Risk Management and Investment is a peer-reviewed academic journal that explores the intersection of risk management practices and investment strategies. Published by the Fakultas Bisnis, Institut Bisnis dan Informatika Kesatuan (IBIK) in collabration with the Be Actual Research Institute (BARI), the journal serves as a key platform for research focused on managing risks in the context of financial investments and fostering sustainable investment practices. The journal covers a wide array of topics, including investment risk analysis, portfolio management, asset allocation, financial derivatives, market volatility, corporate governance, behavioral finance, and financial regulation. With a commitment to high-quality scholarship, the journal ensures that all submitted manuscripts undergo a rigorous double-blind peer review process to maintain the integrity of published research. Risk Management and Investment is published biannually, in January–June and July–December. It publishes original research articles, theoretical studies, case analyses, and reviews that contribute to advancing knowledge on how to manage financial risks and improve investment outcomes. The journal's goal is to provide timely insights into both traditional and emerging investment strategies, addressing their risks and benefits in dynamic financial markets. The journal welcomes contributions from researchers, academicians, financial professionals, and policymakers who are exploring innovative approaches to risk management and investment practices. Submissions must adhere to the journal’s submission guidelines, and manuscripts that do not meet these formatting and style requirements will be returned without review. Only those that align with the journal’s academic standards will be considered for peer review and further editorial evaluation. Risk Management and Investment is committed to enhancing the understanding of risk management strategies in investment decision-making. By providing a platform for high-quality research, the journal aims to contribute to the development of more effective risk mitigation techniques and investment policies that promote long-term financial stability and growth.
Fakultas Bisnis, Institut Bisnis dan Informatika Kesatuan (IBIK)
The Strategic Role of Risk Management in Enhancing Banking Stability and Investor Confidence
The banking sector plays a fundamental and strategic role in maintaining macroeconomic stability and attracting investor confidence through the implementation of effective and comprehensive risk management practices. This study aims to review and analyze the relationship between banking risk management, investment efficiency, and investor perception by employing a systematic literature review approach covering the specified research period. The analysis reveals that the implementation of Enterprise Risk Management, supported by strong risk governance frameworks and transparent financial reporting, significantly contributes to improving investor confidence and ensuring the stability of banking investments. Furthermore, the digitalization of the financial sector and the integration of sustainability policies have strengthened risk management systems by enhancing operational efficiency, improving market risk mitigation strategies, and reinforcing credit risk control mechanisms. These developments indicate that risk management in the banking industry is no longer limited to compliance functions but has evolved into a strategic instrument that supports decision-making, competitiveness, and long-term financial resilience. Therefore, the effectiveness of risk management is identified as a key determinant in maintaining investor trust, promoting responsible financial practices, and ensuring the sustainable growth and stability of the global banking sector.
Copyright (c) 2025 Risk Management and Investment
The Impact of Globalization on Financial Volatility and Risk Management
Globalization and international market integration have accelerated the cross-border flow of capital, trade, and information, thereby enhancing the overall efficiency of the global economy. However, this interconnectedness has also intensified financial market volatility due to the rapid transmission of investor sentiment and global instability. This study aims to analyze the relationship between globalization, market integration, and financial volatility, as well as to examine how investors and portfolio managers respond to the associated risks. The research employs a literature review method, focusing on empirical studies published within the last five years. The findings indicate that market integration amplifies the transmission of financial crises and increases the impact of global fluctuations on domestic economic stability. Furthermore, effective risk management and portfolio diversification emerge as key strategies for mitigating heightened market uncertainty. These results underscore the critical importance of coordinated global economic policies in minimizing the domino effects of international financial crises and sustaining long-term economic resilience.
The Evolution of Portfolio Diversification: Modern Strategies in Risk Management and Investment Performance in the Digital Era
This study aims to analyze the relationship between portfolio diversification, risk management, and investment performance within the evolving context of the modern global economy. Employing a descriptive qualitative approach based on a systematic literature review, this research examines several indexed academic sources from the past five years to provide a comprehensive understanding of the effectiveness of diversification in the digital era. The findings reveal that diversification plays a crucial role in reducing systematic risk and enhancing the stability of investment returns across sectors and asset classes. The integration of technology particularly artificial intelligence and machine learning further strengthens the effectiveness of diversification strategies by improving the accuracy of risk assessment and enabling adaptive portfolio optimization in response to market fluctuations. Moreover, the rise of digital assets such as cryptocurrencies has expanded the global scope of diversification, introducing a new dimension to risk management. These findings confirm that diversification has evolved into an adaptive, dynamic, and sustainable strategy for future investment decision-making.
