Type of the article: Research ArticleAbstractThe capital market is one of the investment venues that supports economic growth. Investors entering the capital market must take advantage of all issues to obtain returns on their investments. The January effect is a phenomenon related to the documentation of irrational behavior in global capital markets, but its exact nature remains uncertain. This study aims to test the existence of the January effect in the IDX by analyzing data on companies with small, medium, and large market capitalizations. The January effect was tested using the Mann-Whitney test on daily data, with a total of 17,760 observations during the 2023–2024 period, comprising 8,400 Small Market Capitalization (SMC), 7,920 Medium Market Capitalization (MMC), and 1,440 Large Market Capitalization (LMC) stocks, accessed via www.idx.co.id or www.yahoofinance.com. Findings reveal significant evidence of the January effect among small-cap firms, with returns showing positive anomalies in January. Conversely, no such evidence is found in medium or large-cap firms, suggesting that the anomaly is not universal. This study concludes that market anomalies may persist within certain segments, and, in practical terms, underscores the importance of investor caution when relying on seasonal anomalies in decision-making.AcknowledgmentThe authors would like to express sincere gratitude to Muhammad Dava Rizki for his assistance in data tabulation, to Dr. Didi Pianda for his valuable preliminary review, and to Dr. A.Y.M. Atiqul Islam for his insightful suggestions.

Type of the article: Research ArticleAbstractFinancial statement fraud (FSF) continues to undermine investor confidence, particularly in emerging markets where governance enforcement remains uneven. This study examines how Fraud Triangle factors influence FSF and whether earnings management strengthens these relationships in Vietnam. Using a two-step system GMM regression on 138 listed non-financial firms over 2019–2022 to address potential endogeneity concerns, the results show that financial distress significantly increases fraud risk. Firm performance is also positively associated with fraud, implying that pressure to maintain good results may contribute to misreporting. State ownership and foreign ownership are both negatively associated with FSF, indicating that monitoring by these shareholders constrains fraudulent behavior. Industry characteristics proxied by receivables intensity are positively related to fraud, suggesting greater opportunity for manipulation in revenue-related accounts. In contrast, liquidity and auditor reputation do not exhibit statistically significant effects, suggesting that external audit prestige alone may be insufficient to constrain fraudulent reporting in transitional regulatory environments. Importantly, earnings management is positively associated with FSF and significantly strengthens the impact of financial distress on fraud, indicating that discretionary accruals amplify the translation of financial pressure into misreporting. These findings point to the importance of improving financial management, enhancing transparency, and strengthening regulatory oversight to reduce fraud risk and support more effective detection by policymakers, auditors, and investors.Acknowledgment(s)This research is funded by the University of Economics and Law, Vietnam National University Ho Chi Minh City/VNU-HCM

Type of the article: Research ArticleAbstractFinancial inclusion has become increasingly central to the European Union’s social policy agenda amid digital transformation, recurrent economic shocks, and persistent poverty and inequality concerns. This study aims to assess the impact of financial inclusion on poverty risk and income inequality in the European Union, with particular attention to non-linear and long-run effects. The analysis uses annual aggregate EU-level data for 2004–2023. It applies time-series econometric methods, including correlation analysis, unit root and Granger causality tests, linear and quadratic regressions, and Error-Correction Models. The results indicate that financial inclusion does not exert a uniform direct linear effect on social outcomes. Correlation analysis shows a strong association between digital financial use and income inequality (e.g., card transactions and the Gini coefficient: r = −0.69; internet banking use and the Gini coefficient: r = −0.63), while correlations with poverty risk remain weak. Regression results confirm that most financial inclusion indicators have no statistically significant linear effect on poverty risk. However, a significant non-linear (inverted U-shaped) relationship is identified between card payment transactions and poverty risk, indicating that poverty risk declines once digital payment usage exceeds a threshold. In contrast, income inequality is significantly and negatively associated with traditional financial access, as increases in bank branch density per 100,000 inhabitants reduce the Gini coefficient in both the short and long run. Overall, the findings show that the social effects of financial inclusion in the EU are outcome-specific and depend on the form and intensity of inclusion rather than access alone.

