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Accrual-Based Earnings Management in Cross-Border Mergers and Acquisitions: The Role of Institutional Differences and Geographic Distance
A Supply and Demand Framework for Bitcoin Price Forecasting
Risk-Adjusted Performance of Random Forest Models in High-Frequency Trading
Navigating the Trade-Offs: The Impact of Aggressive Working Capital Policies on Stock Return Volatility
Blockchain Technology in the Process of Financing the Construction and Purchase of Commercial Vessels

Journal Description

Journal of Risk and Financial Management

Journal of Risk and Financial Management is an international, peer-reviewed, open access journal on risk and financial management, published monthly online by MDPI.

Open Access— free for readers, with article processing charges (APC) paid by authors or their institutions.
High Visibility: indexed within Scopus, EconBiz, EconLit, RePEc, and other databases.
Journal Rank: CiteScore - Q1 (Business, Management and Accounting (miscellaneous))
Rapid Publication: manuscripts are peer-reviewed and a first decision is provided to authors approximately 20.5 days after submission; acceptance to publication is undertaken in 4.6 days (median values for papers published in this journal in the first half of 2025).
Recognition of Reviewers: reviewers who provide timely, thorough peer-review reports receive vouchers entitling them to a discount on the APC of their next publication in any MDPI journal, in appreciation of the work done.

Imprint Information Journal Flyer Open Access ISSN: 1911-8074

Latest Articles

31 pages, 1822 KiB

Open AccessArticle

Banking Supervision and Risk Management in Times of Crisis: Evidence from Greece’s Systemic Banks (2015–2024)

by Georgios Dedeloudis, Petros Lois and Spyros Repousis

J. Risk Financial Manag. 2025, 18(7), 386; https://doi.org/10.3390/jrfm18070386 - 11 Jul 2025

This study examines the role of supervisory frameworks in shaping the risk management behavior of Greece’s four systemic banks during the period of 2015–2024. It explores how regulatory reforms under Capital Requirements Regulation II, Basel III, and European Central Bank oversight influenced capital [...] Read more.

This study examines the role of supervisory frameworks in shaping the risk management behavior of Greece’s four systemic banks during the period of 2015–2024. It explores how regulatory reforms under Capital Requirements Regulation II, Basel III, and European Central Bank oversight influenced capital adequacy, asset quality, and liquidity metrics. Employing a quantitative methodology, this study analyzes secondary data from Pillar III disclosures, annual financial reports, and supervisory statements. Key risk indicators (capital adequacy ratio, non-performing exposure ratio, liquidity coverage ratio, and risk-weighted assets) are evaluated in conjunction with regulatory interventions, such as International Financial Reporting Standards 9 transitional relief, the Hercules Asset Protection Scheme, and European Central Bank liquidity measures. The findings reveal that enhanced supervision contributed to improved resilience and regulatory compliance. International Financial Reporting Standards 9 transitional arrangements were pivotal in maintaining capital thresholds during stress periods. Supervisory flexibility and extraordinary European Central Bank support measures helped banks absorb shocks and improve risk governance. Differences across banks highlight the impact of institutional strategy on regulatory performance. This study offers a rare longitudinal assessment of supervisory influence on bank risk behavior in a high-volatility Eurozone context. Covering an entire decade (2015–2024), it uniquely links institutional strategies with evolving regulatory frameworks, including crisis-specific interventions such as International Financial Reporting Standards 9 relief and asset protection schemes. The results provide insights for policymakers and regulators on how targeted supervisory interventions and transitional mechanisms can enhance banking sector resilience during protracted crises. Full article

(This article belongs to the Special Issue Future of Accounting and Finance: Trends and Technologies Shaping the Industry)

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14 pages, 296 KiB

Open AccessArticle

Determinants of Capital Structure: Does Growth Opportunity Matter?

by Ndonwabile Zimasa Mabandla and Godfrey Marozva

J. Risk Financial Manag. 2025, 18(7), 385; https://doi.org/10.3390/jrfm18070385 - 11 Jul 2025

This study explores the impact of growth opportunities on the capital structure of South African banks, utilising panel data from registered banking institutions covering the period from 2014 to 2023. While a substantial body of literature examines the relationship between growth prospects and [...] Read more.

