• Convergence in condominium prices of major U.S. metropolitan areas

      Apergis, Nicholas; Payne, James; University of Piraeus; Benedictine University (Emerald, 2019-11-04)
      The purpose of the study is to examine the long-run convergence properties of condominium prices based on the ripple effect for five major U.S. metropolitan areas (Boston, Chicago, Los Angeles, New York, and San Francisco). Specifically, we test for both overall convergence in condominium prices and the possibility of distinct convergence clubs to ascertain the interdependence of geographically dispersed metropolitan condominium markets. Our analysis employs two approaches to identify the convergence properties of condominium prices: the Lee and Strazicich (2003) unit root test with endogenous structural breaks and the Phillips and Sul (2007; 2009) time-varying nonlinear club convergence tests. The Lee and Strazicich (2003) unit root tests identify two structural breaks in 2006 and 2008 with rejection of the null hypothesis of a unit root and long-run convergence in condominium prices in the cases of Boston and New York. The Phillips and Sul 92007; 2009) club convergence test reveals the absence of overall convergence in condominium prices across all metropolitan areas, but the emergence of two distinct convergence clubs with clear geographical segmentation: on the east coast with Boston and New York and the west coast with Los Angeles and San Francisco while Chicago exhibits a non-converging path. The results highlight the distinct geographical segmentation of metropolitan condominium markets, which provides useful information to local policymakers, financial institutions, real estate developers, and real estate portfolio managers. The limitations of the research is the identification of the underlying sources for the convergence clubs identified due to the availability of monthly data for a number of potential variables. The absence of overall convergence in condominium prices, but the emergence of distinct convergence clubs that reflects the geographical segmentation of metropolitan condominium markets raises the potential for portfolio diversification. Unlike previous studies that have focused on single-family housing, this is the first study to examine the convergence of metropolitan area condominium prices.
    • Sensitivity of economic policy uncertainty to investor sentiment

      Rehman, Mobeen Ur; Apergis, Nicholas; University of Piraeus; University of Derby; Institute of Science and Technology Islamabad, Pakistan (Emerald, 2019-06-24)
      A series of global financial crises in 21st century, steep economic decline and slow recoveries have intensified the concern of regulatory bodies for economic policy certainty. This study explores the effect of investor sentiment on economic policy uncertainty (EPU), spanning the period 1995-2015. The analysis is carried out for Asian, Developed and the European market samples by applying the method of quantile regressions. The findings document the presence of a negative impact of investor sentiment on EPU. Robustness analysis illustrates the validity of the results for the cases of Asian and Developed markets.
    • The relationship between investments in lean practices and operational performance: exploring the moderating effects of operational intellectual capital

      Onofrei, George; Fynes, Brian; Wiengarten, Frank; Humphreys, Paul; Prester, Jazna; University College Dublin (Emerald, 2019-05-03)
      Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there has been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question: can the efficacy of ILP be increased through OIC has not been studied. Accordingly, the purpose of this study is to report the empirical results of potential synergetic effects between operational intellectual capital (OIC), as a knowledge-based resource, and ILP. The empirical data used for this study was drawn from the fifth round of the Global Manufacturing Research Group (GMRG) survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models. Our findings highlight the importance of leveraging a system of complementary knowledge based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view (KBV) of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menor et al. (2007), we argue that OIC represents a strategic knowledge based resource that is valuable, hard to imitate or substitute and when leveraged effectively, generates superior operational and competitive advantage.From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. We argue that firms consider investing in OIC to increase the return from ILP, which in turn will enhance their operational performance and provide competitive advantage. Our findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP. This is the first research paper that extends the application of intellectual capital theory in lean literature, and argues that the operational intellectual capital contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.
    • Contagion across US and EU financial markets: Evidence from the CDS markets