Understanding the Influence of Financial Literacy and Risk Awareness on Investment Decisions and Economic Growth
Investment is a crucial element in both the economy and individual financial planning, as it plays a significant role in driving economic growth, creating employment opportunities, and enhancing societal welfare. For individuals, investment serves as a tool to achieve long-term financial goals and protect assets from inflationary pressures. However, every investment carries inherent risks, including potential capital losses due to market fluctuations and uncertain economic conditions. Understanding these risks and maintaining a high level of financial literacy are key determinants of investment success, particularly for novice investors. The capital market, as a platform for trading long-term financial instruments, also plays a pivotal role in connecting surplus and deficit funds within society. This study aims to review the relationships among financial literacy, investment risk, and the capital market in promoting economic growth by synthesizing the latest empirical and conceptual literature. By analyzing contemporary findings, this review highlights the importance of informed decision-making, risk management, and financial education in optimizing investment outcomes and supporting sustainable economic development.
Financial Literacy, Fintech Adoption, and Youth Investment Behavior in the Digital Era
This study aims to analyze the interrelationship between financial literacy, fintech adoption, and youth investment behavior in a global context. Using a narrative study approach, this research integrates empirical findings from various Google Scholar–indexed publications published over the past five years. The analysis reveals that strong financial literacy plays a crucial role in shaping rational, measured, and sustainable investment behavior amid the dynamics of the digital economy. Meanwhile, fintech adoption expands access to diverse digital financial instruments and promotes financial inclusion but also introduces new challenges such as privacy risks, data security issues, and digital inequality across social groups. Technology-based financial education emerges as a strategic factor in developing a generation of financially intelligent, digitally critical, and economically responsible youth. The study concludes that synergy between financial literacy, technological innovation, and public policy is essential to strengthen an inclusive, adaptive, and sustainable digital financial ecosystem that supports the development of a resilient and informed young investor community for the future.
Integration of Modern Investment Strategies and Risk Management in the Digital Finance Era
This study aims to analyze the development of modern investment strategies and the implementation of integrated risk management within the context of the digital economy. Using a literature review approach based on scholarly works from the past five years, this research reveals that the application of artificial intelligence, machine learning, and big data analytics has revolutionized the paradigm of investment management from conventional systems into intelligent technology-based models. On the other hand, the implementation of integrated risk management plays a crucial role in maintaining portfolio stability and resilience amid increasingly complex global market volatility. The integration of data-driven strategies, environmental, social, and governance principles, and an understanding of investor behavior results in a more efficient, adaptive, and long-term–oriented investment system. The findings affirm that the success of modern investments is determined not only by technological innovation but also by disciplined risk governance, transparent information management, and a strong commitment to sustainability and socio-economic responsibility in the digital finance era.
Financial Risk Management in Investment during the Era of Global Economic Uncertainty
This study aims to analyze the role of financial risk management in maintaining stability and strengthening investment resilience amid increasing global economic uncertainty and financial volatility. Employing a library research approach combined with content analysis, this study systematically reviews academic and empirical literature published over the past five years, focusing on the dynamics of financial risk, investment decision-making behavior, and the influence of digital transformation on modern risk management systems. The findings reveal that the effectiveness of financial risk management depends on the integration of advanced data analytics, organizational risk culture, and adaptive economic policies that can anticipate and respond to global market fluctuations. Furthermore, digital transformation through the application of artificial intelligence, machine learning, and big data analytics has significantly improved the accuracy of market risk detection, modeling, and early-warning systems. Overall, this study highlights that modern financial risk management functions not only as a loss prevention mechanism but also as a strategic approach to enhance resilience and ensure the long-term sustainability of investment systems.
