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Research on acquisition performance has not considered the customer perspective for a long time. Based on associative network theory, we propose two spillover effects – forward and reverse – to reflect the effect of acquirer and target reputation on customer responses toward a horizontal acquisition. The reputation of both the acquirer and target can transfer to acquisition and affect customer attitudes toward the post-merged corporation and target customer retentions. However, the influence of the acquirer reputation (forward spillover effect) is stronger than that of the target reputation (reverse spillover effect). Because of asymmetric spillover effects from the acquirer and target, we suggest that the performance effects of A acquiring B may not be the same as that of B acquiring A, given that A and B are highly related firms. The level of post-acquisition brand integration moderates the asymmetric spillover effect on acquisition performance. A higher level of post-acquisition brand integration indicates a stronger asymmetric spillover effect on acquisition performance.

This study examines whether the current virus pandemic (COVID-19) has any significant negative effect on returns series of selected stock markets in the developed, Asian and GCC countries. For this purpose, the EGARCH (1, 1) model and the News Impact Curve (NIC) are applied to examine the persistence of symmetric volatility, leverage-effect and inducing volatility by preceding bad or good news. The findings suggest that the volatility is persistent in all stock markets, but it is under unity for many stock markets, which means the volatility will persist for the short term in most cases. Furthermore, the findings of asymmetric volatility analysis indicate the presence of leverage-effect over the study period in all the selected stock markets except Japan, Indonesia and Hong Kong. However, NIC plots provide evidence that the negative shock (news) of the COVID-19 outbreak would put forward a higher volatility on all selected stock market returns in the near future, except for the stock markets in Thailand, Japan and Singapore, where the shocks (positive) suggest a higher subsequent period of conditional variance compared to the current shocks (negative) of the COVID-19 pandemic. Consequently, understanding the volatility structure of stock market returns is imperative for policy guidance among the policymakers and potential investors. For policymakers, as the volatility caused by the COVID-19 outbreak is persistent for the short term, this may encourage governments and central banks to implement effective measures to stimulate fiscal and monetary policies to counter the distraction caused by the pandemic, support the economic activities and cushion the local firms from the pandemic effect. For investors, the findings suggest that long-term investment decision should be taken to invest in all stock markets that are negatively affected by the COVID-19 outbreak to achieve capital gain in the future, while short-term investment decisions may be undertaken to take advantage from the short-term market volatility.

Existing multivariate generalized autoregressive conditional heteroskedasticity (GARCH) models either impose strong restrictions on the parameters or do not guarantee a well-defined (positive-definite) covariance matrix. I discuss the main multivariate GARCH models and focus on the BEKK model for which it is shown that the covariance and correlation is not adequately specified under certain conditions. This implies that any analysis of the persistence and the asymmetry of the correlation is potentially inaccurate. I therefore propose a new Flexible Dynamic Correlation (FDC) model that parameterizes the conditional correlation directly and eliminates various shortcomings. Most importantly, the number of exogenous variables in the correlation equation can be flexibly augmented without risking an indefinite covariance matrix. Empirical results of daily and monthly returns of four international stock market indices reveal that correlations exhibit different degrees of persistence and different asymmetric reactions to shocks than variances. In addition, I find that correlations do not always increase with jointly negative shocks implying a justification for international portfolio diversification.

It is well known that volatility asymmetry exists in financial markets. This paper reviews and investigates recently developed techniques for Bayesian estimation and model selection applied to a large group of modern asymmetric heteroskedastic models. These include the GJR-GARCH, threshold autoregression with GARCH errors, TGARCH, and double threshold heteroskedastic model with auxiliary threshold variables. Further, we briefly review recent methods for Bayesian model selection, such as, reversible-jump Markov chain Monte Carlo, Monte Carlo estimation via independent sampling from each model, and importance sampling methods. Seven heteroskedastic models are then compared, for three long series of daily Asian market returns, in a model selection study illustrating the preferred model selection method. Major evidence of nonlinearity in mean and volatility is found, with the preferred model having a weighted threshold variable of local and international market news.

