This paper investigates the determinants of investors’ subjective risk profiles and the factors associated with the divergence between subjective and objective risk. Using a proprietary dataset of 1,077 investors provided by a major Italian bank, we analyse risk profiles derived from MiFID suitability assessments and compare them with an ex-post indicator of portfolio–profile alignment. First, ordered logit models show that gender, financial wealth, financial knowledge and experience, and investment horizon are significant predictors of subjective risk tolerance, while age, occupation, and ESG attitudes play a limited role. Second, we examine the persistence of portfolio suitability over time and find that the determinants of ex-post alignment differ from those of subjective risk. Wealth emerges as the most stable predictor of portfolio–profile coherence, while the effects of financial knowledge and investment horizon become weaker. The findings highlight the limitations of static risk profiling and suggest that maintaining long-term portfolio suitability depends on factors extending beyond initial investor characteristics.
Certification programmes are widely promoted as a means of improving the livelihoods of cocoa producers, but their effects on income remain debated. This study assesses the impact of certification programmes on cocoa farmers’ income in Côte d’Ivoire. The analysis is based on a sample of 150 farmers surveyed in three cocoa-growing regions (Bonon, Soubré, and Biankouma), which reflect evolution of cocoa-farming trajectories in Côte d’Ivoire. A Probit model is used to analyse the determinants of participation and to estimate propensity scores. The causal effect of certification is estimated using Propensity Score Matching (PSM) and assessed for robustness using a Rosenbaum sensitivity test. The results show that literacy, expenditure on inputs, and household assets significantly increase the probability of participating in a certification programme. In contrast, working time has a negative effect on this probability. After matching, certification increases gross income by FCFA 189,499, or 77.9%, and net income by FCFA 183,478, or 112.7%, compared with otherwise comparable non-certified farmers. These effects remain robust to potential bias arising from unobserved selection. These findings suggest that certification programmes constitute an effective lever for improving the income of cocoa farmers in Côte d’Ivoire. The study highlights the need to facilitate access to certification for farmers with fewer resources. Future research should go beyond measuring the average effect of certification on income to identify the mechanisms and conditions under which this effect arises.
The private security industry in Kenya has grown steadily to meet rising demand for security services, yet the resulting competitive pressure has pushed many small firms out of the market. Efforts by these firms to target price-sensitive clients while still delivering essential security services have translated into thinner earnings, which in turn has depressed guard wages, limited investment in modern equipment, and constrained operational efficiency. The cumulative effect has been poor service delivery, delayed response to alarms, loss of property and cash in transit, and the collapse or deregistration of several firms. This study therefore examined the effect of low-cost entrants on the performance of private security firms in Nakuru County, Kenya, focusing specifically on pricing strategies, operational capacity, and cost management. The study was anchored on the balanced scorecard model and supported by price signaling and systems theories. A descriptive research design was adopted, targeting the 23 small private security firms and 235 management-level employees drawn from the finance, operations, and marketing functions. The Yamane formula was applied to derive a sample of 148 respondents, and primary data were collected using a structured questionnaire and analyzed with SPSS version 27 using descriptive, correlation, and regression techniques. The results showed that pricing strategies, operational capacity, and cost management each had a positive and statistically significant effect on firm performance, with operational capacity emerging as the most influential factor, followed by cost management and then pricing strategies. The study concluded that the effective integration of operational capacity, cost management, and strategic pricing enhances the performance of private security firms operating amid low-cost competition. It is recommended that firms invest in operational capacity, strengthen cost-control measures, and adopt value-based pricing strategies, and that policymakers foster a regulatory environment that supports fair competition and long-term sustainability in the private security sector.
