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Accrual-Based Earnings Management in Cross-Border Mergers and Acquisitions: The Role of Institutional Differences and Geographic Distance
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Navigating the Trade-Offs: The Impact of Aggressive Working Capital Policies on Stock Return Volatility
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A Supply and Demand Framework for Bitcoin Price Forecasting
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Risk-Adjusted Performance of Random Forest Models in High-Frequency Trading
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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 21 days after submission; acceptance to publication is undertaken in 3.8 days (median values for papers published in this journal in the second half of 2024).
- 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.
Latest Articles
Incorporating Media Coverage and the Impact of Geopolitical Events for Stock Market Predictions with Machine Learning
J. Risk Financial Manag. 2025, 18(6), 288; https://doi.org/10.3390/jrfm18060288 - 22 May 2025
Abstract
This paper explores the impact of the Israel–Palestine conflict on the stock performance of U.S. companies and their public positions on the conflict. In an era where corporate positions on geopolitical issues are increasingly scrutinized, understanding the market implications of such statements is
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This paper explores the impact of the Israel–Palestine conflict on the stock performance of U.S. companies and their public positions on the conflict. In an era where corporate positions on geopolitical issues are increasingly scrutinized, understanding the market implications of such statements is critical. This research aims to capture the complex, non-linear relationships between corporate actions, media coverage, and financial outcomes by integrating traditional statistical techniques with advanced machine learning models. To achieve this, we constructed a novel dataset combining public corporate announcements, media sentiment (including headline and article body tone), and philanthropic activities. Using both classification and regression models, we predicted whether companies had affiliations with Israel and then analyzed how these affiliations, combined with other features, affected their stock returns over a 30-day period. Among the models tested, ensemble learning methods such as stacking and boosting achieved the highest classification accuracy, while a Multi-Layer Perceptron (MLP) model proved most effective in forecasting abnormal stock returns. Our findings highlight the growing relevance of machine learning in financial forecasting, particularly in contexts shaped by geopolitical dynamics and public discourse. By demonstrating how sentiment and corporate stance influence investor behavior, this research offers valuable insights for investors, analysts, and corporate decision-makers navigating sensitive political landscapes.
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(This article belongs to the Special Issue Machine Learning Based Risk Management in Finance and Insurance)
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Open AccessArticle
The Impact of Board Characteristics on Tax Avoidance: Do Industry Regulations Matter?
by
Christos Pavlou, Antonios Persakis and George Kolias
J. Risk Financial Manag. 2025, 18(6), 287; https://doi.org/10.3390/jrfm18060287 - 22 May 2025
Abstract
This paper examines the effect of board characteristics on tax avoidance and the moderating role of industry regulation on this effect. Using a comprehensive panel of 84,153 firm-year observations from 39 countries during the period of 2000–2023, we illustrate that larger boards, higher
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This paper examines the effect of board characteristics on tax avoidance and the moderating role of industry regulation on this effect. Using a comprehensive panel of 84,153 firm-year observations from 39 countries during the period of 2000–2023, we illustrate that larger boards, higher female representation, significant foreign ownership, and the presence of independent directors are generally associated with higher effective tax rates, suggesting lower levels of tax avoidance. This study further demonstrates that the effects of board gender diversity and board independence are more pronounced in regulated industries, where stringent governance and ethical standards prevail, emphasizing the importance of regulatory oversight in mitigating aggressive tax planning. These findings are crucial for policymakers, regulators, and corporate governance practitioners aiming to align corporate practices with ethical standards and reduce the risks associated with tax avoidance.
