Journal of Risk and Financial Management

4 pages, 162 KiB

Open AccessEditorial

Editorial—The Future of Money: Central Bank Digital Currencies, Cryptocurrencies and Stablecoins

by Ramona Rupeika-Apoga

J. Risk Financial Manag. 2025, 18(9), 469; https://doi.org/10.3390/jrfm18090469 - 22 Aug 2025

Money has always been a mirror of society, shifting from precious metals to paper, from checks to cards, from cash to mobile payments [...] Full article

(This article belongs to the Special Issue The Future of Money: Central Bank Digital Currencies, Cryptocurrencies and Stablecoins, 2nd Edition)

20 pages, 383 KiB

Open AccessArticle

Fundamental Risk and Capital Structure Adjustment Speed: International Evidence

by Dilesh Rawal, Jitendra Mahakud and L Maheswar Rao Achary

J. Risk Financial Manag. 2025, 18(8), 468; https://doi.org/10.3390/jrfm18080468 - 21 Aug 2025

Abstract

This study investigates the impact of countries’ fundamental risk on the speed of adjustment (SOA) towards firms’ target capital structures. Using a dataset comprising 17,747 non-financial firms from 44 countries, this study finds that a reduction in country-specific fundamental risk significantly increases a [...] Read more.

This study investigates the impact of countries’ fundamental risk on the speed of adjustment (SOA) towards firms’ target capital structures. Using a dataset comprising 17,747 non-financial firms from 44 countries, this study finds that a reduction in country-specific fundamental risk significantly increases a firm’s rate of leverage adjustment. More specifically, we observe that a one standard deviation reduction in fundamental risk results in a substantial 12.79% increase in SOA for book leverage and a 4.81% increase for market leverage. The study also finds evidence of the influence of individual dimensions of fundamental risk on SOA. It implies that improved operational efficiency, high foreign accessibility, enhanced corporate transparency, and increased political stability expedite the pace of leverage adjustment within firms. Robustness checks using a machine learning random forest estimator predicted leverage targets to corroborate these findings. The results highlight the critical role of institutional quality in reducing financing frictions and promoting more efficient corporate capital adjustments. These insights have profound implications for policymakers, emphasising the need to strengthen institutional and regulatory frameworks to enhance capital market integrity and reduce friction, which could ultimately create value for the firm stakeholders. Full article

(This article belongs to the Special Issue Emerging Issues in Economics, Finance and Business—2nd Edition)

18 pages, 411 KiB

Open AccessArticle

ESG Practices, Green Innovation, and Financial Performance: Panel Evidence from ASEAN Firms

by Suchart Tripopsakul

J. Risk Financial Manag. 2025, 18(8), 467; https://doi.org/10.3390/jrfm18080467 - 21 Aug 2025

Abstract

This study examines the impact of environmental, social, and governance (ESG) practices on green innovation and financial performance among 174 publicly listed firms across ASEAN countries over the period from 2019 to 2023. Utilizing an unbalanced panel dataset of firms from key ASEAN [...] Read more.

This study examines the impact of environmental, social, and governance (ESG) practices on green innovation and financial performance among 174 publicly listed firms across ASEAN countries over the period from 2019 to 2023. Utilizing an unbalanced panel dataset of firms from key ASEAN economies, the analysis employs panel regression techniques. Green innovation performance is measured through innovation disclosures related to environmental technologies, while financial success is assessed via return on assets (ROA) and Tobin’s Q. The findings reveal that environmental and governance disclosure scores positively influence green innovation, whereas social scores exert a more immediate impact on financial performance. Moreover, green innovation is found to partially mediate the relationship between overall ESG practices and long-term market valuation. These results highlight the strategic role of ESG transparency in enhancing innovation-driven competitiveness, responsible business conduct, and sustainable employment across Southeast Asian markets. Implications are discussed for corporate managers, policymakers, and socially responsible investors. The study reinforces the case for ESG-aligned strategy as a pathway to both innovation, inclusive economic growth, and long-term competitiveness in ASEAN markets. Full article

(This article belongs to the Section Business and Entrepreneurship)

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17 pages, 375 KiB

Open AccessArticle

The Moderating Role of SSB Conflicts of Interest and Audit Committee Independence in Good Corporate Governance and Islamic Bank Performance in Indonesia

by Jerry Marmen Simanjuntak, Faizi Faizi and Airlangga Surya Kusuma

J. Risk Financial Manag. 2025, 18(8), 466; https://doi.org/10.3390/jrfm18080466 - 21 Aug 2025

Abstract

The Sharia Supervisory Board (SSB) and the Audit Committee (AC) are crucial components of Good Corporate Governance (GCG) in Islamic banks. This study investigates the moderating role of SSB conflicts of interest arising from cross-membership in various Islamic Financial Institutions (IFIs) and AC [...] Read more.