Introduction: This study examined the impact of artificial intelligence (AI) and automation on hassle-free bookkeeping among small and medium-sized enterprises (SMEs) in the UK retail and service industries. User acceptance was a mediating variable, and digital trust was a moderating variable based on a Technology Acceptance Model (TAM)-inspired model. Methodology: The study adopted quantitative cross-sectional research design and data was collected through online questionnaire from the owners and employees of SMEs engaged in financial and operational activities. The data of 410 respondents were then analysed in SmartPLS, 4.1 using Partial Least Squares Structural Equation Modelling (PLS-SEM). Demographic analysis, measurement models including discriminant validity, path analysis, and model explanatory power using R-squared were used to test the study hypotheses. Results: The findings show there is a positive and significant effect of AI and automation on hassle-free bookkeeping (β = 0.386, t = 6.347, p = 0.001). Additionally, the indirect influence of AI and automation on hassle-free bookkeeping had an indirect impact, mediated by user acceptance (β = 0.117, p < 0.05), which means that user acceptance partially mediated the relationship. Moreover, AI and automation and user acceptance were also moderated by digital trust (β = 0.117, t = 2.060 p = 0.040), meaning that high digital trust would lead to high acceptance. Conclusion: The research has practical implications to UK SMEs and policymakers as it recommends the importance of trust-building, training based on user considerations, and facilitative policies on digitalisation in enhancing the adoption of AI-based bookkeeping.
Introduction: Accounting career in Malaysia is in a digital revolution, and this requires financial accounting education to be focused on the new age technologies. The research aimed at studying the mediating role that technology adoption plays in the association between financial accounting education and the suitability of accounting graduates to the contemporary profession. Methods: A primary-based survey research design was applied which involved 360 respondents from higher learning institutions and professional training centres in Malaysia. A regression-based mediation analysis was performed using the PROCESS Macro (Model 4) suggested by Preacher and Hayes. Direct and indirect effects were estimated using ordinary least squares regression and the significance of the indirect effect of technology adoption on the relation between financial accounting education and professional relevance was tested using bootstrapping with bias-corrected confidence intervals. Results: The result showed that financial accounting education had significant predictive association with the accounting profession. Technology adoption partially mediated the relationship and reveals that technology adoption is beneficial in increasing the relevance between accounting education and the profession. Conclusion: As the study shows, there is a need to reformulate policies to incorporate technology in accounting courses to ensure that the graduates are in a better position to address the changing digital demands in the accounting field. This will result in the alteration of the accounting curriculum in Malaysia.
Introduction: This article examines the predictors of official and parallel open-market exchange rates in Pakistan. It also investigates whether both exchange rates move together. In addition, it identifies structural factors that drive persistent exchange-rate divergence. Methods: The analysis uses both an exchange-rate series and an additional ARDL model to investigate the relationship between official and parallel rates, employing a moving-average approach with annual data (1996-2025). The stability, speed of adjustment, and short- and long-run effects were evaluated using unit root tests and the ARDL model. Results: The ARDL analysis confirms a stable long-run relationship among macroeconomic indicators and exchange rates in a dual exchange rate system. In the long term, inflation and GDP are found to have positive, statistically significant impacts on both the official and parallel exchange rates. On the other hand, interest rates have a significant steadying impact. In the short run, adjustments in the exchange rate are primarily driven by variations in the interest rate and output shocks, whereas reserves and imports remain insignificant. Conclusion: The results point to Pakistan's susceptibility to inflationary forces, policy-rate distortions, and structural imbalances. Inflation stabilization, greater adequacy of reserves, and reduced regulatory distortions between the official and open markets are necessary to curb speculation, narrow premium gaps, and enhance exchange-rate stability.
Introduction: Digital Twin Technology (DTT) is increasingly recognized as a valuable tool for advancing sustainable urban development amid ongoing digital transformation and sustainability challenges in the UK. This study investigated the role of DTT on sustainable urban development and the mediating role of financial implications, risk governance, and SDG reporting frameworks. Methods: A mixed methods approach was used, involving a quantitative and qualitative techniques to explore the role of digital twin technology on Sustainable Urban Development (SUD) through financial aspects, risk governance and SDG reporting alignment. Quantitative survey data gathered from 340 participants was analysed by applying PLS-SEM and accompanied by qualitative thematic analysis findings for deeper analysis. Results & Discussion: The direct link between digital twin technology and sustainable urban development was found as weak but indirect link through risk governance and SDG reporting frameworks was found to be positive and statistically significant. The qualitative results were further complemented by their findings, which identified Digital Twin (DT) Technology as a game-changer in the planning process, increasing collaboration and proactive planning and decision making, and also highlighted existing issues around financial feasibility, cybersecurity, accountability within governance, and uniformity of SDG reporting protocols. Conclusion: Policymakers must develop clear governance frameworks and cost-effective financial strategies for digital twin implementation. Concerns related to cybersecurity, governance and stakeholders trust signified the necessity for risk frameworks.
