Journal of Finance and Accounting Research

Measuring Financial Stress for Emerging and Developed Countries

2025-10-06T06:43:55+00:00

The current study adopted a comprehensive approach by developing monthly Financial Stress Indices (FSIs) for emerging and developed countries. The study built indices for 20 emerging economies at the country, aggregate, and region levels from January 1997 to December 2016. Similarly, the study constructed monthly FSIs at country and aggregate levels for 23 developed countries, covering the period from January 1993 to December 2016. Principal Component Analysis (PCA) was applied to develop these FSIs. The study determined that political risk is crucial in systemic Financial Stress (FS) in emerging countries, whereas financial and economic risk contribute significantly more to FS in developed countries. The study's unique contribution is the inclusion of political risks in constructing stress indices alongside economic and financial risks. It underscores the importance of promoting regional policy coordination and reducing domestic vulnerabilities to maintain financial stability.

IFRS 18 and the Future of Financial Performance Reporting: Challenges, Implications, and Roadmap for Implementation

2025-12-08T04:26:11+00:00

The current study examined the introduction of International Financial Reporting Standard 18 (IFRS 18) and its implications for the future of financial performance reporting globally, with a focus on emerging economies, such as Nigeria. IFRS 18 represents a pivotal shift from previous reporting standards by mandating standardized presentation formats. This includes defined subtotals, such as operating profit and requiring disclosures of Management Performance Measures (MPMs). These changes aim to enhance transparency, comparability, and decision-usefulness of financial statements for investors and stakeholders. However, the implementation of IFRS 18 presents considerable challenges, including the need for extensive capacity building among preparers, auditors, and regulators, as well as the integration of new reporting technologies and systems. This study explored the conceptual foundations of IFRS 18 within accounting theory. Moreover, it also reviewed the practical challenges faced by firms and analysed the broader implications for corporate governance and investor confidence. Comparative insights from jurisdictions with advanced IFRS adoption provided valuable lessons for Nigeria and similar emerging markets. The study further proposed a roadmap for effective implementation, emphasizing regulatory support, professional training, and stakeholder engagement as critical success factors. Ultimately, IFRS 18 offered an opportunity to elevate financial reporting quality and foster sustainable economic development through improved corporate accountability and transparency. This article contributed to scholarly discourse by linking theoretical perspectives with practical solutions to facilitate the transition to IFRS 18.

Microcredit and Women Empowerment: A Case Study of Akhuwat Beneficiaries

2025-12-08T07:13:07+00:00

Women's empowerment is one of the most debated and challenging topics in empirical research. In developing countries, women face numerous challenges related to their socio-economic conditions. Microcredit is a powerful tool to empower women. Microcredit institutions provide their services to poor women. The main objective of this study is to analyze the effectiveness of microcredit in promoting women’s empowerment among the borrowers of Akhuwat Islamic Microfinance Bank. Towards this end, we perform the non-parametric test and descriptive analysis based on the sample of 120 women who have taken loans from Akhuwat Islamic Microfinance in the city of Chakwal. Five dimensions of empowerment are used to arrive at an aggregate index of empowerment. These dimensions are economic empowerment, social empowerment, political empowerment, psychological empowerment, and technological empowerment. The study is unique in the sense that no one has used technological empowerment in a previous study. The data were collected through a structured questionnaire and conducted interviews to assess the complexity of the phenomenon of women's empowerment. The collected data were analyzed through SPSS v. 20 and STATA 14 by using the technique of non-parametric tests (Wilcoxon Signed Rank Test) and descriptive statistics. The findings of the study have shown that there are positive results of microcredit on women's empowerment. The most influential dimensions to empower women include economic, social, and technological empowerment. The findings suggest that microcredit plays a crucial role in shaping women's empowerment. The study concludes with recommendations for lenders to leverage microcredit.

Determinants Shaping Choices for Robo and Human Advisors in German Financial Market: A Theoretical Review

2025-12-08T07:30:44+00:00

The financial industry has experienced a radical change brought about by the development of robo-advisors, a technology that combines financial technology (fintech) and artificial intelligence (AI). With the ongoing growth of digitalisation, AI-based advisory services are transforming the ways in which people engage in financial services to provide new inclusion and access possibilities. These platforms help people, especially those who are not financially smart enough to take advantage of investment options previously available only through the traditional advisory channels. The current theoretical analysis is a critical explanation of the introduction of robo-advisors in German financial marketplace, which is marked by high regulation, cultural conservatism, and a high degree of trust in human advisors. Based on Schumpeter’s Innovation Theory, the models adopted in terms of technology include the Technology Acceptance Model (TAM), the Technology Adoption Life Cycle (TALC), and the Theory of Reasoned Action (TRA), all of which discuss the behavioural and structural levels of adoption. Although these frameworks provide useful insights into the process of innovation diffusion and user acceptance, they do not tend to consider key cultural and ethical aspects of the innovation process, such as privacy, trust, and institutional credibility. Through a synthesis of these models, the current review reveals a comprehensive picture of the interplay of technological advancement, behavioral intention, and cultural context in the decision-making process of technology adoption. It underlines the need for responsible and culturally sensitive innovation in the German fintech market and suggests its practical implications for policymakers, financial institutions, and tech developers who want to drive responsible and sustainable digitalisation.

Firm Innovation and Dividend Policy: Mediating and Moderating Role of Firm Financial Characteristics

2025-12-08T10:11:23+00:00

This study aims to investigate the mediating and moderating effect of firm financial characteristics in the relationship between firm innovation, stock trading volume, and dividend policy. For data analysis, quantitative methodology was used based on a secondary data set of 82 firms of the manufacturing sector listed on Pakistan Stock Exchange (PSX). Data was collected for the period 2014-2023. The selected company’s financial ratios provided the key quantitative metrics for analysis. The mediation analysis revealed a significant positive effect of firm performance in the relationship between firm innovation, stock trading volume, and dividend policy (measured through dividend payout), confirming hypotheses 1, 2, 5, and 6. Likewise, the moderating effect of firm size in the relationship between firm innovation, stock trading volume, and dividend payout was also found to be significant and positive, supporting hypotheses 3 and 4. Previous studies primarily focused on innovation in IT firms, leaving innovation in the manufacturing sector largely unexplored. This paper makes two key contributions. Firstly, it examines manufacturing firms engaged in innovation. Secondly, it addresses this gap by analyzing the firms’ unique characteristics through firm innovation and trading volume factors overlooked in prior research. By doing so, this study provides updated evidence, enhancing the robustness of the existing findings.