Securitization and financial solvency: empirical evidence from Portugal

This paper analyses the effect of securitization issues on the solvency of Portuguese financial institutions. For this purpose, we use an unbalanced panel model estimated using GMM methods and find that securitization has a slightly positive impact on the soundness of the issuing entity. We study 35 financial entities and 60 traditional securitizations issued by 9 originators between 2001 and 2013. The analysis reveals that the financial entities’ soundness improved slightly, showing that securitization enhanced the quality of the originators’ portfolios and increased the regulatory capital requirements. We also found that efficiency and profitability improve the risk-adjusted ROAA and that efficiency increases regulatory capital requirements. The robustness analysis confirms the positive effect of securitization on solvency, where both credit quality and liquidity are shown to be significant variables.     

‘It’s an illusion,but it looks real!’ Consumer affective,cognitive and behavioural responses to augmented reality applications

ABSTRACT

The paper investigates two augmented reality (AR) applications and corresponding consumer responses to their media characteristics. Firstly, it discusses the role of interactivity with AR technology. Secondly, it introduces augmentation as a salient media characteristic of AR applications and tests measurement items of perceived augmentation. Two experimental studies replicate the research design of Van Noort et al. [Van Noort, G., Voorveld, H. A. M., & van Reijmersdal, E. A. (2012). Interactivity in brand web sites: cognitive, affective, and behavioral responses explained by consumers’ online flow experience. Journal of Interactive Marketing, 26, 223–234], applying it in the context of AR. The results show that perceived augmentation represents a fitting concept for understanding consumer responses to AR features and, furthermore, that flow mediates effects of perceived augmentation on consumers’ affective responses and behavioural intentions. AR features on the other hand do not increase perception of interactivity. Finally, implications of the study and further research directions are discussed.     

Health status and labor force participation: evidence for urban low and middle income individuals in Colombia

This paper analyzes the relationship between individual health status and labor force participation using the first wave of the Colombian Longitudinal Survey. The empirical modeling strategy accounts for the presence of potential endogeneity between these two variables. The results show that there is a positive relationship between health and labor force participation in both directions, indicating that better health is likely to lead to a higher probability of participation in the labor market, but also that individuals who participate in the labor market are more likely to report better health. Interesting differences are uncovered when comparing the results by gender and/or age groups. For instance, for younger females, health status and higher education positively affect the probability of labor participation, whereas having children under the age of 5 and being married reduce their probability of participation. Our findings also highlight the importance of public policy to guarantee good health conditions of the population which could also have a positive impact on labor productivity and consequently on long-run economic growth.     

The Scenario of Lean Product Development in Brazilian Auto-industry

The purpose of this paper is to evaluate the impact of lean product development （LPD） in the Brazilian automotive sector. A mailed-questionnaire survey was used to examine 23 questions about LPD principles and practices. The target population for the study was Brazil＇s largest product development and design companies. The study identified that although the automobile sector is seen as a reference in the adoption of lean practices, there is still potential for improvement by establishing partnership relations with suppliers, and with those on the other points of the chain by identifying what provides value to clients. Set-based concurrent engineering is also a practice that needs to be better developed, as well as the value stream mapping tool to identify waste and activities that add value to the product development process. There has been no previous study of this nature in Brazil that characterizes the sector and highlights its importance in relation to the global scene, providing incentives to international investors. The value of the work is in the results that allow diagnosing the lean development practices that are most used in the automotive sector. Moreover, the survey questions can be applied in other economic sectors and at companies of other sizes. The study contributed to providing a systematic view of the product development process from the perspective of people, processes, and technology, and assists companies and academics manage change.     

Market and learning orientation in times of turbulence: relevance questioned? An analysis using a multi-case study

This paper aims to pinpoint and to discuss the factors that determine (i) why companies which have previously not been market oriented become so, and (ii) why already market-oriented companies increase their level of market orientation. This paper also analyses drivers of market orientation adoption and dynamics of processes as well as potential links between market orientation, strategy and learning orientation. Empirical research is based on a multi-case study of the Spanish construction and real state industry, providing a longitudinal approach. Data suggest that competitive environments trigger heightened interest in the market orientation and learning orientation constructs. In the analysed industry market orientation seems to be more prevalent in the “sunset” rather than before during the “sunrise” of the industry, which is opposite to the early work of Baker et al. (In: Sauders J (ed) The Marketing Initiative: ESRC Studies into British Marketing. Preentice-Hall, Hemel Hempstead, 1994). The link between market orientation and strategy is unclear, but proactive firms are better prepared for periods of crisis. Thinking on practical implications, this research highlights the relevance of market orientation and learning orientation in times of turbulence and suggests that proactive firms are better prepared for times of turbulence. The paper also includes discussion and implications for both literature and practice. Recommendations for best practices are also provided.     

Who Pays More for a Cultural Festival,Tourists or Locals? A Certainty Analysis of a Contingent Valuation Application

Cultural festivals are one of the most common representations of diversification strategies in tourist demand in cities boasting abundant historical heritage. The goal of this work is to estimate the economic value allocated by tourists and local residents to a classical music festival in the emblematic city of Santiago de Compostela (Spain). The contingent valuation method is used to ascertain whether there are any significant differences between the value declared and to study the sensitivity of the findings in a range of socio‐economic variables. Finally, the problems of hypothetical bias are explored, as are the possible implications for management of pricing policies. Copyright © 2011 John Wiley & Sons, Ltd.     

The relationship between business characteristics and ICT deployment in the rural tourism sector. The case of Spain

The deployment of information and communication technologies (ICT) is crucial for the competitiveness of rural tourism businesses. It is therefore important to know the relation between a firm's characteristics and ICT deployment. This study makes two hierarchical segmentations to predict the behaviour of these firms when deploying the Web and e‐mail. This work determines which characteristics are related to ICT deployment. Activity and category are the two characteristics that most effectively predict a firm's behaviour, whereas location and size are less effective. These results have implications for entrepreneurial behaviour and for public agents working in rural tourism. Copyright © 2009 John Wiley & Sons, Ltd.