The Sharia Supervisory Board (SSB) and the Audit Committee (AC) are crucial components of Good Corporate Governance (GCG) in Islamic banks. This study investigates the moderating role of SSB conflicts of interest arising from cross-membership in various Islamic Financial Institutions (IFIs) and AC members’ independence in the relationship between GCG and Islamic bank performance in Indonesia. Using a sample of ten full-fledged Islamic banks from 2014 to 2023, a Moderated Regression Analysis (MRA) was employed to test three hypotheses. The key findings indicate a significant positive relationship between GCG and Islamic bank financial performance. However, no significant moderating effects of SSB conflicts of interest on the GCG–performance relationship were found. Conversely, a significant positive moderating effect of AC independence was identified. These results have important implications for practitioners, regulators, and stakeholders of the Islamic banking industry. Islamic banks should prioritize the establishment of independent audit committees to strengthen their governance framework. While SSB cross-membership may not necessarily harm performance, banks should implement appropriate oversight mechanisms to manage potential conflicts of interest. The Indonesian Financial Services Authority (OJK) and similar regulatory bodies should continue to emphasize the importance of audit committee independence in their governance guidelines. Full article

(This article belongs to the Section Banking and Finance)

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32 pages, 706 KiB

Open AccessReview

Corporate Failure Prediction: A Literature Review of Altman Z-Score and Machine Learning Models Within a Technology Adoption Framework

by Christoph Braunsberger and Ewald Aschauer

J. Risk Financial Manag. 2025, 18(8), 465; https://doi.org/10.3390/jrfm18080465 - 20 Aug 2025

Abstract

Research on corporate failure prediction is focused on increasing the model’s statistical accuracy, most recently via the introduction of a variety of machine learning (ML)-based models, often overlooking the practical appeal and potential adoption barriers in the context of corporate management. This literature [...] Read more.

Research on corporate failure prediction is focused on increasing the model’s statistical accuracy, most recently via the introduction of a variety of machine learning (ML)-based models, often overlooking the practical appeal and potential adoption barriers in the context of corporate management. This literature review compares ML models with the classic, widely accepted Altman Z-score through a technology adoption lens. We map how technological features, organizational readiness, environmental pressure and user perceptions shape adoption using an integrated technology adoption framework that combines the Technology–Organization–Environment framework with the Technology Acceptance Model. The analysis shows that Z-score models offer simplicity, interpretability and low cost, suiting firms with limited analytical resources, whereas ML models deliver superior accuracy and adaptability but require advanced data infrastructure, specialized expertise and regulatory clarity. By linking the models’ characteristics with adoption determinants, the study clarifies when each model is most appropriate and sets a research agenda for long-horizon forecasting, explainable artificial intelligence and context-specific model design. These insights help managers choose failure prediction tools that fit their strategic objectives and implementation capacity. Full article

(This article belongs to the Section Business and Entrepreneurship)

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26 pages, 484 KiB

Open AccessArticle

Exploring Governance Failures in Australia: ESG Pillar-Level Analysis of Default Risk Mediated by Trade Credit Financing

by Thuong Thi Le, Tanvir Bhuiyan, Thi Le and Ariful Hoque

J. Risk Financial Manag. 2025, 18(8), 464; https://doi.org/10.3390/jrfm18080464 - 20 Aug 2025

Abstract

This study examines the impact of overall Environmental, Social, and Governance (ESG) performance and its pillars on the default probability of Australian-listed firms. Using a panel dataset spanning 2014 to 2022 and applying the Generalized Method of Moments (GMM) regression, we find that [...] Read more.

