Journal of Governance and Regulation - Virtus InterPress

Estimating the shadow economy in Bulgaria using the multiple indicators multiple causes model

Vesela Dimitrova — 2026-04-10T07:41:05Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper aims to contribute to the existing literature on the shadow economy in Bulgaria, both methodologically and empirically, by providing an up-to-date evaluation of its size. The study of the temporal shifts in the shadow economy size is expected to facilitate the evaluation of unreported economic activities and assist the design of more effective government policies that may enhance revenue collection, economic efficiency, and institutional trust. The multiple indicators multiple causes (MIMIC) model for evaluating the shadow economy is utilized as a methodological approach that explores the dynamics of macroeconomic indicators related to both labour market and money market variables. Empirical estimates of the shadow economy size for the period 2003–2024 are obtained by a system of simultaneous equations. The results obtained confirm that the size of the shadow economy persistently keeps quite high levels in Bulgaria during the covered period of time: between 32 percent and 38 percent. The main factors contributing to this have been identified, namely the ratio of government employment to the labour force, the unemployment rate, and the ratio of subsidies to gross domestic product (GDP). The results indicate that expanding the role of state institutions, encouraging participation in the formal labour market, and a better targeted implementation of subsidy policies have the potential to significantly reduce the shadow economy in the country.

Keywords: Shadow Economy, Econometric Analysis, MIMIC Model, Bulgaria

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: H26, O17, C30

Received: 06.10.2025
Revised: 21.01.2026; 09.03.2026
Accepted: 07.04.2026
Published online: 10.04.2026

How to cite this paper: Dimitrova, V. (2026). Estimating the shadow economy in Bulgaria using the multiple indicators multiple causes model. Journal of Governance and Regulation, 15(2), 253–266. https://doi.org/10.22495/jgrv15i2art22

Corporate governance quality and firm performance: Evidence from the emerging market

Isaac Francis Antwi,Carla Carvalho,Cecília Carmo,Eric Nkansah — 2026-04-07T13:13:56Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper examines the relationship between corporate governance quality (CGQ) and the firm performance of listed companies in Ghana. The CGQ-index was developed based on the Ghana Security and Exchange Commission's six guideline principles, and firm performance is measured by return on assets (ROA) and Tobin's Q (Securities and Exchange Commission [SEC], 2010). A sample of 33 Ghanaian-listed firms from 2009 to 2020 was used. The study employs IBM-SPSS regression to analyse the relationship between CGQ and firm performance. The findings show that elements of CGQ, including board size, gender diversity, remuneration committees, other board committees, and corporate governance (CG) compliance, have a statistically significant influence on firm performance by Tobin's Q. In contrast, the remuneration committee and other board committees were found to have a statistically significant influence on firm performance in terms of ROA (Owusu & Weir, 2016; Coleman & Wu, 2021). Our findings offer practical implications for managers in companies and policymakers seeking to enhance compliance with CG guidelines, thereby improving the integrity and reliability of financial reporting. This study fills a gap in the literature by providing an innovative approach to evidence the effectiveness of CG quality on the performance of listed companies in Ghana, an emerging economy.

Keywords: Corporate Governance Guidelines, Corporate Governance Quality, Firm Performance, SEC 2010, Ghana

Authors' individual contribution: Conceptualization — C.C. and C.C.; Methodology — C.C., C.C., and E.N.; Investigation — I.F.A.; Writing — Original Draft — I.F.A.; Writing — Review & Editing — C.C., C.C., and E.N.; Supervision — C.C., C.C., and E.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M0, M48, M49, N47

Received: 25.08.2025
Revised: 13.01.2026; 24.03.2026
Accepted: 03.04.2026
Published online: 07.04.2026

How to cite this paper: Antwi, I. F., Carvalho, C., Carmo, C., & Nkansah, E. (2026). Corporate governance quality and firm performance: Evidence from the emerging market. Journal of Governance and Regulation, 15(2), 241–252. https://doi.org/10.22495/jgrv15i2art21

Supply chain in Vietnam in post-COVID-19: Governance and regulation opportunities and challenges

Bich Thuy Nguyen — 2026-04-06T09:02:51Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The COVID-19 pandemic and subsequent geopolitical shifts have promoted the restructure and reorganization of global supply chains, and Vietnam has found out chance to take advantage of cooperation with the Chinese economy as the “China + 1” strategy (Ahmad & Hien, 2025). However, foreign direct investment (FDI) attraction and assembly-oriented exports reinforce structural vulnerabilities, thereby limiting long-term sustainable economic development. As a result, the Vietnamese economy shows a ‘shallow integration' paradox. Employing global value chains (GVC) theory, the analysis points out five core characteristics of this paradox: 1) supply-chain disruptions due to low supply chain maturity; 2) profound dependency on imported inputs; 3) high sensitivity to global demand fluctuations; 4) a widening capability gap between FDI lead firms and a fragmented domestic supplier base; and 5) prevalent organizational misalignments hindering strategic supply chain management (SCM). Although Vietnam has adapted to global shifts, it coped with challenges in joining the global supply chain.

Keywords: Vietnam, Supply Chain Resilience, Global Value Chains (GVCs), Economic Upgrading, Shallow Integration, Post-Pandemic Economy, China Plus One

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M16, M38, O308, D78, H23

Received: 14.07.2025
Revised: 13.12.2025; 25.02.2026
Accepted: 02.04.2026
Published online: 06.04.2026

How to cite this paper: Nguyen, B. T. (2026). Supply chain in Vietnam in post-COVID-19: Governance and regulation opportunities and challenges. Journal of Governance and Regulation, 15(2), 233–240. https://doi.org/10.22495/jgrv15i2art20

Determinants of financing choices in SMEs: Owner-manager profile, information asymmetry, and governance mechanisms

Zakaria Ben Darkawi,Ahmed Charif,Nabaouia Idrissi,Mariam Gadmi,Idriss Iaataren — 2026-04-03T08:30:21Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the determinants of financing choices among Moroccan small and medium-sized enterprises (SMEs), focusing on the role of owner-manager characteristics and internal governance mechanisms in an underexplored emerging economy context, in line with prior research highlighting the influence of governance structures and managerial attributes on financing behaviour and firm outcomes (Ismaeel & Soliman, 2022; Akwaa-Sekyi et al., 2024). Based on survey data from 127 Moroccan SMEs and using an ordinal logistic regression approach, the analysis investigates preferences for internal financing, bank financing, equity market access, and alternative financing instruments. The findings show that digitalisation and financial transparency shape perceptions of self-financing, while bank financing depends primarily on governance quality (particularly the presence of an audit committee) and owner-manager financial literacy. Equity market access is driven by governance quality and educational attainment, whereas alternative financing relies on governance credibility and specialised financial knowledge, with non-digitalised SMEs exhibiting a greater reliance on such instruments. Overall, the results suggest that SME financing decisions in Morocco are influenced less by purely financial rationality than by strategic, institutional, and cognitive factors, offering original evidence and relevant implications for policymakers and practitioners.

Keywords: Moroccan SMEs, Financing, Owner-Manager, Information Asymmetry, Governance Mechanisms, Pecking Order Theory, Ordinal Logistic Regression

Authors' individual contribution: Conceptualization — Z.B.D. and A.C.; Methodology — N.I. and M.G.; Validation — Z.B.D.; Formal Analysis — I.I. and A.C.; Investigation — Z.B.D.; Resources — Z.B.D. and N.I.; Data Curation — I.I. and M.G.; Writing — Z.B.D., A.C., N.I., and M.G.; Supervision — Z.B.D. and A.C.; Project Administration — Z.B.D. and I.I.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D82, G21, G32, M21

Received: 23.09.2025
Revised: 29.12.2025; 13.01.2026; 02.03.2026
Accepted: 01.04.2026
Published online: 03.04.2026

How to cite this paper: Ben Darkawi, Z., Charif, A., Idrissi, N., Gadmi, M., & Iaataren, I. (2026). Determinants of financing choices in SMEs: Owner-manager profile, information asymmetry, and governance mechanisms. Journal of Governance and Regulation, 15(2), 221–232. https://doi.org/10.22495/jgrv15i2art19

Strategic management tools and techniques: Evidence from small and medium-sized enterprises

Getoar Lubeniqi,Ardian Uka — 2026-04-02T08:59:56Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates the tools and techniques of strategic management for small and medium-sized enterprises (SMEs) in Kosovo and Albania. These tools and techniques are used to organize and structure strategic activities and processes, thus influencing the decomposition of complex situations and the qualitative improvement of strategic decision-making (Bellamy et al., 2019; Clark, 1997). Therefore, the purpose of this study is to determine the level of use, practical utility effects, and current knowledge regarding strategic tools and techniques. To achieve the purpose of the study, a quantitative methodological approach was followed. Data were initially collected through a structured questionnaire designed using the Likert scale, while SPSS software was employed for the statistical analysis of the collected data. The empirical coverage was based on a survey of 100 SMEs across the two countries through a structured questionnaire. A total of 42 SMEs from Kosovo and 39 SMEs from Albania were considered as fully completed survey responses. The findings of the study indicate that the five most frequently used tools and techniques across both countries are: strengths, weaknesses, opportunities, threats (SWOT) analysis, political, economic, social, technological, environmental, and legal (PESTEL) analysis, price analysis, customer satisfaction, and cost-benefit analysis. The same tools and techniques were also identified as having the greatest effect in terms of practical usefulness and current knowledge. The importance of this study lies in further enriching the existing literature on the dynamics and role of strategic management tools and techniques (SMTTs) by creating a framework of important information for managers, employees, consultants, organizational leaders, and researchers.

Keywords: Strategic Management Tools and Techniques, Small and Medium Businesses, Usage, Real Utility, Current Knowledge

Authors' individual contribution: Conceptualization — G.L. and A.U.; Methodology — G.L. and A.U.; Software — G.L. and A.U.; Formal Analysis — G.L. and A.U.; Investigation — G.L. and A.U.; Resources — G.L. and A.U.; Writing — Original Draft — G.L. and A.U.; Writing — Review & Editing — G.L. and A.U.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L21, L25, M12, M21

Received: 21.09.2025
Revised: 06.01.2026; 25.02.2026
Accepted: 30.03.2026
Published online: 02.04.2026

How to cite this paper: Lubeniqi, G., & Uka, A. (2026). Strategic management tools and techniques: Evidence from small and medium-sized enterprises. Journal of Governance and Regulation, 15(2), 209–220. https://doi.org/10.22495/jgrv15i2art18

Public-sector human resource development: Global experiences and regulatory policy implication

Hoa Thi Nguyen,Dat Minh Nguyen — 2026-03-30T13:29:10Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The Vietnamese Government is restructuring the state apparatus in a streamlined and efficient manner, in line with the model of many countries in the world today. The establishment of a two-tier local government as it is today in Vietnam is a strong breakthrough that not only changes the state apparatus but also requires state civil servants to change to adapt to the current context. Study applies a qualitative, comparative methodology based on secondary data drawn from official policy documents, government reports, academic literature, and publicly available statistics. In addition an analysis of the implementation of public-sector human resource development (HRD) policies in Singapore, the United Kingdom, and Japan, as well as an evaluation of the implementation of these policies in Vietnam, The research examines key dimensions of public-sector HRD in the context of human resource mechanisms, thus, several solutions such as perfecting the policy on staff downsizing and utilizing the public workforce after downsizing; training and professional development policies; talent attraction and retention policies; as well as effective support policies for career transitions of officials and civil servants following mergers, in the context of the current streamlining of the state apparatus in Vietnam.

Keywords: Development Policy, Human Resources, Public Sector Human Resources, Apparatus Merger in Vietnam, International Experience

Authors' individual contribution: Conceptualization — H.T.N. and D.M.N.; Methodology — D.M.N.; Validation — D.M.N.; Formal Analysis — H.T.N.; Resources — H.T.N.; Writing — Original Draft — H.T.N. and D.M.N.; Writing — Review & Editing — D.M.N.; Supervision — H.T.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H1, H5, J3, J8, P5

Received: 22.07.2025
Revised: 28.11.2025; 13.12.2025; 27.02.2026
Accepted: 26.03.2026
Published online: 30.03.2026

How to cite this paper: Nguyen, H. T., & Nguyen, D. M. (2026). Public-sector human resource development: Global experiences and regulatory policy implication. Journal of Governance and Regulation, 15(2), 197–208. https://doi.org/10.22495/jgrv15i2art17

Sustainability reports, corporate governance, and organizational units

Arni Claessen,Throstur Olaf Sigurjonsson,Stefan Wendt — 2026-03-27T11:58:44Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines how Icelandic companies disclose sustainability-related governance practices and evaluates the impact of the new Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) (European Commission, 2025) on future disclosure practices. Building on Claessen's (2023) approach and using qualitative methodology, the research combines document analysis of sustainability reports from ten leading Icelandic firms with semi-structured interviews with company representatives. The study finds that current governance disclosures cover only 20–30 percent of ESRS minimum requirements. Key challenges include limited knowledge of ESRS among board members and consultants, weak communication structures, insufficient metrics and verification procedures, and resource constraints. The recent changes introduced by the 2025 Omnibus Act (European Council, 2025) further complicate compliance, intensifying the urgency for firms to adapt. The findings underscore the need for Icelandic companies to invest in training, enhance internal governance systems, and build robust reporting frameworks to meet regulatory demands. Without such efforts, companies risk legal and reputational repercussions. This research provides timely, country-specific insights into governance disclosure gaps and offers practical recommendations for aligning with the European Union's (EU's) evolving sustainability reporting landscape.

