International Journal of Managerial and Financial Accounting (41 papers in press)

Regular Issues

• The impact of accounting comparability on classification shifting: evidence from UK companies  
  by Wiem Dridi 
  Abstract: This study examines the impact of accounting comparability on classification shifting in UK public firms. Using De Franco et al.’s (2011) comparability measure and McVay’s (2006) classification shifting model, we address a gap in existing literature by investigating this relationship. Our findings demonstrate a positive association between accounting comparability and classification shifting, confirming that comparable firms may engage in the misclassification of the income statement items to meet expectations while minimising the risk of detection. Additionally, the results indicate a negative relationship between accounting comparability proxies and discretionary accruals, providing evidence that comparability reduces the likelihood of firms engaging in accruals-based earnings management. This research contributes to understanding how accounting comparability influences earnings management practices, offering insights for policymakers and stakeholders aiming to improve financial statement transparency and reliability.
  Keywords: accounting comparability; classification shifting; earnings management; core earnings; non-recurring expenses.
  DOI: 10.1504/IJMFA.2025.10063994
   
  
• Drivers of and barriers to management accounting change in a fragile state: evidence from a field study  
  by Nikhil Chandra Shil, Mahfuzul Hoque, Mahmuda Akter 
  Abstract: This research attempts to identify the drivers of and barriers to management accounting change. It also aims to develop a role profile of management accountants and identifies required skills in the context of a fragile state, Bangladesh. Based on a semi-structured questionnaire survey, we adopt a quantitative approach of research paradigm to highlight the research objectives from selected research filed. Management accounting practitioners have been categorially selected from legitimate professional databases to participate in the survey. The data are analysed using different descriptive and inferential statistics relevant to our research goals. In absence of any previous study in this selected area, this study considers this as a research gap to contribute. The study adds value to existing body of literature theoretically and practically. The findings of the study will be helpful to management accounting regulators, practitioners and researchers.
  Keywords: management accounting change; MAC; role; skill; change drivers; barriers; fragile state.
  DOI: 10.1504/IJMFA.2025.10064458
   
  
• Capital structure, cost of funding and bank performance: a managerial compendium  
  by Federico Beltrame 
  Abstract: Using discounted cash flow (DCF) models and the internal rate of return (IRR) criterion, the paper conceptualises: 1) equity financing’s stand-alone effect on banks’ overall cost of capital, following Modigliani and Miller’s (MM) (1963) and Miles and Ezzell’s (ME) (1980) debt policies; 2) capital requirements’ effect on bank performance. First, the simulations indicate that: 1) overall, leverage negatively influences weighted average cost of capital (WACC); 2) at the pre-tax WACC level, the value irrelevance principle is satisfied under the ME financial policy when the rating based cost of debt is used; 3) under the ME financial policy and high levels of risky debt the cost of funding (post-tax WACC calculated using the bank specific cost of debt) increases more than proportionally as equity increases. Second, with IRR fixed on a determined allocation of risk capital, additional requirements cause an increase in banks’ performance with a higher franchise value net of taxes.
  Keywords: banks; leverage; debt benefits; WACC; capital allocated.
  DOI: 10.1504/IJMFA.2025.10064543
   
  
• Analysis of bank-specific determinants of stressed and non-performing assets in commercial banks: A TISM-MICMAC approach  
  by Vijay Kumar Sharma, Harish Kumar 
  Abstract: The network of well-functioning commercial banks in a country ensures financial stability and accelerates economic growth. Due to increasing non-performing assets (NPAs) and bad loans, the profitability of commercial banks is declining continuously which results in lower revenue and interest income of banks, raising operational costs and loss of assets. The financial crisis resulted in loss of assets of banks, the decline in the value of business, customer dissatisfaction, and slow business growth. Therefore, it is necessary to control NPAs to improve the financial ability of the banking system. The study identifies determinants responsible for NPA problems in commercial banks. The research deploys multi-criteria decision making (MCDM) techniques ‘total interpretive structural modelling’ (TISM) and ‘cross-impact matrix multiplication applied to classification’ (MICMAC) to develop a hierarchical model and to study the cross inter-relationship among these factors. The study finds two crucial paths which explain how NPAs problem can be controlled through improving ‘credit efficiency’ and ‘operational efficiency’. The proposed novel hierarchical model would enable practicing managers, service providers, financial consultants to plan better to enhance the credit risk management efficiency of financial institutions.
  Keywords: non-performing assets; NPAs; bank failure; operational efficiency; financial system; total interpretive structural modelling; TISM and MICMAC; multi-criteria decision making; MCDM.
  DOI: 10.1504/IJMFA.2025.10064544
   
  
• Employee’s compensation satisfaction and turnover intention in readymade garment industry: which role associated to organisational commitment?  
  by Sudin Bag, Akhund Ahammad Shamsul Alam, Amina Omrane 
  Abstract: The present study investigates the relationship between pay satisfaction and turnover intention of employees who are engaging in the readymade industry in Bangladesh. In addition, the effect of organisational commitment as a mediator in this relationship is also examined. A total number of 151 junior executives from 32 conveniently selected readymade garment factories in Bangladesh took part in the study. Findings supported that pay satisfaction, organisational commitment (affective, normative and continuance), and employees’ turnover intention were significantly correlated to each other. Moreover, results of the regression analysis revealed that pay satisfaction influenced both organisational commitment and turnover intention of employees. It was also found that only affective commitment mediates the relationship between pay satisfaction and turnover intention; whereas normative and continuance commitment have no mediating effect. Therefore, Industry managers and entrepreneurs are called upon to increase the pay satisfaction of their employees to upgrade their retention inside their organisation.
  Keywords: compensation satisfaction; turnover intention; affective commitment; normative commitment; continuance commitment.
  DOI: 10.1504/IJMFA.2025.10065068
   
