More stable governments should improve banking systems’ financial stability by increasing the predictability of future public decisions. Our study explores the relationship between political stability, as captured by the voting share of governing parties, and banking system stability. Using a sample of 84 countries over the 2004–2017 period, our dynamic panel approach shows that voting power is significantly related to banking default risk only in presidential systems. An increase in the voting share of governing parties probably favors the enforcement of the president’s political agenda, thereby reducing the degree of political uncertainty. This seems to strengthen banking stability. Are banks vulnerable to unstable governments?
02:51
Although consumers rely on their activities to help construct their identity, antecedents and outcomes of consumer-activity identification (CAI) have not been elucidated. This research addresses this gap through the development of a conceptual model that is tested through two studies. Study 1 finds that CAI leads to consumer-brand identification (CBI). Further, CBI mediates the relationship between CAI and brand loyalty. Study 2 expands these findings by understanding the role of brand and activity social benefits as antecedents for CAI and CBI and including a second brand outcome: brand relationship continuance. Taken together, the results indicate that consumers indeed rely on the activities a brand is used within to construct their identity in addition to the brand.
- Research
- Marketing, Sales and Communication
