Market discipline by depositors: evidence from reduced form equations

This paper examines the effects of the estimated probability of bank failure on the growth rates of large time deposits and interest rates on those deposits. While riskier banks paid higher interest rates, they attracted less large time deposits in the second half of the 1980s. These results indicate that risky banks faced unfavorable supply schedules of large time deposits and, hence, support the presence of market discipline by large time depositors. The empirical analysis also considers the effects of bank size, but fails to find evidence that depositors preferred large banks.Deposit insurance

Banking and deposit insurance as a risk-transfer mechanism

This paper models an economy in which risk-averse savers and risk-neutral entrepreneurs make investment decisions. Aggregate investment in high-yielding risky projects is maximized when risk-neutral agents bear all nondiversifiable risks. A role of banks is to assume nondiversifiable risks by pledging their capital in addition to diversifying risks. Banks, however, do not completely eliminate risks when monitoring by depositors is not perfect. Government deposit insurance that uses tax revenue to pay off depositors effectively remaining risks to entrepreneurs. Deposit insurance improves welfare because imperfect monitoring by the government results in income transfer among risk-neutral agents rather than lower production.Deposit insurance

The bank capital requirement and information asymmetry

This paper recognizes two main factors that cause the capital requirement to affect the weighted average cost of capital and hence the investment behavior of banks: underpriced debt resulting from the deposit insurance and information asymmetry between managers and the stock market. For a bank enjoying a low cost of debt (deposits), an increased proportion of equity financing raises the weighted average cost ofcapital. When the stock market underestimates the value of a bank due to information asymmetry, equity financing is expensive. This paper finds that banks constrained by the tightened capital requirement grew slower in 1991 and that information asymmetry as well as underpriced deposits played a role in explaining the slower growth.Bank capital ; Deposit insurance

Capital ratios as predictors of bank failure

The current review of the 1988 Basel Capital Accord has put the spotlight on the ratios used to assess banks’ capital adequacy. This article examines the effectiveness of three capital ratios—the first based on leverage, the second on gross revenues, and the third on risk-weighted assets—in forecasting bank failure over different time frames. Using 1988-93 data on U.S. banks, the authors find that the simple leverage and gross revenue ratios perform as well as the more complex risk-weighted ratio over one- or two-year horizons. Although the risk-weighted measures prove more accurate in predicting bank failure over longer horizons, the simple ratios are less costly to implement and could function as useful supplementary indicators of capital adequacy.Bank failures ; Bank capital ; Banks and banking - Ratio analysis

Are bank shareholders enemies of regulators or a potential source of market discipline?

In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is, maximize put option value - by pursuing riskier strategies. For safe banks with large charter value, however, the risk-taking incentive is outweighed by the possibility of losing charter value. Focusing on the relationship between book value, market value, and a risk measure, this paper develops a semi-parametric model for estimating the critical level of bank risk at which put option value starts to dominate charter value. From these estimates, we infer the extent to which the risk-taking incentive prevailed during 1986-92, a period characterized by serious banking problems and financial turmoil. We find that despite the difficult financial environment, shareholders' risk-taking incentive was confined primarily to a small fraction of highly risky banks

An integrated model of social impacts and resident’s perceptions: From a film tourism destination

Minimal research has been carried out regarding the host community’s perceptions of and reactions to film tourism impacts, utilizing a mainstream tourism destination such as Bali. This article aims to identify and explain residents’ perceptions of and attitudes toward the social impacts of film tourism, proposing an integrated theoretical model of social exchange theory, social representations theory and place change theory. Results indicate that the integrated model is particularly robust in explaining what caused a condition or event to be perceived as negative, positive or neutral place change, and why such changes are interpreted and evaluated in the social and cultural contexts. It also suggests that the locals do not perceive or necessarily respond to tourism impacts uniformly. As such, it contributes to a more wholesome understanding of the underlying dynamics and complexities involved in identifying and explaining the perceived impacts of tourism on the residents of a community in a theoretically rigorous, nuanced manner

Hunger for learning or tasting? An exploratory study of food tourist motivations visiting food museum restaurants

