Type of the article: Research ArticleAbstractBoard diversity plays a significant role in determining a corporate cash hoarding policy as it influences investment decisions and financial flexibility. This study investigates how investor protection laws moderate the relationship between board diversity and corporate cash hoarding in Europe. Using a sample of 484 listed firms from European capital markets during the period 2015–2023, the analysis captures the influence of board gender diversity on cash reserves and how investor protection levels (high/low) moderate such a relationship. These variables and vital control variables of cash holdings are examined using a panel fixed-effects model and generalized methods of moment (GMM), along with diagnostic tests of model validity. The empirical results reveal that the presence of female directors on the board positively affects corporate cash hoarding, and thus, this effect is more pronounced in countries with high and low investor protection. Additionally, the presence of female executives on the board tends to exhibit more cash reserves and liquidity buffers. The results also provide ample evidence that the high and low levels of investor protection strengthen the positive effect of gender diversity on cash hoarding. This study offers significant theoretical and practical implications for regulators, policymakers, and investors, providing suggestions on the use of investment decisions and contributing to the stability of liquidity management in European capital markets.

ABSTRACT This study analyzes the impact of economic freedom and economic growth in 51 developing countries for the period 2000–2021. Using panel cointegration and dynamic panel GMM estimators, we test whether institutional quality—as reflected by economic freedom—drives long‐run income growth. The results indicate a persistent positive effect of economic freedom on GDP per capita, consistent across different estimation techniques. Investment also contributes positively to growth, while labor effects are more heterogeneous. These findings underscore the importance of institutional reforms that strengthen market efficiency and reduce regulatory barriers in sustaining economic growth across developing economies.

Abstract This study assesses the influence of media sentiment on liquidity risk during financial crises within the context of the Russian financial market. Trade sanctions, especially the suspension of the SWIFT network, have profoundly impacted Russian banking sector liquidity. Given this vulnerable situation, the study utilizes media sentiment data to analyze banking sector performance via monthly data from January 2012 to December 2024. This study applies big data modeling techniques to construct positive, negative, and mixed media sentiment indices to evaluate their relationship with bank liquidity risk. The findings, which are based on GMM estimation, reveal that the media sentiment index is significantly and positively associated with bank liquidity risk. Moreover, negative and mixed media sentiment indices have a detrimental effect on bank performance, leading to an appreciation of liquidity risk. Additionally, the study finds that interbank networks play a vital role in mitigating liquidity risk. Overall, media sentiment significantly impacts banking performance. The findings provide practical implications for banking sector policymakers, financial market regulators, and investors in making informed decisions during both normal and crisis periods.

Purpose The study is conducted to investigate the impact of Belt and Road Initiative (BRI)-induced transport infrastructure on export sophistication in BRI member countries. For this purpose, panel data from 65 BRI member countries from 1990 to 2023 are utilized both in the total sample and in the grouped sample of South Asia, Southeast Asia, Central Asia, the Middle East & Africa and European BRI member countries. Design/methodology/approach We have devised a new global transport infrastructure to cover all the key extents (i.e. air, sea and land infrastructure). For analysis, a panel ARDL model with a dummy approach is employed. Findings The result of the study shows that BRI-induced transport infrastructure has a positive significant impact on export sophistication in every sample of the study. By comparing the results of different samples of the study, we conclude that BRI-induced transport infrastructure impact on export sophistication is stronger in the Central Asian sample, followed by the total sample and the Southeast Asian sample, while in the case of South Asia, the Middle East, Africa and the European sample, its effects are relatively low. The study further points out that with the passage of time, transport infrastructure’s impact on export sophistication increases. Besides the main variables, the control variables of the study, such as institutional quality, human capital (taken as a proxy for knowledge), FDI, per capita GDP and research & development expenditures (taken as a proxy for innovation), have a positive impact on export-sophistication, while exchange rates have a negative impact on export-sophistication. Originality/value For the robustness check of these results, the GMM estimation procedure is adopted, which confirms the reliability of the estimated panel Autoregressive Distributed Lag results of our study.

