Authors : Duarte Borges Loe

Volume/Issue : Volume 11 - 2026, Issue 3 - March

Google Scholar : https://tinyurl.com/4xk6r6ms

Scribd : https://tinyurl.com/2snkk6fb

DOI : https://doi.org/10.38124/ijisrt/26mar1455

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : The paper includes a literature review on the systematic literature on financial management and capital markets concerning emerging economies and in specific case study, the ASEAN and Timor-Leste. The review is based on peer reviewed materials on Scopus, Web of Science, JSTOR, and Google Scholar published between 2010 and 2023 and synthesized theoretical backgrounds as well as empirical evidence of corporate financial management, investment strategies, decision-making on financing choices, risks management, and market efficiency. The evaluation shows that there are enduring inconsistencies between the conventional theories and the new market facts such as debt-equity optimization and liquidity prioritization, diversification and systemic risk exposure, and efficient market hypotheses and behavioral biases. In a manner of fusing these tensions, the review contributes to the literature by providing a conceptual framework, which puts the global financial theories into context, operating under the resource limited and turbulent environments. New entries cover the discovery of fintech adoption, ESG investing, and regional capital market integration as an area where theory and practice meet. Results have practical implications on policy makers who would want regulatory changes, corporate managers who would want to negotiate between the shareholder value and sustainability and investors who would need to adjust to the behavioral and technological shocks. Further comparison should be done on digital finance, sustainable capital flows, and institutional effects on financing in non Western settings with further future research.

Keywords : Financial Management; Capital Markets; Investment; Financing; Risk Management; Emerging Economies; ASEAN Finance; Fintech; ESG Investing

References :