  
• International Financial Reporting Standards adoption and accounting quality in emerging economies  
  by Musah Mohammed Saeed , Manisha Kumari, Mahalakshmi Mudliar 
  Abstract: Our study examines the impact of mandatory IFRS adoption on accounting quality in two emerging economies, specifically Ghana and Kenya. We propose that higher IFRS compliance enhances transparency and disclosure amid agency conflict, thereby improving accounting quality. The nexus between variables using the explanatory design is tested with random OLS techniques for inferential analyses. The data is purposely collected from 495 firm-year observations from 2010-2020, specifically from listed non-financial firms. Our findings demonstrate a positive and significant effect of IFRS adoption on accounting quality in those two emerging economies. This research offers valuable insights for policymakers in emerging economies, facilitating informed decisions, reviews, and evaluations to enhance the financial reporting environment.
  Keywords: IFRS adoption; accounting quality; International Accounting Standards; IAS; agency theory; emerging economies; Ghana Stock Exchange; GSE; Nairobi Securities Exchange; NSE.
  DOI: 10.1504/IJMFA.2026.10065520
   
  
• Connecting realms: investigating the interplay of financial and social inclusion in India  
  by Kashif Iqbal Siddiqui, Taufeeque Ahmad Siddiqui 
  Abstract: Financial and social inclusion are emerging as critical facilitators of economic growth and development that significantly drive away poverty. The purpose of this paper is to model and quantify the link between financial and social inclusion. Data were collected, and the hypotheses of this study were analysed using PLS-SEM through SmartPLS software. The findings from the study showed that financial inclusion has a significant and positive effect on social inclusion. Given the limited existing research on this topic, this paper contributes by establishing connections between distinct dimensions of financial and social inclusion, offering guidance for future research. The insights gleaned from this study can assist financial service providers, policymakers, and regulators in crafting more effective financial products and social inclusion policies aimed at serving marginalised communities.
  Keywords: financial inclusion; India; SmartPLS; social inclusion; structural equation modelling.
  DOI: 10.1504/IJMFA.2025.10065619
   
  
• Auditor reputation, audit report lag, and audit fees: an empirical study in Thailand  
  by Muhammad Syukur, Dio Alfarago, Riska Damayanti 
  Abstract: This study examines the impact of auditor reputation and audit report lag on audit fees, investigating 1,372 observations from 196 Thai-listed companies over the period 2013-2019. Key variables include the auditor’s name, reporting date, and audit fees. The findings reveal that both independent variables (auditor reputation and audit report lag) and control variables (client’s risk, firm size, and profitability) significantly affect audit fees. Non-Big Four auditors receive significantly lower fees compared to Big Four auditors, with one particular audit firm setting notably lower fees among reputable auditors. This pioneering research on Thai audit fee determinants offers policy recommendations for mandatory fee disclosure in annual reports and highlights the implications of audit fees within management.
  Keywords: audit fees; auditor reputation; Big Four; audit report lag; Thailand.
  DOI: 10.1504/IJMFA.2026.10066323
   
  
• Unlocking financial peaks: board and audit roles in the GCC  
  by Hajer Jarrar, Charbel Salloum, Adel F. Al Alam, Mohamad Baker Hamieh 
  Abstract: This research explores the intricate relationship between the board of directors and audit committees, and the subsequent financial performances of companies listed within the Gulf Cooperation Council (GCC). The study unveils a pivotal correlation between the characteristics of a companys board of directors and its financial prosperity. A noteworthy finding is the negative correlation between board size and financial performance, while board independence is positively associated with financial outcomes. Furthermore, the investigation sheds light on a complex interaction between audit committees and boards of directors. Enhanced board independence positively impacts the dimensions of audit committees, whereas an increased board size appears to diminish audit committee autonomy. Additionally, the research emphasises the critical role of audit committee composition in financial performance, revealing that an audit committee with greater autonomy is congruent with enhanced financial results. This study not only contributes to the existing body of knowledge regarding corporate governance and financial performance but also provides practical insights for GCC-listed companies in structuring their boards and audit committees to optimise financial performance.
  Keywords: board of directors; audit committees; GCC-listed companies; financial performance.
  DOI: 10.1504/IJMFA.2026.10066465
   
  
• Unlocking the potential: investigating key factors in adopting digital reporting effectively  
  by Sanjay Gupta, Meenu Gupta, Anchal Arora, Nidhi Walia 
  Abstract: In the age of rapid technological progress, digital corporate reporting has emerged as a crucial tool, offering timely, transparent information that fosters trust and informed decision-making in todays business landscape. This research seeks to identify and prioritise the key criteria and sub-criteria influencing organisations’ decisions to embrace digital corporate reporting. We selected a panel of 25 experts from leading NIFTY 50 firms using purposive sampling. Employing an empirical and descriptive research approach, we utilised the fuzzy analytic hierarchy process (fuzzy-AHP) technique to rank criteria and sub-criteria associated with digital corporate reporting adoption. Our findings highlight the critical role of the technological context (global weight 27.67%) influencing the adoption of digital reporting practices. Furthermore, the firms information environment (global weight 18.21%) and organisational context (global weight 17.83%) emerged as significant factors, emphasising their impact on the adoption process. Additionally, top five influential sub-criteria affecting digital reporting adoption are compatibility (global weight 0.0867%), corporate infrastructure requirements (global weight 0.0836%), complexity (global weight 0.0709%), reduced cost of capital (global weight 0.0542%), and improvements in the firm’ s stock liquidity (global weight 0.0523%). These findings offer actionable insights for organisations to effectively address these factors, thereby increasing the likelihood of successful adoption.
  Keywords: digital corporate reporting; extensible business reporting language; XBRL; compatibility; corporate infrastructure requirements; adoption decision; fuzzy analytic hierarchy process; fuzzy-AHP.
  DOI: 10.1504/IJMFA.2026.10066631
   
