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J. Risk Financial Manag., Volume 18, Issue 2 (February 2025) – 51 articles

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25 pages, 378 KiB  
Article
The PCAOB’s 2006 Tax Service Restrictions and Earnings Management
by Matthew Notbohm, Xiaoli Guo and Adrian Valencia
J. Risk Financial Manag. 2025, 18(2), 94; https://doi.org/10.3390/jrfm18020094 (registering DOI) - 11 Feb 2025
Viewed by 86
Abstract
In 2006, the PCAOB implemented new restrictions on the auditor provision of some tax and contingent fee services provided to issuer audit clients. These restrictions were implemented to reduce auditor conflicts of interest inherent when the auditor provides any of these specific services [...] Read more.
In 2006, the PCAOB implemented new restrictions on the auditor provision of some tax and contingent fee services provided to issuer audit clients. These restrictions were implemented to reduce auditor conflicts of interest inherent when the auditor provides any of these specific services and a financial statement audit. Subsequent research found that these tax service restrictions did not impact audit quality, measured as the probabilities of going concern opinions or financial statement restatements. We reexamine this research question in the context of the regulation’s earnings management effects. Our investigation of this question uses a difference-in-difference regression approach and 20,043 issuer company fiscal year observations from 2002 to 2009, consistent with that used in prior studies, and four measures of earnings management (discretionary accruals, abnormal working capital accruals, current accruals, and the likelihood of meeting or slightly beating the zero earnings change benchmark) to proxy for audit quality. We find, consistent with findings in prior studies, no detectable effects of the 2006 PCAOB tax service restrictions. These null results persist through a series of robustness tests that include re-estimating our primary regressions on a Big 4 subsample, adding multiple alternative treatment variable definitions, generating a propensity-score-matched sample, and adding a control for internal control weakness. These findings raise further doubt about the need for these non-audit service restrictions. Full article
(This article belongs to the Special Issue Judgment and Decision-Making Research in Auditing)
19 pages, 2183 KiB  
Article
In-Season Price Forecasting in Cotton Futures Markets Using ARIMA, Neural Network, and LSTM Machine Learning Models
by Jeffrey Vitale and John Robinson
J. Risk Financial Manag. 2025, 18(2), 93; https://doi.org/10.3390/jrfm18020093 (registering DOI) - 10 Feb 2025
Viewed by 234
Abstract
This study explores the efficacy of advanced machine learning models, including various Long Short-Term Memory (LSTM) architectures and traditional time series approaches, for forecasting cotton futures prices. This analysis is motivated by the importance of accurate price forecasting to aid U.S. cotton producers [...] Read more.
This study explores the efficacy of advanced machine learning models, including various Long Short-Term Memory (LSTM) architectures and traditional time series approaches, for forecasting cotton futures prices. This analysis is motivated by the importance of accurate price forecasting to aid U.S. cotton producers in hedging and marketing decisions, particularly in the Texas Gulf region. The models evaluated included ARIMA, basic feedforward neural networks, basic LSTM, bidirectional LSTM, stacked LSTM, CNN LSTM, and 2D convolutional LSTM models. The forecasts were generated for five-, ten-, and fifteen-day periods using historical data spanning 2009 to 2023. The results demonstrated that advanced LSTM architectures outperformed other models across all forecast horizons, particularly during periods of significant price volatility, due to their enhanced ability to capture complex temporal and spatial dependencies. The findings suggest that incorporating advanced LSTM architectures can significantly improve forecasting accuracy, providing a robust tool for producers and market analysts to better navigate price risks. Future research could explore integrating additional contextual variables to enhance model performance further. Full article
(This article belongs to the Special Issue Financial Innovations and Derivatives)
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19 pages, 279 KiB  
Article
Corporate Governance Mechanism and Bank Performance, New Insights from Emerging Economy: Evidence from Nigeria Banking Sector
by Olusola Enitan Olowofela, Hermann Azemtsa Donfack and Celestin Wafo Soh
J. Risk Financial Manag. 2025, 18(2), 92; https://doi.org/10.3390/jrfm18020092 (registering DOI) - 8 Feb 2025
Viewed by 291
Abstract
We investigated the relationship between corporate governance mechanisms and bank performance in the Nigerian banking sector. We focused on data from 2012 to 2022 extracted from the balance sheets of deposit money banks in Nigeria. We employed the Generalized Method of Moments (GMM) [...] Read more.
We investigated the relationship between corporate governance mechanisms and bank performance in the Nigerian banking sector. We focused on data from 2012 to 2022 extracted from the balance sheets of deposit money banks in Nigeria. We employed the Generalized Method of Moments (GMM) with Stata 13 and Python library to analyze the data. The research underscores the positive influence of non-executive directors and effective credit risk management on risk-adjusted return on assets in the Nigerian banking sector. Conversely, larger board sizes and higher levels of independence negatively impact performance. Notably, corporate governance variables do not significantly determine risk-adjusted return on equity, except for a negative association with lending rates. Practical implications include advocating for non-executive directors, optimizing board size and prioritizing robust credit risk management for enhanced financial outcomes. This research contributes to understanding the crucial role of corporate governance in the Nigerian banking sector, emphasizing its significance for prudent risk management and stakeholder confidence. Full article
(This article belongs to the Section Business and Entrepreneurship)
14 pages, 1225 KiB  
Article
Determinants of Stochastic Distance-to-Default
by Tarek Eldomiaty, Islam Azzam, Hoda El Kolaly, Ahmed Dabour, Marwa Anwar and Rehab Elshahawy
J. Risk Financial Manag. 2025, 18(2), 91; https://doi.org/10.3390/jrfm18020091 - 7 Feb 2025
Viewed by 401
Abstract
Efficient management of bankruptcy risk requires treating distant-to-default (DD) stochastically as long as historical stock prices move randomly and, thus, do not guarantee that history may repeat itself. Using long-term data that date back to 1952–2023, including the nonfinancial companies listed in the [...] Read more.
