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The purpose of this paper is to study the evolution of financial contagion between Eurozone banks, observing the credit default swaps (CDSs) market during the period 2009–2017.

The authors use a dynamic spatial Durbin model that enables to explore the direct and indirect effects over the short and long run and the transmission channels of the contagion.

The results show how contagion emerges through physical and financial market links between banks. This finding implies that a bank can fail because people expect other related financial institutions to fail as well (self-fulfilling crisis). The study provides statistically significant evidence of the presence of credit risk spillovers in CDS markets. The findings show that equity market dynamics of “neighbouring” banks are important factors in risk transmission.

The research provides a new contribution to the analysis of EZ banking risk contagion, studying CDS spread determinants both under a temporal and spatial dimension. Considering the cross-dependence of credit spreads, the study allowed to verify the non-linearity between the probability of default of a debtor and the observed credit spreads (credit spread puzzle). The authors provide information on the transmission mechanism of contagion and, on the effects among the largest banks. In fact, through the study of short- and long-term impacts, direct and indirect, the paper classify banks of systemic importance according to their effect on the financial system.

The purpose of this paper is to explore the two effects (flow effect and resonance effect) during a group complaint based on the emotional contagion theory.

This study uses an experimental research design in which participants’ negative emotions dynamically change driven by group emotional interactions when they are experiencing a group complaint.

Flow effect and resonance effect can occur during the process of group emotional contagion. Specifically, when group customers’ negative emotional similarity is low in a group complaint, group emotional contagion leads to flow effect (i.e. negative emotions flow from customers with higher levels of negative emotions to those with lower levels of negative emotions). By contrast, when group customers’ negative emotional similarity is high in a group complaint, group emotional contagion leads to resonance effect (i.e. group customers’ negative emotions increase significantly).

Most of the previous research studies the process of emotional contagion from one with higher levels of emotional displays to the other with lower levels of emotional displays, which is named as the “flow effect” of emotional contagion. However, when two individuals with the same levels of negative emotional displays interact with each other, the flow effect of emotional contagion is very likely not to occur. It is interesting to find that both individuals’ negative emotions increase significantly during the process of emotional contagion. The authors propose the “resonance effect” of emotional contagion to explain this phenomenon.

This study aims to extend the previous research on contagion and proposes an integrative paradigm in which consumer goals and contagion recipient factors are identified as the key variables leading to the emergence of the contagion phenomenon. When a consumer has an active goal, a product touched by goal-congruent sources leads to positive product evaluation and enhances consumer performance when the product is used.

This research conducted five experimental studies in online and offline retail settings to examine the effect of contagion on evaluations of contagion objects and performance in goal-related tasks.

Across five studies, the authors demonstrated that the activation of a goal leads to contagion-based product evaluation and performance enhancement effects. The authors theorized and showed that the contagion-based process triggered during goal pursuit led to a more favorable evaluation of contagion products (Studies 1, 2 and 3). The authors also showed that enhanced consumers’ commitment toward a goal, which in turn led to enhanced performance in a real task that contributed to achieving one’s goal (Study 4). These effects emerged only when the object was physically touched by a goal-congruent contagion source and were more pronounced for the consumers who experience a high (vs low) degree of goal discrepancy (Study 5).

The current research examined the contagion phenomenon in a few predetermined goal domains (e.g. health improvement goals, career success goals, marriage success goals). Although the authors found consistent effects across different types of goals, future research can examine a more comprehensive set of consumer goals and improve the limitation of the current research to generalize the goal-based contagion phenomenon to various consumer goals.

This study suggests that it is important for retailers, in particular sellers and buyers in the secondhand markets, to understand consumer goals and prepare an appropriate contagion environment for favorable evaluation of their offerings. One possible implication is that sellers may be best served as priming certain goals. The findings also indicate that secondhand sellers may be well served to emphasize seller characteristics in certain instances and de-emphasize them in others to maximize sales.

This research proposes a new variable, namely, goal activation, and presents an integrative contagion paradigm that not only helps explain previous research findings but also offers a new perspective on the contagion phenomenon.