Keywords: Sustainability, ESG, European Sustainability Reporting Standards, Corporate Sustainability Reporting Directive, Reporting, Governance

Authors' individual contribution: Conceptualization — A.C., T.O.S., and S.W.; Methodology — A.C; Validation — S.W.; Formal Analysis — A.C.; Investigation — T.O.S. and S.W.; Writing — A.C.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, K22, L21, M14, Q56

Received: 31.08.2025
Revised: 14.01.2026; 09.03.2026
Accepted: 24.03.2026
Published online: 27.03.2026

How to cite this paper: Claessen, A., Sigurjonsson, T. O., & Wendt, S. (2026). Sustainability reports, corporate governance, and organizational units. Journal of Governance and Regulation, 15(2), 189–196. https://doi.org/10.22495/jgrv15i2art16

The use of artificial intelligence for innovation in the public procurement system

Karem Sayed Aboelazm ,Khalid Mohamed Dganni,Fady Tawakol,Raghda Raafat — 2026-03-25T10:14:37Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Public procurement represents a substantial share of national economies and is increasingly shaped by the deployment of artificial intelligence (AI). The research problem addressed in this study concerns how AI can be integrated into public procurement systems without undermining core principles of transparency, accountability, and legality. The purpose of the paper is to examine the transformative potential of AI in public procurement while identifying the legal, institutional, and ethical challenges it generates. Methodologically, the study adopts a comparative analytical approach based on procurement laws, government reports, and peer-reviewed scholarship, focusing on the United Arab Emirates (UAE), Estonia, and South Korea. The findings indicate that AI can significantly enhance efficiency, transparency, and sustainability in procurement processes, particularly through automation and real-time data disclosure (Organisation for Economic Co-operation and Development [OECD], 2025). At the same time, persistent challenges emerge, including insufficient AI-specific legal frameworks, limited algorithmic explainability, and risks of bias and exclusion (Sharifmousavi et al., 2024). The paper concludes that effective AI adoption in public procurement depends primarily on institutional readiness and hybrid governance models that combine algorithmic tools with meaningful human oversight. The study is relevant for policymakers and regulators seeking to balance innovation with legitimacy, particularly in the Arab context, where coordinated legal reform and open data standards remain essential.

Keywords: Innovation, Good Governance, Transparency, Sustainability, Accountability, Artificial Intelligence

Authors' individual contribution: Conceptualization — K.S.A., K.M.D., F.T., and R.R.; Methodology — K.S.A., K.M.D., F.T., and R.R.; Writing — Original Draft — K.S.A., K.M.D., F.T., and R.R.; Writing — Review & Editing — K.S.A.; Supervision — K.S.A.; Project Administration — K.S.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K10, K15, K19, K24

Received: 08.09.2025
Revised: 03.11.2025; 09.01.2026; 06.03.2026
Accepted: 23.03.2026
Published online: 25.03.2026

How to cite this paper: Aboelazm, K. S., Dganni, K. M., Tawakol, F., & Raafat, R. (2026). The use of artificial intelligence for innovation in the public procurement system. Journal of Governance and Regulation, 15(2), 178–188. https://doi.org/10.22495/jgrv15i2art15

The impact of IFRS on the relationship between financial reporting quality and investment efficiency: Evidence from a transitioning accounting and regulatory environment

2026-03-23T14:02:19Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Financial reporting quality (FRQ) is widely recognized as essential for mitigating information asymmetry and enhancing firms' investment decisions. Yet in emerging economies undergoing major accounting transitions, empirical evidence remains mixed and often inconclusive (Biehl et al., 2024; Alruwaili et al., 2023). This study examines whether FRQ promotes investment efficiency and assesses the role of International Financial Reporting Standards (IFRS) adoption, particularly voluntary early adoption, in shaping this relationship. Using panel data for 130 non-financial listed firms from 2017 to 2023 and estimating fixed-effects models (FEM) with extensive robustness checks, we document a strong positive association between FRQ and investment efficiency, driven by reductions in both overinvestment and underinvestment. Although early IFRS adoption does not mechanically raise FRQ, firms adopting IFRS exhibit a markedly stronger FRQ-investment efficiency relationship, indicating that IFRS enhances the decision-usefulness of credible financial information. These findings underscore that the benefits of IFRS are context-specific and conditioned by institutional transition. The study provides practical insights for regulators and investors by identifying when and how IFRS adoption can reinforce reporting quality and foster more efficient capital allocation.

Keywords: Financial Reporting Quality, Investment Efficiency, IFRS Adoption, Vietnam

Authors' individual contribution: Conceptualization — T.N.D. and C.T.H.D.; Methodology — C.T.H.D.; Validation — C.T.H.D.; Formal Analysis — C.T.H.D.; Investigation — T.N.D., C.T.H.D., N.P.C.L., P.T.N., and Q.H.T.; Resources — T.N.D.; Data Curation — C.T.H.D., N.P.C.L., P.T.N., and Q.H.T.; Writing — Original Draft — C.T.H.D., N.P.C.L., P.T.N., and Q.H.T.; Writing — Review & Editing — T.N.D., C.T.H.D., N.P.C.L., P.T.N., and Q.H.T.; Visualization — P.T.N. and N.P.C.L.; Supervision — T.N.D.; Project Administration — T.N.D.; Funding Acquisition — T.N.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, M40, M41, 016

Received: 25.08.2025
Revised: 10.12.2025; 05.03.2026
Accepted: 19.03.2026
Published online: 23.03.2026

How to cite this paper: Doan, T. N., Dang, C. T. H., Le, N. P. C., Nguyen, P. T., & Tran, Q. H. (2026). The impact of IFRS on the relationship between financial reporting quality and investment efficiency: Evidence from a transitioning accounting and regulatory environment. Journal of Governance and Regulation, 15(2), 165–177. https://doi.org/10.22495/jgrv15i2art14

Who controls the annual general meetings of listed companies? An Australian perspective

Syed Naveed Ul Hassan Shah,Yongqiang Li — 2026-03-20T11:04:24Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Shareholders' proposals are viewed as a corporate governance mechanism; however, voting behaviour factors remained unknown, and further empirical research is required (Li et al., 2019; Song et al., 2020; Shah & Li, 2025a, 2025b). We have studied the impact of board recommendations on annual general meetings (AGMs) resolutions of Australian listed companies. Boards have provided three types of recommendations for resolutions: vote in favour, against, or no recommendation. The study has empirically analysed 3,382 AGM resolutions for the 2014 to 2018 AGM seasons. The results show that all resolutions with the board's recommendations to vote in favour or with no recommendations were passed. Moreover, 47 resolutions requisitioned by individuals, shareholders, and boards, where boards recommended to vote against, failed to gain sufficient support from shareholders. The results support the notion that shareholders cannot change the company's corporate governance with their votes and requisitioned resolutions without board support. This raises serious questions about the role of shareholders and AGMs in corporate governance. Forthcoming studies need to reconsider the future of shareholders' resolutions and the role of large shareholders at AGMs. Policymakers need to consider how shareholders' participation at AGMs can be enhanced and how disclosure of information about AGMs for shareholders can be improved.

Keywords: Corporate Governance, Annual General Meetings, AGMs, Shareholders' Resolutions, Proxy Voting

Authors' individual contribution: Conceptualization — S.N.U.H.S.; Methodology — S.N.U.H.S.; Formal Analysis — S.N.U.H.S.; Investigation — S.N.U.H.S.; Writing — Review & Editing — S.N.U.H.S. and Y.L.; Supervision — Y.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G3, G34, K4

Received: 06.10.2025
Revised: 26.01.2026; 04.03.2026
Accepted: 17.03.2026
Published online: 20.03.2026

How to cite this paper: Shah, S. N. U. H., & Li, Y. (2026). Who controls the annual general meetings of listed companies? An Australian perspective. Journal of Governance and Regulation, 15(2), 151–164. https://doi.org/10.22495/jgrv15i2art13

Benchmarking audit quality using good corporate governance

Febrina Nafasati Prihantini,Indira Januarti,Darsono — 2026-03-18T08:15:19Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The outcomes of the audit carried out by the auditor offer crucial information for investor decision-making (Purwanti et al., 2025), making audit quality (AQ) a critical aspect that requires attention. The effectiveness of the board of commissioners (BC) and the audit committee (AC), as a good corporate governance (GCG) mechanism, is a key determinant of AQ. The aim of this research is to combine the elements of the BC and the AC into a single comprehensive analysis to evaluate the impact of both on AQ. The study analyses a sample of 150 Indonesian publicly listed firms using logistic regression. The findings indicate that the performance of the BC does not significantly impact AQ. The effectiveness of the AC influences higher AQ. Some control variables, such as auditor tenure, public accounting firm size, company size, and institutional ownership, did not show an influence on AQ. Still, it is not the case for leverage. This research offers practical implications for policymakers to reassess the regulations concerning the BC and AC that companies must have, in order to enhance the efficiency of these bodies.

Keywords: Audit Committee, Board of Commissioners, Audit Quality, Going Concern, Good Corporate Governance

Authors' individual contribution: Conceptualization — F.N.P. and I.J.; Methodology — F.N.P.; Formal Analysis — F.N.P., I.J., and D.; Investigation — F.N.P. and D.; Writing — Original Draft — F.N.P.; Writing — Review & Editing — I.J. and D.; Visualization — F.N.P.; Funding Acquisition — F.N.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L8, L80, M4, M42, M48

Received: 14.07.2025
Revised: 24.10.2025; 13.02.2026
Accepted: 16.03.2026
Published online: 18.03.2026

How to cite this paper: Prihantini, F. N., Januarti, I., & Darsono. (2026). Benchmarking audit quality using good corporate governance. Journal of Governance and Regulation, 15(2), 142–150. https://doi.org/10.22495/jgrv15i2art12

Women in top management and earnings management: Exploring the impact of corporate environmental sustainability

2026-03-16T14:24:42Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The current study aims to explore the relationship between women's participation in top management (TM) positions and earnings management (EM) practices. Besides, this study aims to examine the impact of corporate environmental sustainability (CES) as a moderating variable in this relationship. The study sample comprised 917 observations related to companies listed on the Saudi Stock Exchange over a seven-year period. Moreover, this study recognised a statistically significant positive correlation between the participation of women in TM and EM practices. Furthermore, the findings indicated a negative correlation between CES practices and EM; however, this correlation was not statistically significant, suggesting that the influence of CES is constrained or indirect in this context. Furthermore, the research suggests that CES does not serve as a moderating factor in the relationship between women's representation and EM. The study's novelty and scientific significance stem from its amalgamation of female governance, CES, and accounting methods within a mostly conservative regulatory framework, therefore addressing a critical need in the regional financial and management literature.

Keywords: Diversity in the Top Management, Earnings Management, Corporate Environmental Sustainability, Saudi Market

Authors' individual contribution: Conceptualization — E.M.A.-M., N.H.A.A., and H.T.; Formal Analysis — N.H.A.A.; Resources — Z.T.A.A. and O.A.A.M.; Visualization — M.H.M.; Writing — Original Draft — E.M.A.-M.; Writing — Review & Editing — E.M.A.-M., N.H.A.A., H.T., M.H.M., Z.T.A.A., and O.A.A.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, L25, Q56

Received: 02.09.2025
Revised: 02.12.2025; 23.02.2026
Accepted: 12.03.2026
Published online: 16.03.2026

How to cite this paper: Al-Matari, E. M., Alnor, N. H. A., Turki, H., Mohammad, M. H., Ali, Z. T. A., & Mohammed, O. A. A. (2026). Women in top management and earnings management: Exploring the impact of corporate environmental sustainability. Journal of Governance and Regulation, 15(2), 131–141. https://doi.org/10.22495/jgrv15i2art11

Factors influencing ethnic minority participation in urban community governance: A systematic literature review

Hanglu Ren,Yok Fee Lee,Ku Hasnita Ku Samsu,Zatul Himmah Adnan — 2026-03-13T13:24:30Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The participation of minority groups in community governance plays a vital role in promoting social stability, ethnic integration, and effective governance. However, in community governance, there are often significant issues such as the under-representation of minority groups, trust gaps, and cultural and language differences, which limit the meaningful participation of minority residents (Turner et al., 2022). This paper aims to identify the key factors influencing the participation of ethnic minority members in community governance, with particular emphasis on the critical role of establishing networked communication between minority groups and governing bodies. It notes the role of community engagement as a key factor that drives the other factors influencing the participation of ethnic minority members in community governance, such as trust, transparency, awareness, and others. This study conducted a systematic literature review (SLR) of 31 peer-reviewed articles from 2020 to 2024 to analyze the trends, key factors, and challenges that affect the participation of minority groups in governance processes. The study highlights the need to develop governance frameworks prioritizing cultural sensitivity, collaborative decision-making, and addressing barriers to digital inclusion. It recommends future research and policy development to promote sustainable and inclusive governance.

