Developing an index of online customer satisfaction

This paper integrates and applies the concept of ‘satisfaction’ from three fields: management information systems (MIS), marketing and e-commerce. E-customers are viewed as both computer users and customers and as a result researching customer satisfaction in e-commerce needs to integrate aspects of satisfaction from each of these fields. This study defines e-customer satisfaction and develops an index using a weighted sum model. The index is tested using a Korean sample. Analyses suggest an acceptable model and a generalisable set of measures from which managers and researchers evaluate online satisfaction and, especially, marketing strategies in financial services industries.     

Tunneling or Value Added? Evidence from Mergers by Korean Business Groups

We examine whether firms belonging to Korean business groups (chaebols) benefit from acquisitions they make or whether such acquisitions provide a way for controlling shareholders to increase their wealth by increasing the value of other group firms (tunneling). We find that when a chaebol-affiliated firm makes an acquisition, its stock price on average falls. While minority shareholders of a chaebol-affiliated firm making an acquisition lose, the controlling shareholder of that firm on average benefits because the acquisition enhances the value of other firms in the group. This evidence is consistent with the tunneling hypothesis.     

Poverty and informal economy participation

This paper uses a household survey of the Romanian informal economy to analyse the effects of poverty on informal economy participation. We begin by developing a simple theoretical model, which shows that the participation is driven by low income and the gap between desired and actual income level. We then estimate the determinants of households’ participation in the informal economy. Empirical findings are consistent with the theoretical prediction. In addition, a positive association between husbands and wives working in the informal economy implies the deep poverty faced by a family whose head participates in the informal economy.     

Ownership Structure,Business Group Affiliation,Listing Status,and Earnings Management: Evidence from Korea*

Using a large sample of both publicly traded and privately held firms in South Korea (hereafter “Korea”), we investigate whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our study yields three major findings. First, we find that as the control‐ownership disparity becomes larger, controlling shareholders tend to engage more in opportunistic earnings management to hide their behavior and avoid adverse consequences such as disciplinary action. The result of our full‐model regression reveals that an increase in the control‐ownership wedge by 1 percent leads to an increase in the magnitude of (unsigned) discretionary accruals by 1.3 percent of lagged total assets, ceteris paribus. Second, we find that for our full‐model regression, the magnitude of (unsigned) discretionary accruals is greater for group‐affiliated firms than for nonaffiliated firms by 0.8 percent of lagged total assets. This result suggests that business group affiliation provides controlling shareholders with more incentives and opportunities for earnings management. Finally, we find that for our full‐model regression, the magnitude of (unsigned) discretionary accruals is greater for publicly traded firms than for privately held firms by 1.2 percent of lagged total assets. This result supports the notion that stock markets create incentives for public firms to manage reported earnings to satisfy the expectations of various market participants that are often expressed in earnings numbers.     

The Amplifying and Buffering Effects of Virtuousness in Downsized Organizations

Virtuousness refers to the pursuit of the highest aspirations in the human condition. It is characterized by human impact, moral goodness, and unconditional societal betterment. Several writers have recently argued that corporations, in addition to being concerned with ethics, should also emphasize an ethos of virtuousness in corporate action. Virtuousness emphasizes actions that go beyond the “do no harm” assumption embedded in most ethical codes of conduct. Instead, it emphasizes the highest and best of the human condition. This research empirically examines the buffering and amplifying effects of virtuousness in organizations. The study hypothesizes that virtuousness has a positive effect on organizations because amplifying dynamics make subsequent virtuous action more likely, and buffering dynamics reduce the harmful effects of downsizing. The study reveals that two types of virtuousness – tonic and phasic – are associated with these effects.     

The dynamics of dealer markets and trading costs

In this study we examine the temporal dynamics of dealer market share and their ramification for competition and trading costs using a large sample of NASDAQ securities. Our results show that although the total market share of the top five dealers is relatively stable over time, there is significant monthly variation in the composition of the top five dealers. We show that market share turbulence among top dealers is another form of competition that narrows bid–ask spreads, especially for stocks with less competitive market structure.     

Trends in University Ag-Biotech Patent Production

This work exploits information on U.S. patents to identify trends in university ag-biotech patenting and citation performance. It sets forth some key issues concerning patterns of university ag-biotech patenting and then provides an empirical analysis of the evolving trends. Land grant universities account for most U.S. ag-biotech patents. The data show a path-dependent innovation pattern, in which there also seems to be a culture of patenting that develops at certain universities. Evidence shows that ag-biotech patents are more cited than the average university patent. Inequalities across land grant universities are also evident in the production of ag-biotech patents, although perhaps not to a much greater degree than underlying inequalities in funding and research qualities. The paper closes by considering how the evidence offered might be used to advance the public discussion regarding trends in agricultural biotechnology research in the United States.