Purpose Responsible innovation is the hope of facing grand challenges. Currently, European countries are establishing new policies and strategies to foster them. However, the concept is still at an embryonic level and requires a large focus from both practitioners and researchers. Additionally, a significant research gap exists in terms of the integrated corporate governance's effect on responsible innovation. Hence, in this study, we investigate the concept of responsible innovation and the effect of board diversity on German companies. Design/methodology/approach Our sample is composed of firms listed firms of the H-DAX index from 2010 to 2023. First, we used principal component analysis (PCA) to define responsible innovation. We then run our model using the generalized method of moments (GMM) estimation to test the effect of board diversity measures on responsible innovation. Findings Our results highlight the positive effect of board independence on responsible innovation. However, the board size and the female executive directors' presence have negative effects. Finally, we found that CEO duality has a significant positive influence on responsible innovation. Research limitations/implications Although this study is limited to the German context, it provides an extensive view of how decision makers can manage and orient the board of directors and align their corporate governance toward responsible innovation targets. Originality/value The originality of this paper lies in the focus on the concept of responsible innovation, which remains underexplored, although it has gained increasing attention over the last century. It is crucial to orient the corporate governance structure toward responsibility and innovation.

ABSTRACT This study examines the dynamic interplay between public debt, corruption, and economic growth in 36 Sub‐Saharan African (SSA) countries over the period 2000–2022. Utilizing a two‐step System Generalized Method of Moments (GMM) estimator to address endogeneity concerns, we assess both the individual and interactive effects of public debt and corruption on economic growth. Robustness checks employing fixed‐effects, random‐effects, and leverage‐distance diagnostic techniques confirm the stability of our estimates. The findings reveal that both public debt and corruption independently exert statistically significant negative effects on economic growth. However, their interaction yields a counterintuitive result: in contexts characterized by high levels of corruption, public debt is positively associated with short‐term growth, suggesting the presence of a nonlinear relationship. Specifically, we identify a corruption threshold—4.90 on the logarithmic scale of the Corruption Perceptions Index—above which debt‐financed spending may temporarily boost output by circumventing bureaucratic inefficiencies. These results underscore the complex policy challenges facing SSA economies, where weak institutional environments constrain effective fiscal policy implementation. While the analysis does not endorse corruption, it highlights the relevance of second‐best policy considerations in governance‐fragile settings. Achieving sustainable and inclusive growth in the region requires comprehensive reforms aimed at reducing corruption, enhancing institutional capacity, improving fiscal governance, and ensuring the efficient utilization of public debt. Strategic investment and cross‐sector collaboration will be critical to building resilient and equitable development pathways.

Abstract With the motivation to explore China’s nationally determined contributions (NDCs) toward a net zero emission future, we examine whether green technology innovation mitigates carbon dioxide (CO 2 ) emission thereby improving environmental quality across five of the most populous provinces (consisting of 85 cities) for the period between 2007 and 2019 in a multidimensional panel approach with an endogeneity robustness from two-step system generalized method of moments (GMM). The results show green technology innovation, economic output (GDP), and financial development spur CO 2 emission in the across the provinces. Meanwhile, especially in the whole panel, green technology innovation is dependent on the level of industrial structure (a moderation effect), but this interaction effect fails to show desirable outcome in the province-specific cases. Additionally, in each of Guangdong, Henan, Hunan, Shandong, and Sichuan provinces, carbon emission is triggered by an increase in GDP and financial development. Additionally, green technology innovation (i) worsens carbon emission through the moderating effect of advanced industrial structure and industrial structure rationalization in Guangdong and Sichuan provinces (ii) worsens carbon emission through the moderating effect of rationalization of industrial structure in Henan, Sichuan, and Shandong provinces. These findings have vital policy insight toward improving the quality of green innovations in China. Graphical Abstract

The acceleration of digital transformation has significantly enhanced information and communication technology (ICT) competence among Indonesian citizens, thereby strengthening the nation’s overall competitiveness. Despite this progress, there remains a need to understand the extent to which government education spending influences the improvement of ICT skills in both the short and long term. This study investigates the dynamic effects of education expenditure on ICT competence in Indonesia using provincial-level panel data sourced from the Indonesian Central Bureau of Statistics and the Ministry of Finance, covering the period from 2015 to 2023. The analysis employs the Generalized Method of Moments (GMM) to capture both temporal and cross-sectional variations. The results reveal that, in the short term, government education spending has a negative effect on ICT competence, possibly due to implementation delays or inefficiencies in resource allocation. However, in the long term, education spending contributes positively and significantly to the enhancement of ICT competence, indicating the cumulative benefits of sustained investment in education. Furthermore, internet access is consistently found to have a positive impact on ICT competence, emphasizing the importance of digital infrastructure. These results imply that consistent and well-targeted education investments, particularly in digital literacy and infrastructure, are essential for sustaining long-term ICT competence and supporting Indonesia’s digital transformation agenda