Keywords: Community Governance, Urban Ethnic Minorities, Minority Representation, Participation, Factors Influencing, Systematic Literature Review

Authors' individual contribution: Conceptualization — H.R. and Y.F.L.; Methodology — H.R. and K.H.K.S.; Formal Analysis — H.R.; Investigation — H.R. and Z.H.A.; Resources — Y.F.L.; Data Curation — H.R.; Writing — Original Draft — H.R.; Writing — Review & Editing — Y.F.L., K.H.K.S., and Z.H.A.; Supervision — Y.F.L. and K.H.K.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: I138, I131, Z0

Received: 01.08.2025
Revised: 28.11.2025; 20.02.2026
Accepted: 11.03.2026
Published online: 13.03.2026

How to cite this paper: Ren, H., Lee, Y. F., Ku Samsu, K. H., & Adnan, Z. H. (2026). Factors influencing ethnic minority participation in urban community governance: A systematic literature review. Journal of Governance and Regulation, 15(2), 117–130. https://doi.org/10.22495/jgrv15i2art10

Regulatory reform, food security, and indigenous communities: Efforts to realize inclusive governance

2026-03-11T09:40:24Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Governance theory emphasizes the importance of inclusive, participatory, and multi-actor decision-making processes in achieving equitable and sustainable policy outcomes, particularly in diverse and marginalized contexts (Radtke, 2025). This study aims to evaluate the participation of indigenous communities in large-scale agricultural policies (Food Estate) in Merauke Regency, analyze the impact of regulatory reforms on social justice and food sovereignty, and formulate inclusive and sustainable policy recommendations. Using a qualitative approach with a case study design, this study was conducted in three districts of Semangga, Kurik, and Tanah Miring, which have high involvement in the Food Estate program. Data collection techniques include in-depth interviews, focus group discussions (FGDs), participant observation, and documentation studies. The study shows that indigenous participation remains largely symbolic due to the dominance of state and corporate actors in decision-making, and this mismatch between national regulations and local socio-cultural realities has resulted in social marginalization and the erosion of indigenous food sovereignty. This study highlights the need to integrate customary law into national governance while strengthening local community roles in food policy, providing empirical support for a hybrid governance model that accommodates multicultural and agrarian complexities to guide socially inclusive policies in customary and border regions.

Keywords: Policy Reform, Food Security, Indigenous Peoples, Inclusive Governance, Social Justice

Authors' individual contribution: Conceptualization — S.W.R., A.E.P., and T.K.D.; Methodology — S.W.R. and C.S.P.; Validation — S.W.R. and A.P.T.; Formal Analysis — B.T. and P.R.; Investigation — A.P.T. and B.T.; Resources — S.W.R. and P.R.; Data Curation — B.T and P.R.; Writing — S.W.R., A.E.P., T.K.D., C.S.P., A.P.T., B.T., and P.R.; Supervision — A.P.T. and B.T.; Project Administration — A.P.T. and P.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G00, P20, Q18

Received: 07.07.2025
Revised: 21.10.2025; 10.02.2026
Accepted: 09.03.2026
Published online: 11.03.2026

How to cite this paper: Ririhena, S. W., Pattiselanno, A. E., Dewi, T. K., Pakidi, C. S., Tjilen, A. P., Tambaip, B., & Riyanto, P. (2026). Regulatory reform, food security, and indigenous communities: Efforts to realize inclusive governance. Journal of Governance and Regulation, 15(2), 104–116. https://doi.org/10.22495/jgrv15i2art9

Public governance and digitization: Towards a renewed role for internal auditing

Fatine Benkirane,Mohamed Ait Oudra,Samir Errabih — 2026-03-10T14:15:54Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study explores how internal auditing adapts to the challenges of digital transformation in public governance. Drawing on agency theory and agile governance theory, it examines the evolving roles, skills, and strategic positioning of internal auditors within public organizations. The research adopts a quantitative methodology based on a structured questionnaire administered to 200 respondents from Moroccan public institutions, including auditors, governance officers, and information technology (IT) managers. The data were analyzed using Statistical Package for the Social Sciences (SPSS) software to assess the relationships between digital maturity, auditors' digital skills, and their strategic involvement in governance processes. The results indicate that while digital tools are increasingly integrated into audit practices, their perceived impact remains uneven, largely depending on institutional digital maturity and managerial support. The findings reveal a dual-speed digitalization process within the Moroccan public sector, highlighting the need for greater capacity building, continuous training, and strategic integration of internal audit into digital governance frameworks. The study contributes to the literature on public sector modernization and digital governance, offering empirical evidence from an emerging economy and policy-oriented recommendations for strengthening internal audit functions in the digital era.

Keywords: Internal Audit, Digital Transformation, Public Governance, Digital Maturity, Agile Governance

Authors' individual contribution: Conceptualization — F.B. and S.E.; Methodology — F.B. and S.E.; Formal Analysis — F.B. and M.A.O.; Resources — F.B.; Data Curation — F.B.; Writing — Original Draft — F.B.; Writing — Review & Editing — F.B.; Supervision — M.A.O. and S.E.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M0, M4, O3

Received: 23.06.2025
Revised: 03.11.2025; 17.11.2025; 23.02.2026
Accepted: 06.03.2026
Published online: 10.03.2026

How to cite this paper: Benkirane, F., Ait Oudra, M., & Errabih, S. (2026). Public governance and digitization: Towards a renewed role for internal auditing. Journal of Governance and Regulation, 15(2), 93–103. https://doi.org/10.22495/jgrv15i2art8

Blue economy development as government policy and community income: The mediation effect of digital technology

2026-03-06T12:33:46Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The Indonesian government's economic policy tends to rely on the green economy rather than the blue economy, despite the latter's great potential to increase income (Rizky et al., 2025). The purpose of this study is to test the influence of the development of the blue economy and digital technology on community income. Additionally, it examines whether digital technology mediates the impact of the blue economy on community income. This study uses a quantitative survey. This research collects data by distributing questionnaires directly to participants. The respondents in this research are blue economy actors based in Indonesia, including businesses in four districts on Madura Island: Bangkalan, Sampang, Pamekasan, and Sumenep. There were 150 questionnaires from actors, including fishermen, salt farmers, and scrap iron collectors. This study found that: 1) the development of the blue economy had no effect on community income, 2) the development of the blue economy had a significant effect on digital technology, 3) digital technology had a significant effect on community income, and 4) digital technology played a role in mediating the significant influence of the blue economy on community income.

Keywords: Digital Technology, Blue Economy, Community Income, Indonesia, Sea

Authors' individual contribution: Conceptualization — B.H. and D.L.; Methodology — D.L. and N.H.; Validation — B.H. and D.L.; Investigation — M.S.A. and A.R.S.; Resources — N.H. and M.S.A.; Supervision — B.H. and N.H.; Data Curation — M.S.A. and A.R.S.; Writing — Original Draft — B.H., D.L., and N.H.; Writing — Review & Editing — B.H., D.L., and N.H.; Project Administration — M.S.A. and A.R.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O13, O33, Q57

Received: 08.07.2025
Revised: 20.11.2025; 09.02.2026
Accepted: 03.03.2026
Published online: 06.03.2026

How to cite this paper: Haryadi, B., Leniwati, D., Herawati, N., Angraini, M. S., & Shafitri, A. R. (2026). Blue economy development as government policy and community income: The mediation effect of digital technology. Journal of Governance and Regulation, 15(2), 82–92. https://doi.org/10.22495/jgrv15i2art7

The effectiveness of financial governance practices on the environmental performance of the municipalities in developing countries

Silas Mukwarami — 2026-03-04T10:06:24Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The paper examines the relationship between municipal financial management practices (MFMPs) and environmental performance (EP) in South African municipalities (SAMs). The need for study is driven by prevailing EP challenges, as exhibited by poor waste management practices in the local municipalities (Bikam & Chakwizira, 2021). To achieve this objective, the study employed robust standard errors to analyse panel data collected by quantitative content analysis from online sources regarding thirty SAMs during the period spanning 2014 and 2023. The study found a positive, insignificant relationship between MFMPs and EP. The study's findings have crucial implications for many stakeholders, including policymakers, the national government, and local municipalities, as the need to review and enforce compliance with the existing financial management framework remains pertinent to addressing environmental challenges. The study's findings influence decisions on MFMPs, as a commitment to managing the ecological environment, which presents an additional dimension of addressing waste management challenges. Therefore, future research must aim to broaden this agenda, which remains imperative to promoting sustainable environmental management practices (EMPs) from a financial management perspective.

Keywords: Environmental Performance, Financial Management Practices, Municipalities, Service Delivery, Waste Management

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G13, Q51, Q53, Q54, Q56

Received: 30.04.2025
Revised: 12.08.2025; 30.01.2026
Accepted: 02.03.2026
Published online: 04.03.2026

How to cite this paper: Mukwarami, S. (2026). The effectiveness of financial governance practices on the environmental performance of the municipalities in developing countries. Journal of Governance and Regulation, 15(2), 69–81. https://doi.org/10.22495/jgrv15i2art6

Fast state governance: Empirical evidence on economic stability, institutional quality, and entrepreneurship (2010–2025)

Glib Buriak — 2026-03-03T07:02:51Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper tests the Fast State governance model, which posits that accelerating financial flows and automating administrative procedures improve macroeconomic stability, institutional quality, and human capital utilization. Using 2010–2025 panel and cross-country data — World Bank World Development Indicators (WDI) and entrepreneurship database, International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations E-Government Development Index (UN EGDI), World Bank Worldwide Governance Indicators (WGI) — the study estimates regression models with income controls and documented outlier handling. Results show that higher money velocity associates with lower gross domestic product (GDP) growth volatility, e-government development predicts stronger regulatory quality, and shorter, cheaper start-up procedures relate to higher new business density. These findings cohere with evidence that digital governance curbs corruption and raises effectiveness, and that business registration reforms significantly increase firm entry. The contribution is an integrated, empirically grounded framework linking “velocity” in state and market processes to resilience and entrepreneurship across diverse economies. Policy relevance is immediate: predictable acceleration and process automation can stabilize demand transmission, strengthen governance, and unlock entrepreneurial activity. The paper concludes that adopting the Fast State approach yields measurable gains in stability, trust, and human entrepreneurial capital, with implications for post-shock recovery and long-run development.

Keywords: Fast State, Velocity of Money, Macroeconomic Stability, E-Government, Corruption, Entrepreneurship, Automation, Governance

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E58, H11, L26, O33, O43

Received: 30.06.2025
Revised: 28.10.2025; 18.11.2025; 16.02.2026
Accepted: 26.02.2026
Published online: 03.03.2026

How to cite this paper: Buriak, G. (2026). Fast state governance: Empirical evidence on economic stability, institutional quality, and entrepreneurship (2010–2025). Journal of Governance and Regulation, 15(2), 56–68. https://doi.org/10.22495/jgrv15i2art5

Enhancing financial governance through new technologies: The role of accounting information systems in the implementation of Greek accounting standards

2026-02-27T09:20:51Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Rapid developments in technological, scientific, and economic levels impose the need for the modernization of Greek companies regarding their accounting information systems (AIS) to ensure robust financial governance. The implementation of the Greek Accounting Standards (GAS) in 2015 brought significant changes in accounting operations (Stamatopoulos et al., 2021) because it introduced an automated accounting system, modernizing the existing accounting standardization framework. These reforms resulted in the quick adaptation of Greek companies to the new provisions, which are critical for enhancing corporate governance by improving transparency and quality of financial reporting (Koufodontis et al., 2021). The purpose of this paper is to examine how the effectiveness of financial governance mechanisms — specifically the implementation of GAS — depends on the degree of use of new technologies, while also evaluating the role of the state in this transition. A quantitative research design was employed using a survey of 93 accountants and financial executives. Data were analyzed using Pearson correlation to test the relationship between the variables. The results of the research showed that there is a significant correlation between the successful application of GAS and digital maturity, suggesting that technology is a prerequisite for effective financial governance. These insights are relevant for policymakers and practitioners aiming towards corporate transparency and reporting quality in the digital era.

Keywords: Accounting Information Systems, Accounting Standardization, Greek Accounting Standards, New Technologies, Financial Governance

Authors' individual contribution: Conceptualization — D.C. and P.K.; Methodology — D.C. and P.K.; Validation — F.K.G. and P.K.; Formal Analysis — F.K.G. and P.K.; Writing — Original Draft — F.K.G. and P.K.; Writing — Review & Editing — D.C. and A.G.; Supervision — A.G.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, M15, M41, M48

Received: 27.07.2025
Revised: 18.11.2025; 26.01.2026
Accepted: 25.02.2026
Published online: 27.02.2026

How to cite this paper: Charamis, D., Gonidakis, F. K., Kyriakogkonas, P., & Garefalakis, A. (2026). Enhancing financial governance through new technologies: The role of accounting information systems in the implementation of Greek accounting standards. Journal of Governance and Regulation, 15(2), 45–55. https://doi.org/10.22495/jgrv15i2art4

The role of financial literacy, government assistance programs and entrepreneurship development on social welfare

Indra Kertati,Setyohadi Pratomo,Karningsih — 2026-02-26T10:34:01Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Improving social welfare remains a central goal of economic development, with human capital development serving as a key determinant in achieving it (Goldin, 2024). However, limited financial literacy, unequal access to entrepreneurship opportunities, and the short-term nature of government assistance programs often constrain welfare improvement. This study aims to examine the effects of financial literacy, entrepreneurship development, and government assistance programs on social welfare, with human capital development as a mediating variable. A quantitative approach using structural equation modeling — partial least squares (SEM-PLS) was applied to 237 micro-business entrepreneurs in Central Java province, selected through simple random sampling. Data were collected through structured questionnaires and analyzed using SmartPLS software. The results reveal that financial literacy, entrepreneurship development, and government assistance programs positively affect human capital development, which in turn significantly enhances social welfare. Entrepreneurship has both direct and indirect effects, while financial literacy and government assistance influence welfare only through human capital development. These findings emphasize that strengthening human capital is essential for achieving inclusive and sustainable welfare outcomes in developing regions (Sen, 1999).

