Search results

Financial systemic risk is often assessed by the interconnectedness of financial institutes (FI) in terms of cross-ownership, overlapping investment portfolios, interbank credit exposures, etc. Less is known about the interconnectedness between FIs through the lens of consumer credits. Using detailed consumer credit data in Canada, this chapter constructs a novel banking network to measure FIs’ interconnectedness in the consumer credit markets. Results show that FIs on average are more connected to each other over the sample period, with the interconnectedness measure increases by 19% from 2013 Q4 to 2019 Q4. FIs with more diversified portfolios are more connected in the network. Among various types of FIs, secondary FIs have the notable increase in interconnectedness. Domestic Systemically Important Banks and secondary FIs offering a broad range of loan products are more connected to large FIs, while those specialized in single loan types are more connected to their industry peers. FI connectedness is also significantly related to their participation in the mortgage markets.

This study aims to investigate the applicability of Ritter’s (2000) framework of interconnectedness in a triadic relationship between a provider, intermediaries and customers and to extend the framework by considering how the state of the relationships in a triad influences the relationship dynamic.

A qualitative case study research method with multiple sources of evidence was adopted in this study. The case study focusses on a triadic relationship of one of the largest UK-based financial services institutions, Provider XYZ, with independent financial advisers and customers.

The findings confirm that the synergy effect, lack effect, competition effect and by-pass effect exist in the triadic relationship. The findings also acknowledge that the state of the relationships in a triad, whether they are positive (+), negative (−) or neutral (0), combined with the identified interconnectedness effect determine the dynamic of the triadic relationship network.

This paper extends the existing framework of interconnectedness by considering how the change of the relationship state changes the relationship dynamic in a triad. By evaluating both the effect of interconnectedness and the state of the relationships in a triad, managers can identify and manage possible conflicts in a triad and enhance the effectiveness of the triadic relationship.

This study investigates how a firm's structural embeddedness, the structural position in a supply network that consists of major customers, influences the acquisition of supplier trade credit. Specifically, this study examines how network interconnectedness, network integration and network independence of a firm affect its ability to acquire supplier trade credit.

This study utilizes financial data from Compustat to build a longitudinal dataset of manufacturing firms from 1998 to 2013. Customer segment disclosure data are used to construct firm-level network variables. A fixed effect regression approach is used for estimation.

The study results show that network interconnectedness is negatively associated with supplier trade credit, while network integration is positively associated with supplier trade credit. Network independence does not influence the extent of supplier trade credit. The post hoc analysis shows that the effects of the hypothesized factors vary under different product categories and credit ratings.

This study broadens the supply chain finance literature by showing how a firm's embedded network structural position can influence its ability to obtain supplier trade credit.

The purpose of this paper is to examine the evolution of interconnectedness of European insurers among themselves, as well as with other non-financial firms, for the period 2000–2021 and to analyze the stock return movements around the costliest catastrophic events (hurricanes) in the past two decades.

This paper follows the “simple” approach of Patro et al.(2013) and examines the daily stock return correlations of the largest 30 insurers and the largest 30 non-financial firms headquartered in Europe. In addition, the study uses event study methodology to examine stock return movements around the costliest hurricanes.

We find that the European insurance sector has become highly interconnected during the past two decades; however, its increasing connectedness with non-financial firms is limited to a few firms. In addition, we find weak evidence of the destabilizing effects of catastrophic events on European insurers and non-financial firms; however, the potential for cat risk contagion effects exists as the insurance industry becomes heavily interconnected.

The extant literature is largely concerned with the contribution of the insurance sector to the systemic risk of the financial sector. We focus on a specific region (Europe) and analyze the evolution of interconnectedness of the largest insurers within the insurance sector as well as with the largest non-financial firms encapsulating important crisis periods. In addition, we relate to the literature that examines the market reactions around catastrophic events to test the relevance of traditional insurance activities in instigating potential contagion shocks.

Current accounting practice tends to split environmental complexities into quantifiable, codified elements, producing codified simplifications of the “complex” in pursuit of environmental externalities. This has led to standardization, but has done little to motivate organizations to engage in more environmentally-aware behavior that transcends the coercive dimensions of codification. The work of Alexander von Humboldt (1769–1859) can bring new insights and perspectives to social and environmental accounting (SEA). In discussing Humboldt's philosophy of understanding the interconnectedness between people, their contexts (cultures) and their environment, the authors contribute to the emerging SEA literature on notions of interconnectedness and the web of accountabilities. The authors also explore how a Humboldtian approach may help break through the current epistemological boundaries of SEA by combining accurate measurement with imagery to make the “complex” manageable whilst embracing interconnectedness and hermeneutics.

