The relationship between corporate sustainability performance and firm valuation has attracted considerable scholarly and practical attention; however, empirical evidence remains inconclusive, particularly within environmentally sensitive and carbon-intensive industries. This study examines the association between corporate sustainability performance and firm valuation in the global oil and gas (O&G) sector and further investigates whether external sustainability assurance moderates this relationship. Grounded in Stakeholder Theory and Legitimacy Theory, an empirical analysis was conducted using a sample of 100 publicly listed O&G companies across multiple jurisdictions during the 2022–2023 period. Corporate sustainability performance was measured using Environmental, Social, and Governance (ESG) scores, while firm valuation was employed as the primary indicator of financial outcomes. In addition, the presence of independent third-party sustainability assurance was incorporated as a moderating variable to assess whether externally verified sustainability disclosures enhance the credibility and economic relevance of sustainability initiatives. The findings indicate that corporate sustainability performance is not significantly associated with firm valuation within the O&G industry. Furthermore, no significant moderating effect of external sustainability assurance was identified. These results suggest that sustainability-related activities and disclosures may not yet be perceived by investors as value-enhancing mechanisms in carbon-intensive sectors. It is also possible that stakeholders regard such initiatives as symbolic responses to legitimacy pressures rather than as substantive drivers of long-term economic performance. The findings challenge the widely accepted assumption that superior sustainability performance necessarily translates into improved market valuation and financial benefits. By providing evidence from a sector characterised by substantial environmental exposure, regulatory scrutiny, and stakeholder pressure, this study contributes to the growing literature on the economic consequences of corporate sustainability. The results further underscore the importance of developing industry-specific sustainability frameworks and assurance practices capable of strengthening stakeholder confidence and improving the integration of sustainability considerations into corporate value creation processes.
This study examined the challenges faced by internal auditors in adopting AI for the internal audit functions of the public universities in Ghana. The study used a qualitative research design that involved semi-structured interviews with six audit professionals from six prominent public universities; it was guided by the Technology-Organization-Environment (TOE) and Diffusion of Innovation (DOI) theory. The study employed NVivo 14 software to analyses data thematically. The findings revealed four critical themes influencing AI adoption: technological readiness, organizational culture, capacity and competency gaps, and regulatory and ethical ambiguities. The most significant obstacles were identified as technological constraints, such as outmoded infrastructure and inadequate data systems. Furthermore, innovation was impeded by bureaucratic leadership structures and inadequate management commitment. The adoption of AI was further restricted by the ambiguities surrounding its ethical and regulatory use, as well as skill deficiencies. The study underscored the need for leadership commitment and governance innovation to realize the full potential of AI in public audit transformation. It contributes to the literature by contextualizing the challenges of AI adoption in the higher education sector of a developing economy, specifically Ghana, to offer theoretical insights into the intersection of digital readiness and institutional culture. For policymakers, it also provides practical recommendations such as targeted capacity building, infrastructure enhancement, and policy reforms to support AI-driven auditing.
Advanced and developing countries are strengthening budgetary regulation to reduce economic vulnerabilities and control budget deficits and public debt. Additionally, public institutions are required to maintain financial sustainability and pursue good economic governance. This study evaluated isomorphic factors influencing Supreme Audit Institutions (SAIs) in developing countries to effectively drive government policies, including public finance sustainability. Using phenomenological qualitative methodology, the study conducted online exploratory focus groups with selected African SAIs. Three focus group discussions and validated interviews were employed. The research applied institutional theory to reveal how isomorphic pressures impact SAIs in developing countries. Key isomorphic factors identified by participants from the selected African countries include legislative requirements, outdated legal mandates, lack of independence, financial viability, effective audit recommendations, professional competency, and capacity constraints. Analysis revealed that the legislative mandate policy framework significantly impacts SAI effectiveness and public finance sustainability. The findings provide practical insights for governments and lawmakers to create institutional environments featuring regulatory mandates, SAI financial independence, and professional capacity for effective public sector audits and reporting. This exploratory study offers new theoretical and methodological perspectives on SAIs and public finance sustainability, providing opportunities for future research. It establishes a foundation for independently testing each identified factor regarding public sector audit efficacy.
