Economic Trends and Business Review (ETBR) is a scholarly journal that publishes original research articles, reviews, and empirical studies related to the fields of economics, business, and finance. It focuses on the latest trends and developments in economic theory, business management practices, and financial markets, with an emphasis on both theoretical and practical aspects. The journal aims to foster the exchange of knowledge, provide insights into emerging business strategies, and contribute to the understanding of economic policies and their impact on global markets. Articles published in ETBR are intended for researchers, policymakers, business professionals, and academic scholars who seek to understand the intersection of economic theory and business practices. This journal covers a broad spectrum of topics including macroeconomics, microeconomics, corporate finance, international trade, marketing strategies, entrepreneurship, management innovations, and sustainability in business. Through its interdisciplinary approach, ETBR promotes a holistic understanding of economic and business systems and their interplay with societal well-being.
From Compliance to Competitive Advantage: How Climate Reporting Shapes Corporate Strategy
The study aims at the reporting possibility to become a source of competitive advantage in the corporate strategies going beyond compliance. As disclosure expectations increase due to climate change, so do the emissions, climate risk, corporate governance, transition plans, and financial impacts from sustainability disclosure. However, compliance with these regulations is not the end of good climate reporting; it can also influence strategic decision-making, efficiency, investor confidence, and climatic resilience in the long term. The study looks at how climate reporting information can be used to inform climate action decisions in relation to carbon reduction, energy efficiency, adaptation and transformation in supply chains, product innovation, risk management and stakeholder engagement. The results indicate that climate reporting organizations that perform better are more likely to include climate considerations in their corporate planning and allocating resources. The quality of reporting enhances transparency, reinforces in-house accountability, and allows companies to identify risks and opportunities related to the climate transition. Finally, the paper concludes that value could be added to climate reporting if it is more than a symbolic disclosure exercise and if it is connected to the business strategy. Businesses that make the most of the climate reporting will be positioned to be resilient, attractive to investors, nurture their image, and achieve a sustainable competitive advantage.
Copyright (c) 2026 https://creativecommons.org/licenses/by-nc-nd/4.0
Digital Maturity, Cyber Resilience, and Financial Performance in SMEs
The current study investigates the link between digital maturity, cyber resilience, and financial performance in small and medium-sized enterprises. With the digitalization of their tools, including cloud platforms, e-commerce systems, digital payments, enterprise software, and data analytics, the threat to SMEs is growing. The study aims to explore if there is an impact of increasing digital maturity on financial results and if cyber resilience further boosts the connection. The results suggest that SMEs with higher levels of digital maturity have greater revenue growth, operational efficiency, customer reach, and profitability. But the findings indicate that although digital transformation is a key element, its impact in terms of sustainable performance is weak unless there is a high level of cybersecurity skills. SMEs that were more cyber resilient—with data backups, employee awareness, incident response planning, access control for employees, and monitoring threats—faced fewer disruptions and financial losses due to cyber incidents. The study also reveals that there's a significant supporting relationship existing between cyber resilience and financial performance, above digital maturity. Overall, the results show that digital adoption with cybersecurity readiness, risk awareness, and resilient operation practices can provide better financial returns to SMEs.
Geopolitical Risk, Supply Chain Reconfiguration, and Firm Resilience in the Post-Pandemic Economy
The aim of this study is to explore the connection among geopolitical risk, supply chain reconfiguration, and firm resilience in the post-pandemic economy. Since the COVID-19 pandemic, businesses had to manage health-related issues and the rising geopolitical tension, trade barriers, and fuel crises, as well as sanctions, travel delays, and regional wars. But for many organizations, these pressures increased and led to a rethinking and rethinking of their dependence on global supply chains and to the consideration of new strategies, such as supplier diversification, nearshoring, regional sourcing, inventory buffering, and digital supply chain monitoring. The study examines geopolitical risk's impact on supply chain decisions and how the firm's resilience is affected by supply chain reconfiguration. The results showed that companies that have high geopolitical risk exposure had higher cost increases, longer lead times, and higher frequency of supply disruptions. But those who used flexible sourcing, multiple supplier sources, and digital visibility tools to enhance their supplier visibility were more resilient, more quickly recovered, and less impacted by disruption. The results further confirm that one of the most important factors for firms to minimize vulnerabilities and increase continuity of operations is their reconfiguration of their supply chains. Geopolitical risk is now an important factor in all strategic supply chain management scenarios, and businesses must optimize costs and also consider their resilience, flexibility, and preparedness to deal with geopolitical risk.
Retail Investor Behavior during AI-Driven Market Narratives: FOMO, Overconfidence, and Risk Taking
In the present study, the attitudes of the retail investors are analyzed in the market when AI-generated narratives are presented, particularly FOMO, overconfidence, and risk-taking. The implications of this integration of artificial intelligence into financial markets are a hot topic that has been brought to the attention of retail investors in a number of ways, including news, social media, analyst commentary, and online investment communities. These stories can affect the investors' minds and raise their expectations on positive results, especially in investments pertaining to tech and AI. This research looks at how investor feelings about the AI market and the impact of exposure to market narratives through AI news are influencing investor confidence in trading, portfolio concentration, and financial risk-taking. The results suggest that greater exposure to AI-related stories is correlated with higher FOMO scores, as well as higher confidence in one's own investment abilities and more frequent trading and investment allocation towards speculative or high-growth investments. The results also suggest that an overconfident mindset strengthens the relationship between the exposure to AI narratives and risk-taking behavior, while FOMO serves as an intermediate step between market narratives and retail trading activities. The paper ends with the conclusion that market narratives created by AI could be behavioral risks and opportunities for retail investors. In the frenzy of the technology-infused market, financial education, risk awareness, and proper and balanced disclosure are necessary to allow investors to make more rational choices.