Introduction: The paper examines the relationship between Financial Distress (FD) and corporate life cycle phase, capital adequacy and problematic loans and the effect of such loans on the financial performance of Indonesian banks, using the return on assets measure. Methodology: The panel information in this paper included 37 commercial banks listed on the IDX from 2010 to 2023. It used the fixed effect and random effect model with the choice of the panel data according to the outcomes of the statistical test (Chow and Hausman tests). The study utilised the Baron and Kenny approach and the Sobel test, which are known to test mediation in panel data. Results & Discussion: Although the financial trouble affected the Non-Performing Loans (NPLs) to a limited extent, it led to a decline in Return on Assets (ROA), and the impact on the bank’s profits was adverse. The results were also not conclusive. The firm’s life cycle has hurt NPLs and positively impacted ROA, as indicated by the ratio of retained earnings to total assets. Banks that had been established with the aim of amassing internal capital had lower credit risk and enhanced financial performance. The Capital Adequacy Ratio did not materially impact NPLs but positively impacted ROA. This theoretical study argues that company maturity and capital structure are important in mitigating the financial performance effects of non-performing loans (NPLs). Conclusion: The result indicates that bank executives are expected to waste time building their internal reserves and making profits. In addition, it is advisable that the regulatory bodies consider giving well-regulated banks the opportunity to reduce their risk-reward ratios.
This study examines the optimization of electricity generation portfolios in the Turkish electricity market (EPIAS), which is characterized by high price volatility. Previous studies in the literature generally rely on the ‘Mean-Variance’ (MV) model; however, sudden price jumps and asymmetric return structures in the electricity market do not meet the normal distribution principle, which is the basic assumption of the MV model. Therefore, skewness moment has been included in the MV model, and the Mean-Variance-Skewness (MVS) model, which does not assume normal distribution, has been created. In this study, Mean-Variance-Skewness (MVS) is used with hourly data for the period 2024-2025 to analyze how electricity producers take advantage of asymmetric opportunities in the market, and the optimization process is carried out using the Polynomial Goal Programming (PGP) method. In the application phase, a three-dimensional analysis surface showing the balance between return, risk, and asymmetric opportunities is first created based on 100 different production preference scenarios. Then, optimal electricity generation portfolios are created on an hourly basis according to eight different strategic preference scenarios determined within the MVS-PGP framework. Based on the results of these optimal generation portfolios, it was concluded that electricity generation in the evening hours is indispensable for portfolio stability. On the other hand, it was determined that electricity producers aiming to capture asymmetric profit opportunities should shift their electricity production to midday hours when solar energy is abundant. Finally, these eight strategic portfolios were analyzed based on financial performance metrics. As a result of this empirical evaluation, it was observed that the MVS model produces financially superior and more efficient results compared to the traditional MV model.
This paper aims to evaluate the factors that influence the future price of live cattle in the Brazilian market. To this end, we employ an autoregressive distributed lag (ARDL) approach because of its ability to handle variables with different orders of integration. Additionally, the ARDL model enables the distinction between short-term and long-term effects. We use the international price of live cattle, macroeconomic variables (e.g., exchange and interest rates), and the price of inputs (e.g., corn and wheat) as potential explanatory variables. Our findings indicate that the international price of live cattle does not significantly impact the formation of the domestic price in the Brazilian market. Conversely, the dynamics between domestic supply, represented by slaughter cattle, and domestic demand, represented by the economic activity index, are key drivers of the future price of live cattle in Brazil.