This study investigates the impact of financial soundness on the profitability of listed commercial banks in Nigeria, with a focus on the determinants of return on assets (ROA). Specifically, the influence of capital adequacy ratio (CAR), operational efficiency (OPE), and non-performing loan ratio (NPLR) on bank profitability was assessed. Additionally, the moderating effect of OPE on the relationship between capital adequacy and ROA was examined. An ex-post facto research design was adopted, utilising secondary data spanning a ten-year period from 2014 to 2023. Data were extracted from the annual reports of the sampled banks and subjected to rigorous descriptive and inferential analyses. Measures of central tendency and dispersion were employed to summarise the data, while hypotheses were tested using ordinary least squares (OLS) regression analysis. The results indicate that CAR exerts a significant positive effect on ROA, suggesting that banks with robust capital buffers are better positioned to absorb financial shocks and sustain income-generating activities. Conversely, OPE was found to have a significant negative effect on ROA, implying that efficiency gains may not automatically translate into higher profitability in the context of Nigerian commercial banks. Similarly, the NPLR exhibited a significant negative relationship with ROA, highlighting the detrimental effect of asset quality deterioration on profitability. The interaction between capital adequacy and OPE was also observed to negatively affect ROA, indicating that excessive OPE without commensurate capital support may undermine profitability. These findings underscore the necessity of a balanced approach to financial soundness, where adequate capitalisation is maintained alongside prudent operational management. It is therefore recommended that management of Nigerian commercial banks maintain capital levels above regulatory minima to reinforce resilience and income-generating capacity, while strategically enhancing OPE to optimise profitability. The study contributes to the literature by providing empirical evidence on the complex interplay between financial soundness indicators and bank profitability, offering actionable insights for policymakers, regulators, and banking executives seeking to strengthen the stability and performance of the sector.
An integrated framework for combining normal costing with activity-based costing (ABC) is developed and demonstrated to address persistent limitations in conventional cost accounting practices. Although normal costing remains widely adopted due to its operational simplicity and alignment with financial reporting, its reliance on broad overhead allocation bases has been shown to impair cost accuracy in complex production environments. Conversely, ABC offers superior causal attribution of indirect costs but is often perceived as difficult to integrate into routine costing systems. To reconcile these approaches, a structured integration methodology is proposed and illustrated through an applied case based on the machining department of an automobile parts manufacturer. Using a controlled hypothetical dataset to ensure analytical transparency, unit product costs are first determined under the traditional costing system using both full costing and normal costing approaches. Subsequently, the same cost structures are recalculated within an ABC framework, again under both full costing and normal costing assumptions, allowing systematic comparison across costing logics. The results demonstrate that integrating ABC with normal costing enhances cost precision without sacrificing the operational advantages of normal costing, particularly in departments characterized by high overhead intensity and activity heterogeneity. It is further shown that the integrated approach mitigates cost distortion arising from volume-based allocation while preserving consistency with standard cost-setting practices. From a methodological perspective, the study advances existing literature by explicitly operationalizing the coexistence of ABC and normal costing rather than treating them as mutually exclusive systems. Practical implications are highlighted for manufacturing enterprises seeking incremental adoption of ABC principles within established accounting infrastructures. In addition, the necessity of enterprise resource planning (ERP) systems is emphasized, as reliable integration depends on high-resolution activity data and automated cost tracing capabilities. The proposed framework and application procedure are expected to provide accounting practitioners and researchers with a replicable pathway for implementing integrated costing systems that balance analytical accuracy with managerial feasibility.
Islamic finance, grounded in Shariah principles derived from the Al-Quran and Sunnah, promotes risk sharing, ethical conduct, and financial stability, thereby shaping economic outcomes in countries where Islamic financial institutions are systemically important. Among the various components of Islamic finance, Islamic banking constitutes the dominant segment and plays a central role in channeling capital across borders. Given the increasing globalization of Islamic financial markets, the relationship between Islamic financial development and foreign direct investment (FDI) outflows warrants rigorous empirical examination. This study investigates the impact of Islamic banks and key Islamic financial instruments—namely Sukuk and Takaful—on foreign direct investment outflows (FDI-Out) in leading Islamic finance economies, including Oman, the United Arab Emirates, Qatar, Nigeria, Malaysia, Indonesia, Saudi Arabia, Bahrain, and Kuwait. Balanced panel data are analyzed using the ordinary least squares estimation technique implemented in Stata 18, with Islamic banks’ profitability incorporated as both an explanatory and moderating variable. The empirical findings reveal three robust results. First, a statistically significant negative association is observed between Islamic banks’ profitability and FDI-Out, suggesting that higher domestic profitability may incentivize capital retention rather than outward investment. Second, Sukuk issuance is found to exert a direct negative effect on FDI-Out, whereas Takaful penetration exhibits a positive relationship, indicating heterogeneous effects across Islamic financial instruments. Third, when Islamic banks’ profitability is introduced as a moderating factor, Sukuk demonstrates a positive and significant impact on FDI-Out, implying that profitable Islamic banking systems enhance the outward investment channel of Sukuk markets. These findings highlight the complementary roles of Islamic banking performance and capital market instruments in shaping cross-border investment behavior. Overall, the results suggest that a well-integrated Islamic financial system can influence the direction and scale of international capital flows, with important implications for policymakers seeking to balance domestic investment, financial stability, and outward economic expansion in Shariah-compliant financial environments.