  
• Integrated reporting and financial performance: evidence from Portugal and Spain  
  by Carolina Costa, Inês Lisboa, José Luis Martins 
  Abstract: This work aims to evaluate the level of adherence to the information suggested by the international integrated reporting structure of the International Integrated Reporting Council (IIRC), by analysing financial reports information. Moreover, it intends to analyse the impact of this adherence on firms’ financial performance, using an econometric model. For it integrated reports of Portuguese and Spanish firms between 2019 and 2021 are analysed. Results show that most of the firms in the sample disclose information suggested by the IIRC's international integrated reporting framework. However, the level of adherence does not directly impact financial performance. At an indirect level, the presence of external verification of non-financial information by a Big Four auditor positively influences financial performance. These results can be supported by legitimacy and institutional theories, as companies may publish non-financial information to obtain legitimacy for their activity from the society due to growing social, political, and economic pressures.
  Keywords: IIRC; integrated reporting; financial performance; level of adherence; financial report information; non-financial information; Portugal; Spain; external verification.
  DOI: 10.1504/IJMFA.2026.10066797
   
  
• Exploring integrated reporting: sustainability, transparency, and regulatory frameworks a comparative analysis  
  by Abdullah E. Alajmi, Rasheed Alrashidi 
  Abstract: In an age marked by increasing corporate complexity, global interdependence, and rising stakeholder expectations for transparency and sustainability, the importance of corporate governance is crucial. This study explores the transformative impact of the integrated reporting (IR) framework and its significant implications for corporate governance practices. Through a detailed comparative analysis, we examine how organisations that implement IR principles differ in their corporate governance effectiveness, stakeholder engagement, and financial performance compared to those using traditional reporting standards. Our research investigates how IR improves transparency, accountability, and long-term value creation. Additionally, it addresses the challenges, incentives, and regulatory influences affecting the adoption and effective implementation of IR in corporate governance frameworks. By providing a thorough evaluation of the IR framework’s impact, this study offers valuable insights for corporate leaders, regulators, investors, and academics navigating the evolving field of corporate governance and reporting.
  Keywords: integrated reporting; sustainability reporting; transparency; regulatory frameworks; comparative analysis.
  DOI: 10.1504/IJMFA.2026.10066819
   
  
• The moderating effect of firm size on the relationship between corporate governance and firm performance  
  by Chien-Van Nguyen  
  Abstract: The purpose of the study is to evaluate the moderating effect of firm size on the relationship between corporate governance and the financial performance of enterprises listed on the Vietnam Stock Exchange in the period 2007 to 2020. The study uses the panel data regression methods such as pooled OLS, FEM and REM, and the feasible generalised least squares (FGLS) for corrections of the defects; it is evident that the listed companies are generally influenced by the government’s policies, there is a possibility of cross-sectional relationship among enterprises, especially large-scale enterprises that are likely to significantly influence on smaller enterprises, the panel-corrected standard errors should be performed to evaluate this effect. The research results show that the positivity of the board of directors promotes the business to be financially efficient, and this effect increases in larger enterprises. Furthermore, board education has a positive effect on firm profitability, and this effect becomes larger in large firms and smaller in smaller firms. The study also confirms that enterprises in favouring of debt and inflation all have a negative impact on financial performance.
  Keywords: governance; performance; cross-sectional; moderating effect.
  DOI: 10.1504/IJMFA.2026.10066856
   
  
• Whether innovation focused companies invest more in working capital: evidence from India  
  by Kumar Sanjay Sawarni, Sivasankaran Narayanasamy , Naresh Gopal, Ankur Shukla 
  Abstract: This research explores the differences in working capital management (WCM) practices between companies with a high innovation focus (HIFCs) and those with a low innovation focus (LIFCs). It investigates the impact of innovation on WCM and its components, such as inventory, receivables, and payables management. Using independent samples t-tests, the study compares WCM differences between HIFCs and LIFCs, while fixed-effect regression assesses the impact of innovation on WCM. The analysis covers 2,968 firm-years of Indian companies. The findings reveal that HIFCs invest more in working capital and exhibit longer cash conversion cycles (CCC), inventory days (IND), receivable days (ARD), and payable days (APD) compared to LIFCs. The study further demonstrates that enhanced innovation activities lead to longer CCC, IND, ARD, and APD. These insights can help managers integrate these factors into financial planning and budgeting processes, facilitating the efficient management of the financial and operational challenges posed by innovation.
  Keywords: working capital management; WCM; cash conversion cycle; inventory days; IND; accounts receivable days; ARD; accounts payable days; innovation; research and development; R&D.
  DOI: 10.1504/IJMFA.2026.10066880
   
  
• The Nexus between ownership structure and firm performance: the role of Big4 as moderator. A further analysis. Saudi evidence  
  by Ebrahim Mohammed Al-Matari 
  Abstract: This study examines how ownership structure and company performance interact. Its goal is to investigate how the Big Four moderates the link between ownership structure and company performance. Using information from annual reports and DataStream, the study population consists of 1,393 company observations from financial and nonfinancial enterprises. The study used ordinary least squares regression to assess direct and non-direct correlations. The results reveal that the ownership structure has a significant relationship with firm performance. Moreover, this study found that Big4 has a significant moderating effect on the effectiveness of ownership structure and a significant relationship with firm performance. This study provides novel perspectives on the relationship between ownership structure and business performance, and the potential impact of Big4 monitoring on ownership structure within an emerging economy.
  Keywords: ownership structure; firm performance; Big4; Saudi market.
  DOI: 10.1504/IJMFA.2026.10067034
   
  
• Auditor industry expertise in Italy: evidence from Big 4 Partners  
  by Tatiana Mazza, Stefano Azzali 
  Abstract: Auditor industry expertise is investigated from three lines of research areas: 1) transfer of auditor expertise, 2) effects of mandatory audit firm rotations; 3) effects of the adoption of international financial reporting standards and of strengthens of internal controls over financial reporting. Interviewing Big 4 partners in Italy, we learn that the area-level of industry expertise, differently from common law countries, complements the national-level, allowing for the transfer of tacit and codified knowledge among offices where the mandatory audit firm rotation cycle reduces the useful life and quality of office-level industry expertise. We learn that recent regulatory actions have increased the demand for task expertise but not industry expertise. Results could have implications: for regulator of European Union countries in the implementation of the mandatory audit firm rotation rule; for manager of audit firms in the decision of localization of offices and in their employees’ organization to improve audit quality.
  Keywords: auditor industry expertise; Big 4; interviews; mandatory audit firm rotation; Italy.
  DOI: 10.1504/IJMFA.2026.10067035
   
