International Journal of Financial Services Management (9 papers in press)

Regular Issues

• Do CSR committee characteristics matter for climate change performance?  
  by Ahmed Oussii, Maher JERIJI, Mouna Abdennadher 
  Abstract: This study investigated the impact of CSR committee attributes on corporate climate change performance in the French setting. Data were collected for a sample of 77 nonfinancial French-listed firms for a period six years (20172022). The findings show that corporate environmental performance increases with CSR committee size, meeting and women representation. We also found evidence supporting agency theory and resource dependence theory. This study contributes to the ongoing debate on the determinants of firms climate change performance by examining the effect of CSR committee characteristics on firms climate change performance in France as a developed market worldwide. It also reinforces the initiative undertaken worldwide to promote environmental disclosure and performance. Our findings provide useful insights for regulators and stakeholders concerned with corporate governance and climate change to assess CSR committee effectiveness in reducing carbon emissions and ensuring environmental performance.
  Keywords: CSR committee; carbon emission; corporate climate change performance; CDP; France.
  DOI: 10.1504/IJFSM.2025.10074914
   
  
• Impact of Stock Market Capitalisation on Firm Performance: Revisiting the European Firms  
  by Nafisa Ahmad, Tanzina Akhter, Paolo Saona, Mohammad Zahir Raihan, Md. Abul Kalam Azad 
  Abstract: This study seeks to rigorously re-examine the intricate relationship between stock market capitalization and corporate performance within the European context, contributing to the existing corpus of literature on market capitalization and financial growth. In the methodology, we employ the fixed effects model to investigate the micro- and macroeconomic effects within each country's economy. The analysis is based on a dataset drawn from selected European countries covering the period from 2010 to 2020. To control for company-level metrics, we utilize data from the Heritage Foundation's Index of Economic Freedom. We validate model robustness checks by means of two-step system GMM estimation. As we uncover relationships between stock market capitalization and corporate performance, we witness surprisingly little interest that researchers in the field display. To test further, we inspect the impact of equity market capitalization on GDP growth using regulatory and institutional indicators as context variables. The results reveal that the performance of individual firms significantly influence the macroeconomic discussion in a novel way.
  Keywords: stock market capitalisation; firm growth; firm performance.
  DOI: 10.1504/IJFSM.2025.10074915
   
  
• Transformation of financial audit in the digital age in the Tunisian context  
  by Feten Arfaoui 
  Abstract: Financial auditing plays a crucial role for businesses and organisations in ensuring the transparency and accuracy of their financial statements. However, with the advent of new technologies, this traditional practice has been significantly transformed and enriched. The exploratory study aims to provide insights into how the digital transformation is reshaping financial auditing practices specifically within the Tunisian context. It seeks to contribute to the understanding of the opportunities and challenges posed by new technologies in enhancing audit effectiveness and maintaining financial transparency. Tunisian financial auditors already use some new technologies; however, they all recognise the importance of integrating more new technologies into their audit processes
  Keywords: audit; digitalisation; transformation; performance; Tunisian context.
  DOI: 10.1504/IJFSM.2024.10075048
   
  
• Auditors perceptions of the impact of digitalisation on the audit profession  
  by Yosr Ben Ghalba, Salma Damak Ayadi 
  Abstract: The paper examines the causal relationship between technological progress and the development of the external audit profession. It aims at empirically testing the use of new technologies (Data analysis software and the communication platforms) and its impact on external audit firms. This research is based on a questionnaire of 180 auditors conducted during the second half of 2021. Our results show that the effects of digitalization on the tools and working methods of the external audit profession are positive. Firms that operate in a technologically developed environment have adopted new professional practices which have been prominent since the Covid 19 crisis. Emphasizing the crucial role of adopting modern communication and data analysis tools, this study underscores the imperative for audit firms to stay current with IT advancements to ensure competitiveness and operational sustainability. This research provides an opportunity to delve into the current technological landscape post-pandemic, alongside the challenges and outlooks of auditors concerning technological evolution. .
  Keywords: audit; audit profession; digitalisation; technologies; communication tools; data analysis tool; big data; data analytics; COVID-19.
  DOI: 10.1504/IJFSM.2025.10075115
   
  
• Climate risk and bank performance: does income diversification matter?  
  by Haykel Zouaoui, Faten Zoghlami 
  Abstract: The purpose of this paper is to examine the effect of climate risk on banks' performance and to what extent income diversification strategy can be seen as a tool that banks can integrate into their risk management system to mitigate the negative effects of climate change. To do this, we rely on a sample of commercial banks from 16 European countries during the period 2007-2019. We employ the climate risk index as developed by Germanwatch to proxy the extent of damages resulting from extreme weather occurrences at the country level. Our findings suggest that climate risk has a negative impact on banks' performance. In addition, we document that the negative effect of climate risk is lower for banks with higher level of income diversification. The findings of this paper may have significant implications for policymakers and regulators.
  Keywords: climate risk; income diversification; banking performance; European banks; dynamic panel; GMM-SYS.
  DOI: 10.1504/IJFSM.2025.10075278
   
