The purpose of this “perspective” type paper is to revisit and recapitulate an existing alternative approach to measuring economic and sustainable GDP (using the ISEW as a proxy) at both national and regional levels. Motivated by the recognized inadequacies of Gross Domestic Product (GDP) in capturing true economic welfare, this study highlights the need for comprehensive indicators that reflect genuine prosperity. While GDP has long served as the primary macroeconomic measure of development, it fails to account for genuine progress, prompting the exploration of alternative measures. In recent decades, sustainable development has become a focal point for global, national, and regional economies, highlighted by the United Nations' 17 Sustainable Development Goals. The inability of GDP to capture sustainable welfare has led to the proposal of various alternative indicators in the literature. This study revisits and recapitulates the Index of Sustainable Economic Welfare, first introduced by Daly and Cobb (For the common good: redirecting the economy toward community, the environment, and a sustainable future, Beacon Press, Boston, 1989), which adjusts GDP to better reflect sustainable development. The current “perspective” reviews the application of ISEW across different countries revealing significant insights into the limitations of GDP and the benefits of more holistic measures. Additionally, the study emphasizes the importance of capturing sustainable economic prosperity at the local level and advocates for the inclusion of cultural aspects as the fourth pillar of sustainable development.

This study examines the feasibility of using financial ratios and non-financial variables to predict audit opinions (qualified or unqualified) for firms listed on the Athens Exchange (ATHEX) from 2018 to 2022. Using 450 firm-year observations from 90 non-financial firms, we applied a logit regression model to analyze the relationship between 11 financial ratios and non-financial factors, such as auditor quality, auditor turnover, and corporate performance. While the results indicate that auditor characteristics, particularly auditor quality, have significant explanatory power, the predictive strength of financial ratios varies, suggesting that audit opinions in Greece may be influenced by broader governance and institutional factors rather than financial indicators alone. The study provides empirical insights that contribute to the development of predictive models for audit opinion assessment. These findings are particularly relevant in emerging economies like Greece, where audit risk and firm failures are heightened due to economic and regulatory challenges. By identifying key determinants of audit opinions, the study enhances understanding of audit risk assessment and its alignment with International Standards on Auditing (ISA 520). However, its findings are limited by the sample size and Greece’s unique regulatory environment. Future research should explore the integration of additional governance and institutional variables and assess the model’s applicability in larger and more developed markets.

This paper assesses the association of ESG scores with stock returns and highlights the moderating role of the COVID-19 pandemic and the country’s governance. The study uses panel data regression models to assess the relationship between ESG factors and stock returns, focusing on the moderating role of country governance and the COVID-19 pandemic. The results reveal that governance quality significantly enhances the positive effects of ESG practices on returns, particularly during times of crisis. These suggest that higher overall ESG scores are related positively to financial performance, and this relation is enhanced during the COVID-19 pandemic. Specifically, the two dimensions of ESG that matter most are environmental and governance. Country-level governance is important because firms in well-governed countries amplify the benefits of high ESG scores. The opposite is true for the higher controversies scores, whose bad financial outcome is magnified during the pandemic. These results present an argument for the resilience of firm financial performance, dependent on strong ESG practices and governance frameworks. This holds great interest for investors and policymakers in associating good ESG considerations with the effective management of financial risks, leading to sustainable returns during periods of widespread economic uncertainty.