https://ojs.umt.edu.pk/index.php/jfar <div class="row" style="text-align: justify;">The Journal of Finance and Accounting Research (JFAR) is a multidisciplinary international journal of the Department of Banking and Finance, Dr Hasan Murad School of Management (HSM), University of Management and Technology (UMT), Lahore, Pakistan. JFAR is committed to publishing high-quality studies in finance and related fields and is widely circulated, both nationally and internationally.&nbsp;Accounting, Finance &amp; Auditing are seen as essential components for the successful implementation of market-based development policies supporting economic liberalization in the rapidly emerging economies. JFAR publishes research articles and reviews within the whole field of&nbsp; Accounting, and it will continue to provide information on the latest trends and developments in this ever-expanding subject.</div> Department of Banking and Finance, Dr Hasan Murad School of Management (HSM), University of Management and Technology, Lahore, Pakistan en-US Journal of Finance and Accounting Research 2617-2232 <p style="text-align: justify;">JFAR follows an open-access publishing policy and full text of all articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the <a href="https://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0</a> International License.&nbsp;Thus, work submitted to UMT Journals implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere.&nbsp;On acceptance of a manuscript for publication, a corresponding author on the behalf of all co-authors of the manuscript will sign and submit a completed&nbsp;<a href="https://ojs.umt.edu.pk/index.php/jfar/libraryFiles/downloadPublic/19">Author Consent, Copyright, and Declaration Form.</a></p> https://ojs.umt.edu.pk/index.php/jfar/article/view/2093 <p>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.</p> Haleema Sadia Jawad Ahmad Azeez ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2025-09-30 2025-09-30 1 37 10.32350/jfar.72.01