Purpose This study aims to explore the relationship between social trust and financial reporting obfuscation, defined as a lack of annual report readability. We propose that social trust is an important informal institution that promotes ethical behavior and accountability, leading corporate managers to produce clearer, more accessible annual reports for stakeholders. Design/methodology/approach Using a sample of 44,799 firm-year observations from 1,076 publicly listed US firms, we analyze the impact of regional social trust on the readability of financial reports. We further investigate how this relationship varies across different organizational and managerial characteristics, including stakeholder orientation, geographical dispersion, monitoring environments, managerial capabilities and chief executive officer (CEO) experience. Findings Our results provide strong evidence that firms located in regions with higher social trust produce less obfuscated financial reports. This negative relationship is more pronounced in firms with higher stakeholder orientation, lower geographical dispersion, stronger monitoring environments, more capable managers and CEOs with broader work experience (generalist CEOs). Practical implications The findings suggest that social trust is a significant driver of financial report readability. This has important implications for external stakeholders, managers and policymakers in understanding the role of informal institutions in corporate reporting practices. Originality/value This study contributes to the accounting literature by identifying social trust as a key factor influencing the clarity of financial reports and by providing insights into the underlying mechanisms through which this relationship operates.

Purpose This study examines how Environmental, Social and Governance (ESG) scores affect both the matching process between borrowers and lenders and the terms of syndicated loans. Design/methodology/approach The analysis concentrates on a comprehensive sample of syndicated loans to US firms. We estimate a set of linear models relating the borrower's ESG ratings to the bank's ESG ratings and to the loan conditions. Findings We find that firms with higher ESG scores are more likely to secure loans from banks that also have strong ESG ratings, especially in politically liberal states. Such firms also benefit from more favorable loan terms, including lower interest rates and a reduced number covenants. Originality/value This study highlights the dual role of ESG in influencing both borrower–lender matching and loan contracting outcomes. It also demonstrates that local political ideology amplifies the alignment between borrowers and lenders in terms of ESG, as well as the pricing of ESG ratings in loan contracting.

Purpose This study investigates how national culture influences non-financial reporting (NFR) by reviewing existing studies on the topic and proposing a research agenda. The review addresses two research questions: (1) What are the main characteristics of studies examining the influence of national culture on NFR? (2) Which themes and cultural factors have received attention and can be systematised to guide future research and address regulatory and implementation challenges? Design/methodology/approach We conduct a systematic literature review (SLR) of 60 academic articles indexed in Scopus from 1999 to 2024 to identify conceptually relevant themes, from which we derive a conceptual framework and avenues for future research. Findings The review reveals a fragmented yet growing body of literature and organises its insights into a conceptual framework based on three key stages of NFR: adoption, content and assurance. Five themes and six subthemes emerge, highlighting the recurring influence of some cultural dimensions. The review also reveals notable research gaps, including an overreliance on Hofstede's cultural framework, a lack of methodological diversity, a limited focus on strategic and governance-related disclosures and language use, and the underexplored interplay between NFR, national culture and regulatory contexts. Future research is encouraged to examine how cultural traits interact with regulation in the adoption of NFR, influence reporting quality and narratives, and affect the credibility and effectiveness of assurance practices. Originality/value To the best of our knowledge, this is the first SLR to focus specifically on the role of national culture in NFR. The study advances prior work on cultural influences in accounting by narrowing the focus to the NFR domain. In addition, it enriches the literature on NFR determinants by isolating national culture as a key factor. In doing so, the study lays the groundwork for future research on how cultural traits may support or challenge the effectiveness of mandatory NFR frameworks across countries.

Purpose This study reviews the economic consequences of firms' Environmental, Social, and Governance (ESG) practices. Unlike previous reviews that treat ESG as a monolithic concept, this paper employs the European Sustainability Reporting Standards (ESRS) framework to systematically examine how different ESG topics generate distinct economic impacts. Design/methodology/approach A three-stage systematic review was conducted using Scopus database searches combined with manual screening of top accounting journals. The search strategy incorporated topic-specific terms for nine ESRS categories (five environmental and four social topics) combined with economic consequence indicators. Quality screening based on the ABDC journal list yielded a final sample of 90 papers from 25 accounting journals spanning 2005–2025. Findings The review reveals substantial disparities in research attention across ESG topics. Climate change, consumers, and the own workforce dominate the literature, with these three dimensions accounting for the vast majority of studies examined. Critically, biodiversity and circular economy have received no empirical examination of economic consequences in accounting literature, while water, affected communities, and workforce in the value chain remain severely under-researched. The geographic concentration in U.S. studies and methodological limitations constrain generalizability. The mechanisms translating ESG practices into economic value remain largely unexplored. Originality/value This is the first systematic review to disaggregate ESG economic consequences using the ESRS framework, revealing differential impacts across specific sustainability topics. The study identifies critical research gaps, particularly in neglected topics, and provides a roadmap for future research as mandatory ESG disclosure expands globally.