This study explores the impact of growth opportunities on the capital structure of South African banks, utilising panel data from registered banking institutions covering the period from 2014 to 2023. While a substantial body of literature examines the relationship between growth prospects and corporate leverage, limited attention has been paid to this interaction within the banking sector, particularly in emerging economies. By employing the dynamic panel Generalised Method of Moments (GMM) estimator to address endogeneity concerns, the analysis reveals a statistically significant positive relationship between growth opportunities and both the total debt ratio (TDR) and the long-term debt ratio (LTDR). In contrast, a significant negative association is found between growth opportunities and the short-term debt ratio (STDR). The findings suggest that banks with stronger growth prospects are more inclined to utilise long-term financing, possibly reflecting shareholder preferences for institutions with favourable future outlooks and lower refinancing risks. These results highlight the importance of aligning capital structure decisions with an institution’s growth trajectory, while indicating that this relationship shifts depending on the maturity of the debt considered. This study contributes to the existing literature by contextualising capital structure decisions within the framework of growth opportunities. Structure theory within the context of the banking sector in a developing market offers practical insights for strategic financial planning and regulatory policy. Full article

(This article belongs to the Section Financial Markets)

25 pages, 1164 KiB

Open AccessArticle

The Information Content of the Deferred Tax Valuation Allowance: Evidence from Venture-Capital-Backed IPO Firms

by Eric Allen

J. Risk Financial Manag. 2025, 18(7), 384; https://doi.org/10.3390/jrfm18070384 - 11 Jul 2025

This study examines the deferred tax valuation allowance disclosures of a sample of venture-capital-backed IPO firms that incurred a net operating loss (NOL) in the period prior to their public offering (IPO). I find that 82 percent of these firms record an allowance [...] Read more.

This study examines the deferred tax valuation allowance disclosures of a sample of venture-capital-backed IPO firms that incurred a net operating loss (NOL) in the period prior to their public offering (IPO). I find that 82 percent of these firms record an allowance that reduces the associated deferred tax asset to zero, that the choice to record the allowance is largely driven by a firm’s history of losses, and that the allowance is associated with lower future book income. I further propose a new explanation for the presence of the allowance: the Section 382 ownership change limitation, which can cause firms to record an allowance independent of their past profitability or expectations about future earnings. I find that firms consider this limitation when recording the allowance, and that controlling for it can enhance the signal regarding future income. Full article

(This article belongs to the Special Issue Tax Avoidance and Earnings Management)

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23 pages, 504 KiB

Open AccessArticle

Non-Performing Loans and Their Impact on Investor Confidence: A Signaling Theory Perspective—Evidence from U.S. Banks

by Richard Arhinful, Bright Akwasi Gyamfi, Leviticus Mensah and Hayford Asare Obeng

J. Risk Financial Manag. 2025, 18(7), 383; https://doi.org/10.3390/jrfm18070383 - 10 Jul 2025

Bank operations are contingent upon investor confidence, particularly during periods of economic distress. If investor confidence drops, a bank faces difficulties obtaining money, higher borrowing costs, and lower stock values. Non-performing loans (NPLs) potentially jeopardize a bank’s long-term viability and short-term profitability, and [...] Read more.

Bank operations are contingent upon investor confidence, particularly during periods of economic distress. If investor confidence drops, a bank faces difficulties obtaining money, higher borrowing costs, and lower stock values. Non-performing loans (NPLs) potentially jeopardize a bank’s long-term viability and short-term profitability, and investors are naturally wary of institutions that pose a high credit risk. The purpose of the study was to explore how non-performing loans influence investor confidence in banks. A purposive sampling technique was used to identify 253 New York Stock Exchange banks in the Thomson Reuters Eikon DataStream that satisfied all the inclusion and exclusion selection criteria. The Common Correlated Effects Mean Group (CCEMG) and Generalized Method of Moments (GMM) models were used to analyze the data, providing insight into the relationship between the variables. The study discovered that NPLs had a negative and significant influence on price–earnings (P/E) and price-to-book value (P/B) ratios. Furthermore, the bank’s age was found to have a positive and significant relationship with the P/E and P/B ratio. The moderating relationship between NPLs and bank age was found to have a negative and significant influence on price–earnings (P/E) and price-to-book value (P/B) ratios. The findings underscore the importance of asset quality and institutional reputation in influencing market perceptions. Bank managers should focus on managing non-performing loans effectively and leveraging institutional credibility to sustain investor confidence, particularly during financial distress. Full article

(This article belongs to the Special Issue Financial Markets and Institutions and Financial Crises)

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16 pages, 357 KiB

Open AccessArticle

Socially Responsible Investing: Is Social Media an Influencer?

by Mindy Joseph, Congrong Ouyang and Joanne DeVille

J. Risk Financial Manag. 2025, 18(7), 382; https://doi.org/10.3390/jrfm18070382 - 9 Jul 2025

As digital connectivity transforms financial decision-making, this study offers one of the first empirical investigations into the relationship between social media use and socially responsible investing (SRI). Using data from the 2021 National Financial Capability Study, multinomial regression analysis was used to explore [...] Read more.

