Negative Spillovers Research Articles

Spillover effects of data breach on consumer perceptions: evidence from the E-commerce industry

PurposeThis study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data breach affects consumers’ privacy risk perceptions of competing firms, and further how it affects shopping intention for the competitors. We also examine how the privacy risk contagion effect varies depending on the characteristics of competitors and their competitive responses.Design/methodology/approachWe conducted two scenario-based experiments with surveys. To assess the spillover effects and the moderating effects, we employed an analysis of covariance. We also performed bootstrapping-based mediation analyses using the PROCESS macro.FindingsWe find evidence for the privacy risk contagion effect and demonstrate that it negatively influences consumers’ shopping intention for a competing firm. We also find that a competitor’s cybersecurity message is effective in avoiding the privacy risk contagion effect and the competitor even benefits from it.Originality/valueWhile previous studies have examined the impacts of data breaches on customer perceptions of the breached firm, our study focuses on customer perceptions of the non-breached firms. To the best of the authors’ knowledge, this study is one of the first to provide empirical evidence for the negative spillover effects of a data breach from a consumer perspective. More importantly, this study empirically demonstrates that the non-breached competitor’s competitive response is effective in preventing unintended negative spillover in the context of the data breach.

Asymmetric and frequency-domain spillover effects among industrial metals, precious metals, and energy futures markets

We analyze asymmetric return spillovers in time and frequency domains across industrial and precious metals and energy futures markets using daily data for 18/05/2011–23/09/2020. Using the frameworks of Diebold and Yilmaz (2012) and Baruník and Krehlík (2018), we find that positive and negative spillover returns are symmetrical across analyzed markets, while being more pronounced during periods of economic turmoil or geopolitical unrest. Notable contributors of positive net spillovers are natural gas, diesel, zinc, and lead, while the most prominent negative net spillover receiver is gold. Findings will be of interest to investors, and portfolio managers.

The spillover effect of real estate boom on stock market efficiency: evidence from China

ABSTRACT We examine how the increase in real estate prices affects stock market efficiency. Using a sample of Chinese listed firms from 2010 to 2019, we find that high local real estate prices significantly exacerbate stock mispricing. Our findings remain robust after dealing with endogeneity concerns using an instrumental variable approach, an alternative sample choice, and alternative variable measurement. The positive effect of housing prices on stock mispricing is weaker for cross-listed firms and more pronounced for firms with more positive media coverage. Further analysis shows that the booming real estate market accelerates c orporate financial assets investment and inspires optimistic investor sentiment. Our results shed light on the negative spillover effect of the overheated real estate sector from the perspective of capital market efficiency.

The impact of customer misbehavior on frontline employees’ work–family conflict and withdrawal behaviors

PurposeCustomer misbehavior has a negative impact on frontline employees. However, the underlying mechanisms from customer misbehavior to employees’ negative outcomes need to be further unfolded and examined. This study aims to propose that employees’ affective rumination and problem-solving pondering could be the explanatory processes of customer misbehavior influencing employee attitudes in which coworker support could be a moderator.Design/methodology/approachA mixed-method approach was designed to test this study’s predictions. Study 1 conducted a scenario-based experiment among 215 full-time hospitality employees, and Study 2 used a two-wave, longitudinal survey of 305 participants.FindingsThe results demonstrate the impact of customer misbehavior on work–family conflict and withdrawal behaviors. The mediating role of affective rumination is supported and coworker support moderates the processes.Practical implicationsCustomer misbehavior leads to negative outcomes among frontline employees both at work and family domains. Hotel managers should help frontline employees to cope with customer misbehavior by avoiding negative affective spillover and providing support properly.Originality/valueThe studies have unfolded the processes of affective rumination and problem-solving pondering through which customer misbehavior influences work–family conflict and withdrawal behaviors among frontline employees. The surprising findings that coworker support magnified the negative effects have also been discussed.

