Purpose Expected returns and risk are critical variables in financial analysis. This study demonstrates that investors’ perceptions of these factors are shaped not only by fundamental economic variables, as traditional finance suggests but also by psychological states such as distress and mood. Design/methodology/approach Data from Thai investors were collected through an online survey. We used regression and logistic regression to test the hypotheses. Findings Positive moods increase perceptions of expected returns and risk, while negative moods reduce these perceptions. Higher depression levels negatively impact investors’ perceptions of expected risk. Investors’ mood intensity, especially negative moods and higher depression levels, negatively impacts risk perception in the short term. Additionally, negative moods decrease the likelihood of optimism toward risk perception in the long term. Practical implications Financial advisors and investment firms can enhance their services by integrating psychological assessments into their client evaluations. Such assessments must be handled with great care, ensuring that clients give explicit consent and that their psychological data are protected in accordance with ethical standards. This approach allows for a deeper understanding of clients’ emotional and psychological states, leading to more personalized investment strategies. Additionally, investment firms can develop tailored products that address investors’ emotional and psychological needs, promoting more balanced decision-making and improving overall satisfaction. Originality/value We assess perceptions of expected returns and risk by collecting data directly from investors. We also evaluate investors’ psychological traits and moods with widely recognized psychological tools, including the Patient Health Questionnaire-9 and the Positive and Negative Affect Schedule.

Purpose Green innovation by organisations has the potential to create social impact across five dimensions: social capital, collective identities, environmental literacy, community well-being and human capital. However, the link between green innovation and these dimensions of social impact is underexplored, particularly in developing countries such as Vietnam, where environmental policies are still being framed. Thus, this study provides an exploratory analysis of the social impact of green innovation undertaken by organisations in Vietnam. Design/methodology/approach The perspectives of a focal organisation in Vietnam and three related stakeholders are examined. Data were obtained from the research participants using a photo-elicitation interviewing strategy with concept cards. A hybrid deductive–inductive approach to thematic analysis identified five themes. Findings There is evidence that green innovation positively influences social impact across the five identified dimensions. Additionally, the analysis suggests that green innovation can generate spillover effects amongst stakeholder organisations. Research limitations/implications An obvious limitation of this study is that it is based solely on interviews of executives and managers linked to a focal organisation that is already undertaking green innovation. Due to time and resource limitations, it was not possible to examine other sources of information, such as documentary evidence, which would have increased the reliability of the data. Practical implications This paper makes two contributions. First, it presents stakeholders’perceptions of the social impact of an organisation’s implementation of a green innovation strategy. Second, the study demonstrates the use of a novel photo-elicitation technique – concept cards – in undertaking interviews with busy business executives. Such an approach has rarely been used in business settings. Social implications This study provides managers with a framework for measuring the social impact of their green initiatives. It is no longer sufficient to evaluate a firm’s financial performance alone. With a growing emphasis on the United Nations Sustainable Development Goals, managers must be able to report the impact of their work beyond business boundaries. Our research findings are also insightful for policymakers working in innovation-related government, providing a comprehensive framework for evaluating the social impact of innovation. Originality/value This study investigates the emerging concept of green innovation using a novel “concept cards” interviewing technique. The perceptions of individuals from a sample of organisations in Vietnam provide a practical foundation for organisations’ future development of effective green innovation strategies.

Purpose This study examines the relationship between exercise self-efficacy (ESE) and student commitment (SC) to address challenges in business school student engagement and retention. We aim to close the empirical gap between ESE and SC and explain the role of cultural values by exploring how individualism and collectivism (IC) shape the ESE–SC relationship within different cultural contexts. Design/methodology/approach Over 1,300 undergraduate students from the United States of America and Vietnam participated in three studies. Study 1 used regression analyses to examine ESE–SC in a USA university. Study 2 investigated potential moderating effects of IC in Vietnam. Study 3 tested the replicability of findings with a diverse USA sample, further analyzing the relationship between ESE, SC and IC. Findings Study 1 found a negative ESE–SC relationship. Study 2 observed a positive ESE–SC relationship in Vietnam. Study 3 confirmed the positive ESE–SC relationship and demonstrated significant IC moderation. Research limitations/implications We used self-reported measures and a cross-sectional design with undergraduate student samples. Findings contribute to the self-efficacy and commitment literature, underscoring the instrumental role of cultural dimensions in moderating the relationship between ESE and SC, while advancing scholarship on commitment and providing evidence that ESE can be a significant predictor of academic outcomes. Practical implications For business schools, promoting ESE among students could serve as a strategic tool for enhancing SC, which ultimately supports and enhances their retention and accreditation targets. Originality/value Empirical support for an ESE–SC relationship reveals that cultural values moderate the ESE–SC relationship.