This study examines the impact of overall Environmental, Social, and Governance (ESG) performance and its pillars on the default probability of Australian-listed firms. Using a panel dataset spanning 2014 to 2022 and applying the Generalized Method of Moments (GMM) regression, we find that firms with higher ESG scores exhibit a significantly lower likelihood of default. Disaggregating the ESG components reveals that the Environmental and Social pillars have a negative association with default risk, suggesting a risk-mitigating effect. In contrast, the Governance pillar demonstrates a positive relationship with default probability, which may reflect potential greenwashing behavior or an excessive focus on formal governance mechanisms at the expense of operational and financial performance. Furthermore, the analysis identifies trade credit financing (TCF) as a partial mediator in the ESG–default risk nexus, indicating that firms with stronger ESG profiles rely less on external short-term financing, thereby reducing their default risk. These findings provide valuable insights for corporate management, investors, regulators, and policymakers seeking to enhance financial resilience through sustainable practices. Full article

(This article belongs to the Special Issue Emerging Trends and Innovations in Corporate Finance and Governance)

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24 pages, 731 KiB

Open AccessArticle

Textual Analysis of Sustainability Reports: Topics, Firm Value, and the Moderating Role of Assurance

by Sunita Rao, Norma Juma and Karthik Srinivasan

J. Risk Financial Manag. 2025, 18(8), 463; https://doi.org/10.3390/jrfm18080463 - 20 Aug 2025

Abstract

This study investigated how specific sustainability topics disclosed in standalone sustainability reports influence firm value and whether third-party assurance moderates this relationship. Drawing on signaling, agency, stakeholder, and legitimacy theories, we applied latent Dirichlet allocation (LDA) to extract latent topics from U.S. corporate [...] Read more.

This study investigated how specific sustainability topics disclosed in standalone sustainability reports influence firm value and whether third-party assurance moderates this relationship. Drawing on signaling, agency, stakeholder, and legitimacy theories, we applied latent Dirichlet allocation (LDA) to extract latent topics from U.S. corporate sustainability reports. We analyzed their impact on Tobin’s Q using panel regressions and supplement our findings with discrete Bayesian networks (DBNs) and Shapley additive explanations (SHAP) to capture non-linear patterns. We identified six core topics: environmental impact, sustainable consumption, daily necessities, socio-economic impact, healthcare, and operations. The results revealed that topics of healthcare and daily necessities have immediate and sustained positive effects on firm value, while environmental and socio-economic impact topics demonstrate lagged effects, primarily two years after disclosure. The presence of assurance, however, produces mixed outcomes: it enhances credibility in some cases, but reduces firm value in others, especially when applied to environmental and socio-economic disclosures. This suggests a dual signaling effect of assurance, potentially increasing investor scrutiny when gaps in performance are highlighted. Our findings underscore the importance of topic selection, consistency in reporting, and strategic application of assurance in ESG communications to maintain stakeholder trust and market value. Full article

(This article belongs to the Special Issue Sustainability Reporting and Corporate Governance)

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17 pages, 3919 KiB

Open AccessArticle

Dynamic Connectedness Among Energy Markets and EUA Climate Credit: The Role of GPR and VIX

by Maria Leone, Alberto Manelli and Roberta Pace

J. Risk Financial Manag. 2025, 18(8), 462; https://doi.org/10.3390/jrfm18080462 - 20 Aug 2025

Abstract

Energy raw materials are the basis of the economic system. From this emerges the need to examine in more detail how various uncertainty indices interact with the dynamic of spillover connectedness among energy markets. The TVP-VAR model is used to investigate connectedness among [...] Read more.