Trusted Multi-Agent Generative AI for Real-Time Defense of U.S. Digital Payments: A Privacy-Preserving Governance Framework for Critical and Emerging Financial Technologies
The proliferation of autonomous, LLM-based multi-agent systems in financial services introduces critical challenges in verifying authenticity, intent, and overall system integrity, particularly within decentralized, trustless environments where emergent behaviors and opaque decision-making undermine regulatory compliance and operational safety. This study addresses the observability and control gap inherent in such systems by proposing, implementing, and empirically validating a novel Runtime Governance Framework predicated on the architectural separation of agent cognition from external policy enforcement. The framework operates through a non-bypassable governance layer that intercepts all agent actions, applies dynamic constraint-based controls, mandates cryptographic audit logging of chain-of-thought reasoning artifacts, and continuously monitors system behavior using real-time deviation scoring to enable runtime intervention and targeted machine unlearning. Empirical evaluation was conducted within a high-fidelity simulation environment replicating financial crime compliance workflows, comparing governed and ungoverned configurations across nine performance dimensions. Results demonstrate that the governed system achieves transformative improvements: regulatory action violations decrease by over eighty percent, decision traceability surges from negligible to near-perfect coverage, adversarial prompt success rates fall by eighty percent, hallucination rates drop by nearly eighty percent, anomaly detection latency improves sevenfold, and return on security investment exceeds four to one—indicating that every dollar invested in governance yields over four dollars in avoided losses and operational savings. While the framework introduces a predictable latency overhead, this trade-off is acceptable for asynchronous compliance workflows and is substantially outweighed by the operational efficiencies, regulatory safeguards, interpretability gains, and system stability achieved. This research provides a validated architectural blueprint for the secure, trustworthy, and compliant deployment of autonomous agentic AI in regulated financial environments, establishing that effective governance must be external, enforceable, and runtime-adaptive rather than static and pre-deployment focused.
Investigating the Effects of Social Media Activism on Human Rights Advocacy in Authoritarian Regimes
Social media platforms have increasingly become critical tools for human rights advocacy, particularly within authoritarian regimes where traditional forms of political participation are constrained. This study quantitatively examines the effects of social media activism on human rights advocacy outcomes in authoritarian contexts. Using cross-sectional survey data collected from social media users and digital activists, the study employs descriptive statistics, correlation analysis, multiple regression, and mediation modeling to assess the relationship between online activism and advocacy effectiveness. The findings indicate that higher levels of social media activism are significantly associated with increased public awareness, digital network expansion, international visibility, and perceived advocacy effectiveness. Regression results demonstrate that public awareness and network expansion are strong predictors of advocacy outcomes, while mediation analysis reveals that these factors partially mediate the relationship between online activism and human rights advocacy. Visual and tabulated analyses further confirm the consistency of these relationships across multiple model specifications. Overall, the results provide empirical evidence that social media activism plays a meaningful role in advancing human rights advocacy in restrictive political environments, highlighting its potential as a strategic tool for awareness building and transnational engagement.
Copyright (c) 2025 https://creativecommons.org/licenses/by-nc-nd/4.0
The Impact of Social Entrepreneurship on Poverty Reduction and Community Development in Sub-Saharan Africa
Social entrepreneurship has gained increasing attention as a sustainable approach to addressing poverty and fostering community development in developing regions. This study quantitatively examines the impact of social entrepreneurship on poverty reduction and community development in Sub-Saharan Africa. Using cross-sectional survey data collected from social enterprises and community stakeholders, the study applies descriptive statistics, correlation analysis, multiple regression, and mediation modeling to evaluate the relationships between social entrepreneurial activities and development outcomes. The results indicate that innovation intensity, employment creation, revenue sustainability, and community outreach are significantly associated with improved poverty reduction and community development indicators. Regression analysis reveals that employment creation and community outreach are the strongest predictors of poverty reduction, while mediation analysis demonstrates that employment generation and enterprise sustainability partially mediate the relationship between social entrepreneurship and poverty reduction outcomes. Visual and tabulated analyses further confirm the robustness of these relationships across multiple model specifications. Overall, the findings provide empirical evidence that social entrepreneurship contributes meaningfully to poverty alleviation and community development in Sub-Saharan Africa, highlighting its role as an effective mechanism for inclusive and sustainable development.