      Apergis, Nicholas; Christou, Christina; Kynigakis, Jason; University of Derby; Open University of Cyprus; University of Kent (Elsevier, 2019-05-02)
      This study investigates whether contagion occurred during the recent global financial crisis across EU and US financial markets. The methodology used to test for contagion is the Forbes and Rigobon cross-correlation test, the Li and Zhu non-parametric test, the Fry et al. coskewness test and the Hsiao cokurtosis and covolatility tests. These tests are applied to a set of bank sector CDS, insurance sector CDS, sovereign bonds, equity and volatility indices. The findings indicate significant evidence of contagion, especially through the channels of higher order moments.
    • Modeling the time varying volatility of housing returns: Further evidence from the U.S. Metropolitan condominium markets

      Apergis, Nicholas; Payne, James; University of Derby; University of Texas, El Paso (Wiley, 2019-04-22)
      This study extends the literature on modeling the volatility of housing returns to the case of condominium returns for five major U.S. metropolitan areas (Boston, Chicago, Los Angeles, New York, and San Francisco). Through the estimation of ARMA models for the respective condominium returns, we find volatility clustering of the residuals. The results from an ARMA-TGARCH-M model reveal the absence of asymmetry in the conditional variance. Dummy variables associated with the housing market collapse unique to each metropolitan area were statistically insignificant in the conditional variance equation, but negative and statistically significant in the mean equation. Condominium markets in Los Angeles and San Francisco exhibit the greatest persistence to volatility shocks.
    • Monetary policy and the gender pay gap: Evidence from UK households

      Apergis, Nicholas; Hayat, Tasawar; Kadasah, Nasser; University of Derby; King Abdulaziz University (Taylor & Francis, 2019-04-16)
      This paper studies how monetary policy decisions affect the gender pay gap across UK households through a survey database. The results signify the impact of monetary policy shocks on the gap; monetary authorities’ decisions carry welfare effects for households through their pay income.
    • Prediction of financial distress for multinational corporations: Panel estimations across countries.

      Apergis, Nicholas; Bhattacharya, Mita; Inekwe, John; University of Piraeus; Monash University; Macquarie University (Taylor & Francis, 2019-03-21)
      This research predicts ex-ante financial distress and analyses the link between financial distress, performance, employment, and research and development (R&D) investment in the case of multinational companies (MNCs). The conditional logit and hazard models are employed to predict financial distress, while a conditional mixed process model is employed to obtain consistent and efficient estimates. Financial distress generates contractions in performance, employment, and R&D investment. Hedging against risk mitigates the effect of financial distress on R&D. Our findings vary across countries, for example, we find MNCs in Canada, Israel and the U.S. benefit from hedging against risk. The findings also indicate that ex-ante financial distress is detrimental to employment for Canada, the U.K., the Netherlands and the U.S. The findings indicate the MNCs play different roles across countries in contributing jobs, investment in R&D during the distress period.
    • The dynamic linkage between renewable energy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade.

      Apergis, Nicholas; Jebli, Mehdi Ben; Youssef, Slim Ben; University of Piraeus; University of Jendouba; University of Manouba (Springer Open, 2019-02-19)
      Because of the lack of econometric studies in relevance to the link between tourism and renewable energy, the goal of this study is to remedy this lack and to explore the causal relationship between renewable energy consumption, the number of tourist arrivals, the trade openness ratio, economic growth, and carbon dioxide (CO2) emissions for a panel of 22 Central and South American countries, spanning the period 1995-2010. The empirical findings document that the variables under investigation are cointegrated, while short-run Granger causality tests illustrate unidirectional causalities running from: i) renewable energy to CO2 emissions and trade; ii) tourism to trade; and iii) economic growth to trade and tourism. In the long-run, there is evidence of bidirectional causality between renewable energy consumption, tourism, trade openness and emissions. Thus, renewable energy and tourism are in a strong long-run causal relationship. Moreover, long-run fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) estimates highlight that tourism and renewable energy contribute to the reduction of emissions, while trade and economic growth lead to higher carbon emissions. Therefore, encouraging the use of renewable energy and tourism developments, particularly green tourism, are good policies for this region to combat climate change.
    • Stock price reactions to wire news from the European Central Bank: evidence from changes in the sentiment tone and international market indexes.