Full article
(This article belongs to the Special Issue Tax Avoidance and Earnings Management)
Open AccessArticle
The Effects of Non-Tariff Measures on Agricultural Trade Efficiency of South Africa Within the SADC
by
Brian Tavonga Mazorodze
J. Risk Financial Manag. 2025, 18(6), 286; https://doi.org/10.3390/jrfm18060286 - 22 May 2025
Abstract
While tariff liberalization under regional trade agreements has progressed, non-tariff measures (NTMs) have emerged as a significant impediment to the realization of full trade potential, particularly in the agriculture sector where NTMs are especially prevalent and in the Southern African Development Community (SADC)
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While tariff liberalization under regional trade agreements has progressed, non-tariff measures (NTMs) have emerged as a significant impediment to the realization of full trade potential, particularly in the agriculture sector where NTMs are especially prevalent and in the Southern African Development Community (SADC) where intra-regional trade is low. Despite the extensive available literature on this subject, the impact of NTMs on trade efficiency in the SADC has hardly been explored. Against this background, this study estimates the impact of NTMs on the efficiency of South Africa’s bilateral agricultural trade with 11 SADC member states using data from 2011 to 2022 and a stochastic frontier gravity model. The average efficiency is found to be 45.6 percent, implying that more than half of South Africa’s agricultural trade potential remains unrealized in the region due to inefficiencies. NTMs are found to be a source of inefficiency, the effect of which is larger than that of tariffs by a factor of 6. This result emphasizes an urgent need for harmonizing NTMs across SADC member states to reduce compliance costs which are associated with trade inefficiency. The study contributes to the literature by treating NTMs as man-made trade resistances that affect trade efficiency rather than trade volumes.
Full article
(This article belongs to the Special Issue Business, Finance and Economic Development—On Globalisation, Entrepreneurship and Emerging Markets)
Open AccessEssay
Student and Practitioner Cheating: A Crisis for the Accounting Profession
by
Donald L. Ariail, Lawrence Murphy Smith and Amine Khayati
J. Risk Financial Manag. 2025, 18(5), 285; https://doi.org/10.3390/jrfm18050285 - 21 May 2025
Abstract
In this essay, we propose that the prevalence of cheating by accounting students and serial cheating by accounting practitioners at Big-4 accounting firms is related. Our model of this problem suggests that students who cheat in school become practitioners who cheat in practice,
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In this essay, we propose that the prevalence of cheating by accounting students and serial cheating by accounting practitioners at Big-4 accounting firms is related. Our model of this problem suggests that students who cheat in school become practitioners who cheat in practice, and practitioners, in turn, model dishonest behavior for students. We propose that this vicious cycle of dishonesty poses a threat to the public’s trust in the accounting profession, and this crisis calls for drastic measures, both in academia and in practice, akin to measures like the Sarbanes–Oxley Act of 2002. As an honorable profession, dishonesty cannot be tolerated. Brief overviews of the prevalence of cheating, both by students and by Big-4 accounting practitioners are presented. Suggestions are included for a three-prong approach by accounting stakeholders to reduce this egregious ethical problem—a problem that, we suggest, is causing a new crisis in confidence for the accounting profession.
Full article
(This article belongs to the Special Issue Accounting Ethics and Financial Management)
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Open AccessArticle
Bullwhip Effect in Supply Chains and Cost Rigidity
by
Hakjoon Song and Daqun Zhang
J. Risk Financial Manag. 2025, 18(5), 284; https://doi.org/10.3390/jrfm18050284 - 21 May 2025
Abstract
The bullwhip effect is the phenomenon of distorted information that causes the amplification of variability of demand in supply chains. We examine the relationship between the bullwhip effect and cost behavior using a large sample of U.S. public firms from 1980 to 2019.
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The bullwhip effect is the phenomenon of distorted information that causes the amplification of variability of demand in supply chains. We examine the relationship between the bullwhip effect and cost behavior using a large sample of U.S. public firms from 1980 to 2019. Our empirical results show that the costs of firms with a higher intensity of bullwhip effect are significantly more responsive to changes in sales, suggesting that firms facing higher amplification of demand will adopt a less rigid short-term cost structure with lower fixed and higher variable costs. Furthermore, the bullwhip effect is associated with a higher elasticity of number of employees, operating leases, and rental expenses with respect to sales. The findings of mediation analyses suggest that firms are likely to lease capacity resources to increase the flexibility and manage the operating risk associated with the bullwhip effect. The results are robust to alternative model specifications. This study contributes to both the cost accounting and supply chain management literature, and documents large sample evidence on whether and how the bullwhip effect affects a firm’s choice of cost structure.