Energy raw materials are the basis of the economic system. From this emerges the need to examine in more detail how various uncertainty indices interact with the dynamic of spillover connectedness among energy markets. The TVP-VAR model is used to investigate connectedness among US, European, and Indian oil and gas markets and the S&P carbon allowances Eua index. Following this, the wavelet decomposition technique is used to capture the dynamic correlations between uncertainty indices (GPR and VIX) and connectedness indices. First, the results indicate that energy market spillovers are time-varying and crisis-sensitive. Second, the time–frequency dependence among uncertainty indices and connectedness indices is more marked and can change with the occurrence of unexpected events and geopolitical conflicts. The VIX index shows a positive dependence on total dynamic connectedness in the mid-long-term, while the GPR index has a long-term effect only after 2020. The analysis of the interdependence among the connectedness of each market and the uncertainty indices is more heterogeneous. Political tensions and geopolitical risks are, therefore, causal factors of energy prices. Given their strategic and economic importance, policy makers and investors should establish a risk warning mechanism and try to avoid the transmission of spillovers as much as possible. Full article

(This article belongs to the Special Issue Banking Practices, Climate Risk and Financial Stability)

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27 pages, 696 KiB

Open AccessArticle

The Impact of Economic Freedom on Economic Growth in Western Balkan Countries

by Roberta Bajrami, Kaltrina Bajraktari and Adelina Gashi

J. Risk Financial Manag. 2025, 18(8), 461; https://doi.org/10.3390/jrfm18080461 - 19 Aug 2025

Abstract

Although it is generally accepted that economic freedom stimulates economic growth, its effects in transitional economies are still up for debate. More empirical research is needed to examine the long-term effects of economic freedom on growth in the Western Balkans, a region characterised [...] Read more.

Although it is generally accepted that economic freedom stimulates economic growth, its effects in transitional economies are still up for debate. More empirical research is needed to examine the long-term effects of economic freedom on growth in the Western Balkans, a region characterised by uneven reform trajectories, fiscal pressures, and institutional fragility. This study examines the effects of seven fundamental factors on real GDP per capita growth (annual percentage change) in six Western Balkan nations between 2013 and 2023. These factors include property rights, government spending, government integrity, business freedom, monetary freedom, trade openness, and education spending. Importantly, in order to better capture macroeconomic constraints, it takes into account two fiscal burden indicators: the public debt and the government budget deficit. A triangulated analytical framework is used: Random Forest regression identifies non-linear patterns and ranks the importance of variables; Bayesian Vector Autoregression (VAR) models dynamic interactions and inertia; and the Generalised Method of Moments (GMM) handles endogeneity and reveals causal relationships. The GMM results show that while government integrity (β = −0.0820, p = 0.0206), government spending (β = −0.0066, p = 0.0312), and public debt (β = −0.0172, p = 0.0456) have negative effects on growth, property rights (β = 0.0367, p = 0.0208), monetary freedom (β = 0.0413, p = 0.0221), and the government budget deficit (β = 0.0498, p = 0.0371) have positive and significant effects on growth. Although the majority of economic freedom indicators are statistically insignificant, Bayesian VAR confirms strong growth persistence (GDP(−1) = 0.7169, SE = 0.0373). On the other hand, the Random Forest model identifies the most significant variables as property rights (3.72), public debt (5.88), business freedom (4.65), and government spending (IncNodePurity = 9.80). These results show that the growth effects of economic freedom depend on the context and are mediated by the state of the economy. Market liberalisation and legal certainty promote growth, but their advantages could be offset by inadequate budgetary restraint and difficulties with transitional governance. A hybrid policy approach, one that blends strategic market reforms with improved institutional quality, prudent debt management, and efficient public spending, is necessary for the region to achieve sustainable development. Full article

(This article belongs to the Section Economics and Finance)

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20 pages, 328 KiB

Open AccessArticle

Sectoral Contributions to Financial Market Resilience: Evidence from GCC Countries

by Khaled O. Alotaibi, Mohammed A. Al-Shurafa, Meshari Al-Daihani and Mohamed Bouteraa

J. Risk Financial Manag. 2025, 18(8), 460; https://doi.org/10.3390/jrfm18080460 - 19 Aug 2025

Abstract

This study investigates the contributions of five key sectors—insurance, materials, utilities, real estate, and transport—to the financial markets of six Gulf Cooperation Council (GCC) countries from 2004 to 2023. Grounded in the Sectoral Linkage Theory and Endogenous Growth Theory, the study employs a [...] Read more.