Keywords: Financial Literacy, Entrepreneurship Development, Government Assistance Program, Human Capital Development, Social Welfare

Authors' individual contribution: Conceptualization — I.K.; Methodology — I.K. and S.P.; Software — S.P.; Validation — I.K. and S.P.; Formal Analysis — I.K. and S.P.; Investigation — I.K. and K.; Resources — I.K., S.P., and K.; Data Curation — I.K., S.P., and K.; Writing — Original Draft — I.K.; Writing — Review & Editing — I.K., S.P., and K.; Visualization — I.K.; Supervision — I.K.; Project Administration — I.K.; Funding Acquisition — K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: I31, J2, O15

Received: 19.07.2025
Revised: 18.10.2025; 29.01.2026
Accepted: 24.02.2026
Published online: 26.02.2026

How to cite this paper: Kertati, I., Pratomo, S., & Karningsih. (2026). The role of financial literacy, government assistance programs and entrepreneurship development on social welfare. Journal of Governance and Regulation, 15(2), 36–44. https://doi.org/10.22495/jgrv15i2art3

Assessing the factors influencing tax governance and administration for information technology enterprises: A fuzzy AHP approach

Ngoc Tu Bui,Thi Bach Tuyet Vuong,Quang Hung Do — 2026-02-24T09:06:47Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The rapid digitalization of business operations has introduced unique challenges for tax administration, particularly in the context of information technology (IT) enterprises (Heering et al., 2025; Mpofu, 2022). These challenges extend beyond administrative efficiency to encompass broader issues of tax governance and regulatory coherence, especially as Vietnam adapts its fiscal system to the fast-changing digital economy. Effective tax governance requires coordination between institutional design, regulatory clarity, and enterprise compliance behavior. In Vietnam, where digital economic growth is accelerating, tax authorities face increasing pressure to modernize administrative frameworks and respond to the evolving nature of intangible and cross-border transactions. This study aims to identify and prioritize the key factors affecting tax administration effectiveness for IT enterprises in Hanoi, using a multi-criteria decision-making approach based on the fuzzy analytic hierarchy process (FAHP). Drawing on expert input from tax officials, policy researchers, and industry professionals, the study applies three FAHP techniques to evaluate the relative importance of a hierarchical set of criteria and sub-criteria. The results consistently highlight tax authority efficiency as the most influential factor, particularly the clarity of regulations, competence of tax officers, and audit transparency. Enterprise-level factors such as managerial tax literacy and legal risk awareness also play critical roles. The findings provide actionable insights for policymakers and business leaders, emphasizing the need for institutional reform, strengthened tax governance, taxpayer education, and adaptive regulatory strategies in the digital economy.

Keywords: Tax Administration, Information Technology Enterprises, Fuzzy AHP, Digital Economy, Multi-Criteria Decision Making, Tax Compliance

Authors' individual contribution: Conceptualization — N.T.B.; Methodology — N.T.B. and T.B.T.V.; Formal Analysis — T.B.T.V.; Investigation — Q.H.D.; Data Curation — Q.H.D.; Writing — Original Draft — N.T.B.; Writing — Review & Editing — Q.H.D.; Visualization — Q.H.D.; Supervision — T.B.T.V.; Project Administration — N.T.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H26, H83, O33

Received: 15.07.2025
Revised: 18.10.2025; 19.01.2026
Accepted: 20.02.2026
Published online: 24.02.2026

How to cite this paper: Bui, N. T., Vuong, T. B. T., & Do, Q. H. (2026). Assessing the factors influencing tax governance and administration for information technology enterprises: A fuzzy AHP approach. Journal of Governance and Regulation, 15(2), 24–35. https://doi.org/10.22495/jgrv15i2art2

An empirical exploration of women's financial literacy and empowerment: A policymaking and regulatory context

Sara Ali Alokley,Mansour Saleh Albarrak,Yasmeen Ansari — 2026-02-20T13:35:27Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Despite growing awareness of financial inclusion, many women continue to face challenges in managing personal finances effectively, making financial literacy essential for sound decision-making. As emphasized by Lusardi and Mitchell (2014), financial literacy plays a crucial role in shaping individuals' financial behavior and long-term economic well-being. This study investigates the impact of financial literacy among women in Saudi Arabia, a context that remains underexplored in existing literature. Using convenience sampling, data were collected and analyzed using statistical methods to test the proposed hypotheses. The results demonstrate that women's financial literacy is positively associated with their level of education, income, and financial understanding. Moreover, women in Saudi Arabia exhibit higher financial awareness than men, highlighting the need for targeted financial education initiatives. The findings also indicate that cultural and social factors play an important role in shaping women's financial behavior and decision-making. These findings align with the Organisation for Economic Co-operation and Development International Network on Financial Education (OECD/INFE) (2016) and the OECD/INFE (2023), International Survey of Adult Financial Literacy, which stresses the importance of developing comprehensive financial education strategies to enhance inclusion and empowerment. The study concludes that improving women's financial literacy is essential for promoting gender equality and supporting sustainable economic growth.

Keywords: Financial Literacy, Financial Knowledge, Women, Decision-Making, Saudi Arabia

Authors' individual contribution: Conceptualization — S.A.A. and M.S.A.; Methodology — M.S.A. and Y.A.; Software — Y.A.; Formal Analysis — Y.A.; Investigation — Y.A.; Data Curation — S.A.A. and M.S.A.; Writing — Original Draft — Y.A.; Writing — Review & Editing — S.A.A. and M.S.A.; Project Administration — M.S.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G11, G51, G53

Received: 02.07.2025
Revised: 25.10.2025; 09.02.2026
Accepted: 18.02.2026
Published online: 20.02.2026

How to cite this paper: Alokley, S. A., Albarrak, M. S., & Ansari, Y. (2026). An empirical exploration of women's financial literacy and empowerment: A policymaking and regulatory context. Journal of Governance and Regulation, 15(2), 8–23. https://doi.org/10.22495/jgrv15i2art1

2026-02-20T09:40:08Z

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Editorial: Reframing governance in turbulent environments: Institutions, technology, and accountability as drivers of resilient development

Alberto Manzari — 2026-02-20T09:39:07Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

This issue of the Journal of Governance and Regulation was published on February 20, 2026.

By clicking the button "Download This Article" you will gain direct access to the Editorial of the issue.

How to cite: Manzari, A. (2026). Editorial: Reframing governance in turbulent environments: Institutions, technology, and accountability as drivers of resilient development. Journal of Governance & Regulation, 15(1), 4–5. https://doi.org/10.22495/jgrv15i1editorial

The role of forensic accounting in improving the quality of auditing processes for financial statements within a governance framework

Ahmed Zakaria Zaki Osemy — 2026-02-12T12:26:46Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper aims to assess the role of forensic accounting in enhancing the quality of financial statement audits in Riyadh. Questionnaires were distributed to a sample of external auditors in Riyadh province in Saudi Arabia. The study revealed that there is a statistically significant relationship between the availability of forensic accounting services and the detection of cases of fraud and the illegal actions of the client. This includes verifying the continuity of the enterprise. In addition, there is a strong correlation between using the forensic accountant services and supporting the external auditing processes in the field, detecting fraud cases, detecting the illegal actions of the client, and verifying the continuity of the enterprise. The correlation value is near to one. The study concludes that forensic accountants must enhance their communication, interpersonal, critical thinking, accounting, auditing, and self-efficacy skills to improve efficiency. Academic and practical qualifications enhance the efficiency and effectiveness of forensic accounting services. The research recommends establishing an autonomous Saudi entity to supervise and accredit forensic accounting businesses. The research additionally recommends including forensic accounting in the curricula of Saudi institutions as an independent or associated subject.

Keywords: Forensic Accounting, Auditing Processes, Financial Statements, Saudi Arabia

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M4, M41

Received: 21.07.2025
Revised: 30.10.2025; 15.01.2026
Accepted: 09.02.2026
Published online: 12.02.2026

How to cite this paper: Osemy, A. Z. Z. (2026). The role of forensic accounting in improving the quality of auditing processes for financial statements within a governance framework. Journal of Governance and Regulation, 15(1), 278–288. https://doi.org/10.22495/jgrv15i1art26

Access to finance and the role of credit guarantee schemes in supporting a European Union candidate country: A regulatory context

Enkeleda Shehi,Emira Spahaj,Valbona Cinaj,Artur Ribaj,Samel Kruja — 2026-02-09T09:53:22Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Small and medium-sized enterprises (SMEs) are a cornerstone of the Albanian economy, contributing substantially to employment and output. This paper explores the main challenges SMEs face in accessing finance and evaluates the effectiveness of public and European Union (EU)-supported financial instruments, with a particular focus on credit guarantee schemes (CGS) (Bennett et al., 2005). Despite their economic significance, SMEs continue to face financing constraints due to high interest rates, stringent collateral requirements, limited start-up lending, and low trust in financial institutions. The analysis combines descriptive and comparative methods using both primary and secondary data. Primary data were collected through a survey of 300 SMEs — 50 from each of six key sectors (trade, production, agriculture, services, handicrafts, and others) — across six regions with high SME concentrations. Results reveal that 92 percent of SMEs are unaware or poorly informed about CGS, and only 1 percent have received support. Statistical testing shows that company age significantly affects financing choices (χ² significance = 0.025 < 0.05), while company size does not (χ² significance = 0.378 > 0.05), although smaller firms exhibit greater financing needs. The paper concludes with policy recommendations to enhance SME access to finance through improved awareness and more inclusive support mechanisms of CGS.

Keywords: SMEs, Access to Finance, Credit Guarantee Schemes, Financial Constraints

Authors' individual contribution: Conceptualization — E.Sh.; Methodology — E.Sp. and V.C.; Investigation — S.K.; Resources — E.Sh.; Writing — E.Sh. and E.Sp.; Supervision — A.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C83, G21, H81, L26, O16

Received: 21.07.2025
Revised: 27.10.2025; 13.11.2025; 13.01.2025
Accepted: 05.02.2026
Published online: 09.02.2026

How to cite this paper: Shehi, E., Spahaj, E., Cinaj, V., Ribaj, A., & Kruja, S. (2026). Access to finance and the role of credit guarantee schemes in supporting a European Union candidate country: A regulatory context. Journal of Governance and Regulation, 15(1), 268–277. https://doi.org/10.22495/jgrv15i1art25

Purchase restrictions as governance tools in Hainan Free Trade Port

Xiaoyin Zhang — 2026-02-06T14:57:59Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study conducts a thematic analysis with the help of a systematic literature review (SLR) based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. The aim of the study is to analyze how Purchase Restriction Policies (PRPs) have been used as governance instruments in Hainan Free Trade Port (Hainan FTP). Hainan's FTP similarly treats regulatory tools as part of a broader state-building experiment, not an isolated housing control (Chi, 2021; Huang, 2021). A total of 19 studies, all published between 2015 and 2025, have been included in the review, which focus on five distinct yet interrelated themes. Core themes include reforms, soft-law governance, and bureaucratic adaptation, which are also for ensuring stability, policy equity, and trust. This institutional view is consistent with studies that link housing controls in Hainan to improving administration and environmental safeguards (Wei, 2022; Dong & Bian, 2024). The study found Hainan's PRPs show a major institutional shift. Policies are not just for managing speculation; they have been embedded into a larger structure that focuses on bureaucratic restructuring, legal experimentation, and environmental governance for building trust. So, PRPs are an excellent tool that is used for designing institutional ecosystems for future generations in every context.

Keywords: Hainan Free Trade Port, Purchase Restriction Policies (PRPs), Reform, Soft-law Governance, Bureaucratic Adaptation, Legitimacy, Stability, Trust, Equity

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: D73, E61, H77, R58, O17

Received: 30.05.2025
Revised: 06.11.2025; 10.01.2026
Accepted: 03.02.2026
Published online: 06.02.2026

How to cite this paper: Zhang, X. (2026). Purchase restrictions as governance tools in Hainan Free Trade Port. Journal of Governance and Regulation, 15(1), 259–267. https://doi.org/10.22495/jgrv15i1art24

The impact of state regulations on foreign direct investment flows in the Western Balkans

Blerta Dragusha,Emirjeta Bejleri,Sabrid Ulqinaku,Gentian Memaj — 2026-02-05T09:59:58Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the state-level factors influencing the absorption of foreign direct investment (FDI) and the decision-making of multinational enterprises (MNEs) to invest in foreign markets, with a particular focus on regulatory determinants along the firm life cycle. Building on recent evidence that institutional and regulatory quality significantly shape FDI inflows in developing economies (Krasniqi & Fetai, 2024; Topçu, 2023), the study uses data from the World Bank for six Western Balkan countries over the period 1998–2022. Using a panel data regression model, it identifies key institutional and economic factors affecting FDI inflows. The empirical results show that countries with lower tax rates on income and profits, stronger control of corruption, and simpler business entry procedures tend to attract higher levels of foreign investment. Furthermore, higher gross domestic product (GDP) per capita and a favorable business environment positively influence FDI decisions. These findings highlight the importance of transparent, efficient, and predictable regulatory frameworks in fostering investment attractiveness. The study offers important policy implications for governments in the region, suggesting that reforms aimed at improving institutional quality and reducing administrative barriers can significantly enhance FDI inflows. Future research could extend this analysis by incorporating qualitative dimensions such as political stability, infrastructure development, and legal enforcement to provide a more comprehensive understanding of the factors driving FDI in emerging economies.