Co-benefits and influencing factors exploration of air pollution and carbon reduction in China: Based on marginal abatement costs

This study addresses the pressing need for cost-effective emission reduction strategies that maximize co-benefits in terms of air pollution and carbon emissions. Our research contributes to the literature by accurately measuring these co-benefits, thereby facilitating their prompt realization in different regions. We employ an input-output framework that integrates carbon emissions and air pollution, allowing us to calculate marginal abatement costs using the shadow price of undesired output. Through this approach, we quantify the co-benefits and analyze the factors influencing them at both spatiotemporal and factor levels using spatial kernel density and geographical detectors. Our findings reveal several key insights: (1) under joint emission reduction efforts, we observe average annual reduction rates of 6.46% for marginal pollution and 6.10% for carbon reduction costs. Importantly, we document an increase in co-benefits from 0.50 to 0.86, characterized by an initial fluctuation followed by a linear increase. (2) the marginal cost difference for carbon emission and pollution reduction in western China was 179.45 and 155.08 respectively, compared to 321.51 and 124.70 in the Northeast, highlighting the crucial role of regional differences in shaping co-benefit outcomes. (3) we identify a negative spatial spillover effect between provinces, which diminishes over time, leading to heterogeneous effects when local provincial co-benefits exceed a threshold of 0.9. (4) during the adjustment period, we find that the industrial structure exerts significant single and interactive effects on co-benefits. Additionally, we highlight the critical role of environmental governance investment and government intervention as drivers of co-benefits in the current era. By offering the quantification of co-benefits under the marginal abatement costs, our study provides valuable scientific insights for planning and implementing effective synergy strategies.

Does Promoting One Healthy Behavior Detract from Others? Evidence from a Field Experiment

Impact evaluations of behavioral interventions typically focus on target outcomes. Might interventions induce negative spillovers on other behaviors? I run a large field experiment in which individuals receive combinations of messages and incentives promoting two healthy behaviors, meditation and meal logging. I find that the interventions reduce completion rates of the opposite behavior by 19–29 percent. I find that interventions with larger target effects do not necessarily generate larger negative spillovers, and demonstrate implications for cost-effectiveness analysis. I investigate the mechanisms behind the observed spillovers. (JEL C93, D62, D91, I12)

Clean air policy and green total factor productivity: Evidence from Chinese prefecture-level cities

Clean air policy is an important mechanism for improving the urban environment and promoting green economic development. Green total factor productivity (GTFP) is an important way to measure these impacts. We apply the super-efficiency slack-based measure model, considering undesirable output, and the Global Malmquist-Luenberger index to measure the GTFP of 278 prefecture-level cities in China from 2005 to 2020. We find that GTFP growth is driven by both green technology progress (GTC) and green technology efficiency change (GEC). The traditional total factor productivity is overestimated, because energy and environmental factors are not considered. GTFP growth is higher in the cities in the eastern coastal regions compared to the western regions. We analyze the effect of clean air policy on GTFP using a difference-in-differences model and spatial-difference-in-differences model, and further conduct a heterogeneity analysis and mechanism analysis. The results show that clean air policy promotes GTFP growth. In addition, there is a significant negative spatial spillover effect with respect to the impact of clean air policy on GTFP. The heterogeneity analysis results show that the impact of clean air policy on GTFP growth is lower in resource-based cities and cities in the northern region, compared with non-resource-based cities and cities in the southern region. Further, the impact of clean air policy on GTFP growth is mainly achieved through GTC, GEC, innovation, and financial development. In resource-based cities and cities in the northern region, clean air policy decreases GTFP by inhibiting GTC, innovation, and financial development.