  
• Materialism and corporate social responsibility: the moderating role of boards characteristics and industry type  
  by Majid Ashrafi 
  Abstract: Despite the important role of corporate social responsibility (CSR) in the decision-making, it has always been influenced by the boards’ behavioural characteristics. The purpose of this study is to investigate the impact of the boards’ materialism on the social responsibility of the firm. The statistical sample of the study includes 85 companies listed in the Tehran Stock Exchange during the years 2019 to 2022. Multivariate linear regression model and cross-sectional data are used to test the hypotheses. The findings show that the boards’ materialism has a negative and significant effect on CSR. In addition, we find that the boards’ education mitigates and the boards’ tenure intensifies the negative effect of materialism on CSR. Moreover, the type of industry moderates the relationship between materialism and CSR. In fact, the results show that the materialistic directors are less willing to provide a clear and complete report on the company’s social responsibility.
  Keywords: materialism; corporate social responsibility; CSR; industry; board of directors.
  DOI: 10.1504/IJMFA.2026.10067139
   
  
• Green growth through fintech innovation  
  by Hajer Jarrar, Charbel Salloum, Adel F. Al Alam, Jean-François Verdie 
  Abstract: This study explores the impact of financial technology (fintech) on sustainable economic development in the Middle East and North Africa (MENA) region. Employing a longitudinal design, the research examines how fintech infrastructures, such as automated teller machines (ATMs), Secure Internet Servers, and the Findex Index, influence the green growth index (GGI). The findings indicate that secure internet servers positively impact green growth, whereas ATMs have a nuanced effect, potentially hindering sustainability under specific conditions. The findex index, a composite measure of financial inclusion, shows a robust positive relationship with GGI, underscoring the importance of financial inclusivity in promoting sustainable development. These results extend the dynamic capabilities theory, illustrating fintech's role in fostering adaptability and innovation in the financial sector. The study's implications for policymakers in the MENA region emphasize the need for robust digital infrastructure, supportive regulatory frameworks, and education on fintech's benefits for achieving sustainability goals. Future research should expand the range of fintech-related variables, incorporate qualitative studies, conduct comparative regional analyses, and focus on longitudinal impacts to better understand fintech's potential in driving sustainable development.
  Keywords: fintech; sustainable development; MENA region; financial inclusion; green growth index; GGI.
  DOI: 10.1504/IJMFA.2026.10067324
   
  
• Institutional ownership and earnings management of listed deposit money banks: evidence from an emerging economy  
  by Bashir Tijjani, Suleiman Yahaya Umaru, Faisal Abdullah Al Hudithi 
  Abstract: This paper examined the impact of institutional ownership (IO) on earnings management (EM) of listed deposit money banks (DMBs) in Nigeria. The study comprised all the listed DMBs in Nigeria, covering a range of 10 years (2010 to 2019). The data were extracted from the yearly reports and accounts of the banks within the observed period. The study employed the ordinary least square method of panel regression and fixed and random effects. The results confirmed a non-significant adverse effect between IO and EM of the sampled DMBs. Further, this study found that the control variables, leverage and firm size, significantly and positively impacted EM, while liquidity was revealed to have an insignificant negative impact on the EM of the banks. The Central Bank of Nigeria and other policymakers can use the insights from this study to tailor regulations that address the specific dynamics between institutional ownership and earnings management by encouraging transparency, setting reporting standards, and ensuring that regulatory frameworks consider the role of institutional investors.
  Keywords: earnings management; EM; institutional ownership; IO; firm size; FSize; leverage; LEV; liquidity; LIQ; Nigeria.
  DOI: 10.1504/IJMFA.2026.10067325
   
  
• The board characteristics and bank risk-taking: the role of political connection  
  by Nam Pham Hai, Chi Le Ha Diem  
  Abstract: The study evaluated the impact of board characteristics on the risk-taking of commercial banks in Vietnam and specifically considered the role of political connection as one of the effects of board characteristics on risk-taking. Data in the study was collected from financial statements and annual reports of 27 commercial banks in Vietnam in the period 2012 - 2022. Using Pooled OLS, FEM, REM, FGLS, SysGMM regression methods, the research results show that political connection, board size, CEO duality are factors affecting the risk-taking of commercial banks in Vietnam. Besides, bank size and GDP growth are control variables that impact bank risk-taking. The research results suggest some policies for the Government on political connection factors in boards of directors.
  Keywords: commercial bank; political connection; risk-taking; Vietnam.
  DOI: 10.1504/IJMFA.2026.10068309
   
  
• Free risk-bearing capacity under liquidity aspects  
  by Dietmar Ernst, Alicia Sinsel 
  Abstract: The transformation of entire industries, global crises, and increasingly detailed legal requirements and auditing standards for risk control require companies to know and analyse their free risk-bearing capacity. Free risk-bearing capacity is the maximum amount of risk that a company can bear without endangering its continued existence. However, companies lack scientific approaches for the practical fulfilment of these requirements. The objective of this paper is to develop and apply a concept that enables companies to measure and obtain a picture of their free risk-bearing capacity. We focus on corporate liquidity and present two variants for deriving free risk-bearing capacity and detecting insolvency risks. Variant 1 uses liquidity in a narrow sense and refers directly to net cash flow and liquidity ratios. Variant 2, on the other hand, uses liquidity in a broad sense, based on a rating concept. Both concepts lead to similar results in the application example. This approach therefore helps to systematically combine risk management, business and financial accounting and significantly improve the ability of companies to recognise and manage liquidity risks when various corporate risks occur simultaneously.
  Keywords: free risk-bearing capacity; liquidity; insolvency; insolvency probability; risk-bearing capacity; simulation-based planning.
  DOI: 10.1504/IJMFA.2026.10068546
   