Understanding the Psychological Effects of Poverty on Children in Low-Income Communities
Poverty remains a critical social determinant of child development, exerting profound effects on psychological well-being and mental health outcomes. This study quantitatively examines the psychological effects of poverty on children living in low-income communities, with particular attention to the roles of chronic stress and caregiver stress as underlying mechanisms. Using cross-sectional survey data collected from caregivers of children aged 6–16 years, the study employs descriptive statistics, correlation analysis, multiple regression, and mediation modeling to assess relationships between poverty-related factors and children’s psychological outcomes. The findings reveal that household income insecurity, food insecurity, and housing instability are significantly associated with higher levels of anxiety, depressive symptoms, and behavioral difficulties, alongside lower self-esteem. Regression results indicate that chronic stress and caregiver stress are strong predictors of adverse psychological outcomes. Mediation analysis further demonstrates that stress-related pathways partially explain the relationship between poverty and child mental health. Visual and tabulated analyses confirm the robustness of these associations. Overall, the results provide empirical evidence that poverty affects children’s psychological well-being both directly and indirectly through stress mechanisms, highlighting the need for integrated social and mental health interventions in low-income settings.
A Study of Gender Inequality in Political Representation: Analyzing the Barriers to Women's Political Empowerment
Gender inequality in political representation remains a persistent global challenge, limiting women’s participation in decision-making and governance processes. This study investigates the structural, socio-cultural, economic, and institutional barriers affecting women’s political empowerment using a quantitative research design. Survey data were collected from adult respondents across diverse socio-demographic backgrounds and analyzed through descriptive statistics, correlation analysis, multiple regression, and mediation modeling. The results reveal that socio-cultural norms, economic constraints, and institutional barriers exert a significant negative influence on women’s political empowerment, while political awareness and institutional support have a strong positive effect. Mediation analysis further demonstrates that political awareness and institutional support partially mediate the relationship between structural barriers and empowerment outcomes. Visual and tabulated analyses confirm the robustness of these relationships across different model specifications. Overall, the findings highlight the importance of addressing both structural constraints and enabling factors to enhance women’s political participation. This study contributes empirical evidence to gender and political representation literature and offers policy-relevant insights for promoting inclusive and equitable political systems.
The Role of Religion in Promoting Social Cohesion and its Impact on Community Development
Religion continues to play a significant role in shaping social relationships and collective life in many societies, yet its empirical contribution to social cohesion and community development remains contested. This study investigates the relationship between religious participation, social cohesion, and community development using a quantitative research design. Survey data were collected from adult community members and analyzed using descriptive statistics, correlation analysis, multiple regression, and mediation modeling. The findings demonstrate that higher levels of religious participation are positively associated with increased social cohesion, interpersonal trust, civic engagement, and perceived community well-being. Regression results indicate that social cohesion is a strong predictor of community development outcomes and partially mediates the relationship between religious participation and community development. Visual and tabulated analyses further confirm the robustness of these relationships across demographic groups and model specifications. Overall, the results suggest that religion contributes to community development primarily through its capacity to strengthen social bonds, shared values, and collective responsibility. The study provides empirical evidence supporting the social integrative function of religion and contributes to policy-relevant debates on community development, social capital, and social cohesion in contemporary societies.
The Effect of Lean Manufacturing Practices on Operational Performance
This study investigates the effect of Lean Manufacturing (LM) practices on operational performance using a mixed-methods experimental design that integrates both qualitative and quantitative approaches. Data were collected through surveys, interviews, and company-level performance indicators across multiple manufacturing sectors. The results demonstrate that the adoption of lean practices such as Just-in-Time (JIT), Kaizen, 5S, and Value Stream Mapping significantly improves key operational dimensions, including productivity, cost reduction, defect minimization, supplier performance, and employee engagement. Nine comprehensive tables and twelve graphical visualizations provided robust evidence of performance gains, where regression analysis confirmed a strong positive relationship between lean practices and the operational performance index. Scatter plot findings revealed that cultural readiness and employee involvement moderate the extent of lean’s effectiveness, while hybrid plots further validated the multi-dimensional nature of performance improvements. Thematic analysis of qualitative data underscored managerial perspectives on sustainability, workforce empowerment, and supplier collaboration, aligning with the quantitative results. Overall, the study highlights that lean manufacturing is not a universal blueprint but a context-sensitive operational philosophy whose success depends on organizational culture, leadership, and continuous improvement commitment. These findings contribute both theoretically and practically by offering evidence-based insights for policymakers, managers, and practitioners seeking to achieve operational excellence and long-term competitiveness through lean practices.
Copyright (c) 2025 Amjad Saqib, Samina Khalil (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Global Supply Chain Disruptions:Lessons from COVID 19 Pandemic
The COVID-19 pandemic exposed unprecedented vulnerabilities in global supply chains, disrupting production, logistics, and distribution across multiple industries. This study employed a mixed-methods design, combining quantitative disruption indices derived from trade, transportation, and manufacturing data with qualitative case analyses of healthcare, agriculture, semiconductors, consumer goods, and pharmaceuticals. Results revealed severe contractions in international trade volumes, dramatic increases in shipping costs, and prolonged production delays, particularly in critical sectors such as healthcare and electronics. Table-based analyses highlighted systemic shortages, demand-supply mismatches, and the uneven recovery trajectories across regions, with Asia’s central role as a production hub amplifying ripple effects globally. Figures demonstrated how transportation bottlenecks, semiconductor backlogs, and vaccine distribution lags cascaded across industries, while comparative indices confirmed that healthcare and electronics experienced the most acute disruptions. Importantly, findings indicated that firms and governments adopting diversification strategies, digital technologies, and proactive policy interventions were able to mitigate risks and accelerate recovery. Digital adoption, particularly in AI, blockchain, and IoT, emerged as a cornerstone of resilience, while resilience strategies such as reshoring, nearshoring, and supplier diversification proved effective in shortening recovery cycles. Overall, the study concludes that supply chains must transition from fragile efficiency-driven models toward antifragile systems characterized by redundancy, adaptability, and sustainability. These lessons extend beyond pandemic preparedness, offering strategic insights for managing future shocks, including geopolitical tensions and climate-induced disruptions.
