International Journal of Managerial and Financial Accounting (29 papers in press)

Regular Issues

• 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
   
  
• 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 Afdal 
  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
   
  
• 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 Sourour Hazami-Ammar*, 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
   
  
• 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
   
  
• 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
   
  
• Money talks: accrual accountings stakeholder impact in government funding  
  by Mahameru Rosy Rochmatullah, Hajer Jarrar, Brigitte Pereira, Charbel Salloum, Jean-François Verdie 
  Abstract: This study examines the effectiveness of accrual-based accounting (ABA) in enhancing financial accountability and socio-economic outcomes in government financial management, particularly in the context of international funding. Using data from 312 Indonesian municipalities between 2015 and 2021, the analysis employs partial least squares path modelling (PLS-PM) to assess the relationship between foreign grants, external debt, and socio-economic expenditures. Findings indicate that despite ABA’s theoretical benefits, its implementation is undermined by bureaucratic inefficiencies and corruption, leading to unreliable financial reporting and a disconnect between public expenditures and socio-economic improvements. Contrary to expectations, ABA does not enhance transparency or stakeholder trust, as financial disclosures fail to reflect actual social outcomes such as poverty alleviation, employment, and gender equality. This study fills a critical gap in the literature by shifting the focus from ABA’s technical merits to its institutional constraints, challenging the assumption that its adoption inherently improves public sector accountability. The results highlight the necessity of governance reforms and stronger enforcement mechanisms to ensure ABA’s effectiveness in emerging economies. Policymakers and international donors must reconsider their reliance on ABA as a standalone accountability tool, emphasising the need for integrated institutional reforms to strengthen public sector financial management.
  Keywords: accrual-based accounting; stakeholder theory; social accounting; government funding; Indonesia; corruption.
  DOI: 10.1504/IJMFA.2027.10070628
   
  
• Assurance on sustainability reporting and debt financing  
  by Nada Dammak Ben. Hlima, Anis Jarboui 
  Abstract: The present work aimed to investigate whether a firms voluntary demand for sustainability assurance is associated with increased leverage ratios. We also explored the effect of the assurance provider type and the level of assurance provided on this association. Specifically, this study sought to determine if companies that purchase sustainability assurance choose a provider from the accounting profession, obtain a high level of sustainability verification, and experience improved access to debt financing. This study used a panel regression analysis on German firms listed on the DAX, MDAX, and SDAX indices between 2014 and 2021. The empirical findings reveal a positive relationship between the firm access to debt financing sources (leverage ratios) and both the demand for sustainability assurance and the high/reasonable levels of assurance. Moreover, the results indicate that the levels of each debt category (total, long-term, and short-term) rise alongside sustainability assurance and high/reasonable assurance level. This finding suggests that these factors significantly contribute to decreasing information asymmetry and enhancing transparency in firms’corporate social responsibility information. These results align with lenders’ needs for credible and reliable non-financial information and help attract debt financing sources.
  Keywords: debt financing; leverage; sustainability reports; sustainability assurance.
  DOI: 10.1504/IJMFA.2027.10070731
   
  
• Green technology and environmental sustainability in developing countries? A threshold nonlinear framework  
  by Amir Hasnaoui, Khaireddine Mouakhar, Amari Mouna, Anis Jarboui 
  Abstract: This study assesses the effect of green technologies on environmental sustainability for developing countries. Then, it determines the cutoff point (threshold value) of these technology indicators that influence air degradation. The sample comprises 57 developing countries covering the period 2014-2022. We use the GMM estimation; we employ the threshold regression in the second step. Through a threshold regression approach, we investigate the information and communication technologies (ICT) adoption levels that lead to regime shifts in our sample of lower- and middle-income countries. The findings indicate that increasing technology adoption can promote ecological sustainability by lowering CO₂ emissions. The panel threshold analysis shows evidence of a nonlinear ICT-environmental sustainability association with the existence of two ICT-environmental sustainability regimes.
  Keywords: green technology; regulation; CO₂ emissions GMM; Threshold.
  DOI: 10.1504/IJMFA.2027.10070807
   
  
• The behaviour of distressed firms towards earnings management in a competitive product market  
  by Najet Rejeb, Houssam Bouzgarrou, Faten Lakhal 
  Abstract: This study investigates the influence of corporate financial distress on earnings management under competitive market pressure. Using a dataset of 146 non-financial French firms listed on the SBF-250 index from 2005 to 2020 and the generalised method of moments approach, the findings reveal a positive effect of financial distress on earnings management. Distressed firms exhibit a heightened inclination to employ both accruals and real earnings management, with a greater emphasis on accruals over real earnings management. Conversely, financial distress reduces the use of earnings management by classification shifting. This effect is more pronounced for distressed firms operating in competitive markets. This is the first study to explore product market competition as a main driver through which financial distress positively affects earnings management. It offers stakeholders valuable insights into the manipulative behaviours of distressed firms in competitive environments, helping in more informed risk management decisions.
  Keywords: financial distress; product market competition; real earnings management; accruals earnings management; classification shifting.
  DOI: 10.1504/IJMFA.2026.10070821
   
