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Scholars have proposed that the negative effects of service failures can be countered by developing and maintaining high quality customer-company relationships or by providing excellent service recovery to customers. While both strategies have been proposed as ways to overcome the negative effects of service failures, there are only a limited number of studies that have examined their joint effects. The purpose of this paper is to fill this gap by investigating the impact of these two strategies jointly on rumination (brooding and reflection), anger and customer forgiveness (revenge, avoidance and benevolence).

The experimental design used in this study is an adaptation of Mattila’s (2001) research design, which manipulated both the level of service recovery and relationship. A total of 677 respondents were assigned randomly to one of the six experimental conditions. Multi-group structural equation modeling was employed to estimate the proposed model across three relational conditions.

This study suggests that the buffering effects are directly triggered by the impact of relationships, whereas, the magnifying effects are primarily related to the customer’s cognitive processes. This study reveals multiple forms of concurrent buffering and magnifying effects in service failures.

The findings of the study led to a classification system of the various forms of buffering and magnifying effects of relationships in the event of service failures. The four active roles of relationships are identified as damage control, benefit catalyst, benefit attenuator and damage catalyst. This proposed typology breaks new ground for theorizing about relationship utilization in negative incidents.

This paper investigates the generalized Fisher hypothesis for nine equity markets in the Asian countries. It states that the real rates of return on common stocks and the expected inflation rate are independent and that nominal stock returns vary in a one‐to‐one correspondence with the expected inflation rate. The regression results indicate that stock returns in general are negatively correlated to both expected and unexpected inflation, and that common stocks provide a poor hedge against inflation. However, the results of the VAR model indicate the lack of a unidirectional causality between stock returns and inflation. It also fails to find a consistent negative response neither of inflation to shocks in stock returns nor of stock returns to shocks in inflation in all countries. It appears that the generalized Fisher hypothesis in the Asian markets is as puzzling as in the developed markets.

Mergers and acquisitions (M&As) are typical corporate strategies that provide hospitality business competitiveness. However, some recent evidence shows that when the merged and acquired (M&Aed) restaurants have strong local characteristics, consumers feel betrayed and perceive the M&As, legitimate business activities, as immoral actions. Building upon expectancy violation theory and moral foundation theory, this study aims to examine the moderating role of locavorism on the indirect effects of preexisting relationship quality on desire for avoidance and psychological loss through brand betrayal and moral judgment.

This study used the M&A of Whataburger chain restaurant as the scenario and recruited 399 Texas Whataburger consumers. A moderated mediation model was developed to examine the mechanisms through which preexisting relationship quality on negative responses to M&A of local restaurants.

The results showed preexisting relationship quality influences desire for avoidance and psychological loss negatively through brand betrayal and moral judgment. The indirect effects of relationship quality on the desire for avoidance and psychological loss become more accentuated among locavores.

The results implied that merging and acquiring (M&Aing) companies should closely monitor consumer dialogues to promptly respond to post-M&A uncertainties when M&Aed company has a strong local identity.

The unique contribution of this study is showing why consumers have extreme negative emotions and judgment of immorality when M&A decisions are made for local hospitality brands through the lens of brand betrayal and moral foundation theory. The results can help M&Aing companies mitigate consumers’ negative responses to M&A of local restaurants.

Since the widespread introduction of floating exchange rate regimes amongst the major currencies in the early 1970s, the problem of correctly anticipating exchange rate fluctuations is one that corporate treasurers of companies having any international dealings have had to face in order to manage successfully the exchange risk inherent in international contracts.

Economic events and key economic variables affect stock markets on a daily basis. Inflation is one such economic variable that influences share prices to some extent. This article focuses on two SADC countries, South Africa and Namibia, and measures the impact of inflation on share market prices in these countries. It can be concluded from the study that neither South African nor Namibian companies can offer investors a perfect hedge against inflation.

This study aims to analyze the effect of cryptocurrency capitalization market development on bank deposits variability in the United Arab Emirates (UAE) spanning the period 2005M1–2020M4 using the novel nonlinear autoregressive distributive lag (NARDL).

The study employs the NARDL recently developed by Shin et al. (2014) to estimate the long and short-run relationships between the variables rather than the widely known ARDL (Pesaran et al., 2001), which suffers from a complex structure in the estimation equation that usually includes lags and differences in both short and long terms. The implementation of NARDL required several proceedings after plotting the descriptive data, commencing with unit root tests, selection of lag length, estimating the long-and-short variables coefficients, heteroscedasticity test and Wald test for symmetries.

The long-run estimations of the positive and negative asymmetric coefficients indicate that cryptocurrencies capitalization has a negative impact on bank deposits in the UAE. Further, the short-run estimations coefficients exhibit that both significant positive and negative partial sum squares of cryptocurrencies decrease bank deposits.

The study has applied to the UAE spanning the period 2005M1–2020M4 using the NARDL.