Background: To allow for accurate and timely diagnosis of developmental coordination disorder (DCD) key stakeholders must be familiar with and be able to identify features of this disorder. No studies to date have investigated the awareness of DCD among key stakeholders in Australia. Methods: An online survey was complete by 494 Australian participants: primary caregivers (n = 153), teachers (n = 149), allied health professionals (n = 165) and medical professionals (n = 27). Results: DCD and related terms were among the least known childhood disorders. Approximately half of the sample were familiar with the term DCD but every stakeholder group were more familiar with the term dyspraxia. Allied health professionals demonstrated greater knowledge of the features of DCD, particularly motor features. Every stakeholder group showed poor recognition of the social and psychological effects of DCD. A relatively low percentage of allied health (53%) and medical (33%) professionals reported they had identified or diagnosed DCD and less than 20% of these felt that the DSM-5 contained adequate information to make a DCD diagnosis. Most teachers (82%) believed they should play a role in identifying early warning signs of this disorder, and 80% believed there are children in the school system who were labelled as lazy or defiant when they have motor skills impairments. Primary caregivers were supportive of a diagnosis of DCD being provided; however, only 16% were confident that a physician would provide an accurate and timely diagnosis. Conclusion: Key stakeholders play a unique and important role in the identification of children with DCD. Though most participants acknowledge the role that they play, all stakeholder groups demonstrated poor familiarity with the term DCD and low levels of knowledge about the features of this disorder. Improved familiarity and knowledge of the disorder is needed for access to appropriate services and improved long-term outcomes for this condition

‘We and our stories’: Constructing food experiences in a UNESCO gastronomy city

The experiential elements of food tourism can be transformed into meaningful experiences of local food heritage and identity in the context of a UNESCO Creative City of Gastronomy. From a local stakeholder perspective, six key drivers at three phases of the food experience are identified, and each driver involves several local elements that are coordinated and staged in various modes to create and develop four sequential food experiences. The pre-travel stage should focus on enhancing potential tourist’s awareness of the UNESCO designation. The on-site food experience is found to be twofold: exposure to the local food environment and the actual tasting experience in situ. The food experience is claimed to continue beyond the post-travel stage where one’s memory is triggered by stimuli and reflection. These create the ultimate local food experience for tourists, but it is the unique local identity that is critical from the local stakeholder perspective. Supplemental data for this article is available online at https://doi.org/10.1080/14616688.2021.1943701

The slow movements: Informetric mapping of the scholarship and implications for tourism and hospitality

Slow food and the consequent slow movements are becoming more evident in research and media with the recognition of its implications for sustainability in many spheres of society. This study—the first systematic literature review of this topic—offers a comprehensive interdisciplinary investigation into slow movements which allows us to gain a systems view of the scholarship; stakeholder-oriented insights; and a holistic understanding of slowness while recognizing the various movements within and providing future research directions for tourism and hospitality researchers. This study identifies that slowness has extended to most aspects of our everyday life, such as the slow city, slow management, slow fashion, slow philosophy in general, and slow tourism; the latter offering COVID-19 post-pandemic recovery opportunities through sustainable tourism and hospitality. This study acts as a springboard for a better understanding of the slow(ness) movements to encourage more proactive interactions with key stakeholders and to develop the field further

Beyond the authentic taste: The tourist experience at a food museum restaurant

This study investigates the factors influencing food experiences perceived by food tourists in the context of a food museum and its associated restaurant. A qualitative exploratory approach was employed, using Chinese tourists visiting Hangzhou Cuisine Museum in Zhejiang province. This research finds that food tourists look for knowledge accumulation and gastronomic experiences when visiting a food museum and restaurant complex, and each experience is formed by both tourist and setting factors. The findings highlight the significant and more complex engagement of setting factors in the museum restaurants. The institutionalised characteristics of museums are equally expected within the in-house restaurants, and social trust in the museum along with external factors that verify authentic representation of the museum contributed to the perceived authenticity of the food tourist\u27s dining experience. This paper discusses broad implications for food experience design at food museums and restaurants as emerging tourism attractions