International Journal of Monetary Economics and Finance (19 papers in press)

Regular Issues

• Dynamic Behavior of Islamic Banking Financing in the Real Sector  
  by Faizul Mubarok, M. Nur Rianto Al Arif, Abdul Hamid 
  Abstract: One of the activities of Islamic banking is channeling financing to the real sector, comprising different characteristics, therefore appropriate management of the distribution process is needed. The purpose of this study is to analyze the effect of real sector financing on non-performing Islamic banking in the short and long terms and analyzes its response in facing real sector financing shocks. This study uses a Vector Error Correction Model with data collected monthly from Islamic commercial banks and business units from 2007 to 2020. The results showed no effect in the short term, with a significant effect in the long term on the industrial sector. Islamic banking stabilized the fastest when it responded to the agricultural sector financing shock. Furthermore, the transportation, warehousing, and communication sectors dominate the non-performing financing of Islamic banking, therefore a reserve fund is needed to create a portfolio and a priority scale.
  Keywords: Financing; Non-Performing Financing; Real Sector; Islamic Bank.
  DOI: 10.1504/IJMEF.2024.10057738
   
  
• A Correspondence Analysis on Dynamics of Local Gold Price among Major Consumer Economies During the Pre-Covid Period and the Pandemic Period  
  by SREEJITH S, Hareesh Ramanathan 
  Abstract: Gold is known as one of the precious metals The largest consumers of physical gold are China and India The consumer's attitude towards gold in these emerging markets for both consumption and investment is linked with their culture The price of gold in Indian and Chinese local markets mostly differs from International markets, either at a premium or at a discount price The recent economic slowdown during the outbreak of the covid19 also affected the investment preferences of investors, especially towards safe-haven investments However, due to the global pandemic, the demand for physical gold dropped to its lowest quarterly total since 2009 Social restrictions, economic slowdown, and strong gold-price are contributed to the same The premium or discount offered to gold prices in the local market also gives leverage for the economy to perform The study compares the strategies adopted by the largest consumer markets of gold.
  Keywords: Gold Price; Premium Gold Price; Discount Gold Price; Pandemic; Covid19; Correspondence Analysis.
  DOI: 10.1504/IJMEF.2024.10059847
   
  
• THE IMPACT OF OWNERSHIP CONCENTRATION ON BANK STABILITY: EVIDENCE FROM VIETNAMESE COMMERCIAL BANK  
  by Chi Diem Ha Le, Nam Hai Pham 
  Abstract: The article uses data from 27 Vietnamese commercial banks from 2011 to 2021 to examine the impact of concentrated ownership on bank stability. In the research model, in addition to the ownership concentration variable, represented by the largest shareholder rate, the control variables include the bank-specific variables, the macroeconomic variables, and the variables that describe the quality of regulation and supervision by the State. The dependent variables use credit risk, and the Z-score represent calculated based on ROA and ROE. By the SGMM estimation method, the research results show that highly concentrated ownership positively impacts bank stability. The study's findings highlight the role of ownership concentration, as an effective governance mechanism, in increasing supervision and the discipline of administrators to avoid excessive risk-taking and maintain banking stability.
  Keywords: Ownership concentration; Bank stability; Z-score; Credit risk.
  DOI: 10.1504/IJMEF.2025.10070302
   
  
• The good, the bad and the ugly: A policy debate on the political budget cycle in India with an ARDL model  
  by Prashant Ishvarlal Vadikar 
  Abstract: Fiscal tools can be used to signal voters mainly spending by the incumbents; this study attempts to verify empirically the same in the Indian general election during 1980-1981 to 2020-2021. The study has used the autoregressive distributed lag model to find evidence of the presence of a political budget cycle (PBC). The study assessed the stationarity of the series, selected the lag-length criteria, and even performed the diagnostic test to verify the credibility of the model. There is clear evidence of the presence of the electoral cycle in the pre-election budget, and the outcome seems to be aligned with past empirical studies. The incumbent influences the capital expenditure for the long run and revenue expenditure for the short run before the election year. The Fiscal policy has reduced non-development expenditure in long run; otherwise, the fiscal tools remained insignificant. The study suggests encouraging voters awareness to enrich their voting decisions.
  Keywords: public finance; fiscal tools; PBC; political budget cycle; government policy.
  DOI: 10.1504/IJMEF.2025.10072504
   