Digital Transformation and Sustainability in Global Risk Management
This study examines the evolving paradigm of risk management in the context of global uncertainty by highlighting the integration of digital transformation, sustainability, and organizational resilience. Using a Systematic Literature Review approach, the research analyzes scientific publications from the last five years to identify key trends, conceptual challenges, and existing research gaps within adaptive risk governance frameworks. The findings reveal that digital transformation plays a critical role in enhancing predictive capability, operational efficiency, and strategic decision-making accuracy. Meanwhile, the implementation of sustainability principles strengthens the social and environmental dimensions of long-term risk management and enhances stakeholder trust. The interaction between technological innovation and organizational resilience generates a synergistic model that supports proactive risk management and innovation-driven competitiveness. Despite significant progress, the study underscores the need for a conceptual framework that integrates digital intelligence, sustainability principles, and adaptive governance to build resilient organizations capable of maintaining stability and performance amid global volatility.
Integrating Big Data, Cryptocurrency, and ESG in Sustainable Fiscal Policy
This study aims to comprehensively examine the relationship between big data, sentiment analysis, cryptocurrencies, and Environmental, Social, and Governance principles in the context of modern fiscal policy. Through a narrative study approach to online scientific articles published in the last five years, this research highlights the strategic role of digital technology in strengthening the transparency, efficiency, and sustainability of the global economic system. The results of the study show that the use of big data analytics contributes significantly to increasing the effectiveness of evidence-based fiscal policies, while sentiment analysis provides in-depth insights into public perceptions and responses to economic policies. Cryptocurrency innovations and blockchain technology have also been proven to expand the space of fiscal transparency as well as drive the efficiency of digital financial governance. On the other hand, the integration of Environmental, Social, and Governance principles strengthens the direction of long-term economic sustainability through ethical and responsible investments. This study concludes that the synergy between digital innovation and sustainability value is an important foundation towards a resilient, inclusive, and adaptive fiscal system to global economic changes.
Integrating Sustainable Finance through ESG Principles in the Modern Financial Sector
This study aims to analyze the application of sustainable finance through the Environmental, Social, and Governance framework in the modern financial sector. Using a qualitative descriptive method based on online data search, this study examines scientific literature and institutional reports published in recent years to understand the dynamics of sustainability integration in the financial system. The results of the study show that the implementation of Environmental, Social, and Governance is not only an ethical strategy, but also a strategic necessity for the stability, reputation, and competitiveness of financial institutions amid increasing global sustainability demands. Environmental, Social, and Governance has been proven to increase institutional resilience to socio-environmental risks, strengthen transparency, and link profitability with long-term social responsibility. However, the effectiveness of Environmental, Social, and Governance implementation is still influenced by the readiness of national regulations, institutional capacity, and the varying quality of sustainability reporting between countries. Therefore, collaboration between governments, financial institutions, investors, and the public is a key factor in creating a transparent, inclusive, and long-term oriented financial ecosystem towards equitable and sustainable green economic development.
Transforming Modern Financial Management and Investment through Fintech and ESG Integration
The transformation of modern financial management has undergone a significant evolution driven by globalization, digitalization, and the development of financial technology fostering the emergence of risk-based management approaches and sustainable practices grounded in Environmental, Social, and Governance principles. This shift requires companies to be increasingly proactive, adaptive, and strategic in managing financial resources while enhancing investor confidence. Technological innovations such as big data analytics and artificial intelligence strengthen transparency, efficiency, and accountability, resulting in more precise investment decisions and risk management practices. considerations are increasingly emphasized by investors when evaluating long-term performance and business sustainability. This study aims to analyze the dynamics of modern financial management transformation, focusing on the integration of financial technology, the adoption of risk-based management, and their implications on investor behavior and strategic decision-making in global markets. By examining the interplay between financial technology and risk-oriented approaches, the research highlights the critical role of digital tools in fostering sustainable, transparent, and resilient financial systems while influencing investment patterns and capital allocation strategies.
Integrating Rationality and Behavioral Factors in Investment Decision-Making Under Global Economic Uncertainty
Investment decisions play a vital role in maintaining economic stability and enhancing a country’s productive capacity. In the context of global economic uncertainty, investor behavior is often not entirely rational. This study examines the relationship between rationality, uncertainty, and behavioral factors influencing investment decisions. The behavioral finance approach reveals that cognitive biases, emotions, and risk perceptions play crucial roles in the investment decision-making process. Using a literature review method, this research analyzes academic works published over the past five years to understand patterns of rational and irrational decision-making under global uncertainty. The findings indicate that investors who can effectively balance rational and psychological aspects are better positioned to minimize risks and enhance the long-term effectiveness of their investments. Furthermore, the study contributes to the body of financial literature by emphasizing the importance of integrating rational analysis with psychological awareness in the investment decision process. Such integration is essential for developing adaptive, sustainable, and informed investment strategies in an increasingly volatile economic environment.