Full article
(This article belongs to the Special Issue Innovations and Challenges in Management Accounting)
Open AccessArticle
Assessing the Relative Financial Literacy Levels of Micro and Small Entrepreneurs: Preliminary Evidence from 13 Countries
by
Nikolaos Daskalakis
J. Risk Financial Manag. 2025, 18(5), 283; https://doi.org/10.3390/jrfm18050283 - 20 May 2025
Abstract
This study analysed the financial literacy (FL) levels of micro and small entrepreneurs (MSMEs) across 13 countries using data from the 2021 OECD/INFE survey. Focusing on the three core aspects of financial literacy—knowledge, behaviour, and attitudes—our analysis reveals that FL levels tend to
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This study analysed the financial literacy (FL) levels of micro and small entrepreneurs (MSMEs) across 13 countries using data from the 2021 OECD/INFE survey. Focusing on the three core aspects of financial literacy—knowledge, behaviour, and attitudes—our analysis reveals that FL levels tend to vary by enterprise size, with small businesses generally scoring higher than micro-enterprises. Moreover, countries’ performances differ across the three FL aspects, and these differences appear to be component rather than country-specific. This study applied the standardised OECD/INFE methodology, enabling cross-country comparisons of MSME financial literacy. The results identify specific strengths and weaknesses across countries and FL components, providing valuable insights into policy design and educational interventions. For instance, while financial behaviour scores are relatively strong, financial attitude scores are consistently lower, indicating a gap that requires targeted attention.
Full article
(This article belongs to the Special Issue The Role of Financial Literacy in Modern Finance)
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Open AccessArticle
Empirical Asset Pricing Models for Green, Grey, and Red EU Securities: A Fama–French and Carhart Model Approach
by
Ferdinantos Kottas
J. Risk Financial Manag. 2025, 18(5), 282; https://doi.org/10.3390/jrfm18050282 - 19 May 2025
Abstract
This study examines the explainability, validity, and applicability of multi-factor models in explaining the returns of Green (eco-friendly), Grey (neutral), and Red (environmentally harmful) EU securities. We apply the Fama–French three-factor and five-factor models, along with the Carhart four-factor model, to analyze changes
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This study examines the explainability, validity, and applicability of multi-factor models in explaining the returns of Green (eco-friendly), Grey (neutral), and Red (environmentally harmful) EU securities. We apply the Fama–French three-factor and five-factor models, along with the Carhart four-factor model, to analyze changes in risk exposures and adjusted abnormal returns (alphas) before and after the 2009 global financial crisis (GFC). Green and Grey securities exhibit positive SMB loadings, while Grey’s HML shifts from negative to positive over time. Both Green and Red securities show positive SMB and HML factors but negative alphas in the second period, indicating systematic underperformance. Additionally, for Red assets, momentum (MOM), profitability (RMW), and investment (CMA) factors are positive and significant in the first period but become insignificant or negative later. These findings highlight structural shifts in factor exposures and contribute to the ongoing debate on the most suitable classical asset pricing framework for environmentally classified assets, offering insights into the effectiveness of traditional factor models in different classes of environmental assets in finance. Lastly, the three-factor model better captures the common variation in Green and Grey asset returns. Specifically, the 4-factor model and the HML Devil factor prove to be more effective in explaining returns for Red securities.
Full article
(This article belongs to the Special Issue Bridging Financial Integrity and Sustainability)
Open AccessArticle
A Hybrid Forecasting Model for Stock Price Prediction: The Case of Iranian Listed Companies
by
Fatemeh Keyvani, Farzaneh Nassirzadeh, Davood Askarany and Ehsan Khansalar
J. Risk Financial Manag. 2025, 18(5), 281; https://doi.org/10.3390/jrfm18050281 - 19 May 2025
Abstract
This paper introduces advanced computational methods for stock price prediction, integrating Fast Recurrent Neural Networks (FastRNN) with meta-heuristic algorithms such as the Horse Herd Optimization Algorithm (HOA) and the Spotted Hyena Optimizer (SHO). By challenging the Efficient Market Hypothesis (EMH) and Random Walk
[...] Read more.
This paper introduces advanced computational methods for stock price prediction, integrating Fast Recurrent Neural Networks (FastRNN) with meta-heuristic algorithms such as the Horse Herd Optimization Algorithm (HOA) and the Spotted Hyena Optimizer (SHO). By challenging the Efficient Market Hypothesis (EMH) and Random Walk Hypothesis, our research demonstrates the effectiveness of these hybrid models in semi-strong or weak-form efficient markets. The study leverages data from five listed Iranian companies (2011–2021) and 25 factors encompassing technical, fundamental, and economic considerations. Our findings highlight the superior accuracy of the FastRNN optimised by HOA, SHO, and a Generative Adversarial Network (GAN) in forecasting stock prices compared to conventional FastRNN models. This research contributes to the multidisciplinary field of computational economics, emphasising advanced computing capabilities to address complex economic problems through innovative econometrics, optimisation, and machine learning approaches.