Copyright (c) 2025 Muhammad Taqi Usmani, Shakil Faruqi (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Role of Supplier Relationship Management in Reducing Operational Risks
Supplier Relationship Management (SRM) has become a cornerstone of modern supply chain strategy, offering organizations a systematic mechanism to reduce operational risks and enhance resilience. This study employed a mixed-methods experimental design to investigate how SRM practices—such as collaboration, trust, information sharing, technological integration, and sustainability—contribute to mitigating disruptions, cost volatility, quality failures, and compliance risks. Quantitative analyses demonstrated that organizations prioritizing SRM achieved significantly lower operational risk indices compared to those reliant on transactional procurement models. Regression and structural equation modeling revealed that trust and transparency served as critical mediators in the relationship between SRM and risk reduction, amplifying the benefits of collaborative practices. Qualitative findings highlighted that managers and suppliers perceived SRM as a proactive governance framework that fosters cultural alignment, adaptability, and long-term partnerships. The quasi-experimental interventions further confirmed the causal role of SRM, as firms adopting enhanced SRM initiatives—such as digital platforms for supplier monitoring and sustainability audits—achieved measurable reductions in operational risk levels. Importantly, the study also underscored potential challenges, including technological barriers, power imbalances, and cybersecurity concerns, which may constrain the effectiveness of SRM if not adequately addressed. Collectively, the findings affirm that SRM is not merely a procurement strategy but a strategic governance tool that transforms supplier relationships into partnerships for resilience, sustainability, and long-term competitiveness in uncertain global environments.
Copyright (c) 2025 M. Saeed Nasir, Safdar Ali Butt (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Sustainable Supply Chain Practices and Their Effect on Firm Competitiveness
This study investigates the influence of sustainable supply chain practices (SSCPs) on firm competitiveness through a mixed-method research design integrating case studies, surveys, and quantitative modeling. The analysis focused on firms from diverse industries, examining how sustainability-oriented initiatives such as green logistics, circular economy practices, socially responsible sourcing, and digital-enabled transparency impact competitiveness indicators including cost efficiency, inventory turnover, lead time reduction, service levels, innovation, and stakeholder trust. The results from nine comparative datasets and twelve visual performance models demonstrate that firms adopting SSCPs experience measurable improvements in both operational and strategic outcomes. Inventory turnover and lead time reductions were consistently observed across firms implementing green logistics, while cost savings and service level enhancements were associated with the adoption of circular economy principles and responsible sourcing strategies. Moreover, resilience indicators revealed that sustainability-oriented firms achieved greater stability and adaptability under market disruptions compared to those relying on conventional supply chain models. Figures also illustrated strong positive correlations between sustainability indices and competitiveness scores, highlighting that stakeholder satisfaction and social responsibility metrics directly contribute to long-term competitive differentiation. Although challenges such as high initial costs and complexity of measuring outcomes remain, the study confirms that the long-term benefits significantly outweigh these barriers. The integration of digital technologies such as predictive analytics and blockchain further amplified the competitiveness outcomes of sustainability initiatives by enhancing transparency and adaptability. In conclusion, the findings provide robust evidence that sustainable supply chain practices are not only ethical imperatives but also strategic levers for achieving superior competitiveness. Firms aligning sustainability with innovation, resilience, and stakeholder value creation secure long-term advantages in global markets.
Copyright (c) 2025 Shahid Javed Burki, Muhammad Rehan (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Impact of Just-in-Time Inventory Systems on Supply Chain Efficiency
This study investigates the impact of Just-in-Time (JIT) inventory systems on supply chain efficiency using a mixed-method approach that integrates case study analysis, quantitative efficiency modeling, and comparative performance evaluation. Data drawn from leading organizations such as Toyota, Dell, and Zara, complemented by secondary datasets, were analyzed to examine key performance indicators including inventory turnover, lead time, cost reduction, and service level. The tabular results indicated that firms adopting JIT experienced higher inventory turnover rates and significant cost reductions, while simultaneously shortening lead times and enhancing service levels. Comparative analysis demonstrated that JIT systems outperformed traditional inventory management approaches in terms of operational responsiveness and resource utilization. The visualization of results through multiple line, bar, scatter, and hybrid plots confirmed these trends, highlighting industry-specific variations and long-term efficiency trajectories. While efficiency gains were consistent across cases, the study also revealed inherent vulnerabilities in JIT systems, particularly during disruptions where the absence of buffer stock increases fragility. Nevertheless, resilience analysis showed that firms integrating digital technologies and adaptive practices alongside JIT achieved more balanced outcomes. Overall, the findings underscore the dual nature of JIT: it delivers measurable efficiency benefits in stable environments, but its effectiveness in turbulent conditions depends on integration with digital supply chain visibility, risk management, and sustainability frameworks. This study contributes to theory and practice by offering empirical evidence of JIT’s efficiency-enhancing potential while providing guidance on how firms can balance efficiency with resilience in dynamic global supply chains.
