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This paper aims to determine whether Islamic banks (IBs) and conventional banks (CBs) in Tunisia are distinguishable from one another based on financial characteristics during the 2005–2014 period covering the 2008 global financial crisis (GFC) and the 2011 Tunisian revolution.

For the comparison between IBs and CBs, 11 hypotheses are formulated to distinguish between the two types of banks. The authors use a univariate analysis based on the multi-dimension figures investigation and a multivariate one based on the robust OLS technique for panel linear regression with mixed effects.

Bank-specific factors, dummy and dummy interacting variables indicate that there are differences between Islamic and conventional bank behavior. Both methods show that IBs are more liquid, more profitable and riskier than CBs. Post-2011 Tunisian revolution, small IBs (small CBs) are more (less) solvent, large IBs are more stable and both types of banks are more liquid, which explain why Tunisian governments have relay on bank system to cover budget deficits post-2011 revolution.

In investigating the feature of IBs and CBs from the Tunisian context, the authors take into account the effect of two abnormal events (2008 GFC and 2011 Tunisian revolution) on IBs through interaction variables.

The purpose of this paper is to test the weak form of the efficient market hypothesis (EMH) using monthly data from 2004M08 to 2018M04 for two Canadian stock indices: the Islamic (DJICPI) and the conventional (CCSI). This paper investigates whether Islamic and/or conventional stock market would be efficient through the non-stationarity test of the stock indices.

The authors conduct the linearity test of Harvey et al. (2008) to identify whether the considered series has linear or nonlinear behavior. If the time series exhibits nonlinear evolution, then the authors apply nonlinear unit root tests (three KSS type tests and Sollis tests).

Linearity test results say that LCCSI has nonlinear behavior, while Dow Jones Islamic Canadian Price Index, LDJICPI, is a linear process. Then, the findings of this paper show that only Canadian Islamic Price Index (DJICPI) has the characteristics of random walk indicating that only conventional stock markets are inefficient. The major implication is that in Canada, fund managers and investors can (cannot) enjoy excess returns to their investment in conventional (Islamic) stock market.

Numerous empirical studies of the weak EMH are carried out within a linear framework. However, stock indices can show nonlinear behavior as a result of 2008 global financial crisis. To contribute to the existing literature on the Islamic and conventional stock market efficiency, the authors take into account both structural breaks and nonlinearity. Thus, as a testing strategy for weak EMH, the authors perform (Harvey et al., 2008) linearity test to examine the presence of nonlinear behavior and correct for outliers effect when it is needed.

The purpose of this study to investigate the sensitivity of stability and insolvency of the Tunisian financial banking with respect to banks’ specific factors as well as to the macroeconomic conditions (including gross domestic product growth, inflation rate, foreign direct investment [FDI], EXRate, INT and unemp) during 2005–2014 period covering 2011 Tunisian revolution.

The variables of interest the financial institution stability which is measured by Z-score and solvency indicators that are determined by the capital adequacy ratio (CAP) and deposits to assets (DTA). This study seeks to assess the linkages among them (causality, magnitude and duration) that may shed some light on the micro-financial vulnerabilities that are associated with the macroeconomic environment and the monetary authority policy. To do so, this study considers two models: a panel vector autoregressif-X model for the tri-variate vector (Z-score, DTA, CAP) estimated by a system generalized method of moments after a forward mean-differencing and a dynamic seemingly unrelated regression model for the bi-variate vector (Z-score, DTA) estimated by 3LS.

Results say that there is a uni-directional contemporaneous negative relationship from stability to insolvency. Stability evolution can be attributed to both macroeconomic conditions and banks’ specific factors, whereas insolvency is attributed only to banks’ specific factors. Stability was found to increase when growth rate and FDI rise, whereas instability increases when interest rate rises, exchange rate depreciates and if inflation is high. Stability increases also when CAP increases. However, compared to conventional banks (CBs), Islamic banks (IBs) are found to be more solvent than CBs, and more stable post 2011 Tunisian revolution.

As fluctuation in inflation and exchange rate could lead to high interest rates and hence decreases the stability of the financial sectors, Tunisian monetary authority is advised to practice low interest rate policy.

This paper attends not only to compare the response of stability and insolvency to the effect of exogenous variables (macroeconomic and financial factors) in Tunisian banks but also to detect short run and long run feedback effects between dependent variables as well as to investigate whether IBs and CBs present evident heterogeneity of stability and insolvency evolution in relation to 2011 Tunisian revolution.