Keywords: Foreign Direct Investments (FDI), Life Cycle, Business Climate, Multinational Companies

Authors' individual contribution: Conceptualization — S.U.; Methodology — B.D.; Formal Analysis — S.U.; Investigation — B.D. and S.U.; Resources — E.B. and G.M.; Data Curation — B.D. and S.U.; Writing — Original Draft — E.B. and G.M.; Writing — Review & Editing — E.B. and G.M.; Visualization — E.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F6, F15, F23

Received: 22.06.2025
Revised: 20.10.2025; 26.10.2025; 27.01.2026
Accepted: 02.02.2026
Published online: 05.02.2026

How to cite this paper: Dragusha, B., Bejleri, E., Ulqinaku, S., & Memaj, G. (2026). The impact of state regulations on foreign direct investment flows in the Western Balkans. Journal of Governance and Regulation, 15(1), 251–258. https://doi.org/10.22495/jgrv15i1art23

Governance-driven synergies between foreign direct investment, renewable energy capacity, and economic growth

Sayeed Aboobakr Milanzi — 2026-02-03T12:59:03Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Malawi is diligently advancing its energy infrastructure while concurrently attracting foreign direct investment (FDI) to foster economic growth. In this regard, comprehending the interaction between investments in renewable energy capacity and FDI inflows, with particular emphasis on governance, becomes imperative. This study is framed within the global transitions towards sustainable energy and regional endeavours to modernise infrastructure, rendering the investigation both pertinent and substantial. The study seeks to examine the correlation between Malawi's renewable energy capacity and FDI inflows, to stimulate economic growth. The study utilised data spanning from 1990 to 2023 and employed an autoregressive distributed lag (ARDL) model to assess the short-run and long-run impacts on gross domestic product (GDP). Results suggest that a 1 per cent increase in renewable energy output correlates with a 32 per cent increase in GDP in Malawi, whereas a percentage increase in FDI correlates with a 20 per cent increase in GDP. In the short term, the results indicate a speed of adjustment of approximately 134 per cent to achieve equilibrium within the economic model. The study concludes that investing in renewable energy substantially enhances Malawi's attractiveness to foreign investors and bolsters economic growth, recommending that the government prioritise these investments to synchronise energy policies while attracting external capital.

Keywords: Renewable Energy, FDI, Economic Growth

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E62, H54, Q28, Q42, Q43

Received: 17.02.2025
Revised: 11.06.2025; 10.09.2025; 12.01.2026
Accepted: 30.01.2026
Published online: 03.02.2026

How to cite this paper: Milanzi, S. A. (2026). Governance-driven synergies between foreign direct investment, renewable energy capacity, and economic growth. Journal of Governance and Regulation, 15(1), 243–250. https://doi.org/10.22495/jgrv15i1art22

Islamic corporate governance and the financial performance of Sharia banks

Dedi Rusdi,Mutamimah ,Widiyanto — 2026-02-02T11:09:08Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The growth of the Islamic banking industry in Indonesia is increasingly significant, but the financial performance of several Islamic banks still shows fluctuations, especially in terms of profitability and problematic financing. One factor that is believed to play a role in creating financial stability and sustainability is the implementation of Islamic corporate governance (ICG), especially the role of the Sharia Supervisory Board (SSB). This study aims to analyze the effect of the number of SSBs on the financial performance of Islamic commercial banks in Indonesia, using data from 13 Islamic banks listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. The method used is multiple linear regression, with financial performance indicators in the form of capital adequacy ratio (CAR), return on assets (ROA), non-performing financing (NPF), financing to deposit ratio (FDR), and operating expenses to operating income (beban operasional pendapatan operasional, BOPO). The results show that the number of SSBs has a significant positive effect on profitability (ROA) and a significant negative effect on NPF. This finding aligns with Mollah and Zaman (2015), who stated that “a better Sharia supervisory board's effectiveness could increase Sharia compliance in Sharia banks” (p. 418). This study emphasizes the urgency of strengthening the role of the SSB in supporting financial stability and Sharia compliance of Islamic banks in Indonesia.

Keywords: Islamic Corporate Governance, Financial Performance, Sharia Supervisory Board

Authors' individual contribution: Conceptualization — D.S.; Methodology — D.S. and M.; Formal Analysis — M.; Investigation — D.S., M., and W.; Writing — Original Draft — D.S., M., and W.; Writing — Review & Editing — D.S., M., and W.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: E5, G3, M21

Received: 01.03.2025
Revised: 02.07.2025; 30.08.2025; 07.01.2026
Accepted: 29.01.2026
Published online: 02.02.2026

How to cite this paper: Rusdi, D., Mutamimah, & Widiyanto. (2026). Islamic corporate governance and the financial performance of Sharia banks. Journal of Governance and Regulation, 15(1), 233–242. https://doi.org/10.22495/jgrv15i1art21

Mindful leadership and organisational resilience post COVID-19: The case of environmental SMEs governance

Thi Thu Hien Hoang,Ha Thi Thu Do — 2026-01-30T11:59:09Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates the impact of mindful leadership on organizational resilience in small and medium-sized enterprises (SMEs) in Vietnam's environmental technology sector. SMEs are central to sustainable development but remain vulnerable to shocks, resource constraints, and market volatility, particularly in the post-COVID-19 era (Erdiaw-Kwasie et al., 2023). Mindful leadership, emphasizing self-awareness, compassion, and situational understanding, offers a promising pathway but has been underexplored in emerging economies (Zheng et al., 2022). The purpose of this research is to examine how mindful leadership influences two dimensions of resilience: situation awareness and adaptive capacity. A quantitative design was employed, with data collected through an online survey of employees and mid-level managers in environmental technology SMEs in Hanoi. Our findings reveal that compassion has a significant positive effect on both situation awareness and adaptive capacity, while self-awareness has a weaker influence, significant only for situation awareness. These results highlight compassion's critical role in fostering trust, cohesion, and adaptability. The study extends mindful leadership research to Vietnamese SMEs and offers practical implications for managers seeking to strengthen resilience in dynamic environments.

Keywords: Mindful Leadership, Organizational Resilience, Self-Awareness, Compassion, Situation Awareness, Adaptive Capacity

Authors' individual contribution: Conceptualization — T.T.H.H. and H.T.T.D.; Methodology — T.T.H.H. and H.T.T.D.; Software — T.T.H.H.; Formal Analysis — T.T.H.H. and H.T.T.D.; Writing — Original Draft — T.T.H.H. and H.T.T.D.; Writing — Review & Editing — T.T.H.H. and H.T.T.D.; Visualization — T.T.H.H. and H.T.T.D.; Supervision — T.T.H.H. and H.T.T.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M14, L26, Q56, H12, O33

Received: 22.05.2025
Revised: 15.09.2025; 26.12.2025
Accepted: 27.01.2026
Published online: 30.01.2026

How to cite this paper: Hoang, T. T. H., & Do, H. T. T. (2026). Mindful leadership and organisational resilience post COVID-19: The case of environmental SMEs governance. Journal of Governance and Regulation, 15(1), 220–232. https://doi.org/10.22495/jgrv15i1art20

Translating awareness into regulatory policy action: A study on climate change engagement and implementation

Marjel Ann A. Concepion,Sarah C. Alvarez,Angelo R. Santos — 2026-01-28T11:56:13Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study assessed the level of climate change awareness among residents in Sto. Domingo, Nueva Ecija, Philippines, with a focus on their understanding of the Local Climate Change Action Plan (LCCAP) (2018–2023). Using a quantitative descriptive method, 414 residents across 24 barangays were surveyed to evaluate their awareness of climate change causes, effects, mitigation, and adaptation. Results revealed moderate awareness overall, with higher understanding of causes and effects than of mitigation strategies. Television and local government sources were the most common information channels. Socio-demographic factors such as gender, employment, education, and particularly location, showed varying degrees of correlation with awareness levels, with those in more exposed areas being more informed. The study highlights the need for community-focused educational interventions and improved information dissemination tailored to local realities. Findings contribute to the understanding of how Climate Action Plans can be better aligned with community needs and the Sustainable Development Goal (SDG) 13 on Climate Action.

Keywords: Adaptation, Climate Change Awareness, Local Climate Change Action Plan, Mitigation, SDG 13 Climate Action, Sto. Domingo, Strategic Development Plan, Sustainable Development Goals

Authors' individual contribution: Conceptualization — M.A.A.C. and S.C.A.; Methodology — M.A.A.C. and S.C.A.; Investigation — M.A.A.C. and S.C.A.; Data Curation — M.A.A.C. and S.C.A.; Writing — Original Draft — M.A.A.C. and S.C.A.; Writing — Review & Editing — A.R.S.; Visualization — A.R.S.; Supervision — S.C.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D83, H75, I28, Q54, Q58

Received: 25.03.2025
Revised: 20.05.2025; 27.10.2025; 02.01.2026
Accepted: 26.01.2026
Published online: 28.01.2026

How to cite this paper: Concepion, M. A. A., Alvarez, S. C., & Santos, A. R. (2026). Translating awareness into regulatory policy action: A study on climate change engagement and implementation. Journal of Governance and Regulation, 15(1), 207–219. https://doi.org/10.22495/jgrv15i1art19

Analyzing the gap and efficiency in government spending: An empirical study using data envelopment analysis and panel data models

Ahmad Abedalqader Al-Majali ,Rima Kamel Abu-Safi,Saleh Yahya Al Freijat — 2026-01-27T09:33:47Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the issue of inefficiency and overspending in government expenditures, with a focus on how the size and composition of public spending affect economic growth. Prior studies have highlighted the relationship between government spending and economic growth (Bayrak, 2021; Ullah et al., 2024). The study aims to determine the optimal level of government expenditures and assess the efficiency of these expenditures. To achieve this, the study employs a panel data model and data envelopment analysis (DEA) methodology, utilizing data from 41 countries with structural similarities to Jordan, for the period 2010 to 2023. The methodology enables benchmarking Jordan's fiscal performance against that of peer countries and identifying deviations from optimal spending levels. The results indicate that Jordan's optimal government spending ratio averages around 28% of gross domestic product (GDP). Additionally, actual expenditures consistently exceed this level, indicating a negative budget deficit. Additionally, the Banker-Charnes-Cooper (BCC) model indicates that Jordan achieved 81% of the optimal efficiency level. This reflects the presence of financial waste and inefficiencies in government expenditures. This inefficiency is linked to a high share of non-productive expenditures such as wages and interest payments. The paper recommends that reforming the structure of public expenditure and reallocating resources toward high-return sectors is essential. These reforms are relevant for improving the efficiency of government expenditures.

Keywords: Jordan, DEA, Panel Data, Expenditures, Government, Optimal

Authors' individual contribution: Conceptualization — A.A.A.-M.; Methodology — A.A.A.-M.; Writing — Original Draft — A.A.A.-M., R.K.A.-S., and S.Y.A.F.; Writing — Review & Editing — A.A.A.-M., R.K.A.-S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H6, H50, H61

Received: 11.06.2025
Revised: 01.10.2025; 22.12.2025
Accepted: 23.01.2026
Published online: 27.01.2026

How to cite this paper: Al-Majali, A. A., Abu-Safi, R. K., & Al Freijat, S. Y. (2026). Analyzing the gap and efficiency in government spending: An empirical study using data envelopment analysis and panel data models. Journal of Governance and Regulation, 15(1), 195–206. https://doi.org/10.22495/jgrv15i1art18

The evolution of the corporate governance literature in Islamic banking: A bibliometric review of the last two decades

Akhmad Faozan,Toufan Aldian Syah,Bambang Waluyo,Che Adenan Mohammad,Rini Meliana — 2026-01-26T08:29:21Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study aims to explore trends and map knowledge on corporate governance (CG) in Islamic banking written by academics worldwide. This study is crucial for identifying the map and gaps in CG research in the Islamic banking industry. The method used is library research, focusing on thematic literature examining CG in Islamic banking. Primary data sources include journal articles, books, and proceedings published from 2005 to 2024, primarily by reputable publishers. The data were then analyzed using an R-based bibliometric approach (Donthu et al., 2021), the bibliometrics web interface, and Biblioshiny. The results indicate that academics from various affiliations and countries still have a high interest in the theme of Islamic banking governance (Bui & Krajcsák, 2024). However, the authors' affiliations and countries are not evenly distributed, with a concentration in the Middle East, Southeast Asia, and the UK. From the aspect of the study articles, the sustainable development approach emerges as a new direction in Islamic financial governance, along with the coherence of keywords such as banking and Islamism, which indicates a strong thematic relationship with Islamic values.