This study aims (i) to assess the prevalence of Earnings Management among non-financial Maltese Listed Entities; (ii) to explore the underlying motivations and drivers that give rise to such practices; and (iii) to investigate the methods and techniques currently employed by the auditee or auditor to prevent or detect Earnings Management within Maltese Listed Entities. A sequential two-phase explanatory mixed-methods approach was employed: first, the accrual-based model was applied to assess the presence of Earnings Management, followed by 20 semi-structured interviews with Audit Partners and Chief Financial Officers. While Earnings Management sector-specific behaviours were observed, no statistically significant differences in the distribution of Earnings Management across sectors were found, suggesting overall consistency. Despite its presence, Earnings Management remains ambiguous, with diverse interpretations creating opportunities for exploitation. The principles-based nature of IFRS facilitates Earnings Management, allowing subjective judgment to serve managerial interests. Motivations for the practice include company-level capital pressures and contractual obligations, with auditors seen as key deterrents owing to their commitment to professional standards. While current preventative measures are effective, the study calls for stronger scrutiny of management and auditors. It also highlights opportunities for local regulatory bodies to enhance consistency and depth in their approach to addressing complex Earnings Management techniques. Lastly, External Auditors face challenges such as quality gaps between Big 4 and non-Big 4 firms, and client resistance during efforts to detect Earnings Management. The study has sought to understand the Earnings Management phenomenon within the Maltese context, given its negative implications on Financial Reporting.
This study investigated the impact of financial inclusion, driven by digital financial platforms, on economic growth in Ghana between 2000 and 2023. Using secondary data from the World Development Indicators, the analysis applied Nonlinear Autoregressive Distributed Lag (NARDL) and Quantile ARDL (QARDL) models to capture both asymmetric and distributional dynamics. Existing literature affirmed the positive role of financial inclusion in development, but it often assumed linear and homogeneous effects and overlooked potential asymmetries. Despite global advances, financial exclusion remains acute in sub-Saharan Africa, where weak infrastructure, institutional inefficiencies, and structural barriers constrain access to finance. The results revealed that improvements in financial inclusion significantly enhanced economic growth by expanding savings, credit access, and productive investments, while reductions in inclusion undermined growth by restricting capital mobilisation and weakening financial intermediation. These findings highlighted the dual role of financial inclusion as both a growth enabler and a potential constraint when exclusion persists. Policy recommendations include expanding digital financial infrastructure in rural and marginalised communities, strengthening regulatory frameworks to enhance consumer protection and trust, and broadening financial literacy programmes to ensure effective utilisation of financial services. By integrating nonlinear and quantile-specific estimations, this study contributes new evidence to the fragile yet transformative role of digital finance in the development trajectory of Ghana.
The incorporation of environmental, social and governance (ESG) activities into business strategies has become a predominant way to maintain business sustainability. The impact of ESG adoption on financial reporting outcomes has been a subject of interest to authors in recent years. Nevertheless, studies that discussed and synthesized relevant theories and concepts in this domain are lacking in the literature to date. To fill this gap, this study adopted a narrative review approach to examining ESG and financial reporting outcomes (FROs), with an aim to identify and synthetize FROs that have been proposed and associated with a firm’s ESG activities. In addition, this paper commented on the state and development of knowledge in the field of ESG and FRO as well as the limitations of prior research. Although the incorporation of ESG activities into business strategies produces positive FRO outcomes such as enhanced accounting quality, improved performance of a firm, and decreased cost of equity capital and debts, inconsistent propositions still remain. The findings presented in this study are unresolved, leading to ongoing inquiry and the need for further research. The review has implications for investors and policymakers to consider whether ESG could be used as a tool to potentially improve the credibility of financial reports and the outcomes of a firm’s operational activities.
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