In an economic and geopolitical context characterised by volatility, persistent inflationary pressures, rapid technological transformations, and shifts in the European regulatory architecture, the Journal of Financial Studies continues its commitment to provide solid analysis and relevant academic perspectives on these developments. This issue brings together contributions that capture both the complexity of today’s financial environment and its transformative directions.
The current edition includes a variety of studies addressing topics of major interest to economists, accounting professionals, technology specialists, regulators, financial institutions, and academics. The published research addresses the mechanisms through which overlapping crises generate inflation and influence macroeconomic stability, the structural shifts introduced by digitalisation and automation in taxation, accounting and reporting, the role of technology in advancing sustainable development and influencing market dynamics, the psychological determinants of financial decision-making in SMEs, as the challenges associated with audit, governance, migration, the climate transition, and modern financial remuneration instruments.
Without detailing the content of each article, it is important to highlight some key trends emerging from this edition. First, digitisation continues to redefine financial, fiscal, and governance processes, both through emerging technologies and European regulations with significant impact on institutions’ operations. Second, analysing the interdependence between economic performance, sustainability, and institutional resilience is becoming a central research direction. At the same time, more attention is being paid to the behavioural and social factors that influence economic decisions, complementing traditional financial analysis with multi-disciplinary perspectives.
The contributions of authors from Romania and abroad reflect an outstanding collective effort of documentation and analysis. The rigorous peer-review process has ensured the maintenance of the high scientific standard that characterises our publication. Thematic and methodological diversity provides the reader with a broad and balanced view of current issues in the field of finance.
We would like to thank all those involved in the realisation of this issue: authors, reviewers, editorial board, and institutional partners. Everyone’s contribution has been essential in strengthening the quality of this edition.
We expect Issue 19 of the Journal of Financial Studies to be a useful source of reflection, inspiration, and debate for researchers, practitioners, and policymakers concerned with contemporary economic and financial developments.

The paper outlines an investigation into the return on a share and factors that determine the financial performance of a share. An important indicator of joint stock companies is the return on a share. Information on return on a share reflects not only the relationship over the distribution of profit of the company, but also can be used to and for assessing the investment potential of the joint stock company. In the article, we will investigate and analyse more deeply the return on a share, which is of particular importance to a wide range of users in the decision-making process, as it provides information regarding both the efficiency of investments in shares, as well as strategies regarding the economic performance and financial position of the joint stock company. Through this paper, I aimed to carry out a detailed analysis of the determinants of the return on a share. The analytical form of the relations between the return on an ordinary share and the causes of modification is presented in the factorial system recommended by the author. The recommended factorial system shows that the return on an ordinary share depends first of all on the return on ordinary share capital and, secondly, on the correlation coefficient between the book value and the market price of an ordinary share. Results of the causal analysis of the return on an ordinary share, according to the recommended factorial system, are of real interest and can be applied in the decision-making process in the following situations: when making decisions regarding the purchase, holding or sale of ordinary shares; to supervise the activity of the joint stock company to protect the shareholders’ interests; to substantiate the conditions of additional issue of shares and the preparation of the public offer prospectus.

In the fight against climate change, the focus is often put on energy sources and how they are used, although the fight to achieve climate neutrality must be fought on several fronts, given the complexity of the challenge. Thus, according to the literature, innovation, green technologies, sustainable financing and, by extension, the adoption by individuals of more sustainable lifestyles play an important role. Based on this premise, our study aims to highlight the influence of two important variables, namely innovation (using R&D expenditure as a proxy) and governance, on a sample of the 20 most innovative countries over the period 2010-2023, using the OLS model.
The empirical results underline the need for public authorities to step up their efforts by developing and implementing more ambitious public policies. These should include additional measures to stimulate technological innovation, financial support for green projects and raising public awareness. At the same time, international collaboration and research investments need to be expanded to accelerate the transition to climate neutrality.

This research investigates the costs and benefits associated with the Employee Stock Option Plan (ESOP) as a non-salary benefit package aimed at motivating and retaining employees within financial institutions. The study highlights that while ESOPs incur direct costs, such as the purchase of shares and administrative expenses, they also present indirect costs related to employee performance and market fluctuations. The findings reveal that ESOPs not only serve as a financial incentive but also foster a sense of ownership among employees, enhancing their motivation and commitment to the organisation. This alignment of employee interests with company performance can lead to improved productivity and retention rates. Furthermore, the transparency and communication fostered by ESOPs contribute to a positive corporate culture, which is crucial for long-term sustainability. The research also identifies potential risks, including market volatility and the psychological costs associated with unsuccessful implementation and ineffective costs. The study emphasizes that while the costs of implementing an ESOP can be significant, the potential benefits, such as enhanced employee motivation, retention, and overall organisational performance, can outweigh these costs.

Migration has become one of the defining forces shaping the economic and social landscape of Europe. While much of the literature has concentrated on Western countries as primary destinations, the role of Central and Eastern Europe as both sending and increasingly receiving regions remains underexplored. This study investigates the impact of migration on economic development in four Eastern European countries—Romania, Bulgaria, Poland, and Hungary—over the period 2014–2023. Using panel data analysis, the research examines the relationship between net migration flows, GDP per capita, unemployment, employment rates, and population dynamics. The results indicate that migration plays a significant role in shaping labour market conditions and contributes to economic growth, particularly through its strong correlation with GDP per capita and employment rates. By applying a fixed-effects panel regression model, the study provides robust evidence on the bidirectional link between migration and economic performance. The findings highlight the structural transformations of these economies and underline the importance of migration in addressing demographic decline and labour shortages. This research contributes to the academic debate by offering updated empirical evidence and by filling the gap in the literature regarding the Eastern European migration-growth nexus.

