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The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time.

This paper assesses time variation in monetary policy rules by applying a time-varying parameter generalised methods of moments (TVP-GMM) framework.

Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada, Australia, New Zealand, Sweden) and five countries with alternative monetary regimes (the US, Japan, Denmark, the Euro Area, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more hawkish stance on inflation since the adoption of this regime and a greater response to both inflation and the output gap in most countries after the global financial crisis, which indicates a stronger reliance on monetary rules to stabilise the economy in recent years. It also appears that inflation targeting countries pay greater attention to the exchange rate pass-through channel when setting interest rates. Finally, monetary surprises do not seem to be an important determinant of the evolution over time of the Taylor rule parameters, which suggests a high degree of monetary policy transparency in the countries under examination.

It provides new evidence on changes over time in monetary policy rules.

The main purpose of this research is to examine the impact of institutional quality and sectoral employment on environmental degradation in developing countries. This paper also re-examined the validity of the Environmental Kuznets Curve (EKC) hypothesis and estimated the long run impact of explanatory variables on CO₂ emissions.

In this paper, the balanced panel data for the period 2002–2016 was used based on data availability and applied two-step SYS-GMM estimators.

The results showed that institutional quality such as government effectiveness (GE) and the rule of law (RL) reduce CO₂ emissions and promote environmental quality in developing countries. Interestingly, the authors found new evidence that employment in agriculture and industry has a positive impact on pollution, while employment in the service sector was negatively associated with CO₂ emissions, and the validity of the EKC hypothesis was confirmed. In addition, the research suggests that strong institutional frameworks and their effective implementation are the most important panacea and should be treated as a top priority to counteract environmental degradation and achieve the UN Sustainable Development Goals.

This is the first study to examine the short run and long run effects of institutional quality and sectoral employment on environmental degradation using the balanced panel data for a large sample of developing countries. This paper also used a special technique of Driscoll and Kraay standard error approach to confirm the robustness results and showed the different roles of sectoral employment on environmental quality.

Financial statement fraud has become a global concern, and auditors are increasingly focused on identifying and investigating it. Auditors may play a crucial role in investigating and reducing financial statement fraud, and this is particularly important in developing countries where fraudulent practices are more prevalent due to the lack of strict regulations and oversight. This study investigates whether enhanced audit quality has an impact on reducing financial statement fraud. The primary aim is to recognize whether a higher level of audit quality relates with a decrease in fraudulent activities in Indonesia, which is one such country that has not yet adopted IFRS.

This study investigates the effect of audit quality, as measured by audit tenure, audit fee, and audit size, on the dependent variable of financial statement fraud, as indicated by Dechow F-value. The sample for this study comprises 951 observations from 2015 to 2020, and the research design utilizes a panel data approach. To test the main hypothesis, OLS, and GMM estimation techniques are employed.

The analyses reveal a negative relationship between audit tenure and financial statement fraud. This suggests that shorter audit tenure may be associated with an increased risk of financial statement fraud. This heightened risk could stem from auditors having limited time to thoroughly understand the company's operations and internal controls, potentially making it more challenging to detect and prevent fraudulent activities perpetrated by the client. Conversely, a positive relationship is identified between audit fees and financial statement fraud, suggesting that companies paying higher fees may be engaging auditors less adept at detecting fraudulent activities. Furthermore, a negative relationship is observed between Big-5 and financial statement fraud, which may be due to the greater resources, expertise, quality control, scrutiny, reputation, and ethical conduct of Big-5 audit companies.

This study only focused on listed companies in Indonesia, therefore, caution should be exercised when generalizing the findings to other developing and Muslim countries such as Malaysia. The findings may differ due to the adoption of IFRS in Malaysia. As such, it is important for future studies to include Malaysia as a sample and compare the results with those of Indonesia. This comparison would demonstrate the impact of IFRS adoption on the relationship between audit quality and financial statement fraud and provide insights for policy makers in Indonesia.

The findings of this study have important implications for developing countries that have been shown to be more susceptible to fraud than developed countries. This study contributes to the existing research on the role of audit quality in reducing financial statement fraud and emphasizes the need for auditors and accountants to take a proactive approach in detecting and investigating financial fraud.

This study is a new study because it investigates the relationship between audit quality and financial statement fraud in Indonesia, a developing Muslim country that has not yet adopted International Financial Reporting Standards (IFRS). The study provides valuable evidence on the unique factors that influence fraud in Indonesia and fills a gap in the literature as previous studies on this topic have largely focused on developed countries. Additionally, the study recommends that policymakers in Indonesia consider implementing IFRS to improve the reliability of financial reporting and strengthen the effectiveness of the auditing process, thus reducing the incidence of fraud.