      Apergis, Nicholas; Pragidis, Ioannis; University of Derby; Democritus University of Thrace (Springer., 2019-02-18)
      This paper examines the link between changes in the sentiment tone with respect to the European Central Bank’s (ECB) announcements and stock returns. The analysis constructs a new index that describes the tone of the sentiment derived from these announcements, spanning the period January 2002 to June 2016. The novelty of this work relies on the development of a unique sentiment index associated with the messages conveyed by the ECB’s activities and the effect of this index on both the mean and the volatility of certain major international stock markets. In this context, the sentiment index is present in both the conditional mean and the volatility equations. The findings indicate a significant impact on both the mean and the volatility of returns, whereas the news sentiment/stock returns association increases in strength during the crisis period. The findings survive a robustness check based on the characteristics of the ECB governor’s personality.
    • A new macro stress testing approach for financial realignment in the Eurozone

      Apergis, Nicholas; Apergis, Emmanuel; Apergis, Hercules; University of Derby; University of Kent (Elsevier, 2019-02-12)
      Contrary to the common approach of stress-testing under which banks are evaluated whether they are distressed, this empirical study chooses to move from the micro stress test approach to a wider new macro stress test category. By being able to stress testing the entire economy of the Eurozone, it will permit big banks to fail and, at the same time, will open room for new banking players to enter the sector, promoting the essence of a healthy destruction. The analysis performs a battery of stress tests, by implementing VaR, Cornish-Fisher VaR, Monte Carlo VaR, Expected Shortfall, Cornish-Fisher Expected Shortfall, and Monte Carlo Expected Shortfall. At the same time, it explicitly considers the new regulatory approach of IFRS9 to incorporate extreme values from forecasted series in the distributions. The analysis also performs two versions of stress tests, one including TARGET2 and one without it. The results document that future stress tests should include TARGET2 values in order to capture a better picture of the stressed economy. The findings from these stress tests clearly illustrate that although there has been a trough after the distress call of 2008, this trough ended. These are results derived without including the TARGET2 transfers. By including the TARGET2 transfers we receive a different picture that possibly acts as a protective mechanism against any future crisis. Caution is still advised, possibly due to some lingering imbalances within the Eurozone.
    • Financial experts on the board: does it matter for the profitability and risk of the u.k. banking industry?

      Apergis, Nicholas; University of Derby (Wiley., 2019-01-13)
      This paper explores the relation between board-level financial expertise, the profitability and the risk profile with panel data from the UK banking industry. The empirical findings document that collectively, financial experts have a positive influence on the performance outcomes of banks, they contribute to higher risks, especially in the case of large banks, while they improve the stock performance of the associated banks. Moreover, the results highlight that board-level qualified accountants have no statistical effect on that profitability, while such a positive link is established for the case of financial and banking professors, as well as for financial experts from other industries. Such findings imply that these two groups of professional financial experts may be easier adopted at group-level profits enhancement. Robustness checks confirm the results for all types of banking institutions, except those with a strong real-estate activity portfolio. Finally, certain commercial and/or policy implications of the results are reported.
    • The impact of fracking activities on Oklahoma’s housing prices: a panel cointegration analysis.

      Apergis, Nicholas; University of Piraeus (Elsevier., 2019-01-08)
      Fracking drilling has opened a discussion on the role of technological developments in economies engaged in shale oil and gas formations. Oil and natural gas production opened new possibilities for employment benefits and housing prices decreases. This paper explores, for the first time, the impact of fracking on housing prices across Oklahoma’s counties, spanning the period 2000-2015. Through panel methods, the findings show a positive effect on housing prices, while this positive effect gains statistical significance only over the period after the 2006 fracking boom. The results survive a robustness check that explicitly considers distance and groundwater-dependency issues.
    • The role of the debt-service ratio as a leading indicator of households consumption.

