International Journal of Applied Economics, Finance and Accounting

Comparative Analysis of Business Valuation Methods: A Practical Examination Using Discounted Cash-Flow and Economic Value-Added Approaches

2025-06-16T14:48:41+00:00

This study responds to inquiries regarding the practicality of valuation methods, focusing particularly on the Discounted Cash Flow (DCF) and Economic Value Added (EVA) approaches, employing a real company as the subject of valuation. The research highlights the DCF method’s viability in real-world applications, emphasizing its market standard status and pivotal role in company valuation from an investor’s perspective. Despite its complexity, the DCF method is lauded for its ease of use, time efficiency, and forward-looking perspective. Recognizing the subjective nature of valuation procedures, the study acknowledges the ability to influence value as a recognized risk, but it is essential for informed investment decisions. Conversely, while EVA is recognized as an intriguing theoretical approach, a gap between its theoretical promise and practical application is revealed, particularly in the case of small and medium-sized businesses (SMEs). Despite its structural practicality, EVA is underutilized in real-life scenarios. A comparison between DCF and EVA suggests that the former is more time-efficient and commonly used for investment purposes, with existing calculation templates enhancing its appeal. Despite underlying assumptions, the DCF method remains relevant and holds significant weight in company valuations, standing out as the preferred method alongside multiples.

Foreign Exchange Management Regime and Stock Market Capitalisation in Nigeria

2025-06-16T14:53:17+00:00

Exchange rate continue to be a significant macroeconomic factors in any economy. The exchange rate has consistently become more volatile despite multiple attempts to stabilise the Naira's value, mostly through monetary policy tools. Therefore, the study examined the effect of foreign exchange management regimes on stock market capitalization (SMC) in Nigeria from 1986 to 2022. An ex-post factor research design was adopted while the estimation techniques for the study was Autoregressive Distributed Lag (ARDL). Findings revealed that during the floating exchange rate period, exchange rate, balance of payments, external reserves, and inflation rate have negative effect on stock market capitalization, though insignificantly. However, foreign direct investment (FDI) and foreign portfolio investment (FPI) positively and significantly influence market capitalization. Conversely, under the fixed exchange rate regime, exchange rate, balance of payments, external reserves, and inflation have negative effect on market activity. This study concluded that under floating exchange rate regime, FDI continue to be a catalyst to stock market capitalisation. The study recommends targeted policies to attract foreign investments, including incentives and infrastructure improvements, along with a continuous evaluation of foreign exchange policies to support a stable, growth-oriented stock market environment.

The Role of Education in Driving Economic Growth in Lebanon

2025-06-16T14:58:11+00:00

This study explores the relationship between government expenditure on education and economic growth in Lebanon over the period 1993–2023. It aims to assess whether public investment in education contributes positively to economic development.The research employs a quantitative approach using time-series data obtained from the World Bank. The relationship between government spending on education and GDP growth was analysed using the Stata software to estimate the model and test the significance of key variables.Contrary to prevailing economic theories, the results indicate a negative relationship between government spending on education and economic growth in Lebanon. This finding challenges the conventional belief that investment in education necessarily fosters growth, highlighting the importance of examining the quality and efficiency of such spending. The inverse relationship suggests that education spending in Lebanon may suffer from inefficiencies, poor allocation, or systemic issues that limit its positive impact on growth. This underscores the need for structural reforms in the sector.The study recommends a comprehensive reform strategy that includes better governance of public funds, administrative reform, increased transparency, improved teacher recruitment and training, and innovation in curricula. Such changes are crucial to enhancing the effectiveness of educational investment and its contribution to economic growth.

Cultural Influences on the Quality of Anti-Corruption Disclosure in the Banking Sector

2025-06-16T15:05:42+00:00

This paper aims to investigate the impact of cultural values on Anti-corruption disclosure (ACD) quality in the MENA region. ACD is an essential tool to fight against corruption. It is considered a major part of corporate social responsibility (CSR) reporting due to its inconsistency with sustainable development because of its severe social, economic, and environmental impacts. 354 observations from 55 MENA region banks are studied from 2013 to 2019. The countries that are studied include Lebanon, Egypt, Jordan, and Saudi Arabia. This study is among the first to study the impact of all of Hofstede's six cultural dimensions on ACD which enhances the knowledge in this area and fills the literature gap. A content analysis is accomplished for the bank’s annual reports, CSR reports, and sustainability reports. Two measures are used for ACD: First, disclosure extent and extensiveness are measured using the number of words. Second: Disclosure breadth is measured through Transparency International-UNGC Reporting Guidance ratings of ACD. Several statistical methods were used: descriptive statistics, linear regression, and Pearson correlation. The findings show a significant negative association with power distance and a significant positive association with indulgence which supports the institutional theory and contributes to the literature by providing more insights to policy-makers and standards-setters to take cultural dimensions into consideration in the formation and enforcement of anti-corruption laws.

Auditors’ Intentions to Use Blockchain Technology: Do Trust in Technology, UTAUT Factors, and Age Matter?

