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1 – 10 of 399Using a GED-GARCH model to estimate monthly data from January 1990 to February 2022, we test whether gold acts as a hedge or safe haven asset in 10 countries. With a downturn of…
Abstract
Using a GED-GARCH model to estimate monthly data from January 1990 to February 2022, we test whether gold acts as a hedge or safe haven asset in 10 countries. With a downturn of the stock market, gold can be viewed as a hedge and safe haven asset in the G7 countries. In the case of inflation, gold acts as a hedge and safe haven asset in the United States, United Kingdom, Canada, China, and Indonesia. For currency depreciation, oil price shock, economic policy uncertainty, and US volatility spillover, evidence finds that gold acts as a hedge and safe haven for all countries.
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Brian L. Bourdeau, J. Joseph Cronin, Daniel T. Padgett, Clay M. Voorhees and Kimberley White
All hypothesized relationships were significant. Specifically, H1 was supported as disconfirmation and surprising consumption were significantly correlated. Moreover, arousal (H2…
Abstract
Purpose
All hypothesized relationships were significant. Specifically, H1 was supported as disconfirmation and surprising consumption were significantly correlated. Moreover, arousal (H2) and outrage (H4a) were functions of surprising consumption and negative affect (H3) and outrage (H4b) were functions of arousal. H4c was also supported as negative affect had a significant direct effect on consumer outrage. In addition, disconfirmation had negative direct effects on both negative affect (H5) and dissatisfaction (H6a) and dissatisfaction was a function of negative affect. Finally, both outrage (H7a) and dissatisfaction (H7b) had significant negative effects on behavioral intentions.
Design/methodology/approach
Respondents were recruited to participate in the data collection in a “college town” in the Southeastern United States. Respondents were provided a paper and pencil data collection instrument that include complete survey instructions and the balance of the research design. To adequately test all hypotheses, the researchers developed a unique scenario that described an extreme service failure that takes place during a hotel check-in. Each respondent was asked to read the scenario and then reflect upon it as they responded to items that assessed their feelings toward the hotel check-in experience.
Findings
The results provide additional evidence in support of the existence of the satisfaction-dissatisfaction continuum, as well as specifically identifying the affective nature of levels of satisfaction that fall surprisingly well-below the zone of tolerance. The authors feel that the present study is a necessary step to provide a more comprehensive view of the satisfaction-dissatisfaction continuum. Likewise, the authors posit initial evidence of the antecedents and consequences of consumer outrage. This research supports the prior assumptions of Westbrook (1987) about the vast detrimental effects of negative affective responses to service or product failures.
Research limitations/implications
Future research needs to discover just how extremely deficient service has to be to elicit outrage. Is outrage a personal phenomenon with every consumer experiencing it to different degrees? As such, is outrage triggered at different points on the satisfaction-dissatisfaction continuum? The zone of tolerance seems to suggest this, but it would be interesting to discover if at some collective level of dissatisfaction consumers generally begin to show signs of outrage. Likewise, it would be interesting to understand how the level and pattern of outrage results in customers exiting the relationship but also results in loyal customers becoming enemies (e.g. Gregiore et al., 2009; Gregiore and Fisher, 2008).
Originality/value
The motivation for the current study is both pragmatic and theoretical. As alluded to above, it is evident that the level of service customers’ emotional responses to their service experiences are increasing in frequency and intensity. These negative emotions affect the efficacy of service workers and impede the financial performance of service providers. The popular mantra of “anti-woke” consumers, “Go Woke, Go Broke,” is indicative of the importance of negative emotion. Sometimes referred to as “brand activism” (Moorman, 2020; Sarkar and Kotlet, 2019), recent public stances on social and political issues have led to a boycott of Gillette razors, the burning of Nike shoes, and the canceling of Costco Memberships in what has been called “virtue signaling” (Vredenburg et al., 2020). While none of these actions are desirable, the importance of investigating the impact of strong negative emotions (i.e. outrage) is further demonstrated in reports that 65% of consumers expect companies to authentically support such issues (Barton et al., 2018; Edelman, 2018; Larcker and Tayan, 2018; Moorman, 2020).
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Amira Said and Chokri Ouerfelli
This paper aims to examine the dynamic conditional correlation (DCC) and hedging ratios between Dow Jones markets and oil, gold and bitcoin. Using daily data, including the…
Abstract
Purpose
This paper aims to examine the dynamic conditional correlation (DCC) and hedging ratios between Dow Jones markets and oil, gold and bitcoin. Using daily data, including the COVID-19 pandemic and the Russia–Ukraine war. We employ the DCC-generalized autoregressive conditional heteroskedasticity (GARCH) and asymmetric DCC (ADCC)-GARCH models.
Design/methodology/approach
DCC-GARCH and ADCC-GARCH models.
Findings
The most of DCCs among market pairs are positive during COVID-19 period, implying the existence of volatility spillovers (Contagion-effects). This implies the lack of additional economic gains of diversification. So, COVID-19 represents a systematic risk that resists diversification. However, during the Russia–Ukraine war the DCCs are negative for most pairs that include Oil and Gold, implying investors may benefit from portfolio-diversification. Our hedging analysis carries significant implications for investors seeking higher returns while hedging their Dow Jones portfolios: keeping their portfolios unhedged is better than hedging them. This is because Islamic stocks have the ability to mitigate risks.
Originality/value
Our paper may make a valuable contribution to the existing literature by examining the hedging of financial assets, including both conventional and Islamic assets, during periods of stability and crisis, such as the COVID-19 pandemic and the Russia–Ukraine war.
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This is having highly negative economic and social consequences, with problematic implications for long-term growth and stability. The country’s already extreme inequality is…
Martin David Owens and Elizabeth Johnson
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international…
Abstract
Purpose
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.
Design/methodology/approach
This is a conceptual paper.
Findings
Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.
Originality/value
The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.
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The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.
Abstract
Purpose
The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.
Design/methodology/approach
The study is designed as an extreme single case study that takes its point of departure in a company’s bankruptcy in the Swedish automotive industry.
Findings
This study illustrates how a new business relationship can start from a resource combination previously controlled by one actor (i.e. a single company) in a turbulent business network, thereby bringing nuances to the common understanding that new relationships start in stable business networks where resource combinations are developed between actors in established business relationships.
Originality/value
Previous studies have stated that the development of a mutual orientation between actors leads to the formation of a business relationship. The business relationship then leads to resource adaptations between the two companies. The developed model, however, illustrates that this pattern can be reversed in situations of turbulence. Hence, previously adapted resources might lead to the formations of a business relationship. Based on this observation, the authors argue that there are reasons to question if previous models of business relationship initiation and development in business networks are adequately equipped for analysis in turbulent business networks.
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