Full article
(This article belongs to the Special Issue Innovations and Challenges in Management Accounting)
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Open AccessArticle
Market Competition, Downward-Sticky Pay, and Stock Returns: Lessons from South Korea
by
Jungho Cho, Daecheon Yang, Kyeongmin Baek and Yeju Bu
J. Risk Financial Manag. 2025, 18(5), 280; https://doi.org/10.3390/jrfm18050280 - 19 May 2025
Abstract
This study examines whether market competition reduces managerial slack under downward-sticky CEO pay schemes, thus mitigating the potentially negative link between downward-sticky pay and shareholder’s value. Using data on the Korean product market, which has been dominated by business conglomerates known as ‘chaebols’,
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This study examines whether market competition reduces managerial slack under downward-sticky CEO pay schemes, thus mitigating the potentially negative link between downward-sticky pay and shareholder’s value. Using data on the Korean product market, which has been dominated by business conglomerates known as ‘chaebols’, we first find that downward-sticky pay is prevalent in underperforming firms and affects shareholder value negatively. Then, we find that a higher level of market competition alleviates the value-deteriorating effect of downward-sticky pay. Overall, the findings from our study imply that market competition as an external mechanism of corporate governance threatens still highly paid CEOs with worsening performance and motivates them implicitly to work harder. Together with a need for shareholders’ influence on downward-sticky pay, this study sheds light on the importance of market competition regimes in developing countries where legal protection for shareholders and internal governance structures are weak.
Full article
(This article belongs to the Special Issue Financial Reporting Quality and Capital Markets Efficiency)
Open AccessArticle
Rethinking Tax Systems: How Heterogeneous Tax Mix Shapes Income Inequality in European OECD Economies
by
Marina Beljić and Olgica Glavaški
J. Risk Financial Manag. 2025, 18(5), 279; https://doi.org/10.3390/jrfm18050279 - 17 May 2025
Abstract
Divergences in tax policies are evident among European OECD economies, due to varying priorities of efficiency vs. equity, influenced by the forms of direct vs. indirect taxation. The special interest of this paper is to identify how different tax forms (direct—corporate and personal
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Divergences in tax policies are evident among European OECD economies, due to varying priorities of efficiency vs. equity, influenced by the forms of direct vs. indirect taxation. The special interest of this paper is to identify how different tax forms (direct—corporate and personal income taxes (CIT, PIT); and indirect—value added tax (VAT)) affect inequality in European OECD economies in the period 2003–2020. Using heterogeneous non-stationary panel models and the (Pooled) Mean Group (PMG/MG) methods of estimation, a long-run negative relationship between direct tax forms (CIT, PIT) and the Gini coefficient was discovered, meaning that utilizing progressive direct tax forms resulted in more equity. The error-correction terms are heterogeneous, showing that developed economies decrease income inequality by using direct taxes more efficiently than emerging European OECD economies. The short-run statistically significant relationships between VAT and the Gini coefficient are discovered, meaning that certain European OECD economies effectively use VAT revenue to achieve greater equity in society. This study demonstrates that the use of indirect tax forms may be beneficial in terms of collecting more tax revenues, and that using them for redistributive programs can reduce inequality while maintaining economic efficiency.