As digital connectivity transforms financial decision-making, this study offers one of the first empirical investigations into the relationship between social media use and socially responsible investing (SRI). Using data from the 2021 National Financial Capability Study, multinomial regression analysis was used to explore whether people who rely on social media for investment decisions were more likely to invest in ways that reflect their values. The results show that investors who use social media for investment information are more likely to value being socially responsible as an important reason for investing. Younger, less experienced, and more risk-tolerant investors were especially likely to follow SRI strategies, and certain platforms like Twitter were more associated with SRI interest than others. These findings suggest that social media is not just a platform for sharing information; it may also shape how people think about investing and the role their money can play in making a societal difference. As online platforms continue to influence financial behavior, understanding their impact on values-based investing becomes increasingly important. This research contributes novel insights to the emerging intersection of social media, behavioral finance, and values-driven investing. Full article

(This article belongs to the Section Financial Markets)

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17 pages, 445 KiB

Open AccessArticle

From Boom to Bust: Unravelling the Cyclical Nature of Fiji’s Money Demand

by Nikeel Nishkar Kumar, Kulsoom Bibi and Rajesh Mohnot

J. Risk Financial Manag. 2025, 18(7), 381; https://doi.org/10.3390/jrfm18070381 - 9 Jul 2025

This study investigates cyclical asymmetries in money demand models considering the moderating effect of financial development. Prior research has overlooked this issue in the money demand literature within the Fijian context, where research is outdated. Using annual data from 1983 to 2023, we [...] Read more.

This study investigates cyclical asymmetries in money demand models considering the moderating effect of financial development. Prior research has overlooked this issue in the money demand literature within the Fijian context, where research is outdated. Using annual data from 1983 to 2023, we find that income elasticity is about positive unity, irrespective of recessions or expansions. In expansions, an increase in interest rates reduces money demand. An increase in interest rates reduces money demand nine times more strongly in recessions. These effects are accentuated with financial development. Declining interest rates do not impact money demand. The findings suggest that stable money demand could be achievable, but only once the impact of structural breaks is accounted for. Under ideal conditions—without such breaks—money demand exhibits stability, and its connection to income and interest rates appears predictable. However, in reality, structural disruptions complicate this relationship, making money demand less consistent with its key drivers and undermining the reliability of money supply as a monetary policy instrument. The findings align with the pulling on a string hypothesis that monetary contractions control inflation, but expansions may not impact output. Full article

(This article belongs to the Special Issue Advances in Macroeconomics and Financial Markets)

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23 pages, 1305 KiB

Open AccessSystematic Review

Biological Assets in Agricultural Accounting: A Systematic Review of the Application of IAS 41

by Priscila Campos-Llerena, Mauricio Arias-Pérez, Cecilia Toscano-Morales and Carlos Barreno-Córdova

J. Risk Financial Manag. 2025, 18(7), 380; https://doi.org/10.3390/jrfm18070380 - 9 Jul 2025

The valuation of biological assets represents a crucial component for the generation of accounting information, especially in the context of the agricultural sector, where assets subject to continuous transformation processes predominate. This study aims to analyze, through a systematic review of the literature, [...] Read more.

The valuation of biological assets represents a crucial component for the generation of accounting information, especially in the context of the agricultural sector, where assets subject to continuous transformation processes predominate. This study aims to analyze, through a systematic review of the literature, how the measurement methods established by International Accounting Standard 41 (IAS 41) affect the quality, accuracy, and usefulness of accounting reports. The results show that the correct valuation of biological assets significantly improves strategic and financial decision-making by providing more reliable and representative data on the economic reality of the sector. Finally, the study highlights the main practical challenges in the application of IAS 41, including fair value volatility, the subjectivity of estimates, the limited availability of reliable data, and the need for more flexible accounting frameworks that consider the cultural, climatic, and productive realities of each environment. Based on these findings, the importance of strengthening transparency and accounting disclosure and adapting measurement methods to the particularities of the agricultural sector in order to improve the quality of information and the confidence of external users is highlighted. Full article

(This article belongs to the Special Issue Financial and Sustainability Reporting in a Digital Era, 2nd Edition)

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23 pages, 395 KiB

Open AccessArticle

What Is Green Fintech?

by Daniel Broby and Zhenjia Yang

J. Risk Financial Manag. 2025, 18(7), 379; https://doi.org/10.3390/jrfm18070379 - 8 Jul 2025

This paper addresses the definitional ambiguity surrounding the term “green fintech” and its distinction from related concepts such as green finance and sustainable finance. We argue that the lack of clarity impedes accountability and facilitates greenwashing. To resolve this, we develop a conceptual [...] Read more.