This study examines return and volatility spillovers from the US and Japanese stock markets to three South Asian capital markets – (i) the Bombay Stock Exchange, (ii) the Karachi Stock Exchange and (iii) the Colombo Stock Exchange. We construct a univariate EGARCH spillover model that allows the unexpected return of any particular South Asian market to be driven by a local shock, a regional shock from Japan and a global shock from the USA. The study discovers return spillovers in all three markets, and volatility spillovers from the US to the Indian and Sri Lankan markets, and from the Japanese to the Pakistani market. Regional factors seem to exert an influence on these three markets before the Asian financial crisis but the global factor becomes more important in the post-crisis period.

Purpose – Despite an abundance of literature on the effects of copyright infringement on music consumption, empirical evidence remains ambiguous. The aim of this chapter is to quantify the effect of copyright infringement on recorded music purchases and live music attendance for Spanish frequent music consumers, and to measure its effect on participation for all music consumers.

Design/methodology approach – We rely on survey data for the Spanish population as our main information source and use propensity score matching to estimate the average effect of copyright infringement on music consumption. In order to do so, the methodology aims at estimating the difference between actual outcomes (record purchases or attendance to live concerts) for copyright infringers and the (counterfactual) outcome would they had not been infringers.

Findings – Two findings stand out. First, and with regards to recorded music consumption, we find a net positive effect of copyright infringement on full album purchases although a nonsignificant one for tracks. Second, there is a positive and significant effect on live attendance, which is consistent with an indirect appropriation effect across products. These results are robust when participation is considered, but some interesting differences arise between recorded music purchasers and live concerts attenders.

Originality/value – First, the use of a counterfactual control group provides an additional approach to the assessment of copyright infringement. Second, within the same framework we investigate the effects of copyright infringement on recorded and live music, an approach that sheds some light on the degree of complementarity between both markets.

Reactive groups adopt a variety of repertoires ranging from institutional resistance to violence to counter mobilizing efforts of movements. Countermovement studies provide useful insights into how violence by non-state actors can constrain social movements’ success. Few studies however considered the possibility that violence may, on the contrary, facilitate the outcomes sought by the movement. Under what conditions do political killings of movement members affect support for the movement? To answer this question, we follow the evolution of the Kurdish ethnic movement in Turkey as a movement party and track changes in the movement’s constituency in response to countermovement violence (1991–2002). The study uses an original dataset of countermovement killings by the ethnic movement’s Islamist rival, Hizbullah, across 113 districts in 13 southeastern provinces. We demonstrate that countermovement violence has non-uniform effects on electoral support for the movement party. These effects are conditional on initial movement strength: in localities with prior loyalties to the ethnic movement, Hizbullah-inflicted harm consolidates the movement party’s constituency. By contrast, countermovement violence is met with reduced support where the movement is weak and is struggling to make inroads to the community. Our findings suggest that initial preferences might play important roles in understanding movement outcomes.

Empirical research on European stock markets has shown that they behave differently according to the performance of the leading financial market identified as the US market. A positive sign is viewed as good news in the international financial markets, a negative sign means, conversely, bad news. As a result, we assume that European stock market returns are affected by endogenous and exogenous shocks. The former raise in the market itself, the latter come from the US market, because of its most influential role in the world. Under standard assumptions, the distribution of the European market index returns conditionally on the sign of the one-day lagged US return is skew-normal. The resulting model is denoted Skew-GARCH. We study the properties of this new model and illustrate its application to time-series data from three European financial markets.

Major demographic trends are affecting the work schedules of U.S. employees with likely consequences for health and quality-of-life outcomes. These trends include long work hours, at least for some groups of employees, and an increasing proportion of employees in the U.S. and other countries who are working nonstandard work schedules. This chapter contains a review of the empirical literature linking the number of hours worked and the distribution of those hours at the individual and couple level to a variety of outcomes, cross-sectionally and longitudinally. In addition, because the majority of U.S. workers live in dyads (Jacobs & Gerson (2004). The time divide: Work, family and gender inequality. Cambridge, MA: Harvard University Press), major attention is given to the impact of work hours on the employee's spouse as well as on the employee. It is also noted that the relationship between work hours and outcomes might be different among employed single women with children. Data are presented from two new studies conducted by my research team to fill some of the critical knowledge gaps. Finally, I suggest some directions for future research.