Efficient management of bankruptcy risk requires treating distant-to-default (DD) stochastically as long as historical stock prices move randomly and, thus, do not guarantee that history may repeat itself. Using long-term data that date back to 1952–2023, including the nonfinancial companies listed in the Dow Jones Industrial Average and National Association of Securities Dealers Automated Quotations indexes, this study estimates the historical and stochastic DDs via the geometric Brownian motion (GBM). The results show that (a) the association between the debt-to-equity ratio and the stochastic DD can be used as an indicator of excessive debt financing; (b) debt tax savings have a positive effect on stochastic DD; (c) bankruptcy costs have negative effects on stochastic DD; (d) in terms of the size of the company being proxied by sales revenue and the equity market value of the company, the DD is a reliable measure of bankruptcy costs; (e) in terms of macroeconomic influences, increases in the percentage change in manufacturing output are associated with lower observed and stochastic DD; and (f) in terms of the influences of industry, the stochastic DD is affected by the industry average retail inventory to sales. This paper contributes to related studies in terms of focusing on the indicators that a company’s management can focus on to address the stochastic patterns inherent in the estimation of the DD. Full article
(This article belongs to the Section Risk)
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22 pages, 783 KiB  
Article
Nexus Between Green Financing and Carbon Emissions: Does Increased Environmental Expenditure Enhance the Effectiveness of Green Finance in Reducing Carbon Emissions?
by Martin Kamau Muchiri, Szilvia Erdei-Gally and Maria Fekete-Farkas
J. Risk Financial Manag. 2025, 18(2), 90; https://doi.org/10.3390/jrfm18020090 - 6 Feb 2025
Viewed by 563
Abstract
This study investigates the nexus between green financing (GB) and carbon emissions across 29 countries distributed worldwide with full data on green financing measured as the sum of bonds issued for the period 2018–2021. GDP per capita, population, and environmental expenditure (EP) are [...] Read more.
This study investigates the nexus between green financing (GB) and carbon emissions across 29 countries distributed worldwide with full data on green financing measured as the sum of bonds issued for the period 2018–2021. GDP per capita, population, and environmental expenditure (EP) are used as control variables in the study. An interaction term between GB and EP is also included in the study. This study utilized the Panel Robust Fixed Effect Model (PRFEM) to investigate the nexus between green financing and carbon emissions and how EP enhances the effectiveness of green financing in reducing carbon emissions. The study concludes that green finance is effective in reducing carbon emissions; this relationship remains the same regardless of country-specific factors such as the GDP per capita, EP, and population. Increases in environmental protection (EP) expenditure promote the effectiveness of green financing in reducing carbon emissions. This study recommends policies that promote the green transition including tax exemptions for investors in green bonds, the enactment of rules and regulations that require companies and institutions to provide information about their green projects, and lastly, the establishment of standards that help in measuring the impacts of the projects that are being funded through green bonds. The synergic potential between EP and green financing justifies the need for policies supporting the collaboration of public and private collaboration in attracting green capital flows from the private sectors. By enhancing the green bond market, these steps will contribute toward realizing low carbon economy goals by channeling funds to sustainable and environmentally friendly projects. Full article
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22 pages, 4157 KiB  
Article
Prediction of Green Sukuk Investment Interest Drivers in Nigeria Using Machine Learning Models
by Mukail Akinde, Olasunkanmi Olapeju, Olusegun Olaiju, Timothy Ogunseye, Adebayo Emmanuel, Sekinat Olagoke-Salami, Foluke Oduwole, Ibironke Olapeju, Doyinsola Ibikunle and Kehinde Aladelusi
J. Risk Financial Manag. 2025, 18(2), 89; https://doi.org/10.3390/jrfm18020089 - 6 Feb 2025
Viewed by 458
Abstract
This study developed and evaluated machine learning models (MLMs) for predicting the drivers of green sukuk investment interest (GSII) in Nigeria, adopting the planks of hypothesised determinants adapted from variants of the planned behavioural model and behavioural finance theory. Of the seven models [...] Read more.
This study developed and evaluated machine learning models (MLMs) for predicting the drivers of green sukuk investment interest (GSII) in Nigeria, adopting the planks of hypothesised determinants adapted from variants of the planned behavioural model and behavioural finance theory. Of the seven models leveraged in the prediction, random forest, which had the highest level of accuracy (82.35% for testing and 90.37% for training datasets), with a good R2 value (0.774), afforded the optimal choice for prediction. The random forest model ultimately classified 10 of the hypothesised predictors of GSII, which underpinned constructs such as risk, perceived behavioural control, information availability, and growth, as highly important; 21, which were inclusive of all of the hypothesised constructs in measurement, as moderately important; and the remaining 15 as low in importance. The feature importance determined by the random forest model afforded an indicator-specific value, which can help green sukuk (GS) issuers to prioritise the most important drivers of investment interest, suggest important contexts for ethical investment policy enhancement, and inform insights about optimal resource allocation and pragmatic recommendations for stakeholders with respect to the funding of climate change mitigation projects in Nigeria. Full article
(This article belongs to the Special Issue Machine Learning Based Risk Management in Finance and Insurance)
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4 pages, 154 KiB  
Editorial
Editorial Board Members’ Collection Series: Journal of Risk and Financial Management
by Thanasis Stengos
J. Risk Financial Manag. 2025, 18(2), 88; https://doi.org/10.3390/jrfm18020088 - 5 Feb 2025
Viewed by 460
Abstract
Recently, the Journal of Risk and Financial Management completed a Special Issue that included papers based on invitations from the Editorial Board Members on a variety of areas in applied financial economics and risk management [...] Full article
13 pages, 242 KiB  
Article
The Role of Gender Equality at the Country Level on the Relationship Between Women’s Board Representation and Sustainability Assurance Adoption
by Kholod F. Alsahali
J. Risk Financial Manag. 2025, 18(2), 87; https://doi.org/10.3390/jrfm18020087 - 5 Feb 2025
Viewed by 339
Abstract
Purpose: The purpose of this study is to investigate the role of gender equality in the relationship between the critical mass of women’s representation on boards and companies’ decisions to adopt external assurance on their sustainability reports. Design and methodology: The relationship is [...] Read more.