Copyright (c) 2025 Samina Khalil, Khalid Zaman, Farrukh Iqbal (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Role of Basel III Regulations in Banking Sector Resilience
This paper analyzed how the Basel 3 proposal to regulate the banking system resilience was influenced by the effects of the three regimes in regard to the capital adequacy regime, liquidity regulation regime, and risk assessment regime. The review indicates that the greater intensity of the capital strength propositions, specifically the Common Equity Tier 1 (CET1) ratio and the leverage ratios are the main reasons that the new Basel III is significantly increasing the financial stability of the financial institutions. The Net Stable Funding Ratio (NSFR) and Liquidity Coverage Ratio (LCR) have also enhanced the capacity of banks to withstand financial crisis that are liquidity-related thus inducing stability in the financial arena. What the findings indicate is that banks that adhered to such recommendations were less affected by economic shocks particularly the COVID-19 epidemic and subsequent economic pressures. In this article, the author also argues that various jurisdictions modified Basel III by varying the timetable and standard as it best suits them. Even though there may be challenges associated with the identification of a consistent approach to the application of the requirements in a global context, the general findings indicate that the introduction of Basel III helps the cross-industry to manage liquidity and risks more substantially.
Copyright (c) 2024 Khalid Mustafa, Bushra Zaman (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Relationship Between Capital Adequacy and Bank Performance
This study examines the relationship between capital adequacy and bank performance, with a focus on key performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM), using data from banks spanning from 2015 to 2023. The findings suggest a positive correlation between higher Capital Adequacy Ratios (CAR) and enhanced bank stability, with banks maintaining higher capital buffers demonstrating lower risk of insolvency. However, the relationship between CAR and profitability presents a nuanced view. While increased CAR is generally associated with improved ROA, it does not show a strong direct impact on NIM, indicating that high capital adequacy may not significantly constrain banks' net interest income in certain market conditions. The study also identifies the impact of macroeconomic factors, including GDP growth and inflation, on performance indicators. GDP growth positively correlates with ROA, suggesting that a growing economy boosts bank profitability, whereas inflation exerts a negative influence on ROE, reflecting the pressure of rising costs on profit margins. This research contributes to the understanding of how capital adequacy impacts both the stability and profitability of banks, offering valuable insights for regulators, bank managers, and policymakers in shaping strategies that balance regulatory requirements with bank performance.
Copyright (c) 2024 Saifullah, Abdul Ghafoor (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Financial Literacy and Its Effect on Banking Service Adoption
This paper tests the impact of financial literacy on the uptake of banking services using a mixed-methods design which combines both quantitative models and qualitative information. The results of one thousand, two hundred respondents of a survey conducted with the help of regression analysis showed that there is a strong positive relationship between financial literacy level and the adoption of a banking service especially in the area of mobile-banking, digital payment as well as savings products. Logistic regression proved that the higher is the level of literacy, the closer the probability to adopt formal financial services, and thematic analysis of interviews confirmed that literacy creates the sense of security, eliminates the risks, and stimulates proactive activity among the financial institutions. The findings also showed significant demographic gaps: population living in urban areas, younger-aged and tertiary-educated people have been found more literate and adoption than rural populace, the older population, and the less enlightened. The differences due to gender were still observed but not so significant as women demonstrate slightly lower literacy and better commitment to mobile savings tools. Regional differentiation highlighted the importance of infrastructural access on shaping adoption effects, whereas savings behaviour analysis showed that the individuals with higher financial literacy were more consistent in financial planning coefficients and stable against economic turmoil. Taken together, the results reaffirm the importance of financial literacy as a key characteristic of financial inclusion (which interacts with income, education, and infrastructure to affect adoption patterns). The paper has come to the conclusion that financial literacy can be increased with the help of specific education, public enlightenment as well as all-inclusive digital solutions to close the existing gaps in the adoption of banking activities, decrease exclusion and make an objective contribution to more uniform socioeconomic growth.
Copyright (c) 2024 Zafar Mahmood, Muslim Shah, Muhammad Bilal (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Impact of Mobile Banking on Rural Financial Development
Mobile banking has emerged as a pivotal tool in advancing financial inclusion and development in rural areas where access to traditional banking infrastructure is limited. This study employed a mixed-method approach, integrating quantitative econometric modeling with qualitative field analysis, to examine the impact of mobile banking on rural financial development. Results from household surveys and panel data analysis demonstrated that mobile banking adoption significantly increased formal savings, improved access to credit, enhanced agricultural investment, and promoted income diversification among rural households. Spatial econometric models further revealed that benefits extended across communities, indicating positive spillover effects through remittance flows and trade linkages. Qualitative findings complemented these results, showing that mobile banking improved household welfare by facilitating education and healthcare spending, while also highlighting gender disparities and literacy gaps in adoption. The results indicated that mobile banking users exhibited stronger repayment performance and greater resilience during financial shocks, underscoring its role as a catalyst for sustainable development. Nevertheless, the persistence of barriers related to infrastructure, digital literacy, and gender inclusion suggests that policy support is essential to maximize impact. Overall, the study confirms that mobile banking is a powerful driver of rural financial development, but its transformative potential depends on inclusive adoption strategies and supportive regulatory environments.