Full article
(This article belongs to the Special Issue Emerging Issues in Economics, Finance and Business—2nd Edition)
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Open AccessArticle
Corporate Social Responsibility as a Driver of Financial Performance: An Exploration of South African Companies
by
Phathutshedzo Lemana, Reon Matemane and Maatabudi Mokabane
J. Risk Financial Manag. 2025, 18(5), 278; https://doi.org/10.3390/jrfm18050278 - 17 May 2025
Abstract
This study investigates the relationship between corporate social responsibility performance and financial performance among firms listed on the Johannesburg Stock Exchange in South Africa. Utilising a multi-metric approach, the research incorporates corporate social responsibility scores; environmental, social, and governance ratings; and the social
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This study investigates the relationship between corporate social responsibility performance and financial performance among firms listed on the Johannesburg Stock Exchange in South Africa. Utilising a multi-metric approach, the research incorporates corporate social responsibility scores; environmental, social, and governance ratings; and the social pillar score to provide a comprehensive analysis. Data from 104 companies with 624 observations from 2017 to 2022 was analysed. This quantitative study employs a Generalised Least Squares estimation, and the findings reveal a significant positive correlation between corporate social responsibility performance and several key financial metrics, including return on assets, earnings per share, market value added, and Tobin’s Q ratio. The results suggest that companies prioritising corporate social responsibility initiatives are likely to experience improved financial outcomes. Furthermore, the study examines the influence of board characteristics on financial performance, identifying a positive effect of gender diversity and negative impacts from board independence and meeting frequency. Overall, this research contributes to the literature on corporate social responsibility and financial performance by highlighting the importance of corporate social responsibility in driving sustainable business practices and enhancing firm performance within the context of an emerging economy. The findings underscore the need for firms to integrate corporate social responsibility into their strategies to promote long-term success while addressing societal challenges.
Full article
(This article belongs to the Special Issue Financial Management)
Open AccessArticle
An Innovative Digital Platform for Socioeconomic Forecasting Climate Risks and Financial Management
by
Bruno S. Sergi, Elena G. Popkova, Elena Petrenko, Shakhlo T. Ergasheva, Mkhitar Aslanyan and Vahe Mikayelyan
J. Risk Financial Manag. 2025, 18(5), 277; https://doi.org/10.3390/jrfm18050277 - 17 May 2025
Abstract
This article presents an innovative methodology for enhancing statistical databases as reliable sources of information. The study leverages data from “Big Data of the Modern Global Economy: A Digital Platform for Data Mining—2020”, which serves as a digital tool designed to predict economic
[...] Read more.
This article presents an innovative methodology for enhancing statistical databases as reliable sources of information. The study leverages data from “Big Data of the Modern Global Economy: A Digital Platform for Data Mining—2020”, which serves as a digital tool designed to predict economic development at both global and national levels, particularly in the context of the COVID-19 crisis and its aftermath. Utilizing a dataset focused on the G7 and BRICS nations as a case study, we assemble forecasts for several key indicators: the Digital Competitiveness Index, Global Innovation Index, Human Development Index, Gross Domestic Product (GDP), Economic Growth Rate, GDP per Capita, Quality of Life Index, Happiness Index, and Sustainable Development Index for 2021. Additionally, we conducted a plan-fact analysis. The accuracy of the post-pandemic economic recovery forecast is validated through comparison with actual data. Furthermore, this research provides statistical analyses and forecasts to minimize uncertainty during crises, considering the interconnected nature of climate change and financial factors inherent in these crises.
Full article
(This article belongs to the Special Issue Banking Practices, Climate Risk and Financial Stability)
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Open AccessArticle
Governance, Ownership Structure, and Financial Leverage: The Role of Board Gender Diversity in UK Firms
by
Dramani Angsoyiri, Fadi Alkaraan and Judith John
J. Risk Financial Manag. 2025, 18(5), 276; https://doi.org/10.3390/jrfm18050276 - 17 May 2025
Abstract
This paper aims to investigate the relationship between governance structure, ownership structure, and financial leverage of corporations in the UK, with a special emphasis on the boardroom gender diversity. The study sample includes 484 UK firms from the FTSE All-Share Index for the
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This paper aims to investigate the relationship between governance structure, ownership structure, and financial leverage of corporations in the UK, with a special emphasis on the boardroom gender diversity. The study sample includes 484 UK firms from the FTSE All-Share Index for the period (2015–2023), with 4356 firm-year observations. The results show that CEO duality, gender diversity, managerial ownership, institutional ownership, and government shareholding are all positively associated with financial leverage, thus confirming the importance of these governance and ownership characteristics in determining capital structure policies. On the other hand, board size and the proportion of non-executive directors are not found to have a significant impact on financial leverage, which points to some room for improvement in UK board practices. In this regard, the study contributes to the governance-sustainability-finance nexus discussion by focusing on these dimensions in the UK corporate sector. As such, the findings of this study are important in providing policy recommendations for policymakers and corporate leaders and contribute to the ongoing wave of global corporate governance reforms and practical insights into enhancing governance frameworks at the firm level.