This study investigates the contributions of five key sectors—insurance, materials, utilities, real estate, and transport—to the financial markets of six Gulf Cooperation Council (GCC) countries from 2004 to 2023. Grounded in the Sectoral Linkage Theory and Endogenous Growth Theory, the study employs a Panel Autoregressive Distributed Lag (Panel ARDL) model to examine both short-term and long-term sectoral impacts on financial market resilience. The findings reveal that the insurance and transport sectors offer short-term market stimulation, but lack persistent effects. Conversely, the materials, utilities, and real estate sectors exhibit strong, long-run contributions to financial stability and economic diversification. These results highlight the asymmetric impact of sectoral dynamics on market performance in resource-rich contexts. This research contributes to the literature by providing empirical evidence on sectoral interdependence in oil-dependent economies and highlights the importance of structural diversification for sustainable financial resilience. The study provides actionable insights for policymakers and investors seeking to enhance market resilience and reduce reliance on hydrocarbon revenues through targeted sectoral development. Full article

(This article belongs to the Section Financial Markets)

36 pages, 1778 KiB

Open AccessArticle

The Integration of Value-at-Risk in Assessing ESG-Based Collaborative Synergies in Cross-Border Acquisitions: Real Options Approach

by Andrejs Čirjevskis

J. Risk Financial Manag. 2025, 18(8), 459; https://doi.org/10.3390/jrfm18080459 - 19 Aug 2025

Abstract

This paper presents a novel framework for valuing ESG-based collaborative synergies in cross-border mergers and acquisitions (M&A) using a real options approach, with a specific application to L’Oréal’s acquisition of Aesop. The methodology integrates a Value-at-Risk (VaR) model to quantify and adjust for [...] Read more.

This paper presents a novel framework for valuing ESG-based collaborative synergies in cross-border mergers and acquisitions (M&A) using a real options approach, with a specific application to L’Oréal’s acquisition of Aesop. The methodology integrates a Value-at-Risk (VaR) model to quantify and adjust for ESG-related risks, providing a more robust valuation framework. We demonstrate how linking sustainability practices with real option valuation in multinational corporations (MNCs) can enhance long-term value creation and reduce risk, thereby aligning synergy goals with ESG objectives. By applying our VaR-adjusted model to the L’Oréal–Aesop case, this study contributes to corporate finance by integrating advanced risk management and sustainability into synergy valuation, and to international business by providing an empirical example of this integrated valuation approach for cross-border acquisitions. Full article

(This article belongs to the Special Issue Finance, Risk and Sustainable Development)

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17 pages, 302 KiB

Open AccessArticle

Banking in the Age of Blockchain and FinTech: A Hybrid Efficiency Framework for Emerging Economies

by Vladimir Ristanović, Dinko Primorac and Ana Mulović Trgovac

J. Risk Financial Manag. 2025, 18(8), 458; https://doi.org/10.3390/jrfm18080458 - 18 Aug 2025

Abstract

In the present era where digitalization, FinTech, and blockchain technologies are reshaping the global financial landscape, traditional measures of bank performance need to evolve. This paper introduces a hybrid approach that combines multi-criteria efficiency assessment and econometric modeling to evaluate bank performance within [...] Read more.

In the present era where digitalization, FinTech, and blockchain technologies are reshaping the global financial landscape, traditional measures of bank performance need to evolve. This paper introduces a hybrid approach that combines multi-criteria efficiency assessment and econometric modeling to evaluate bank performance within the context of digital transformation in emerging economies. Focusing on a panel of banks across selected emerging markets, this study first applies a multi-criteria decision-making technique (Data Envelopment Analysis) to assess operational efficiency using both conventional indicators and digitalization-driven metrics, such as mobile banking penetration and blockchain adoption. We then employ a panel econometric model to investigate the factors that shape efficiency outcomes, with special attention to FinTech and blockchain innovations as potential drivers. The results reveal a nuanced picture of how digital technologies can influence bank performance, highlighting both opportunities and constraints for financial institutions in less developed markets. The findings offer actionable insights for bank managers, regulators, and policymakers striving to balance traditional operational priorities with the demands of digital transformation. By linking efficiency measurement with an examination of the digitalization process, this paper provides a timely contribution to the literature on banking and financial innovation, serving as a foundation for future research and strategic decision-making in the FinTech and blockchain era. Full article

(This article belongs to the Special Issue Commercial Banking and FinTech in Emerging Economies)

