For this Special Issue of the Journal of Financial Studies, the Institute of Financial Studies reaffirms its commitment to high-quality research and the dissemination of knowledge in the field of finance and financial education. This issue brings together a selection of articles that address current challenges and opportunities in the financial sector and emphasizes the role of research in shaping modern, ethical and sustainable approaches in this complex and dynamic field.
To facilitate a thematic approach to the materials, the papers included in this issue could be grouped into four major research themes: Innovation and digital transformation in finance and accounting, Sustainability and corporate governance, Performance and risk in specific economic sectors, and The role of financial education and its influence on capital markets and organizations. Each of these themes provides a deeper understanding of how finance is adapting to meet emerging economic and social needs.
It is clear that advanced technologies like artificial intelligence are reshaping operations across all sectors, while the finance and accounting industry has much to gain from embracing these advancements. Digital transformation contributes significantly to streamlining processes, reducing errors and facilitating complex data analysis. At the same time, it raises challenges related to data security, information privacy and adaptability to rapidly changing technology.
From a sustainability and corporate governance perspective, the integration of the principles of sustainability and responsible corporate governance is an essential pillar for a globalized and sustainable development-oriented economy. By implementing governance practices that emphasize environmental, social, and governance (ESG) factors, organizations are able to reduce negative environmental impacts and support fair social policies. Sustainability not only meets the current needs of organizations, but also protects resources for future generations, which brings long-term stability to financial markets.
In terms of performance and risk in specific economic sectors, each economic sector has unique characteristics and challenges that influence financial performance and associated risks. Research in this area is valuable for understanding the factors that determine the success or difficulties of specific industries such as agriculture, construction or real estate. Studying sectoral performance and risks enables companies to make informed strategic decisions, thus contributing to the overall stability of the economy and the development of appropriate risk management practices. By understanding these specific variables, investors and policy makers are equipped with skills to anticipate and react to changes in the market, thereby optimizing investment and economic growth.
Financial education is the foundation of a healthy economy and contributes to increasing the level of financial understanding and skills of individuals and organizations. Its importance is visible in its influence on capital market behaviour, organizational decisions and national financial stability. By learning the basic principles of financial management, individuals and managers will be able to make informed decisions, which will improve the liquidity and efficiency of financial markets. Good financial education not only helps to prevent economic crises by avoiding risky financial behaviour, but also contributes to understanding and seizing opportunities for investment and personal or organizational development.
Research in these strategic areas supports innovation, social responsibility, economic stability and increased financial literacy, making a significant contribution to the development of a sustainable and equitable economic framework. Academic studies allow not only a better understanding of the challenges and opportunities in the financial sector, but also continuous adaptation to new economic and technological realities. Financial institutions, companies and policymakers benefit from this research, using the knowledge generated to build more resilient and responsible financial systems.

Environmental, social and governance corporate policies (ESG) will remodel the overall economy in the next years, respectively will influence the success of investment. ESG factors will drive change fundamentally in the economy that will raise some risks and opportunities for the financial sector. Therefore, it is crucial that they include responsible investment and ESG criteria in their overall business strategy. ESG policies have passed so from the early stage, in which they represented a specialized product for a restricted group of investors, to the actual stage, in which these actions have transformed into a general framework that influences the strategic thinking of the whole entity. ESG thus has an influence on growing business strategy throughout the transaction life cycle and in their portfolios. This paper explores the impact of the ESG notch on the share performance of the Romanian entities listed on the Bucharest Stock Exchange. In conclusion, incorporation of ESG factors in investment strategy may influence stock performance and attract investors interested in sustainability.

Starting from the definition of the word sustainable, which represents the ability to exist constantly, the central objective of the study is to identify the main directions regarding a sustainable development in the Romanian banking sector, as well as how the risk indicators of the banking sector were influenced in the period 2018– 2023 through the lens of a much more environmentally friendly development. The research hypothesis is that most banking institutions have shown their interest in sustainability and have already made impressive progress in implementation by adopting policies for this purpose. The research methodology was based on an analysis of aggregated indicators regarding credit institutions in Romania, a very important indicator being the rate of non-performing loans, the research carried out trying to demonstrate the fact that the presence of sustainability can positively influence the performance indicators of the banking system. At the same time, the new global ESG trend (environmental policies, sustainability and governance) and how it impacted bank financing in Romania was integrated into the paper.

The lack of empirical evidence on key drivers of financial illiteracy among financial managers within non-governmental organisations (NGOs) sector can be the trigger of the current rate of NGOs collapsing in South Africa. Using a quantitative research strategy, this study investigated the role of financial literacy in improving the level of financial knowledge, financial skills and financial responsibility among 53 NGOs finance staff who were purposively and conveniently sampled. The respondents comprise financial managers, accountants, and senior managers and project managers. Data generated were analysed using descriptive and inferential statistics. The results of the study revealed that all the independent variables of the study correlated between .247 and .569. The findings of the study revealed that the ability to prepare a strategic business plan and the respondents’ capability to cope with their organisations’ financial shortfalls have a positive and significant relationship with their level of financial literacy. The study further found that (1) dealing with financial diversification (2) comparing their organisations’ financial performance against the financial objectives (3) writing financial objectives and (4) their ability to raise funds from different funders for their organisations have a positive and significant influence with their financial literacy. This article is the first to explore the financial literacy status among NGOs financial managers in KwaZulu-Natal (KZN). Relying on these empirical findings for the financial literacy variables. This study will fill a gap in understanding the variables identified that drive the financial literacy of NGOs financial managers. These findings will help NGOs financial managers to choose the financial literacy practices model to improve their financial knowledge, skills and responsibilities and eventually enhance the financial viability and sustainability of their entities. This study contributes to the current body of knowledge and further offer insight into constructs for measures of financial literacy among NGOs context.