Enhancing Investor Confidence through Internal Audit Transformation and Enterprise Risk Management Maturity
The dynamics of the modern business environment require companies to adapt to economic uncertainty, technological disruption, and regulatory complexity, all of which significantly influence investment decisions. This study aims to analyze the relationship between the transformation of the internal audit function, the level of risk management maturity, and their impact on investor confidence and investment sustainability. Through a comprehensive literature review of recent empirical and conceptual studies, the findings demonstrate that a strategically oriented internal audit does not merely serve as a compliance mechanism but functions as a value-adding partner that enhances corporate governance effectiveness. The integration of risk management frameworks based on international standards such as ISO 31000 has been shown to increase transparency, accountability, and investor perceptions of governance credibility. These insights highlight the critical role of synergy between internal audit and risk management maturity in strengthening organizational resilience and promoting sustainable investment practices in the global market. The study contributes to the theoretical discourse by positioning governance maturity as a determinant of investment attractiveness and long-term financial stability.
The Role of Financial Management and Liquidity Theories in Enhancing Investment Risk Mitigation
Financial management plays a strategic role in sustaining corporate continuity amid global economic uncertainty. Effective financial performance is not solely determined by revenue growth but also by the capacity to manage liquidity, investment risk, and efficient utilization of resources. This study aims to examine the interrelationship between financial management, liquidity theory, and investment risk management strategies. A qualitative descriptive approach is employed to illustrate the practical application of liquidity theories, including shiftability theory and Moulton’s theory, within the framework of Basel III regulations and their implications for corporate financial stability. The findings indicate that integrating financial policies with investment risk mitigation constitutes a critical factor in maintaining healthy cash flows, enhancing shareholder value, and strengthening business resilience against economic shocks. Furthermore, the study emphasizes the importance of adopting financial technology innovations and portfolio diversification to reinforce managerial resilience and support strategic decision-making in dynamic market conditions. These insights contribute to a deeper understanding of how financial management and risk strategies collectively promote long-term organizational sustainability.
The Influence of Cognitive Biases on Investor Behavior in Periods of Economic Instability
Global economic uncertainty often triggers substantial shifts in investor behavior. In this context, behavioral finance theory explains that investment decisions are not solely driven by rational analysis but are also shaped by psychological factors and cognitive biases. This study aims to analyze the transformation of investor behavior during periods of economic uncertainty using a library research approach. The findings reveal that cognitive biases such as overconfidence, confirmation bias, and loss aversion play a crucial role in driving irrational investment behavior. When uncertainty intensifies, investors tend to become more pessimistic and exhibit heightened sensitivity to negative information compared to positive signals, leading to suboptimal asset allocation decisions. Moreover, market fluctuations are frequently influenced by emotional responses rather than fundamental evaluations, reflecting bounded rationality in financial decision-making processes. This study highlights the necessity of integrating psychological insights into investment strategies and policy frameworks to enhance adaptability in volatile market conditions. By understanding behavioral tendencies, investors, policymakers, and financial institutions can develop more resilient strategies that account for the complexities of human behavior in financial decision-making.
Financial Literacy, Risk Perception, and Risk Tolerance in Investment Decisions in Indonesia
This study aims to analyze the relationship between financial literacy, risk perception, and risk tolerance on investment decisions in Indonesia through a Systematic Literature Review approach. Several scientific articles published in the last five years and indexed by Google Scholar were systematically analyzed to identify patterns of relationships between variables and trends in relevant research results. The results of the study show that financial literacy has a positive and significant effect on the quality of investment decisions, both directly and indirectly through an increase in individual risk tolerance levels. Risk perception acts as a psychological factor that mediates the way individuals assess uncertainty, opportunities, and potential returns from investment decisions. Meanwhile, risk tolerance serves as a reinforcing factor that balances courage and caution in the decision-making process. These three variables simultaneously shape rational, adaptive, and sustainable investment behavior. The findings of this study are expected to be an important reference in the development of financial education policies, the improvement of public financial literacy, and the expansion of national financial inclusion in the era of economic digitalization.