Full article
(This article belongs to the Section Economics and Finance)
Open AccessArticle
A Panel Data Analysis of Determinants of Financial Inclusion in Sub-Saharan Africa (SSA) Countries from 1999 to 2024
by
Oladotun Larry Anifowose and Bibi Zaheenah Chummun
J. Risk Financial Manag. 2025, 18(5), 275; https://doi.org/10.3390/jrfm18050275 - 16 May 2025
Abstract
Globally, financial inclusion is regarded as being crucial for balancing an economy’s financial system. However, despite the significance of financial inclusion, it still needs to be clarified to identify what factors are responsible for the diverse trend of financial inclusion in the forty-five
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Globally, financial inclusion is regarded as being crucial for balancing an economy’s financial system. However, despite the significance of financial inclusion, it still needs to be clarified to identify what factors are responsible for the diverse trend of financial inclusion in the forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024. The main rationale of the study empirically investigated these determinants of financial inclusion in forty-five Sub-Saharan Africa (SSA) countries from 1999 to 2024, which covers three distinct periods: which is the pre-COVID, 2020–2022 is the COVID period, and the post-COVID period from 2023 onward, but examined as a whole from 1999 to 2024 for easy policy formulation for SSA countries. The study was anchored on two main research objectives: firstly, to examine the factors influencing financial inclusion in Sub-Saharan Africa (SSA) in these three distinct periods, and lastly, to present the policy implications of the result of these factors in enhancing financial inclusion in the post-COVID era in SSA. The study used the Panel Least Squares (PLS) technique in the data analysis. The result revealed that economic growth (GRO), Islamic banking (ISMAIC), money supply (MSS), internet users (USERS), and credit availability (CREDIT) positively and significantly enhance financial inclusion with coefficients of 0.001298, 4.926809, 1.08 × 10−6, 0.459388, and 0.657431, respectively, with significant p-values of 0.0008, 0.0023, 0.0000, 0.0000, and 0.000, respectively. On the flip side, internet servers (SERVER) have a negative coefficient value of 4.63 × 10−6 with a p-value of 0.000. Though inflation (INFL) and interest rate (INT.) have negative coefficient values of −0.02853 and −0.08317, they have insignificant p-value impacts of 0.2841 and 0.2501, respectively. The result indicates that many of the variables have a significant impact on financial inclusion. This is shown from the probabilities of the t statistics of each of the independent variables in the estimated model, which are significant at the 5% level. The policy implications of these results include the following: firstly, SSA governments should promote economic growth through investment in productive sectors, infrastructure development, and job creation programs to indirectly improve financial inclusion. Secondly, SSA countries’ policymakers should maintain price stability through sound monetary and fiscal policies to ensure inflation does not hinder access to financial services. Thirdly, SSA countries’ governments and central banks should promote lower interest rates and enhance credit accessibility, especially for marginalized groups, through subsidized loans and targeted credit schemes. Fourthly, policymakers should support the expansion of Islamic finance by improving regulatory frameworks and increasing awareness about Sharia-compliant financial products.
Full article
(This article belongs to the Special Issue Financial Inclusion Strategies: Emerging Trends and Global Perspectives)
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Open AccessArticle
Rating Liberalization and Efficiency: Evidence from the Property-Liability Insurance Industry
by
Ming-Kuo Chen and Chi-Hung Chang
J. Risk Financial Manag. 2025, 18(5), 274; https://doi.org/10.3390/jrfm18050274 - 16 May 2025
Abstract
The property-liability insurance market in Taiwan has implemented three-stage deregulation on rate-making since 2002. This research investigates whether the rating liberalization brought about improvements in efficiency and productivity of the property-liability insurance market. Using data on property-liability insurers in Taiwan over 2001 to
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The property-liability insurance market in Taiwan has implemented three-stage deregulation on rate-making since 2002. This research investigates whether the rating liberalization brought about improvements in efficiency and productivity of the property-liability insurance market. Using data on property-liability insurers in Taiwan over 2001 to 2019 and employing data envelopment analysis, we show that technical, cost, and revenue efficiencies have improved after rating liberalization. Post-liberalization productivity has improved as well, and the decomposition of productivity change demonstrates that change in technology contributes most to productivity improvement at the inception of liberalization, and the contribution of efficiency improvement follows when rating controls are further released. Further analyses reveal that technical and revenue efficiency rose in the third stage of liberalization and cost efficiency improved in the second and third stages. Our findings suggest that the removal of price controls creates an operating environment with less restrictions and thus favors progress in efficiency of the property-liability insurance market.
