International Journal of Financial Services Management (5 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