The short-run estimations coefficients exhibit that both significant positive and negative partial sum squares of cryptocurrencies decreases bank deposits, which means that the increase in the magnitude of cryptocurrencies capitalization stimulates depositors and speculators to adjust their portfolios towards contracting their deposits in banks to invest partially in cryptocurrencies, on the other hand, the decline in cryptocurrencies capitalization process spur depositors and speculators to reduce their deposits for purchasing cryptocurrencies at lower prices.

The study infers that individuals and businesses are cautious when investing in cryptocurrencies, and they need more certainty and trust to include these types of assets in their portfolios. The fluctuation in cryptocurrencies capitalization prompts speculators to change their deposits according to the cryptocurrencies' prices.

This study explores the short-and long-run asymmetric impacts of cryptocurrencies capitalization development on bank deposits volatility in the UAE, based on a NARDL, for providing a manifest depiction of whether the cryptocurrencies industry might be a threat to conventional banking system performance in the potential future.

This study examines the short-run and long-run impact of macroeconomic variables such as industrial production index, inflation, exchange rate, interest rate, foreign direct investment and trade balance, on KSE 100 index and sectorial stock indices under bearish, bullish and normal states of the stock market prices. Moreover, we take into account the effect of three crises observed from 2005 to 2009.

This study uses quantile autoregressive distributed lag (QARDL) model for examining the short-run and long-run effect across various quantiles of the dependent variables and compare its' results standard autoregressive distributed lag (ARDL) model.

ARDL estimates indicate that, in the long-run, industrial production index, trade balance and foreign direct investment significantly affect stock prices. These findings remain same when three crises have been taken into consideration. In addition, estimates from QARDL model indicate that, in the short-run, the effect of exchange rate, interest rate, consumer price index and foreign direct investment, varies across bearish, bullish and normal states of the overall stock prices. Moreover, the short-run findings for Auto Assembler, Cement, Commercial Banks sector are consistent with overall stock indices, whereas other sectors, such as, Oil and Gas and Power Generation and distribution are asymmetrically affected by all macroeconomic variables. In the long-run, the effect of all macro-variables varies across different states of the stock markets except industrial production index for Auto Assembler sector, Oil and Gas sector and composite index of KSE 100 index.

We take into account the effect of three crises observed from 2005 to 2009 and also examine the macroeconomic effect across bullish, bearish and normal states of the sectorial stock indices and composite index of Pakistan stock exchange. Finally, we use novel approach, called QARDL model, which has several advantages over other techniques.

The issue of exposure management, a significant subset of international financial management, is closely intertwined with the notions of foreign exchange risk and exchange market efficiency. Since value is a function of risk, that makes an understanding of these notions germane to those who seek value in global markets. This study finds earlier attempts specifying exchange market efficiency inadequate and those dealing with foreign exchange risk deficient in generating prescriptions for exposure management. The paper focuses on the notion of the market hierarchy (goods, financial and foreign exchange) and the inter‐relationships among the markets. It helps the reader understand the theoretical constructs underlying prevailing schemes for foreign exchange exposure management. Most importantly, it identifies situations under which exposure management is relevant and potentially rewarding. It also points out circumstances when existing dictates for management will yield benefits only by accident. The paper offers some specific alternative suggestions to guide managers in making informed and logical decisions.

The paper aims to examine asymmetry in the cyclical behavior of private consumption in a sample of nine developing countries in the Middle East.

The empirical model includes three policy variables: government spending, the money supply, and the exchange rate. Anticipated movements in these variables are likely to vary with agents' forecasts of macroeconomic fundamentals and, therefore, determine planned consumption. Unanticipated policy changes, in contrast, determine cyclical consumption.

The results indicate that fluctuations in private consumption are mostly cyclical. The stabilizing function of policy shocks varies across countries and appears to be asymmetric within countries.

Asymmetry necessitates a thorough evaluation of the positive and negative effects attributed to changes in policy variables and the necessary reforms to relax binding constraints.

The purpose of this paper is of twofold: first, to empirically examine the short-run and long-run impact of macroeconomic variables such as industrial production, foreign direct investment (FDI), trade balance (TB), exchange rate, interest rate (IR) and consumer price index (CPI) on stock prices (SP) of KSE-100 index; and second, to examine whether this relationship changes as a result of the financial crisis.

This study uses an autoregressive distributed lag model by using the full sample period data from 1997Q3 to 2018Q2 and the post-crisis period data from 2008Q3 to 2018Q2. Moreover, it uses variance decomposition analysis to examine the importance of each variable in explaining SP.

The findings of the full sample period indicate that in the long run, TB, exchange rate and IR negatively affect SP whereas CPI and industrial production positively affect SP. However, the post-crisis period data indicate that only CPI positively affects the SP in the long run. Finally, variance decomposition analysis indicates 30 percent variance in SP is explained by its own shock.

The study findings suggest that macroeconomic variables have a significant role and can be considered important for taking investment and/or policy decisions. Especially, Governments and other regulators may need to take measures to increase the TB since it can help to increase the performance of the Pakistani stock market. Furthermore, investors may consider that findings change when the financial crisis has been taken into consideration.

This study uses two additional variables, namely FDI and TB by using the robust technique in the context of emerging countries like Pakistan. Furthermore, it takes into account the impact of the financial crisis on the underlying variables.