      Apergis, Nicholas; University of Piraeus (Wiley, 2019)
      Given that household debt raises certain concerns about the resilience of the economy, against this backdrop, this paper explores whether household debt service matters as a leading indicator for consumption. Employing data from 32 countries, spanning the period 1999-2017, the empirical analysis provides fresh information on the fact that the debt-service ratio strongly predicts consumption expenditure. The results also document that the effect of the debt-service ratio on consumer expenditure differs across types of consumer spending (durables vs nondurables vs services). In particular, the impact is strong for the case of the durable goods and weaker in the other two cases. The findings imply that debt service may serve as an important channel, running from debt to consumer spending. Finally, the results survive a number of robustness tests, while liquidity constraints seem to dominate the drivers of household consumption decisions.
    • Building routines for non-routine events: Supply chain resilience learning mechanisms and their antecedents.

      Scholten, Kirstin; Sharkey Scott, Pamela; Fynes, Brian; University College Dublin; University of Groningen; Dublin City University (Emerald., 2019)
      Organisations must build resilience to be able to deal with disruptions or non-routine events in their supply chains. While learning is implicit in definitions of supply chain resilience, there is little understanding of how exactly organisations can adapt their routines to build resilience. The aim of this study is to address this gap. An in-depth qualitative case study based on 28 interviews across five companies exploring learning to build supply chain resilience. This study uncovers six learning mechanisms and their antecedents that foster supply chain resilience. The learning mechanisms identified suggest that, through knowledge creation within an organisation and knowledge transfer across the supply chain and broader network of stakeholders, operating routines are built and/ or adapted both intentionally and unintentionally during three stages of a supply chain disruption: preparation, response and recovery. This study shows how the impact of a supply chain disruption may be reduced by intentional and unintentional learning in all three disruption phases. By being aware of the antecedents of unintentional learning organisations can more consciously adapt routines. Furthermore, findings highlight the potential value of additional attention to knowledge transfer, particularly in relation to collaborative and vicarious learning across the supply chain and broader network of stakeholders not only in preparation for, but also in response to and recovery from disruptions. This study contributes novel insights about how learning leads both directly and indirectly to the evolution of operating routines that help an organisation and its supply chains to deal with disruptions. Results detail six specific learning mechanisms for knowledge creation and knowledge transfer and their antecedents for building supply chain resilience. In doing so, this study provides new fine grained theoretical insights about how supply chain resilience can be improved through all three phases of a disruption. Propositions are developed for theory development.
    • Do gold prices respond to real interest rates? Evidence from the Bayesian Markov switching VECM model

      Apergis, Nicholas; Apergis, Hercules; Cooray, Arusha; Khraief, Naceur; University of Piraeu; University of Kent; Sri Lanka Embassy; Université de Tunis (Elsevier, 2019)
      The goal of this paper is to examine the transmission dynamics between the real interest rate and gold prices in the G7. The methodology follows the Bayesian Markov-Switching Vector Error-Correction (MS-VECM) model, along with regime-dependent impulse response functions, spanning the period 1975 to 2016. The findings suggest a positive association between gold prices and real interest rates, with the estimates remaining consistently positive and statistically significant across all G7 countries. The results indicate that gold prices can provide hedging services against real interest rate movements mainly during recessionary times. Our results continue to be robust when we extend the bivariate version of our modeling approach to include more drivers for gold prices.
    • Decoding the Australian electricity market: New evidence from three-regime hidden semi-Markov model.

      Apergis, Nicholas; Gozgor, Giray; Lau, Chi Keung Marco; Wang, Shixuan; University of Piraeus; Istanbul Medeniyet University; University of Huddersfield; University of Reading (Elsevier, 2018-11-01)
      The hidden semi-Markov model (HSMM) is more flexible than the hidden Markov model (HMM). As an extension of the HMM, the sojourn time distribution in the HSMM can be explicitly specified by any distribution, either nonparametric or parametric, facilitating the modelling for the stylised features of electricity prices, such as the short-lived spike and the time-varying mean. By using a three-regime HSMM, this paper investigates the hidden regimes in five Australian States (Queensland, New South Wales, Victoria, South Australia, and Tasmania), spanning the period from June 8, 2008 to July 3, 2016. Based on the estimation results, we find evidence that the three hidden regimes correspond to a low-price regime, a high-price regime, and a spike regime. Running the decoding algorithm, the analysis systemically finds the timing of the three regimes, and thus, we link the empirical results to the policy changes in the Australian National Electricity Market. We further discuss the contributing factors for the different characteristics of the Australian electricity markets at the state-level.
    • Building career mobility: A critical exploration of career capital