The AI Implementation Gap in Business Processes: Marketing Focus Versus Data Threats
Business trends in the digital era show rapid acceleration with Artificial Intelligence as the main driver of organizational transformation. This technology is widely implemented to improve operational efficiency and create a sustainable competitive advantage. This study aims to analyze the application of Artificial Intelligence in business processes based on a review of the academic literature of the last five years. The results of the literature study reveal the dominance of the use of Artificial Intelligence in front-office functions, especially in marketing personalization, which has been proven to be effective in improving company revenue performance. However, an important gap was found in the form of an excessive focus on profit optimization without adequately considering data security risk mitigation. Artificial Intelligence’s reliance on sensitive data creates an urgent need for strong governance and ethical frameworks to prevent privacy breaches and cyber threats. Therefore, Artificial Intelligence implementation needs to be directed towards the principle of Responsible Artificial Intelligence that balances innovation with data asset protection, to ensure business sustainability while maintaining customer trust in the digital era.
Technology Optimization in Generation Z Digital Investment in the Society 5.0 Era
This study aims to analyze the role of technology optimization in driving digital investment development among Generation Z in the Society 5.0 era. Through a qualitative research method based on literature studies, data was obtained from various scientific sources published in the last five years that are relevant to the themes of technology, digital investment, and youth behavior. The results of the study show that advances in financial technology, such as fintech and online investment platforms, provide great opportunities for Generation Z to actively participate in the digital economy. However, low digital financial literacy remains a major challenge that has the potential to hamper the sustainability of investment. Technology optimization must be balanced with an increased understanding of digital ethics, adaptive regulations, and collaboration between the government, financial institutions, and the education sector. This research emphasizes that the success of Society 5.0 implementation lies in the balance between technological innovation and sustainable human values.
The Synergy of Risk Management and Corporate Governance on Business Performance and Sustainability
This study aims to analyze the relationship between risk management, corporate governance, and company performance in a cross-sector context. Using a Systematic Literature Review approach to various articles indexed by Google Scholar over the past five years, this study identifies consistent patterns of relationships between the effectiveness of risk management and the quality of Good Corporate Governance implementation on increasing company value and performance. The results of the study show that the integration of these two concepts plays an important role in creating operational efficiency, strengthening investor confidence, and increasing organizational resilience amid global economic uncertainty. Furthermore, the implementation of transparent and accountable Good Corporate Governance has been proven to strengthen risk management discipline and reduce the potential for internal conflicts of interest. Overall, this study confirms that the synergy between risk management and Good Corporate Governance not only functions as a control instrument but also as a key strategy in creating long-term value and business sustainability in the dynamic digital era.
Financial Literacy, Financial Behavior, and Risk Tolerance: A Conceptual Review Based on Literature
This study aims to analyze the relationship between financial literacy, financial behavior, financial education, and risk tolerance using a literature review approach. The study was conducted on a number of Google Scholar-indexed scientific articles published in the last five years. The results of the analysis show that financial literacy has a significant influence on financial behavior and the level of risk tolerance of individuals. Individuals with a high level of financial literacy tend to make more rational financial decisions, are able to manage risks wisely, and have more stable and sustainable economic welfare. In addition, demographic factors such as age, gender, education level, and financial experience were shown to moderate the relationship between research variables. Formal and informal financial education plays an important role in strengthening understanding, forming a positive attitude towards money management, and increasing people’s financial awareness. Overall, this study emphasizes that increasing financial literacy is a fundamental strategy to build healthy financial behavior, strengthen economic resilience, and encourage financial independence in the dynamic modern economic era.
Strengthening Risk Management Principles in the Fintech Ecosystem for MSME Empowerment in the Digital Economy Era
The transformation of the digital economy has significantly reshaped the global financial landscape, introducing technological innovations such as equity crowdfunding that expand financing access for micro, small, and medium enterprises. Through these digital platforms, entrepreneurs can obtain direct funding from the public without relying solely on conventional financial institutions, which often impose stringent requirements. This phenomenon reflects a paradigm shift from traditional financing systems toward more participatory, inclusive, and technology-driven models. This study aims to analyze the application of risk management principles in digital financial services to establish a financing system that is safe, transparent, and sustainable. Employing a qualitative descriptive approach based on scholarly literature from the past five years, this research emphasizes the importance of principle-based regulation, investor protection, and adaptive internal governance. The findings reveal that the effectiveness of fintech regulation is strongly influenced by cross-authority collaboration and the consistent application of transparency and accountability principles. The study recommends synergy among regulators, industry players, and society to strengthen risk management and foster an inclusive, innovative, equitable, and long-term oriented digital financial ecosystem.