Type of the article: Research ArticleAbstractFirms worldwide are embracing ESG principles and strengthening their ESG performance to foster sustainable development. This study uses five years of data from China to examine the relationship between ESG performance and corporate financial performance (CFP), measured by ROE, and tests the moderating effects of analyst and media attention using both ordinary least squares (OLS) and the fixed-effects model (HD-FE). Regression analyses demonstrate that: (1) the ESG performance has a significantly positive effect on ROE (coefficient = 0.026, p < 0.01), and after lagged by one and two periods, the effect is sustained (coefficient = 0.019/0.018, p < 0.01). (2) Analyst attention negatively modulates the relationship between ESG and ROE (coefficient = –0.011, p < 0.01), and the relationships for CSR (coefficient = –0.002, p < 0.01) and CG (coefficient = –0.011/–0.012, p < 0.01), but can mitigate the negative effect of environmental protection (ENV) on ROE (coefficient = 0.002, p < 0.01). (3) Media attention shows no consistent moderating effect on ESG-ROE relationship (coefficient = –0.001, p > 0.10; coefficient = –0.001, p < 0.05), but after classifying by sentiment, positive and neutral media coverage significantly weakens the positive impact of ESG on ROE (coefficient = –0.004/–0.005, p < 0.01; coefficient = –0.003/–0.004, p < 0.05/0.01), while negative coverage strengthens it (coefficient = 0.003/0.002, p < 0.05/0.10). Therefore, to meet external regulatory or public expectations, firms should strive to disclose more detailed and reliable ESG information, while investors and other stakeholders should critically evaluate the information presented.

Type of the article: Research ArticleAbstractHerding behavior, in which investors follow overall market trends rather than conducting independent analysis, has significant implications for market efficiency, volatility, and liquidity conditions, particularly in emerging markets like Indonesia. This study aims to investigate the presence and dynamics of herding behavior in Indonesia’s LQ-45 index during three distinct periods: pre-pandemic (2019), pandemic (2020–2021), and post-pandemic (2023). The sample comprises 22 firms consistently listed on the LQ-45 index, with daily data collected from 2019 to 2023. A time-series regression based on the Cross-Sectional Absolute Deviation (CSAD) model measured herding intensity, while a Granger causality test assessed the relationship between herding behavior and market liquidity. The results indicate that herding behavior intensified significantly during the pandemic, evidenced by a strong negative γ₂ coefficient (–0.0124, p = 0.0026) and an adjusted R² of 0.1902, the highest across all periods. In contrast, the pre-pandemic period showed relatively weak herding behavior under more stable market conditions, while the post-pandemic phase demonstrated a return to more independent decision-making. The Granger causality test confirmed a bidirectional relationship between market liquidity and herding during the crisis, while such causality was absent after the pandemic. In the pre-pandemic period, herding influenced liquidity (p = 0.014), while no significant causal relationships were found afterward. Overall, herding behavior increased during the pandemic but returned to more independent decision-making in the post-pandemic phase.AcknowledgmentsThe authors thank to Universitas Syiah Kuala for supporting this research. We also thank the reviewer for the thorough review of this manuscript and for the guidance on this research article. We sincerely appreciate the time and effort you have dedicated to providing valuable feedback.

Type of the article: Research ArticleAbstractGlobally, small and medium-sized enterprises (SMEs) are facing increasing pressure to achieve sustainability goals through vital financing mechanisms, including green financing, social impact investments, and microfinancing. This study examines the impact of modular innovation on the relationship between sustainable development financing (SDF) and the performance of SMEs in an emerging economy. The research used a cross-sectional survey of 740 SMEs across Nigeria from January 2024 to March 2024. After cleaning the data, 612 responses were valid. These responses were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that all three sustainable financing mechanisms have a significant and positive influence on SME performance. Modular innovation, specifically incremental, architectural, and radical innovation, notably moderates these relationships. Incremental innovation exhibited the strongest moderating effect (β = 0.543), followed by radical innovation (β = 0.473), and architectural innovation (β = 0.441). This suggests that innovative capacity enhances the impact of sustainable financing. Consequently, these results underscore the crucial role of modular innovation in improving the effectiveness of sustainable financing for SMEs. They also emphasize the need to incorporate innovation policies that support SME growth via green financing, social impact investments, and microfinancing in emerging economies like Nigeria.AcknowledgmentsThe authors express their gratitude to the anonymous reviewers, the journal editor, and all the scholars whose work was referenced in this study. They also sincerely thank the respondents who provided the data necessary for the research.

Type of the article: Research ArticleAbstractInterest paid by companies on the debt acquired to finance their operations is a major factor that influences their financial performance and long-term growth opportunities. This paper aims to examine whether Chief Executive Officers’ (CEOs) personal and professional characteristics, including age, academic qualification, managerial experience, stock ownership, duality, and tenure, impact companies’ cost of debt using a sample of service and manufacturing firms listed on the Amman Stock Exchange during the period 2015–2023. The cost of debt is represented by the effective interest rate paid by a company on its debts, which is determined by dividing the firm’s interest expense at the end of the year by the firm’s average total debts. Based on fixed effect regression analysis, the results indicate that firms’ cost of debt exhibits significant negative relationships with both CEO academic qualifications and practical experience (p < 0.05), while the relationships between the cost of debt and CEO age, stock ownership, duality, and tenure are insignificant (p > 0.10). These results suggest that highly educated and experienced CEOs tend to make more efficient financial decisions, which enhances creditors’ trust in the company and is reflected in a reduced cost of debt.