This study investigates the effect of board diversity on green revenue among Saudi-listed firms. It places particular emphasis on the moderating role of shareholder value. To achieve this objective, the study constructs a composite board diversity index using principal component analysis (PCA). It employs random-effects panel regression models on firm-level data covering the period 2020–2024. Robustness is ensured through alternative model specifications and Generalized Method of Moments (GMM) estimations. The findings reveal that board diversity is positively associated with green revenue. In contrast, higher shareholder value, as measured by market valuation, is negatively associated with green revenue. Importantly, board diversity significantly mitigates this negative relationship. This indicates that diverse boards encourage stronger engagement in sustainable activities, even in highly valued firms. The study contributes to the literature by integrating board diversity, green revenue, and shareholder value within a single empirical framework in an emerging market context. The results offer novel evidence that board diversity serves as an effective governance mechanism for aligning sustainability objectives with value-driven corporate strategies. From both theoretical and policy perspectives, the findings support agency and resource-dependence theories. They highlight the importance of inclusive board structures in embedding sustainability into corporate decision-making.

Abstract This study investigates the determinants of capital structure by comparing firms listed on two prominent global stock indices: the S&P 500 (United States) and the NSE CNX 500 (India). Specifically, it examines how firm-specific factors—such as liquidity, asset tangibility, and sustainability practices—influence leverage decisions within differing economic and institutional contexts. Drawing on a comprehensive dataset of 3,575 firm-year observations from 406 S&P 500 companies and 4,180 observations from 419 NSE CNX 500 firms between 2011 and 2021, the analysis employs Two-Stage Least Squares (2SLS) regression, the Generalized Method of Moments (GMM), and a series of diagnostic tests addressing heteroskedasticity and model robustness. The empirical results indicate that liquidity, tangibility, and sustainability performance significantly affect firms’ capital structure decisions. Moreover, growth opportunities and profitability also play key roles. Cross-country differences highlight the influence of macroeconomic conditions and financial system structures on leverage behavior. This research enriches the capital structure literature by offering a comparative, cross-national perspective and provides actionable insights for corporate managers, investors, and policymakers seeking to optimize capital structure in diverse financial environments

Abstract This study examines the impact of financial inclusion on key socio-economic outcomes, namely economic growth, financial stability, and income inequality, during the pre-COVID era. We develop a composite Financial Inclusion Index (FII) using a multidimensional framework encompassing indicators of availability, usage, and penetration dimensions. The analysis covers 60 developing countries from 2005 to 2019 and employs the two-step System Generalised Method of Moments (GMM) to address potential endogeneity and dynamic panel bias. The results reveal that financial inclusion significantly promotes economic growth, particularly by improving access to banking. However, it shows no statistically significant relationship with financial stability. In contrast, higher financial inclusion appears to widen income inequality, likely due to unequal access to financial services and uneven distribution of benefits. By applying a unified FII across three macroeconomic outcomes using a consistent sample and methodology, this study provides comprehensive insights into the multifaceted effects of financial inclusion in developing economies. The findings underscore the need for policies that enhance access to finance, strengthen financial literacy, and promote responsible lending to ensure that financial inclusion contributes to inclusive and stable economic development.

ABSTRACT This study investigates the effect of Corporate Social Responsibility (CSR) on Earnings Management (EM) and how the politically connected CEOs, an underexplored governance dynamic, moderate this relationship. While CSR is often perceived as a mechanism that promotes ethical behavior and transparency, its effectiveness may be compromised in firms with political connections. Using 2,444 firm-year observations from French-listed companies between 2010 and 2022, the results reveal that although CSR constrains earnings manipulation, its effectiveness is weakened in the presence of politically connected CEOs, who may benefit from reduced regulatory scrutiny and use CSR more as a reputational tool than as a genuine governance mechanism. These findings remain robust across alternative econometric specifications that address endogeneity, including two-stage least squares (2SLS) and two-step system GMM estimators. Furthermore, when CSR is disaggregated into its Environmental, Social, and Governance (ESG) pillars, the moderating effect of political connections appears to be heterogeneous across these dimensions. Highlights Our study highlights how corporate social responsibility interacts with politically connected CEOs to affect earnings management practices in the French context. We focus on the French context due to the country's long-standing historical ties between business and politics and the influence of the ‘grande école’ system in training many leaders in both fields. To the best of our knowledge, our paper is the first to investigate how politically connected CEOs moderate the relationship between CSR and EM. The results of this study provide a new understanding of how the governance role of CSR is weakened in the presence of politically connected CEOs.