  
• Do central bank governors characteristics matter for sovereign credit ratings? Evidence from emerging markets  
  by Rim Oueghlissi 
  Abstract: We examine whether a countrys central bank governors characteristics matter for its sovereign credit ratings. Using a panel regression model over a dataset of 20 emerging economies from 2000 to 2019, we show that central bank governors characteristics could play a crucial role in assessing sovereign ratings. In particular, we find that when the central bank governor is old, there is a positive effect on sovereign credit ratings, and the same is true for tenure. When considering academic and professional background, we show that being specialised in the area of finance and having previous experiences in a bank, in a ministry or in a public institution contribute to attaining higher sovereign credit ratings. The results are economically relevant in the sense that they could matter to both investors and national policy makers.
  Keywords: sovereign credit ratings; central bank governor’s characteristics; emerging market; panel data analysis; fixed effects model; low and lower middle-income economies; upper-middle-income economies; global financial crisis.
  DOI: 10.1504/IJMEF.2025.10072570
   
  
• Factors influencing FinTech adoption among Malaysian consumers: the moderating role of FinTech literacy  
  by Mohamad Fazli Sabri, Siong Hook Law, Chong Kok Fei, Anthony Ang Sang Nang, Husniyah Abdul Rahim, Mervin Anthony 
  Abstract: This study explores the factors influencing FinTech adoption among various demographic groups in Malaysia, including public and private sector workers, rural residents, and youths. It also examines the moderating role of FinTech literacy using an integrated framework based on systems theory and the unified theory of acceptance and use of technology (UTAUT). Employing a quantitative approach with survey data and structural equation modelling, the findings show that while FinTech literacy improves awareness and access, it may also increase reliance on traditional banking due to security concerns, regulatory uncertainties, and a preference for personalised services. The study reveals a non-linear relationship between financial literacy and FinTech adoption, challenging traditional assumptions about digital finance behaviour. It offers policy recommendations to enhance consumer protection and develop FinTech solutions. The research highlights the need for building digital trust, strengthening security features, and promoting hybrid financial models that merge traditional and digital financial services.
  Keywords: financial capability; FinTech; investment; literacy; risk; social influence.
  DOI: 10.1504/IJMEF.2025.10072690
   
  
• Distributional effects of monetary policy on wealth inequality in developing Asia  
  by Warawut Ruankham, Yuthana Sethapramote 
  Abstract: Building upon research primarily conducted in more advanced economies, this study broadens the investigation of the distributional effects of monetary policy and wealth inequality in developing Asia, with a specific focus on long-term cointegration between monetary policy and inequality. Utilising inequality data from the World Inequality Database during 20002021, we provide a comprehensive examination of the distributional effects of monetary policy on wealth inequality in nine developing countries in Asia who adopted inflation targeting monetary policy framework. Employing the Panel Vector Auto Regressive and the Auto Regressive Distributed Lag models, our findings reveal that expansionary monetary policy, characterised by lower interest rates and higher inflation, exacerbates long-term disparities in personal wealth. These results underscore the importance of central banks addressing the distributional consequences of their policies and incorporating inequality considerations into their long-term monetary objectives.
  Keywords: monetary policy; distributional effect; wealth inequality; time series analysis; developing Asia; panel VAR.
  DOI: 10.1504/IJMEF.2025.10072733
   
  

Special Issue on: SIBR 2023 Post -pandemic Business Strategies and Policies in Emerging Markets