Market-based oil spill(overs): Market reactions to the energy windfall tax announcements and disclosures in the United Kingdom

We investigate the market reaction to a windfall tax regulation announcement for oil and gas firms in the UK. We find that firms subject to the windfall tax experience a significant abnormal price effect of 6.0 to 7.3 %. The effect is concentrated among large and more profitable firms. The results also show that firms voluntarily disclose more precise information after the regulation to offset the negative abnormal price reaction at the windfall tax announcement date. Evidence suggests that these disclosures are largely effective at allaying the price effects associated with increased investor disagreement. Moreover, our analyses show that firms within the same industry experience a negative spillover effect and decreased investor demand associated with heightened policy uncertainty about the implementation of windfall tax regulation. This version: February 2024

The spillover effect of export on total factor productivity of enterprises: panel data approach in Vietnam

PurposeThis study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.Design/methodology/approachThis study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.FindingsThe results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.Research limitations/implicationsThis study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.Practical implicationsThe study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.Originality/valueThis study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373

The impact of air pollution on regional innovation: empirical evidence based on 267 cities in China.

Based on the spatially correlated effects of air pollution on regional innovation, theoretical hypotheses are proposed, and this paper employs a spatial Durbin model to conduct empirical tests using panel data from 267 Chinese cities from 2003 to 2019, and investigates the mediating effect of human capital. Research has shown that (1) air pollution significantly reduces regional innovation output and has a negative spatial spillover effect significantly in the short term; (2) in the process of regional innovation impacted by air pollution, human capital acts as a mediator role; and (3) analysis of heterogeneity reveals that, from the regional perspective, air pollution has significantly damaged regional innovation in eastern and middle cities, but not significantly influences western cities, and in terms of innovation types, there is a stronger detrimental effect on invention patents exerted by air pollution compared to non-innovation patents. The study's findings provide theoretical and empirical evidence to strengthenenvironmental governance, enhance regional innovation and promote the coordinated development of regional innovation.

Bond Price Fragility and the Structure of the Mutual Fund Industry

Abstract We conjecture that mutual funds with large shares of outstanding bond issues are more inclined to internalize the negative price spillovers of fire sales and thus sell their holdings in those issues, to a lower extent, when they experience redemptions. We provide evidence consistent with this conjecture and further show that ownership concentration limits bonds’ exposures to flow-induced fire sales. We exploit variation in negative spillovers arising from the Fed’s SMCCF to confirm the economic mechanism and explore our findings’ implications for fund performance and fire-sale spillovers to other funds.

It's time we put agency into Behavioural Public Policy

Abstract Promoting agency – people's ability to form intentions and to act on them freely – must become a primary objective for Behavioural Public Policy (BPP). Contemporary BPPs do not directly pursue this objective, which is problematic for many reasons. From an ethical perspective, goals like personal autonomy and individual freedom cannot be realised without nurturing citizens’ agency. From an efficacy standpoint, BPPs that override agency – for example, by activating automatic psychological processes – leave citizens ‘in the dark’, incapable of internalising and owning the process of behaviour change. This may contribute to non-persistent treatment effects, compensatory negative spillovers or psychological reactance and backfiring effects. In this paper, we argue agency-enhancing BPPs can alleviate these ethical and efficacy limitations to longer-lasting and meaningful behaviour change. We set out philosophical arguments to help us understand and conceptualise agency. Then, we review three alternative agency-enhancing behavioural frameworks: (1) boosts to enhance people's competences to make better decisions; (2) debiasing to encourage people to reduce the tendency for automatic, impulsive responses; and (3) nudge+ to enable citizens to think alongside nudges and evaluate them transparently. Using a multi-dimensional framework, we highlight differences in their workings, which offer comparative insights and complementarities in their use. We discuss limitations of agency-enhancing BPPs and map out future research directions.

Tracing the dynamic impact of energy transitions on equity market volatility in an era of financial turbulence

This study investigates the dynamic relationship between the shift towards clean energy and stock market fluctuations, covering the period from January 2004 to August 2021 by applying time-varying parameters vector autoregressions (TVP-VAR). The results reported strong spillovers between clean energy markets and stocks, while dirty ones demonstrated disconnected spillovers. Asymmetry in the spillovers detected dominance of negative (bad) spillovers due to various uncertain economic and financial circumstances. The most significant negative (bad) events tracked in time-varying attributes are the global financial crisis, European Debt Crisis, Shale Oil Crisis, Brexit, US interest rate agenda, and the COVID-19 pandemic. Meanwhile, negative asymmetries prevailed in time-varying analysis, echoing the pre-eminence of negative crisis periods. We identified clean energy markets and stocks as net spillover emitters and dirty energy markets as net recipients. These findings have profound implications for a range of stakeholders, including investors, policymakers, and market participants, offering valuable insights for portfolio diversification and risk management strategies amidst the ongoing energy paradigm shift.

