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This paper aims to examine whether Indonesian cross-border trade responds asymmetrically to exchange rate volatility (ERV).

An exponential generalized autorgressive conditional heteroscedasticity model is applied to estimate the ERV of Indonesia and ten main trade partners using quarterly data from 2006 to 2020. A nonlinear autoregressive distributed lag estimation is applied to estimate the impact of ERV on cross-border trade. Impacts from the global financial crisis (GFC) of 2008 and the COVID-19 pandemic are covered. Dynamic panel data is used for the robustness test.

In the short-run, ERV significantly affects exports to most of the top partners (positively, negatively or both). In the long run, asymmetric effects occur in Indonesia’s exports to five top destinations. The weakening of the Indonesian Rupiah mainly supports exports in the short term. Imports from top partners are also affected by ERV in both the short run and, to a lesser extent, in the long run. Both the GFC and the COVID-19 pandemic reduced trade: for most cases, in the short run. The dynamic panel model suggests that ERV has asymmetric impact on cross-border trade in the long run.

Exchange rate strategies need to avoid a single-side policy approach and, instead, account for exporter and importer differences in risk behaviour and an asymmetric response to ERV in trade. Policymakers need to consider policies that stabilise the currency.

This study provides evidence that cross-border trade can react asymmetrically to the exchange rate uncertainty and that the impacts of real ERV are asymmetric as well. The authors also apply a dynamic panel that signals that ERV matters in the long run for Indonesian trade with top partners.

This study aims to explore how the “new normal” induces the dynamics in the asymmetric relationship between service quality attributes and customer satisfaction.

This study analyzes online reviews for hotels in New York City. The authors use multi-attribute models to examine how a situational factor – the COVID-19 outbreak – creates dynamics in the asymmetric effect of service quality attributes on customer satisfaction. Then, the authors examine the change in these dynamics over time after adjusting to the “new normal.”

The COVID-19 pandemic has introduced dynamics into the asymmetrical relationship between hotel service attribute performances and customer satisfaction. The pandemic magnified the asymmetric influences of particular attributes on satisfaction in the hospitality industry. In addition, the findings indicate the changes in such dynamics over time.

The findings emphasize that hotel managers should consider situational factors when understanding customer satisfaction. Particularly, this study suggests developing tailored strategies for responses during the COVID-19 pandemic. Hotel managers need to address changing customer expectations of service attributes to overcome unprecedented difficulties because of the limitations and new needs imposed during the pandemic.

This study contributes to the hospitality literature with an understanding of the significance of situational factors in asymmetric analysis.

The study examines the impact of real exchange rates and asymmetric real exchange rates on real stock prices in Malaysia, the Philippines, Singapore, Korea, Japan, the United Kingdom (UK), Germany, Hong Kong and Indonesia.

This study uses the asymmetric autoregressive distributed lag (ARDL) approach and non-linear autoregressive distributed lag (NARDL) approach.

The asymmetric ARDL approach shows more economic variables are found to be statistically significant than the ARDL approach. The asymmetric real exchange rate is mostly found to have a significant impact on the real stock price. Moreover, real output and real interest rates are found to have a significant impact on the real stock price. The Asian financial crisis (1997–1998) and the global financial crisis (2008–2009) are found to have a significant impact on the real stock price in some economies.

Economic variables are important in the determination of stock prices.

It is important to examine the impact of asymmetric real exchange rate on the real stock price as the depreciation of real exchange rate could have different impacts than the appreciation of real exchange rate on the real stock price. The previous studies in the literature mostly found the significant impact of nominal exchange rate on the nominal stock price.

This study explores the response of consumer confidence in policy uncertainty in the Japanese context. The study also considers the dynamism of stock market behavior and financial stress and its impact on consumer confidence, which has remained unaddressed in the literature. The role of these control variables has important implications for policy discussions, particularly when other countries can learn from Japanese experiences.

The nonlinear autoregressive distributed lag model postulated by Shin et al. (2014) was used for studying the asymmetric response of consumer confidence to policy uncertainty. This method has improved estimates compared to traditional linear cointegration methods.

The findings confirm the asymmetric impact of policy uncertainty on the consumer confidence index in Japan. The impact of the rise in policy uncertainty is greater than that of a fall in asymmetry on consumer confidence in Japan. Furthermore, the Wald test confirmed asymmetric behavior.