The study examined the moderating effect of audit committee independence on the relationship between risk management practices and financial stability of listed deposit money banks in Nigeria. Employing an ex post facto research design, the study focuses on the 13 quoted deposit money banks operating in Nigeria, utilizing panel data from 2015 to 2024. Data analysis was conducted using the Generalized Method of Moments (GMM) estimation technique to account for potential endogeneity and dynamic effects. Dynamic panel results show that lagged financial stability positively influences current stability, suggesting performance persistence. Audit committee independence moderates the relationship between specific risk management practices and financial stability: it strengthens operational risk management and mitigates excessive market risk exposure, while its effect on liquidity and credit risk management is less pronounced. The findings showed the importance of strong governance structures in enhancing the effectiveness of risk management practices, thereby promoting financial resilience. Practically, the study highlights the need for banks to ensure genuinely independent audit committees, robust risk monitoring systems, and continuous capacity building to maintain stability in a volatile economic environment. Theoretically, the study extends the financial intermediation and credit risk frameworks by incorporating internal governance as a moderating factor. The study contributes to banking literature by providing empirical evidence from Nigeria, emphasizing the interplay between risk management and governance in maintaining financial stability.

The study examines how economic, environmental, and social sustainability indicators influence sustainable value added in the tourism sector across the 27 European Union (EU) member states. The research addresses the limited evidence on how sustainability inputs shape value creation in tourism, highlighted in prior work such as Trinajstić et al. (2022). The purpose is to identify which sustainability dimensions support stronger long-term performance. A dynamic panel model estimated with the two-step system generalized method of moments (GMM) method is used to control for endogeneity and country-specific effects, following the approach of Arellano and Bover (1995). The results show that fixed capital formation and tourism-related turnover increase sustainable value added. Greenhouse gas (GHG) emissions show a positive association, which reflects current transitional practices. Renewable energy use contributes to stronger sustainability outcomes. Environmental taxes and social indicators show no significant link. The study concludes that economic investment and clean-energy adoption support sustainable value creation in EU tourism. The findings are relevant for policy efforts focused on green transition and long-term sector competitiveness.

Purpose This research explores the relationship between banks’ environmental, social, and governance (ESG) performance and lending practices throughout the world. Design/methodology/approach The authors employ a linear regression model with fixed effects and apply the Generalized Method of Moments (GMM), an instrumental variable approach, to address potential endogeneity in analyzing the impact of Environmental, Social, and Governance (ESG) factors on bank lending. The study utilizes data from 53 countries over the period 2002–2022, providing a broad international perspective on the relationship between ESG considerations and lending behavior. Findings The research discovered empirical evidence that banks’ ESG performance significantly influences their lending activities. Interestingly, this relationship is insignificant in developing nations. In addition, this paper examines the moderating influence of the Coronavirus pandemic on the association between ESG performance on bank lending. This paper finds evidence that banks’ increased ESG activities during the health crisis tend to improve their lending performance, especially in developed countries. Our findings indicate that societal trust, bank capital, bank size, and credit risk exposure serve as moderating factors in the relationship between ESG and loan growth. Practical implications Based on the study, this paper presents some implications for policymakers and stakeholders to address some of the pressing concerns. Originality/value This paper examines the role of the COVID-19 health crisis in the association between ESG activities and bank lending across countries.

Purpose This research explores the relationship between digital financial inclusion, technological innovation and unemployment. This study aims to examine how progress in digital finance and technology influences unemployment rates. Design/methodology/approach Drawing on data from 101 countries covering the years 2004–2020, the study uses several econometric techniques. These include the two-step system generalized method of moments (GMM), two-stage least squares (2SLS), propensity score matching (PSM) and entropy balancing to address concerns related to endogeneity. To ensure the robustness of the results, the analysis also incorporates alternative indicators and conducts subsample analysis for both developed and developing nations. Findings The main findings reveal that both digital financial inclusion and technological innovation are significantly associated with lower unemployment rates. These negative effects remain consistent across different models and data subgroups, highlighting the robustness of the results. The use of other methods such as the two-step system GMM, 2SLS, PSM and entropy balancing strengthens the robustness of the conclusions drawn. Originality/value This study offers fresh perspectives on how digital finance and technological advancements can serve as tools to combat unemployment. By applying a range of analytical approaches and examining multiple proxy measures, the research delivers a well-rounded analysis of how digital and technological developments relate to labor market outcomes.