  
• The impact of audit oversight on price ratios, stock returns, and institutional ownership  
  by Rebecca Abraham, Arti Chandani, Mohit Pathak, Prashant Ubarhande 
  Abstract: Audit committees hire audit firms to uncover material misstatements and earnings management in financial statements. Audit committees report the audit findings and corrective action to the rest of the board. Effective audit oversight is effective governance in that it increases management accountability. This study uses audit oversight to predict 1) price ratios including the price-earnings ratio, the price-to-sales ratio, and the price-to-book ratio, 2) stock returns, including holding period return, volatility of holding period returns, and stock price volatility, and 3) institutional ownership in U.S pharmaceutical and energy firms from 2010-2022. Audit oversight quality significantly reduced price to sales, decreased holding period returns, decreased price volatility, and significantly increased institutional ownership suggesting that the immediate consequence of increased audit oversight is the reduction of overstated price ratios and returns. The restoration of these financial measures to realistic levels attracts investor interest in purchasing these securities.
  Keywords: audit committee; price to sales; price to book; institutional ownership; holding period return.
  DOI: 10.1504/IJMFA.2026.10068615
   
  
• Evolving financial auditing standards: overcoming unforeseen challenges in a dynamic global economy  
  by Assyad Al-Wreiket, Adel Almasarwah , Shakil Rahman, Arturo Capasso, Charbel Salloum 
  Abstract: This paper examines the complexities auditors face when adapting to unforeseen challenges, including regulatory changes and shifting economic landscapes. The study emphasises the importance of proactive risk assessments, flexible auditing methodologies, and the integration of technology into remote auditing practices. Through semi-structured interviews with auditors, financial managers, and general managers across 15 countries, this research explores how auditing standards were reshaped in response to regulatory guidance from key bodies, such as the Financial Reporting Council (FRC) in the UK, the Public Company Accounting Oversight Board (PCAOB) in the US, and the International Auditing and Assurance Standards Board (IAASB). These regulatory bodies issued updated guidelines to accommodate new risks and uncertainties during the pandemic, prompting significant shifts in audit practices across Europe, North America, and the Middle East. Findings reveal that auditors must balance traditional audit integrity with modern innovations, such as digital tools, to maintain audit quality. This research provides insights into the resilience of auditing standards amid evolving global conditions, offering practical recommendations for auditors, regulators, and policymakers.
  Keywords: auditing standards; risk assessment; remote auditing; audit quality; financial audit; economy shifting.
  DOI: 10.1504/IJMFA.2026.10068909
   
  
• Carbon emission disclosure, green innovation, labour practices and decent work on the cost of equity: the role of good corporate governance as a moderating variable  
  by Marannu Paledung, Darwis Said, Afdal Madein 
  Abstract: This research was designed to examine the effect of carbon emission disclosure (CED), green innovation (GI), and labor practices and decent work (LA) on the cost of equity (COE) with good corporate governance (GCG) as a moderating variable. The research samples included 74 mining and manufacturing firms listed on the Indonesia Stock Exchange between 2021 and 2022. The result suggests that CED, GI, and LA have a negative effect on COE. GCG moderates the effect of COE and GI on COE. However, GCG does not moderate the effect of LA on COE. The results of the implied research contribute to the theory of the development of COE. Empirical evidence regarding several factors affecting COE can be a reference in further research. Furthermore, this research contributes to mining and manufacturing firms in Indonesia in terms of how to reduce COE.
  Keywords: carbon emission disclosure; cost of equity; green innovation; good corporate governance; labor practices and decent work.
  DOI: 10.1504/IJMFA.2026.10068943
   
  
• Unveiling the connection: R&D expenditure and earnings management in Indian pharmaceutical sector  
  by Sushma Vishnani, Meena Bhatia, Nidhi SIngh 
  Abstract: This study unveils the connection between research and development (R&D) spending and earnings management (EM) practices for pharma companies in India. It examines this connection through two models: the accruals model and the real activities-based EM through the real activities’ modification model. The Modified Jones model is utilized to evaluate accruals-based earnings management, and multiple regression modelling is used to examine the impact of R&D expenditure on discretionary accruals. The data for the study is from 2015-23, with 504 firm-year observations. Research findings confirm the existence of accrual-based EM and a significant indication of real EM by pharma companies using discretionary R&D expenditure. The outcomes are relevant to researchers probing R&D's implications and scholars studying earnings management. They are also pertinent for regulators concerned about EM practices and other stakeholders investigating firms' financial reporting practices with substantial R&D expenditure.
  Keywords: earnings management; accruals-based earnings management; pharmaceuticals; discretionary accrual; real earnings management; reporting quality; India.
  DOI: 10.1504/IJMFA.2026.10068977
   
  
• Fintech to improve service division efficiency in Indian private general liability insurance providers  
  by S. Baby Latha, C.D. Nandakumar , A. Saibulla 
  Abstract: The primary goal of this study is to assess and evaluate the performance of Indian private general liability insurance businesses by incorporating Financial Technology (FinTech) to enhance their financial health, marketability, and client satisfaction. This research demonstrates the relative efficiency of multiple service units across different private general insurance companies by implementing a FinTech-augmented three-stage Data Envelopment Analysis (DEA) model. The first stage analyzes companies’ financial stability using FinTech-driven approaches within DEA’s CRS and VRS models, identifying more financially efficient firms. The second stage investigates the marketability of general insurance companies, highlighting the effectiveness of newer firms in utilizing FinTech to streamline insurance product sales. Finally, the third stage assesses the relative efficiency of insured satisfaction through a FinTech-enabled DEA open system approach, revealing that only one company excels in fulfilling client satisfaction. This study provides insights into how FinTech integration can enhance the overall efficiency and performance of the service industry within the insurance sector.
  Keywords: financial service sectors; data envelopment analysis; DEA; efficiency; financial stability; marketability; insured satisfaction; India.
  DOI: 10.1504/IJMFA.2027.10069176
   