2025-06-16T15:10:34+00:00

This study examines the effect of trust in technology and the Unified Theory of Acceptance and Use of Technology (UTAUT) on auditors’ intention to use Blockchain technology (BT). This study also aims to explore how age moderates the relationship between trust in technology, the UTAUT, and auditors’ intention to adopt BT (AIABT). Data from 332 Lebanese auditors were analyzed using partial least squares structural equation modeling (PLS3-SEM), and findings show that trust in technology and UTAUT factors significantly impact AIABT. Besides, results show that age doesn’t moderate the role between trust in technology, UTAUT factors, and AIABT. According to researchers’ this study is among the first to investigate the variables affecting AIABT in Lebanon. This study highlights the practical implications of BT adoption in auditing in Lebanon by pointing out the need for case studies, workshops, educational programs, investing in IT systems, and developing regulatory frameworks to build trust and boost credibility in BT adoption.

Can Green Accounting Finance Promote Energy Resilience: Fresh Insights from New Estimation

2025-06-16T15:17:13+00:00

Green accounting financing (GAF) is crucial for restructuring energy use, change, and efficiency. Few studies look at finance’s role in facilitating energy transition despite the paucity of investigation on how GAF impacts energy safety. This study set out to analyse the impact of green accounting finance (GAF) on a nation’s energy security (ES). By examining the nexus between GAF and ES, we investigated a sample of 66 nations from 2000 to 2023. Utilising Panel-Corrected Standard Errors (PCSE) and Feasible Generalized Least Squares (FGLS) and incorporating four explanatory variables, the study has found that green accounting finance significantly improves energy security. The Autoregressive Distributed Lag (ARDL) method was further implemented to understand both the long-run and short-run impacts on energy security. The findings of this method indicate that the influence of green accounting finance persists in the long horizon, highlighting the importance of focusing on green accounting finance initiatives. More importantly, maintaining GAF depends heavily on institutional quality. We test our hypothesis by combining green accounting finance variables with those that represent institutional excellence. The impacts of green accounting finance become more pronounced in countries with well-designed institutional systems. Our findings indicate that promoting green accounting finance is essential for countries to achieve and maintain energy security.

Geographical Insights into the Reward-Based Crowdfunding Market of the European Union

2025-06-16T15:27:08+00:00

Geographical biases in investment decisions, where investors favor domestic assets, remain a persistent puzzle in international macroeconomics. Despite numerous rational theories, these biases often defy explanation. The rise of online crowdfunding, which fosters peer-to-peer interactions, promises to overcome geographical limitations and bring a more globalized approach to funding. Yet, many studies continue to reveal that investors tend to favor local opportunities. In light of this, we argue that rather than broad international studies, future research should focus on specific regions where economic, political, and cultural similarities might shape investor behavior. The European Union (EU), an area that has been largely overlooked in this context, provides a unique setting for such an analysis. Our exploratory study delves into the reward-based crowdfunding market within the EU, examining the geographical distribution of projects and funders, the biases within this market, and their impact on funding success. We observe that the EU market is highly concentrated in its largest economies. By employing Quasibinomial-Logit-Regression and linear regression models, we find evidence of strong national proximity biases and no significant evidence of cross-border funding biases among EU member states. Additionally, our regression results reveal that these home-country preferences have a detrimental effect on funding success, as funders from more distant regions tend to contribute higher amounts. These findings provide valuable insights into the dynamics of geographical biases and their consequences in the EU crowdfunding landscape.

Food Security in Africa: Challenges of Climate Change and Energy Opportunities

2025-06-21T05:44:30+00:00

Climate change is regarded as one of the most significant challenges facing humanity in the 21st century. Rising temperatures and decreasing rainfall are expected to put pressure on resources, especially for agriculture and food production. This study addresses this issue by adopting a panel data approach in an attempt to examine the impact of climatic factors on food security in Africa from 2000 to 2020 for a sample of 12 countries. In order to empirically investigate the link between the three components, climate change, food security, and renewable energy, a combination of estimation models must be implemented, including the fixed-effect model, the random-effect model, and the feasible general linear least squares (FGLS) regression model. Furthermore, a series of diagnostic tests are incorporated to assess the validity and robustness of the estimated model. Specifically, it examines the presence of the autocorrelation, heteroskedasticity, and the normality of residuals, ensuring that the model satisfies the fundamental statistical assumptions required for reliable inference. The empirical results conducted in this study confirm that the use of renewable energy has a significant negative impact on food security, while the climatic factors, temperature and precipitation, a positive influence on the food security significantly.

The Impact of Cybersecurity Assurance on the Quality of Internal Audit at The Financial Technology Companies in Jordan: The Moderating Role of COBIT 2019

2025-06-21T06:19:50+00:00

Investigate the impact of cybersecurity assertions across its five dimensions (data security, system security, network security, operational security, and physical security) on the quality of internal auditing in FinTech companies operating and examined the role of the COBIT2019 framework as a moderating variable in this relationship. The research relied on a descriptive analytical approach. The study targeted employees of the internal audit, cybersecurity, and IT governance departments in FinTech companies. A total of 180 questionnaires were distributed, and 143 valid responses were obtained for analysis. Cybersecurity assurances have a positive impact on internal audit quality. System security is considered the most influential factor in internal audit quality. The COBIT2019 framework also strengthens this impact by aligning governance and audit processes. The COBIT 2019 framework provides a systematic mechanism for aligning cybersecurity requirements with internal audit standards, and contributes to enhancing integration between information security units and audit teams, leading to improved integration of risk management and decision-making. Fintech companies build a governance framework that ensures their effectiveness by adopting the COBIT 2019 standards as a foundation for digital governance and measuring the compliance of IT governance practices with the International Standards for Internal Auditing.