Asian Economic and Financial Review

Analysis of the impact of the COVID-19 pandemic on financial reporting and financial performance (Case of Jordan)

Omar Fareed Shaqqour — 2025-07-25

The research aims to analyze the impact of the COVID-19 pandemic (CP) on financial reports and financial performance (FP). The analytical approach was followed through a study model that shows the independent variable (CP) and the dependent variable (FP). To achieve the study's objectives, three indicators were used to measure the dependent variable (FP): the return on assets rate (ROA), the financial leverage ratio, and the company growth rate. The independent variable (CP) was measured by comparing the FP of companies listed on the Amman Stock Exchange (ASE) before and during the CP. The study was conducted on companies listed on ASE for the year 2021, for which the data required to implement this study is available, represented in the financial statements of companies listed on ASE during the period 2019-2020, with a total of 149 companies. The results indicated that the CP impacted ROA, leverage ratio, and growth rate in the services sector, while no impact was observed in the industrial and financial sectors of ASE. The study also showed that the impact of CP on ROA varied according to the company sector.

The role of management’s perceived usefulness of accounting information in enhancing accounting information quality: The mediating effects of accounting information system quality and accounting staff competence

Hoang-Long Phan — 2025-07-28

This study investigates how management's perceived usefulness of accounting information influences the quality of accounting information, with a particular focus on the mediating roles of accounting information processing system quality and accounting staff competence. Data were collected through a structured survey of 212 firm executives and accounting managers in Vietnam. The study employed exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) to validate the measurement model and test the hypothesized relationships. The results confirm that management’s perception of the usefulness of accounting information directly enhances the quality of accounting information. It also indirectly improves accounting information quality by enhancing the accounting information system and the competence of accounting staff. These mediators account for 54.2% of the total effect, highlighting their critical roles in translating management’s perception into tangible improvements in accounting information quality. Our findings provide practical insights for policymakers and business leaders, especially in developing economies where integrating accounting information systems and developing accounting personnel remain challenging.

Threshold effects of institutional quality on economic growth in China’s leading provinces

Yanyan Fu — 2025-07-28

This study investigates how institutional quality influences the linkage between economic growth and factor inputs specifically physical capital, labor, human capital, and R&D within China’s leading provinces. Drawing on annual panel data from 1996 to 2022 for Guangdong, Jiangsu, Shandong, Zhejiang, Henan, and Sichuan, a panel threshold modeling approach is employed to identify non-linear effects of institutional quality on the relationship between factor inputs and growth. A robustness check is conducted to validate the findings. The empirical results suggest that economic growth benefits from factor inputs only when institutional quality surpasses a critical threshold. This study provides empirical evidence that institutional quality mediates the effectiveness of factor inputs in driving economic growth. While physical capital, labor, and human capital remain influential across different institutional settings, R&D contributes significantly only above a certain institutional threshold. Policymakers should prioritize strengthening institutional frameworks to optimize the productivity of investments in physical capital, labor, human capital, and R&D.

Non-performing loans in the MENA region: How green growth mitigates the impact of climate risk

Mohamed Ali Khemiri — 2025-07-28

The objective of this study is threefold. First, it examines the impact of climate risk (CRI) on credit risk, as measured by the ratio of non-performing loans (NPLs). Second, it investigates the effect of green growth (GGI) on NPLs. Third, it assesses whether GGI moderates the relationship between climate risk and NPLs. To achieve these objectives, the study utilizes a panel dataset of 40 traditional banks from Middle East and North Africa (MENA) countries, covering the years 2010 to 2022. The estimation employs the System Generalized Method of Moments (SGMM) estimator to address endogeneity and dynamic panel bias. Empirical results indicate that climate risk significantly increases the NPL ratio, leading to deterioration in credit quality under environmental stress. Conversely, green growth has a mitigating effect, significantly reducing credit risk among MENA banks. Additionally, the interaction between green growth and climate risk is negatively related to NPLs, suggesting that green growth can effectively shield bank credit portfolios from the adverse effects of climate risk. These findings have important implications for policymakers and financial institutions in the MENA region. Strengthening green growth policies can serve as a valuable tool to enhance banking sector resilience and promote sustainable financial development.

Factors affecting capital structure of listed joint-stock commercial banks on the Vietnamese stock market

Thi Hoai Thu Ho — 2025-07-29

The study analyzes the factors affecting the capital structure of commercial banks listed on the Vietnamese stock market from 2014 to 2024. Using a panel data set collected from 15 leading banks, the study conducts regression analysis to test the impact of internal financial factors such as bank size, solvency, profitability, profit after tax, and bank age on the ratio of total liabilities to assets (TLEV), which is used as a proxy for capital structure. These banks are among those with the largest total assets in the banking system. After data collection and processing, the research sample consists of 165 observations. Using Stata software for quantitative analysis, a regression model was constructed to determine the relationship and the extent of impact of internal factors on the capital structure of listed joint-stock commercial banks. The empirical results show that liquidity and profitability have a negative and statistically significant impact on TLEV, implying that banks with high operational efficiency and sound liquidity tend to utilize less debt. This aligns with the view that businesses prefer internal funding sources due to lower costs and reduced control risks. The study also indicates that banks with larger size and a higher proportion of fixed assets tend to have higher levels of financial leverage.