  
• Does financial inclusion impact environmental sustainability?  
  by Rania Makni, Ezzeddine Delhoumi 
  Abstract: This study examines the impact of financial inclusion on carbon dioxide (CO₂) emissions using quantile regression panel data for 97 countries from 2004 to 2020. A three-step Principal Component Analysis (PCA) is employed to construct a multidimensional index encompassing conventional, digital, and microfinance inclusion. Results reveal a non-linear relationship between financial inclusion and CO₂ emissions, varying across income levels and emission quantiles. In the short term, financial inclusion increases emissions, whereas in the medium and long term, it contributes to reductions, though effects are not significant at the 75th quantile. Additionally, higher GDP per capita and urbanization raise emissions, while greater energy productivity and renewable energy consumption lower them. These findings highlight the need for financial policies that promote inclusion while supporting environmental sustainability, emphasizing tailored strategies aligned with different income levels and emission quantiles.
  Keywords: carbon emissions; financial inclusion; quantile regression; income level.
  DOI: 10.1504/IJFSM.2025.10075947
   
  
• Impact of quantitative easing by USA and UK on Indian rupee volatility  
  by Manjinder Kaur, Navpreet Kulaar 
  Abstract: This paper aims at exploring the impact of Quantitative Easing by USA and UK on Indian rupee exchange rate volatility using monthly observations covering the period from January 2001 to March 2021. For evaluating this phenomenon, an examination of stationarity has been made for each of the time series considered and then cointegration between Indian rupee volatility and USAs and UKs measures of quantitative easing has been assessed through Johansen approach and finally this impact has also been verified through regression analysis. The study reveals that nearly two-third of the variations in Indian rupee volatility have been explained jointly by the variations in interest rate and money supply of both USA and UK. The study establishes that quantitative easing in advanced trading partner nations contributes towards volatility of Indian rupee exchange rate.
  Keywords: quantitative easing; interest rate; Indian rupee volatility; money supply.
  DOI: 10.1504/IJFSM.2025.10076260
   
  
• Bridging culture and transparency: environmental, social, and governance disclosure in the global banking landscape  
  by Vincenzo Pontrelli, Arcangelo Marrone, Nicola Raimo, Filippo Vitolla 
  Abstract: The increasing global emphasis on sustainability highlights the need for rigorous and transparent environmental, social, and governance (ESG) disclosure. As organisations operate within distinct institutional and cultural frameworks, national culture emerges as critical in shaping corporate disclosure practices. This study examines the effect of national culture on ESG disclosure quality in the banking sector. ESG disclosure is crucial in the banking sector because financial institutions drive sustainable development through their investment and lending decisions. Using a dataset of 498 banks from 42 countries across five regions, this study applies ordinary least squares regression to analyse how Hofstede’s six cultural dimensions influence banks’ ESG disclosure quality. Results indicate that individualism and masculinity negatively affect ESG disclosure quality, whereas uncertainty avoidance, long-term orientation, and indulgence have positive effects. Power distance does not significantly influence ESG disclosure quality. This study makes significant contributions to the literature and provides valuable practical implications.
  Keywords: banking sector; ESG disclosure; national culture; Hofstede; stakeholder theory.
  DOI: 10.1504/IJFSM.2025.10076382
   
  
• A bibliometric review on cryptocurrency market sentiment  
  by Salwa Salhi, Sourour Hazami-Ammar 
  Abstract: Market sentiment in the cryptocurrency market is a crucial determinant of price movements and investment strategies. This study conducts a bibliometric analysis to explore the relationship between investor sentiment, behavioural biases, and cryptocurrency market dynamics from 2009 to 2023. Utilising a dataset of 5,184 records from the Web of Science and advanced bibliometric tools (Citespace, VOSviewer, and Nvivo), we identify key research trends, influential contributions, and emerging areas of study. Our findings highlight that investor sentiment, herding behaviour, and social media influence play significant roles in shaping cryptocurrency prices. Additionally, momentum and contagion effects emerge as dominant factors, underscoring the presence of psychological biases in cryptocurrency trading. This study provides critical insights into the evolving landscape of digital finance by mapping research clusters and citation networks. The results reveal key gaps in the literature, such as the need for further research on sentiment-driven contagion, the role of alternative sentiment proxies (Google Trends, Twitter), and crossmarket influences. These insights offer valuable implications for academics, policymakers, and market participants by advancing the understanding of behavioural dynamics in cryptocurrency markets and guiding future research directions.
  Keywords: cryptocurrency market; contagion effects; momentum and overreaction effects; investor sentiment.
  DOI: 10.1504/IJFSM.2026.10076507