Market efficiency, the Mexican peso crisis, and the US bank stock returns: An application of the event parameter method

This paper examines the impact of the 1994 Mexican peso crisis on US bank returns using an event parameter approach. The event parameter approach explicitly predicts the stochastic return generating process on the occurrence or nonoccurrence of specific events. The event parameter method assumes that only the intercept term may vary between the estimation and analysis periods. Specifically, this study will examine two pairs of hypotheses, new information vs. information leakage and rational pricing vs. investor contagion, in the context of the 1994 Mexican peso and banking crisis. The empirical results support the new information hypothesis, which states that US stock prices reacted quickly to events related to the Mexican peso crisis. This research has also found evidence for bank contagion, although these did not spill over to other banks. The US government and international agencies acted promptly to contain the effect of the Mexican peso and banking crisis spreading to the US and to other Latin American countries.     

Income smoothing and foreign asset holdings

In this paper we construct a new methodology to measure the international income smoothing and we present stronger connection between foreign asset holding and international income smoothing for OECD countries.     

Economic lot and delivery scheduling problem for multi-stage supply chains

The economic lot and delivery scheduling problem for a multi-stage supply chain comprising multiple items is studied in this paper. It is required to develop a synchronized replenishment strategy, and specify the sequence of production and the replenishment cycle time that achieves synchronization through the supply chain at minimum cost. The problem is presented in a novel formulation based on the quadratic assignment representation. The common cycle time and the integer multipliers policies are adopted to accomplish the desired synchronization. The two policies are represented by nonlinear models handled through a hybrid algorithm. The algorithm combines linearization, outer approximation and Benders decomposition techniques. Results of the two policies demonstrate that a cost reduction up to16.3% can be attained by employing the integer multipliers policy instead of the common cycle time. Computational experiments show the efficiency of the new formulation and solution algorithm by reaching the optimal solution for large problem instances in short time.     

Growth under exchange rate volatility: Does access to foreign or domestic equity markets matter?

Employing a firm-level dataset, this paper explores the effects of exchange rate volatility on the growth performances of domestic versus foreign, and publicly traded versus non-traded private manufacturing firms in a major developing country, Turkey. The empirical results using dynamic panel data estimation techniques and comprehensive robustness tests suggest that exchange rate volatility has a significant growth reducing effect on manufacturing firms. However, having access to foreign, and to a lesser degree, domestic equity markets is found to reduce these negative effects at significant levels. These findings continue to hold after controlling for firm heterogeneity due to differences in export orientation, external indebtedness, profitability, productivity, size, industrial characteristics, and time-variant institutional changes.     

An empirical investigation of U.S. bank risk and the Mexican peso crisis

This paper examines two pairs of hypotheses about the effect of the Mexican Peso crisis on U.S. bank stock returns. We use a three-index market model as our empirical methodology because bank stocks are influenced more by both interest rate risk and foreign exchange risk than other non-banking stocks. The results show that the market reacted to each event promptly, supporting semi-strong market efficiency. To find out whether these effects created a domino effect in the U.S. banking system, a set of cross-sectional regressions were run. In general, the empirical results support the investor-contagion hypothesis, which indicates that the market penalized or rewarded banks without regard to their ecposure to the market for Mexican loans.     

Servant leadership,organisational trust,and bank employee outcomes

Using servant leadership and social exchange theories as the theoretical frameworks, our study proposes and tests a research model that investigates trust in organisation (TIO) as a mediator of the impact of servant leadership on three critical outcomes. These outcomes are intention to be late for work (ILW), creative performance, and service recovery performance. Data obtained from frontline bank employees in three waves at one-week apart and their managers in Saint Petersburg in Russia were used to test the aforementioned relationships. The results demonstrate that TIO is an immediate outcome of servant leadership. TIO gives rise to lower ILW and higher creative and service recovery performances. The aforesaid findings reveal that servant leadership mitigates ILW and boosts both creative and service recovery performances only through TIO. Implications for theory and practice are discussed in our paper.     

The effects of organizational training on organizational commitment

This empirical study investigated the impact of organizational training on employee commitment focusing on employees' emotional and affective responses towards their organization. Organizational training is conceptualized within a multidimensional framework consisting of motivation for training, access to training, benefits from training and support for training. The hypothesis of this study has been built on a resource‐based view, social exchange theory and psychological contract theory. Field research was conducted through surveys with 298 participants of four‐ and five‐star hotels operating in Izmir, Turkey. Confirmatory factor analyses were used to analyse the quality of the training scales and multiple regression analyses were conducted to test the hypotheses of the study. The results revealed that all dimensions of training positively affected employee commitment. Implications have been presented for both researchers and human resource practitioners as to how to utilize organizational training factors to increase employee commitment.     

The impacts of core self-evaluations on customer-related social stressors and emotional exhaustion

Based on data collected from frontline bank employees in Northern Cyprus as the study setting, the authors developed and tested a model, which investigated the effects of core self-evaluations on customer-related social stressors and emotional exhaustion. The researchers' model also tested the impacts of these customer-related social stressors on emotional exhaustion. The results indicated that employees with positive core self-evaluations experienced low levels of disproportionate customer expectations, customer verbal aggression, and ambiguous customer expectations. Such employees were also confronted with less-disliked customers. In this study, it was found that employees who were susceptible to ambiguous customer expectations were emotionally exhausted. In contrast, the findings did not lend any empirical support to the effects of disproportionate customer expectations, customer verbal aggression, and disliked customers on emotional exhaustion.     

The Effects of Involvement and Social Support on Frontline Employee Outcomes: Evidence From the Albanian Hotel Industry

Using data from the Albanian hotel industry, this study developed and tested a model that examined the relationships of psychological involvement and social support with frontline employees' outcomes. The results revealed that family involvement and family support increased family satisfaction, while job involvement and work support amplified job satisfaction. Contrary to our predictions, work support did not significantly affect family satisfaction and family support did not demonstrate any significant relationship with job satisfaction. The results lent empirical support to the significant negative effects of both work and family support on turnover intentions. The results also showed that lower job satisfaction led to higher turnover intentions. In contrast, family satisfaction was found to exacerbate employees' turnover intentions. Implications of the results and future research directions are presented in the study.     

The Egyptian Government's Role in Re-Establishing the Hotel Industry in Cairo (1953–1957)

This article analyzes the role of the Egyptian Government in reviving and improving the Egyptian hotel industry in the revolutionary period. It provides a case study of a country with large political problems, but at the same time pursuing a dream—a dream that was expensive and demanding. Tourism was understood to be an important tool in promoting political stability and providing some legitimacy to a political system opposed by the major powers in the world. This study will examine the Egyptian Government's role in re-establishing the hotel industry as an important economic sector in Egypt during the period from 1953 to 1957, which was considered a critical political period. The year 1953 marked the beginning of the official plans to increase the hotel facilities in Cairo with the establishment of the Tourism Department; and 1957 marked the end of Suez Crisis of 1956. The study utilized unpublished U.S. Department of State documents that show that the hotel industry was used as tool to put pressure on the Egyptian President Gamal Abdel Nasser (1952–1970) to accept U.S. foreign policy in the Middle East and was one of the main issues negotiated between the two countries after the Suez Crisis.