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.