• Analysis of the Level Readiness and Acceptance Bravo Technology with the Technology Readiness and Acceptance Model (TRAM) Approach (Case Study in Financial Firm)  
  by Maghfur Rozudin, Udisubakti Ciptomulyono, Jani Rahardjo, Muhammad Ainul Fahmi 
  Abstract: The successful implementation of a new technology can never be separated from the user readiness and acceptance. This study aims to analyze the level of readiness and acceptance technology. It was found that 11 hypotheses were accepted, 5 were rejected. Positive factor of TRI significantly affects PU, but only the Innovativeness variable has a significant effect on PEOU. Negative factors do not have a significant influence. External factors have a significant influence on PEOU. Research using TRAM has never been carried out in multifinance, so the results are expected to be input for companies as technology improvements in the future.
  Keywords: TRI; TAM; TRAM; PU; PEOU.
  DOI: 10.1504/IJMEF.2025.10066237
   
  

Special Issue on: SIBR 2023 Post-pandemic Business Strategies and Policies in Emerging Markets

• Conservatism Culture, Earnings Management, and Corporate Governance: Studies on Asia Pacific Countries  
  by Anna Purwaningsih 
  Abstract: This study aims to investigate the effect of conservatism culture on earnings management practices, both accrual and real earnings management. In addition, this study also investigates corporate governance to the relationship between conservatism culture and earnings management. The research samples were eleven Asia Pacific countries from 2010 to 2019. The data were taken from the Bloomberg and Thomson Reuters databases. Hypothesis testing was done with Multiple Linear Regression. The results provide empirical evidence that: (1) the conservatism culture has a positive effect on accrual (real) earnings management, and (2) corporate governance weakens the positive relationship between conservatism culture and accrual (real) earnings management practices. Therefore, these test results confirmed consistency-built hypotheses.
  Keywords: conservatism; accrual earnings management; real earnings management; corporate governance.
  DOI: 10.1504/IJMEF.2024.10062536
   
  
• Asymmetric impact of COVID-19 on Thailand’s stock market volatility: an industry group analysis  
  by Surachai Chancharat, Areeya Wisamart 
  Abstract: This study investigates the effect of the COVID-19 outbreak on the industry group index in the Stock Exchange of Thailand. Daily data on confirmed cases and industry group indices were collected from January 1, 2020, to December 30, 2022. Using the EGARCH model, the results indicate that the agricultural, real estate, construction, resource, and service groups responded negatively to the increase in COVID-19 confirmed cases, leading to decreases in the stock returns for these industrial groups. Conversely, the technology group experienced a positive response, with stock returns increasing as the number of confirmed COVID-19 cases rose.
  Keywords: asymmetric volatility; COVID-19; emerging market; industrial group; Thailand.
  DOI: 10.1504/IJMEF.2025.10065220
   
  
• Effect of PFRS 15 Adoption on the Value Relevance of Selected Philippine Publicly-listed Companies’ Financial Ratios and Macroeconomic Attributes  
  by Lawrence J. M. Marcella, Patricia M. Empleo, Belinda Mandigma 
  Abstract: Ball and Brown (Aladwan, 2019) originated the research on value relevance. The study used a descriptive-correlational research design to analyze if the book value, earnings, dividends, firm size, firm growth, leverage, inflation rate, and GDP growth rate are value relevant. More so, it tested if the PFRS 15 adoption affected the stock price. The financial data from 58 publicly-listed companies went through fixed effect regression as statistical treatment. Results revealed that earnings per share and firm size are value-relevant with significant positive effect on the stock price, while the adoption of PFRS 15 has significant negative influence on it.
  Keywords: PFRS 15; value relevance; stock price; Ohlson price model.
  DOI: 10.1504/IJMEF.2025.10065221
   