In this conceptual paper, the authors humbly draw on Humboldt's legacy and explore the underlying philosophical assumptions of Humboldtian science. The authors then contrast these with current SEA approaches in the literature and derive new insights into their intentionality and practical use.

Re-examining Humboldt's pioneering work enables us to pinpoint what might be missing from current SEA approaches and debates. Humboldt upheld an “ethics of precision,” which included both measurement accuracy and qualitative relevance, and combined hands-on scientific fieldwork with the aesthetic ideals and interconnectedness of the age of Romanticism. Drawing on Humboldtian science, the authors propose focusing on the interconnectedness of nature and humanity, embracing the qualitative and hermeneutical and including aesthetics and emotion in environmental visualizations.

The paper elucidates why and how Humboldtian science might inform, guide and enhance the emancipatory potential of SEA in the 21st century. Specifically, the authors discuss Humboldt's approach of linking accurate measurement with imagery to convey a sense of interconnectedness.

This paper aims to focus on the effect of intranet‐based social networking services (SNS) on the activity of the firm, in particular on the change in the number of business connections and on the time and cost‐savings brought about by such SNS.

The authors hypothesize that the use of intranet‐based SNS positively influences “social network productivity” defined as the relationship between interconnectedness and knowledge performance, whereby an increase in the number of business contacts may result in a shortened and less costly retrieval of work‐relevant knowledge. Drawing on a large sample of Japanese respondents, a taxonomy based on levels of organizational social capital and innovativeness was used to assess the moderating effects of social capital and innovativeness on social network productivity.

SNS were found to mildly improve efficiency in accessing knowledge or in increasing the number of business contacts. More importantly, this study reveals that in using intranet‐based SNS, companies with both higher social capital and innovativeness displayed higher social network productivity.

The use of SNS was treated implicitly and should therefore be measured independently, and detailed data on the respondents' organizations would be useful to reveal organizational clusters.

Because fostering social capital and innovativeness rests largely on the firm's organizational culture, leaders who want to implement SNS effectively should pay special attention to the culture of their organization.

In the use of business SNS, practitioners need to consider particular organizational characteristics that may affect the effectiveness of intranet‐based SNS.

The purpose of this paper is to broaden the current view of customer portfolio management by including the notion of customer interconnectedness.

The previous research in customer portfolio theory is reviewed, with special attention to customer interconnectedness. Customer interconnectedness as a criterion to build customer portfolios is studied in the example of large Russian b2b company. First, the results of participative inquiry research within the company are presented and then the insights from five in‐depth interviews are described.

Findings suggest that the assumption of customer independence in a portfolio, on which most of customer portfolio models are based, may not fit certain markets and industries. This paper sheds light on to the specifics of customer portfolio building, in the Russian context and results in the customer interconnectedness assumption.

Additional research beyond the provided exploratory study is needed to quantitatively test the assumption and generalize the results. The main research implications relate to the new perspective on customer portfolio theory based on customer interconnectedness.

The paper provides researchers and practitioners with insights into customer portfolio models specifics existing in Russia. This knowledge can be helpful, also, for foreign companies entering the Russian market.

The process of customer portfolio building in the Russian b2b markets has been addressed for the first time in b2b marketing research. The analysis of customer portfolio building in Russian b2b context shows that customer independence assumption is challenged and should be replaced with customer interconnectedness approach.

The aim of this paper is to advocate and implement cointegration methods for the estimation of interconnectedness of service quality and customer loyalty as intangible strategic assets within management decision.

Using longitudinal time series quarterly data on loyalty and service quality, the paper uses cointegration methods to empirically estimate the weight of interconnectedness of customer loyalty and service quality as intangible strategic assets.

The research evidence suggests that customer loyalty and service quality are interconnected intangible strategic assets that managers can develop, accumulate, estimate and deploy for superior competitive advantage.

To the extent that the global economies are increasingly service‐driven, managerial capability to estimate intangible strategic assets as drivers of superior competitive advantage will remain strategically important. Assumedly, this paper is the first to illustrate how cointegration methods can be used by managers to estimate interconnectedness of intangible strategic assets. In this sense, to the extent that this method is new to managers, it represents another toolkit of intangible strategic asset management for managers.

We employ three systemic risk measures of banks, including the systemic risk index (SRISK) and marginal expected shortfall (MES) of Brownlees and Engle (2017) and the conditional Value-at-Risk (ΔCoVaR) of Adrian and Brunnermeier (2016), to analyze bank's exposure and contribution to systemic risk in the banking system when a financial crisis occurs. We find evidence that time-varying systemic risk exists, and systemic risk exposures escalate with the interconnectedness of banks. We also find revenue diversification is another significant factor that reduces a bank's exposure to systemic risk but not for banks in Taiwan and Singapore.