Pandas, Seaborn) was used for quantitative analysis and visualisation. Bar-line graphs, multi-line plots, and box plots were used to compare financial patterns across user groups. The study found that DFS use greatly increases saving frequency, allows varied investment accounts, and boosts money self-efficacy dependent on education and income. Digital finance studies benefits from empirical evidence of DFS's revolutionary role and scalable policy and technological blueprints to improve financial well-being in the digital age.
  Keywords: digital financial services; DFSs; saving habits; investment decisions; Fintech innovation; financial inclusion; consumer behaviour; economic landscape; digital banking.
  DOI: 10.1504/AAJFA.2025.10074655
   
  
• Cognitive barriers and sustainable finance: unveiling the role of behavioural biases in ESG investment decisions across emerging economies  
  by Edwin Ramirez-Asis, Samer Ajour, Freddy David Zuluaga Guerrra, Edwin Asnate-Salazar 
  Abstract: Sustainable investing is growing steadily around the world, but in emerging economies its progress is often shaped by behavioural biases that influence how people make financial decisions. This study examines how cognitive and emotional tendencies, such as anchoring, herding, loss aversion, and overconfidence affect investment in ESG products, especially when investors have limited experience and markets are still developing. The research is based on 2,000 interviews with investors in India, Brazil, South Africa, Vietnam, and Indonesia, offering a broad view of how these biases appear in practice. Using a mixed-methods approach, the findings show that psychological factors can either slow down or encourage sustainable investment. The article suggests strategies that combine education and financial planning to strengthen responsible investing. Its recommendations are particularly useful for regulators, fund managers, and educators seeking to improve ESG adoption and build more inclusive and efficient financial systems aligned with global sustainability goals.
  Keywords: behavioural biases; sustainable investing; emerging economies; ESG; herding behaviour; loss aversion; anchoring; overconfidence.
  DOI: 10.1504/AAJFA.2025.10074800
   
  
• The impact of COVID-19 on stock market volatility: evidence from BRICS countries  
  by Daouia Chebab, Ammar Jreisat, Cheah Chan Fatt, Zakaria Lacheheb 
  Abstract: This study aims to examine the impact of COVID-19 on the volatility of the major stock indices of Brazil, Russia, India, China, and South Africa (BRICS countries). This study uses a pooled mean group (PMG) estimator on panel data from five (BRICS) countries during the period June 1, 2020January 25, 2021, to investigate the impact of COVID-19 on the volatility of the major stock indices of Brazil, Russia, India, China, and South Africa. Our results reveal a weak and indirect impact of COVID-19 on the stock markets volatility in India and Russia only. Besides, PMG estimations indicate that the exchange rate significantly impacts Chinas short-term stock market indices. The findings of this study offer valuable insights into financial stability during market turbulences, providing valuable implications for policymakers, financial practitioners, investors, regulators, and researchers analysing emerging markets. This enables the development of targeted strategies to mitigate financial risks and enhance resilience in stock markets during market turmoil and unprecedented global crises.
  Keywords: stock volatility; Covid-19; social distancing; BRICS; PMG.
  DOI: 10.1504/AAJFA.2025.10074857
   
  
• Internal determinants of tax aggressiveness of listed non-financial companies in Nigeria  
  by Mohammed Yusuf, Alex A. Osuza, Ruth N. Yusuf 
  Abstract: Companies face several challenges to ensure their long-term growth survival and sustainability, including implementing aggressive tax policies. This study examined the internal determinant of tax aggressive proxy with effective tax rate of listed non-financial companies in Nigeria for ten years, (2013 to 2022), adopting a longitudinal research design, a sample size of 63 companies selected using purposive sampling technique out of a population of 112 companies. Secondary data were collected from the annual reports of the sampled companies and analysed using regression. The overall result showed that board independence, board size, board diversity, managerial ownership, and profitability have a significant positive effect on tax aggressiveness of listed non-financial companies in Nigeria, while firm size has an insignificant effect on tax aggressiveness. The study, recommended that independent directors, management and shareholders are equipped with a balanced understanding of tax planning and compliance with ethical tax practices over short-term tax savings.
  Keywords: effective tax rate; financial performance; internal determinants; non-financial companies; tax aggressiveness; Nigeria.
  DOI: 10.1504/AAJFA.2025.10075213
   
  
• Does transparency pay? Economic value added and industry-specific responses to sustainability disclosures in Malaysian firms  
  by Aik Nai Chiek, Tee Peck Ling, Salizatul Aizah Ibrahim, Kok Eng Tan 
  Abstract: This study examines the impact of sustainability disclosure on the operating performance of Malaysian firms. It aims to validate if the sustainability efforts are value added to the firms or simply a campaign leading to greenwashing practices. Using non-parametric test, the expected and actual improvements of economic value added (EVA) for 213 Malaysian firms in different industries and window periods are compared. The empirical results reveal that EVA performance was fluctuated but not significant across most industries, with the consumer cyclicals industry particularly affected. Firms starting environmental, social, and governance (ESG) reporting in 2020 and those with long-term practices dating back to 2016 did not meet performance expectations, suggesting that the economic benefits of sustainability reporting are not immediate. Declines in consumer cyclicals, industrials, and technology industries highlight implementation challenges, while gradual improvements in the financials industry point to potential long-term benefits. The findings emphasise the importance of a sustained commitment to ESG practices for realising economic benefits over time.
  Keywords: sustainability disclosure; ESG reporting; operating performance; economic value added; industry-specific.
  DOI: 10.1504/AAJFA.2025.10076141
   