Purpose: The purpose of this study is to investigate the role of gender equality in the relationship between the critical mass of women’s representation on boards and companies’ decisions to adopt external assurance on their sustainability reports. Design and methodology: The relationship is investigated using secondary data from an international sample of 1924 firms across 41 countries sourced from the Eikon database, ensuring comprehensive coverage of firms that publish sustainability reports. The study uses a logistic regression model to study two aspects: first, the relationship between the critical mass of women’s representation on boards and companies’ decisions to provide external assurance on their sustainability reports, and second, the moderating role of countries’ gender equality policies using the World Bank’s Women, Business and the Law (WBL) index. Findings: The findings of this study indicate that in the case of sustainability assurance adoption, the critical mass of women’s representation on boards is important in countries where the gender equality index is low. Therefore, this study extends the findings of prior studies investigating the critical mass of women’s representation on boards by proving that critical mass is more effective in countries that have a lower gender equality index. Originality: The two main contributions of this study are the findings that (i) the association of women’s representation on boards with companies’ decisions to provide assurance over their sustainability reports is affected by critical mass, and (ii) the critical mass of women’s representation on boards is essential in countries that have a lower gender equality index. Full article
(This article belongs to the Special Issue Accounting Ethics and Financial Management)
17 pages, 299 KiB  
Article
Can Sustainability (ESG) Controversies Be Offset with Advertising? An Empirical Investigation into Advertising, Negative ESG, and Firm Value
by Nicole Hanson and Stacey Sharpe
J. Risk Financial Manag. 2025, 18(2), 86; https://doi.org/10.3390/jrfm18020086 - 5 Feb 2025
Viewed by 369
Abstract
Can advertising improve firm value following an incident of negative sustainability (i.e., a negative environmental, social or governance (NESG) occurrence?) This study provides an empirical investigation into NESG, its individual domains, and the mitigating role of advertising on firm value. We investigate firm [...] Read more.
Can advertising improve firm value following an incident of negative sustainability (i.e., a negative environmental, social or governance (NESG) occurrence?) This study provides an empirical investigation into NESG, its individual domains, and the mitigating role of advertising on firm value. We investigate firm level ESG sustainability violations and any corresponding advertising expenditures, utilized to counter negative opinions. First, we examine whether an NESG occurrence reduces firm value. Next, we investigate if firms experiencing an NESG occurrence alter their advertising expenditures and assess the resulting impact of this advertising spending on firm value. Finally, we determine if certain NESG occurrences benefit more from advertising than others. Using a sample of firms which engaged in at least one NESG event between 1995 and 2019, we find that firms increase advertising as a way to engage in damage control. Increasing advertising expenditures to offset NESG occurrences ultimately impacts firm value. Specifically, increasing advertising helps to reduce the NESG occurrence’s effect on firm value, but the individual domains of ESG do not respond the same to advertising efforts, suggesting that advertising as a mitigation tool remains nuanced, with the greatest positive effect being for environmental crises, no significant effect for social crises, and a negative effect for governance crises. Full article
14 pages, 298 KiB  
Article
Impact of Geopolitical Risks on Herding Behavior in Some MENA Stock Markets
by Imed Medhioub
J. Risk Financial Manag. 2025, 18(2), 85; https://doi.org/10.3390/jrfm18020085 - 5 Feb 2025
Viewed by 377
Abstract
In this study, we examine the herding behavior in MENA stock markets in response to global geopolitical risk by using daily data, ranging from 4 January 2011 to 31 December 2023, on stock-listed companies in some MENA countries (Egypt, Jordan, Lebanon, Morocco, Saudi [...] Read more.
In this study, we examine the herding behavior in MENA stock markets in response to global geopolitical risk by using daily data, ranging from 4 January 2011 to 31 December 2023, on stock-listed companies in some MENA countries (Egypt, Jordan, Lebanon, Morocco, Saudi Arabia, and Tunisia) and the daily geopolitical risk index. In our analysis, we consider that investors’ behavior varies depending on the global economic and political period conditions. We use quantile regression analysis to investigate the effect of asymmetry on herding behavior among investors during bearish and bullish market conditions. The results show that herding behavior is evident in all stock markets, except for the Lebanon market, at a lower 5% quantile during down-market periods. A significant estimated coefficient of geopolitical risk was detected on the dispersion of stock returns, except for the stock markets of Morocco and Saudi Arabia. We found that a high level of geopolitical risk contributes to an increase in dispersion in the Lebanese stock market whereas it is associated with a high probability of increasing herding in the Jordanian and Tunisian stock markets. This paper contributes to the existing literature by explaining the impact of geopolitical risks on herding behavior in six MENA countries. This can be considered to be an empirical contribution as we propose to introduce the effect of geopolitical risks on the basis model of herding. Our findings can have significant implications for investors and policymakers in financial markets. Full article
(This article belongs to the Special Issue Financial Econometrics and Quantitative Economic Analysis)
22 pages, 522 KiB  
Article
Non-Maturing Deposits: Predictive Modelling and Risk Management
by Anton van Dyk
J. Risk Financial Manag. 2025, 18(2), 84; https://doi.org/10.3390/jrfm18020084 - 5 Feb 2025
Viewed by 337
Abstract
Non-maturing deposits (NMDs) are a significant source of liquidity for banks, making research into their modelling and forecasting invaluable. However, NMDs have no explicit expiration date, posing liquidity risks and complicating management. This research develops models and a framework to explain, predict, and [...] Read more.
Non-maturing deposits (NMDs) are a significant source of liquidity for banks, making research into their modelling and forecasting invaluable. However, NMDs have no explicit expiration date, posing liquidity risks and complicating management. This research develops models and a framework to explain, predict, and manage variations in non-maturing deposits. Aggregate savings and transaction deposit data from an African bank were analysed to test the methodologies. The Trend-Fourier model, leveraging historical trends and Fourier analysis, forecasted 90-day deposit volumes. The model revealed prominent cyclicalities and monthly trends in deposit account volumes. Benchmarking showed high accuracy for savings deposit volumes, while transaction deposit volumes were less accurate, suggesting simpler models might be suitable. Additionally, a risk metric called LVaR (Liquidity Value at Risk) was proposed. Two approaches for calculating the LVaR were tested. An exceedance test demonstrated notable accuracy for savings deposit volumes but struggled with transaction deposits. Results indicated savings deposit volumes were more predictable than transaction deposits. These findings could enhance banks’ balance sheet management by improving non-maturing deposit forecasting. The proposed methodologies could be utilized for internal and regulatory purposes, such as calculating the liquidity coverage ratio under Basel regulations. Full article
(This article belongs to the Section Mathematics and Finance)
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15 pages, 249 KiB  
Article
Do ESG Risk Scores and Board Attributes Impact Corporate Performance? Evidence from Saudi-Listed Companies
by Ines Chaabouni, Noura Ben Mbarek and Ezer Ayadi
J. Risk Financial Manag. 2025, 18(2), 83; https://doi.org/10.3390/jrfm18020083 - 5 Feb 2025
Viewed by 392
Abstract
This research examines the link between environmental, social, and governance (ESG) risk ratings and board characteristics on corporate performance. Using 2023 data from 117 companies on the Saudi Stock Exchange, the study employs Ordinary Least Squares (OLS) regression and Python for data analysis. [...] Read more.
