The price effect of allowing non-pharmacy outlets to sell OTC drugs in Korea

By the amendment of the Pharmaceutical Affairs Act in 2012, non-pharmacy outlets (confined to 24-hour convenience stores) in Korea were permitted to sell 13 over-the-counter (OTC) drugs. This article empirically examines the effect of the regulatory reform on OTC drug prices. To do so, we use county-level price data of 7 OTC drugs for the years of 2012 and 2013. Among them, 2 OTC drugs are available at non-pharmacy outlets due to the deregulation, and the remaining 5 are still only available at pharmacies. Employing a difference-in-differences estimation strategy, we find that after the regulatory reform, prices of the 2 OTC drugs increased by only 1.1% while those of the rest 5 increased by 6.5%. This result has implications for the government’s policy of designating non-pharmacy outlets that can sell OTC drugs from the viewpoint of consumer welfare.     

Economic Effect of Zoning Regulations on Korea's Small and Medium‐Sized Retailers*

In this paper, we investigated the economic effects of zoning regulations on the retail industry in Korea. We estimated the changes in the number of sales for retail stores using a panel regression analysis for stores in traditional markets. This analysis was conducted to examine the benefit of zoning regulations on retail stores. Our results show that the zoning regulations (called Traditional Commercial Activity Protection Zones) have contributed to an improvement in the actual business performance of small independent retailers. We found that the amount of sales for each store clearly increased on average in the areas designated as Traditional Commercial Activity Protection Zones where there was no market entry of mega supermarket chains (called SSM in Korea). We also present evidence that the effects of this policy differ geographically: the effects were stronger for small and medium cities than for large metropolitan cities. These results suggest that zoning regulations enacted by the government to protect traditional markets and small retailers should also consider regional differences when assessing policy effectiveness.     

Consumer engagement behaviors in the online wildlife trade: Implications for conservationists

This study investigates consumer engagement behaviors in the online wildlife trade, drawing implications for conservationists. The first study undertook a quantitative content analysis of 500 Facebook posts in wildlife trade lateral exchange markets to show how creative strategies, media type and persuasion tactics influence the number of likes and comments that posts receive. The second study then undertook a thematic discourse analysis to develop a rich understanding of the culture, beliefs and motivations that influence how consumers engage in the markets. Findings showed that an overwhelming majority of posts use a functional or informational strategy and that when posts use overt persuasion tactics the number of comments decrease. A conceptual model of how cultural factors may impact the success of marketing strategies is then proposed. These findings have implications for conservationists who seek to build engagement with wildlife trade consumers online.     

Are social entrepreneurs more risk-averse?

We have a conventional wisdom that risk-seeking behaviours are related to commercially oriented entrepreneurs. For this reason, most studies have focused on the context of commercial entrepreneurship, and thus we do not know the risk propensity of social entrepreneurs. Using the PSM method, contrary to our wisdom, we find that social entrepreneurs tend to more have about 15% risk-seeking propensity than commercial entrepreneurs.     

Social exclusion influences on the effectiveness of altruistic versus egoistic appeals in charitable advertising

Marketing Letters - In three experiments, the authors study charitable behaviors and demonstrate that consumers who feel socially excluded react more positively to altruistic, other appeals rather...     

Neutralizing environmental uncertainties: the evolution of leadership in the South Korean TV station,KBS

ABSTRACT

Leadership studies on public TV companies are few and far between due to their peculiar status as a monopoly in the market. TV leadership has been deemed less important than the government that regulates it or the corporate advertisers who buy its air time. Using the theory of environmental threats and leadership evolution, this study analyses the personal data of CEOs at the Korea Broadcasting System (KBS), which is owned and controlled by the state from its conception in 1961. This contribution finds that different types of CEOs were favoured for each evolutionary stage with dissimilar environmental threats. Over the years, CEOs at KBS have become much more professionalized and were selected from inside rather than from the government. However, CEOs continue to pursue their political, rather than professional, roles to neutralize its external threats. It continues to be genuine that the most critical environmental threat for KBS is the state itself. The continuous political nature of KBS leadership makes it very difficult for the organization to be free from internal and external crises, including general strikes by employees and the sweeping layoff of key decision-makers in the firm by the government. It is expected that new CEOs at KBS should play professional roles for their long-term survival.     

When and Why Do Takeovers Lead to Fraud?

This paper develops a model explaining how acquisitions of controlling block ownership can facilitate post‐takeover fraud by new managers when investor protection is poor. Based on disclosures of embezzlement or breach of fiduciary duty in Korean firms, we find that the probability of explicit looting in takeover targets is 13%, almost five times as large as a matched sample of non‐targets. Post‐takeover frauds are primarily driven by transfers of minority blocks, while the corresponding probability in majority acquisitions is statistically indistinguishable from the non‐targets. These findings may explain why minority acquisitions of controlling blocks are popular under poor investor protection.     

Do hedge funds time market tail risk? Evidence from option-implied tail risk

This paper focuses on an unexplored dimension of fund managers’ timing ability: Market-wide tail risk implied by information in options markets. Constructing the option-implied tail risk, we investigate whether hedge fund managers can strategically time the tail risk through adjusting their exposure to changes of it. Using an extensive sample of equity-oriented hedge funds, we find strong evidence of tail risk timing ability of hedge fund managers. Furthermore, tail risk timing ability brings significant economic value to investors. Top-ranked funds outperform bottom-ranked funds by 5–7% annually after adjusting for risk factors. Our results are robust to various robustness checks.     

In the wake of conflict: the long-term effect on child nutrition in Uganda

The Lord’s Resistance Army (LRA) insurgency from 1986 to 2006 is one of the longest conflicts in Uganda. This paper examines the effect of the LRA insurgency on child nutrition using the 2011 Uganda Demographic and Health Survey. The distance from each village to the border of South Sudan is used as an instrument for identifying the intensity of the conflict. We find that each conflict event in a village lowers weight-for-age z-scores and weight-for-height z-scores for children born after the conflict. We further investigate a possible heterogeneous conflict effect on child nutrition in terms of gender, region, and maternal education. Low household wealth, limited access to healthcare, and poor maternal nutrition appear to be channels through which the conflict inhibits the growth and development of children 5 years after the end of the conflict.