Guest editorial: Contemporary issues in accounting, finance and governance: towards sustainability and SDG

Authors: Alkaraan, F., John, J., Abdoush, T.

Journal: Journal of Financial Reporting and Accounting

Publication Date: 08/05/2026

Volume: 24

Issue: 3

Pages: 1221-1228

eISSN: 2042-5856

ISSN: 1985-2517

DOI: 10.1108/JFRA-06-2026-990

Abstract:

Governance and sustainability remain contested topics among scholars, practitioners, regulators, and policymakers, reflecting their complex and evolving nature. These issues are central to assessing corporate commitment to social responsibility (CSR), addressing climate change, and achieving sustainable performance within the context of circular economy transitions and the United Nations Sustainable Development Goals (SDGs) (Alkaraan, 2023). In response, the disciplines of accounting, finance, and governance are experiencing a fundamental transformation, moving beyond traditional metrics of financial performance and regulatory compliance towards integrated approaches that incorporate environmental, social, and ethical dimensions. This shift necessitates a critical examination of how financial systems, governance frameworks, and accounting practices can facilitate sustainable value creation, responsible investment, and transparent stakeholder engagement. Emerging global governance challenges, intensified by the COVID-19 pandemic, the EU Green Deal, and Brexit, have heightened concerns over supply chain resilience and strategic investment practices. Elmarzouky et al. (2024) examine the impact of Brexit-related disclosures on trade credit decisions, finding a positive relationship that varies across industries, underscoring the importance of sector-specific financial strategies. Wu et al. (2023) explore the moderating role of corporate governance and investment efficiency in the relationship between financial flexibility and firm performance, showing that strong governance and efficient investment enhance both firm value and accounting outcomes. Building on this, Wu et al. (2024) emphasise the strategic relevance of financial flexibility in post-crisis recovery, finding that it reduces overinvestment and improves performance, particularly in market-based measures. These findings highlight the need for firms to adopt adaptive, stakeholder-informed strategies and embrace circular economy models supported by Industry 4.0 technologies, such as artificial intelligence (AI) and big data, which are reshaping governance, ethics, and value creation (Alkaraan et al., 2023). In parallel, a new wave of mergers and acquisitions is emerging, driven by digital transformation and circular economy priorities. Feyisetan et al. (2025) show that ESG performance significantly increases M&A activity across sectors, though it negatively affects financial firms performance. M&A remains a key strategy for growth, diversification, and risk mitigation, but behavioural factors like managerial overconfidence also influence outcomes. Given this complexity, scholars call for a multi-theoretical lens to better understand investment appraisal in dynamic environments (Alkaraan, 2017, 2019; Adel and Alkaraan, 2019).

Source: Scopus