This research examines the link between environmental, social, and governance (ESG) risk ratings and board characteristics on corporate performance. Using 2023 data from 117 companies on the Saudi Stock Exchange, the study employs Ordinary Least Squares (OLS) regression and Python for data analysis. Our findings reveal a negative effect of ESG risk scores on financial performance measures, indicating that higher ESG risks hinder firm performance measured by ROE and ROIC. Furthermore, both the size and independence of the board decrease corporate performance in Saudi firms. Family-controlled ownership structures often limit the effectiveness of independent directors in enhancing performance. In Saudi firms, women’s board participation shows an insignificant impact on corporate performance, suggesting that the Tokenism Theory may apply. It is recommended that firms empower women in leadership roles and develop robust ESG risk management frameworks to mitigate risks and enhance financial performance. Full article
25 pages, 5249 KiB  
Article
The Impact of Public Environmental Concern on Corporate ESG Performance
by Tsun Se Cheong, Shuaiyi Liu, Ning Ma and Tingting Han
J. Risk Financial Manag. 2025, 18(2), 82; https://doi.org/10.3390/jrfm18020082 - 5 Feb 2025
Viewed by 359
Abstract
Utilizing an advanced machine learning algorithm, particularly the Artificial Neural Network (ANN) framework, this study reveals a significant nonlinear and even cyclical relationship between public concern about environmental issues and the ESG performance of Chinese A-share listed companies, covering the period from 2004 [...] Read more.
Utilizing an advanced machine learning algorithm, particularly the Artificial Neural Network (ANN) framework, this study reveals a significant nonlinear and even cyclical relationship between public concern about environmental issues and the ESG performance of Chinese A-share listed companies, covering the period from 2004 to 2020. The findings highlight the effectiveness of the Self-Organizing Map (SOM)-ANN framework in elucidating the empirical relationship between these variables. We contend that robust public monitoring can enhance companies’ ESG initiatives, and we recommend that policymakers implement a series of measures to safeguard and promote public involvement in decision-making processes. Furthermore, our analysis of the combined effects of public concern and various performance metrics on firms’ ESG outcomes indicates that the diversity among firms is crucial for determining the most appropriate level of public participation in their sustainable development efforts. Therefore, managers and policymakers should focus on firm-specific attributes instead of adopting a “one-size-fits-all” approach to maximize the benefits of public engagement. Full article
(This article belongs to the Special Issue Sustainable Finance and ESG Investment)
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24 pages, 394 KiB  
Article
Financial Strategies Driving Market Performance During Recession in Nigerian Manufacturing Firms
by Okechukwu Enyeribe Njoku and Younghwan Lee
J. Risk Financial Manag. 2025, 18(2), 81; https://doi.org/10.3390/jrfm18020081 - 5 Feb 2025
Viewed by 479
Abstract
This study examines the interplay between leverage, dividend policy, and market performance in Nigeria’s manufacturing sector during the economic downturn of 2016–2020. Drawing on signaling and trade-off theories, we investigate how firms balanced leverage and dividend payouts to sustain performance amidst macroeconomic shocks, [...] Read more.
This study examines the interplay between leverage, dividend policy, and market performance in Nigeria’s manufacturing sector during the economic downturn of 2016–2020. Drawing on signaling and trade-off theories, we investigate how firms balanced leverage and dividend payouts to sustain performance amidst macroeconomic shocks, including currency depreciation, inflation, and weakened consumer demand. Using panel data from 26 Nigerian Stock Exchange-listed firms, the study applies pooled ordinary least squares (POLS) and fixed-effect models (FEM) to analyze the direct and interactive effects of leverage and dividend policy on market performance, controlling for profitability, firm size, and taxation. The findings reveal that leverage generally exerts a negative effect on firm value, particularly long-term debt, which increases financial distress risks. However, the interaction between leverage and dividend payouts positively moderates this relationship, suggesting that firms use dividends strategically to signal stability and mitigate leverage-related risks. Profitability emerges as a key determinant of firm value, while short-term debt provides operational flexibility, and taxation imposes significant financial strain. Larger firms demonstrate greater resilience, benefiting from scale economies and diversified funding sources. This research highlights the importance of an integrative financial strategy during periods of economic uncertainty, emphasizing the complementary roles of leverage and dividend policy in enhancing firm value. The findings offer critical insights for policymakers and corporate managers in emerging markets, advocating for tax reforms and prudent financial management to improve business resilience. By addressing gaps in the literature, this study contributes to the understanding of financial decision-making in developing economies. Full article
24 pages, 344 KiB  
Article
Enhancing Technical Efficiency in the Oil and Gas Sector: The Role of CEO Characteristics and Board Composition
by Kaouther Zaabouti and Ezzeddine Ben Mohamed
J. Risk Financial Manag. 2025, 18(2), 80; https://doi.org/10.3390/jrfm18020080 - 4 Feb 2025
Viewed by 478
Abstract
This study investigates how CEO characteristics, board composition, and firm size influence the technical efficiency (TE) of energy firms. We aim to understand how these factors contribute to production inefficiencies, which may help explain fluctuations in oil prices. Using stochastic frontier analysis (SFA), [...] Read more.
This study investigates how CEO characteristics, board composition, and firm size influence the technical efficiency (TE) of energy firms. We aim to understand how these factors contribute to production inefficiencies, which may help explain fluctuations in oil prices. Using stochastic frontier analysis (SFA), we analyze data from 100 American energy firms over the period from 2006 to 2019. Our results show that inefficiencies in production are primarily driven by specific CEO traits, the size and structure of the board, and the overall size of the firm. Based on the findings of this study, we recommend focusing on the selection of executive managers with specific qualifications, particularly those with extensive experience in managing oil and gas companies. Leadership positions should prioritize seasoned managers with accumulated expertise in this sector, and preference should be given to candidates with advanced educational backgrounds. Encouraging CEOs to acquire equity stakes in the company can significantly boost the technical efficiency of oil and gas firms. Additionally, offering competitive salaries and performance-based bonuses may further enhance managerial effectiveness and drive technical improvements. In addition, expanding the size of boards of directors in oil and gas companies is also anticipated to positively influence their technical efficiency. Finally, pursuing mergers and acquisitions to grow the scale of oil and gas companies represents a strategic approach to improving operational efficiency while contributing to the stability of global energy prices. Full article
(This article belongs to the Section Business and Entrepreneurship)
27 pages, 378 KiB  
Article
Corruption Control as a Catalyst for Financial Development: A Global Comparative Study
by Recep Ali Küçükçolak, Gözde Bozkurt, Necla İlter Küçükçolak, Adnan Veysel Ertemel and Sami Küçükoğlu
J. Risk Financial Manag. 2025, 18(2), 79; https://doi.org/10.3390/jrfm18020079 - 3 Feb 2025
Viewed by 734
Abstract
This study investigates the impact of anti-corruption efforts on financial development across different economies, using G7 and E7 countries as comparative groups. Recognizing corruption as a barrier to economic growth, the research examines how effective corruption control can enhance the efficiency of the [...] Read more.