Purpose We examine whether firms concealing tax avoidance activities through lower effective tax rates (ETRs) are associated with the flexibility allowed on disclosing segments under the International Financial Reporting Standard (IFRS) 8, Operating Segments. Design/methodology/approach We adopt an archival research approach and conduct empirical analysis based on a hand-collected sample of firms listed on the Australian Securities Exchange over the 2016–2019 period. A unique disclosure index of 32 items is constructed, covering the core principles of IFRS 8 to measure the level and disclosure categories. Findings We find that lower ETRs are associated with lower combined segment disclosure level scores. Additional analyses indicate that firms with lower ETRs disclose less mandatory, voluntary, hard, soft, mandatory-hard, mandatory-soft, voluntary-hard and voluntary-soft segment information. Research limitations/implications The validity of our findings depends on ETRs being an appropriate proxy measure for tax avoidance. ETRs have limitations as a measure of tax avoidance even though they are widely accepted in the literature. Our results have implications for regulators by demonstrating that allowing discretion and judgment in interpreting accounting standards can have negative consequences in terms of allowing firms to obscure tax avoidance. Originality/value We show that complex accounting standards that allow higher levels of discretion and judgment are linked to attempts by firm managers to conceal tax avoidance through lower disclosure of segment-related information in the annual report.

Purpose This study aims to assess whether targeted Financial Technology (FinTech) policy interventions enhance sustainable finance outcomes in China, focusing on whether FinTech innovation can act as a driver of environmental sustainability. Design/methodology/approach Using the establishment of the Beijing FinTech and Professional Service Innovation Demonstration Zone in 2018 as a natural experiment, this research applies a difference-in-differences (DiD) framework to bank and firm-level panel data from 2011 to 2023. The study identifies the impact through the interaction term between the treated region and the post-policy period, allowing estimation of both direct and spillover effects on FinTech-related patent filings, green patent applications, and green loan issuance by nonfinancial firms. Findings Empirical results show that the policy significantly increased FinTech-related patenting by banks, which in turn enhanced their capacity to extend green lending. Positive spillovers are also observed among nonfinancial firms, reflected in higher green patent output. These findings confirm a strong link between digital financial innovation and sustainability outcomes. Practical implications The results highlight that targeted FinTech policies can simultaneously foster technological innovation and sustainable finance, offering a replicable model for other regions. Policymakers can leverage FinTech clusters, regulatory sandboxes and coordinated policy support to stimulate green finance and advance sustainable development goals. Originality/value This thesis contributes novel empirical evidence on the role of place-based FinTech policies in promoting sustainability. It extends existing literature by linking FinTech innovation directly to green lending and environmental patenting via the DiD interaction term, thereby demonstrating the effectiveness of financial innovation zones as policy instruments for sustainability transitions.

Purpose The objective of this study is to examine audit firms’ maturity in adopting emerging technologies across three dimensions: people, process and technology, and to identify the factors that shape this maturity. Design/methodology/approach Using a structured maturity assessment framework, the study adopted a quantitative approach, employing descriptive statistics, MANCOVA, MANOVA and univariate regressions on data from 166 experienced auditors. Findings Findings reveal that audit firms are currently at a moderate level of maturity. However, Big Four firms are transitioning from moderate to advanced stages, while non-Big Four firms are progressing from early to moderate stages. Organizational support and the use of emerging technologies for complex audit evidence collection are associated with higher maturity levels. Furthermore, frequent use of emerging technologies for audit evidence collection and auditor satisfaction are positively correlated with maturity. Research limitations/implications The study uses auditors’ perceptions of adoption, as captured through a survey, which may differ from actual adoption due to social desirability bias. Practical implications The moderate level of emerging technology adoption, with non-Big Four firms below this level and Big Four firms transitioning toward the advanced stage, offers a nuanced understanding of the persistent adoption gap. The findings also emphasize the importance of formal, firm-wide policies and guidelines tailored to appropriate technologies that enhance adoption maturity and auditor satisfaction. Furthermore, it is crucial for audit firms to integrate and frequently use emerging technologies when performing complex procedures, such as analytical procedures and inspections, to progress toward maturity. These findings underscore the need for proactive regulatory guidance to advance technology adoption in auditing. Originality/value This study is the first to explore the maturity level of emerging technology adoption in external audits using a structured assessment framework.