Keywords: Corporate Governance, Islamic Banking, Bibliometrics, Scopus

Authors' individual contribution: Conceptualization — A.F.; Methodology — A.F.; Software — A.F. and T.A.S.; Validation — A.F., T.A.S., and R.M.; Formal Analysis — A.F., T.A.S., and B.W.; Investigation — A.F. and B.W.; Resources — A.F., T.A.S., B.W., and R.M.; Data Curation — A.F.; Writing — A.F.; Visualization — R.M. and C.A.M.; Supervision — A.F. and T.A.S.; Project Administration — A.F. and R.M.; Funding Acquisition — A.F., T.A.S., B.W., C.A.M., and R.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: B40, B41, C18

Received: 04.06.2025
Revised: 08.09.2025; 30.09.2025; 19.12.2025
Accepted: 22.01.2026
Published online: 26.01.2026

How to cite this paper: Faozan, A., Syah, T. A., Waluyo, B., Mohammad, C. A., & Meliana, R. (2026). The evolution of the corporate governance literature in Islamic banking: A bibliometric review of the last two decades. Journal of Governance and Regulation, 15(1), 181–194. https://doi.org/10.22495/jgrv15i1art17

Climate policy uncertainty, regulation, and exchange rate risk: Evidence from news-based indices and spillover models

Tho Do Thi,Hai Nam Nguyen,Thu Hang Dang — 2026-01-23T10:40:24Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Climate policy uncertainty (CPU) has emerged as a critical but understudied source of financial risk, particularly in foreign exchange (FX) markets. This paper examines how the CPU influences exchange rate volatility and cross-currency spillovers by analyzing daily data from 2015 to 2023 on six major currency pairs. The results show that periods of elevated CPU increase exchange rate volatility by up to 30 percent in carbon-intensive and emerging economies, with RUB/USD and CNY/USD consistently acting as net transmitters of risk. The total connectedness index (TCI) reaches 42.7 percent, indicating that the CPU generates systemic spillovers across currency markets rather than isolated shocks. These findings extend prior research that focused mainly on equity and bond markets, highlighting the unique vulnerabilities of FX markets to climate policy narratives. The study contributes to international finance by demonstrating how ambiguous or inconsistent climate policy communication can destabilize currency markets, offering insights for central banks, regulators, and investors seeking to manage risks in the low-carbon transition.

Keywords: Climate Policy Uncertainty, Exchange Rate Volatility, Spillover Effects, Systemic Risk, Financial Stability

Authors' individual contribution: Conceptualization — T.D.T. and T.H.D.; Methodology — T.D.T.; Software — H.N.N.; Validation — H.N.N.; Formal Analysis — H.N.N.; Investigation — T.D.T.; Resources — H.N.N.; Data Curation — T.D.T.; Writing — Original Draft — T.D.T. and H.N.N.; Writing — Review & Editing — T.H.D.; Supervision — T.H.D.; Project Administration — T.H.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C32, E44, F31, G15, Q54

Received: 04.05.2025
Revised: 21.08.2025; 13.01.2026
Accepted: 20.01.2026
Published online: 23.01.2026

How to cite this paper: Do Thi, T., Nguyen, H. N., & Dang, T. H. (2026). Climate policy uncertainty, regulation, and exchange rate risk: Evidence from news-based indices and spillover models. Journal of Governance and Regulation, 15(1), 174–180. https://doi.org/10.22495/jgrv15i1art16

How does cross-border e-commerce change as small and medium-sized enterprises expand into emerging markets?

Shun Zhu — 2026-01-22T13:16:17Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The purpose of the study is to investigate the changes in cross-border e-commerce in international trade patterns as small and medium-sized enterprises (SMEs) expand into emerging nations. The identified problem is that SMEs face informational challenges, as well as marketing and functional barriers, to be successful in host regions. Skill gap and lack of credit for SMEs are the main issues (United Nations Economic and Social Commission for Asia and the Pacific [ESCAP], 2024). The theoretical analysis through transaction cost theory (TCT) shows that firms choose those regions that incur lower costs. The method used is a systematic literature review conducted to understand the importance of digitisation in overcoming functional and informational barriers. The findings show that SMEs adopt new business models to minimise their costs and gain a significant number of global customers through online presence rather than offline ones. This shows that firms reject traditional business models and strategies and adopt new strategies and practices to improve their cross-border e-commerce trade as they enter emerging nations. The study is relevant to understanding the importance of digitalisation, new business models, improved sustainability practices, dynamic marketing capabilities, and regulatory environment changes for SMEs to expand into emerging nations.

Keywords: Cross-border E-commerce, Small and Medium Enterprises, Decentralisation, E-marketing, Digitalisation, Technology-Organization-Environment (TOE) Framework, Direct-to-Consumer (D2C) Model, United Nations Sustainable Development Goals (UNSDGs), Dynamic Marketing Capabilities, Policy, Transaction Costs, Environment

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: D23, L81, Q56, O38

Received: 30.05.2025
Revised: 30.09.2025; 09.01.2026
Accepted: 19.01.2026
Published online: 22.01.2026

How to cite this paper: Zhu, S. (2026). How does cross-border e-commerce change as small and medium-sized enterprises expand into emerging markets? Journal of Governance and Regulation, 15(1), 160–173. https://doi.org/10.22495/jgrv15i1art15

The role of FinTech governance in enhancing financial inclusion and reducing income inequality in MENA countries

2026-01-21T10:25:45Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper examines the effect of financial technology (FinTech) on financial inclusion (FIN) and income inequality; using data from the Global Findex Database (GFD) combined with macroeconomic and institutional indicators. The study employs a quantile regression model on panel data from 11 Middle Eastern and North African (MENA) countries to capture heterogeneous effects of FinTech and FIN across different levels of income inequality. The results show that FinTech adoption significantly reduces income inequality among lower- and middle-income groups, while its effect is insignificant for higher-income groups who already enjoy vast financial access. Moreover, FinTech affects income inequality indirectly by promoting FIN across all dimensions, including account ownership, savings, and borrowing. Additionally, the study reveals a non-linear relationship between financial development and income inequality, depicted as a U-shaped curve. Similarly, education, population growth, and institutional quality alleviate inequality, whereas trade intensity exacerbates it. The results are consistent with recent studies (Demir et al., 2022; Naili et al., 2023), which highlight the role of digital financial innovations in enhancing inclusion and reducing disparities. These findings have significant implications for MENA countries, indicating that acts to reduce income inequality should prioritise promoting FinTech innovation and enhancing FIN.

Keywords: Income Inequality, FinTech, Financial Inclusion, Financial Development, MENA

Authors' individual contribution: Conceptualization — I.N.K., J.A.M., and E.S.; Methodology — I.N.K., M.I.A., and E.S.; Formal Analysis — M.I.A. and E.S.; Investigation — J.A.M. and E.S.; Data Curation — M.I.A. and M.N.A.A.; Writing — Original Draft — I.N.K., J.A.M., M.I.A., M.N.A.A., and E.S.; Writing — Review & Editing — I.N.K., J.A.M., M.I.A. M.N.A.A., and E.S.; Project Administration — I.N.K.; Funding Acquisition — J.A.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D63, G20, O16, O35

Received: 27.06.2025
Revised: 09.09.2025; 08.01.2026
Accepted: 16.01.2026
Published online: 21.01.2026

How to cite this paper: Khatatbeh, I. N., Mustafa, J. A., Alhusban, M. I., Abu Alfoul, M. N., & Shammout, E. (2026). The role of FinTech governance in enhancing financial inclusion and reducing income inequality in MENA countries. Journal of Governance and Regulation, 15(1), 150–159. https://doi.org/10.22495/jgrv15i1art14

The role of ombudsman institutions in governance: A bibliometric analysis (2000–2025)

Turebek Zhuntyrbayev,Aliya Massalimova — 2026-01-20T15:12:05Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study examines the evolution of scholarly research on the role of the ombudsman in governance across various sectors between 2000 and 2025. A bibliometric methodology was applied, covering peer-reviewed literature indexed in the Scopus database. The analysis incorporated keyword mapping, cluster detection, and temporal trends to uncover the dominant research themes and conceptual developments (Zupic & Čater, 2014). A total of 322 documents and 81 keywords were examined after data cleaning and refinement. The co-occurrence network revealed several thematic areas, including corporate governance, financial services, public administration, and human rights protection. Over time, there has been a noticeable shift toward more inclusive and public-centred governance concepts, with recent studies increasingly focusing on legitimacy, participation, and social justice (Creutzfeldt, 2018). Notably, it was determined that an increased number of studies on the role of the ombudsman in corporate and financial governance is necessary. This bibliometric analysis contributes to the research field by showing how academic interest in ombudsman mechanisms aligns with developing governance challenges.

Keywords: Ombudsman, Governance, Corporate Governance, Bibliometric Analysis, Public Administration

Authors' individual contribution: Conceptualization — T.Z. and A.M.; Methodology — T.Z.; Formal Analysis — T.Z.; Investigation — T.Z.; Resources — T.Z.; Writing — Original Draft — T.Z.; Writing — Review & Editing — A.M.; Visualization — T.Z.; Supervision — A.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H83, G28, G34, G38

Received: 04.06.2025
Revised: 17.09.2025; 15.12.2025
Accepted: 15.01.2026
Published online: 20.01.2026

How to cite this paper: Zhuntyrbayev, T., & Massalimova, A. (2026). The role of ombudsman institutions in governance: A bibliometric analysis (2000–2025). Journal of Governance and Regulation, 15(1), 138–149. https://doi.org/10.22495/jgrv15i1art13

The impact of psychological capital on the work engagement of sales employees: The corporate governance perspective

2026-01-19T14:15:58Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Psychological capital (PsyCap) plays an important role in increasing the learning capacity, professional skills, problem-solving, and innovation in the work of employees (Luthans et al., 2013). In developing countries, for example, Vietnam, research on PsyCap has not been mentioned much or fully. It extends beyond social capital and human capital to create profitability. The objective of this paper is to study the impact of PsyCap on the work engagement of sales staff in real estate enterprises in Vietnam. PsyCap includes the factors: 1) confidence, 2) optimism, 3) hope, and 4) resiliency. The research method we used is quantitative, with a sample size of 453 real estate sales staff in Vietnam. The research model is based on the theory of PsyCap and work engagement. The results of the study showed that resiliency had the strongest impact on dedication and passion at work, while confidence and optimism also had a positive effect, but to a lesser extent. However, factors such as hope did not have a significant impact. The study provides practical suggestions for real estate firms in developing training programs to enhance employees' PsyCap to increase engagement and work performance.

Keywords: Psychological Capital, Real Estate Firms, Employees, Work Engagement, Business Administration

Authors' individual contribution: Conceptualization — N.T.H., T.T.M.P., and L.N.H.; Methodology — N.T.H. and T.T.T.B.; Software — N.T.H., T.T.M.P., and T.T.T.B.; Investigation — N.T.C.N. and L.N.H.; Data Curation — N.T.H., T.T.M.P., and N.T.T.B.; Writing — N.T.H., D.T.Y., N.T.C.N., and L.N.H.; Supervision — N.T.H. and D.T.Y.; Project Administration — D.T.Y., T.T.M.P., and T.T.T.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J01, M10, M12, O15

Received: 16.05.2025
Revised: 19.08.2025; 07.09.2025; 22.12.2025
Accepted: 14.01.2026
Published online: 19.01.2026

How to cite this paper: Hong, N. T., Yen, D. T., Nhung, N. T. C., Hieu, L. N., Phuong, T. T. M., & Binh, T. T. T. (2026). The impact of psychological capital on the work engagement of sales employees: The corporate governance perspective. Journal of Governance and Regulation, 15(1), 126–137. https://doi.org/10.22495/jgrv15i1art12

E-government, institutional quality and economic growth in the MENA region: Theoretical analysis and empirical evidence

Salah-Eddine Labkir,Laila El Loumani,Nouh El Harmouzi — 2026-01-16T10:15:32Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates whether institutional quality and digital governance can effectively promote economic growth in the Middle East and North Africa (MENA) region, where structural inefficiencies and governance weaknesses have long constrained development. While institutions are widely recognized as long-term growth drivers (Acemoglu & Robinson, 2012), the role of e-government remains underexplored, particularly in emerging economies. To address this gap, we employ the system generalized method of moments (GMM) on a dynamic panel dataset of 11 MENA countries from 2002 to 2021. Our findings reveal that government effectiveness has a significant and positive influence on economic growth. In contrast, control of corruption and political stability show negative associations, potentially due to transitional reform costs. Other governance dimensions, such as regulatory quality, rule of law, and voice and accountability, are not statistically significant. Notably, the e-government development index (EGDI) displays the strongest and most robust positive effect on growth, emphasizing the strategic importance of digital transformation (Mohammed & Yacine, 2025). The study concludes that while institutional reforms are necessary, they must be complemented by coherent digital strategies. These results offer valuable policy insights for enhancing state capacity, improving governance, and accelerating inclusive development in MENA economies.