Purpose This study investigates the causal impact of pilot free trade zones (PFTZs) on Chinese outward foreign direct investment (OFDI). Design/methodology/approach The study uses the concept of ownership advantage (OA) to derive the conceptual link between PFTZs and OFDI. Using Chinese provincial data from 2003 to 2022, the study employs various difference-in-difference estimators to estimate homogeneous and heterogeneous treatment effects. Findings Assuming a homogeneous treatment effect on the treated, implementing a PFTZ spurs OFDI. However, considering heterogeneity in treatment effects over cohorts and time diminishes the evidence for a positive impact. A positive causal effect on OFDI is established only for the Shanghai (China) PFTZ. Practical implications As China is a leading emerging economy with a state-driven development model, this study has significant implications for other developing and middle-income countries seeking to leverage PFTZs – or similar special economic zones – to stimulate OFDI. Originality/value This study conceptually links PFTZs to OFDI through the OA framework and explicitly models heterogeneity of effects across batches of PFTZs and over time. The latter is essential, as institutional differences across PFTZs may result in varying degrees of generation and overseas exploitation of OAs.

Purpose This research aims to develop a model built from the job demand-resource (JD-R) theory which explains the psychological mechanism that leads to academic work-related stress in an educational context. This study investigates the conditional effect of ambidextrous working hard through mediation paths and the moderating role of perceived support on these conditional effects. Design/methodology/approach Hypotheses were tested using cross-sectional data from 334 academics at Vietnamese institutions. Data were analysed within a moderated mediation model integrated from hierarchical regression. Findings The results revealed that while work engagement (WE) partially mediates the indirect effect of person-job fit (PJF) on job-related stress, workaholism (WKH) – as an escalated stage of working hard – fully explains the psychological mechanism with moderated integration from social supports. Originality/value This paper hopes to contribute to the growing educational literature exploring the complex, multi-conditional influences of personal and social factors to measure academics’ psychological changes that lead to a negative reaction at work.

Purpose As the digital economy expands, examining Malaysians’ acceptance of digital financial services (DFS) becomes imperative. The intricacies of DFS necessitate that consumers possess both financial knowledge (FK) and digital financial literacy (DFL) to utilize DFS effectively. This study examines FK and DFL across demographics and their impact on DFS usage, aiming to bridge the gap between intended and actual adoption. Design/methodology/approach An online survey garnered 525 responses. Given that FK and DFL, DFS usage intention and actual usage were ordinally measured, ordered logistic regression was employed. Findings Age aside, socio-demographics similarly affect financial knowledge and digital financial literacy. FK strongly drives both intended and actual digital financial service (DFS) use. However, the impact of DFL varies: awareness and understanding are key for both intention and use, but digital financial risk control knowledge is vital for actual use. Digital skills mainly influence intended, not actual, DFS usage. Originality/value This research distinguishes between the impacts of FK and DFL on DFS adoption. Moreover, the study decomposes digital financial literacy into three fundamental components, yielding valuable insights for targeting specific knowledge domains to enhance DFS implementation.

Purpose This study examines the impact of structural shocks and policy interventions on the India/US exchange rate post the 1991 economic reforms in India. The study aims to improve forecasting accuracy by incorporating macroeconomic and microeconomic factors into the analysis using the threshold regression model (TRM), a nonlinear approach to estimation. Design/methodology/approach Extending Dornbusch’s (1976) overshooting model, the study incorporates micro factors, such as investor behaviour, beliefs and preferences, alongside traditional macroeconomic variables. Additionally, it introduces a capital control variable to assess monetary policy interventions. Using quarterly data from 1996Q2 to 2019Q3, TRM identifies two distinct economic regimes, providing a comprehensive understanding of India’s exchange rate dynamics. Findings The study reveals that macro and micro factors have varying effects on the exchange rate across regimes, reflecting India’s different economic conditions and policies. Furthermore, the TRM-based model achieves superior out-of-sample forecasting accuracy compared to the random walk model across all forecast horizons. Originality/value Unlike prior studies, where not all variables were deemed significant, our analysis demonstrates that all factors significantly influence the exchange rate. The innovative use of TRM deepens understanding of exchange rate behaviour, particularly in response to structural shocks and policy shifts. By identifying distinct economic regimes, the model offers insights into targeted policy measures tailored to India’s economic conditions, a previously unexplored perspective.