Copyright (c) 2024 Ishrat Husain, Samina Khalil (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Role of Central Banks in Maintaining Financial Stability
This study examines the importance of the central banks in financial stability by a multidisciplinary approach of mixed methods of quantitative econometric modeling, stress tests, and qualitative policy reviews. The study used IMF, BIS, ECB and Federal Reserve data to conduct Vector Autoregression (VAR), GARCH models and systemic risk measurement like Co VaR to determine how the monetary policy shock propagates and whether or not macroprudential instruments work. Findings of nine statistically significant tables indicated strong sensitivity of systemic stability to interest rate changes, liquidity misalignments and the levels of capital adequacy, whereas the figures visually showed volatility clustering, cross-border spill artifacts and the patterns of resilience across jurisdictions. Simulation experiments on the stress-testing of effects of central banks interventions, including liquidity provision during the crisis and emergency lending facilities restored market operations effectively, yet harbor dangers of moral hazard. The conclusion arising after conducting qualitative analysis of the reports and speeches of central banks made in the 2018-2024 period dwells on the importance of communication and credibility as the factors that cement or liquidate the impacts of policy measures on the financial stability. Examples were given of the complementarity of monetary and macroprudential policies, the difficulties of cross-border coordination, and the changing importance of linking climate and digital finance risks to stability. On balance, the analysis finds that central banks need to be multi-purpose institutions at both the monetary stabilization level and managing systemic risks and crisis backstopping that requires credible and transparent institutional frameworks.
Copyright (c) 2024 Asif Saeed, Nadeem Ul Haque (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Determinants of Customer Loyalty in Retail Banking
This study investigates the determinants of customer loyalty in retail banking through a comprehensive analysis of satisfaction, trust, digital adoption, transparency, and demographic characteristics. Using a combination of nine structured tables and twelve graphical visualizations, the results reveal that satisfaction and trust are the most significant predictors of loyalty, with transparent pricing and robust data security functioning as crucial enablers. Digital banking adoption and mobile service functionality were found to enhance loyalty significantly, particularly among younger and digitally active customers, while traditional factors such as branch accessibility and customer support responsiveness remain influential for older demographics. The analysis also highlighted that middle-aged customers demonstrate the highest loyalty indices, whereas younger customers exhibit greater switching behavior. The findings confirm that customer loyalty in retail banking is driven by both traditional relational attributes and emerging technological factors. The study concludes that a hybrid, omni-channel approach—integrating digital convenience with personalized service quality—is essential for banks aiming to retain customers and sustain long-term competitiveness. These insights contribute to the broader literature by emphasizing the evolving nature of loyalty in the financial services sector and providing strategic guidance for retail banks navigating the digital era.
Copyright (c) 2024 Zafar Mahmood, Abdul Ghafoor (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Bank Consolidation and Its Effect on Market Competition
This study investigates the impact of bank consolidation on market competition by analyzing mergers and acquisitions across global banking systems from 2018 to 2024 using a mixed-methods approach. Quantitative indicators—including the Herfindahl-Hirschman Index (HHI), Lerner Index, Return on Assets (ROA), and Non-Performing Loan (NPL) ratios—were examined alongside qualitative evidence from regulatory documents, policy reviews, and antitrust debates. Results indicate that consolidation consistently increases market concentration, as reflected in rising HHI values, and strengthens market power, as shown by higher Lerner Index scores, while also reducing consumer welfare by lowering deposit rates, raising service fees, and accelerating branch closures in rural and low-income areas. Profitability improved in the short run post-merger but often leveled off or declined in later years, suggesting that efficiency gains are not sustainable over time. Regional analysis highlights divergent outcomes, with European consolidation driven by competitiveness and technological imperatives, U.S. consolidation influenced by shifting antitrust frameworks, and emerging markets displaying context-specific effects on capital structure and access to credit. Qualitative findings reinforce these patterns, showing that consolidation narratives often prioritize efficiency and stability but neglect equity and inclusion. Overall, the study concludes that while consolidation is an inevitable trajectory of modern banking systems, its competitive and social consequences are highly contingent on regulatory environments. Strong antitrust oversight, inclusive policies, and safeguards against excessive market dominance are therefore essential to ensure that consolidation fosters efficiency without compromising consumer welfare and financial stability.
Copyright (c) 2024 Rabia Akhtar, Naeem Akhtar (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Corporate Governance and Risk Management in Commercial Banks
This study investigates the critical relationship between corporate governance mechanisms and risk management outcomes in commercial banks, using data and empirical analysis spanning the period 2018–2024. The results show that governance variables such as board independence, audit committee activity, and ownership dispersion significantly influence banks’ financial stability by improving capital adequacy, reducing non-performing loans, and strengthening liquidity ratios. Banks with robust governance structures demonstrated greater resilience to credit, operational, and liquidity risks, while institutions with weak or overly complex governance frameworks were more exposed to financial vulnerabilities. The findings further reveal that regulatory reforms, particularly Basel III guidelines, amplify the positive effects of governance on risk management, while the integration of artificial intelligence and digital monitoring tools enhanced operational risk oversight. Importantly, governance impacts were found to vary across regions, with emerging markets facing challenges of enforcement and ownership concentration, whereas developed markets exhibited stronger risk moderation through supervisory boards. The study also emphasizes the growing role of environmental, social, and governance (ESG) integration, showing that banks embedding sustainability into governance processes were more resilient to reputational and compliance risks. These insights contribute to the broader literature by bridging governance and risk management discourses, providing evidence that strong governance frameworks are essential not only for financial performance but also for systemic stability. The research concludes that effective corporate governance remains central to ensuring that commercial banks can balance profitability, compliance, and resilience in an increasingly uncertain financial environment.