This paper addresses the definitional ambiguity surrounding the term “green fintech” and its distinction from related concepts such as green finance and sustainable finance. We argue that the lack of clarity impedes accountability and facilitates greenwashing. To resolve this, we develop a conceptual framework grounded in a six-step “litmus test” that specifies the necessary conditions for an initiative to qualify as green fintech. These include demonstrable environmental objectives, the application of innovative financial technologies, and regulatory alignment. The test functions as a diagnostic tool, enhancing verifiability and reducing the risk of misrepresentation. We illustrate its practical use and integrate the Dynamic Integrated Model of Climate and the Economy (DICE) to support the analysis. Green fintech is defined as the implementation of green climate objectives through the medium of financial technology. This contribution provides both definitional precision and a means to assess the credibility of green fintech initiatives, offering clarity in an increasingly complex and contested area of sustainable finance. Full article

(This article belongs to the Special Issue Financial Technology (Fintech) and Sustainable Financing, 3rd Edition)

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27 pages, 363 KiB

Open AccessArticle

CEO Dynamics and Real Earnings Management: A Gender Diversity Perspective from Sub-Saharan Africa

by Onyinyechi Precious Edeh, Ovbe Simon Akpadaka, Musa Adeiza Farouk and Musa Inuwa Fodio

J. Risk Financial Manag. 2025, 18(7), 378; https://doi.org/10.3390/jrfm18070378 - 8 Jul 2025

Sub-Saharan Africa’s (SSA) corporate environment, like many emerging markets, is marked by institutional voids, weak oversight structures, and patriarchal leadership norms, which heighten the risk of real earnings management (REM). This study examines how CEO characteristics and audit committee gender diversity influence REM [...] Read more.

Sub-Saharan Africa’s (SSA) corporate environment, like many emerging markets, is marked by institutional voids, weak oversight structures, and patriarchal leadership norms, which heighten the risk of real earnings management (REM). This study examines how CEO characteristics and audit committee gender diversity influence REM among listed manufacturing firms in 12 SSA countries from 2012 to 2023. Anchored in agency theory and Upper Echelon Theory, this study draws on 1189 firm-year observations and employs Pooled OLS, Random Effects, Fixed Effects, Feasible Generalised Least Squares (FGLS), and System GMM estimators. Findings show that female CEOs are consistently associated with lower REM, underscoring the ethical conservatism linked to gender-inclusive leadership. CEO ownership shows a positive and significant association with REM in System GMM, though findings vary across models, indicating potential institutional effects. The firm size is negatively and significantly related to REM in Pooled, RE, and FGLS models, but becomes nonsignificant in FE and System GMM, suggesting the role of external scrutiny may be sensitive to model dynamics. Leverage exhibits a positive and significant relationship with REM in most models, but turns negative and nonsignificant under System GMM, pointing to endogeneity concerns. Interaction effects and country-specific regressions affirm that governance impacts differ across contexts. Policy reforms should prioritise gender-diverse leadership and tailored oversight mechanisms. Full article

(This article belongs to the Section Business and Entrepreneurship)

25 pages, 548 KiB

Open AccessArticle

Does Sustainability Pay Off? Examining Governance, Performance, and Debt Costs in Southeast Asian Companies (A Survey of Public Companies in Indonesia, Malaysia, Singapore, and Thailand for the 2021–2023 Period)

by Fransisca Fransisca, Arie Pratama and Kamaruzzaman Muhammad

J. Risk Financial Manag. 2025, 18(7), 377; https://doi.org/10.3390/jrfm18070377 - 7 Jul 2025

Sustainability performance is an important criterion for investors and lenders when making financing decisions. This study aims to analyze whether sustainability governance influences sustainability performance and the extent to which sustainability performance affects a company’s cost of debt. This study analyzed 209 publicly [...] Read more.

Sustainability performance is an important criterion for investors and lenders when making financing decisions. This study aims to analyze whether sustainability governance influences sustainability performance and the extent to which sustainability performance affects a company’s cost of debt. This study analyzed 209 publicly listed companies in Indonesia, Malaysia, Singapore, and Thailand. Sustainability governance was measured using two proxies from the Refinitiv Eikon database: (1) the existence of a sustainability committee and (2) the existence of sustainability assurance. Sustainability performance and the cost of debt were assessed using scores obtained from the same database. Quantitative analysis was performed using descriptive statistics, ANOVA, and structural equation modeling (SEM) with path analysis. The results showed that sustainability governance has a strong positive impact on sustainability performance. However, the results also show that higher sustainability performance leads to a higher cost of debt. This finding suggests that companies that integrate sustainability into their core business strategies face challenges in obtaining funding to support sustainability initiatives. This research implies that a well-developed sustainable ecosystem needs to be established before companies can realize a lower cost of debt. Full article