Full article
(This article belongs to the Section Financial Markets)
Open AccessArticle
An Interdisciplinary Study: Deferred Tax Implications of Lay-By Agreements for Financial Planning and Decision Making
by
Ahmed Mohammadali Haji, Muneer Hassan, Michelle van Heerden and Milan van Wyk
J. Risk Financial Manag. 2025, 18(5), 273; https://doi.org/10.3390/jrfm18050273 - 16 May 2025
Abstract
Due to tough economic conditions, more retailers are relying on lay-by agreements to maintain revenue. Lay-by agreements are thus part of their business models and are included in their forecasting and budgeting strategies. As part of financial planning, decisions need to be made
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Due to tough economic conditions, more retailers are relying on lay-by agreements to maintain revenue. Lay-by agreements are thus part of their business models and are included in their forecasting and budgeting strategies. As part of financial planning, decisions need to be made based on financial information to achieve organisational goals. A recent South African income tax amendment regarding lay-by agreements resulted in three possible income tax interpretations. This study analysed and evaluated the implications of these amendments for South African deferred tax. The study utilised a doctrinal approach in an interpretive paradigm. The results show that the amendment in the South African Income Tax Act relating to lay-by agreements has an impact on deferred tax calculations, depending on the tax interpretation used. The resulting ambiguity and diversion in the practice of the deferred tax treatment may potentially lead to less useful financial information, contrary to the objectives of the International Accounting Standards Board for effective decision making. This study recommends that the National Treasury should clarify this ambiguity, through either legislative amendments or an interpretation note. This will create the necessary certainty for organisations to plan their finances.
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(This article belongs to the Special Issue Financial Management)
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Open AccessArticle
The Impact of Accounting Digital Transformation on Financial Transparency: Mediating Role of Good Governance
by
Abdalla Alassuli, Nawaf Samah Thuneibat, Ahmed Eltweri, Krayyem Al-Hajaya and Khaled Alghraibeh
J. Risk Financial Manag. 2025, 18(5), 272; https://doi.org/10.3390/jrfm18050272 - 16 May 2025
Abstract
Accounting digital transformation in today’s fast-digitizing banking environment is becoming an imperative force driving transparency and governance in the banking industry. This study explores the effect of accounting digital transformation on transparency in finance, with emphasis on the mediating effect of good governance
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Accounting digital transformation in today’s fast-digitizing banking environment is becoming an imperative force driving transparency and governance in the banking industry. This study explores the effect of accounting digital transformation on transparency in finance, with emphasis on the mediating effect of good governance in Jordan’s commercial banking. Based on survey data from 386 bank experts, the study utilizes Structural Equation Modelling (SEM) to analyze the relationships among organizational, technical, and human dimensions of digital transformation, governance, as well as financial transparency. The findings show that all three dimensions have positive impacts on transparency in finance, and good governance partially mediates these relationships. These insights provide policy makers and practising managers with actionable advice to enhance financial reporting through governance and digitization.
Full article
(This article belongs to the Special Issue The Future of Sustainable Finance: Digital and Circular Synergies)
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Open AccessArticle
Impact of Management Indicators on the Business Performance of Hotel SMEs in Mexico
by
Antonio Emmanuel Pérez Brito, Martha Isabel Bojórquez Zapata, Luís Lima Santos and Conceição Gomes
J. Risk Financial Manag. 2025, 18(5), 271; https://doi.org/10.3390/jrfm18050271 - 16 May 2025
Abstract
Empirical studies on management control and business performance are growing. However, a research gap exists regarding the tourism development/hotel small- and medium-sized enterprises (SMEs), particularly in terms of administrative management and organizational functions. Hence, drawing from the principles of management control, specifically about
[...] Read more.