Access-based services (ABSs) provide short-term access to goods, physical facilities, space or labor in exchange for access fees without transferring legal ownership (e.g. bike-sharing). This study aims to investigate what service providers can do to minimize financial losses when customers misbehave with the service providers’ assets in ABSs. The study also examines the effects of product misuse on subsequent customers and what factors may mitigate it.

The study uses a scenario-based experiment to test the conceptual model.

Injunctive norms reduce the mediating effect of descriptive norms on misbehavior contagion. As generally accepted and approved (injunctive) norms become salient, they override the impact of prevailing (descriptive) norms, thereby breaking the vicious cycle of misbehavior contagion. Customer-company identification (CCI) and reduced interpersonal anonymity mitigate the effects of previous misbehavior on misbehavior contagion.

ABS firms should strive to mitigate the financial and reputational losses they suffer from customer misbehavior. Such mitigation would be a win-win for the ABS firm (reduced misbehavior) and the customers (improved user experience).

The research complements prior research highlighting the role of social norms in misbehavior contagion. The study demonstrates the role of boundary conditions by investigating the interactive effects of descriptive and injunctive norms. In addition, it shows the positive impact of CCI and reduced interpersonal anonymity on containing misbehavior contagion.

The purpose of this paper is to explore the spillover effects of offensive commenting in online community from the lens of emotional and behavioral contagion. Specifically, it examines the contagion of swearing – a linguistic mannerism that conveys high-arousal emotion – based upon two mechanisms of contagion: mimicry and social interaction effect.

The study performs a series of mixed-effect logistic regressions to investigate the contagious potential of offensive comments collected from YouTube in response to Donald Trump’s 2016 presidential campaign videos posted between January and April 2016.

The study examines non-random incidences of two types of swearing online: public and interpersonal. Findings suggest that a first-level (a.k.a. parent) comment’s public swearing tends to trigger chains of interpersonal swearing in the second-level (a.k.a. child) comments. Meanwhile, among the child-comments, a sequentially preceding comment’s swearing is contagious to the following comment only across the same swearing type. Based on the findings, the study concludes that offensive comments are contagious and have impact on shaping the community-wide linguistic norms of online user interactions.

The study discusses the ways in which an individual’s display of offensiveness may influence and shape discursive cultures on the internet. This study delves into the mechanisms of text-based contagion by differentiating between mimicry effect and social interaction effect. While online emotional contagion research to this date has focused on the difference between positive and negative valence, internet research that specifically looks at the contagious potential of offensive expressions remains sparse.

This study aims to investigate the busy season contagion effects on other clients of the Big 4 auditor’s local office associated with the non-timely (NT) filing(s) by large accelerated filer (LAF) client(s) of the office. Specifically, the authors examine the influence such events have on the audit quality and timeliness of other clients of that office.

Using panel data of annual NT filings of LAF clients between 2006 and 2019, the authors apply the ordinary least squares regression technique to model audit reporting lag (ARL) and the logistic regression technique to model the probability of restatements.

Controlling for audit firm, industry and year-fixed effects, the authors find that a LAF NT filing reduces audit quality and audit timeliness of other clients of the office, as measured by restatement risk and ARL. The impact on ARL is most pronounced on the medium and small clients within the office. The deteriorated audit quality is observed for medium clients.

The results of this study have practical implications for auditors and regulators. They reveal the contagion effect in the auditor’s local office with the NT LAF client. The main limitation of the study is the lack of staffing utilization data to allow for drawing conclusions on causality.

To the best of the authors’ knowledge, this is the first study to document the contagion effect of NT filings of LAF clients conducted at the auditor’s local office level.

This study aims to investigate the social, utilitarian and hedonic benefits associated with a brand behavioral performance from an attitude contagion theory perspective. An integrated empirical model was constructed to identify the antecedents and consequences of consumer attitude contagion.

Data were obtained from 609 members of Facebook apparel brand fan pages using purposive sampling. Structural equation modeling was used to validate the proposed theoretical model.

Social, utilitarian and hedonic benefits could be used to explain the effects of attitude contagion on various relationships. Attitude contagion factors partially mediate exogenous factors and the behavior of brand fans. Regarding the attitude contagion effect, perceived community attitude and attitude toward fans’ sponsored recommendation posts have stronger explanatory powers for attitude toward products than for attitude toward brands. Specifically, attitude toward brands can indirectly influence members’ purchase intention through brand recall. The proposed model exhibited desirable goodness-of-fit.