The contribution of this study is threefold. First, this study contributes to the extant literature by analyzing the asymmetric response of consumer confidence to policy uncertainty, controlling for both the financial stress and stock price indices. Second, to test the robustness of the exercise, the study utilized different frequencies of observations. Third, this study is the first to utilize the concept of Arbatli et al. (2017) to formulate a combined index of uncertainty based on economic policy uncertainty index, along with uncertainty indices such as fiscal, monetary, trade and exchange rate policies to study the overall impact of policy uncertainty.

This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The research specifically assesses the effects of CSR disclosure along with other independent variables such as total assets, return on equity, capital expenditures, net profit margin and sales growth on asymmetric information and RoI.

The study applied a panel econometric regression model to examine and test the effects of CSR disclosure and financial indicators on asymmetric information and RoI. A total of 275 samples were garnered from private and state-owned publicly listed companies selected in the SRI-Kehati index as sustainable firms in Indonesia from 2009 to 2019. Those listed companies in the SRI-Kehati index have market recognition and are able to maintain sustainability practices in their business doings. Asymmetric information was calculated by measuring the spread of market share prices. CSR disclosure was measured with global reporting initiative standards. Other variables did not require calculation.

This study discerns the significant influence of CSR disclosure on asymmetric information and RoI on the listed firms of the SRI-Kehati Index in Indonesia. To articulate, the more transparent CSR disclosure is, the asymmetric information should be lower. Besides that, more comprehensive CSR disclosure is associated with a better corporate return of investment. In scrutinizing the control variables, this research validates the significant influence of corporate assets and sales revenue on both dependent variables.

This research has some limitations that require further research. First, the research was conducted in Indonesia. However, other Southeast Asian markets may have their own uniqueness. Therefore, further research is needed in other specific Southeast Asian countries. Second, the sampling bounds on the corporation which gained sustainable recognition in SRI-Kehati Index. Future studies can extend more observation by comparing SRI-Kehati index to firms, which are not listed in the index.

This study recommends better capital market monitoring and evaluation to improve the quality of the firms’ reports in both business and social aspects. By investing more in philanthropic and social activities, firms can signal the market credibility to their various external stakeholders on their market adjustment to changing external business environment.

As for society, robust CSR disclosures will facilitate investors’ understanding of the conditions before making an investment in public listed companies. At the same time, companies issuing the disclosures are expected by society to perform responsibly, as illuminated in the report. As a result, the CSR disclosures will create a virtuous cycle of sustainability between the company and the society.

First, this research reinforces the global corporate governance concern to urge more corporate disclosures on firm performance in an Indonesian context. Second, this study fills the research gap on the association of CSR disclosure to asymmetric information in Indonesian literature. Third, the findings underpin the integration of social responsibility on the firms’ core business decision-makings to warrant business credibility to all firms’ stakeholders in Indonesia.

In this study, an investigation into the asymmetric impacts of crime rate on total factor productivity (TFP) in Nigeria is conducted.

The study employs linear and non-linear autoregressive distributed lag (ARDL) modelling techniques to analyse Nigerian data spanning over a period of 1986–2017. In addition, Granger causality tests are conducted under error correction technique.

The study establishes that crime rate has a significant impact on TFP in the short and long run. In addition, the positive component of crime rate has positive impacts on TFP in the short run while the negative shocks have negative impacts on TFP. However, in the long run, both positive and negative components have negative impacts on TFP in Nigeria.

This study is the first to analyse the asymmetric impact of crime rate on TFP. The study also advances the literature by examining the symmetric impact of crime rate on TFP in an African country (Nigeria) where crime-related activities are rampant. The study is one of the few studies that shed light on nonlinearities in criminal behaviour.

This paper aims to assess the asymmetric effects of oil price shocks and the impact of oil price volatility on the Eurozone’s supersector returns, with a particular emphasis on the impact of the subprime crisis and the euro debt crisis (EDC) on this relationship.

Empirical data consist of daily observations of the 19 EURO STOXX supersector indices and the Brent crude oil price index for the period January 2001 to August 2015. This paper uses a non-linear multifactor market model. This model accounts for heteroscedasticity and breakpoints that are identified by the Bai and Perron (1998, 2003) tests.

The results show that supersector returns are sensitive to oil price shocks. However, in most cases, their responsiveness to oil price volatility is not significant. The relationship between oil price shocks and supersector returns changes through time and depends on the sector. Financial turbulence affects the oil-stock market nexus. In most cases, the subprime crisis has had a positive impact on the oil-stock market relationship, whereas the EDC has had an overall negative effect. Before the subprime crisis, there is an evidence of asymmetric effects for some supersectors. Meanwhile, for most sectors, the asymmetric effects disappear after 2008.