24 pages, 791 KiB

Open AccessArticle

Herding Behavior, ESG Disclosure, and Financial Performance: Rethinking Sustainability Reporting to Address Climate-Related Risks in ASEAN Firms

by Ari Warokka, Jong Kyun Woo and Aina Zatil Aqmar

J. Risk Financial Manag. 2025, 18(8), 457; https://doi.org/10.3390/jrfm18080457 - 16 Aug 2025

Abstract

This study examines the intersection of environmental, social, and governance (ESG) disclosure (operationalized through sustainability reporting), corporate financial performance, and the behavioral dynamics of herding in capital structure decisions among non-financial firms in five ASEAN countries. As ESG and sustainability finance gain prominence [...] Read more.

This study examines the intersection of environmental, social, and governance (ESG) disclosure (operationalized through sustainability reporting), corporate financial performance, and the behavioral dynamics of herding in capital structure decisions among non-financial firms in five ASEAN countries. As ESG and sustainability finance gain prominence in addressing climate change and climate risk, understanding the behavioral factors that relate to ESG adoption is crucial. Employing a quantitative approach, this research utilizes a purposive sample of 125 non-financial firms from Indonesia, Malaysia, the Philippines, Singapore, and Thailand, gathered from the Bloomberg Terminal spanning 2018–2023. Managerial Herding Ratio (MHR) is used to assess herding behavior, while Sustainability Report Disclosure Index (SRDI) measures ESG disclosure. Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multigroup Analysis (MGA) were applied for data analysis. This research finds that while sustainability reporting enhances return on assets (ROA) and Tobin’s Q, it does not significantly relate to net profit margin (NPM). The findings also confirm that herding behavior—where companies mimic the financial structures of peers—moderates the relationship between sustainability reporting and performance outcomes, with leader firms gaining more from transparency efforts. This highlights the double-edged nature of herding: while it can accelerate ESG adoption, it may dilute the strategic depth of climate action if firms merely follow rather than lead. The study provides actionable insights for regulators and corporate strategists seeking to strengthen ESG finance as a driver for climate resilience and long-term stakeholder value. Full article

(This article belongs to the Special Issue ESG and Sustainability Finance: Addressing Climate Change and Climate Risk)

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29 pages, 1519 KiB

Open AccessArticle

The Impact of Fintech Risk on Bank Performance in Africa: The PVAR Approach

by Queen Magadi Mabe and Beatrice Desiree Simo-Kengne

J. Risk Financial Manag. 2025, 18(8), 456; https://doi.org/10.3390/jrfm18080456 - 15 Aug 2025

Abstract

This paper presents an empirical investigation into the role of Fintech risk, measured by the Fintech Financial Stress Indicator (FFSI), in shaping the dynamic behavior of bank performance by employing a panel vector autoregressive (PVAR) methodology on a dataset comprising 41 banks across [...] Read more.

This paper presents an empirical investigation into the role of Fintech risk, measured by the Fintech Financial Stress Indicator (FFSI), in shaping the dynamic behavior of bank performance by employing a panel vector autoregressive (PVAR) methodology on a dataset comprising 41 banks across 11 African economies over the semi-annual period from June 2004 to December 2020. The findings reveal that bank performance, measured by return on equity (ROE), exhibits a negative and short-lived response to FFSI shock, while the effects on bank stability, cost efficiency, and return on assets (ROA) are statistically insignificant. In addition, an increase in FFSI significantly enhances both ROA and ROE, with negligible impacts on cost efficiency and stability. In contrast, a decline in FFSI has a significant negative effect on ROE and stability but remains insignificant for ROA and cost efficiency. These results indicate that FFSI shocks have asymmetric effects on ROA, cost efficiency, and bank stability but a symmetric effect on ROE. The findings suggest that engagement in financial innovation initiatives may yield performance benefits for banks, provided such strategies are pursued within a sound regulatory framework to mitigate potential excessive risk-taking. Full article

(This article belongs to the Special Issue Commercial Banking and FinTech in Emerging Economies)

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26 pages, 553 KiB

Open AccessSystematic Review

Financial Education and Personal Finance: A Systematic Review of Evidence, Context, and Implications from the Spanish Language Academic Literature in Latin America

by Elena Jesús Alvarado-Cáceres, Luz Maribel Vásquez-Vásquez and Víctor Hugo Fernández-Bedoya

J. Risk Financial Manag. 2025, 18(8), 455; https://doi.org/10.3390/jrfm18080455 - 15 Aug 2025

Abstract

The growing complexity of financial markets, driven by globalization and digitalization, has increased the need for individuals to make informed financial decisions. In this context, financial education and personal finance have become crucial areas of study. This systematic review aimed to identify and [...] Read more.