This study investigates the impact of anti-corruption efforts on financial development across different economies, using G7 and E7 countries as comparative groups. Recognizing corruption as a barrier to economic growth, the research examines how effective corruption control can enhance the efficiency of the financial sector, foreign direct investment (FDI), and capital market development. The methodology includes panel cointegration tests—namely Pedroni, Kao, and Westerlund tests—alongside fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) estimations to assess the long-term relationships between corruption control and financial development. The findings reveal a statistically significant cointegration relationship, suggesting that anti-corruption measures positively influence financial development in both G7 and E7 countries, albeit more strongly in E7 economies. Specifically, the Westerlund test results, which take cross-sectional dependencies into account, reinforce the robustness of the findings. The study underscores the importance of tailoring anti-corruption policies to each country’s unique economic framework, highlighting that while G7 countries benefit from advanced institutional structures, E7 countries experience more pronounced effects of corruption control on financial development and FDI. These insights contribute to the policy discourse on sustainable economic development by emphasizing the role of governance quality in fostering robust financial systems and attracting international investment. Full article
(This article belongs to the Special Issue Financial Econometrics and Quantitative Economic Analysis)
15 pages, 273 KiB  
Article
Financial Openness, Trade Openness, and Economic Growth Nexus: A Dynamic Panel Analysis for Emerging and Developing Economies
by Thembalethu Macdonald Seti, Sukoluhle Mazwane and Mzuyanda Christian
J. Risk Financial Manag. 2025, 18(2), 78; https://doi.org/10.3390/jrfm18020078 - 3 Feb 2025
Viewed by 769
Abstract
International market openness has long been regarded as critical for economic development, and recent evidence highlights the distinct roles of financial and trade openness, particularly in emerging and developing economies. This study examines the impact of financial and trade openness on economic growth [...] Read more.
International market openness has long been regarded as critical for economic development, and recent evidence highlights the distinct roles of financial and trade openness, particularly in emerging and developing economies. This study examines the impact of financial and trade openness on economic growth in ten emerging and developing countries from 1970 to 2023. It employs a dynamic panel generalized method of moments (GMM) model, which is selected for its ability to address potential endogeneity and dynamic relationships within panel data. The analysis finds that both financial and trade openness positively influence economic growth and that stable macroeconomic conditions and political stability enhance these growth-promoting effects. In the context of growing geo-economic tensions, trade fairness, and national security concerns, the study underscores the need for policies that balance global integration with national interests. These findings suggest the importance of designing policies that promote greater integration into global financial and trading systems while ensuring sound macroeconomic fundamentals and supportive institutions. The study recommends that policymakers pursue strategic liberalization and strengthen governance structures to achieve sustained and inclusive growth. Full article
(This article belongs to the Special Issue Open Economy Macroeconomics)
30 pages, 3231 KiB  
Article
The End of Mean-Variance? Tsallis Entropy Revolutionises Portfolio Optimisation in Cryptocurrencies
by Sana Gaied Chortane and Kamel Naoui
J. Risk Financial Manag. 2025, 18(2), 77; https://doi.org/10.3390/jrfm18020077 (registering DOI) - 3 Feb 2025
Viewed by 622
Abstract
Has the mean-variance framework become obsolete? In this paper, we replace traditional variance–covariance methods of portfolio optimisation with relative Tsallis entropy and mutual information measures. Its goal is to enhance risk management and diversification in complicated finance ecosystems. We utilize the S&P 500 [...] Read more.
Has the mean-variance framework become obsolete? In this paper, we replace traditional variance–covariance methods of portfolio optimisation with relative Tsallis entropy and mutual information measures. Its goal is to enhance risk management and diversification in complicated finance ecosystems. We utilize the S&P 500 and Bitwise 10 cryptocurrency indices’ daily returns (2019–2024 data) and conduct our analysis to the year 2020 under extreme shocks. Many models were trained with different configurations, like mean-variance (MV), mean-entropy (ME), and mean-mutual information (MI) traders and their corresponding variants, using Sharpe’s ratio, Jensen’s alpha, and entropy value of risk (EVAR). The findings indicate that entropic models outperform conventional models in terms of diversification and, especially, extreme risk management. Because the appropriate normalization conditions often fail to be satisfied, we can informally see that after a recalibration of the effective frontier, we obtain from EVAR an accumulated resilience aspect to these rare events while also observing the great potential of entropy-based models to replicate non-linear dependencies between assets. The results show that models combining entropy and mutual information optimise the gain–loss ratio (GLR), providing stable diversification and improved risk management, while maximising returns in complex and volatile market environments. Full article
(This article belongs to the Special Issue Mathematical Modelling in Economics and Finance)
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30 pages, 1970 KiB  
Article
The Stability of the Financial Cycle: Insights from a Markov Switching Regression in South Africa
by Khwazi Magubane
J. Risk Financial Manag. 2025, 18(2), 76; https://doi.org/10.3390/jrfm18020076 - 3 Feb 2025
Viewed by 796
Abstract
The stability of the financial cycle is paramount for the effective formulation and implementation of macroprudential policy in South Africa. The South African Reserve Bank (SARB) and the Prudential Authority strive to mitigate excessive fluctuations in the financial cycle, recognising that a stable [...] Read more.