1. Ala-Ketola, J. (2021). The Broad Effects of Shareholder Value Maximization Theory.
2. Allen, F., Chakrabarti, R., De, S., Qian, J. Q. J., & Qian, M. (2012). Financing firms in India. Journal of Financial Intermediation, 21(3), 409–445. https://doi.org/10.1016/j.jfi.2012.01.003
3. American Economic Association Investor Diversification and International Equity Markets Author ( s ): Kenneth R . French and James M . Poterba Source : The American Economic Review , Vol . 81 , No . 2 , Papers and Proceedings of the Hundred and Third Annu. (2016). 81(2), 222–226.
4. Asia, S., Government, U. K., Secretariat, S., Affairs, E., Government, T. U. K., Asia, S., Asia, S., Instructure, B., Iv, C., Bank, T. C., Renewable, C., Corporation, E., Authority, T., Foreign, U. K., Office, D., Secretariat, S., Affairs, E., Seco, W., & Panel, A. (2026). Terms of Reference : Capital Market Development in Southeast Asia : Indonesia , Philippines and Vietnam Introduction.
5. Barberis, N., & Thaler, R. (2003). Chapter 18 A survey of behavioral finance. Handbook of the Economics of Finance, 1(SUPPL. PART B), 1053–1128. https://doi.org/10.1016/S1574-0102(03)01027-6
6. Bhattacharjee, D. I., Srivastava, D. N., Mishra, P. A., Adhav, D. S., & Singh, M. N. (2024). The Rise Of Fintech: Disrupting Traditional Financial Services. Educational Administration: Theory and Practice, 30(4), 89–97. https://doi.org/10.53555/kuey.v30i4.1408
7. Claessens, S., & Yurtoglu, B. B. (2012). Corporate Governance in Emerging Markets: A Survey. SSRN Electronic Journal, 1–77. https://doi.org/10.2139/ssrn.1988880
8. De Bandt, O., Kuntz, L.-C., Pankratz, N., Pegoraro, F., Solheim, H., Sutton, G., Takeyama, A., & Xia, D. (2023). Basel Committee on Banking Supervision The effects of climate change-related risks on banks: a literature review. December, 1–45. www.bis.org/bcbs/
9. Donaldson, T., & Preston, L. E. E. E. (1995). The Stakeholder Theory of the Corporation : Concepts , Evidence , and Implications Author ( s ): Thomas Donaldson and Lee E . Preston Source : The Academy of Management Review , Jan ., 1995 , Vol . 20 , No . 1 ( Jan ., 1995 ), pp . Published by : Academy . 20(1), 65–91.
10. Dote-Pardo, J., & Severino-González, P. (2026). Insider Trading in Emerging Countries: Prevalence, Challenges, and Policy Implications. European Public and Social Innovation Review, 11, 1–21. https://doi.org/10.31637/epsir-2026-2230
11. Edition, A. (2026). 2026 Long-Term Capital Market Assumptions 30 th Annual Edition Time-tested projections to.
12. Eshraghi, A., Urquhart, A., & Wang, Q. (2026). Fintech and financial markets : new research directions. 4364. https://doi.org/10.1080/1351847X.2026.2642920
13. Fama-Efficient-capital-markets-1970.pdf. (n.d.).
14. Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance and Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
15. Gomes, C. W. A., & Pinto, R. S. (2025). Financial Statements As A Decision-Making Tool For Investments In The Financial Market. IOSR Journal of Business and Management (IOSR-JBM), 27(2), 10–21. https://doi.org/10.9790/487X-2702061021
16. Greenwood, J., Han, P., & Sánchez, J. M. (2022). Venture Capital: A Catalyst for Innovation and Growth. Federal Reserve Bank of St. Louis Review, 104(2), 120–130. https://doi.org/10.20955/r.104.120-30
17. Gupta, G. (2025). ESG Investing – An Evolving Paradigm of Sustainability and Returns. International Journal For Multidisciplinary Research, 7(4), 1–23. https://doi.org/10.36948/ijfmr.2025.v07i04.54011
18. Holmes, A. H. (1929). Addison’s anaemia. British Medical Journal, 2(3594), 952–953. https://doi.org/10.1136/bmj.2.3594.952
19. Iqbal, Z., & Mirakhor, A. (2006). An Introduction to Islamic Finance An Introduction to Islamic Finance. Sematic Scholar, page 2. https://pdfs.semanticscholar.org/37bf/ba7af87f865008c133e64f6b0a128560b63b.pdf
20. Islam, M. A., & M.M., M. (2012). We are IntechOpen , the world ’ s leading publisher of Open Access books Built by scientists , for scientists TOP 1 %.
21. Jensen, M. C. (2001). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Journal of Applied Corporate Finance, 14(3), 8–21. https://doi.org/10.1111/j.1745-6622.2001.tb00434.x
22. Kaptein, M. (2025). Normatively Reconciling Shareholder and Stakeholder Theories: The Ethical Responsibility of Business Is to Serve Its Shareholders by Serving Its Stakeholders. Open Journal of Business and Management, 13(02), 1000–1017. https://doi.org/10.4236/ojbm.2025.132054
23. Kaya, O., & Orpiszewski, T. (2025). Determinants of impact investments: Evidence from portfolio-level data. Journal of Sustainable Finance and Accounting, 6(October 2024), 100018. https://doi.org/10.1016/j.josfa.2025.100018
24. Krueger, P., Sautner, Z., & Starks, L. T. (2020). The importance of climate risks for institutional investors. Review of Financial Studies, 33(3), 1067–1111. https://doi.org/10.1093/rfs/hhz137
25. Majka, M. (2024). Diversi fi cation in Risk Mitigation Strategies.
26. Markowitz1952.pdf.crdownload. (n.d.).
27. Mihajlović, M., Tadin, D., & Gordić, B. (2020). The role of financial management in the company. Tehnika, 75(4), 498–503. https://doi.org/10.5937/tehnika2004498m
28. Nakagawa, S., Yamadera, S., Lee, J., & Osada, T. (2023). Financial digitalization and its implications for ASEAN+3 regional financial stability. www.adb.org
29. Nhung Le, H. (2024). The impact of family ownership on capital structure, borrowing cost, and performance : empirical evidence from East Asia. https://theses.hal.science/tel-04463765
30. Putri, R. L., & Willim, A. P. (2024). Analysis of the effect of assets structure, earning volatility and financial flexibility on capital structure in consumer goods industry sector companies on the Indonesia stock exchange. LBS Journal of Management & Research, 22(1), 25–36. https://doi.org/10.1108/lbsjmr-11-2022-0069
31. Robo-AdvisoryBISEpublic.pdf. (n.d.).
32. Scheubel, B., Stracca, L., & Tille, C. (2025). The global financial cycle and capital flows: Taking stock. Journal of Economic Surveys, 39(3), 779–805. https://doi.org/10.1111/joes.12621
33. Sharma, A., & Thaker, K. (2015). Market efficiency in developed and emerging markets. Afro-Asian Journal of Finance and Accounting, 5(4), 311–333. https://doi.org/10.1504/AAJFA.2015.073470
34. The acmf (2004-2024): (2024).
35. Titman, J. &. (1993). Jegadeesh & Titman [’93] - Returns To Buying Winners and ....Pdf.
36. World Bank Group, & IFC. (2022). COUNTRY PRIVATE SECTOR DIAGNOSTIC CREATING MARKETS IN THAILAND Rebooting Productivity for Resilient Growth. February. www.ifc.org
37. Yaman, S., & Tuncel, M. B. (2025). The benefits of sectoral diversification for investors with different risk perceptions. Borsa Istanbul Review, 25(3), 597–616. https://doi.org/10.1016/j.bir.2025.02.008
38. Zeng, Y. (2025). Frontiers of Finance FINANCE CHANGED , RISKS DIDN ’ T. 18–23.