  
• Disruptive Innovations Disclosure in the International Business System Groups  
  by Indrian Supheni, Nung Harjanto, Djoko Suhardjanto, S. Rahmawati, Agung Nur Probohudono, Yavida Nurim, Nur Rizki Wijaya 
  Abstract: This research aims to gain a more comprehensive insight into the urgency and different levels of disruptive innovation disclosure on companies that have a visualization network of cooperation among disruptive innovation countries in the international business system group. The data sample in this study total of 210 companies from 2015 to 2019 are subject to different tests to prove that the information presented by the company in the Disclosure of Disruptive Innovations every year is different and is expected to grow further and differently between the international business system groups. This research result shows that the company's information in the Disruptive Innovation Disclosures from 2015 to 2019 always increased positively. This research also reveals that there is a difference between the international business system groups. It addresses to gives a comprehensive insight into the role of additional voluntary reports in increasing the credibility of disclosed information consideration in decision-making.
  Keywords: disruptive innovations; disclosure; emerging market; communitarian; anglo-saxon.
  DOI: 10.1504/IJMEF.2025.10065758
   
  
• Connection between Green Microfinance and Social Entrepreneurship: An Investigation of Multigroup Analysis  
  by Min-Su Kim, Andrian D. Huruta 
  Abstract: This study examines how the green microfinance practices between both genders affect their social entrepreneurship. Purposive sampling was used in this study to gather samples from a women's microfinance group in Eastern Sumba. Partial least squares multigroup analysis (PLS-MGA) was employed for analysis in this study. Empirical evidence is presented in this study to support the favorable nexus between green microfinance and social entrepreneurship. The results indicate that both genders play a significant role in achieving sustainable social entrepreneurship through green microfinance practices. It is intended that the study's conclusions will assist those involved in creating and carrying out the nation's goal to encourage social entrepreneurs to operate at a considerably greater level.
  Keywords: Green Microfinance; Social Entrepreneurship; PLS-SEM; Multigroup Analysis.
  DOI: 10.1504/IJMEF.2025.10069291
   
  
• Economic Risk Management of Sugarcane Farmer’ Households in the Northeastern, Thailand.  
  by Wanichcha Narongchai, Piyada Naewprasert 
  Abstract: This paper examines the level of economic risk management and factor influencing of sugarcane farmers’ households in the Northeast, Thailand. The sample consisted of 384 sugarcane farmers’ households from Chaiyaphum, Khon Kaen, Nakhon Ratchasima, Udon Thani and Nongbua Lamphu. The finding revealed that sugarcane farmers’ households were at a relatively low and low level of the economic risk management (46.9 percent). Sugarcane cultivation area, production costs per hectare, the experience in sugarcane production, awareness of sugarcane production policy, and the highest years of education of the household members were significantly important factors for the economic risk management of sugarcane farmers’ household.
  Keywords: Risk Management; Economic Risk Management; Sugarcane Farming; Sugarcane farmers' Households.
  DOI: 10.1504/IJMEF.2025.10069292
   
  
• Impact of Engagement on Business Students’ Academic Performance  
  by Lina Anatan 
  Abstract: This study aims to investigate the impact of student engagement (behavioral, social, cognitive, and emotional engagement) on academic performance analyzed using Student Involvement Theory. Data was collected through an online survey, and the sample was selected through the purposive sampling method. By involving 118 students of the Faculty of Business, this study found that cognitive and emotional engagement significantly affect student academic performance, while behavioral and social engagement has no significant effect on student academic performance. Faculty of Business students were selected due to the consideration that they study business, finance, and economics which aim to provide an understanding of how to make decisions regarding economic action. It is expected that it may positively influence to analysis of the impact of engagement on academic performance. Study results are expected to provide insight to develop strategic policies that may increase student engagement and academic performance.
  Keywords: Student engagement; academic performance; student involvement theory; strategic decision-making.
  DOI: 10.1504/IJMEF.2025.10069293
   