Keywords: Economic Growth, Institutional Quality, E-Government, MENA Region, Dynamic Panel Data, System GMM

Authors' individual contribution: Conceptualization — S.-E.L. and L.E.L.; Methodology — S.-E.L. and L.E.L.; Software — S.-E.L.; Writing — Original Draft — S.-E.L.; Writing — Review & Editing — S.-E.L. and L.E.L.; Supervision — N.E.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O43, H11, C33

Received: 26.05.2025
Revised: 31.08.2025; 12.12.2025
Accepted: 13.01.2026
Published online: 16.01.2026

How to cite this paper: Labkir, S.-E., El Loumani, L., & El Harmouzi, N. (2026). E-government, institutional quality and economic growth in the MENA region: Theoretical analysis and empirical evidence. Journal of Governance and Regulation, 15(1), 117–125. https://doi.org/10.22495/jgrv15i1art11

Evaluating the efficacy and best practices of financial management information systems for municipalities in an emerging economy

Thenjiwe Pretty Kweyama ,Celani John Nyide — 2026-01-15T14:33:37Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study evaluates the effectiveness and best practices of financial management information systems (FMIS) in municipalities within an emerging economy. Despite growing adoption of FMIS to improve financial transparency, reporting, and decision-making, implementation challenges persist, particularly at the municipal level (Sebakamotse & van Niekerk, 2020). The research investigates how FMIS contribute to improved financial management, identifies policy and operational gaps, and explores compliance with national financial frameworks. A qualitative approach grounded in interpretivism was adopted, using an exploratory-descriptive case study design. Twelve senior officials from finance and information and communication technology (ICT) departments across three municipalities were purposively selected and interviewed. Thematic analysis revealed a fragmented FMIS landscape dominated by SAGE Evolution and SAP ERP, with limited module utilisation and inconsistent policy implementation. While municipalities reported some compliance with the Municipal Finance Management Act (MFMA), significant gaps were found in alignment with the Municipal Standard Chart of Accounts (mSCOA). Audit findings related to underutilised modules and unauthorised, irregular, and wasteful expenditures point to systemic inefficiencies and poor internal controls. These insights provide a foundation for improved FMIS implementation and policy formulation across municipalities in emerging economies.

Keywords: Financial Management Information Systems, Municipal Finance, Public Sector Accountability, Emerging Economies, Local Government Financial Management

Authors' individual contribution: Conceptualization — T.P.K. and C.J.N.; Methodology — T.P.K. and C.J.N.; Validation — T.P.K. and C.J.N.; Investigation — T.P.K. and C.J.N.; Data Curation — T.P.K. and C.J.N.; Writing — Original Draft — T.P.K. and C.J.N.; Writing — Review & Editing — T.P.K. and C.J.N.; Visualization — T.P.K. and C.J.N.; Supervision — C.J.N.; Project Administration — T.P.K. and C.J.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G18, H83, L3, M48

Received: 04.04.2025
Revised: 31.07.2025; 16.08.2025; 31.12.2025
Accepted: 12.01.2026
Published online: 15.01.2026

How to cite this paper: Kweyama, T. P., & Nyide, C. J. (2026). Evaluating the efficacy and best practices of financial management information systems for municipalities in an emerging economy. Journal of Governance and Regulation, 15(1), 106–116. https://doi.org/10.22495/jgrv15i1art10

Corporate governance mechanisms and financial reporting quality: Evidence from quoted manufacturing firms

2026-01-13T13:33:02Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study seeks to investigate the effect of corporate governance (CG) mechanisms on the financial reporting quality (FRQ) of quoted manufacturing firms at the Uganda Securities Exchange (USE). The study uses a questionnaire survey and interviews with wide groups of stakeholders from the quoted manufacturing firms to collect data from a sample of 150 respondents. We find that ownership structure (OS) has a significantly positive effect on FRQ. In addition, a positive, insignificant effect was established between board characteristics (BC) and FRQ. Furthermore, our findings show that audit committee (AC) characteristics have a significantly positive effect on FRQ. Based on our findings, we conclude that OS and AC characteristics enhance the FRQ of the quoted manufacturing firms. It can also be concluded that the BC examined in this study positively and insignificantly affects FRQ. The study contributes to knowledge on the effect of CG mechanisms on FRQ in a relatively unexplored context of quoted firms in a developing country. The findings also have implications for regulators, standard-setters, and investors who are interested in promoting effective CG mechanisms and the value relevance of financial reporting.

Keywords: Corporate Governance Mechanisms, Financial Reporting Quality, Quoted Manufacturing Firms

Authors' individual contribution: Conceptualization — R.O.E., G.S., and R.E.; Methodology — R.O.E. and R.E.; Formal Analysis — R.O.E, P.P.O., and B.O.; Investigation — R.O.E., G.S., and R.A.; Resources — R.O.E., G.S., R.E., P.P.O., B.O., and R.A.; Writing — Original Draft — R.O.E., G.S., P.P.O., and R.A.; Writing — Review & Editing — R.O.E., G.S., P.P.O., B.O., and R.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, M41

Received: 19.02.2025
Revised: 04.07.2025; 27.08.2025; 23.12.2025
Accepted: 09.01.2026
Published online: 13.01.2026

How to cite this paper: Etengu, R. O., Sonko, G., Ebwonyu, R., Opio, P. P., Odongo, B., & Abongo, R. (2026). Corporate governance mechanisms and financial reporting quality: Evidence from quoted manufacturing firms. Journal of Governance and Regulation, 15(1), 94–105. https://doi.org/10.22495/jgrv15i1art9

Impacts of global economic policy uncertainty index on cash holding level of Vietnamese listed companies: A study of corporate governance

2026-01-12T10:41:53Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper aims to investigate the impact of the Global Economic Policy Uncertainty (GGEPU) index on the cash holding level of Vietnamese listed companies. The research adopts the model built by Demir and Ersan (2017) and conducts detailed analyses on different dimensional effects of GGEPU on corporate cash holding level in selected firms using the panel-data regression technique. The results show that the research firms display minor resistance toward changes in the GGEPU. Specifically, firm-specific financial characteristics have a significant impact on a firm's cash holding decision. In addition, leverage is found to have a positive effect on the cash holding ratio. However, the study does not reflect the effects of tangible assets and capital expenditure on cash holdings of firms in the research sample. The major reason underlying these differences might rest on the financing options of the firms. This paper, therefore, highlighted the importance of companies' policies to adjust cash levels to gain the highest performance regardless of changes in the GGEPU index. The research provides some implications and instructive recommendations for both firms and policymakers to better manage the cash holding level in firms in jurisdictions with an imperfect business environment, like Vietnam.

Keywords: Policy Uncertainty Index, Cash Holding Level, Vietnamese Listed Companies

Authors' individual contribution: Conceptualization — T.T.H.N. and M.H.D.; Methodology — D.C.P.; Formal Analysis — P.L.N. and T.K.Y.P.; Writing— Original Draft — T.K.Y.P. and M.H.D.; Writing — Review & Editing — T.T.H.N. and D.C.P.; Funding Acquisition — T.T.H.N. and P.L.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, G32, M41

Received: 05.04.2025
Revised: 25.08.2025; 22.12.2025
Accepted: 08.01.2026
Published online: 12.01.2026

How to cite this paper: Nguyen, T. T. H., Pham, D. C., Nguyen, P. L., Pham, T. K. Y., & Do, M. H. (2026). Impacts of global economic policy uncertainty index on cash holding level of Vietnamese listed companies: A study of corporate governance. Journal of Governance and Regulation, 15(1), 84–93. https://doi.org/10.22495/jgrv15i1art8

Informal interactions between audit committees and internal audits: Evidence from firms on the Amman Stock Exchange

Mahmoud Mohmad Aleqab,Roaa Qawasmeh,Anas Al Qudah — 2026-01-09T08:41:33Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This research investigates how informal exchanges between internal audit functions (IAF) and audit committees (ACs) develop within firms listed on the Amman Stock Exchange. The study relies on the perspectives of 157 internal audit professionals affiliated with Jordan's Institute of Internal Auditors (IIA) chapter. Through regression analysis, we explore the role of six variables: three linked to the audit committee (expertise, independence, and size) and three from the internal audit side (independence, competency, and department size). Results suggest that all six factors contribute positively to the frequency and quality of informal communication. Independence and domain knowledge, in particular, stood out as strong enablers of open and effective interaction. These findings are especially relevant to developing governance systems like Jordan's, where informal relationships often carry considerable weight in oversight processes. The results echo themes found in prior studies but offer regional nuance to help contextualize how informal governance operates in Middle Eastern firms (Sarens et al., 2013; Drogalas et al., 2019; Zaman & Sarens, 2013).

Keywords: Informal Interactions, Audit Committee Characteristics, Internal Audit Characteristics, Jordanian Companies

Authors' individual contribution: Conceptualization — M.M.A. and R.Q.; Methodology — M.M.A. and R.Q.; Formal Analysis — M.M.A. and R.Q.; Investigation — M.M.A., R.Q., and A.A.Q.; Writing — Original Draft — M.M.A., R.Q., and A.A.Q.; Writing — Review & Editing — M.M.A., R.Q., and A.A.Q.; Project Administration — M.M.A. and A.A.Q.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, M42

Received: 02.05.2025
Revised: 07.08.2025; 20.08.2025; 08.12.2025
Accepted: 07.01.2026
Published online: 09.01.2026

How to cite this paper: Aleqab, M. M., Qawasmeh, R., & Al Qudah, A. (2026). Informal interactions between audit committees and internal audits: Evidence from firms on the Amman Stock Exchange. Journal of Governance and Regulation, 15(1), 75–83. https://doi.org/10.22495/jgrv15i1art7

The effect of financial inclusion and financial technology on women's empowerment

Lubna Khalaf,Asma’a Al-Amarneh,Rami Abu Wadi,Naderh Mryan — 2026-01-08T12:27:38Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper examines the impact of financial inclusion and financial technology (FinTech) on women's empowerment using panel data from 85 countries over four years, employing a comprehensive model that accounts for diverse income levels. The explanatory variables include FinTech and financial inclusion indicators, while the control variables encompass growth, inflation, education, and population growth. Key findings suggest that financial inclusion, through savings or mobile money accounts, has a significant impact on women's empowerment in high-income economies. In upper-middle-class economies, education, inflation, and owning a bank account serve as crucial factors in women's empowerment. Conversely, in lower-middle-income economies, education has a positive influence on empowerment, while financial inclusion through savings or mobile money exhibits a negative impact. The study highlights the significance of enhancing women's financial literacy to improve access to financial services backed by contemporary FinTech and promote active economic participation. It emphasizes the need for crucial context-specific tactics to achieve successful gender equality and inclusive economic development. Its originality lies in its comprehensive analysis across income levels, uncovering complex relationships between FinTech, financial inclusion, and women's empowerment.

Keywords: Financial Inclusion, Financial Technology, Women Empowerment, Sustainable Development Goals

Authors' individual contribution: Conceptualization — L.K.; Methodology — L.K.; Validation — A.A.-A.; Formal Analysis — L.K.; Investigation — L.K.; Resources — N.M.; Data Curation — L.K.; Writing — Original Draft — A.A.-A. and R.A.W.; Writing — Review & Editing — A.A.-A., R.A.W., and N.M.; Visualization — A.A.-A. and R.A.W.; Supervision — A.A.-A.; Project Administration — L.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: I14, I24, O15, O31

Received: 12.09.2024
Revised: 18.12.2024; 06.10.2025; 26.12.2025
Accepted: 06.01.2026
Published online: 08.01.2026

How to cite this paper: Khalaf, L., Al-Amarneh, A., Abu Wadi, R., & Mryan, N. (2026). The effect of financial inclusion and financial technology on women's empowerment. Journal of Governance and Regulation, 15(1), 64–74. https://doi.org/10.22495/jgrv15i1art6

Enhancing employee digital skills in SMEs for sustainable growth in the digital transformation era: A governance outlook

Tu Thanh Dam,Thi Thanh Huyen Lam,Thieu Si Nguyen,Thi Thanh Huyen Dam — 2026-01-07T10:24:52Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In the rapidly evolving Industrial Revolution 4.0, digital skills are a core factor enabling enterprises to maintain and grow in the global market. They improve production and business efficiency, enhance labor productivity, and strengthen competitiveness. However, the lack of digital skills among employees in Vietnam's enterprises reduces competitiveness, hampers productivity, and hinders sustainable economic development. This study aims to identify and analyze key challenges faced by employees in small and medium-sized enterprises (SMEs) during the national digital transformation toward a digital economy and society. Using a mixed-methods approach, combining surveys and in-depth interviews with 306 SMEs in major cities, the study reveals four main barriers to developing employees' digital skills: 1) financial constraints; 2) difficulty in allocating time for training; 3) limited access to training resources; and 4) insufficient government support. Based on these findings, recommendations are proposed to help SMEs overcome these barriers, build a digitally skilled workforce, and enhance competitiveness in the digital era.