This paper aims to address a specific question over the compatibility of International Financial Reporting Standards with Islamic finance regarding the use of interest rate as discounting rate in impairment testing and valuation techniques.

Inductive methodology and qualitative-narrative methods are used to explore the available texts and literature.

There are two main findings: first, the use of reference rate obtained in non-Islamic financial system is inappropriate from the Islamic perspective. Interest-based valuation techniques have not been adopted by the Accounting and Auditing Organization for Islamic Financial Institutions in its adaptation of conventional accounting practices, and the majority of Islamic scholars argue against Interest rate benchmarking. Second, the authors suggest nominal gross domestic product (NGDP) growth rate as an alternative benchmark because Islamic finance, in its ideal sense, is based on and closely linked to the real sector. Moreover, recent studies show that there are no statistical differences between NGDP growth rate and nominal interest rate for most of the countries studied.

This paper highlights the accounting implications of the prohibition of interest for valuation techniques and raises the need of acceptable alternative pricing benchmark.

This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks.

The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011.

Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries.

The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

This paper aims to examine the role of life satisfaction in consumers’ reaction to nostalgic music in an advertisement in terms of attitude toward the brand and purchase intention. It suggests that life satisfaction forms the lens through which individuals interpret and reconstruct past emotional experiences evoked by nostalgia. It further investigates the role of product category involvement in the interplay between life satisfaction and nostalgic music.

Two experiments were conducted. The first study featured a 2 (nostalgic vs non-nostalgic music) × 2 (high vs low involvement) between-subjects design and tested the research hypotheses with 208 consumers. The second study featured two involvement conditions (high vs low) and explored the underlying process behind the hypotheses. Linear regression was used to analyze the data in both studies.

For the low involvement product category, nostalgic music was more effective than non-nostalgic music for consumers with high life satisfaction, whereas non-nostalgic music was more effective for consumers with low life satisfaction levels. For the high involvement product category, life satisfaction did not moderate consumers’ reaction to nostalgic music.

This research suggests that past experiences evoked through nostalgic music are not static but are subject to bias and interpretation depending on an individual’s current mindset. Hence, the eventual effect of nostalgia is determined by how past events are reconstrued based on the individual’s current state.

This paper warns against the blind use of nostalgic appeals in advertising, points to the need to consider the audience’s state of mind, and suggests an opportunity to leverage life satisfaction influencers in designing effective advertising campaigns.

The findings have strong implications for public policymakers. The results are crucial as policymakers often use public service announcement (PSA) to change the attitude of the public toward some phenomena. Knowing the current state of life satisfaction in society, they can increase the efficiency of public service announcements by including a nostalgic song in them.

To the best of the authors’ knowledge, this research is the first one in the marketing literature that looks at the efficiency of nostalgic songs in advertisements. The authors tested the conceptual framework by using two studies and offered novel implications to both marketers and scholars.

The rapid progress of information and communication technologies enables business creators to access a wide variety of tools. These tools facilitate electronic exchanges and interactions with customers and companies. The purpose of this study is to test and compare the effectiveness of two virtual reality technologies, the avatar and anthropomorphic virtual agents, on consumers’ psychological states and perceived realism.

An experimental survey was conducted to measure the potential superiority of the anthropomorphic virtual agent over the avatar and to identify the determining characteristics of the anthropomorphic virtual agent’s effectiveness. An experimental website was designed for the purpose of the study. A total of 1,262 internet users participated in the experiment.

Results confirm the superiority of the anthropomorphic virtual agent over the avatar in affecting consumers’ flow state, telepresence experience and perceived realism. These findings can be explained by the humanized characteristics of this type of agent (i.e. verbal and nonverbal language).

The originality of this research lies in the study of different forms of social interactivity. This latter has been little studied and essentially treated with a dichotomous perspective (presence/absence of a virtual agent). New trends in digital marketing challenge entrepreneurs to be proactive and to anticipate customers’ behavior on their online stores. That is why, virtual reality technologies, namely, anthropomorphic agents, can be considered as a relevant tool to engage in efficient inbound marketing strategies. Today, the development of intelligent technologies encourages entrepreneurs operating online to design more interactive, realistic and humanized virtual merchant environments that are more adapted to the realities of the new consumption trends and environment.