(This article belongs to the Section Sustainability and Finance)

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16 pages, 692 KiB

Open AccessArticle

Exchange Rate Volatility and Its Impact on International Trade: Evidence from Zimbabwe

by Iveny Makore and Chisinga Ngonidzashe Chikutuma

J. Risk Financial Manag. 2025, 18(7), 376; https://doi.org/10.3390/jrfm18070376 - 7 Jul 2025

Zimbabwe’s economy has experienced extreme exchange rate fluctuations over the past decades, driven by persistent macroeconomic instability and episodes of hyperinflation. The instability in exchange rates can significantly impact trade balances, inflation rates, and overall economic resilience. Understanding the impact of exchange rate [...] Read more.

Zimbabwe’s economy has experienced extreme exchange rate fluctuations over the past decades, driven by persistent macroeconomic instability and episodes of hyperinflation. The instability in exchange rates can significantly impact trade balances, inflation rates, and overall economic resilience. Understanding the impact of exchange rate volatility (ERV) on international trade is crucial in such a context. This study investigates the impact of exchange rate volatility (ERV) on international trade in Zimbabwe, addressing a literature gap related to its unique economic challenges and hyperinflation. Using the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model on data from 1990 to 2023, the study finds a negative relationship between ERV and international trade. The analysis suggests that inflation reduces imports, but foreign direct investment (FDI) and balance of payments (BOP) increase export uncertainties. This study recommends optimal fiscal and monetary management to mitigate ERV and enhance trade stability, offering insights for policymakers to strengthen Zimbabwe’s trade resilience amid exchange rate fluctuations. Full article

(This article belongs to the Section Financial Markets)

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71 pages, 8428 KiB

Open AccessArticle

Bridging Sustainability and Inclusion: Financial Access in the Environmental, Social, and Governance Landscape

by Carlo Drago, Alberto Costantiello, Massimo Arnone and Angelo Leogrande

J. Risk Financial Manag. 2025, 18(7), 375; https://doi.org/10.3390/jrfm18070375 - 6 Jul 2025

In this work, we examine the correlation between financial inclusion and the Environmental, Social, and Governance (ESG) factors of sustainable development with the assistance of an exhaustive panel dataset of 103 emerging and developing economies spanning 2011 to 2022. The “Account Age” variable, [...] Read more.

In this work, we examine the correlation between financial inclusion and the Environmental, Social, and Governance (ESG) factors of sustainable development with the assistance of an exhaustive panel dataset of 103 emerging and developing economies spanning 2011 to 2022. The “Account Age” variable, standing for financial inclusion, is the share of adults owning accounts with formal financial institutions or with the providers of mobile money services, inclusive of both conventional and digital entry points. Methodologically, the article follows an econometric approach with panel data regressions, supplemented by Two-Stage Least Squares (2SLS) with instrumental variables in order to control endogeneity biases. ESG-specific instruments like climate resilience indicators and digital penetration measures are utilized for the purpose of robustness. As a companion approach, the paper follows machine learning techniques, applying a set of algorithms either for regression or for clustering for the purpose of detecting non-linearities and discerning ESG-inclusion typologies for the sample of countries. Results reflect that financial inclusion is, in the Environmental pillar, significantly associated with contemporary sustainability activity such as consumption of green energy, extent of protected area, and value added by agriculture, while reliance on traditional agriculture, measured by land use and value added by agriculture, decreases inclusion. For the Social pillar, expenditure on education, internet, sanitation, and gender equity are prominent inclusion facilitators, while engagement with the informal labor market exhibits a suppressing function. For the Governance pillar, anti-corruption activity and patent filing activity are inclusive, while diminishing regulatory quality, possibly by way of digital governance gaps, has a negative correlation. Policy implications are substantial: the research suggests that development dividends from a multi-dimensional approach can be had through enhancing financial inclusion. Policies that intersect financial access with upgrading the environment, social expenditure, and institutional reconstitution can simultaneously support sustainability targets. These are the most applicable lessons for the policy-makers and development professionals concerned with the attainment of the SDGs, specifically over the regions of the Global South, where the trinity of climate resilience, social fairness, and institutional renovation most significantly manifests. Full article

(This article belongs to the Special Issue Financial Inclusion Strategies: Emerging Trends and Global Perspectives)

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18 pages, 715 KiB

Open AccessArticle

Bridging the Distance: Spatial and Social Factors Influencing Audit Quality and Auditor Independence in Small and Medium-Sized Enterprises

by Jomjai Sampet, Naruanard Sarapaivanich and Jiradacha Wanchuplow

J. Risk Financial Manag. 2025, 18(7), 374; https://doi.org/10.3390/jrfm18070374 - 6 Jul 2025

Audit quality is crucial, particularly for small and medium-sized enterprises (SMEs), due to their significant economic role. This study examined how spatial distance (physical separation) and social distance (perceived dissimilarity) between auditors and SME clients influence audit quality, focusing on technical quality (the [...] Read more.