The stability of the financial cycle is paramount for the effective formulation and implementation of macroprudential policy in South Africa. The South African Reserve Bank (SARB) and the Prudential Authority strive to mitigate excessive fluctuations in the financial cycle, recognising that a stable cycle provides more reliable signals for financial sector activity and anchors macroprudential policy decisions. However, the tightening of macroprudential policy by the SARB and the Prudential Authority during the post-2009 recovery period, despite mild signs of recovery from the global financial crisis, raises concerns about the stability of the South African financial cycle. This study aims to construct a financial cycle volatility index to assess its stability and identify the key macroeconomic drivers of financial instability in South Africa. Employing monthly data from 1970 to 2024, the study utilises a dynamic conditional correlation model and a Markov switching regression model to analyse the relationship between macroeconomic variables and financial stability. The findings reveal heightened financial cycle volatility around crisis periods and demonstrate that macroeconomic variables such as exchange rate fluctuations, price level changes, and implementing monetary and macroprudential policies can significantly increase financial instability. These results suggest a need for proactive and aggressive macroprudential policy measures in the years preceding potential crises. Moreover, the study’s findings emphasise the importance of considering macroeconomic conditions when calibrating financial cycle policies. Full article
(This article belongs to the Special Issue Financial Econometrics and Quantitative Economic Analysis)
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27 pages, 2311 KiB  
Article
The Impact of Earnings Announcements Before and After Regular Market Hours on Asset Price Dynamics in the Fintech Era
by Janhavi Shankar Tripathi and Erick W. Rengifo
J. Risk Financial Manag. 2025, 18(2), 75; https://doi.org/10.3390/jrfm18020075 - 2 Feb 2025
Viewed by 616
Abstract
With the recent increase in retail investor participation led by commission-less fintech trading applications and new features like fractional trading, we now have higher volatility and significantly quicker price changes. This makes it hard to make informed trading decisions. Moreover, these effects are [...] Read more.
With the recent increase in retail investor participation led by commission-less fintech trading applications and new features like fractional trading, we now have higher volatility and significantly quicker price changes. This makes it hard to make informed trading decisions. Moreover, these effects are exacerbated even further around earnings announcements days. In this paper, we use Nasdaq data feed at a minute frequency and show that there is a significant increase in the slope of the price–volume structure during extended hours (after-hours, or pre-market hours) as compared with the ones observed during regular market times. Our analysis shows that the liquidity is much less during the extended market hours. As such, earnings announcements of stocks during these times have a significantly larger price impact than those stocks that have their earnings announced during regular trading hours. This significant difference can be explained by observing the limit order book structures during these different trading periods. We suggest that the earnings announcements should not be made during extended hours given the significantly lower liquidity and thus, the significantly larger price impact that not only determines the prices for the next trading session but also sets the new “fundamental” price signals for the stocks. Full article
(This article belongs to the Special Issue Financial Technologies (Fintech) in Finance and Economics)
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32 pages, 3133 KiB  
Article
Innovative Credit Risk Assessment: Leveraging Social Media Data for Inclusive Credit Scoring in Indonesia’s Fintech Sector
by Andry Alamsyah, Aufa Azhari Hafidh and Annisa Dwiyanti Mulya
J. Risk Financial Manag. 2025, 18(2), 74; https://doi.org/10.3390/jrfm18020074 - 2 Feb 2025
Viewed by 576
Abstract
The financial technology domain has undertaken significant strides toward more inclusive credit scoring systems by integrating alternative data sources, prompting an exploration of how we can further simplify the process of efficiently assessing creditworthiness for the younger generation who lack traditional credit histories [...] Read more.
The financial technology domain has undertaken significant strides toward more inclusive credit scoring systems by integrating alternative data sources, prompting an exploration of how we can further simplify the process of efficiently assessing creditworthiness for the younger generation who lack traditional credit histories and collateral assets. This study introduces a novel approach leveraging social media analytics and advanced machine learning techniques to assess the creditworthiness of individuals without traditional credit histories and collateral assets. Conventional credit scoring methods tend to rely heavily on central bank credit information, especially traditional collateral assets such as property or savings accounts. We leverage demographics, personality, psycholinguistics, and social network data from LinkedIn profiles to develop predictive models for a comprehensive financial reliability assessment. Our credit scoring methods propose scoring models to produce continuous credit scores and classification models to categorize potential borrowers—particularly young individuals lacking traditional credit histories or collateral assets—as either good or bad credit risks based on expert judgment thresholds. This innovative approach questions conventional financial evaluation methods and enhances access to credit for marginalized communities. The research question addressed in this study is how to develop a credit scoring mechanism using social media data. This research contributes to the advancing fintech landscape by presenting a framework that has the potential to transform credit scoring practices to adapt to modern economic activities and digital footprints. Full article
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28 pages, 363 KiB  
Article
Unraveling the Impact of Product Market Competition and Earnings Volatility on Zero-Leverage Policies
by Imed Chkir, Alireza Rahimzadeh and Syrine Sassi
J. Risk Financial Manag. 2025, 18(2), 73; https://doi.org/10.3390/jrfm18020073 - 1 Feb 2025
Viewed by 482
Abstract
This paper investigates the impact of product market competition (PMC) on firms’ adoption of zero-leverage (ZL) strategies and examines whether this relationship is influenced by earnings volatility. Using data from 1989 to 2019, we analyze the PMC and ZL behavior of firms using [...] Read more.
This paper investigates the impact of product market competition (PMC) on firms’ adoption of zero-leverage (ZL) strategies and examines whether this relationship is influenced by earnings volatility. Using data from 1989 to 2019, we analyze the PMC and ZL behavior of firms using logistic regression. Our results indicate that as PMC intensifies, firms are more likely to adopt ZL policies. This effect is stronger in firms with higher earnings volatility, suggesting a significant interaction between PMC and earnings volatility in shaping capital structure decisions. This study extends existing research by highlighting the role of earnings volatility in strengthening the relationship between PMC and ZL behavior, offering new insights into the dynamics between market competition, financial decisions, and firm risk. Full article
(This article belongs to the Special Issue Firms’ Behavior, Productivity and Economics of Innovation II)
16 pages, 658 KiB  
Article
On the Use of the Harmonic Mean Estimator for Selecting the Hypothetical Income Distribution from Grouped Data
by Kazuhiko Kakamu
J. Risk Financial Manag. 2025, 18(2), 72; https://doi.org/10.3390/jrfm18020072 - 1 Feb 2025
Viewed by 394
Abstract
It is known that the harmonic mean estimator is a consistent estimator of the marginal likelihood and is easy to implement, but it has severe biases and does not change as much as the prior distribution changes. In this study, we investigate the [...] Read more.