Millions of Americans carry student loan debt without ever earning a degree. This group faces a compounding disadvantage: the financial obligations of a college education without the income premium that credential attainment typically brings. We ask whether that disadvantage extends to housing, specifically whether student loan borrowers who did not complete a degree are more likely to fall behind on rent, and whether that risk differs by race. Using data from the 2023 Survey of Household Economics and Decisionmaking (SHED), we estimate probit regression models on a sample of 2,896 borrowers with current or past student loan obligations, and separately on a subsample of 2,227 who had fully repaid their loans. In the full sample, non-completion is not significantly associated with rent delinquency overall, but the picture changes sharply when we look by race. Among Black borrowers, failure to complete a degree raises the probability of falling behind on rent by a meaningful margin (b = 0.712, p < .05), and the effect is even larger among Hispanic borrowers (b = 0.954, p < .05). Both effects largely disappear once student loans are repaid, suggesting that the monthly debt burden is a key driver of housing vulnerability for these groups. Increased borrowing, subjective financial condition, household income, and the presence of children are consistent predictors of delinquency across both samples. These results point to the importance of race-conscious policy responses, since interventions designed for the average borrower are unlikely to reach those who need help most.
This paper examines the relationship between fiscal rules, green public investment, and public debt sustainability in European countries over the period from 2000 to 2023, using a dynamic panel framework estimated with System GMM. The analysis introduces an interaction term between fiscal rules and green investment to assess whether institutional quality conditions the fiscal impact of climate-related spending. The results reveal strong persistence in public debt dynamics, with a coefficient on lagged debt of approximately 0.85, indicating that past debt levels are a key determinant of current fiscal outcomes. Green public investment is found to have a positive and statistically significant effect on public debt in the short run, with a coefficient of 0.60–0.75, implying that a one percentage point increase in green investment raises public debt by up to 0.75 percentage points. This finding provides support for the short-run hypothesis that climate-related investment increases borrowing needs. However, the interaction between fiscal rules and green investment is negative and statistically significant, with an estimated coefficient of -0.28. This indicates that stronger fiscal frameworks reduce the debt impact of green investment. The marginal effects analysis reveals a clear threshold: when the fiscal rules index is low (FR = 1), the effect of green investment on debt is strongly positive (+0.47), while at higher levels of fiscal rule strength (FR = 5), the effect becomes negative (-0.65). This implies a total shift of approximately 1.12 percentage points in the marginal effect across institutional regimes. These results suggest that the fiscal impact of green investment is conditional on institutional quality. While climate-related spending increases debt in countries with weak fiscal frameworks, it becomes neutral or even debt-reducing in countries with strong and credible fiscal rules. The findings therefore provide strong support for the hypothesis that well-designed fiscal frameworks can reconcile fiscal discipline with green investment. Overall, the paper contributes to the literature by integrating climate-related fiscal policy into standard models of debt sustainability and by demonstrating the critical role of fiscal institutions in shaping the effectiveness of green investment. The results have important policy implications, highlighting the need for fiscal rule reforms that combine credibility with flexibility to support the green transition without compromising fiscal stability.
This study examines financial practices that make the Liberian government dependent on foreign assistance, international debts, and concession agreements to support its operation and public projects. It analyzes survey and economic data collected by The World Bank Group, Macrotrends Global Metrics, Afrobarometer Survey Data, ARREST Agenda for Inclusive Development, and U.S. Foreign Assistance statistics, correlating associations between variables including outstanding debts, foreign investment inflow, United States’ aid dollars, and personal remittances received to show the economic disadvantage of this policy approach. The result reveals that perpetually receiving international community financial assistance causes dependency, which is unlikely to enhance productive capability, develop domestic firms, create permanent employment, and improve citizens’ standards of living. Only an industrial policy managed by an independent government will create an economic structure that Liberia needs to prosper.