The findings can give brand community managers insight into the development of consumer attitude contagion and assist companies to improve their community management.

This study contributes to multiple perspectives in the literature regarding social, utilitarian and hedonic benefits and adopted an extension viewpoint to explain that the formation of consumer attitude is a complex process.

The purpose of this paper is to investigate the effect of bankruptcy announcements on the bankrupt firm's competitors' stock returns.

Starting with a sample of Chapter 11 bankruptcies from 1980 through 2008, the authors use event study methodology to examine the returns of bankrupt firm's rivals around the filing date. The authors employ a t-test of means across groups to check for differences in returns based on a competitive strategy measure (CSM). The CSM classifies industry rivals into strategic complements or substitutes. The authors also separate the sample based on traditional or non-traditional bankruptcies and conduct explanatory regressions on the abnormal returns using economically important independent variables such as the CSM, leverage and the Herfindahl index.

Similar to previous research, the paper finds that less concentrated industries and industries with high leverage suffer greater negative wealth effects when a firm within the industry announces a bankruptcy. Extending current research, the paper finds strategic interaction within the industry is an important factor in determining industry portfolio returns. Rivals characterized as strategic complements exhibit significant negative valuation effects while rivals characterized as strategic substitutes do not. Finally, the paper finds that this strategic effect is dominant when the future cash flows and outcome of the reorganization is more uncertain as substantiated by the difference between traditional and non-traditional bankruptcy filings.

This is believed to be the first empirical article to examine how the CSM affects the returns of bankrupt firms' rivals.

The purpose of this paper is to examine market reactions to private equity placements and intra-industry information spillover effects in the Taiwan Stock Exchange.

The authors first use the market model to compute the abnormal announcement returns. To examine the joint impact of the private investment in public equity (PIPE) purposes and the lead investor industry, the authors regress the issuers’ cumulative abnormal returns (CARs) on the dummy variables of PIPE purposes and the lead investor industry. To study the spillover effects, the authors regress the rivals’ CARs on the issuers’ CARs, PIPE purposes, and the lead investor industry. Finally, the industry Herfindahl index is used as a proxy for the market power of issuers and rivals to examine its impact on the spillover effects.

The authors find that issuing firms experience positive abnormal returns during the announcement period. Issuers enjoy more positive market reactions when the proceeds of offerings are primarily used to establish a long-term strategic alliance or to integrate business and when the lead investor is in the same industry. Furthermore, the authors show that the contagion effect dominates the competitive effect in private equity placements at the aggregate level. At the subsample level, the authors find competitive effect overpowers contagion effect when the purpose of offerings is primarily used to establish a long-term strategic alliance or to integrate business and when the lead investor is in the different industry. Finally, the authors show that rivals with relative lower market power enjoy more positive contagion effects.

First, the analysis documents the simultaneous importance of both the purposes of private offerings and the lead investor’s industry on announcement reactions, which shed new light on the positive abnormal returns during the announcement period. Second, the study adds to the literature on the information spillover effects by analyzing the role played by purposes of offerings and rivals’ market power. This paper provides a more complete picture of the offsetting competitive and contagion effects.

The purpose of this paper is to investigate whether the relationship of interdependence and contagion between BRICS countries and emerging non-BRICS countries is similar to that observed between developed countries and emerging BRICS countries.

The authors analyzed 15 markets: 5 BRICS, 5 developed (USA, Japan, Germany, England and France) and 5 emerging markets (Mexico, Indonesia, Turkey, Iran and Poland). Based on the time series of returns of the main stock indexes of each country, referring to the period from 2008 to 2018, the authors applied Granger causality tests, vector auto-regression and the dynamic conditional correlation-GARCH model.

The results led to the rejection of the main hypothesis and showed adherence to the behaviors predicted in the literature for the relations between the groups of markets.

This paper, besides analyzing the interdependence between markets in times of crisis, analyzes the effect of contagion between developed and emerging markets.