Spillovers from US monetary policy: Role of policy drivers and cyclical conditions

We provide new evidence on the spillover effects from US monetary policy for a large group of emerging market and advanced economies, focusing on the nature of the shocks driving movements in US interest rates. With an SVAR-IV model used to identify monetary policy, demand, and supply shocks, we find that an increase in US interest rates driven by demand shocks engenders a positive spillover to economic activity in the near-term, while an exogenous tightening of monetary policy has a large negative spillover effect, highlighting the importance of the trade channel. Furthermore, spillovers from US monetary policy shocks depend on the state of the business cycle, exerting larger effects when growth is weak outside the US. Finally, tighter US monetary policy affects the left tail of the growth distribution disproportionately: the fat left tail highlights the salience of growth at risk.

Influence of Personal and Work Environments on Work-Life Balance Among Emergency Medical Technicians.

Introduction Work-life balance (WLB) is a critical concern for emergency medical technicians (EMTs) because it significantly affects the provision of comprehensive emergency medical services (EMS). This study investigated personal and work-related factors influencing work-to-family negative spillover (WFNS), a key element of WLB, among EMTs. Methods A web-based survey was conducted from July 26 to September 13, 2021, among EMTs in Hokkaido, Japan. The study included 21 facilities that were randomly selected from 42 fire stations. The Japanese version of the Survey Work-Home Interaction-NijmeGen (SWING-J) was used to measure WFNS. Personal background factors, such as age, sex, years of work experience, and education, were surveyed. We also evaluated work environment factors, such as weekly working hours, monthly night shifts, monthly overtime hours, and yearly paid vacation days. Unpaired Student's t-tests, one-way analysis of variance (ANOVA), and multilevel generalized linear model (MGLM) analyses were used to explore the relationships between WFNS and personal and work-related factors. Results A total of 912 respondents were included in our analysis. They were predominantly male (98.2%), with an average EMT work experience of 12.7 years and a mean WFNS score of 1.16 (standard deviation (SD) = 1.67). MGLM analysis, adjusting for covariates, identified years of work experience (β = -0.129, p = 0.001), monthly overtime hours (β = 0.184, p < 0.001), and yearly paid vacation days (β = -0.170, p < 0.001) as independent factors associated with WFNS. Conclusion This study suggested that adjusting WFNS among EMTs could be achieved by reducing overtime hours and fostering an organized approach to paid leave within the work environment.

How Does Industrial Intellectualization Affect Energy Intensity? Evidence from China

Since the 21st century, as the digital economy has flourished and the Fourth Industrial Revolution has deepened, emerging technologies have exerted a significant influence on social development, leading to the rapid informatization and digitalization of society. Therefore, in the digital age, industrial intellectualization and energy intensity may interact. In this study, an industrial intelligent system is constructed considering three aspects, and the relationship is explored between industrial intellectualization and energy intensity from 2006 to 2018 in China. Industrial intellectualization can effectively improve energy efficiency and thus restrain energy intensity with a significant lag effect. In addition, China’s energy intensity is highly spatially autocorrelated and spatially agglomerated. The negative spatial spillover effect of industrial intellectualization on energy intensity is also of concern. Finally, the nonlinear effects of industrial intellectualization on energy intensity are comprehensively analyzed under different levels of economic growth, technological progress, industrial restructuring, educational progress, financial development, and environmental regulation.