  
• Evaluating the efficacy of the value factor in stock market analysis: a comparative analysis of market-to-book ratio and Piotroski F-Score  
  by Giulia Baschieri , Mattia David Hunziker 
  Abstract: We explore the potential ramifications of the Piotroski F-Score (Piotroski, 2000) in the structuring of value portfolios. We test whether the use of the F-Score yields a statistically significant improvement in the returns of a high book-to-market investment strategy relative to the conventional book-to-market (BM) ratio as in the Fama-French 3 factor model. We use a sample going from 2014 to 2022, and find that, contrary to expectations, the risk premium associated with the F-Score is slightly negative, suggesting that the Italian Stock Market does not reward firms with strong financial position as suggested by the score.
  Keywords: Piotroski F-Score; value portfolios; stock returns; financial statement analysis.
  DOI: 10.1504/IJMFA.2027.10071392
   
  
• Balancing CEO incentives and tax aggressiveness: the audit quality factor  
  by Mhamed Ben Slimane  
  Abstract: This study examines the effect of CEO compensation on corporate tax aggressiveness. We investigate whether this relation is due to optimal contracting or to managers extracting rents perspectives. Based on a sample of 84 French listed firms from 2011 to 2022 and Prais-Winsten regression, we find a negative and significant relationship between aggressive tax practices and the level of CEO compensation suggesting that CEO compensation acts as an incentive likely to align managerial interests with external shareholders’ ones and supporting the agency theory perspective. The relationship becomes stronger when the firm is audited by a BIG 4 auditor suggesting that audit quality is a major monitoring device that complements the effect of CEO compensation to reduce managerial opportunistic behavior through aggressive tax positions.
  Keywords: corporate tax aggressiveness; CEO compensation; stock-option; audit quality.
  DOI: 10.1504/IJMFA.2027.10071712
   
  
• Financial restatements and firm valuation: the moderating role of ESG performance  
  by Birjees Rahat 
  Abstract: This paper examines the valuation effects of financial restatements and Environmental, Social, and Governance (ESG) performance. Financial restatements are often interpreted as indicators of weakened governance and compromised reporting credibility. In contrast, ESG performance is increasingly associated with transparency, resilience, and strategic legitimacy. Using a panel of publicly listed non-financial firms from the Eurozone between 2014 and 2023, this study employs three valuation measures. The results show that restatements are consistently associated with a decline in firm value, while ESG performance contributes positively across all models. Notably, the analysis reveals that strong ESG performance mitigates the negative valuation impact of restatements, suggesting that sustainability may serve as a form of reputational capital. The study contributes to the literature by highlighting the integrated role of financial and non-financial signals in contemporary capital markets. It provides practical implications for investors, regulators, and corporate decision-makers.
  Keywords: financial restatements; ESG performance; firm valuation; market confidence.
  DOI: 10.1504/IJMFA.2027.10071779
   
  
• Does earnings management mediate board composition - firm’s environmental, social, and governance performance relationship?  
  by Nada Dammak Ben Hlima, Anis Jarboui, Dhouha Bouaziz 
  Abstract: The variability in environmental, social, and governance (ESG) performance is prominent worldwide. However, existing literature on the factors influencing it is fragmented and lacks cohesive insights into the observed disparities. To address this gap, we aimed to draw on a comprehensive body of ESG performance literature, exploring and identifying the key drivers that influence it. In this context, the current study examined the underlying board composition (BC)-ESG performance relationship and analyzed how the former impacts the latter. This study also investigated how earnings management (EM) mediates this relationship. The results show that a high number of independent and female directors on European companies’ boards and CEO and chair roles separation improve ESG performance. Moreover, our findings highlight that EM mediates the relationship between BC and ESG performance.
  Keywords: corporate social responsibility; board composition; earnings management; ESG performance.
  DOI: 10.1504/IJMFA.2027.10071938
   
  
• Unravelling the dynamics of crude oil prices and exchange rates in shaping Indian economic growth a robust ARDL investigation  
  by Jasvinder Kaur, Afsa Parveen, Kamaljit Singh, Kiran Mor 
  Abstract: This study investigates the impact of crude oil prices and exchange rates on India’s economic growth, using yearly data from 1986 to 2023. An Autoregressive Distributed Lag model is employed to determine the long-run cointegration of the variables. Additionally, diagnostic tests, including the Wald Test, Variance Decomposition Analysis, and Impulse Response Function, have been performed. The study’s findings indicate the presence of cointegration among the variables. In the long run, both variables significantly influence economic growth. Interestingly, the contemporaneous terms of crude oil prices and the lag coefficients of both variables are negatively associated with economic growth in the short run. Furthermore, the diagnostic tests confirm the fitness and stability of the model parameters. As a policy implication, this research provides a comprehensive understanding of the interaction between these variables over an extended period.
  Keywords: economic growth; crude oil prices; exchange rate; ARDL; Wald test.
  DOI: 10.1504/IJMFA.2027.10072146
   