Copyright (c) 2024 Muhammad Taqi Usmani, M. Saeed Nasir (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Impact of Interest Rate Liberalization on Banking Profitability
This study investigates the impact of interest rate liberalization on banking profitability using a mixed-methods approach that integrates quantitative econometric analysis with qualitative institutional insights. Drawing on a panel of commercial banks across liberalization phases, profitability indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM) were evaluated alongside efficiency measures, risk-adjusted performance, and macroeconomic controls. The results reveal that liberalization generally enhances competition and efficiency, leading to improved profitability in the long run; however, outcomes were heterogeneous across banks. Larger and better-capitalized institutions were able to leverage reforms to diversify income sources and improve efficiency, while smaller banks experienced greater transitional volatility. Tables indicated shifts in net interest margins and rising variability in returns, particularly in the early phases of reform, while figures highlighted positive correlations between profitability indicators and heterogeneity in outcomes across institutions. Efficiency gains, reflected in cost-to-income ratios, emerged as a critical channel for sustaining profitability amid declining spreads, reinforcing the idea that adaptation to liberalized environments requires operational restructuring. At the same time, transitional risks were evident, with volatility clustering and heightened exposure to credit and interest rate risks observed, underscoring the importance of sequencing reforms alongside prudential regulation. Collectively, these findings demonstrate that interest rate liberalization is neither uniformly beneficial nor detrimental, but rather a reform whose success depends on institutional strength, regulatory safeguards, and the capacity of banks to adjust their business models.
Copyright (c) 2024 Asif Saeed, Ishrat Husain (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Role of Microfinance in Promoting Financial Inclusion
This study examines the role of microfinance in promoting financial inclusion through a mixed-methods approach that integrates quantitative econometric analysis with qualitative insights. Data from surveys, institutional records, and interviews were analyzed to assess how microfinance influences access to and use of financial products, with a focus on credit, savings, insurance, and digital adoption. The results reveal that microfinance significantly improves financial access for low-income households, rural populations, and women, thereby reducing traditional barriers to inclusion. Quantitative findings demonstrate that clients engaged with microfinance exhibit higher repayment rates, greater savings discipline, and increased adoption of digital transactions. At the same time, the construction of a composite financial inclusion index shows that most clients fall into the “moderate inclusion” category, with fewer achieving “high inclusion,” highlighting both progress and persistent gaps. Qualitative evidence underscores the importance of financial literacy, trust, and social norms in shaping financial behaviors, particularly among women, who although more reliable in repayment, remain disadvantaged in loan access and enterprise financing. The analysis also indicates that microinsurance uptake remains limited, with health insurance dominating demand while crop insurance is underutilized, reflecting both structural supply issues and risk perception. Moreover, enterprise outcomes suggest that microfinance supports small business growth and employment creation, though agricultural enterprises display revenue volatility. The study concludes that microfinance is evolving into an integrated platform for inclusive financial ecosystems, but sustainable financial inclusion requires complementary strategies such as targeted literacy programs, responsible digital finance, gender-sensitive policies, and stronger consumer protection frameworks.
Copyright (c) 2024 Safdar Ali Butt (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Link Between Corporate Tax Policies and Shareholder Value
This study investigates the relationship between corporate tax policies and shareholder value using a mixed-methods approach that integrates econometric modeling, event study analysis, and qualitative content examination. Drawing on firm-level data across multiple jurisdictions, the research reveals that reductions in statutory and effective tax rates significantly enhance shareholder value by increasing free cash flow and lowering the cost of capital. Event study evidence shows that financial markets promptly incorporate tax policy changes, with abnormal returns being more pronounced among firms previously exposed to high tax burdens. However, the results also indicate heterogeneity: multinational firms benefit disproportionately from cross-border tax planning opportunities, while domestically focused or highly leveraged firms face constraints that limit value creation. The qualitative analysis of managerial disclosures supports the quantitative results, showing that tax relief often translates into short-term payouts such as share repurchases and dividends rather than long-term investment. At the same time, innovation-related tax incentives were found to moderately increase R&D expenditure, though their impact on long-term growth remains mixed. The study also highlights the emerging role of global tax coordination, particularly the OECD’s Pillar Two initiative, which is expected to diminish the effectiveness of profit shifting and reorient shareholder value toward genuine productivity and innovation. Taken together, these findings underscore that corporate tax policies not only influence immediate financial outcomes but also shape strategic corporate behavior and investor expectations, making them a pivotal determinant of shareholder value in both domestic and global contexts.
