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This study aims to conduct a comprehensive methodological review, exploring the strategies used to address endogeneity within the realms of corporate governance and financial reporting.

This research reviews the application of various methods to deal with endogeneity issue published in the 10 journals covering the corporate governance discipline included in the Web of Science’s Social Sciences Citation Index.

With a focus on empirical studies published in leading journals, the author scrutinizes the prevalence of endogeneity and the methodologies applied to mitigate its effects. The analysis reveals a predominant reliance on the two-stage least squares (2SLS) technique, a widely adopted instrumental variable (IV) approach. However, a notable observation emerges concerning the inconsistent utilization of clear exogenous IVs in some studies, highlighting a potential limitation in the application of 2SLS. Recognizing the challenges in identifying exogenous variables, the author proposes the generalized method of moments (GMM) as a viable alternative. GMM offers flexibility by not imposing the same exogeneity requirement on IVs but necessitates a larger sample size and an extended sample period.

The paper sensitizes researchers to the critical concern of endogeneity bias in governance research. It provides an outline for diagnosing and correcting potential bias, contributing to the awareness among researchers and encouraging a more critical approach to methodological choices, recognizing the prevalence of endogeneity in empirical studies, particularly focusing on the widely adopted 2SLS technique.

Practitioners, including corporate executives and managers, can benefit from the study’s insights by recognizing the importance of rigorous empirical research. Understanding the limitations and strengths of methodologies like 2SLS and GMM can inform evidence-based decision-making in the corporate governance realm.

The purpose of this study is to investigate the intricate relationship between digitalization, entrepreneurship and financial/digital literacy in the Nordic countries from 2010 to 2022. By integrating both demand (social impact) and supply (business response) perspectives, the research aims to provide a comprehensive understanding of how digital transformation influences entrepreneurial activities. It addresses gaps in the existing literature, particularly the need for long-term analysis and the exploration of entrepreneurial actions within specific systemic contexts.

Several indicators were used to measure digitalization, entrepreneurship and financial/digital literacy from secondary sources. The methodology employed in this study involved the estimation of dynamic linear models to investigate the evolving relationship between digitalization and entrepreneurial activity. First, a bias-corrected test for the Granger noncausality test was used. After this preliminary analysis, the estimation autoregressive model with bias correction and time effects was applied, followed by an alternative model entitled the autoregressive distributed lag model (ARDL), selecting the pooled mean group and dynamic fixed effect estimators.

Key findings highlight the pivotal role of digitalization drivers such as e-commerce, CRM integration and investments in R&D in shaping innovative business models. Furthermore, the study emphasizes the entrepreneurial potential unleashed by widespread Internet adoption, particularly among diverse countries. The results also reveal the significance of R&D in periods of disruption and the intertwined relationship between digital and financial literacy and entrepreneurship. Notably, the study underscores the importance of a holistic understanding as e-commerce and e-banking intertwine to enhance financial and digital literacy.

Practical implications suggest policymakers support entrepreneurs through training programs, while businesses are encouraged to adapt strategies and prioritize innovation in digital environments. The study advocates for a strategic and long-term perspective to address the implications of digitalization on entrepreneurship, highlighting the critical role of research and development in fostering innovation during disruptive phases.

The novel contribution of this research lies in its thorough examination of the intricate relationship between digitalization, entrepreneurship and financial/digital literacy, particularly within the Nordic countries. By bridging gaps in existing literature and focusing on entrepreneurial behaviours within specific systemic contexts, the study offers valuable insights into the nuanced dynamics at play.

The paper aims to comparatively examine the impact of risk governance disclosure (RGD) on the market valuation of firms in Sub-Saharan Africa (SSA) and the mediating role of institutional investment and national governance bundles (NGB).

Using a dynamic system generalized method of moments estimation to control for endogeneity, the data for this research is manually collected from the annual reports of small and large firms in Nigeria (80 firms) and South Africa (100 firms) for the period 2012–2017 (900 firm years).

The authors find that firm RGD directly impacts firm valuation positively, but this association is significantly mediated by national governance practices (bundles) and institutional investment. The authors also develop a conceptual framework that shows the direct and indirect impact of RGD on firm market valuation.