  
• How board dynamics and CEOs’ financial incentives shape earnings management in Saudi Arabia?  
  by Amal Alharbi, Ezzeddine Ben Mohamed 
  Abstract: This study examines how different dimensions of corporate governance impact earnings management in non-financial companies within the Saudi market. The study utilizes the Miller ratio, focusing on working capital and operating cash flows as indicators of earnings management. Several corporate governance dimensions are assessed, including board size, board independence, frequency of board meetings, financial expertise of board members, and board turnover rates, alongside financial incentives for chief executives. The analysis also incorporates control variables such as company size, leverage, and profitability. A sample of 356 observations from 89 non-financial listed firms in Saudi Arabia, spanning from 2017 to 2020, is used. A fixed-effect panel estimation with the Ordinary Least Squares (OLS) method is applied for the analysis. The findings reveal a positive relationship between board independence and earnings management, as well as a positive correlation between leverage and earnings management. Based on these results, the study recommends that regulators and firms enhance the functional effectiveness of independent directors, ensure transparency in board processes, and promote sector-specific governance reforms.
  Keywords: board of directors; financial incentives for executives; earnings management; ordinary least squares; OLS; Saudi Arabia.
  DOI: 10.1504/IJMFA.2027.10072439
   
  
• Game-changing approach to risk management in new ventures  
  by Masoud Basirnezhad, Nawazish Mirza, Navid Mohammadi, Charbel Salloum, Saeed Heshmati 
  Abstract: This study presents a framework for managing risks in collaborative new product development (CPD), where strategic partnerships are central to innovation. An integrated approach combining interpretive structural modelling (ISM), failure mode and effects analysis (FMEA), and the stepwise weight assessment ratio analysis (SWARA) is used to identify, structure, and prioritise 42 risks. These were extracted from the literature and refined through expert consultation. Domain experts assessed risk interrelationships using ISM, evaluated severity, likelihood, and detection using FMEA, and applied SWARA to assign weights. Findings indicate that severity is the most influential criterion, and key risks relate to inadequate documentation, poor communication, and lack of trust among partners. The framework offers guidance for assessing and mitigating CPD risks, supporting project outcomes.
  Keywords: collaborative new product development; multi-criteria decision making; strategic alliance; risk; failure mode and effects analysis; FMEA.
  DOI: 10.1504/IJMFA.2027.10072440
   
  
• The sustainability-distress nexus: does the SDG score conceal financial risk?  
  by Soumya Ranjan Sethi, Dushyant Ashok Mahadik 
  Abstract: This paper advances knowledge on the economic dimension of sustainability by investigating the probability of Indian non-financial service sector firms experiencing bankruptcy from the 20122013 to the 20222023. As an extension to this research, the sustainability indicator, the SDG index, which has received little attention in this line of research, is used to assess its foretelling significance along with the conventional financial ratios and variables. Employing the binary logistic regression, this study establishes the fact that indicators of both financial and sustainability have a significant effect on the model for the prediction of financial distress except inventory conversion period. The critical standing of the SDG index established its social usefulness, proving a connection between sustainability and viability, despite its low NI percentage. These findings are helpful for policymakers, especially in terms of how sustainability metrics should be incorporated into corporate governance systems for enhanced economic recovery. In addition, this research extends the literature and provides avenues for future scholars to investigate more sustainability indicators, ways to incorporate them with finance theories, and their significance in improving sustainable performance and the accuracy of the firms’ financial distress models.
  Keywords: financial distress; sustainability; sustainable development goals; SDGs; forecasting; logistic regression.
  DOI: 10.1504/IJMFA.2027.10074131
   
  
• Bank’s earnings management through loan loss provisions before and after IFRS9  
  by Oussama Nheri 
  Abstract: The paper investigates the changes in loan loss provisions (LLPs) use by banks for earnings management around the adoption of International Financial Reporting Standard (IFRS9). Based on a sample of 303 international banks from 44 countries, we find some evidence indicating that banks use LLPs for earnings management overall; Our results also show no change in this behavior after the adoption of IFRS9. We also find that non-adopting IFRS9 banks engage more aggressively in earnings management using LLPs than adopting banks. Our results indicate, however, that earnings management behavior is more pronounced in the pre-IFRS9 period. Furthermore, we investigate whether the homogeneity of the loan portfolio influences banks behavior. We find that homogeneous portfolios are less impacted by the transition from IAS39 to IFRS9. Overall, our analysis provides important feedback to banking industry in terms of effectiveness of the norms in controlling earnings smoothing appetite by management.
  Keywords: IFRS9; loan loss provisions; earnings management; homogeneity of loans; accounting norms.
  DOI: 10.1504/IJMFA.2027.10074242
   
