Matter over mind: When specific asset investment affects calculative trust in supply chain partnership

This study, using the concept of trust defined as calculative, risk-related, and relationship-based, examines the relationships between bilateral specific asset investments and after-investing trust. The findings indicate that a firm's trust in their supply chain partner is highly associated with both sides' specific asset investments. It also signifies that the replaceability of a respondent firm moderates the positive relationship between the partner's specific asset investment and trust. Our data has proven that the calculative-based trust theory has better explaining power with the transaction cost analysis (TCA) variables than the knowledge-based trust theory.     

Application of parametric insurance in principle‐compliant and innovative ways

There has been a rise of innovative parametric insurance solutions in recent years covering a wide range of risks and serving clients from individuals, to businesses, and to governments. These parametric insurance products cover risks that are otherwise uninsured or underinsured, by simplifying product design and reducing transaction costs. This paper offers a comprehensive review of parametric insurance including a classification of the types of contract and an overview of market practices. We outline the benefits and concerns of parametric insurance in comparison with indemnity insurance, and discuss the legal principle and regulatory compliance matters. We then survey the current global market and identify areas where insurance and reinsurance companies can play important roles in offering or supporting parametric insurance operations. Lastly, we offer a case study on a type of parametric insurance designed to cover earthquake risk in California.     

Evolution of the Interindustry Wage Structure in China Since the 1980s

Industry mean wages in China have exhibited sharply increased dispersion since the early1990s. Researchers have attributed this rising inequality within the industrial wage structure to: (i) increasingly competitive labour markets leading to better matches between worker pay, worker skills and employer demands; or (ii) residual government control in some industrial sectors that has generated high wages through monopoly rent sharing. We argue that the rise in China's industrial wage dispersion is primarily attributable to increasingly competitive labour markets, which have led to greater returns to schooling and to efficient redistribution of workers across major industry groups. We cannot reject the null hypothesis that the level or changes in government monopoly power has had negligible impact on China's rising industrial wage dispersion.     

National nanotechnology research prominence

A new bibliometric technique enables one to distinguish high emergence topical content. This technique can be applied to sets of research publication abstracts reflecting a given technical domain (here, nanotechnology) to score cutting edge research terms. The resulting high emergence terms warrant special consideration in setting R&D priorities. The researchers (individuals, organizations, or countries) whose publications address those emergent terms heavily deserve consideration as possible leaders in that technical domain. This paper studies nanotechnology research publications using the new emergence scoring in conjunction with established bibliometric publication and citation measures. Findings challenge U.S. superiority in cutting edge nanotechnology research. China shows strongest at addressing emergent nanotechnology topics, followed by the U.S., South Korea, India, and, surprisingly, Iran.     

Asymmetric sensitivity of executive bonus compensation to earnings and the effect of regulatory changes

Review of Quantitative Finance and Accounting - In this paper we examine the sensitivity of CEO bonus to earnings in the cases of good news and bad news, and compare these relationships in the...     

Forming and updating of product category perceptions: The influence of goals and discrepancy

Consumers categorize products to facilitate storage and retrieval of product information. Product categories are flexible in structure and may be altered to enable efficient processing, storage, and retrieval of information. The joint effect of two factors, learning goal and discrepancy, on the differential formation of category structures is examined. The learning goal influences the formation of initial category perceptions and is proposed to affect tendencies to subtype a new brand at different levels of discrepancy. Study results indicate that subjects who must make judgments about a new, strongly discrepant brand are influenced more by learning goal than are subjects presented with a moderately discrepant brand. Implications for marketing strategy are discussed. © 1996 John Wiley & Sons, Inc.     

Regional volatility in emerging countriesThe case of Russia1

An uneven distribution of natural resources and the Soviet legacy of artificial regional specialization expose Russia's regions to large income shocks. Using an unique regional dataset covering Russian regions between 1992 and 2003, we assess how these features influence the magnitude and persistence of regional income shocks. We propose a novel measure of regional exogenous shocks that we use to show that fiscal policy in Russia's regions has largely been pro‐cyclical, exacerbating rather than moderating regional exogenous shocks.     

Are disposition effect and skew preference correlated? Evidence from account-level ELW transactions

This paper examines whether two well-known cognitive biases, disposition effect and skew preference, may reflect a common feature of certain investors. On the basis of a unique proprietary dataset that provides the details of all transactions in the Korean equity-linked warrant (ELW) market between 2009 and 2011, we find that investors who realize gains faster than losses are also more likely to trade out-of-the-money ELWs. Investors who are less (more) subject to both biases exhibit the best (worst) risk-adjusted trading performance. Our findings suggest that disposition effect and skew preference occur simultaneously, which could adversely affect trading performance.     

Does labor–management partnership deprive union members of activism toward their unions? Evidence from union members in Korea

This study aims to analyze whether partnership ideology really deprives union members of the willingness and passion to act for their union, resulting in union decline, and whether militant unionism, which includes adversarial ideology against employers is more effective for igniting members' activism for their unions rather than labor–management partnership. The survey data were obtained from union members working in Mechanical and Metal Manufacturers Complex, Changwon, Republic of Korea. Judging from the overall results of the data analysis, Kelly's (1996) claim that moderate unionism based on partnership ideology would undermine members' activism for their unions was not supported; on the contrary, partnership ideology had positive effects on both members' activism for their unions and decision-making practices. The difference between partnership and militancy is that militancy had an intensive effect on the narrow focus of union activities, but the impact of partnership achieved a better balance between participation in union activities and in management decision making.