Blockchain and Decentralized Finance in Corporate Financial Governance: Enhancing Transparency, Efficiency, Sustainability, and Regulatory Resilience in Multinational Enterprises

Abstract

The purpose of this research is to investigate the impact of blockchain and DeFi on corporate financial governance in MNEs. It aims to understand how these technologies contribute to improving transparency, efficiency, sustainability, and regulatory resilience, offering insights into their strategic role in enhancing governance frameworks in a rapidly evolving financial landscape. The study analyzes data from 698 MNEs in the United States, employing Structural Equation Modeling (SEM) and machine learning techniques. This mixed-method approach ensures robust empirical evidence, facilitating a comprehensive evaluation of the relationship between blockchain/DeFi adoption and governance outcomes such as transparency, efficiency, and sustainability. The study reveals that blockchain adoption significantly enhances financial transparency and sustainability efforts, while DeFi utilization boosts operational efficiency and regulatory compliance. Operational efficiency and sustainability are identified as mediators in the relationship between technology adoption and regulatory resilience. These findings underscore the transformative potential of blockchain and DeFi in modernizing corporate governance practices. This study uniquely explores the integration of blockchain and decentralized finance (DeFi) in corporate financial governance, particularly within multinational enterprises (MNEs). It provides empirical insights into how these technologies enhance transparency, efficiency, sustainability, and regulatory resilience, addressing a critical gap in financial governance literature. By using Structural Equation Modeling (SEM) and machine learning, the research offers a novel perspective on the strategic advantages of blockchain and DeFi in transforming corporate governance frameworks.

Keywords: Blockchain Technology, Decentralized Finance (DeFi), Corporate Financial Governance, Multinational Enterprises, Operational Efficiency.