The integration of digital technologies in agriculture has the potential to revolutionize biodiversity conservation efforts. This article explores the role of regulations and recommended practices in promoting the adoption of digital technologies for biodiversity conservation in agricultural practices. Through a comprehensive review of the literature and analysis of current trends, the article highlights the importance of regulatory frameworks and recommended practices in shaping the adoption and implementation of digital technologies in agriculture. It examines various policies and initiatives aimed at stimulating the use of digital tools for monitoring, reporting, and mitigating the impact on biodiversity. Furthermore, the article discusses the challenges and opportunities associated with the adoption of digital technologies in agricultural practices for biodiversity conservation. It concludes by proposing recommendations for improving the regulatory framework and promoting the sustainable use of digital technologies to enhance biodiversity conservation in agriculture.

This article explores the complex relationship between state aid and the evolution of economic environment, with a particular focus on the competitiveness of the regions where the aid beneficiaries activate. Many economic theories and ideas discuss the impact of state involvement on economic growth, emphasizing that excessive intervention can result in inefficiencies and distortions. However, targeted and strategic aid has the potential to stimulate economic growth, promote innovation, and address market failures. The paper compares EU regions with a high Competitiveness Index to those at the bottom of the competitiveness list, examining the volume and nature of aid provided to companies in these regions. The aim is to determine whether a direct relationship exists between aid and competitiveness. The findings generally confirm the previous research highlighting the beneficial effects of state aid on businesses’ competitiveness, but with some original findings. We discovered that state aid supports the competitiveness of the beneficiaries, but some types of aid are more appropriate to sustain a company and make it more competitive. State aid promoting training, research, development, and innovative activities and infrastructure has greater potential to help companies become more competitive in the present global market.

In the last 20 years, the road infrastructure in Romania has expanded considerably and affected a significant number of natural and legal persons, owners of real estate located on the expropriation corridor. According to the Rejust database, in the last 10 years, annually, on average, approximately 4,000 files were created before the courts with expropriation as their object. In this article, we propose to present the legislative framework and particularities of the evaluation process of real estate properties subject to expropriation for reasons of public utility. The importance and actuality of such a theme was generated by the very large number of cases pending before the courts as a result of the dissatisfaction of the owners of buildings subject to expropriation for public utility reasons regarding the amount of compensation values granted. Also, at the level of the courts, there is a non-uniform practice regarding the method of drawing up evaluation reports. The study aims to review the procedures related to public interest expropriation and to create the premises for future research in the field.

The technological progress incorporated under the artificial intelligence umbrella is more and more embraced in the finance industry. The constant development combined with particular social situations (COVID, post-COVID) had speed up the usage of artificial intelligence systems in the finance industry. Consumers are now exposed on a regular basis to finance systems as bank applications in which they can choose from simple to more complex operation. Applications interfaces are becoming more and more user-friendly, and consumers tend to trust it, those being an extension of the bank institution. In our research, we investigate the attitude of consumers towards offering trust in finance artificial intelligence systems that can provide advice and operate financial investments based on historical data and their economic future estimations. For financial systems to proceed with these recommendations, the main aspect will be the acceptance to share their private data, based on which artificial intelligence will create a personalized profile in terms of consumer behaviour and interests.

Europeans’ choice to emigrate is complexly related to motivation and includes both economic and social factors such as family impact, gender inequalities, and differences in income. By comprehending the factors that motivate people to leave their home countries and the strategies they use to do so it is possible to achieve important insights into the phenomenon of emigration within the diverse landscape of European society. Due to the economic crisis of 2008, there was a significant increase in unemployment rates in several European countries, with notable impacts in some countries like Romania, Greece, Portugal, Spain, and Italy. The emigration that resulted had a detrimental effect on the economy, reduced job opportunities, and lowered the overall standard of living. Within the context of the countries in which emigration has played a significant role in the economy, the intent of this empirical research is to investigate the effects of specific macroeconomic factors on economic imbalance and unemployment. The unemployment rate, gross domestic product (GDP), minimum income, and external incomes in several European countries are some of the factors that are currently being considered. In this study, we investigate the impact of these variables on unemployment in a sample of twenty-four European countries between the years 2002 and 2020. Our methodology is based on panel data, more specifically, the Generalized Method of Moments (GMM). The results showed that during the period under analysis, the minimum wage and remittance inflows had a negative impact on unemployment in the studied European countries, while the emigration rate had a positive impact.

Capital markets serve an essential role in the efficient allocation of resources in an economy, with their liquidity and stability being critical indicators of operational efficiency. The influence of education in cultivating financial literacy, shaping investment behaviours, and thereby promoting market efficiency, financial development, and sustainable economic growth, is increasingly becoming the focus of research in this field. This study specifically explores the relationship between education levels and capital market liquidity in the Central and Eastern European countries across the period 2013-2021 via a panel regression methodology. Our findings show a significant relationship between education and enhanced capital market liquidity, highlighting the importance of investing in both primary and secondary education to improve market efficiency. Primary education enrollment seems to exert a negative impact on market spread and illiquidity, while secondary enrollment is associated with a diminishing effect on market spread. These patterns persist for both male and female enrollment alike. By furthering the understanding of the association between education and capital market activity, this research paper extends the current studies in this domain and reinforces the idea that education plays an instrumental role in capital market liquidity. This adds to the body of knowledge on the role of education in influencing capital market activity and offers a nuanced view of its impact on market liquidity in the CEE region.