Audit quality is crucial, particularly for small and medium-sized enterprises (SMEs), due to their significant economic role. This study examined how spatial distance (physical separation) and social distance (perceived dissimilarity) between auditors and SME clients influence audit quality, focusing on technical quality (the tangible outputs of auditing) and process quality (the manner of service delivery). Using data from 449 SME executives across Thailand, the study investigated the mediating role of auditor independence within these relationships. The results from structural equation modeling revealed that spatial distance has no direct impact on audit quality but a negative effect on perceived auditor independence, which, in turn, diminishes audit quality indirectly. Conversely, social distance negatively impacts both technical and process quality directly and indirectly through auditor independence. The findings suggest that despite technological advancements facilitating remote auditing, maintaining some physical interaction remains vital for preserving client trust. Additionally, aligning auditor–client social similarities significantly enhances audit quality perceptions. This study provides practical implications for audit firms in managing client interactions effectively, particularly within SMEs. Full article

(This article belongs to the Special Issue Entrepreneurship in Emerging Economies)

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24 pages, 524 KiB

Open AccessArticle

Margin Trading and Cryptocurrency Investment Among U.S. Investors: Evidence from the National Financial Capability Study

by Ferdous Ahmmed, Boakye Yam Boadi and Michael Guillemette

J. Risk Financial Manag. 2025, 18(7), 373; https://doi.org/10.3390/jrfm18070373 - 5 Jul 2025

This study examined the relationship between margin trading and cryptocurrency investment using data from the 2018 and 2021 waves of the National Financial Capability Study (NFCS) Investor Survey. Guided by behavioral finance theory, which suggests that cognitive biases may influence risk-taking, the study [...] Read more.

This study examined the relationship between margin trading and cryptocurrency investment using data from the 2018 and 2021 waves of the National Financial Capability Study (NFCS) Investor Survey. Guided by behavioral finance theory, which suggests that cognitive biases may influence risk-taking, the study explored whether margin loan use and margin calls are associated with higher cryptocurrency participation. Margin loans are inherently risky, as they must be repaid regardless of investment outcomes, and margin calls are triggered when an investor’s equity falls below a required threshold. The results showed a positive and statistically significant association between margin activity and cryptocurrency investment. Specifically, individuals with a margin loan were 17 percentage points more likely to invest in cryptocurrency, while those who have experienced a margin call were 23 percentage points more likely. Given the extreme volatility of cryptocurrencies, these results highlight the increased risks investors face when using leverage in speculative markets. The analysis is based on cross-sectional data from U.S. investors; therefore, the findings should be interpreted as correlational rather than causal. Full article

(This article belongs to the Special Issue The Future of Money: Central Bank Digital Currencies, Cryptocurrencies and Stablecoins)

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22 pages, 541 KiB

Open AccessArticle

Innovation over ESG Performance? The Trade-Offs of STEM Leadership in Top Sustainable Firms

by Iman Harymawan, Doddy Setiawan, Desi Adhariani and Atikah Azmi Ridha Paramayuda

J. Risk Financial Manag. 2025, 18(7), 372; https://doi.org/10.3390/jrfm18070372 - 5 Jul 2025

Considered as innovation-oriented, this research was conducted to examine whether STEM-educated CEOs drive better ESG performance. Using OLS regression, this research was conducted using listed companies assessed for their ESG performance on Sustainalytics in 2022 and identified as “top sustainable companies”, encompassing 1039 [...] Read more.