Purpose The International Integrated Reporting Council (IIRC) claims that the adoption of integrated reporting (IR) enhances the accountability and stewardship of six forms of capital. This study examines the relationship between Integrated Reporting Quality (IRQ) and the performance of these six capitals, as defined in the International <IR> Framework (IIRF) and investigates whether integrated thinking mediates this relationship. Design/methodology/approach Using a sample of 548 firm-year observations listed on the Johannesburg Stock Exchange (JSE), this study employs ordinary least squares (OLS) regression techniques to estimate the research models. To address potential endogeneity in the relationship between IRQ and the performance of six types of capital, several robustness techniques are also applied. Findings We find that IRQ is positively associated with the performance of financial, intellectual, natural, human and social and relationship capitals, but negatively associated with manufactured capital performance. These findings suggest that firms with higher IRQ exhibit greater accountability and stewardship across multiple forms of capital. Furthermore, our evidence suggests that integrated thinking acts as a key mechanism through which IRQ enhances the performance of financial, natural, human and social and relationship capitals. Originality/value Our findings support the “real effects” theory view of sustainability reporting, suggesting that higher quality reporting following the International <IR> Framework (IIRF) positively affects the performance of multiple capitals, with these effects mediated by integrated thinking. The results highlight the benefits of IR, offering evidence that may encourage national and supranational regulators, policymakers and firms to adopt sustainability reporting standards issued by the International Sustainability Standards Board (ISSB), which incorporates IR principles in its framework.

Purpose The authors investigate the elasticity between VIX exchange traded products (ETPs)–including ETNs (VXX, XIV and TVIX) and ETFs (VIXY, SVXY and UVXY)–and VIX Futures. Design/methodology/approach This study applies quantile regression to uncover nonlinear elasticity dynamics in the daily price interactions between ETPs and Futures. Findings Employing decile regressions on the S&P 500 VIX Short-Term Total Return Index (SPVXSTR), the authors find that elasticity of VIX Futures to ETP prices is lower at market close but higher intraday, potentially due to liquidity differences, with peaks at the distribution’s extremes at close. VXX exhibits significantly higher elasticity than VIXY, likely due to its dominant, unhedged note structure, while XIV and SVXY show similar elasticity, and TVIX’s elasticity is half that of UVXY, reflecting its reduced leverage. These findings suggest that intraday liquidity amplifies futures responsiveness, with implications for hedging strategies during volatile closes and portfolio construction favoring dominant instruments such as VXX. Originality/value The linear relations between VIX ETPs and VIX Futures are well documented in the literature using mean-regression approaches, here estimated elasticities are assumed constant across the distribution of VIX Futures and ETPs. This study extends the analysis by employing quantile regression to capture quantile-specific elasticities, allowing for a more nuanced examination of inverse and leveraged products, where elasticity dynamics remain largely unexplored.

Purpose The purpose of this article is to investigate the impact of time-inconsistent preferences on household consumption and portfolio decisions by using a model that is realistically and quantitatively calibrated. Design/methodology/approach We have numerically solved the consumption-saving and portfolio strategies for the naive, sophisticated and time-consistent households, using the data from the China Household Finance Survey (CHFS) to calibrate the parameters of non-traded labor income. Findings The simulated results indicate that time-inconsistent households exhibit higher levels of consumption and allocate a larger share of their portfolio to risky assets compared to time-consistent households. Among time-inconsistent households, sophisticated households consume more than their naive counterparts if and only if the coefficient of relative risk aversion is less than one. These results are robust across different specifications. Originality/value We provide the first realistically calibrated life cycle model of consumption and portfolio choice with non-tradable labor income and time-inconsistent preferences. We identify the conditions under which the consumption relationship of naive and sophisticated households reverse. Our simulation results confirm that sophisticated households consume more than their naive counterparts if and only if their coefficient of relative risk-aversion is smaller than one.