  
• ESG disclosure and bank liquidity risk in MENA region: ownership as moderator  
  by Houda Sassi 
  Abstract: The purpose of this study is to investigate the effect of environmental, social, and governance disclosure on bank liquidity risk in the MENA region, emphasising the moderating effect of ownership structure, i.e., state and foreign ownership. Using a 92-bank panel of the ten most significant MENA countries between 2011 and 2022, panel regression models were employed to investigate the relationship between ESG disclosure and bank liquidity risk, as measured by the loan-to-deposit ratio. The moderating effect of state and foreign ownership was investigated using interaction terms. The results show that more detailed ESG disclosure significantly reduces bank liquidity risk, justifying its role as a reliable indicator that enhances depositor confidence and stability of funding. State ownership supports the effect of ESG on liquidity risk, while foreign ownership weakens it, providing proof of the validity of institutional contexts. To our best knowledge, there is no existing prior research on the relationship between ESG disclosure and bank liquidity risk in the MENA region, or one that considers the moderating role of ownership structure. The study contributes to the literature by providing new evidence on the interaction of ESG transparency with ownership attributes to influence financial stability.
  Keywords: ESG disclosure; bank liquidity risk; ownership structure; MENA region.
  DOI: 10.1504/AAJFA.2025.10076755
   
  
• Studying of the changing role of chartered accountants in Indias economic growth  
  by Prem Lal Joshi, Tariq Ismail 
  Abstract: Given the paucity of empirical research, this study uses agency and role theories to examine the extent to which the evolving roles of chartered accountants (CAs) are connected to the economic growth of India. A sample of 238 respondents, including accounting educators, management accountants, and chartered accountants, was surveyed on 27 possible roles for CAs. In a response rate of 29.4%, and after removing outliers, 67 responses were used for analysis. Results showed that CAs play various roles, including financial reporting, risk management, financial due diligence, accurate reporting, and assisting companies in decision-making. However, there were significant differences in the responses of CAs and non-CAs. The results of regression analysis reveal that CAs played significant roles in financial management and control roles and in auditing, assurance, and advisory roles. Hence, this study has shed the light on the evolving role played by the CAs in Indian' s economic growth. The study suggests that regulatory bodies and professional institutions should focus on training and improving CAs' skills. It also contains limitations of the study and direction for future research.
  Keywords: chartered accountant; financial management and control; economic growth; auditing; assurance; advisory; taxation; sustainability; social and environmental reporting; digital and cybersecurity; financial due diligence; financial reporting and disclosure; India.
  DOI: 10.1504/AAJFA.2025.10077091
   
  
• Performance dynamics of commodity ETFs: an empirical perspective  
  by Monika Dahiya, Sakshi Arora 
  Abstract: Exchange-Traded Funds (ETFs) offer investors a diversified investment vehicle by replicating the performance of benchmark indices. However, deviations between ETF returns and their underlying indices, known as tracking errors, challenge their efficiency. This study examines the tracking errors of 13 commodity ETFs listed on the National Stock Exchange (NSE) of India. Using annual data from inception to March 2024, tracking errors were measured using average absolute return differences, standard deviation of return differences, and standard error of regression. The results reveal significant tracking inefficiencies in Gold ETFs, with ICICIGOLD exhibiting the highest error, potentially due to management fees and replication inefficiencies. Silver ETFs, on the other hand, demonstrated minimal tracking errors. This research underscores the importance of evaluating tracking performance for informed investment decisions and suggests improvements for fund management strategies to enhance tracking efficiency.
  Keywords: tracking errors; exchange-traded funds; ETFs; commodity ETFs; performance dynamics; gold ETFs; silver ETFs; passive investment; net asset value; NAV; premium; discount.
  DOI: 10.1504/AAJFA.2025.10077241
   
  
• Decomposition of managerial compensation policy: from the perspective of information asymmetry in Korean firms  
  by Injoong Kim, Su-In Kim, WooKyung Heo 
  Abstract: This study investigates the degree to which information asymmetry affects equilibrium conditions in the managerial compensation contract. Firms in emerging markets are exposed to greater information problems and due to firm structure and volatile performance measures, agency theory-based optimal contract may not be effective. Based on Jann’s (2008) decomposition, we disentangle the pure effect of information asymmetry from other firm characteristics. Firms suffering information problems are generally smaller, less profitable, and exposed to greater risks; all these factors reduce managerial pay. However, even after accounting for these firm characteristics, information asymmetry still reduces both the level and sensitivity of managerial compensation. Information asymmetry is negatively and almost monotonically related with pay sensitivity. In our 100 portfolios, the below-median information asymmetry group shows roughly twice higher pay sensitivities compared to the above-median group. Thus, to avoid the inefficient pooling equilibrium, the information problem must first be resolved in implementing incentive contracts.
  Keywords: decomposition; equilibrium conditions; incentive pay; information asymmetry; managerial compensations; pay sensitivity; emerging market; Korea.
  DOI: 10.1504/AAJFA.2026.10077758
   