  
• Financial evolution in banking industry development through comparative analysis of pre- and post-mergers and acquisitions  
  by Vanam Sreedevi , I. Mohana Krishna 
  Abstract: This study compares pre- and post-M&A banks’ financial ratios and performance measures to see how they have changed. In four-time periods two years before and two years after the mergers five banks ’ data shows how M&A affects financial performance. Before the merger, efficiency ratios were similar with slight differences, but afterward, some banks had much greater efficiency ratios. Profitability contour plots demonstrate a bigger area of increased profitability following the merger, indicating higher revenue and net income and an improved financial situation. In the average revenue analysis, most banks’ enterprise revenue rises after the merger. The changes in financial ratios, including ROA, ROE, EPS, cost to income ratio, efficiency ratio, and capital adequacy ratio, also showed improved post-merger profitability, operational efficiency, and financial stability. However, the analysis reveals that banks perform better financially after M&A. Success depends on post-merger integration plans and operational synergies. It shows how strategy affects banking mergers and acquisitions’ financial results.
  Keywords: mergers and acquisitions; M&A; banking sector; financial performance; profitability; efficiency; market share; financial evolution; strategic moves.
  DOI: 10.1504/IJMFA.2027.10069538
   
  
• Moderating or Mediating Effects? Corporate governance mechanisms towards earnings management  
  by Hazami Ammar Sourour, Malika NEIFAR 
  Abstract: This study investigates the dual nature of earnings management (EM) opportunistic or beneficial across 88 French companies over a five-year period (20092013). Using 440 observations, it examines the impact of internal audit function quality (IAQindex) and audit committee effectiveness (ACE) on EM, employing GMM dynamic linear regression for abnormal accruals (AbnAccr) and nonlinear regression (logit and probit) for exceeding zero profit (RT1) and last year’s profit thresholds (RT2). The results reveal that AbnAccr and RT1 positively impact firm value, while RT2 lacks a significant relationship. The likelihood of RT1 and RT2 occurring is 85.11% and 60.79%, respectively. IAQindex acts as a moderator, reducing positive accruals, while ACE mediates a significant positive effect on EM. These findings challenge the negative perception of EM by highlighting its potential benefits and underscore the critical role of corporate governance mechanisms in enhancing earnings quality and financial reporting transparency.
  Keywords: moderating effect; mediating effect; corporate governance mechanisms; earnings management.
  DOI: 10.1504/IJMFA.2026.10069565
   
  
• An empirical correlation between types of organisational culture and internal audit effectiveness  
  by George Drogalas, Petros Lois, Alkis Thrassou, Eleni Kourti 
  Abstract: This paper contextually underscores the importance of organisational culture, its reflection on business practices, interaction relations, human resource structure, and its influence on overall operational efficiency. Recognising in parallel the necessity of effective internal audit for business prosperity, across the scope of economic sectors, the research empirically examines the correlation between four distinct organisational culture types and internal audit effectiveness. Methodologically, a survey-based study was conducted in Greece, utilising the statistical packages of SPSS and SmartPLS to capture relationships, correlations and the impact of independent variables. A partial least squares structural equation model (PLS-SEM) was also constructed to dynamically represent variable relationships, alongside a linear regression analysis. The findings present a statistically significant positive relationship between the types of organisational culture that give emphasis to hierarchy (mainly), rationalised/streamlined action, team and the effectiveness of internal audit, while the effect of developmental organisational culture was found to not be significantly related to high levels of internal audit effectiveness (IAE). This study fills an important gap in scientific knowledge by uniquely researching the afore-described relationships against the individual types, and it offers added value through future research avenues and practicable executive implications.
  Keywords: internal audit effectiveness; IAE; organisational culture; rational culture; hierarchical culture; team culture; developmental culture.
  DOI: 10.1504/IJMFA.2027.10069639
   
  
• Exploring the influence of financial and macroeconomic factors on financial distress: insights from service sector firms in India  
  by Soumya Ranjan Sethi, Dushyant Ashok Mahadik 
  Abstract: Financial distress is a severe social and economic issue that threatens the stability of firms in any country. The study aims to check the impact of financial variables and macroeconomic factors on financial distress. Additionally, we do sensitivity analysis to determine the important predictors in our study. We have taken 42,900 firm years of non-financial service sector firms of India for the 2012 to 2022 time period. Financial distress is our dependent variable, whereas five important financial ratios and three macroeconomic variables are independent variables. The results found that all the macroeconomic factors are insignificant, but the financial variables significantly impact financial distress. From the sensitivity analysis, we found that the quick ratio is the most important predictor. Since macroeconomic variables do not seem to have much effect on Indian service sector enterprises’ financial distress predictions, these companies should place more emphasis on financial variables. The study’s findings will help managers, investors, regulatory and corporate agencies, and shareholders in India’s service sector companies and all corporate entities in India to manage their interests better.
  Keywords: financial distress prediction; logistic regression; sensitivity analysis; macroeconomic factor; forecasting; India.
  DOI: 10.1504/IJMFA.2026.10069640
   
  
• The impact of sustainable reporting on ESG controversies: evidence from the European Union and implications for CSRD implementation  
  by Nawazish Mirza, Monica Violeta Achim, Samuel Ribeiro-Navarrete 
  Abstract: This study examines how sustainability reporting affects ESG controversies, using panel data from EU companies between 2017 and 2023. The findings indicate a positive relationship between transparent disclosures and ESG controversy scores. This suggests that firms committed to sustainability reporting manage ESG risks more effectively, reducing the likelihood of controversies. Based on these findings, we emphasise the role of structured reporting frameworks in promoting responsible corporate behaviour, contributing to a more resilient and sustainable business environment across the EU. These results have important policy implications for the Corporate Sustainability Reporting Directive (CSRD), which aims to standardise reporting practices across the EU. We argue that the comprehensive disclosure requirements of the CSRD can enhance transparency and accountability, helping firms align more closely with EU sustainability goals.
  Keywords: sustainability reporting; non-financial disclosure; ESG controversies; Corporate Sustainability Reporting Directive; CSRD.
  DOI: 10.1504/IJMFA.2027.10069695
   