This study examines the dynamics of deposit beta in the U.S. banking sector across multiple monetary policy cycles from 2009 to 2024. Deposit beta which is denoted as the sensitivity of deposit rates to benchmark interest rates, plays an essential role in bank funding strategy, asset and liability management (ALM), and interest rate risk transmission. The study evaluates both short-run and long-run determinants of deposit pricing behavior while accounting for asymmetric responses to tightening and easing cycles. By using a time-series framework combining rolling regressions and autoregressive distributed lag (ARDL) modeling. The findings indicate that deposit beta is primarily driven by monetary policy variables, particularly the federal funds rate, SOFR, and long-term Treasury yields, rather than by internal liquidity measures or deposit volumes. Evidence of asymmetric pass-through shows stronger responsiveness during tightening cycles and muted adjustment during easing periods. Empirically, these results underscore the importance of interest rate environments in shaping bank funding behavior and highlight nonlinearities relevant to risk management and regulatory oversight. This study contributes to contemporary empirical insight into deposit pricing dynamics and offers practical implications for banking strategy and financial stability assessment.
This paper investigates the determinants of fertility in Honduras, using data from the period 1991-2022. Equations are estimated to identify the role of variables from the real, monetary, and labor sectors on fertility. The results show that fertility is mainly determined by female unemployment rates, salaried employment rates, and self-employment rates, with investment and exports also playing a role. A result of particular interest is the role of the economic dynamism of other Central American countries on Honduran fertility, which highlights the existence of a regional fertility “network”.
Emerging Economies, including Egypt, strive to increase domestic capital formation to achieve sustainable economic growth, create jobs, and achieve comprehensive development. This is accomplished by stimulating domestic savings and investment and encouraging foreign direct investment as a means of attracting new physical capital, in addition to several intangible assets such as technological capabilities, managerial skills, brands, international product marketing channels, and product design. This study examined the long-term relationship between net flows foreign direct investment and gross fixed capital formation of the private sector in Egypt during the period 1960-2024, a significant long-term relationship is evident between the dependent variable, gross fixed capital formation of the private sector in Egypt during the period under study (1960-2024), and all explanatory variables FDI, nominal exchange rate, gross domestic savings, real interest rate, Domestic credit to private sector, General government final consumption expenditure, and Claims on central government. Using EViews 12’s vector error correction (VEC), the analysis discovered a significant long-term inverse relationship between net foreign direct investment (FDI) flows and gross fixed capital formation of the private sector in Egypt during the study period. were, a 10% increase in net FDI flows resulted in a 7.2% decrease in gross fixed capital formation of the private sector in Egypt. The study also found a significant inverse relationship in the long run between the explanatory variables the nominal exchange rate, the real interest rate, and total government final consumption expenditure and the dependent variable, gross fixed capital formation in the private sector in Egypt during the study period. A 10% increase in the nominal exchange rate (currency depreciation) resulted in a 4.9% decrease in gross fixed capital formation in the private sector in Egypt, highlighting the importance of currency value stability (the Egyptian pound) for increasing private sector gross fixed capital formation in Egypt. Similarly, a 10% increase in the real interest rate led to a 7.4% decrease in private sector gross fixed capital formation in Egypt, and a 10% increase in government final consumption expenditure resulted in a 13.8 % decrease in private sector gross fixed capital formation in Egypt. Also, the study found a significant long-term positive relationship between the explanatory variables of gross domestic savings, Domestic credit to private sector, Domestic credit to private sector, and gross fixed capital formation of the private sector in Egypt during the period under study. An increase in gross domestic savings of 10% results in an increase in gross fixed capital formation of the private sector in Egypt of 0.3%. As for Domestic credit to private sector and Claims on central government, an increase of 10% leads to an increase of gross fixed capital formation of the private sector in Egypt 4.1% and 0.3%, respectively. Based on the preceding findings, the study recommends the following: First, focusing on attracting foreign direct investment (FDI) flows necessary for development, which complement, rather than displace, the private sector’s role in increasing gross fixed capital formation. Second, working to stabilize the Egyptian pound’s exchange rate, which improves expectations and encourages the private sector to engage in long-term projects that will increase gross fixed capital formation. Third, encouraging gross domestic savings while increasing credit extended to the private sector and attempting to reduce real interest rates, thereby increasing the private sector’s access to necessary capital at a reasonable cost.