It is known that the harmonic mean estimator is a consistent estimator of the marginal likelihood and is easy to implement, but it has severe biases and does not change as much as the prior distribution changes. In this study, we investigate the use of the harmonic mean estimator to select the hypothetical income distribution from grouped data through Monte Carlo simulations and apply it to real data in Japan. From the results, we confirm that there are significant biases, but it can be reliably used to select an appropriate model only when the sample size is large enough under appropriate prior settings. Full article
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24 pages, 672 KiB  
Article
The Big Three Passive Investors and the Cost of Equity Capital
by Sebahattin Demirkan and Ted M. Fikret Polat
J. Risk Financial Manag. 2025, 18(2), 71; https://doi.org/10.3390/jrfm18020071 - 1 Feb 2025
Viewed by 394
Abstract
This study investigates the role of the Big Three passive investors (BlackRock, Vanguard, and State Street) in influencing firms’ cost of equity. By examining the unique ownership structure these investors bring, the research sheds light on a pivotal yet underexplored aspect of institutional [...] Read more.
This study investigates the role of the Big Three passive investors (BlackRock, Vanguard, and State Street) in influencing firms’ cost of equity. By examining the unique ownership structure these investors bring, the research sheds light on a pivotal yet underexplored aspect of institutional ownership and its implications for corporate financing. Using a comprehensive dataset spanning from 1997 to 2016, this study demonstrates that increased ownership by the Big Three is associated with improved disclosure practices and reduced information asymmetry, leading to a lower cost of equity. However, the study also uncovers a nuanced trade-off, as concentrated ownership may introduce liquidity risks in certain contexts. These findings bridge a critical gap in the literature by reconciling divergent perspectives on the role of passive investors and provide actionable insights for institutional investors, regulators, and corporate managers seeking to understand the broader implications of passive ownership on firm valuation and financing strategies. Full article
(This article belongs to the Special Issue Corporate Governance and Earnings Management)
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18 pages, 306 KiB  
Article
Characteristics of the Chairman of the Board of Directors and Their Impact on Dividend Payments in the Moroccan Stock Exchange
by Reda Louziri and Khadija Oubal
J. Risk Financial Manag. 2025, 18(2), 70; https://doi.org/10.3390/jrfm18020070 - 1 Feb 2025
Viewed by 303
Abstract
This study examines the influence of chairman characteristics on dividend policy within Moroccan firms listed on the Casablanca Stock Exchange, addressing a critical gap in the behavioral finance literature. This research focuses on five key attributes of chairmen—age, gender, nationality, tenure, and founder [...] Read more.
This study examines the influence of chairman characteristics on dividend policy within Moroccan firms listed on the Casablanca Stock Exchange, addressing a critical gap in the behavioral finance literature. This research focuses on five key attributes of chairmen—age, gender, nationality, tenure, and founder status—and analyzes their impact on dividend decisions over a 16-year period (2003–2018). A fixed effects panel data model was employed, incorporating six control variables—firm age, growth opportunities, size, board size, female representation, and foreign ownership. The results demonstrate that chairman age and tenure significantly affect dividend policy. Older chairmen are more risk-averse, favoring higher dividend distributions to ensure financial stability, while longer-tenured chairmen tend to retain earnings for aggressive investments, reflecting overconfidence. The other variables—gender, nationality, and founder status—showed no statistically significant effects in this context. This research provides the first empirical evidence on the relationship between chairman characteristics and dividend policy in Morocco. The findings offer valuable insights for investors, analysts, and policymakers in emerging markets, emphasizing the role of leadership traits in corporate financial strategies. By highlighting the importance of behavioral factors, this study enhances understanding of dividend policy determinants in developing economies. Full article
(This article belongs to the Special Issue Corporate Dividend Payout Policy)
18 pages, 568 KiB  
Article
Board Structure and Executive Compensation for R&D Spending in Innovative Companies Amid COVID-19
by Muhammad Abrar-ul-haq
J. Risk Financial Manag. 2025, 18(2), 69; https://doi.org/10.3390/jrfm18020069 - 1 Feb 2025
Viewed by 445
Abstract
Innovation has played a vital role in continuing business operations worldwide amid the challenges of the COVID-19 pandemic. Innovation is critical for the success and survival of global organizations. Due to the risky long-term nature of innovation, executives with decision-making power may act [...] Read more.
Innovation has played a vital role in continuing business operations worldwide amid the challenges of the COVID-19 pandemic. Innovation is critical for the success and survival of global organizations. Due to the risky long-term nature of innovation, executives with decision-making power may act cynically. Such pessimistic actions become normal when executive compensation is based on the firm’s short-term outcomes. Therefore, the current research examines the effect of executive compensation on research and development (R&D) investment using data from the world’s top 48 innovative companies in Australia. The proposed model was tested using Smart-PLS (v.3.2.8). The findings indicate that board composition significantly and positively affects R&D investment. Likewise, the long-term composition of executives has a positive effect, whereas short-term executive compensation has a negative effect on R&D. Hence, this research suggests that to increase innovation, firms should control the myopic actions of top management by orientating their compensation toward long-term innovation. Full article
(This article belongs to the Special Issue Bridging Financial Integrity and Sustainability)
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20 pages, 1054 KiB  
Article
Threshold Effects of Economic-Policy Uncertainty on Food Security in Nigeria
by Goodness C. Aye, Lydia N. Kotur and Peter I. Ater
J. Risk Financial Manag. 2025, 18(2), 68; https://doi.org/10.3390/jrfm18020068 - 30 Jan 2025
Viewed by 541
Abstract
The study investigated the threshold effects of economic-policy uncertainty on food security in Nigeria, covering the period from 1970 to 2021. Summary statistics and unit root tests were employed for preliminary analysis, while the threshold regression model was used to realize the key [...] Read more.