The growing complexity of financial markets, driven by globalization and digitalization, has increased the need for individuals to make informed financial decisions. In this context, financial education and personal finance have become crucial areas of study. This systematic review aimed to identify and analyze the existing scientific evidence on these topics, determine the countries contributing to the literature, and extract key conclusions and lessons. A comprehensive search was conducted across the Scopus, Scielo, and La Referencia databases using keywords in Spanish. The initial query yielded 97 documents, which were filtered using seven inclusion and exclusion criteria, resulting in a final sample of 19 relevant articles. The reviewed studies highlight that financial education is a key factor in promoting economic well-being, reducing over-indebtedness, supporting entrepreneurship, and enhancing social inclusion. The effectiveness of financial education depends on equitable access to information, the use of digital tools, tailored approaches for diverse populations, and systematic program evaluation. The findings suggest that collaborative efforts between governments, educational institutions, and the financial sector are necessary to develop inclusive and practical financial education strategies, particularly for vulnerable populations. Financial education must be approached as a continuous, adaptive process to effectively respond to evolving economic challenges. Full article

(This article belongs to the Special Issue The New Horizons of Global Financial Literacy)

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18 pages, 1393 KiB

Open AccessArticle

Deconstructing the Enron Bubble: The Context of Natural Ponzi Schemes and the Financial Saturation Hypothesis

by Darius Karaša, Žilvinas Drabavičius, Stasys Girdzijauskas and Ignas Mikalauskas

J. Risk Financial Manag. 2025, 18(8), 454; https://doi.org/10.3390/jrfm18080454 - 15 Aug 2025

Abstract

This study examines the Enron collapse through an integrated theoretical framework combining the financial saturation paradox with the dynamics of a naturally occurring Ponzi process. The central objective is to evaluate whether endogenous market mechanisms—beyond managerial misconduct—played a decisive role in the emergence [...] Read more.

This study examines the Enron collapse through an integrated theoretical framework combining the financial saturation paradox with the dynamics of a naturally occurring Ponzi process. The central objective is to evaluate whether endogenous market mechanisms—beyond managerial misconduct—played a decisive role in the emergence and breakdown of the Enron stock bubble. A logistic-growth-based saturation model is formulated, incorporating positive feedback effects and bifurcation thresholds, and applied to Enron’s stock price data from 1996 to 2001. The computations were performed using LogletLab 4 (version 4.1, 2017) and Microsoft^® Excel^® 2016 MSO (version 2507). The model estimates market saturation ratios (P/Pp) and logistic growth rate (r), treating market potential, initial price, and time as constants. The results indicate that Enron’s share price approached a saturation level of approximately 0.9, signaling a hyper-accelerated, unsustainable growth phase consistent with systemic overheating. This finding supports the hypothesis that a naturally occurring Ponzi dynamic was underway before the firm’s collapse. The analysis further suggests a progression from market-driven expansion to intentional manipulation as the bubble matured, linking theoretical saturation stages with observed price behavior. By integrating behavioral–financial insights with saturation theory and Natural Ponzi dynamics, this work offers an alternative interpretation of the Enron case and provides a conceptual basis for future empirical validation and comparative market studies. Full article

(This article belongs to the Section Financial Markets)

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21 pages, 1369 KiB

Open AccessArticle

Economic Risk and Cryptocurrency: What Drives Global Digital Asset Adoption?

by Vyacheslav Stupak

J. Risk Financial Manag. 2025, 18(8), 453; https://doi.org/10.3390/jrfm18080453 - 14 Aug 2025

Abstract

Cryptocurrency is often viewed as a hedge against economic instability, yet the extent to which economic risk drives digital asset adoption remains unclear. This study asks to what extent does economic risk shape global cryptocurrency adoption? To address this question, the research investigates [...] Read more.