Considered as innovation-oriented, this research was conducted to examine whether STEM-educated CEOs drive better ESG performance. Using OLS regression, this research was conducted using listed companies assessed for their ESG performance on Sustainalytics in 2022 and identified as “top sustainable companies”, encompassing 1039 observations. The findings of this research reveal that STEM-educated CEOs are negatively associated with ESG performance in the top sustainable companies. Robustness analysis was also conducted to prevent endogeneity issues. This study introduces the novel idea of strategic trade-offs in ESG leadership. While STEM leaders drive innovation, their focus might lead to underinvestment in other crucial ESG aspects within already-sustainable firms. In addition, this research offers a contribution to governance and ESG research by bringing new insight on CEO selection for top ESG companies to better consider a balanced skillset beyond technological solutions. Full article

(This article belongs to the Section Sustainability and Finance)

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14 pages, 244 KiB

Open AccessArticle

How Capital Leases Affect Firm Performance: An Analysis in the Shipping Industry

by Ioannis C. Negkakis

J. Risk Financial Manag. 2025, 18(7), 371; https://doi.org/10.3390/jrfm18070371 - 3 Jul 2025

This study examines the effects of capital lease arrangements on the operating performance of shipping firms as proxied by Return on Assets (ROA). The maritime industry is highly capital-intensive, often requiring substantial investments in fleet acquisition and maintenance, making ROA particularly relevant as [...] Read more.

This study examines the effects of capital lease arrangements on the operating performance of shipping firms as proxied by Return on Assets (ROA). The maritime industry is highly capital-intensive, often requiring substantial investments in fleet acquisition and maintenance, making ROA particularly relevant as it captures the effectiveness of firms in utilizing their leased and owned assets to generate operating income. As such, many firms rely on lease arrangements to access necessary resources while preserving liquidity and financial flexibility. Using an international sample of 209 shipping firms, we estimate fixed effects regressions to assess the relationship between lease intensity and performance of the shipping firms. The findings reveal that capital lease intensity is positively associated with operating performance, indicating that leasing can be a value-enhancing financing strategy in this sector. However, the performance benefits of capital leases diminish under IFRS 16 reporting, particularly for firms with higher leverage. These findings offer important implications for investors, regulators, and managers evaluating capital structure decisions and financial reporting strategies in capital-intensive industries post-IFRS 16 implementation. Full article

(This article belongs to the Special Issue Bridging Financial Integrity and Sustainability)

43 pages, 7399 KiB

Open AccessArticle

Analysis of the Effectiveness of Classical Models in Forecasting Volatility and Market Dynamics: Insights from the MASI and MASI ESG Indices in Morocco

by Oumaima Hamou, Mohamed Oudgou and Abdeslam Boudhar

J. Risk Financial Manag. 2025, 18(7), 370; https://doi.org/10.3390/jrfm18070370 - 2 Jul 2025

This research evaluates the effectiveness of traditional models in predicting movements in the Moroccan financial market, with a focus on the MASI and MASI ESG indices. As environmental, social, and governance (ESG) criteria gain prominence in financial analysis, this study examines the strengths [...] Read more.

This research evaluates the effectiveness of traditional models in predicting movements in the Moroccan financial market, with a focus on the MASI and MASI ESG indices. As environmental, social, and governance (ESG) criteria gain prominence in financial analysis, this study examines the strengths and limitations of conventional predictive models. The findings reveal a significant correlation between the two indices while underscoring the challenges traditional models face in effectively integrating extra-financial dimensions, particularly environmental and social factors. These limitations hinder their ability to fully capture the complexities of the Moroccan financial market, where ESG considerations are increasingly shaping economic trends. Given these constraints, the study emphasizes the need for more advanced forecasting tools, particularly models that comprehensively incorporate ESG factors. Such advancements would enhance the understanding of ongoing economic transformations and address emerging challenges. By refining these tools, predictive models could become more relevant and better equipped to meet the specific demands of Morocco’s evolving financial landscape. Full article

(This article belongs to the Special Issue Machine Learning, Economic Forecasting, and Financial Markets)

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42 pages, 4966 KiB

Open AccessArticle

From Optimism to Recalibration: The Temporal Dynamics of Market Reactions to Women’s Board Appointments in Saudi Arabia

by Ezer Ayadi, Noura Ben Mbarek and Ines Chaabouni

J. Risk Financial Manag. 2025, 18(7), 369; https://doi.org/10.3390/jrfm18070369 - 2 Jul 2025

This study examines stock market reactions to female board appointments among 34 publicly listed companies in Saudi Arabia between 2021 and 2024. We employ a multi-method approach covering 36 announcements. Our primary methodology is an event study, which we complement with two distinct [...] Read more.