  
• Enhancing SME competitiveness with FinTech  
  by Charbel Salloum, Makram Chemangui, Hajer Jarrar, Adel F. Alam, Youcef Meriane 
  Abstract: This study investigates the transformative impact of financial technology (FinTech) on the operational efficiencies of small and medium sized enterprises (SMEs) in the Middle East and North Africa (MENA) region. It examines how cultural factors influence FinTech adoption and effectiveness, with a focus on power distance, individualism, uncertainty avoidance, masculinity, long-term orientation, and indulgence. The study employs the theory of reasonable action to explore the interplay between technology and culture, offering a comprehensive understanding of FinTech’s role in enhancing SME competitiveness, innovation, and job creation. Key challenges identified include limited digital literacy, regulatory barriers, and the lack of tailored FinTech solutions. By providing empirical data on FinTech’s advantages and disadvantages, the research contributes to the existing knowledge base, highlighting the effects on market competitiveness, efficiency, regulatory frameworks, and funding availability. The findings offer valuable insights for policymakers, business leaders, and FinTech developers to create supportive environments for FinTech adoption, ultimately contributing to economic sustainability in the MENA region. This study emphasises the importance of considering cultural dynamics in the implementation of FinTech solutions to maximise their positive impact on SME efficiency and growth.
  Keywords: FinTech; small and medium-sized enterprises; SMEs; economic efficiency; theory of reasonable action.
  DOI: 10.1504/IJMFA.2027.10069970
   
  
• The effect of adopting IFRS on tax avoidance considering the moderating role of managerial and financial factors and firm size  
  by Mohammad Ebrahimi, Nasrin Gharibi 
  Abstract: This study investigates the impact of International Financial Reporting Standards (IFRS) adoption on corporate tax avoidance, emphasizing the moderating roles of managerial and financial factors (revenue management, accrual management, profitability) and firm size within the developing economic context of Iran. The research analyses the perspectives of accounting and taxation professionals, including members of the Iranian Association of Certified Public Accountants, auditors, and tax inspectors. A five-point Likert scale questionnaire was used, with 257 responses collected. Structural Equation Modelling (SEM) and Partial Least Squares (PLS) methods were applied to examine variable relationships and model evaluation. The findings revealed that IFRS adoption significantly reduces corporate tax avoidance. Among managerial and financial factors, only revenue management showed a significant positive moderating effect on the relationship between IFRS adoption and tax avoidance. In contrast, accrual management, profitability and firm size did not demonstrate significant impacts. Challenges related to implementation and the creation of supportive conditions for IFRS success in developing economies must be addressed. This study highlights the importance of aligning financial reporting with international standards to promote transparency and reduce tax avoidance.
  Keywords: accounting standards; IFRS; tax avoidance; taxation.
  DOI: 10.1504/IJMFA.2027.10070040
   
  
• Bibliometric insights into green accounting research: analysing trends, impact, and theoretical foundations  
  by Shi Yang, Alexios Kythreotis 
  Abstract: Global environmental challenges, including climate change, water shortages, and biodiversity loss, pose significant risks to both society and ecosystems. Green accounting provides a comprehensive approach to promoting sustainability across economic, environmental, and social dimensions. However, a unified theoretical framework for green accounting research remains undeveloped. This study systematically analysed 833 articles from the Scopus database to address this gap. A refined framework for environmental responsibility and sustainable accounting was developed to enhance existing theories. The analysis highlights strong connections among green accounting research trends, identifies key areas and emerging topics, and confirms widely accepted methodologies. Additionally, the findings validate the bibliometric analysis within the constructed framework. This study offers a solid theoretical foundation for advancing green accounting theory, encouraging methodological innovation, and improving practical applications. By strengthening its theoretical basis, green accounting can play a crucial role in shaping sustainable business practices and policy development.
  Keywords: bibliometric analysis; green accounting; sustainable development; environmental challenges; theoretical framework.
  DOI: 10.1504/IJMFA.2027.10070059
   
  
• Building financial resilience: unravelling the influence of financial control, knowledge, and attitude in India  
  by Shruti Malik, Kamakhya Narain Singh, Asha Thomas, Domenico Graziano 
  Abstract: Enhancing financial well-being (FWB) has gained significant global attention, particularly through the promotion of financial literacy. This study investigates the role of financial knowledge, financial attitude, and financial control in building financial resilience to cope with unexpected financial shocks. Additionally, it examines how financial control moderates the relationship between financial knowledge, financial attitude, and resilience. Using survey data from 75,140 households across India and employing logit regression for analysis, the findings reveal that individuals with higher financial knowledge, a positive financial attitude, and effective financial control are better equipped to manage financial uncertainties. The results underscore the importance of targeted financial education programs and policy interventions, especially in emerging markets, to foster financial resilience and empower individuals to navigate economic challenges effectively.
  Keywords: financial well-being; FWB; financial resilience; financial control; financial literacy; financial attitude; financial knowledge; India.
  DOI: 10.1504/IJMFA.2027.10070115
   
  
• The response of accounting educators in incorporating significant new accounting standards in the curriculum in Indonesia  
  by Aria Farah Mita, Sylvia Veronica Siregar 
  Abstract: Educators play a strategic role in the successful adoption and implementation of the IFRS due to their responsibility in preparing students for the profession. However, the dynamic nature of the IFRS poses a challenge. This research aims to examine the responses of educators in incorporating new and significant accounting standards into course materials. The study focuses on IFRS 9, IFRS 15, and IFRS 16 which differ significantly from previous standards. The 243 financial accounting educators from several universities in Indonesia were surveyed. The results show that most of the educators were late responders in incorporating the new accounting standards. A total of 49% were late for IFRS 16, 64% were late for IFRS 9, and 70% were late for IFRS 15. The study recommends that educators incorporate newly published standards before they become effective so that students can master them by the time they graduate and when those standards apply.
  Keywords: financial accounting; IFRS adoption; accounting education; accounting curriculum; Indonesia.
  DOI: 10.1504/IJMFA.2025.10062686
   