Purpose This study examined the effect of interest rates on sectoral return volatility at the Nairobi Securities Exchange (NSE). Existing studies in Kenya have largely relied on aggregate market indices, which mask sector-specific volatility dynamics and differences in sectoral responses to macroeconomic conditions. Design/methodology/approach The study was guided by Fisher Effect Theory and adopted a positivist philosophy and causal research design. The analysis covered 10 sectors and 47 firms listed at the Nairobi Securities Exchange using monthly data from 2011 to 2024. Sectoral return volatility was estimated using the Generalised Autoregressive Conditional Heteroskedasticity model. Findings The findings showed that interest rates have statistically significant, heterogeneous effects on sectoral return volatility. Interest rates significantly influenced volatility across five sectors, indicating that sectoral responses to monetary conditions differ across sectors. Research limitations/implications The study focused on sectoral return volatility at the NSE, using the GARCH-X model, and provides a basis for future studies employing asymmetric and regime-switching volatility models. Practical implications The findings support institutionalised monitoring of sectoral volatility and the development of sector-specific indices to strengthen market surveillance and investment decision-making. Originality/value The study extends existing literature by providing sector-level evidence on the relationship between interest rates and return volatility at the NSE.
This study constructed indices of industrial robot application at the enterprise-industry-year level by matching industry-level industrial robot data published by the IFR with microdata from Chinese A-share listed companies. Additionally, using the CSMAR database, it developed an index system for manufacturing value chain resilience(MVCR) based on three dimensions: Readiness, response, and recovery. This study empirically assessed the impact of industrial robot use on MVCR. The results confirmed that industrial robot application positively impacts MVCR. The influence is particularly significant in privately owned businesses, downstream segments of the value chain, and low-tech industries. Industrial robots can have a significant impact on MVCR by reducing costs, fostering innovation, and enhancing productivity. Furthermore, information asymmetry positively influences industrial robot use, which consequently impacts MVCR. This study elucidated the underlying mechanism by which industrial robots drive MVCR, providing empirical insights for forging MVCR in the digital economy.
This paper aims to review and synthesize the existing literature on women’s participation in the auditing profession and its implications for the profession and its practices. Although the number of female auditors has increased, many studies show that women face several challenges in their career paths. Using a systematic review method and the PRISMA 2020 framework, this study selected 54 empirical papers from Scopus published between 2008 and 2025. The results show four main themes in the literature: (1) Audit Quality, Earnings Management, and Earnings Quality, (2) Women and Audit Reports, (3) Gender Diversity and Audit Fees, and (4) Gendered Barriers, Stereotypes, and Organizational Culture. These themes will provide a foundation to understand both the contributions and the challenges of women’s participation in the audit profession. This review concludes that women’s involvement in auditing has a meaningful effect on audit quality, ethics, and governance, but the profession still suffers from structural inequalities that need to be addressed. The study also outlines research gaps and suggests future directions for scholars to better understand how gender diversity can shape the auditing profession in different contexts.
Despite Kenya’s economic growth averaging 5 percent between 2010 and 2021, significant challenges remain. Women have not benefited fully from this process of economic growth and development. Poverty is still high among women. It is revealed that in 2021 about 53 percent women in Kenya are experiencing extreme poverty compared to 47 percent men. A report on women’s economic empowerment points out that, although women make up more than half of Kenya’s population, they still face high levels of unemployment and underdevelopment. Several studies have shown that access to finance promotes women’s economic empowerment. The ability to access financial services has been associated with decreasing poverty among women, as it allows them to obtain assets, improve asset security, and mitigate the effects of income fluctuations. However, there is a dearth of research on this subject tailored to the Kenyan context. Therefore, this study seeks to investigate the effect of financial inclusion on the economic empowerment of women. The study adopts a mixed methods approach using household-level data drawn from FinAccess 2024 survey and Kenya Integrated Household Budget Survey. The results show that an increase in financial inclusion by one unit leads to increase in women’s economic empowerment by 0.025 units holding other factors constant. Based on the empirical findings, this study proposes that policymakers should deepen gender responsive financial inclusion strategies. While Kenya has made notable progress in digital financial services expansion, targeted policies are necessary to ensure that women not only access accounts but actively use them for productive purposes. Financial institutions should design low-cost, flexible transaction accounts tailored to women in informal and rural sectors.