FinTech, Financial Inclusion, and Global Financial Stability
This study aims to analyze the relationship between financial technology, financial inclusion, and global financial stability using a Systematic Literature Review approach. By reviewing several core and supporting articles published within the past five years, the research reveals that FinTech plays a dual role as both a catalyst for economic efficiency and a potential source of systemic risk. FinTech has been shown to enhance financial stability by improving access to formal financial services, reducing transaction costs, and enabling greater diversification of financial risks. However, this rapid digital transformation also introduces new challenges related to data protection, cybersecurity, and the need for adaptive regulatory frameworks that can respond to technological innovation. The analysis indicates that digital financial inclusion contributes to economic resilience and broadens financial participation when supported by strong consumer protection policies and adequate financial literacy. Therefore, this study emphasizes the importance of close collaboration among regulators, financial institutions, and the technology sector in building an inclusive, resilient, secure, and sustainable digital financial system in the era of global digital transformation.
Financial Literacy and Investment Motivation as Key Drivers Shaping Investment Behavior
Investment plays a crucial role in enhancing financial well-being and economic stability at the individual level. This study aims to analyze the relationship between investment knowledge, investment motivation, and investment interest toward the investment behavior of Indonesian society. The shift from traditional financial instruments to digital investment platforms serves as the primary background of this research. A literature review approach was employed by examining studies from the past five years that explored psychological and cognitive factors influencing investment decision-making. The findings indicate that investment knowledge significantly enhances the confidence of beginner investors by providing a rational understanding of risks and expected returns. Furthermore, financial and social motivation strengthen the intention to invest, acting as a psychological driver that stimulates proactive financial behavior. Meanwhile, investment interest emerges through the interaction of financial literacy awareness, intrinsic motivation, and individual perceptions of investment opportunities. These elements collectively shape rational investment behavior in the digital era. The study concludes that promoting financial education and expanding digital investment access are essential strategies to increase public participation in Indonesia’s capital market.
Firm Value Determinants: Insights from Capital Structure and Financing Decisions
Capital structure plays a crucial role in determining the value and financial stability of a firm. This study aims to examine the relationship between capital structure, financing decisions, and their implications for firm value from the perspective of trade-off theory and pecking order theory. A library research approach was employed to review scholarly literature published over the last five years. The findings indicate that an optimal capital structure is achieved by balancing risk and return, with financing decisions considering the minimization of the cost of capital and maintaining financial flexibility. Factors such as external funding needs, debt ratio, and asset management efficiency significantly influence corporate financial performance. Moreover, the results highlight that practical implementation often deviates from theoretical ideals due to managerial preferences and market conditions. This study reinforces the conceptual understanding of how strategic financing decisions can enhance firm value sustainably. By integrating insights from both trade-off theory and pecking order theory, the research guides managers in designing effective funding strategies that support long-term financial stability and growth.
The Interaction between Corporate Governance and Ownership Structure on Risk-Taking Behavior
This research aims to understand in depth how organizational governance and ownership structures influence risk-taking behavior in the context of dynamic modern organizations. Using a descriptive qualitative approach, this study explores the perceptions, values, and managerial experiences of different levels of leadership involved in the strategic decision-making process. The results show that good governance not only serves as a formal oversight mechanism, but also forms a responsible and sustainability-oriented risk culture. Concentrated ownership structures tend to encourage prudence in decision-making, while dispersed ownership as well as managerial ownership have a dual influence on the risk behavior tendencies of organizations. In addition, factors such as organizational values, gender diversity in leadership, and open communication have been shown to strengthen risk control mechanisms and improve the quality of decision-making. This research confirms the importance of synergy between governance, ownership structures, and organizational culture in creating balanced, adaptive risk-taking behaviors that support long-term sustainability.