Empirical studies on management control and business performance are growing. However, a research gap exists regarding the tourism development/hotel small- and medium-sized enterprises (SMEs), particularly in terms of administrative management and organizational functions. Hence, drawing from the principles of management control, specifically about the utilization of business performance evaluation techniques, this study aimed to construct a business performance index for hotel SMEs in the state of Yucatán, Mexico. To this end, the index evaluated multiple variables including investment, profitability, financing sources, operating metrics, and the utilization of financial information. To accomplish the goals, this study administered surveys to the proprietors/administrators of 139 hotel SMEs. It employed a quantitative approach and utilized the multiple linear regression model with the forward technique. Its findings demonstrate that the utilization of financial information and funding sources have the most substantial correlations with business performance. As theoretical and practical implications, a business performance index arose, replying to the needs presented by the Mexican Association of Hotels in Yucatán.
Full article
(This article belongs to the Special Issue Innovations and Challenges in Management Accounting)
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Open AccessSystematic Review
Impression Management Tactics in the Chairperson’s Statement: A Systematic Literature Review and Avenues for Future Research
by
Masibulele Phesa, Mabutho Sibanda, Frank Ranganai Matenda and Zamanguni Gumede
J. Risk Financial Manag. 2025, 18(5), 270; https://doi.org/10.3390/jrfm18050270 - 16 May 2025
Abstract
The chairperson’s statement (CS) has evolved into a key component of corporate reporting, offering an authoritative, high-level summary of a company’s activities, initiatives, operations, financial performance, and achievements over the preceding financial year, along with insights into future outlooks. Recognised for its informative
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The chairperson’s statement (CS) has evolved into a key component of corporate reporting, offering an authoritative, high-level summary of a company’s activities, initiatives, operations, financial performance, and achievements over the preceding financial year, along with insights into future outlooks. Recognised for its informative value, the CS is consistently ranked by stakeholders as the most read and most influential section of the integrated report. Despite its importance, the CS is also a platform where corporate management often engages in impression management (IM) to portray a biased and overly positive image of the company. This study conducted a systematic literature review to examine the IM tactics employed within the CS. Based on the findings, an integrative conceptual framework was developed. Identified IM tactics include readability, textual characteristics, the influence of culture, legal systems and capital markets, paratext and intertextuality, the tone of language, forward-looking statements, retrospective sense-making, ambiguous language, the use of photographs and graphs, impersonalisation and evaluative language, and self-serving attributions. The results highlight that the study of IM strategies in CSs represents a rich and relevant research domain that warrants deeper exploration. Given its qualitative complexity and underexplored dimensions, this area offers several promising avenues for future investigation.
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(This article belongs to the Special Issue Financial Management)
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Open AccessArticle
Optimal Portfolio Construction Using the Realized Volatility Concept: Empirical Evidence from the Stock Exchange of Thailand
by
Sanae Rujivan, Thapakon Khuatongkeaw and Athinan Sutchada
J. Risk Financial Manag. 2025, 18(5), 269; https://doi.org/10.3390/jrfm18050269 - 15 May 2025
Abstract
This paper addresses the problem of constructing optimal equity portfolios under volatile market conditions by minimizing realized volatility—an alternative risk quantifier that more accurately captures short-term market fluctuations than traditional variance-based approaches. This issue is particularly relevant for investors seeking robust risk management
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This paper addresses the problem of constructing optimal equity portfolios under volatile market conditions by minimizing realized volatility—an alternative risk quantifier that more accurately captures short-term market fluctuations than traditional variance-based approaches. This issue is particularly relevant for investors seeking robust risk management strategies in dynamic and uncertain environments. We propose a mathematical optimization framework that determines portfolio weights by minimizing realized volatility, subject to expected return constraints. The model is empirically validated using historical data from stocks listed in the Stock Exchange of Thailand 50 (SET50) index. Through a comparative analysis of realized volatility and variance-based optimization across multiple portfolio sizes and return levels, we find that portfolios constructed using realized volatility consistently achieve higher Sharpe ratios, indicating superior risk-adjusted performance. We further introduce an efficiency metric based on the Euclidean distance between optimal portfolio weight vectors to evaluate the stability of allocations under extended investment horizons. The findings underscore the practical advantages of realized volatility in portfolio construction, offering enhanced responsiveness to market dynamics and improved performance outcomes. The novelty of this study lies in integrating realized volatility into a constrained portfolio optimization model and empirically demonstrating its superiority, thereby extending traditional mean-variance methods in both scope and effectiveness.
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(This article belongs to the Section Mathematics and Finance)
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