Keywords: Digital Skills, Digital Transformation, Employee Upskilling, SMEs, Vietnamese Enterprises

Authors' individual contribution: Conceptualization — T.T.D. and T.T.H.L.; Methodology — T.S.N. and T.T.H.D.; Software — T.S.N. and T.T.H.D.; Investigation — T.S.N. and T.T.H.D.; Data Curation — T.S.N.; Writing — Review & Editing — T.T.D., T.T.H.L., T.S.N., and T.T.H.D.; Supervision — T.T.D. and T.T.H.L.; Project Administration — T.T.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: J82, M10, O15, O32

Received: 22.05.2025
Revised: 14.08.2025; 23.12.2025
Accepted: 05.01.2026
Published online: 07.01.2026

How to cite this paper: Dam, T. T., Lam, T. T. H., Nguyen, T. S., & Dam, T. T. H. (2026). Enhancing employee digital skills in SMEs for sustainable growth in the digital transformation era: A governance outlook. Journal of Governance and Regulation, 15(1), 54–63. https://doi.org/10.22495/jgrv15i1art5

Integrating Development Village Index governance for advancing Sustainable Development Goals

2026-01-06T10:28:55Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Village disparities remain a persistent challenge in achieving equitable and sustainable development. This study addresses the problem of fragmented governance in village development by analyzing the convergence of the Development Village Index (Index Desa Membangun, IDM) with the Sustainable Development Goals (SDGs). The purpose is to evaluate how IDM's five-tier classification, ranging from very underdeveloped to independent villages, supports SDG achievement. A qualitative descriptive method was used to analyze IDM data issued by the Ministry of Village, Development of Disadvantaged Regions, and Transmigration from 2016 to 2022. The findings reveal three key roles of IDM governance: providing structured data for decision-making and intervention planning, enhancing the effectiveness of village development programs, and partially supporting SDGs, with limited alignment observed in SDG 5 (gender equality), SDG 13 (climate action), and SDG 14 (life below water). The study concludes that IDM governance contributes significantly to SDG progress but requires further integration for comprehensive impact. This paper is relevant for policymakers and practitioners seeking data-driven strategies to accelerate sustainable rural development and improve policy coherence at the local level.

Keywords: Convergence, Governance, Development Village Index, Acceleration, Sustainable Development Goals

Authors' individual contribution: Conceptualization — E.H. and A.M.; Methodology — A.M. and S.I.; Formal Analysis — A.R. and L.S.; Investigation — A.M. and S.; Resources — E.H. and S.M.; Data Curation — A.R. and L.S.; Writing — Original Draft — E.H. and A.M.; Writing — Review & Editing — S.I., S.M., and S.; Visualization — L.S.; Supervision — S.I. and S.; Project Administration — E.H.; Funding Acquisition — E.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H83, O21, Q56

Received: 12.12.2024
Revised: 06.05.2025; 22.12.2025
Accepted: 02.01.2026
Published online: 06.01.2026

How to cite this paper: Haryati, E., Mustofa, A., Ismail, S., Marwiyah, S., Suyanto, Raharja, A., & Syahadiyanti, L. (2026). Integrating Development Village Index governance for advancing Sustainable Development Goals. Journal of Governance and Regulation, 15(1), 41–53. https://doi.org/10.22495/jgrv15i1art4

Governance tools for stakeholder interaction in the innovation economy

Viktoriia Ostapenko,Viktoriia Tyshchenko,Oleksii Naidenko — 2026-01-05T12:33:14Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper explores governance tools designed to enhance stakeholder interaction within innovation policy frameworks, particularly in the context of Ukraine's dynamic and crisis-affected economy. The study addresses the lack of structured and adaptive information and analytical support (IAS) necessary for effective collaboration among education, science, and business actors. Using a process-spatial modeling approach based on the function modeling IDEF0 methodology and ERwin Model Navigator, the research develops a comprehensive governance model that integrates institutional levels, resource flows, and temporal dynamics. The proposed IAS framework supports data-driven decision-making, transparency, and coordination across stakeholder groups, offering actionable mechanisms for shaping responsive and inclusive innovation policies. The model covers international, national, and regional levels and identifies key IAS resources (financial, intellectual, technological, etc.) and time intervals (pre-2019 sustainable development, COVID-19 crisis 2020–2021, and wartime economy from 2022). The analytical tools employed include strategic, operational, qualitative, and causal methods. The findings offer a systematized framework for improving collaboration among stakeholders and forming policy-relevant strategies in innovation ecosystems. The research builds on the conceptual foundations of Schumpeter (1911) and the stakeholder-focused innovation system approach of Lundvall (1992), contributing to ongoing efforts to strengthen Ukraine's integration into global innovation processes.

Keywords: Information and Analytical Support, Innovative Economy, Stakeholders, Education, Science, Business, Resources, Levels, Time Intervals, Structural and Functional Modeling, IDEF0

Authors' individual contribution: Conceptualization — V.O.; Methodology — V.O.; Investigation — V.T. and O.N.; Resources — V.T. and O.N.; Writing — Original Draft — V.O., V.T., and O.N.; Writing — Review & Editing — V.T.; Supervision — V.O. and V.T.; Funding Acquisition — V.O., V.T., and O.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C65, D80, O30

Received: 28.02.2025
Revised: 13.06.2025; 23.07.2025; 17.12.2025
Accepted: 31.12.2025
Published online: 05.01.2026

How to cite this paper: Ostapenko, V., Tyshchenko, V., & Naidenko, O. (2026). Governance tools for stakeholder interaction in the innovation economy. Journal of Governance and Regulation, 15(1), 30–40. https://doi.org/10.22495/jgrv15i1art3

The impact of monetary policy on corporate financial decisions: A study of the European markets

Hua Wang — 2026-01-02T13:29:55Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In the modern global dynamics, monetary policy has become one of the most integral tools of world governments to tackle economic shocks. The interest rate policy is one of the most integral instruments available as a monetary policy to the governments (Jordà et al. 2024). A change in the interest rates can help to tackle the inflationary pressures by reducing the circulation of money in the nation. However, changes in interest also impact the borrowing cost in the economy (Kempa et al. 2021). This prevents investment and consumption activities in the nation. However, the same also impacts the corporate decision-making on loans for firms in an economy. The study uses data from 1586 listed companies across France and Germany. From the 4210 observations across Europe, a panel data regression model using fixed effects model (FEM) and random effects model (REM) is used to analyze the impact of monetary policy on debt levels. The results show that interest rates impact the total debt of companies in Europe significantly. Furthermore, economic growth and market capitalization also impact the total debt of firms in Europe significantly. Overall, the monetary policy has a significant impact on the corporate financial decisions in Europe.

Keywords: Interest Rate, Fixed-Effects Model, GDP Growth Rate, Debt-to-Equity Ratio, Market Capitalisation, Long-Term Debt

Authors' individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: C23, E52, E31, F36, G32

Received: 07.03.2025
Revised: 25.06.2025; 04.12.2025
Accepted: 30.12.2025
Published online: 02.01.2026

How to cite this paper: Wang, H. (2026). The impact of monetary policy on corporate financial decisions: A study of the European markets. Journal of Governance and Regulation, 15(1), 20–29. https://doi.org/10.22495/jgrv15i1art2

Organizational behavior in responding to Special Autonomy Policy in the emerging market: Governance and regulatory challenges in a conflict-prone region

Beatus Tambaip,Alexander Phuk Tjilen,Pulung Riyanto,Yosephina Ohoiwutun — 2025-12-19T12:09:30Z

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates the ineffective implementation of the Special Autonomy Policy (Otsus) in Papua, driven by organizational behavior (OB), leadership dynamics, and governance challenges within local institutions. The research aims to analyze how internal governance processes and external socio-political contexts influence policy outcomes in a conflict-prone region. Using a qualitative case study approach, data were collected through in-depth interviews, focus group discussions (FGDs), participatory observation, and document analysis to provide a comprehensive understanding of local governance dynamics. Findings reveal that the effectiveness of Otsus is shaped by internal factors such as leadership quality, institutional capacity, and bureaucratic performance, alongside external factors including fragmented socio-political conditions and Papua's unique socio-cultural context. Key governance challenges include weak inter-agency coordination, regulatory misalignment, overlapping authority between central and regional governments, and internal bureaucratic resistance. These issues contribute to jurisdictional ambiguity, governance inefficiencies, and declining public trust. The study concludes that improving Otsus implementation requires inclusive, context-sensitive policy approaches that integrate local traditions, cultural diversity, and community participation. This research contributes to the broader discourse on governance and public policy, offering practical insights for enhancing policy effectiveness and refining autonomy frameworks in conflict-prone and decentralized regions.

Keywords: Organizational Behavior, Special Autonomy Policy, Governance Challenges, Policy Implementation, Papua Decentralization

Authors' individual contribution: Conceptualization — B.T. and A.P.T.; Methodology — B.T. and Y.O.; Validation — B.T. and A.P.T.; Formal Analysis — P.R. and Y.O.; Investigation — B.T. and A.P.T.; Resources — P.R. and Y.O.; Data Curation — B.T. and P.R.; Writing — B.T., A.P.T., P.R., and Y.O.; Supervision — B.T. and A.P.T.; Project Administration — A.P.T. and P.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D23, D74, G30

Received: 26.04.2025
Revised: 09.08.2025; 01.09.2025; 25.11.2025
Accepted: 16.12.2025
Published online: 19.12.2025

How to cite this paper: Tambaip, B., Tjilen, A. P., Riyanto, P., & Ohoiwutun, Y. (2026). Organizational behavior in responding to Special Autonomy Policy in the emerging market: Governance and regulatory challenges in a conflict-prone region. Journal of Governance and Regulation, 15(1), 8–19. https://doi.org/10.22495/jgrv15i1art1

Journal of Governance and Regulation - Virtus InterPress

Estimating the shadow economy in Bulgaria using the multiple indicators multiple causes model

Corporate governance quality and firm performance: Evidence from the emerging market

Supply chain in Vietnam in post-COVID-19: Governance and regulation opportunities and challenges

Determinants of financing choices in SMEs: Owner-manager profile, information asymmetry, and governance mechanisms

Strategic management tools and techniques: Evidence from small and medium-sized enterprises

Public-sector human resource development: Global experiences and regulatory policy implication

Sustainability reports, corporate governance, and organizational units

The use of artificial intelligence for innovation in the public procurement system

The impact of IFRS on the relationship between financial reporting quality and investment efficiency: Evidence from a transitioning accounting and regulatory environment

Who controls the annual general meetings of listed companies? An Australian perspective

Benchmarking audit quality using good corporate governance

Women in top management and earnings management: Exploring the impact of corporate environmental sustainability

Factors influencing ethnic minority participation in urban community governance: A systematic literature review

Regulatory reform, food security, and indigenous communities: Efforts to realize inclusive governance

Public governance and digitization: Towards a renewed role for internal auditing

Blue economy development as government policy and community income: The mediation effect of digital technology

The effectiveness of financial governance practices on the environmental performance of the municipalities in developing countries

Fast state governance: Empirical evidence on economic stability, institutional quality, and entrepreneurship (2010–2025)

Enhancing financial governance through new technologies: The role of accounting information systems in the implementation of Greek accounting standards

The role of financial literacy, government assistance programs and entrepreneurship development on social welfare

Assessing the factors influencing tax governance and administration for information technology enterprises: A fuzzy AHP approach

An empirical exploration of women's financial literacy and empowerment: A policymaking and regulatory context

Contents

Editorial: Reframing governance in turbulent environments: Institutions, technology, and accountability as drivers of resilient development

The role of forensic accounting in improving the quality of auditing processes for financial statements within a governance framework

Access to finance and the role of credit guarantee schemes in supporting a European Union candidate country: A regulatory context

Purchase restrictions as governance tools in Hainan Free Trade Port

The impact of state regulations on foreign direct investment flows in the Western Balkans

Governance-driven synergies between foreign direct investment, renewable energy capacity, and economic growth

Islamic corporate governance and the financial performance of Sharia banks

Mindful leadership and organisational resilience post COVID-19: The case of environmental SMEs governance

Translating awareness into regulatory policy action: A study on climate change engagement and implementation

Analyzing the gap and efficiency in government spending: An empirical study using data envelopment analysis and panel data models

The evolution of the corporate governance literature in Islamic banking: A bibliometric review of the last two decades

Climate policy uncertainty, regulation, and exchange rate risk: Evidence from news-based indices and spillover models

How does cross-border e-commerce change as small and medium-sized enterprises expand into emerging markets?

The role of FinTech governance in enhancing financial inclusion and reducing income inequality in MENA countries

The role of ombudsman institutions in governance: A bibliometric analysis (2000–2025)

The impact of psychological capital on the work engagement of sales employees: The corporate governance perspective

E-government, institutional quality and economic growth in the MENA region: Theoretical analysis and empirical evidence

Evaluating the efficacy and best practices of financial management information systems for municipalities in an emerging economy

Corporate governance mechanisms and financial reporting quality: Evidence from quoted manufacturing firms

Impacts of global economic policy uncertainty index on cash holding level of Vietnamese listed companies: A study of corporate governance

Informal interactions between audit committees and internal audits: Evidence from firms on the Amman Stock Exchange

The effect of financial inclusion and financial technology on women's empowerment

Enhancing employee digital skills in SMEs for sustainable growth in the digital transformation era: A governance outlook

Integrating Development Village Index governance for advancing Sustainable Development Goals

Governance tools for stakeholder interaction in the innovation economy

The impact of monetary policy on corporate financial decisions: A study of the European markets

Organizational behavior in responding to Special Autonomy Policy in the emerging market: Governance and regulatory challenges in a conflict-prone region