      Brown, Cathy; Wond, Tracey; University of Derby (NICEC, 2018-10)
      Work transitions can be stressful to those who experience them, and yet are happening more frequently, as the notion of a job for life fades. Ensuring smooth and successful work transitions is therefore in the direct interests of individuals and, indirectly, employers. Using the career capital construct, this article explores how work transitions can be better negotiated by individuals. After introducing career capital, the article progresses to critically review two theoretical frameworks of career capital. To illustrate the discussion, one individual, a business leader in a wider study we are undertaking, is introduced to exemplify and illuminate our discussion of career capital. The article concludes by offering strategies to support career capital development.
    • Managing higher education brands with an emerging brand architecture: the role of shared values and competing brand identities.

      Spry, Louise; Foster, Carley; Pich, Christopher; Peart, Sheine; Nottingham Trent University; University of Derby; Nottingham Business School, Nottingham Trent University, Nottingham, UK; College of Business, Law & Social Sciences, University of Derby, Derby, UK; Nottingham Business School, Nottingham Trent University, Nottingham, UK; Nottingham Institute of Education, Nottingham Trent University, Nottingham, UK (Taylor and Francis, 2018-07-25)
      Corporate branding is a strategic issue for universities as the global higher education (HE) marketplace is becoming increasingly competitive and there is pressure to differentiate. Yet it is unclear how universities develop and manage brand strategies, and whether they draw upon any meaningful connections to the multiple stakeholders and sub-cultures engaged with a university’s brand. Using qualitative data gathered from an education faculty within an established UK university, this study found the faculty and university had competing brand identities and images. A strong faculty brand emerged co-created through the shared teacher related values of staff and external partners. This study contributes to the brand strategy literature by applying branding concepts to the under-researched HE context and proposing a new, more nuanced brand architecture model not yet reported in the branding literature which more accurately reflects the management of sub and corporate HE brands.
    • Globalisation, economic growth and energy consumption in the BRICS region: the importance of asymmetries.

      Shahbaz, Muhammad; Shahzad, Syed Jawad Hussain; Alam, Shaista; Apergis, Nicholas; Montpelier Business School; COMSATS Institute of InformationTechnology; University of Karachi; University of Piraeus (Taylor & Francis, 2018-06-19)
      This paper examines the asymmetric impact of globalisation and economic growth on energy consumption in BRICS countries, applying the NARDL bounds approach to explore the presence of asymmetric cointegration across variables. The empirical results reveals that energy consumption is positively and negatively affected by the positive and negative globalisation shocks, respectively. A positive shock in economic growth promotes energy consumption, while a negative shock reduces energy consumption.
    • Does renewable energy consumption and health expenditures decrease carbon dioxide emissions? Evidence for sub-Saharan Africa countries.

      Apergis, Nicholas; Jebli, Mehdi Ben; Youssef, Slim Ben; University of Piraeus; University of Jendouba; University of Manouba (Elsevier, 2018-05-14)
      This paper employs panel methodological approaches to explore the link between per capita carbon dioxide (CO2) emissions, per capita real gross domestic product (GDP), renewable energy consumption, and health expenditures as health indicator for a panel of 42 sub-Saharan Africa countries, spanning the period 1995–2011. Empirical results support a long-term relationship between variables. In the short-run, Granger causality reveals the presence of unidirectional causalities running from real GDP to CO2 emissions, to renewable energy consumption, and to heath expenditures, and bidirectional causality between renewable energy consumption and CO2 emissions. In the long-run, there is a unidirectional causality running from renewable energy consumption to health expenditures, and bidirectional causality between health expenditures and CO2 emissions. Our long-run elasticity estimates document that both renewable energy consumption and health expenditures contribute to the reduction of carbon emissions, while real GDP leads to the increase of emissions. We recommend these countries to pursue their economic growth and invest in health care and renewable energy projects, which will enable them to benefit from their abundant wealth in renewable energy resources, improve the health conditions of their citizens, and fight climate change.