Type of the article: Research ArticleAbstract Digital transformation plays a crucial role in the evolution of industrial companies, serving as a key driver for boosting productivity and streamlining operational efficiency. This modern shift not only facilitates the adoption of advanced technologies but also fosters a culture of innovation and agility within organizations. Therefore, this study aims to explore the relationship between digital transformation and financial sustainability among industrial companies listed on the Amman Stock Exchange, shedding light on how these digital initiatives can lead to long-term financial health and resilience in an increasingly competitive market. Panel data were built based on the annual reports of 32 industrial companies listed on the Amman Stock Exchange from 2015 to 2023, which were chosen due to their critical role in the national economy. FEM and GMM were employed to obtain study outputs. The study concluded that the relationship between digital transformation and financial sustainability is significant and positive (Coef 0.52, P-value 0.01), meaning that digital transformation contributes significantly and positively to enhancing financial sustainability in Jordanian industrial companies. An interaction coefficient was also found between digital transformation and firm size (Coef = 0.07, P-value = 0.04), where company size is a moderating factor that strengthens the impact of this transformation on financial sustainability. Accordingly, the study recommends expanding the scope of future research to explore the factors driving digital transformation, most notably entrepreneurship and organizational innovation, given their potential role in accelerating the pace of transformation and achieving its sustainable impact.

Type of the article: Research Article AbstractThe paper deals with the intersection of technological awareness and moral behavior in the context of online gambling. The study analyzes the influence of blockchain understanding on anti-online gambling attitudes, with religiosity and perceived social impact serving as mediators. The study’s object comprises 532 millennial Muslims in Indonesia, selected through simple random sampling, and surveyed from July to October 2024. Respondents met inclusion criteria such as age 17-50 years, Indonesian citizenship, Muslim identity, and knowledge of blockchain. Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) was employed to assess proposed relationships.The results demonstrate that blockchain understanding has a significant positive direct effect on online gambling attitudes (T = 3.974; p < 0.001), suggesting that higher blockchain literacy may actually increase openness toward gambling, possibly due to perceived anonymity and security. In contrast, blockchain understanding significantly enhances religiosity (T = 58.653; p < 0.001) and perceived social impact (T = 4.929; p < 0.001), both of which positively influence anti-online gambling attitudes (T = 11.370 and T = 11.574; p < 0.001). Furthermore, indirect effects confirm that both religiosity (T = 9.822; p < 0.001) and perceived social impact (T = 20.224; p < 0.001) significantly mediate the relationship between blockchain understanding and anti-gambling attitudes. The study concludes that while blockchain knowledge alone may increase gambling engagement, its influence can be redirected toward anti-gambling behavior through enhanced moral and social awareness. The findings offer practical value in designing educational interventions that integrate technological literacy with religious and social ethics.

Type of the article: Research ArticleAbstractInvestor sentiment plays a crucial role in shaping firm valuation dynamics within emerging markets, where its bidirectional relationship with Tobin’s Q remains a largely uncharted territory. This is especially relevant in contexts like Vietnam, where the dominance of retail investors and the prevalence of herd behavior significantly heighten market volatility, creating unique challenges for understanding market mechanisms. This study delves into the mutual interplay between investor sentiment and Tobin’s Q among companies listed on the Vietnamese stock market, aiming to uncover the intricate connections that influence valuation processes. The study employs the Autoregressive Distributed Lag (ARDL) model, a robust econometric approach, to analyze an extensive dataset comprising 410 firms from the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) over the period spanning 2015 to 2023. The findings unveil a multifaceted dynamic: in the short term, investor sentiment negatively affects Tobin’s Q, suggesting that excessive market optimism often leads to overvaluation, followed by necessary corrections. In contrast, over the long term, sentiment positively affects Tobin’s Q, indicating that sustained positive perceptions can substantially enhance firm valuation. Furthermore, Tobin’s Q demonstrates a positive short-term influence on sentiment, reflecting how improved valuations bolster investor confidence, although this influence fades in the long run. Granger causality tests reinforce the presence of a reciprocal short-term relationship between these variables. These insights underscore the critical influence of sentiment on firm valuation within Vietnam’s emerging market, providing valuable guidance for investors and policymakers to better manage and mitigate the risks associated with sentiment-driven market fluctuations.AcknowledgmentsWe, Trang Tran Thi Thu, Huyen Le Thanh, and Dien Do Thi, would like to extend our deepest gratitude to our families for their unwavering support and encouragement throughout this research. Their patience and understanding have been a constant source of strength for us.We are also immensely grateful to our colleagues for their invaluable assistance and collaboration. Without the support of our families and colleagues, this research would not have been possible. Thank you all for your belief in us and your continuous encouragement.