Cryptocurrency is often viewed as a hedge against economic instability, yet the extent to which economic risk drives digital asset adoption remains unclear. This study asks to what extent does economic risk shape global cryptocurrency adoption? To address this question, the research investigates how variables such as inflation, corruption, unemployment, and exchange rate volatility influence adoption patterns. Using panel data from 41 countries between 2019 and 2024, the study employs country fixed-effects regression models and Principal Component Analysis. A novel Regulatory Permissiveness Index is introduced to evaluate the role of national regulatory environments. The findings show that cryptocurrency adoption is primarily associated with structural enablers such as GDP per capita, internet penetration, and regulatory clarity. Among the economic risk indicators, higher corruption and lower unemployment significantly predict adoption. Other economic factors, such as inflation and exchange rate volatility, are not consistently significant. The results suggest that economic development and digital infrastructure, rather than reactive responses to economic crises, are the main drivers of cryptocurrency adoption. Nonetheless, the significance of corruption highlights the role of institutional dissatisfaction in adoption behaviour, even in economically stable settings. Full article

(This article belongs to the Special Issue Institutional Investors and Cryptocurrency)

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18 pages, 292 KiB

Open AccessArticle

On the Nature and Security of Expiring Digital Cash

by Frank Stajano, Ferdinando Samaria and Shuqi Zi

J. Risk Financial Manag. 2025, 18(8), 452; https://doi.org/10.3390/jrfm18080452 - 13 Aug 2025

Abstract

Digital cash is coming, and it could be programmed to behave in novel ways. In 2020, the People’s Bank of China ran an experiment during which they distributed free digital cash to 50,000 citizens. But it had a twist: they programmed that digital [...] Read more.

Digital cash is coming, and it could be programmed to behave in novel ways. In 2020, the People’s Bank of China ran an experiment during which they distributed free digital cash to 50,000 citizens. But it had a twist: they programmed that digital cash to expire if not spent within a few days. This fascinating and somewhat paradoxical experiment opens many questions. If the cash expires, why would anyone accept it as payment? If it is intended to expire, can the recipient find ways to make it not expire? We explore a variety of possible attacks on expiring cash, countermeasures to those attacks, and alternative implementations, one based on CBDC and another on a public blockchain. We also discuss the more philosophical question of whether expiring cash is still cash: we argue it cannot be. Full article

(This article belongs to the Special Issue The Future of Money: Central Bank Digital Currencies, Cryptocurrencies and Stablecoins)

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16 pages, 710 KiB

Open AccessArticle

Influence of Macroeconomic Variables on the Brazilian Stock Market

by Pedro Raffy Vartanian and Rodrigo Lucio Gomes

J. Risk Financial Manag. 2025, 18(8), 451; https://doi.org/10.3390/jrfm18080451 - 13 Aug 2025

Abstract

This research seeks to evaluate the effects of the preceding cyclical indicators and macroeconomic variables on the performance of the Brazilian stock market from January 2011 to December 2022. The objective is to identify how these factors influence the behavior of the main [...] Read more.

This research seeks to evaluate the effects of the preceding cyclical indicators and macroeconomic variables on the performance of the Brazilian stock market from January 2011 to December 2022. The objective is to identify how these factors influence the behavior of the main index representing this market. In this way, it was analyzed how shocks in the composite leading indicator of the economy (IACE) as well as the basic interest rate of the economy (SELIC), the broad national consumer price index (IPCA), the nominal exchange rate (in reals per dollar—BRL/USD) and the central bank economic activity index (IBC-Br) impact the performance of Brazilian stock market index (IBOVESPA). Using the vector autoregression (VAR) model with vector error correction (VEC), positive shocks were simulated in the IACE and the aforementioned macroeconomic variables to identify and compare their impacts on the index. The results obtained, through generalized impulse response functions, indicated that the shocks to the IACE, the exchange rate, and the inflation variables influenced the IBOVESPA in different and statistically significant ways. However, shocks to the economic activity index and the interest rate did not exert a statistically significant influence on the index, partially confirming the hypothesis, which was initially raised, that these factors influence the stock index in different ways. Full article

(This article belongs to the Section Applied Economics and Finance)

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Journal of Risk and Financial Management

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