The Strategic Role of Dividend Policy in Influencing Profitability Firm Value and Investor Perceptions
Dividend policy represents a strategic financial decision that signals corporate financial stability and future performance prospects. This study aims to analyze the role of dividend policy in influencing profitability, firm value, and investor perception through a literature-based approach. A review of twenty scholarly articles sourced from Google Scholar demonstrates that dividend policy functions not only as a mechanism for distributing earnings but also as an informational tool that shapes investor decision-making. The findings indicate that an increase in dividends is generally interpreted by investors as a positive signal of sustainable cash flow, reflecting managerial confidence in the company’s future earnings capacity. Conversely, a reduction in dividends is often perceived as a sign of financial uncertainty or heightened risk, potentially leading to a decline in market valuation. These results affirm the relevance of dividend policy as a strategic element in modern financial management that directly affects market perception, corporate profitability, and firm value. Moreover, the study underscores the importance of balancing dividend distribution and retained earnings to support long-term financial stability and sustainable growth.
Corporate Governance, Ownership Structure, and Risk Disclosure
This study aims to examine the relationship between ownership structure, corporate governance, and risk management disclosure based on the results of empirical studies over the past five years. The research method used is library research by examining various relevant scientific articles published in the last five years. The results of the study show that the implementation of effective corporate governance through the mechanism of independent board of commissioners, audit committees, and risk management committees has a positive effect on the breadth of risk disclosure. Meanwhile, public and institutional ownership structures have been shown to encourage higher levels of information disclosure than concentrated ownership. The analysis with a stakeholder theory and signaling approach confirms that risk disclosure serves not only as a reporting obligation, but also as a strategic communication tool that strengthens investor trust and company reputation. This study makes a conceptual contribution to understanding the interaction between governance, ownership structure, and risk transparency and serves as a basis for further empirical research in various industry contexts.
Profitability Firm Size and Dividend Policy in Explaining Corporate Value Enhancement
This study examines the influence of dividend policy, firm size, and profitability on firm value using a document study approach. These three factors are recognized as essential indicators shaping investor perceptions regarding the stability and long-term prospects of a company. Profitability serves as a signal of a firm’s capacity to generate earnings efficiently, firm size reflects operational reliability and market strength, while dividend policy represents management’s strategic decision in distributing profits to shareholders, thereby potentially affecting investor confidence. The analysis is based on a systematic review of academic studies published in the last five years, both international and national journals that explore the financial determinants of firm value. The findings indicate that profitability has a significant positive impact on firm value, firm size demonstrates contextual variations depending on industry characteristics, and dividend policy acts as a financial signal that can enhance market perception of firm value. These results reinforce the applicability of signalling theory and the bird-in-the-hand theory in explaining investor behavior within modern capital markets.
Perception, Financial Literacy, and Fintech Adoption toward Millennial Investment Decisions in the Digital Era
This study aims to analyze the relationship between financial literacy, risk perception, and the adoption of digital financial technology on millennial investment decisions in the digital era. The research employs a Systematic Literature Review method by synthesizing several peer-reviewed articles published over the past five years. The results indicate that financial literacy positively influences the quality and rationality of investment decisions, helping individuals assess risks, manage portfolios, and avoid impulsive behavior. Risk perception and behavioral biases, such as overconfidence and herding, act as psychological mediators that shape how investors interpret financial information and make decisions under uncertainty. Furthermore, fintech adoption strengthens the connection between literacy and investment behavior through better accessibility, real-time transparency, and lower transaction costs. However, using fintech without adequate financial understanding may increase speculative tendencies. This study emphasizes the importance of integrating financial literacy with digital competence in financial education programs for millennials to promote rational, inclusive, and sustainable investment practices.
The Effectiveness of Hedging in Mitigating Exchange Rate Risk and Enhancing Financial Stability
Exchange rate risk is one of the main factors influencing a company’s financial stability and profitability, particularly for entities engaged in international trade. Currency fluctuations can affect cash flows, asset values, and the competitiveness of export-import activities. Hedging strategies serve as a crucial instrument in mitigating this risk by utilizing derivatives such as forwards, futures, options, and swaps to protect asset and liability values from market uncertainty. This study analyzes the relationship between exchange rate risk, financial performance, and the effectiveness of hedging strategies within corporations. Based on recent literature reviews, appropriate hedging implementation has been found to enhance financial stability, strengthen investor confidence, and reduce income volatility. However, its effectiveness largely depends on the quality of risk governance, the degree of foreign exchange exposure, and the firm’s overall financial policy. A comprehensive and adaptive approach to risk management is therefore essential to ensure long-term corporate resilience amid global currency fluctuations.