The paper contributes to the comparative corporate governance literature in three ways. First, the authors show that differences in country-level RGD are explained by the maturation of governance regulations and institutions in each country. Second, despite the differences in the level of maturity of governance institutions across countries, stock markets value risk governance information. Finally, the study develops a conceptual framework that addresses prior inconsistent findings by showing that firm-level NGB and institutional investment significantly mediate the association between RGD and market valuation.

The study investigates the role of macroeconomic policies in driving capital market development in emerging African countries where the markets are relatively active. It aims to determine the effects of these policies in pre-pandemic period vis-a-vis the post-pandemic period.

The generalized method of moments (GMM) and auto-regressive distributed lag (ARDL) are employed in estimating the role within the period 2012Q1-2023Q3. The panel unit root test is used to ascertain the stationary status of variables, while maximum likelihood estimator is employed to determine structural stability of the model.

The empirical results reveal that fiscal and monetary policies played significant positive role in capital market development in both pre- and post-pandemic periods. On the other hand, trade policy and investment return had significant impact in pre-pandemic period which could not be sustained in post-pandemic period. It is only exchange rate policy that remained insignificant in both periods. The findings therefore suggest that capital market development slowed in the post-pandemic period due to reduced performance of macroeconomic policies. Furthermore, the unit root test reveals that all the variables satisfy empirical properties that ensure estimation results are consistent and non-spurious. The maximum likelihood estimator showed there was long-term structural break, hence short-term impacts were used in comparative analysis.

Macroeconomic policies are fundamental to financial market development in developing countries. The role in resuscitating capital market in the post-pandemic period has yet to be adequately investigated in African countries. This study is carried out to fill this void.

This paper examined the interactive role of Political Cycles on the relationship between Fiscal Policy and Capital Flight in Africa.

A two-step System Generalized Methods of Moment empirical estimator was employed. This study used data on 40 African countries from 2009 to 2018.

The findings revealed that the interaction between political structures and fiscal policy is positive and significant, indicating that fiscal policies during election periods or different regimes would increase capital flight. The study found that political cycles positively affect capital flight, indicating that election periods and possible government changes promote capital flight activities. The tension and volatile atmosphere characterizing election periods in most African countries cause investors to use all alternatives, including illegal systems, to fly funds to a potentially stable economy.

This study recommends that government and policymakers maintain fiscal discipline during election years and enact pragmatic policies to ensure the continuity of critical fiscal policies to promote business climate and economic stability, especially when there is a change in government.

This study contributes to capital flight literature in two forms. One, the study, to the best knowledge of the authors, is the first to proxy tax with corporate tax (a sound proxy for tax within the business space). Also, this study is the first to empirically show that elections worsen the effect of fiscal policy on capital flight in Africa.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2024-0130

The study evaluates the role of institutional framework and macroeconomic instability on financial market development among emerging economies.

The study uses panel data compiled from 32 countries from the sub-region of Sub-Sahara Africa (SSA), covering the period starting from 1996 to 2019. Empirical analyses were carried out using the two-step system generalized method of moments (TS-GMM) statistical framework.

Reviewed results suggest that institutional quality, effective governance and corruption control have a significant positive impact on financial market development among economies in the sub-region. Further empirical estimates show that macroeconomic risk and macroeconomic uncertainty have significant adverse effects on financial market development. Additionally, reported empirical estimates suggest that an improved institutional framework has the potential to lessen the adverse effect of macroeconomic instability on financial market development among economies in the sub-region.

The uniqueness of this empirical inquiry compared to related studies in the present literature stems from the fact that studies employing similar empirical approaches on the subject matter for economies in the sub-region are rare. Additionally, the analysis pursued in this study employs critical variables whose impact on financial market performance in the sub-region has not been examined per our review. These variables include indexes such as macroeconomic risk and institutional quality, which are unique to this study based on their construction; these indexes are generated using a principal component analysis procedure with different underlying variables compared to what may be found in the literature.

The study aims to investigate the association between climate change financial disclosure and financial performance, considering the moderating effect of industry sensitivity on developing nations.

