Reaching out: Access to and use of banking services across countries

This paper is a first attempt at measuring financial sector outreach and investigating its determinants. First, we present new indicators of banking sector outreach across 99 countries, constructed from aggregate data provided by bank regulators. Second, we show that our indicators closely predict harder-to-collect micro-level statistics of household and firm use of banking services, and are associated with measures of firm financing obstacles in the expected way. Finally, we explore the association between our outreach indicators and standard determinants of financial sector depth. We find many similarities but also some differences in the determinants of outreach and depth.     

Effects of institutions on ecological attitudes and behaviour of consumers in a developing Asian country: the case of the Philippines

This study examines the effects of institutions emanating from the social environment on ecologically sustainable consumer behaviour in a developing country context. Drawing on the behavioural perspective model of consumer choice and institutional theory, this study argues that the regulative, normative and cognitive dimensions of the institutional environment play critical roles in shaping the pro‐environmental attitudes called eco‐attitudes of consumers. In turn, eco‐attitudes positively influence the eco‐behaviour of consumers. The structural equation modelling of data from a survey of 1045 consumers from the Philippines shows the significant and positive effects of the regulatory, normative and cognitive dimensions of the institutional environment on the eco‐attitudes of consumers, which in turn have strong positive influence on eco‐behaviour. The findings about the partial mediating role of eco‐attitudes offer a more nuanced explanation on how institutions explain the eco‐behaviour of consumers which is a topic that is less understood especially in a developing country context. The study highlights the theoretical, methodological, policy and future research implications of the findings.     

INSOLVENCY PREDICTION IN THE PRESENCE OF DATA INCONSISTENCIES

In this paper we use data inconsistencies as an indicator of financial distress. Traditional models for insolvency prediction normally ignore inconsistent data, either by removing or replacing it. Instead of removing that information, we propose a new variable to capture it; using it together with traditional accounting variables (based on financial ratios) for the purpose of insolvency prediction. Computational tests use three datasets based on the financial results of 2033 Brazilian Health Maintenance Organizations over 7 years (2001 to 2007). Sixteen classification methods were used to evaluate whether or not the new variable impacted solvency prediction. Tests show a statistically significant improvement in classification accuracy – average results improve 1.3 (p = 0.003) and 1.8 (p = 0.006) percentage points, for 10‐fold and leave‐one‐out cross‐validations respectively. In addition, the analysis of false positives and false negatives shows that the new variable reduces the potentially harmful misclassification of false negatives (i.e. financially distressed companies being classified as financially healthy) and also reduces the estimated overall error rate. Regarding the extensibility of the results, even though this work uses data from Brazilian companies only, the calculation of the financial ratios variables, as well as the inconsistencies, could be extended to most companies worldwide subject to governmental accounting regulations aligned with the International Financial Reporting Standards. Copyright © 2014 John Wiley & Sons, Ltd.     

Achieving Customer Satisfaction through Integrated Products and Services: An Exploratory Study

Complex products such as manufacturing equipment have always needed maintenance and repair services. Increasingly, leading manufacturers are integrating products and services to generate increased revenues and achieve customer satisfaction. Designing integrated products and services requires a different approach to new product development and a clear understanding of how customers perceive the value they obtain from actual usage of products and services—so‐called value‐in‐use. However, there is a lack of research on integrated products and services and how they impact customer satisfaction. An exploratory study was undertaken to understand customers' views on integrated products and services and the value‐in‐use derived from such offerings. As value‐in‐use and its impacts are complicated concepts, a technique from psychology—Repertory Grid Technique—was used to gather data in 33 interviews. The interviews allowed a deep understanding of customer views on integrated products and services to be obtained, and a systematic analysis identified the key attributes of value‐in‐use. In order to probe further, the data were then analyzed using Honey's procedure, which identified the impact of the attributes of value‐in‐use on customer satisfaction. Two key attributes—relational dynamic and access—were found to have the most influence on customer satisfaction. This paper contributes to the innovation field by identifying customer needs for integrated products and services and how these impact customer satisfaction. These are key points and need to be fully considered by managers during new product and service development. Similarly, the paper identifies a number of important areas for further research.     

The impact of the financial crisis on the long-range memory of European corporate bond and stock markets

This paper investigates the presence of long memory in corporate bond and stock indices of six European Union countries from July 1998 to February 2015. We compute the Hurst exponent by means of the DFA method and using a sliding window in order to measure long range dependence. We detect that Hurst exponents behave differently in the stock and bond markets, being smoother in the stock indices than in the bond indices. We verify that the level of informational efficiency is time-varying. Moreover we find an asymmetric impact of the 2008 financial crisis in the fixed income and the stock markets, affecting the former but not the latter. Similar results are obtained using the R/S method.     

Incentive Regulation and Telecommunications Service Quality

We examine the impact of incentive regulation—price regulation and earnings sharing regulation—on retail service quality in the U.S. telecommunications industry between 1991 and 2002. We find that incentive regulation is associated with significantly higher service quality on several dimensions (e.g., more rapid installation of new telephone service, fewer trouble reports, and increased customer satisfaction) but significantly lower quality on some dimensions (fewer installation commitments met and longer delays in resolving reported service problems)JEL Classification: L51, L96, L15We thank Michael Crew and two anonymous referees for helpful comments and suggestions. We are also grateful to Vanessa Cruz and Mircea Marcu for excellent research assistance.     

IMPORTANCE OF DEMOGRAPHICS FOR HOUSING IN THE OECD ECONOMIES

The aim of this contribution is to study the role of demographics in the explanation of house prices in the last few decades. Special attention is paid to the role, which has been played by three groups of population that have different necessities in terms of the amount of housing services that they wish to consume: (a) population aged between 25 and 44 years old; (b) population aged between 45 and 64 years old; and (c) retirees. Following our discussion of recent trends in demographics and relevant stylized facts, the construction of a theoretical framework ensues; finally we provide empirical evidence in the case of 17 OECD economies over the period 1970–2013, discuss it in relation to our theoretical framework before we summarize and conclude.     

Collaborative Tourism Planning: A Case Study of Cusco,Peru

This research examines issues concerning the collaborative approach towards tourism planning, with a focus on Cusco, Peru. The research begins with a review of key themes related to collaborative tourism planning, and then explores four issues in relation to collaborative tourism planning in Cusco. These are the vision of tourism development among tourism stakeholders; collaboration and coordination between the multiple parties involved in tourism; input from the tourism industry and other interest groups in tourism planning; and constraints to and facilitators of collaboration and coordination. The research indicates that despite an awareness of the benefits of collaboration in tourism planning generally, collaboration is not yet a major part of the tourism development process in Cusco. The main reasons for the lack of collaboration are outlined using the views of the main stakeholders, as well as suggestions for ways in which future collaboration can be developed.     

Do Depositors Punish Banks for Bad Behavior? Market Discipline,Deposit Insurance,and Banking Crises

This paper empirically investigates two issues largely unexplored by the literature on market discipline. We evaluate the interaction between market discipline and deposit insurance and the impact of banking crises on market discipline. We focus on the experiences of Argentina, Chile, and Mexico during the 1980s and 1990s. We find that depositors discipline banks by withdrawing deposits and by requiring higher interest rates. Deposit insurance does not appear to diminish the extent of market discipline. Aggregate shocks affect deposits and interest rates during crises, regardless of bank fundamentals, and investors' responsiveness to bank risk taking increases in the aftermath of crises.