  
• Measuring SMEs technical, cost and allocative efficiency and its determinants in South Africa  
  by Anthanasius Fomum Tita, Adefemi A. Obalade 
  Abstract: A question that has received little research in the empirical literature is whether small and medium-sized enterprises are efficient and what are the determinants of efficiency? We employ a two-stage efficiency analysis to measure the technical, cost and allocative efficiency of South African SMEs and their determinants. Our results showed that only 3.7% and 0.17% of the 588 SMEs analyzed are technically and cost-efficient respectively, with an overall average score for technical, cost and allocative efficiency of 84.7%, 70.8% and 94%. SMEs led by women are 3% more cost and allocation-efficient than SMEs led by men. Cost efficiency emerge as the biggest challenge for SMEs growth and survival while foreign ownership, experience, location are the major determinants of SME efficiency.
  Keywords: Technical; cost and allocative efficiency; non-parametric DEA and fractional regression.
  DOI: 10.1504/IJMEF.2025.10069294
   
  
• Power Distance and Gender Gap Perception on the Credit Risk of Rural Banks: Study of Social and Economic Mission of Indonesian Rural Banks  
  by Yavida Nurim, Nung Harjanto, Muhammad Yudhika Elrifi, Indrian Supheni, Nur Rizki Wijaya, Angelia Pribadi 
  Abstract: The Indonesian government has been trying to accommodate the needs of the micro, small, and medium enterprises (MSMEs) for legal financing. Indonesian rural banks (IRBs) as private bank - have social and economic missions to accommodate it. Consequently, a good relationship between the IRB's management and its customers, namely MSMEs, impacts its financial performance. It be built from organizational culture, such as power distance and gender equity. This study uses primary data from a questionnaire and secondary data from Indonesian rural banks’ financial reports for 2016 - 2019. The smaller the gap between superiors and subordinates and the smaller the gap between genders will decrease the credit risk. A good atmosphere in an organization encourages the members to pursue the organization’s goal rather than the individual’s. This study contributes to the cognitive social theory, namely the social environment around individuals, which plays a role in cognitive development and individual behavior.
  Keywords: power distance; credit risk; Indonesian rural bank; gender equality; social mission.
  DOI: 10.1504/IJMEF.2025.10069295
   
  

Special Issue on: SIBR 2023 Post-pandemic Business Strategies and Policies in Emerging Markets

• Influence of managed and unmanaged operating and financial performance on firm value  
  by I. Putu Sugiartha Sanjaya, Si Made Kanaka Putri Jelantik Padma Sanjaya, I. Gede Siswantaya 
  Abstract: This study empirically examines whether managed and unmanaged operating and financial performance influence firm value. Managed operating and financial performance proxied return on assets (ROA) and return on equity (ROE). Unmanaged operating performance is ROA minus accrual and real earnings management. Unmanaged financial performance is ROE minus accrual and real earnings management. This study uses Tobin’s Q to measure firm value. Data is collected from the Indonesia Stock Exchange (IDX) and yahoofinance.com. This study uses a purposive method for manufacturing companies at the IDX from 2018 to 2020 and provides empirical evidence that managed operating and financial performance does not influence firm value. Unmanaged operating performance positively influences firm value. The implication of this study for the international market is that investors in the global capital market should be more prudent when analysing financial reports related to company performance, which contain choices of accounting policies and real activities with opportunistic intentions.
  Keywords: managed; unmanaged; operating; financial; firm value.
  DOI: 10.1504/IJMEF.2025.10071710
   
  
• Fraud detection in local government in Indonesia  
  by Navira Erliani, Einde Evana, Lindrianasari, Rindu Rika Gamayuni 
  Abstract: This study aims to test the influence of the hexagon fraud theory on fraud in local government. The sample for this study consists of districts and cities in Indonesia. The results indicate that all independent variables pressure, opportunity, rationalisation, capability, arrogance, and collusion significantly influence fraud in local government in Indonesia. This study is expected to evaluate and identify mitigation efforts for potential factors that contribute to the occurrence of fraud. Finally, we conclude that the Fraud Hexagon model developed by Vousinas is very effective for detecting fraud in government, especially in Indonesia.
  Keywords: fraud; fraud hexagon; local government.
  DOI: 10.1504/IJMEF.2025.10072427