  
• Predicting financial distress in microfinance institutions: the outperformance of undersampling-based models  
  by Maya Turki, Sina Belkhiria, Yassin Hachaichi, Taher Hamza 
  Abstract: This study aims to construct a robust predictive model tailored to identify financial distress within Microfinance Institutions (MFIs). To this end, we use a MIX balanced dataset implemented with undersampling techniques, covering a five-year period from 2014 to 2018. Our main findings show that: i) the model classifies correctly 97.9% of the MFIs’ financial distress, one year prior to its occurrence for the validation sample. This specified model outperforms the revised Altman score. ii) a substantial reduction in credit risk could be achieved by granting loans to female borrowers, providing evidence that the gender effect robustly matters. iii) our study proposes a credit scoring model dedicated to MFIs using undersampling techniques and relying on internal factors rather than standard financial ratios. This model helps practitioners assess credit risk to make more accurate credit risk decisions.
  Keywords: microfinance institutions; MFIs; undersampling techniques; financial distress prediction; gender effect; Altman score.
  DOI: 10.1504/IJMFA.2028.10074646
   
  
• CSR, climate finance, and the CSRD framework: evidence on environmental performance in EU countries  
  by Amir Hasnaoui, Ayesha Afzal, Alexandra Horobet, Myra Imran Rafiq 
  Abstract: This study examines the environmental impact of corporate social responsibility (CSR) and climate finance in the context of the European Union’s evolving sustainability framework, with a specific focus on the Corporate Sustainability Reporting Directive (CSRD). Using panel data covering 27 EU countries from 2014 to 2023, the paper employs a robust two-step system GMM estimator to assess the effects of CSR expenditures and climate-related financial variables on environmental performance, measured by the reduction of greenhouse gas emissions. The results reveal that both CSR and climate finance significantly enhance environmental outcomes, particularly when aligned with institutional mechanisms that improve sustainability reporting and accountability. While the CSRD is not modeled directly, its regulatory scope provides critical context for interpreting the effectiveness of these financial efforts. This research contributes to the literature by offering empirical evidence on how financial and regulatory instruments interact to support environmental goals across EU member states.
  Keywords: corporate social responsibility; CSR; climate finance; environmental performance; Corporate Sustainability Reporting Directive; CSRD; environmental; social and governance; ESG; EU countries; system-GMM.
  DOI: 10.1504/IJMFA.2028.10076307
   
  
• How does corporate governance moderate the relationship between corporate social performance and corporate financial performance?  
  by Erum Shaikh, Waqas Ahmad Watto, Muhammad Abdullah, Ali Raza 
  Abstract: The increased significance of corporate social performance (CSP) may be attributed to the elevated demands of stakeholders about a company’s social and environmental obligations. Open business practices may help enhance a companys financial performance and reputation by meeting stakeholder expectations and regulations. This study examines how CSR governance influences the connection between corporate social responsibility (CSR) and corporate financial success. Data was collected from 2015 to 2021 from the top 100 companies listed on the New York Stock Exchange. This study enhances the existing knowledge of corporate governance and CSR by examining how corporate governance influences the relationship between these two areas, providing a deeper understanding of the complex interactions within these domains. The novelty of this study comes in its detailed examination of how corporate governance impacts the relationship between CSR initiatives and financial performance in prominent corporations listed in NYSE.
  Keywords: corporate social responsibility; CSR; corporate financial performance; CFP; corporate governance; environmental; CSR Committee; firm size; financial leverage.
  DOI: 10.1504/IJMFA.2028.10078550
   
  
• Examining the value relevance of abnormal accruals in Sub-Saharan Africa  
  by Diana L.K. Ssekiboobo, Godfrey Akileng, David Namanya 
  Abstract: This paper examines whether the market values abnormal accruals differently in Sub Saharan Africa. Abnormal accruals signal managers valuation of the firm. Alternatively, abnormal accruals are opportunistic, therefore misrepresent the value of the firm. We use panel data from listed firms in securities markets in South Africa, Nigeria and East Africa for period, 2006 to 2020, collected from annual reports and financial market data bases. We use the price model of Ohlson (1995) as a basis for the regression analysis to measure value relevance. We find that abnormal accruals are value irrelevant and thus are discounted by the markets. Rational investors perceive abnormal accruals as representing manager’s opportunistic actions. We contribute to literature on value relevance of accounting information and market-based accounting research in African markets.
  Keywords: value relevance; abnormal accruals; financial markets; Sub-Saharan Africa.
  DOI: 10.1504/IJMFA.2028.10080001