The Comprehensive Assessment: What lessons can be learned?

Analysing the database made available by the European Central Bank and by the European Banking Authority, we evaluate the Comprehensive Assessment (CA) (Asset Quality Review and Stress Test (ST)) of banks carried out in 2014. In a nutshell, the main results are: (i) risk-adjusted capital ratios are negatively related to the Asset Quality Review shortfall, but not to the ST shortfall, whereas the leverage ratio plays a significant role in both cases; (ii) the CA predominantly concentrated on traditional credit activity rather than on banks’ financial assets and (iii) the CA seems to be characterized by double standards. The Asset Quality Review was severe with banks operating in non-core countries, while medium-sized banks were either riskier or were treated severely in both exercises. The analysis leads to a puzzle: comparatively, the assessment per se led to significant adjustments for solid banks and large shortfalls for weak banks. The puzzle can be resolved by referring to the legacy of the country’s former supervisory activity and to the low level of capitalization of weak banks mostly in peripheral countries.

Abbreviations: ADJ_AQR: adjustment due to the AQR; ADJ_ST: adjustment due to the ST adverse scenario; AQR: asset quality review; bps: basis points (1?bp is equal to 0.01%); bn: billion; CA: comprehensive assessment; CET1: common equity tier 1; CR: coverage ratio; CRD/CRR: capital requirements directive/capital requirements regulation; CVA: credit valuation adjustment; EBA: European Banking Authority; ECB: European Central Bank; LM test: Lagrange-multiplier test; NPE: Non-performing exposure; RWA: risk-weighted asset; SF_AQR: shortfall due to the AQR; SF_ST: shortfall due to the ST adverse scenario; SREP: supervisory review and evaluation process; SSM: single supervisory mechanism; ST: stress test; tr: trillion (one thousand of billions)     

An inverse demand analysis with introduction of quality effects: an application to Spanish consumption of fruit and vegetables

This article analyzes consumer preference for fruit and vegetables when, by using time series with socioeconomic characteristics of households, there can be seemingly unobserved quality effects, which are increased by aggregation. The changes in Spanish demand for fresh and processed fruit and vegetables over the period 1987–2000 are discussed. Following previous tests and analyses, quantities are taken as predetermined and prices as matching the offer conditions. Thus, quality effects (based on the nutritional and/or health value of the product) are estimated from the error terms associated with the functions of the unit values. Quality variables are introduced as taste shifters in the inverse demand system (Laitinen–Theil model). The results show the positive effects of quality differences on the normalized price for the group of products through own‐quality flexibilities, and the negative effects between fresh and processed products through cross‐quality flexibilities.     

Productivity and Environmental Performance in Marketing Cooperatives: An Analysis of the Spanish Horticultural Sector

The paper analyses the productivity of marketing cooperatives incorporating environmental inputs/outputs. In the European agriculture, expectations for attaining sustainable and competitive agriculture rely to a great extent on the cooperative sector's ability to adapt to new market conditions. These challenges have led marketing cooperatives in the fruit and vegetables sector to consider improvements in productivity and sound environmental performance. The study analyses the total factor productivity related to environmental variables in this sector using a parametric‐stochastic approach and panel data on Spanish cooperatives over the period 1994–2002. Additionally, the determinants of environmental productivity are examined econometrically. The estimates obtained show an increase in efficiency for the period under study and a relationship between productivity changes and management factors, such as labour quality, capital intensity and environmental spillover.     

Technological and Organizational Tools for Knowledge Management: In Search of Configurations

Knowledge Management (KM) is becoming a growing concern in management research and practice because of its role in determining firm innovation capability and in enhancing working life quality of knowledge workers. This requires, even for Small and Medium Enterprises (SMEs) the creation of a sustainable work organization in terms of configuration of organizational and Information and Communication Technology (ICT) tools. With a particular emphasis in the area of Product Innovation (PI) and on the basis of a survey on 127 Italian SMEs, this paper aims at analysing the emergent technological and organizational approaches to managing knowledge in the PI process. Three different KM Configurations emerge: the `technical', the `relational' and the `advanced' approach.     

Risk Management in Small- and Medium-Sized Businesses and How Accountants Contribute*

We investigate how owners of small- and medium-sized enterprises (SMEs) perceive, make sense of, and practice risk management. Drawing on Schatzki's practice theory, we theorize on how and why risk management happens in SMEs. Thus, we fill a gap in the extant literature, which focuses almost exclusively on risk management within large organizations. We interview entrepreneurs and conduct site observations to gain insight into their risk management activities, the drivers that lead to the adoption of said activities, their attitudes toward risk management, and how their accountants may shape and contribute to risk management in SMEs. We find that rather than a specific set of formal processes, entrepreneurs view risk management as a mindset that emphasizes the preservation of key assets, creation of competitive advantages, and development of local talent and expertise. We observe practices that are mainly informal yet planned, deliberate, and fully integrated within the fabric of organizations that align with ideal forms of risk management. We also find that full-time, in-house accountants do help entrepreneurs with risk management, while external accountants, whose main activities relate to financial statement preparation and tax filings, do not systematically help entrepreneurs manage risk. We contribute to both the theory and practice of risk management by sharing empirical insights into how SME owners perceive, make sense of, and manage risk.     

Nonlinearity in Stock Exchange Markets: The Case of Bist 100 Indices

In this paper,using data for the Bist 100 index,we investigate the presence of nonlinearities by employing several nonlinearity tests.The Brock,Dechert,and Sche...     

Twenty five years of the Journal of Travel & Tourism Marketing: a bibliometric ranking

ABSTRACT

The Journal of Travel & Tourism Marketing (JTTM) is a leading international journal in “Marketing” and “Tourism, Leisure and Hospitality Management.” JTTM published its first issue in 1992. In 2017, the journal has celebrated its twenty-fifth anniversary. For that reason, this study analyzes all the publications in the journal since its creation by using a bibliometric approach. The objective is to provide a complete overview of the main factors that affect the journal. This analysis includes key issues such as the distribution of annual publications and citations, the most cited papers, the h-index, citations per paper, the keywords that are mostly used, the influence on the publishing industry and authors, universities, and the countries that have the most publications. The paper uses the Scopus database to analyze the bibliometric data. Additionally, the paper also uses the visualization of similarities (VOS) viewer software to map graphically the bibliographic material. The graphical analysis uses bibliographic coupling, co-citation, citation, and co-occurrence of keywords. These results indicate that JTTM is one of the leading journals in the areas where the journal is indexed, with publications from a wide range of authors, institutions, and countries around the world.     

Which factors affect the sustainability of pension schemes?

This article seeks to determine the most influential factors on the sustainability of a pension system. To this end, an empirical analysis was conducted on a sample of 13 countries, with different characteristics, according to three criteria: the size of the pension system's assets, the old-age dependency ratio and the success of the system according to the Mercer CFA Institute Global Pension Index. The results of this preliminary study show that countries with successful pension systems share a high rate of formal employment, good political stability, high life expectancy at birth, and a good rate of coverage by the pension system.     

Construction of voting situations concordant with ranking patterns

Decisions in Economics and Finance - Referring to a standard context of voting theory, and to the classic notion of voting situation, here we show that it is possible to observe any arbitrary set...     

Dissimilarity effects on house prices: what is the value of similar neighbours?

Journal of Economic Interaction and Coordination - Residential choice does not only depend on properties of the dwelling, neighbourhood amenities and affordability, but is also affected by the...