Asian Economic and Financial Review

Continuous effect of fintech adoption on SME sustainable performance of SMEs: A moderating and mediating model based on multi-country comparison approach

2025-12-24T21:14:41-06:00

A scarce literature guides the examination of FinTech adoption on SMEs' sustainable performance via the mediation of green finance on green innovation, with the moderating effect of ESGTL and green innovation strategy. Data were collected from 250 SME managers and owners from Pakistan and Malaysia for comparative perspectives, and CB-SEM was applied for data analysis. Results revealed FA's significant effect on SMEs' SP in both countries. GF partially mediates the effect of FA on GI in Malaysia, whereas complete mediation prevails between the constructs in Pakistan. GI fully mediates the effect of GF and SP in both countries. Higher involvement in green innovation strategy moderates the increase in the changes to focus on green finance practices. The higher commitment to ESGTL increases the influence of green financing on green innovation applications in both countries. Lastly, ESGTL improves green innovation's role in attaining sustainable performance for Malaysian SMEs compared to Pakistan. Findings contribute to the enduring literature on fintech and the sustainable performance of SME firms from the perspective of growing economies. Furthermore, it confirms the importance of FA, GF, and GI in enhancing the SP of SME firms, and in due course, confirms the sustainable financial advancement of a country.

The impact of board of directors effectiveness on greenhouse gas disclosure: Evidence from Saudi Arabia

2025-12-24T21:54:06-06:00

This study investigates the impact of the board of directors’ effectiveness on greenhouse gas (GHG) disclosure among listed firms in Saudi Arabia, a resource-rich emerging economy transitioning towards sustainability under Vision 2030 and the 2060 net-zero pledge. Guided by stakeholder and legitimacy theories, board effectiveness was measured as a composite index comprising independence, size, gender diversity, and meeting frequency. Using a purposive sample of 150 high-impact firms across 750 firm-year observations (2020–2024), GHG disclosure was assessed through a novel, context-specific disclosure index developed via content analysis of publicly available reports, capturing both breadth and quality. The random-effects regression results indicate that board effectiveness (BOE) has a strong and positive effect on GHG disclosure (β = 0.0630, t = 8.82, p < 0.01), confirming that well-functioning boards drive climate transparency. This suggests that firms with more independent, diverse, and active boards are better positioned to oversee climate-related strategies, ensure the credibility of environmental reporting, and respond effectively to growing stakeholder and regulatory demands for sustainability accountability. The findings further underscore the pivotal role of robust governance in enhancing climate-related transparency, delivering actionable insights for policymakers crafting regulations, corporate executives shaping sustainable strategies, and researchers exploring governance impacts. The limitations include the study’s sector-specific focus, reliance on secondary disclosures, and temporal scope, suggesting future research avenues in cross-country comparisons, longitudinal analysis, and governance climate strategy integration.

Digital transformation and income gaps in Vietnam’s labor market

2025-12-29T04:37:51-06:00

This study examines the impact of digital transformation and personal characteristics on income disparities between formal and informal workers in Vietnam. Such disparities mainly arise from differences in benefits, qualifications, career opportunities, and access to digital technologies. Using data from the Labor Force Survey (LFS) together with the provincial ICT index, the study applies quantile regression and the Machado–Mata decomposition method. The results show that education, gender, and digital skills significantly influence income, while the effect of provincial ICT indicators remains limited, especially for informal workers. This indicates that Vietnam’s digital transformation has so far focused more on infrastructure, with less direct impact on business activities or job accessibility. In addition, the findings reveal that formal workers earn more at lower income levels, but at higher quantiles, informal workers perform better due to their flexibility and market adaptability. The novelty of this study lies in combining micro labor data with a provincial digital transformation index to analyze income gaps between the two labor sectors. It provides empirical evidence of the limited effectiveness of current digital transformation efforts and suggests several policy directions to improve skills, reduce inequality, and promote more inclusive digital development.