  
• A retrospective of earnings management research: charting the knowledge base, intellectual structure, and way forward  
  by Priyam Mendiratta, Smita Kashiramka, Surendra Singh Yadav 
  Abstract: Owing to the dearth of comprehensive synopses in the published literature, this study endeavours to uncover the knowledge base and intellectual structure of 'earnings management' research. Over 2000 to January 2021, 1,678 articles from peer-reviewed journals are examined. Bibliometric analysis is used to identify the most prominent years, countries, journals, authors, articles, and keywords. Citation network, co-authorship analysis, and keyword co-occurrence analysis uncover the knowledge base. Cluster analysis of 138 articles coupled with content analysis delineates the intellectual structure. The publication trend reveals that research on earnings management has gathered momentum from 2015-2016, with accounting journals being the most productive. Developed countries like the USA, Australia, the UK, and parts of Europe dominate the landscape, with China as an exception. Six major clusters emerge. Network analysis illustrates the evolution of clusters over time. Keyword analysis reveals the advancement of earnings management as a multidisciplinary field, with studies on corporate governance taking centre stage. The study helps scholars to gauge the current stock of literature and the way forward on earnings management research, enables governing bodies to make policy-oriented efforts, and sensitises managers in instituting accountability.
  Keywords: earnings management; managers; bibliometric analysis; intellectual structure; knowledge base.
  DOI: 10.1504/IJMFA.2025.10063179
   
  
• Broadening the lens: capital structures and company performance in a new economy  
  by Peixuan Wu, Muhammad Irfan Khan, Syed Imran Zaman, Saghir Pervaiz Ghauri, Miao Miao 
  Abstract: The paper aims to examine factors that influence capital structure decisions of sugar and cement sector firms of Pakistan. The research incorporates specific firms along with macro-economic determinants of capital structure. As a test case, 29 sugar sector and 17 cement sector firms, listed in Pakistan Stock Exchange (PSX), were selected. The data consists of a ten year period, covering the years 2010-2021, using PLS technique. The results showed a significant impact of GDP, INF, GO and PROF on the capital structure decision of sugar sector firms whereas for the cement sector, FS and PROF are significant factors. The results supported trade-off as well as pecking order theories, indicating that no single theory completely explains the situation of the capital structure of Pakistan sugar and cement firms. Firms should consider the impact of selected variables while making capital structure decisions as ultimately it affects cost of capital which in turn influences shareholders' wealth.
  Keywords: capital structure; profitability; firm size; growth opportunity; earnings volatility; ownership concentration; GDP; inflation rate.
  DOI: 10.1504/IJMFA.2025.10062890
   
  
• Corporate governance and international financial reporting standards compliance among Ghanaian-listed companies  
  by Musah Mohammed Saeed 
  Abstract: This study examines the impact of corporate governance on IFRS compliance in Ghana using board and audit committee characteristics as well as ownership structures as proxies. These results indicate that increased IFRS compliance, despite agency conflicts, promotes transparency. A compliance index, derived from a checklist based on prior research, was calculated for 26 listed firms over a decade, using data from annual reports. OLS estimation reveals an average IFRS compliance of approximately 97%, which is positively linked to board independence. Conversely, CEO duality and management ownership show a negative and insignificant relationship, whereas government ownership correlates positively and significantly with IFRS compliance. However, audit committee independence and size do not significantly influence compliance decisions in Ghana. This study suggests that policymakers create a framework emphasising board dynamics for improved corporate reporting, providing insights for future capital market regulations, and highlighting corporate governance's crucial role in achieving comprehensive IFRS compliance.
  Keywords: corporate governance; CG; IFRS compliance; panel data; Ghana stock exchange; GSE; agency theory.
  DOI: 10.1504/IJMFA.2025.10063681
   
  
• Impact of board attributes on corporate cash holdings: evidence from India  
  by Ruchi Moolchandani, Sujata Kar 
  Abstract: This paper examines the impact of board of director attributes on the cash holdings of Indian listed firms. The study uses a sample of non-financial firms listed on the S&P BSE 500 index from 2009 to 2019. This study focuses on five board of director attributes namely, board size, board independence, board busyness, women directors and duality to investigate their impact on cash holdings. The findings reveal that board size, women directors and duality significantly affect the cash holdings of Indian firms. However, board independence and board busyness are insignificant. Overall, the study advocates that board of directors play a monitoring role and prevent managers from accumulating and using cash reserves for personal benefits. Thus, this study empirically confirms that board of director attributes affect corporate cash holdings. This study enriches the literature on determinants of corporate cash holdings.
  Keywords: board of directors; corporate governance; agency conflicts; cash holdings; India.
  DOI: 10.1504/IJMFA.2025.10063541
   
  
• Usage of interest rate derivatives in risk management: an analysis  
  by Subhamoy Chatterjee, R.P. Mohanty 
  Abstract: Risk management is a component of business strategy across geographies and economies, often executed using derivatives. This study aims to undertake a bibliographic analysis, understand the evolving research through patterns and dimensionality, and elaborate on the significant learnings. This paper presents a bibliographic account of the usage of interest rate derivatives (IRDs). It covers the IRD subset of interest rate swaps by covering a range of sectors, geographies and disciplines. The analysis facilitated the categorisation of publications. This showed how research has evolved and the consequent gaps that must be filled to advance academic research in the community of practice. While there are multiple studies, this paper attempts to classify them and enables future researchers to access research work and realise the gap areas. Further, the study uses these research parameters to distinguish articles.
  Keywords: risk management; interest rate derivative; IRD; swap; fixed payor; floating payor; strategic finance; derivatives; regulations for derivatives; International Swaps and Derivatives Association; ISDA.
  DOI: 10.1504/IJMFA.2025.10063577