The study investigated the threshold effects of economic-policy uncertainty on food security in Nigeria, covering the period from 1970 to 2021. Summary statistics and unit root tests were employed for preliminary analysis, while the threshold regression model was used to realize the key objective of the study. The results revealed that adult population (ADULTPOP), environmental degradation (ENVT), exchange rate uncertainty (EXRU), financial deepening (FINDEEP), food security (FS), government expenditure in agriculture uncertainty (GEAU), global economic uncertainty (GEU), inflation (INF), and interest rate uncertainty (INRU) showed positive mean, maximum, and minimum values over the study period. Most variables exhibited low volatility, except for inflation (SD = 15.619) and interest rate uncertainty (SD = 8.435), which had relatively higher volatility. ADF and PP unit root tests indicated that ADULTPOP, FINDEEP, and FS had unit roots in levels, but became stationary after first differencing (integrated of order one). ENVT, EXRU, GEAU, GEU, INF, and INRU were stationary in level, indicating they were integrated of order zero. The result showed a threshold value of 0.077 for global economic uncertainty (GEU). Above this threshold, exchange rate uncertainty (EXRU) had a statistically significant effect on food security (p = 0.031). Non-threshold variables such as adult population (p = 0.000) and environmental degradation (p = 0.000) also had significant effects on food security. The study thus provided evidence of threshold effects of economic-policy uncertainty on food security. The study recommends that policymakers incorporate threshold values in policy implementation to mitigate risks linked to high economic-policy uncertainty. The Government is also advised to establish strategies for stabilizing exchange rates or alleviating their harmful effects on food supply, which may be crucial for achieving food security. Full article
(This article belongs to the Section Economics and Finance)
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19 pages, 298 KiB  
Article
Impact of IPSAS Adoption on Governance and Corruption: A Comparative Study of Southern Europe
by Bassam Mohammad Maali and Amer Morshed
J. Risk Financial Manag. 2025, 18(2), 67; https://doi.org/10.3390/jrfm18020067 - 30 Jan 2025
Viewed by 573
Abstract
This study examines the impact that International Public Sector Accounting Standards adoption might have on governance quality and corruption control in Spain, Portugal, and Italy. IPSAS was designed to globally enhance public transparency and accountability thanks to accrual accounting. However, its effectiveness in [...] Read more.
This study examines the impact that International Public Sector Accounting Standards adoption might have on governance quality and corruption control in Spain, Portugal, and Italy. IPSAS was designed to globally enhance public transparency and accountability thanks to accrual accounting. However, its effectiveness in fighting corruption and steering better governance has varied across institutional contexts and implementation phases. This paper examines, using partial least squares structural equation modeling (PLS-SEM) and comparative analysis, how legal systems, political stability, and anti-corruption measures mediate the relationship. The results indicate that full IPSAS adoption, as in the case of Spain, significantly enhances governance if the institutional framework is solid and, by extension, reduces corruption. Partial adoption, such as that by Portugal, exposes moderate improvements, but Italy, still in the preparation of the process, shows the poorest result. The study identifies that the legal system, along with complementary reforms like capacity building and political stability, is a very crucial factor in enhancing the IPSAS impact. This covers the evidential gaps and provides actionable insights for policymakers, while at the same time underlining institutional strength as a key driver for IPSAS adoption, contributing to broader discussions on advancing public sector accounting reforms. Full article
(This article belongs to the Special Issue Auditing, Corporate Governance and Financial Reporting Quality)
23 pages, 3658 KiB  
Article
A Supply and Demand Framework for Bitcoin Price Forecasting
by Murray A. Rudd and Dennis Porter
J. Risk Financial Manag. 2025, 18(2), 66; https://doi.org/10.3390/jrfm18020066 - 30 Jan 2025
Viewed by 8009
Abstract
We develop a flexible supply and demand equilibrium framework that can be used to develop pricing models to forecast Bitcoin’s price trajectory based on its fixed, inelastic supply and evolving demand dynamics. This approach integrates Bitcoin’s unique monetary attributes with demand drivers such [...] Read more.
We develop a flexible supply and demand equilibrium framework that can be used to develop pricing models to forecast Bitcoin’s price trajectory based on its fixed, inelastic supply and evolving demand dynamics. This approach integrates Bitcoin’s unique monetary attributes with demand drivers such as institutional adoption and long-term holding patterns. Using the April 2024 halving as a baseline, we explore model scenarios with varying assumptions about growth in adoption and supply-side constraints, calibrated to real-world data. Our findings indicate that institutional and sovereign accumulation can significantly influence price trajectories, with increasing demand intensifying the impact of Bitcoin’s constrained liquidity. Forecasts suggest that modest withdrawals from liquid supply to strategic reserves could lead to substantial price appreciation over the medium term, while higher withdrawal levels may induce volatility due to supply scarcity. These results highlight Bitcoin’s potential as a long-term investment and underline the importance of integrating economic fundamentals into forward-looking portfolio strategies. Our framework provides flexibility for testing different market scenarios, demand curve functional forms, and parameterizations, offering a tool for investors and policymakers considering Bitcoin’s role as a strategic asset. By advancing a fundamentals-based approach, this study contributes to the broader understanding of how Bitcoin’s supply–demand dynamics influence market behavior. Full article
(This article belongs to the Special Issue Blockchain Technologies and Cryptocurrencies​)
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23 pages, 361 KiB  
Article
Whistleblowing Disclosure as a Shield Against Earnings Management: Evidence from the Insurance Sector
by Ines Belgacem
J. Risk Financial Manag. 2025, 18(2), 65; https://doi.org/10.3390/jrfm18020065 - 30 Jan 2025
Viewed by 509
Abstract
One of the fundamental components of internal controls, a whistleblowing system (WBS) is crucial for preventing fraud, addressing irregularities, and enhancing good governance. The purpose of this study is to investigate the impact of whistleblower disclosures on earnings management in Saudi Arabia’s Takaful [...] Read more.
One of the fundamental components of internal controls, a whistleblowing system (WBS) is crucial for preventing fraud, addressing irregularities, and enhancing good governance. The purpose of this study is to investigate the impact of whistleblower disclosures on earnings management in Saudi Arabia’s Takaful Insurance (TKI) sector between 2017 and 2023. To this end, a whistleblowing index was constructed as a tool to evaluate the whistleblowing framework’s effectiveness. Using the Dynamic Generalized Method of Moments (GMM) to account for endogeneity, it was found that most Saudi insurance companies increased their efforts to disclose information about whistleblowers, which significantly reduced earnings management practices. Specifically, the study concludes that the size of the audit committee (ACS) significantly and negatively affects how insurance businesses manage their earnings when a whistleblower system is in place. Additionally, there is a notable and adverse effect on earnings management from board size (BSZ), the percentage of non-executive independent members (PNIM), and Shariah board size (SBS). However, it was found that earnings management is unaffected by the frequency of board meetings (BMFR). This study adds to the body of knowledge by demonstrating how corporate governance enhances the effectiveness of the whistleblowing system. Full article
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