The study improves understanding of the interaction between oil price risk and the Eurozone sector indices returns. Furthermore, it enables global investors to manage the risk inherent to the portfolio managers’ positions.

The purpose of this study is to examine the evidences of leverage effects on the conditional volatility of exchange rates because of asymmetric innovations and its spillover effects among the exchange rates of selected emerging and growth-leading economies.

The empirical analysis uses the sign bias test and asymmetric generalized autoregressive conditional heteroskedasticity (GARCH) models to capture the leverage effects on conditional volatility of exchange rates and also uses multivariate GARCH (MGARCH) model to address volatility spillovers among the studied exchange rates.

The study finds substantial impact of asymmetric innovations (news) on the conditional volatility of exchange rates, where Russian Ruble is showing significant leverage effect followed by Indian Rupee. The exchange rates depict significant mean spillover effects, where Rupee, Peso and Ruble are strongly connected; Real, Rupiah and Lira are moderately connected; and Yuan is the least connected exchange rate within the sample. The study also finds the assimilation of information in foreign exchanges and increased spillover effects in the post 2008 periods.

The results probably have the implications for international investment and asset management. Portfolio managers could use this research to optimize their international portfolio. Policymakers such as central banks may find the study useful to monitor and design interventions strategies in foreign exchange markets keeping an eye on the nature of movements among these exchange rates.

This is one of the few empirical research studies that aim to explore the leverage effects on exchange rates and their volatility spillovers among seven emerging and growth-leading economies using advanced econometric methodologies.

Rising crude oil prices are likely to have an asymmetric and nonlinear negative impact on GDP growth. The purpose of this paper is to ask the following questions: Does the effect of a crude price shock depend on the position of crude price cycle, i.e. is the effect of price shock larger/smaller in periods of already elevated crude price? And, does the effect of crude price shock depend on the position of the economy in the business cycle, i.e. does the crude price shock affect growth differentially in periods of low/high growth?

The authors use a local linear projection (LLP) model to examine the asymmetric impact of crude price on GDP growth in an environment of high crude price. Next, a quantile regression model is used to account for differential impact on growth around high and low growth periods.

Results from the LLP model show that when oil price is above $70, each additional percentage point of increase in oil price results in a 20 basis point (bps) drop in quarterly GDP growth rate on average. The impact is felt between the third and sixth quarters. When oil prices rise above $80, the impact is similar, with a sharper drop in growth (30 bps). The exercise with quantile regression shows that the impact of an increase in crude prices on growth is almost double at lowest quantiles of growth compared with the median.

There is a growing literature that evaluates the impact of oil price in developing economies. However, nonlinearities in crude price-GDP growth dynamics have not received enough attention, especially during phases of elevated crude price or a growth downcycle. The authors believe that accounting for such effects is especially relevant in the present economic scenario of high oil prices because of geopolitical crises and a period of vulnerable growth because of supply chain issues arising out of the pandemic. Using recent data from oil-importing emerging market economies such as India, this paper fills a crucial gap in the literature.

Trust is the glue that holds cooperative relationships together and often exists in an asymmetric manner. The purpose of this study is to explore how to mitigate the issue of losses or increased transaction costs caused by opportunistic behavior in a soft environment where trust asymmetry is quite common and difficult to avoid.

This study focuses on examining asymmetric trust between the government and the private sector in public-private partnership (PPP) projects. Drawing upon both project realities and relevant literature, the primary conditional variables influencing asymmetric trust are identified. These variables encompass power perception asymmetry, information asymmetry, interaction behavior, risk perception differences and government-side control. Subsequently, through the use of a survey questionnaire, binary-matched data from both the government and the private sector are collected. The study employs fuzzy-set qualitative comparative analysis (fsQCA) to conduct a configurational analysis, aiming to investigate the causal pathways that trigger asymmetric trust.

No single conditional variable is a necessary condition for the emergence of trust asymmetry. The pathways leading to a high degree of trust asymmetry can be categorized into two types: those dominated by power perception and those involving a combination of multiple factors. Differences in power perception play a crucial role in the occurrence of high trust asymmetry, yet the influence of other conditional variables in triggering trust asymmetry should not be overlooked.

The findings can contribute to advancing the study of trust relationships in the field of Chinese PPP projects. Furthermore, they hold practical value in facilitating the enhancement of trust relationships between the government and the private sector.