This article investigates the underlying stochastic process generating dangerous rare events, such as financial crises, that occur more frequently than those predicted by models with finite variances. The authors discover that asymmetric Lévy probability distribution function characterized by infinite variance can model several multiple credit ratios used in financial accounting to quantify a firm’s financial health as well as changes of individual financial ratios. The authors also demonstrate, how such continuous credit rating approach and its dynamics can be used to evaluate credit risk.
This article investigates the concept of customer-based brand equity for a tourism destination, which has been introduced into the tourism literature only a few years ago. Specifically, it investigates whether differences between renewal and repeat tourists exist in their evaluation of a tourism destination. A theoretically proposed model, encompassing the dimensions of awareness, image, quality, and loyalty, was empirically verified for the European tourism destination Slovenia from the perspective of German tourists. The results imply that the dimensions of image and quality play the most important role in tourists’ evaluation of a destination, regardless of whether they are first-time visitors or repeaters. Results also reveal differences in importance for the dimensions of awareness and loyalty between renewal and repeat tourists. Drawing on the results, the article offers some implications for tourism organizations in developing and implementing destination marketing strategies in foreign markets.
This paper develops an analytical approximation for the distribution function of a terminal value of a periodic series of buy-and-hold investments placed over a fixed time horizon for the case when log-returns of assets follow a p-th order vector auto-regressive process. The derivation is based on a first order Taylor conditioned approximation with a suitably chosen conditioning variable. The results indicate a remarkably good fit between the approximating procedure and simulations based on realistic parameters.