  
• Tax avoidance over time and the effects of corruption and government ownership  
  by Paula H. Moore, Ben Le, Laura N. Hatch 
  Abstract: This study examines tax avoidance over a sixteen-year period involving two changes in corporate income tax rates, the presence of corruption, and the impact of government ownership. Contrary to prior research, this study reveals a mixed trend of tax avoidance over time. Additionally, the study finds that a higher corruption index is associated with lower levels of tax avoidance. Such a finding suggests the illegal payoffs made to local authorities are negatively correlated with tax avoidance. The results also show that the impact of government ownership on tax avoidance follows a U-shaped pattern. Initially, an increase in government ownership leads to a decrease in tax avoidance, but the relationship changes direction as government ownership surpasses around 46.27 percent. The results imply that tax avoidance is high in listed firms with government ownership that is either too low or too high. This study utilizes various regression techniques: ordinary least squares (OLS), the generalized method of moments (GMM), and generalized linear model (GLM) with a logit link and the binomial family regressions.
  Keywords: tax avoidance; tax rate change; corruption; government ownership.
  DOI: 10.1504/AAJFA.2025.10077837
   
  
• Decoupled or integrated? Long-term linkages between ESG and conventional stock indices  
  by Kapil Ahuja, Jyoti Chhabra 
  Abstract: This study aims to examine the integration between environmental, social, and governance (ESG) equity indices and conventional stock market indices in selected developing countries, specifically China, Brazil, India, Korea, and Thailand. The research investigates whether a long-term relationship exists between these two types of indices and explores the causal dynamics between them. The study utilises daily return data for MSCI ESG and conventional indices from January 2010 to December 2023. The Johansen cointegration test is applied to assess long-term integration between ESG and conventional indices. Additionally, the Granger causality test is employed to examine the short-term causal relationship between these indices in the selected markets. The results indicate no cointegration between ESG equity indices and conventional stock market indices in the selected developing countries, implying the absence of a long-run equilibrium relationship between them. This suggests that ESG indices in these markets operate independently from conventional indices, with limited long-term influence on each other. This study contributes to the ongoing discourse on ESG investing by providing empirical evidence on the relationship between ESG and conventional indices in developing countries. By focusing on major emerging markets, the research offers valuable insights into the financial dynamics of ESG investing and its independence from traditional market movements, which is crucial for policymakers, investors, and market participants.
  Keywords: environmental; social; governance; ESG; MSCI; equity indices; ESG indices; conventional indices; cointegration analysis; Granger causality.
  DOI: 10.1504/AAJFA.2026.10077982
   
  
• Dynamic relationship between outward foreign direct investment and economic growth: ARDL-based empirical evidence from India  
  by Manoj Kumar Sinha, Shalini Rawal, Mithilesh Kumar Jha 
  Abstract: This study investigates relationships between inward Foreign Direct Investment (IFDI), exports, economic growth (proxied by the Index of Industrial Production, IIP) and outward Foreign Direct Investment (OFDI) from India, using the Autoregressive Distributed Lag (ARDL) model. The study used monthly data of the said variables from March 2011 to June 2024. The analysis covers both short- and long-term dynamics to explore how these factors influence India’s outward investment patterns. The results reveal that exports and economic growth significantly drive OFDI in the long-run, while the impact of IFDI on OFDI remains insignificant. The findings suggest that strong export performance and industrial growth are crucial for enhancing outward investment, while the role of IFDI needs further exploration. The study also highlights the importance of improving the investment climate, fostering sector-specific growth, and enhancing the absorptive capacity of domestic firms. These insights provide valuable policy implications for enhancing India’s international investment strategy.
  Keywords: outward FDI; inward FDI; exports; economic growth; ARDL model; India.
  DOI: 10.1504/AAJFA.2026.10078029
   
  
• The moderating effect of family ownership on the relationship between firms' characteristics and dividends: evidence from Jordan  
  by Abdul-Hakim Joudeh, Sanad Abdallah, Mohammed Hassan Makhlouf 
  Abstract: The goal of the study is to find out how family ownership affects the relationship between company characteristics and dividends. To achieve the research objectives, a content analysis approach is adopted for a sample of 28 ASE-listed companies in Jordan during the period (20172021). The findings indicate an impact of the characteristics of the companies on the dividends, along with an impact of both the companys size and profitability on the dividends. The findings show no impact of financial leverage on dividends, with the absence of an impact of family ownership as a moderating variable in the relationship between company characteristics and dividends. Given these findings, this research recommends working on increasing dividends to shareholders when increasing the size of assets, considering the characteristics of companies when making decisions relating to dividends, and providing and displaying more detailed financial data on family ownership in an accurate manner in the annual financial reports.
  Keywords: firms' characteristics; dividends; family ownership; Amman Stock Exchange; Jordan.
  DOI: 10.1504/AAJFA.2026.10078253