This study explores the key factors driving revenue growth in Romania’s gambling industry, focusing on the role of ERP systems, consumer spending on recreation and culture, and internet usage. Using regression analysis across three models and data from 2017 to 2023, the findings highlight the interplay between digital transformation, consumer behaviour, and technological adoption. ERP systems, while not showing a direct and significant impact in comprehensive models, demonstrate a positive and significant contribution when analysed independently, emphasising their potential to support revenue growth through enhanced operational efficiency and digital transformation. Consumer spending on recreation and culture emerged as a significant driver, reflecting broader socioeconomic trends and the increasing prioritisation of leisure activities in personal budgets. Similarly, the consistent growth in internet penetration underscores its critical role in expanding online platforms, driving digital engagement, and supporting the gambling sector’s evolution. Together, these findings emphasize the importance of technology, digital accessibility, and shifting consumer preferences in shaping the future of the gambling industry in Romania.
This study contributes to the literature by providing nuanced insights into the sector’s dynamics and the interconnected drivers of growth in an increasingly digital economy.

The present article reflects the role and importance of artificial intelligence in the accounting profession by defining the concept of artificial intelligence. The literature research brings to light the influence of these intelligent systems on the dynamics of the progress of accounting and accounting professionals. The purpose of the article is to illustrate the vision of professional accountants, these being the main actors provided in the application part of the work, regarding the implementation of new accounting tools that work with the help of digitization and technology. The research tool used is the questionnaire applied to professional accountants, exactly 100 employees, with different ages and professional experiences within companies, from several sectors of activity in the year 2025 and questions related to the perception of new technologies based on intelligent systems and how they foresee the following as they will intervene in accounting for their current jobs. Interviewed about the notion, but also the impact of artificial intelligence, which tends to be a positive one. Many of those interviewed answered favorably about the technology of accounting activities; there are also exceptions that consider this term as the main factor for which they will remain without jobs in the future.

The quality of financial auditing is a primary objective for both financial auditors and the users of companies financial statements. The objective of this research is to analyse the key factors that influence the quality of financial auditing, primarily from the auditor’s perspective. The purpose of the study is to provide a deeper understanding of the factors that determine audit quality by exploring how these factors affect audit outcomes, such as the type of opinion issued and the level of assurance provided, as well as the impact of auditor rotation on objectivity and the influence of audit firm size (Big 4 vs. non-Big 4) on audit quality. For the analysis, a sample of companies listed on the Bucharest Stock Exchange in both the main and secondary markets was selected. Information was extracted from the Audit Analytics database for the period 2016–2023. The results of this study confirm that Big4 auditors are generally more active on the main market, where a higher number of unmodified opinions are also recorded. The study also highlights the tendency of smaller firms or those on the secondary market to work with local auditors outside the Big 4 network. The key factors that influence the quality of financial auditing are multiple and interdependent, and understanding them is essential for improving practice in this field.

This study examines the psychological determinants influencing financial decision-making within Small and Medium Enterprises (SMEs), focusing on cognitive biases and risk perception. Drawing from an interdisciplinary framework that integrates economic theory with cognitive psychology, the research aims to elucidate how biases—such as overconfidence, loss aversion, and anchoring—shape financial decisions in entrepreneurial settings. Utilising a mixed-methods approach, including a survey of 350 SME owners and managers, and advanced statistical techniques such as structural equation modelling (SEM), this study empirically investigates the impact of psychological factors on financial behaviours such as investment choices, risk management, and capital structure decisions. The findings suggest that cognitive biases significantly skew financial decision-making, often leading to suboptimal choices that undermine long-term financial stability. Furthermore, the perception of risk, influenced by both personal experience and heuristic processing, is found to be a critical determinant in shaping SMEs’ approaches to financial uncertainty. This paper contributes to the extant literature by offering a nuanced understanding of the psychological underpinnings of financial decisions in SMEs, with significant implications for both academic research and practical interventions aimed at improving financial decision-making in the SME sector. Implications for policy design and financial education programs are discussed, advocating for tailored interventions that address the cognitive biases and distorted risk perceptions prevalent in entrepreneurial finance.

One of the major objectives of the EU is digitalization. The impact of digitalization is different from one sector to another and sometimes in contradiction with sustainability. Starting from these ideas, we started the research, reporting on three sectors: entrepreneurship-trade, agriculture and justice. After establishing the sectors, we took the necessary steps to obtain the database with the specific indicators. The impact of digitalization on sustainable development indicators in the three sectors represents the central objective of the research, the period to which we reported being 2013 – 2024. The digitalization and sustainable development indicators were extracted at the level of the 27 EU member countries, the statistical processing being carried out with the JASP and Eviews programs. The analysis of the results revealed a lack of correlation between digitalization and sustainability in the agricultural sector, a significant correlation between sustainable development and sustainability in the case of large economic entities within the entrepreneurial environment, and a significant direct correlation between digitalization and the indicators defining the health and justice sectors.