A study on e-government services and citizen satisfaction during the COVID-19 pandemic period in Turkey

Furkan Oguzhan Polat — 2025-07-30

In recent years, there has been significant interest in e-government applications, which have become an integral part of daily life, particularly regarding ease of use. This study investigates the factors influencing individuals’ satisfaction with e-government services in Turkey during the COVID-19 pandemic. The research utilized microdata obtained from the Life Satisfaction Survey conducted by the Turkish Statistical Institute in 2020. Ordered logistic regression analysis was employed to identify the factors affecting individuals’ satisfaction with e-government services. The results indicate that sociodemographic and economic variables significantly influence satisfaction levels. Age, education, gender, employment status, and income were determinants of citizens’ satisfaction. Women exhibited a higher level of satisfaction with electronic government services compared to men. The importance of public services became more evident during the COVID-19 pandemic, and integrating the e-government concept into all public institutions has enhanced the capacity to respond swiftly to citizens’ needs. This study offers valuable insights into the determinants of e-government satisfaction during the pandemic. Given the limited research on this topic, future studies from different perspectives will contribute significantly to the literature.

Renewable energy policy, renewable energy consumption and economic growth: The moderating role of governance quality

Le Quang Canh — 2025-08-22

Transitioning to clean and affordable renewable energy consumption is one of the Sustainable Development Goals (SDGs) set by the United Nations (UN) in 2015. However, the evidence regarding the effectiveness of implementing renewable energy policies is mixed across countries. The purpose of this study is to explore how governance quality can explain cross-country heterogeneities and moderate the associations between renewable energy policies, renewable energy consumption, and economic growth. The study adopts a quantitative research design and the method of panel regression analysis based on the Two-step System Generalized Method of Moments. The research examines a sample of 140 countries, which constitute more than 70% of the total population of countries, during the period from 2010 to 2021. The period is determined by data availability. The results reveal a significant positive effect of renewable energy consumption and renewable energy policies on Gross Domestic Product (GDP). Furthermore, the findings confirm the positive moderating effect of governance quality on the relationship between renewable energy policies and economic growth. This study contributes both theoretically and managerially to the exogenous growth model by highlighting the importance of renewable energy policies and governance quality in fostering economic growth.

FDI inflows and economic growth in north African countries: Do institutional quality and financial development matter?

Abdelkarim Yahyaoui — 2025-09-03

Our study enhances the existing literature regarding the relationship between foreign direct investment (FDI) and economic growth. Our objective is to identify the main transmission mechanisms through which FDI flows can stimulate economic growth in North African countries. An analysis of four North African countries (Tunisia, Algeria, Morocco, and Egypt) from 2000 to 2022 clearly shows that FDI flows are positively related to economic growth, and this relationship improves when these countries have strong institutions and a better financial system. We obtained the results using the Generalized Method of Moments Estimation (System GMM). Our main findings indicate that the quality of institutions and a well-developed financial system are key factors in attracting foreign direct investment (FDI). Therefore, the successful implementation of the rule of law attracts foreign investment, promoting economic growth. Elevated levels of corruption diminish the beneficial impact of FDI on economic growth in these nations. To attract foreign investment, these countries need a robust system with low corruption, a functioning legal system, and fewer bureaucratic obstacles. The results of this study have significant implications for policymakers. Our study provides recommendations for policymakers in North African nations based on the obtained results.

The influence of green product and green process innovation on financial performance and the role of sustainable business strategy as a mediator

Putu Indah Hapsari — 2025-09-03

This study examines the impact of green product and green process innovation on the financial performance of export-oriented SMEs in Bali Province, with sustainable business strategy as a mediating variable. Grounded in the Resource-Based View (RBV) paradigm, the research emphasizes the role of distinctive resources in achieving a competitive advantage. A quantitative approach was employed, involving a survey of 452 export-oriented SME actors in Bali. Data were analyzed using Partial Least Squares-Structural Equation Modeling to explore the relationships between green innovation, sustainable business strategy, and financial performance. The results indicate that both green product innovation and green process innovation significantly and positively influence export financial performance. Furthermore, sustainable business strategy mediates the relationship between green innovation (both product and process) and financial performance. These findings highlight the importance of integrating sustainable practices to amplify the financial benefits of green innovation. The study provides actionable insights for SME actors and policymakers, suggesting that adopting sustainable business strategies can enhance competitiveness in the global market. Recommendations include fostering green innovation and embedding sustainability into core business strategies to improve financial outcomes. This research contributes to the theoretical framework by integrating green innovation and sustainable strategy concepts within the context of export-oriented SMEs.

Determinants of firms’ access to finance through fintech: An empirical study of startup firms in Vietnam

Ngoc Anh Pham — 2025-09-03

This study examines the determinants influencing Vietnamese startup firms' access to finance through Fintech platforms. Drawing on survey data and employing the Heckman two-stage estimation procedure, this research investigates how internal firm characteristics, such as R&D investment intensity, capital sources, industry classification, and revenue growth, affect the likelihood of securing Fintech-based funding. The results reveal that firms with prior capital access, high R&D-to-revenue ratios, and recent capital-raising activity are more inclined to access Fintech finance. Conversely, startups that rely predominantly on government support or external equity tend to have lower engagement with Fintech solutions. Moreover, sectoral variation exists, with specific industries displaying greater compatibility with Fintech models due to differing capital needs and innovation profiles. The study contributes to the growing literature on entrepreneurial finance and Fintech by providing empirical evidence from an emerging market context. It also offers policy implications to enhance financial inclusion and support innovation, emphasizing the need for legal frameworks to foster Fintech development, targeted support for R&D-driven startups, and stronger collaboration between Fintechs and traditional financial institutions. By identifying key enablers and constraints of Fintech adoption, this research provides practical insights for startups, policymakers, and investors seeking to navigate Vietnam’s evolving financial landscape.