Environmental and social concerns related to sustainability can represent non-financial risks requiring effective risk management (Wong, 2014). In this context, risk committees may play a role in overseeing such risks and their related corporate disclosures. This study investigates how risk committees impact both risk and sustainability disclosure, aiming to understand how corporate governance enhances transparency and investor confidence. It also examines whether board size, independence, and institutional ownership moderate these relationships, influencing the effectiveness of risk committees in corporate reporting. Using a quantitative approach, this study analyzed 807 samples from Indonesia Stock Exchange (IDX) companies that published sustainability reports between 2019 and 2023. The results show that risk committees positively influence risk disclosure but do not significantly affect sustainability disclosure. Moderation analysis indicates that board size and independence weaken the effect on risk disclosure. Conversely, institutional ownership strengthens the impact on sustainability disclosure, but not on risk disclosure. These findings suggest risk committees are more effective for traditional risk reporting than for sustainability transparency. This study provides new insights by testing the effectiveness of risk committees in enhancing both types of disclosures. It offers practical insights for regulators, investors, and corporate leaders, underscoring the importance of risk committees in improving disclosure quality to foster transparency and trust.
Building on research linking personality to financial behavior and market participation (Brown & Taylor, 2014; Conlin et al., 2015), this study examines whether personality traits influence simulated trading performance and whether this influence operates through trading intensity. The analysis is based on 133 second-year undergraduate students in Management Sciences who participated in a 4-hour stock market simulation involving CAC 40 stocks, real-time execution, transaction costs, and continuous ranking. The results show that the relationship between personality and performance is not uniform across the five OCEAN (openness, conscientiousness, extraversion, agreeableness, neuroticism) dimensions. Conscientiousness is the only trait associated with a statistically supported indirect pathway linking lower trading intensity to better performance. By contrast, openness is negatively associated with return, but not through the same channel. Our findings suggest that simulated trading performance is better understood through a behavioral mechanism linking personality, trading intensity, and return than through direct personality effects. This study contributes to the literature on investor behavior by showing that the effect of personality on trading performance is behaviorally differentiated and that, among novice investors, trading discipline constitutes a transmission channel between stable dispositions and simulated market outcomes.
This study examines the relationships among stress testing, credit risk, bank capital, and bank profitability in 13 Jordanian commercial banks over 2010–2020. Using a balanced panel and a two-step system GMM estimator, the analysis addresses endogeneity, reverse causality, unobserved heterogeneity, and dynamic persistence in profitability. The results indicate that credit risk has a significant negative effect on profitability, while bank capital has a positive effect. Stress testing is negatively associated with profitability in the short run, consistent with higher compliance costs and more conservative lending, but it strengthens banks’ resilience through improved risk management and capital planning. The study contributes evidence from an emerging banking system by jointly examining stress testing, credit risk, and bank capital in a dynamic framework. The findings suggest that regulators and bank managers should strengthen stress-testing practices, maintain adequate capital buffers, and enhance credit-risk management to support financial resilience and sustainable bank performance.
This study examines the effect of working capital management (WCM) on the profitability of Islamic banks in Jordan in the post-COVID-19 era (2021–2025). The study employs a quantitative explanatory research approach to empirically examine the effect of significant financial variables on return on equity (ROE). Also, the analysis focused on four financial factors, namely the debt ratio, size of the bank, working capital turnover, and liquidity ratio, using multiple linear regression analysis to determine their impact on ROE, a core indicator of profits available to shareholders and financial vigour. The findings indicate that bank size showed a statistically significant positive association with profitability, while working capital to total asset turnover and working capital to total asset ratio lacked a statistically significant influence on ROE. Both were found to have positive coefficients, yet their insignificance illustrates the limited applicability of short-term financial efficiency indicators in defining Shariah-compliant institutions’ profitability. From both policy-making and bank-management perspectives, the classical financial ratios should be considered, as well as the peculiarities of Islamic finance that affect banks’ performance.
Islamic banking and financing options (IBFOs) have emerged as a source of finance for micro, small, and medium-sized enterprises (MSMEs) that experience funding constraints (Bilal et al., 2020; Muneer et al., 2017). However, little information is available on the extent to which regulation drives the adoption decisions of IBFOs in Small Island Developing States (SIDS) such as Fiji. This study investigated the intervening position of regulation in the association between attitude and the adoptability of IBFOs among Fijian MSMEs. Guided by the theory of planned behavior (TPB) and institutional theory, a quantitative cross-sectional survey design was followed using systematic sampling procedures to gather data from 384 MSME owners and managers. Data were analysed using SPSS 27, AMOS 27, and Hayes (2018) PROCESS Model 4 with 5,000 bootstrap samples. Findings revealed that while attitude significantly influenced both regulation and adoptability of IBFOs, regulation completely mediated the association between attitude and adoptability. This suggests that a favourable attitude alone is not sufficient to promote adoption unless there is an enabling regulatory environment. The study contributes to the literature by bridging theoretical gaps in IBFO adoption while also providing practical insights for policymakers in Fiji.