Corporate bankruptcy risk in China is increasingly driven by structural credit discrimination and a systemic financial mismatch. This study investigates the impact of cash holdings and financial constraints on corporate bankruptcy risk in China. We employ the Two-step system Generalized Method of Moments (GMM) to analyze an unbalanced panel of 32,081 annual observations from listed firms in China, spanning the period from 2010 to 2023. Our findings indicate that higher financial constraints increase bankruptcy risk, as a one-point rise in the SA index reduces the Z-score by 4.26 points, supporting Market Timing Theory. Conversely, cash holdings serve as a powerful protective buffer; a 1% increase in cash holdings raises the Z-score by 0.37 points, supporting the Precautionary Savings and Trade-off theories. Furthermore, our results highlight the buffer role of cash holdings for financially constrained firms, where higher cash reserves mitigate the adverse effects of financial constraints on bankruptcy risk. Our main findings remain robust after employing alternative bankruptcy risk proxies, firm size-based, and exchange subsamples. These findings provide valuable insights for financial managers and policymakers, highlighting the importance of effective liquidity management and credit accessibility in mitigating corporate distress in emerging markets.

This study examines the determinants of stability and risk-taking in ASEAN Islamic banks by focusing on both internal bank-specific factors and external conditions. Using a panel of 33 Islamic banks from five ASEAN countries over the period 2015–2022, this study employs a two-step system Generalized Method of Moments (GMM) estimator to address endogeneity and dynamic effects. Bank stability is measured using the Z-score, while risk-taking behavior is proxied by loan loss provisions. Internal factors include profitability, credit risk, efficiency, capitalization, liquidity, and bank size, while external factors comprise market concentration and macroeconomic indicators. The empirical results reveal three key findings. First, bank stability is primarily driven by bank-specific characteristics, with credit risk, efficiency, capitalization, bank size, and market concentration exerting significant effects, while macroeconomic variables remain insignificant. Second, risk-taking behavior exhibits strong persistence and is significantly influenced by both internal factors and macroeconomic conditions, particularly economic growth and inflation. Third, higher market concentration is associated with lower bank stability and greater risk-taking, supporting the competition–fragility hypothesis in the context of ASEAN Islamic banking. These findings provide important policy implications for regulators, Islamic banks, and deposit insurance authorities in the ASEAN region, emphasizing the need for strengthened microprudential supervision, risk-based regulatory frameworks, and enhanced internal governance to ensure sustainable financial stability within dual banking systems.

Abstract The role of young chief executive officers (CEOs) in firms’ financial performance is an interesting but controversial debate among scholars. This study investigates how young CEOs affect the financial performance of firms. Using panel data from 140 non-financial Malaysian firms listed on the Thomas Reuters Eikon database, we apply the generalized method of moments (GMM). The GMM results show a positive and significant relationship between young CEOs and financial performance in the studied samples. These findings have important implications for policymakers, who can enhance financial performance by developing and implementing policies that support young CEOs. This study validates the CEO–firm match theory in the Malaysian context, and these findings offer valuable insights for young CEOs on how to improve their financial performance by adopting good governance practices to address the firm’s challenges. The findings also have practical implications for the recruitment and selection of young CEOs in Malaysian firms.

Purpose: This study aims to investigate the impact of firms’ ownership structure on growth. Particularly it examines the effect of institutional, managerial and foreign ownership on growth of listed firms in an emerging country. Design/Methodology: Generalized Method of Moments (GMM) approach was employed to conduct regression analysis. A 10 years’ sample of 100 non-financial companies listed on PSX was taken for the period 2011-2020 Findings: The results indicate that institutional ownership is positively associated with both the proxies of firm growth in Pakistan. Contrary to the initial prediction, managerial ownership also positively influences firm growth. This is due to the fact that in Pakistan, most of the managers are family members or owners which may work towards enhancing firm value. Furthermore, a positive relationship was observed between foreign ownership and firm growth, indicating that foreign investors enhance firm growth. Implications: The findings of this study will be useful for policy makers, managers and practitioners in determining the role of various categories of equity ownership on firm growth and help firms in developing relevant policies to enhance growth within corporate sector. Originality: Despite a number of studies examining the relationship between ownership structure and firm performance, research specifically focused on firm growth in context of Pakistan remains limited. This lack of evidence is further addressed in the present study through use of system’s GMM technique with both asset growth and sales growth as proxies to offer more comprehensive results regarding the influence of ownership structure on firm growth in a recent time frame.