Copyright (c) 2023 Javed A. Ansari (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
The Effects of Internal Controls on Financial Statement Reliability
This study investigates the effects of internal controls on the reliability of financial statements using a mixed-method research design that integrates both quantitative econometric analysis and qualitative validation. A panel dataset of firms from 2018 to 2022 was analyzed through regression modeling, generalized method of moments (GMM), and a difference-in-differences (DiD) approach to test the causal impact of internal control effectiveness on reporting reliability. Financial statement reliability was proxied by indicators such as restatement frequency, discretionary accruals, audit report lag, and earnings response coefficients. The findings reveal that firms with strong internal controls consistently exhibit higher quality financial reporting, reflected in fewer restatements, reduced accrual manipulation, timelier audit completion, and greater investor responsiveness to earnings announcements. Importantly, the remediation of disclosed internal control weaknesses led to measurable improvements in financial reporting outcomes, underscoring the substantive—not merely procedural—value of internal control systems.The qualitative analysis, based on semi-structured interviews and textual examination of risk disclosures, reinforced these quantitative results by highlighting recurring challenges such as segregation of duties, IT control deficiencies, and inadequate documentation. Moreover, the evidence indicated that governance mechanisms, particularly audit committees and management’s tone at the top, play a crucial role in ensuring that internal controls translate into credible reporting practices. Taken together, these findings suggest that effective internal control systems not only mitigate risk and enhance transparency but also strengthen stakeholder trust and lower financing costs. The study contributes to the growing body of literature by providing empirical evidence and practical insights into how the design and remediation of internal controls directly shape the reliability of financial statements.
Copyright (c) 2023 Muhammad Taqi Usmani (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Accounting Conservatism and Its Role in Earnings Management
This study investigates the role of accounting conservatism in constraining earnings management, employing a mixed-methods approach that integrates quantitative analysis of archival data with qualitative evidence from practitioner interviews. Using a panel of international firms between 2015 and 2022, conditional conservatism was measured through Basu’s asymmetric timeliness model, while accrual-based and real earnings management were assessed using the modified Jones and Roychowdhury models, respectively. The results reveal that conservatism significantly reduces accrual-based earnings manipulation by limiting managers’ discretion over income-increasing accruals. However, the findings also show a substitution effect, whereby managers increase reliance on real activity manipulation under stronger conservative regimes, particularly through adjustments to production and discretionary expenditures. Qualitative evidence further highlights that managers and auditors perceive conservatism as both a safeguard that enhances financial credibility and a reporting burden that restricts flexibility, particularly in conveying positive performance and pursuing innovation. Additionally, the study finds that conservatism enhances resilience during economic uncertainty, as observed during the COVID-19 period, but may simultaneously contribute to underinvestment in high-risk, long-term projects. Overall, the results demonstrate that conservatism acts as a governance tool with both benefits and limitations, constraining opportunism in one dimension while reshaping it in another. The integrated findings suggest that regulators and practitioners must carefully calibrate the use of conservatism to balance reliability, relevance, and managerial incentives in financial reporting.
Copyright (c) 2023 Khalid Iqbal, Muslim Shah (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Auditor Rotation Policies and Their Influence on Audit Effectiveness
This study investigates the influence of auditor rotation policies on audit effectiveness through a mixed-methods approach integrating both quantitative and qualitative analyses. Using archival financial data and survey evidence, the research demonstrates that mandatory auditor rotation enhances independence and professional skepticism, contributing positively to audit quality indicators such as reduced discretionary accruals, improved transparency, and lower cost of debt. Regression analyses revealed a statistically significant association between auditor rotation and improved audit quality, while thematic insights from interviews highlighted auditors’ perceptions of increased objectivity and accountability. However, the study also found that the transition period following rotation may temporarily reduce audit quality due to the loss of client-specific knowledge. This challenge was observed to be mitigated by the presence of robust audit committees and structured handover mechanisms. The integration of results confirms that while auditor rotation is not a universal remedy, when complemented by governance safeguards and contextualized within jurisdictional frameworks, it can significantly strengthen trust in financial reporting and bolster the overall effectiveness of audits.
Copyright (c) 2023 Nadya Qamar Chishty (Author) https://creativecommons.org/licenses/by-nc-nd/4.0
Comparative Study of Financial Reporting Standards: IFRS vs. Local GAAP
This study investigates the comparative impact of IFRS (International Financial Reporting Standards) and Local GAAP (Generally Accepted Accounting Principles) on the financial performance and transparency of firms. Through a detailed analysis of financial metrics, including revenue, net income, liquidity ratios, asset valuation, and earnings volatility, the study demonstrates that IFRS adoption leads to higher profitability, more stable earnings, and better overall financial performance compared to Local GAAP. The results reveal that firms using IFRS report higher revenue and net income, exhibit lower earnings volatility, and maintain stronger liquidity and capital structure. Furthermore, stakeholder perception surveys indicate that investors, auditors, and analysts perceive IFRS firms as more reliable and transparent, which enhances market efficiency and investor confidence. The study also shows that IFRS offers more accurate asset valuations and reduces discrepancies in revenue recognition, thereby improving financial comparability across firms. However, the study also highlights the challenges of adopting IFRS in emerging markets, where Local GAAP remains prevalent, often due to institutional constraints and lack of adequate training. The findings suggest that while IFRS adoption improves global financial integration, future research should explore the long-term effects of IFRS on firm valuation, market behavior, and capital flows, especially in regions with weaker regulatory oversight.
Copyright (c) 2023 Shameel Khan (Author) https://creativecommons.org/licenses/by-nc-nd/4.0