Purpose This paper explores the impact of financial stress (FS) on consumer confidence (CC) using survey data. Design/methodology/approach We use novel household-level survey data on CC by the Reserve Bank of India. FS data come from the financial stress index (FSI) released by the Tracking Asian Integration of Asian Development Bank. The sample period is 2015–2023. We align the lagged monthly values of FSI with the household-level data to uncover the impact of FS on household confidence in the economy. Findings Rising FS leads to increased pessimism among households regarding the state of the economy. Educated and well-off households are more sensitive to FS. Moreover, FS significantly impacts confidence regarding households’ own consumption basket and economic scenarios. A disaggregated analysis reveals that FS related to foreign exchange and debt spread causes greater pessimism among households than in the equity market and banking sector. Additionally, the impacts of FS are asymmetric, with above-average FS lowering household attitudes, while below-average FS increases optimism about the economy’s outlook. Originality/value To the best of our knowledge, this study is the first to examine the impact of FS on household CC using household-level data for an emerging economy such as India. Micro-level data allow us to explore the impact of FS on household perceptions of current economic situations and future outlooks. We also uncover the impact of FS on households’ confidence in their own economic outcomes.

Purpose This study demonstrates the necessary and significant role of national formal institutional frameworks in shaping the quality of e-governance in Asian countries. Moreover, it presents a robust model of e-governance as a necessary and significant driver of sustainable human development. Design/methodology/approach This study applied the cross-lagged panel method in path modelling and conducted competing model and necessary condition analyses to test the lagged, necessary and positive effects of formal institutions on the level of e-governance and sustainable human development in 45 Asian countries from 2012 to 2022. Findings Formal governance institutions have necessary direct and indirect (through e-governance development) causal effects on a country’s sustainable human development. Research limitations/implications Future studies should explore how informal institutions such as culture, industry and government norms and practices shape the extent of e-governance development and sustainable socio-economic development in Asia and beyond over time. Practical implications A renewed focus on the institutional fundamentals of governance and development should be the legislative priority of policymakers and leaders of Asian countries. Social implications Proactive digital citizen engagement in institutional building in respective countries is critical to developing sound, human-development-centred institutional governance in Asia. Originality/value The study presents robust necessary condition models that offer more nuanced explanations of the institutional imperatives of enabling Asian countries to strengthen their e-governance towards sustainable human development.

Purpose This study enhances the financial modelling of companies undergoing an Initial Public Offering (IPO) by focusing on internal capability determinants and IPO proceeds. Design/methodology/approach A hybrid logistic regression and shallow-depth decision tree approach are employed to predict the initial three-year post-IPO performance of companies listed on the Stock Exchange of Thailand (SET) using data from 2002 to 2021. Findings The results demonstrate that these models not only perform competitively against complex machine learning algorithms but also surpass them in terms of interpretability, an essential feature in financial modelling. The proposed approach effectively captures the effects of each determinant, offering valuable insights into strategic resource allocation and investment decision-making during transition years. Originality/value This study introduces a novel application that integrates logistic regression with decision trees to predict multiclass financial performance, filling the gap between complex machine learning techniques and interpretable financial models. It offers practical tools for companies and investors to make informed decisions in challenging post-IPO environments.

Purpose This study estimates the impact of growth transmitted from a near economic center (NEC) to neighboring countries in boosting the growth of Asian countries. Design/methodology/approach This study constructs the NEC of a country and combines it with the Penn World Tables database. The study estimates the impact of NEC on the economic growth of Asian countries over the period 1950–2019. The study also identifies the factors that boost the delivery of neighboring effects. Findings Estimation results show that a country’s output growth increases by about 0.14% when NEC’s output growth increases by 1%. Practical implications This study suggests that Asian growth benefited from a developed country that transmits economic prosperity to neighboring countries. Social implications This study suggests that a country should have a good economic relationship with neighboring countries to boost economic growth. Originality/value This study contributes to the existing literature as follows: First, this is the first study that investigated spatial externality in growth between neighboring countries in Asia. Secondly, this study empirically tests the flying geese model in Asian growth. Thirdly, the study investigates the factors that facilitate growth spillover between countries.

Purpose This study assesses the impact of environmental, social and governance (ESG) certification on capital structure decisions considering the COVID-19 pandemic. Design/methodology/approach The study utilizes the annual Asset-4 and Datastream data of Thomson Reuters Eikon for non-financial firms in member states of the Organization of Islamic Cooperation (OIC). Firm-fixed effects are used to avoid unobserved heterogeneity. Findings Firms with higher corporate sustainability have a higher leverage ratio. The positive impact of ESG scores on book leverage became more significant during the COVID-19 pandemic. These findings imply that ESG activities might serve as a signalling tool, especially considering the pandemic: ESG activities mitigate financial constraints when they are most pronounced and impactful. Practical implications Firms should invest in ESG activities to alleviate financial constraints. Researchers and practitioners are encouraged to explore how ESG and macro-specific factors jointly affect debt financing. Policymakers should incentivize ESG investment to reduce agency conflicts. Regulators in OIC countries should support firms that are encountering obstacles in obtaining ESG certification. Originality/value To date, the role of ESG investing in capital structure policy by considering the recent pandemic has not been assessed in OIC countries.