Exposure to Dollar, financial Openness, and the heterogeneous impact of US monetary spillover

This paper studies how country heterogeneities, especially in their (1) net exposure to dollar debt and (2) financial openness affect the propagation of US monetary shocks into peripheral advanced and emerging economies. We contribute to the understanding of how interest rate and GDP responses of emerging countries depend on both their dollar liability and financial openness, as well as the interaction between these two factors. Specifically, we find that economies with higher debt dollarization have higher interest rate responses to contractionary US monetary shocks to prevent negative balance sheet effects. We also find that GDP decreases by more for economies with high debt dollarization if their financial openness is high. Using capital control as the de jure measure of financial openness, we obtain similar results that GDP decreases by more for countries net short of dollar if capital control is low, and at the same time, GDP is higher for countries with higher capital control if they are more indebted in dollar. Combined, these imply that capital control helps dampen negative US monetary spillover, and the benefit from imposing capital control is larger for countries that are more indebted in dollar.

Environmental regulation, land use efficiency and industrial structure upgrading: Test analysis based on spatial durbin model and threshold effect

Environmental regulation promotes industrial structure change and regional economic transformation through land use adjustment, which gets a new way to explore the path of reforming traditional industrialization and urbanization. Based on the panel data of 128 prefecture-level cities in China 's Yangtze River Economic Belt from 2000 to 2020, this paper uses the spatial Dubin model to analyze the impact of environmental regulation and land use efficiency on the upgrading of industrial structure, and sets the panel threshold model to examine the impact of environmental regulation on the upgrading of industrial structure by affecting land use efficiency. The results show that formal environmental regulation has a significant positive spatial effect on the rationalization and upgrading of industrial structure, which are 0.1734 and 0.2854 respectively. Informal environmental regulation has a negative spillover effect on neighboring provinces but not significant. Heterogeneous environmental regulation has obvious “double threshold effect” on industrial upgrading by affecting land use efficiency. When the threshold of environmental regulation intensity is 0.0315–0.0886, environmental regulation still inhibits land use efficiency and industrial structure upgrading. When the threshold value is greater than 0.0886, environmental regulation has a positive impact on land use efficiency but not significant. With the intensity of environmental regulation from weak to strong, it will produce a double threshold effect of “strong inhibition-weak inhibition-interaction promotion” on the upgrading of manufacturing structure through the adjustment of land use efficiency.

Sanctioning democratic backsliding in the European Union: transnational salience, negative intergovernmental spillover, and policy change

ABSTRACT In 2021, the European Union (EU) started to use material sanctions to punish democratic backsliding in Hungary and Poland. This policy change presents a puzzle for the existing literatures on international responses to backsliding. We theorise two distinctive processes that can account for why EU policy changed from inaction to enforcement. First, once the issue of backsliding in a member state has attained public salience across the other member states, their mainstream parties face domestic electoral incentives to support sanctions against illiberal governments abroad. Second, once backsliding governments also disrupt intergovernmental policy cooperation and threaten common policies at the EU level, even those actors who had been reluctant to defend EU values become more inclined to use sanctions. We demonstrate the plausibility of our explanation with evidence, first, of the increasing public and electoral salience of backsliding in other EU member states, and second, of the occurrence of a negative intergovernmental spillover through increasing attacks by backsliding member state governments against common policies.

Can Financial Agglomeration Development Reduce Carbon Emissions? Evidence from the Yangtze River Delta Region of China

Reducing carbon emissions is a crucial measure for achieving sustainable development. The financial industry exhibits remarkable spatial agglomeration characteristics, which play a pivotal role in advancing carbon emission reduction and facilitating energy transformation. Using panel data from 41 cities in the Yangtze River Delta from 2008 to 2019, this study employed a spatial econometrics model to investigate the impacts and spatial spillover effects from the development of financial agglomeration on carbon emissions and the associated underlying mechanisms. The research shows that (1) there is an uneven spatial distribution of carbon emissions and financial development within the Yangtze River Delta region of China; (2) an inverted U-shaped relationship exists between financial agglomeration and carbon emissions, and only Shanghai’s level of financial agglomeration exceeds the extremum point; (3) financial agglomeration shows a negative spatial spillover effect on carbon emissions; and (4) financial agglomeration can promote industrial movement toward reducing carbon emissions. The study suggests some strategies for carbon reduction in China.