This study examines stock market reactions to female board appointments among 34 publicly listed companies in Saudi Arabia between 2021 and 2024. We employ a multi-method approach covering 36 announcements. Our primary methodology is an event study, which we complement with two distinct robustness checks: the Local Projections (LP) method to capture the evolving nature of market responses and the Quantile-on-Quantile analysis to investigate how market conditions interact with the three phases surrounding the event—the anticipation period before the appointment, the appointment event itself, and the post-appointment adjustment period. This comprehensive methodological framework allows us to capture the immediate market response to appointment announcements and the longer-term implications for firm performance while accounting for various econometric challenges inherent in financial market data. Our findings reveal a negative market reaction that gradually intensifies, becoming marginally significant by the tenth trading day. This pattern suggests that investors in the Saudi market may initially view female board appointments with skepticism, potentially reflecting uncertainty about the impact of gender diversity in a traditionally male-dominated business environment. Furthermore, the evolution from 2021 to 2024 suggests a market that is progressively developing more sophisticated frameworks for evaluating female board appointments. Rather than exhibiting a monotonic trend toward either increasingly positive or negative reactions, the market appears to be engaging in a learning process characterized by periodic reassessments. Moreover, our results indicate that while the immediate event and anticipation phases yield mixed impacts across the return distribution, the adjustment period exhibits a robust and significantly negative interaction with market returns. These findings suggest that market overreactions, particularly during bullish periods, contribute to a pronounced correction effect following female board appointments. Full article

(This article belongs to the Section Business and Entrepreneurship)

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28 pages, 759 KiB

Open AccessArticle

Sustainable Investments in the Blue Economy: Leveraging Fintech and Adoption Theories

by Vikas Sharma, Ramona Rupeika-Apoga, Tejinder Singh and Munish Gupta

J. Risk Financial Manag. 2025, 18(7), 368; https://doi.org/10.3390/jrfm18070368 - 2 Jul 2025

This study investigates the attributes influencing the adoption of fintech services for sustainable investment within the blue economy. Specifically, it integrates the Diffusion of Innovations (DOI) theory and the Technology Acceptance Model (TAM) to examine how the perceived relative advantages, compatibility, complexity, trialability, [...] Read more.

This study investigates the attributes influencing the adoption of fintech services for sustainable investment within the blue economy. Specifically, it integrates the Diffusion of Innovations (DOI) theory and the Technology Acceptance Model (TAM) to examine how the perceived relative advantages, compatibility, complexity, trialability, and observability of fintech services influence their perceived ease of use and perceived usefulness, and it explores their impact on the intention to adopt fintech services. Finally, the study assesses how the intention to adopt fintech services affects sustainable investment decisions in the blue economy. Data were collected from 224 stakeholders in the blue economy sectors in India during the summer of 2024 and analyzed using structural equation modeling with partial least squares (SEM-PLS). The results reveal which attributes significantly influence perceived ease of use and perceived usefulness. Additionally, perceived ease of use and perceived usefulness significantly influence the intention to adopt fintech services. The intention to adopt fintech services positively impacts sustainable investment decisions in the blue economy. This study provides a comprehensive framework for advancing fintech services that support sustainable investment decisions, thereby contributing to the growth of the blue economy. Full article

(This article belongs to the Special Issue Financial Technology (Fintech) and Sustainable Financing, 3rd Edition)

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21 pages, 1175 KiB

Open AccessArticle

The Effects of ESG Scores and ESG Momentum on Stock Returns and Volatility: Evidence from U.S. Markets

by Luis Jacob Escobar-Saldívar, Dacio Villarreal-Samaniego and Roberto J. Santillán-Salgado

J. Risk Financial Manag. 2025, 18(7), 367; https://doi.org/10.3390/jrfm18070367 - 2 Jul 2025

The impact of Environmental, Social, and Governance (ESG) scores on financial performance remains a subject of debate, as the literature reports mixed evidence regarding their effect on stock returns. This research aims to examine the relationship between ESG ratings and the change in [...] Read more.

The impact of Environmental, Social, and Governance (ESG) scores on financial performance remains a subject of debate, as the literature reports mixed evidence regarding their effect on stock returns. This research aims to examine the relationship between ESG ratings and the change in ESG scores, or ESG Momentum, concerning both returns and risk of a large sample of stocks traded on U.S. exchanges. The study examined a sample of 3856 stocks traded on U.S. exchanges, considering 20 years of quarterly data from December 2002 to December 2022. We applied multi-factor models and tested them through pooled ordinary, fixed effects, and random effects panel regression methods. Our results show negative relationships between ESG scores and stock returns and between ESG Momentum and volatility. Contrarily, we find positive associations between ESG Momentum and returns and between ESG scores and volatility. Although high ESG scores are generally associated with lower long-term stock returns, an increase in a company’s ESG rating tends to translate into immediate positive returns and reduced risk. Accordingly, investors may benefit from strategies that focus on companies actively improving their ESG performance, while firms themselves stand to gain by signaling continuous advancement in ESG-related areas. Full article

(This article belongs to the Special Issue Emerging Trends and Innovations in Corporate Finance and Governance)

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