This study aims to investigate the synergies between the economic environment and the smart living dimension embedded in the current smart city initiatives, focusing on the localization of female entrepreneurship in contemporary cities. This interaction is under-investigated and controversial as it includes cities' practices enabling users and citizens to develop their potential and build their own lives, affecting entrepreneurial and economic outcomes. Building upon the perspective of the innovation ecosystems, this study focuses on the impact of smart living dimensions and R&D investments on the localization of female entrepreneurial activities.

The study uses a Generalized Method of Moments (GMM) and a panel dataset that considers 30 Italian smart city projects for 12 years to demonstrate the relationship between smart living practices in cities and the localization of female entrepreneurship. The complementary effect of public R&D investment is also included as a driver in the “smart” city transition.

The study found that the advancement of smart living practices in cities drives the localization of female entrepreneurship. The study highlights the empirical results, the interaction over the years and a current overview through choropleth maps. The public R&D investment also affects this relationship.

This study advances the theoretical discussion on (1) female entrepreneurial intentions, (2) smart city advancement (as a context) and (3) smart living dimension (as a driver) and offers valuable insight for governance and policymakers.

This study offers empirical contributions to the preliminary academic debate on enterprise development and smart city trajectories at the intersection between human-based practices and female entrepreneurship.

This study offers empirical contributions to the preliminary academic debate on enterprise development and smart city trajectories at the intersection between human-based practices and female entrepreneurship. The findings provide valuable insights into the localization of female entrepreneurship in the context of smart cities.

The objective of this research is to determine the influence of solvency and liquidity on the profitability [return on assets (ROA)] of Tunisian banks from Q2-2020 to Q3-2022 by considering asset quality as a moderating variable.

This study uses data on liquidity, solvency, ROA and asset quality for 12 banks. It also considers bank size, gross domestic product (GDP) growth and inflation as control variables. The methodology is based on panel data with generalized least squares (GLS) estimation to assess the moderate influence of the asset quality on solvency, liquidity and ROA. Also, the generalized method of moments (GMM) estimation is used as a robustness test.

The results of the GLS model estimation indicated a negatively significant moderating correlation between the liquidity and the solvency. The data from the GMM model indicate that the liquidity variable predicted by the liquidity has a positively significant influence on a bank's ROA as well as for the solvency variable, which is predicted by the capital capacity. Therefore, we conclude that these two variables had a positively significant impact on the ROA.

The studies have many implications for banks and their management in addition to the industry regulators. The results of this study will enable political decision-makers to determine the banks' profits based on their liquidity and solvency.

This analysis provides financial explanations and recommendations for stakeholders in Tunisian banks. Furthermore, these banks must also be able to maintain their liquidity and solvency to ensure their profits in times of COVID-19.

This study explored how institutional quality influences the relationship between military spending and education in Africa.

This study used data from 43 African countries spanning the years 2000–2021. Two estimation methods were employed to address various issues: Fixed Effects with Driscoll-Kraay standard errors and the Two-Step System Generalised Method of Moments. The Fixed Effects with Driscoll-Kraay standard error method was used to obtain reliable standard errors and inferences from the estimated coefficients of the fixed effects model. Meanwhile, the problem of endogeneity between military spending and education was addressed using the Two-Step System Generalized Method of Moments (GMM).

The results indicated that military spending negatively impacts both the quality and quantity of education. However, both institutional quality and the interaction term (institutional quality*military spending) have positive effects on both measures of education, suggesting that better institutional quality mitigates the negative effect of military spending on education outcomes.

This study shows that institutional quality dampens the negative effect of military spending on education, especially the quality of education. Hence, African countries should prioritize strengthening their institutions to ensure optimal allocation and utilization of government funds for the benefit of their citizens.

This is the first study to examine the moderating role of institutional quality in the relationship between military spending and education, focusing on both the quantity and quality of education.

This study aims to examine the relationship between environmental, social and governance (ESG) disclosure, firm risk and stock market returns within the Chinese energy sector. Using a variety of econometric techniques, the study seeks to uncover the impact of ESG disclosure on risk mitigation and its influence on stock market performance.

Benchmark regression models were used to explore the associations between ESG disclosure, firm risk and stock returns. To address potential endogeneity, a generalised method of moments estimator is used. Quantile regression was used for robustness analysis.

The study reveals a negative relationship between ESG disclosure and firm risk, indicating that companies with greater ESG disclosure tend to experience reduced risk exposure. In addition, a positive association is observed between ESG disclosure and stock market returns, suggesting that companies with more comprehensive ESG disclosure practices tend to perform better in the stock market.

This study implies that investors appreciate sustainable investment and incorporate ESG practices and disclosure in decision-making. Policymakers can promote transparent ESG reporting through regulatory frameworks, fostering sustainable practices in the energy sector.