The study analyzes a panel data set of 93 non-financial companies from developing countries listed in the Fortune Global 500 from 2018 to 2022. The authors have used system generalized method of moments model followed by two-stage least square model and fixed effects model to test the hypotheses. Three cultural dimensions and a sub-sample analysis have been included to check the robustness of the results.

The findings indicated that climate change financial disclosure negatively affects financial performance, supporting the propositions of neoclassical theory of corporate social responsibility. Also, climate sensitivity negatively moderates the relationship between climate change disclosure and market performance. The results are robust to alternative estimation techniques, country differences and sectors.

To the best of the authors’ knowledge, this is a novel attempt to examine the impact of climate change disclosure on financial performance in a cross-country context using the task force on climate-related financial disclosure (TCFD) framework. It also contributes to the existing literature by incorporating climate-sensitive sectors as moderating variables. The study recommends a mandatory “framework of law” to protect the environment.

The persistent occurrence of extreme weather events redirects both public and private resources, constrains economic expansion, employment opportunities and threatens the well-being of Africans. To provide an empirical econometric update, this study examines the unconditional effects of extreme weather events on economic growth. Also, it disaggregates weather events into floods and droughts to determine which is more consequential to economic growth. The paper further examines the distribution of economic growth at which extreme weather events may be more consequential.

The study deploys the system generalized method of moments estimation strategy, in addition to the method of moment quantile regression.

The results show that extreme weather event is detrimental to economic growth. Among the types of weather events, the incidence of drought has a consequential impact on economic growth while floods do not.

The gross implication of these findings is that policy makers and governments in Africa need to be proactive at least in devising robust adaptive capacities to combat extreme weather events. Also, more efforts need to be invested in understanding the adverse effects of extreme weather events on economic growth.

This study provides novel econometric evidence on the effects of extreme weather events on economic growth and disaggregates weather events into floods and droughts. In addition, the study examines the distributions of economic growth at which extreme weather events may be more consequential.

This study aims to develop an educational tourism demand model, particularly in respect to dynamic effects, university quality (QU) and competitor countries. Educational tourism has been identified as a new tourism sub-sector with high potential, and is thus expected to boost economic growth and sustainability.

This study reviews the literature on the determinants of educational tourism demand. Even though the existing literature is intensively discussed, mostly focusing on the educational tourism demand from an individual consumer's perspective, this study makes an innovation in line with the aggregate demand view. The study uses data that consist of the enrolment of international students from 47 home countries who studied in Malaysia from 2008 to 2017. The study utilised the dynamic panel method of analysis.

This study affirms that income per capita, educational tourism price, price of competitor countries and quality of universities based on accredited programmes and world university ranking are the determinants of educational tourism demand in both the short and the long term. Also, a dynamic effect exists in educational tourism demand.

The results imply that government should take the quality of services for existing students, price decisions and QU into account to promote the country as a tertiary education hub and achieve sustainable development.

Research on the determinants of the demand for educational tourism is rare in terms of macro data, and this study includes the roles of QU, competitor countries and dynamic effects.

The purpose of this study was to leverage agency theory to examine the impact of board attributes on cash flow management in Ghana’s financial institutions.

Data for the study was collected from the annual published financial statements of selected financial institutions, which were obtained from their respective websites. The sampling technique used was purposive, resulting in the selection of 15 financial institutions in Ghana, of which 10 were listed on the Ghana Stock Exchange and 5 were non-listed. The study covered a period of 10 years, ranging from 2011 to 2020. The two-step generalized method of moments estimation was used to determine the relationship between the board attributes and cash flow management.

The study found that board size had a positive and significant influence on net cash flow from operating, investing and financing activities. The study also discovered that the proportion of nonexecutive directors had a positive and significant influence on net cash flow from operating, investing and financing activities. In addition, it was revealed that the proportion of female directors on the board exhibited a positive and significant influence on net cash flow from operating activities but a negative and significant influence on net cash flow from investing and financing activities.

The study recommends increasing female representation on corporate boards to 25%, as women bring valuable skills, knowledge and experience that positively impact the financial institutions’ cash flows.

This study focused on the impact of board attributes on cash flow management within Ghana. It explored how corporate governance affects strategic decisions related to cash flow management, contributing original insights to this field of research.