Despite the mounting concerns over carbon dioxide emissions and the energy industry’s environmental footprint, this study pioneers a comprehensive analysis of ESG disclosure within this critical sector. Delving into the relationship of ESG practices, firm risk and market returns, this research uniquely examines both risk mitigation and return enhancement, shedding new light on sustainable strategies in the energy domain.

The objective of this study is to analyze the influence of institutional quality on the attainment of the Sustainable Development Goals (SDGs) using a data set comprising 45 African nations during the timeframe 2000 to 2020.

The data are divided into two periods, with the Millennium Development Goals (MDGs) data covering the years 2000–2015 and the SDGs data spanning from 2015 to 2020. Controlling for other factors, the researcher employs an index of institutional quality and applies the generalized method of moments (GMM) method to analyze the data.

The findings demonstrate a noteworthy inverse relationship between institutional quality and the achievement of both the MDGs and SDGs. The findings reveal a significant and positive link between economic growth and the achievement of the MDGs, while the impact on the SDGs is shown to be insignificant. Population growth significantly drives the SDGs. The results further reveal that trade openness and industrialization contribute positively to the achievement of both the MDGs and SDGs.

The findings emphasize the importance of improving institutional quality, promoting economic growth and supporting trade openness and industrialization for sustainable development in African countries.

The contribution of the study is twofold. Firstly and to the best of the author’s understanding, this research marks an initial endeavor to empirically investigate the nexus between institutional quality and the SDGs in the context of Africa. Secondly, it adds novelty to the literature by examining how institutional quality influences both the SDGs and their precursor the MDGs, providing insights into the actual contribution of institutions to development within the framework of these two major global compacts.

This paper studies the association between earnings opacity and corporate social responsibility disclosures of firms listed on the Vietnamese Stock Exchange.

We utilize a dataset comprising a sample of all listed Vietnamese firms for the period of 2014–2022. Data regarding corporate social responsibility information are gathered manually. Following Dechow et al. (1995), Kothari et al. (2005) and Bhattacharya et al. (2003), earnings opacity is measured by using three proxies, including abnormal accruals, earnings smoothing and loss avoidance. Our hypothesis was tested via ordinary least squares (OLS) regressions. To address endogeneity problems, we use the two-stage instrumental variable method (IV-2SLS) as well as the generalized method of moments (GMM) to ensure the robustness of our results.

We find that earnings opacity is positively related to corporate social responsibility disclosures. Cross-sectional analyses indicate that managers of firms disguise their opportunistic behaviour by disclosing more information about corporate social responsibility. The evidence also shows that firms experience long-run underperformance when having higher earnings opacity and greater sustainability disclosures. Our results remain robust even after correcting for endogeneity using the IV approach and the GMM method.

Evidence from this study can serve as a warning signal to the investment community, highlighting that some methods aimed at enhancing a firm’s corporate social responsibility disclosures might be used to obstruct other unethical activities. Moreover, the results of this study can help regulators gain a better comprehension of firms' reporting patterns concerning corporate social responsibility initiatives. It should not only reform the corporate social responsibility regulation but also impose stronger litigation for firms to enhance the quality of corporate social responsibility disclosures.

We are the first to present evidence regarding the relationship between earnings opacity and corporate social responsibility disclosure in Vietnam.

This study investigates the influence of corporate culture on financial reporting transparency within Iranian firms.

Leveraging a dataset of 1,480 firm-year observations from the Tehran Stock Exchange spanning from 2013 to 2022, the study employs text mining to quantify linguistic features of corporate culture and transparency, specifically readability and tone, within annual financial statements and Management Discussion and Analysis (MD&A) reports.

Our results confirm a positive and significant relationship between corporate culture and financial reporting transparency. The distinct dimensions of corporate culture — Creativity, Competition, Control, and Collaboration — each uniquely enhance financial transparency. Robustness tests including firm fixed-effects, entropy balancing, Generalized Method of Moments (GMM), and Propensity Score Matching (PSM) validate the profound influence of corporate culture on transparency. Additionally, our analysis shows that corporate culture significantly affects the disclosure of business, operational, and financial risks, with varying impacts across risk categories. Cross-sectional analysis further reveals how the impact of corporate culture on transparency varies significantly across different industries and firm sizes.

The study’s scope, while focused on Iran, opens avenues for comparative research in different cultural and regulatory environments. Its reliance on text mining could be complemented by qualitative methods to capture more nuanced linguistic subtleties.

Findings underscore the strategic importance of cultivating a transparent corporate culture for enhancing financial reporting practices and stakeholder trust, particularly in emerging economies with similar dynamics to Iran.

This research is pioneering in its quantitative analysis of the textual features of corporate culture and its impact on transparency within Iranian corporate reports, integrating foundational theoretical perspectives with empirical evidence.