Factor Heterogeneity,Factor Market Imperfection and Trade

This paper develops a tractable model of examining how factor heterogeneity and imperfect factor market interact for determining a pattern of trade. Institution plays a crucial role for the interaction. In my work, firm productivity is defined as a composition of factor productivity and technology. Thus, input selection should affect the pattern of Melitz’s intra-industry allocation due to the incurring transaction cost. For a simple model, I assume two factors (labor and capital) and two sectors, which are relatively less institution-dependent and relatively more institution-dependent. When the economy is open, effect of the transaction cost on income distribution is more drastic for an institutionally underdeveloped country. Depending on institutional quality, the economic openness reallocates resource across countries through job creation or job destruction. The job turnovers redistribute income between heterogeneous labors within countries. The income redistribution is catalyzed by international mobility of capital. As a result, income disparity is widened between the institutionally developed country and the institutionally underdeveloped country. This paper can contribute to the literature of institution and international trade.     

CEO internal experience and voluntary disclosure quality: Evidence from management forecasts

Internally‐promoted CEOs should have a deep understanding of their firm's products, supply chain, operations, business climate, corporate culture, and how to navigate among employees to get the information they need. Thus, we argue that internally‐promoted CEOs are likely to produce higher quality disclosure than outsider CEOs. Using a sample of US firms from the S&P1500 index from 2001 to 2011, we hand‐collect whether a CEO is hired from inside the firm and, if so, the number of years they worked at the firm before becoming CEO. We then examine whether managers with more internal experience issue higher quality disclosures and offer three main findings. First, CEOs with more internal experience are more likely to issue voluntary earnings forecasts than those managers with less internal experience as well as those managers hired from outside the firm. Second, CEOs with more internal experience issue more accurate earnings forecasts than those managers with less internal experience as well as those managers hired from outside the firm. Finally, investors react more strongly to forecasts issued by insider CEOs than to those issued by outsider CEOs. In additional analysis, we find no evidence that these results extend to mandatory reporting quality (i.e., accruals quality, restatements, or internal control weaknesses), perhaps because mandatory disclosure is subjected to heavy oversight by the board of directors, auditors, and regulators. Overall, our findings suggest that when managers have work experience with the firm prior to becoming the CEO, the firm's voluntary disclosure is of higher quality.     

Training professionals' usage and understanding of Kirkpatrick's Level 3 and Level 4 evaluations

Training professionals have long acknowledged the necessity of conducting behavior‐based (Level 3) and results‐based (Level 4) evaluations, yet organizations do not frequently conduct such evaluations. This research examined training professionals' perceptions of the utility of Level 3 and Level 4 evaluations and the factors that facilitate or obstruct their attempts to perform them. The research was conducted using Brinkerhoff's Success Case Method and Gilbert's Behavior Engineering Model as its frameworks. The three key factors identified by study participants as having an impact upon their ability to conduct Level 3 and Level 4 evaluations were the availability of resources such as time and personnel, managerial support (organizational) and expertise in evaluative methodology (individual). The research findings indicated a need to further explore how training professionals interpret Level 3 and Level 4 and how they can better develop their evaluative expertise, which in turn may increase effectiveness in gaining organizational support for evaluation efforts.     

Do analysts who understand accounting conservatism exhibit better forecasting performance?

This study investigates the performance of analysts when they match the asymmetric timeliness of their earnings forecast revisions (i.e., asymmetric forecast timeliness) with the asymmetric timeliness of firms’ reported earnings (i.e., asymmetric earnings timeliness). We find that better timeliness‐matching analysts produce more accurate earnings forecasts and elicit stronger market reactions to their forecast revisions. Further, better timeliness‐matching analysts issue less biased earnings forecasts, more profitable stock recommendations and have more favorable career outcomes. Overall, our results indicate that analysts’ ability to incorporate conditional conservatism into their earnings forecasts is an important reflection of analyst expertise and professional success.     

The constraints of Chinese tourists to visit Korea caused by THAAD using Q-methodology

The recent deployment of the THAAD system to South Korea has resulted in complex and controversial issues, particularly in the political, diplomatic, and economic relations between Korea and China [Perlez, J. (2017, May 31). China woos South Korea’s new leader, but the U.S. left behind a spoiler. The New York Times. Retrieved from https://www.nytimes.com/2017/05/31/world/asia/china-south-korea-xi-jinping-moon-jaein-thaad.html?_r=0]. To minimize its negative impact on international tourism, the underlying psychological mechanisms of Chinese tourists associated with this complex political issue should be determined. As an attempt to resolve the current crisis, this study identified the subjective characteristics of Chinese tourists who cancelled visits to Korea using Q-methodology and classified Chinese tourists’ attitude towards the THAAD issue. Based on respondent’s evaluations on Q-sample statements, four types of Chinese tourists were articulated, namely, patriotism, risk awareness, external dependency, and Lotte sanctions. By delving into tourists’ subjectivity, Q-methodology seems powerful to elicit intrapersonal constraints, which are deeply embedded in an individual’s psychological state. The results showed that the THAAD issue greatly influenced Chinese tourists’ personal values, beliefs, and identities.     

Predicting Consumer Avoidance of Native Advertising on Social Networking Sites: A Survey of Facebook Users

Abstract

As a result of constant efforts to improve consumers’ online advertising experiences, native advertising has started to gain popularity on social networking sites (SNSs). This survey study examined antecedents of avoidance of native advertising on SNSs and the moderating role of consumer skepticism toward native advertising. Our findings suggest perceived intrusiveness and perceived informative and entertainment advertising value as major antecedents of consumer advertising avoidance. Additionally, the number of brands that consumers are following on SNSs and negative communication among peers on SNSs were found to be factors affecting native advertising avoidance. Finally, consumer skepticism toward native advertising was found to be an important moderating variable in the mechanism of advertising avoidance on SNSs.     

Merger Review by the Federal Communications Commission: Comcast–NBC Universal

The Communications Act of 1934 created a dual review process in which mergers in the communications industry are reviewed by the Federal Communications Commission (FCC) as well as the antitrust authorities. Commentators have criticized dual review not only as costly and redundant, but also as subject to substantive and procedural abuse. The process of clearing the 2011 Comcast–NBC Universal merger provides a useful case study to examine whether such concerns are justified. A review of the empirical context reveals that the FCC intervened even though the relevant markets were not structured in a way that would ordinarily raise anticompetitive concerns. In addition, the FCC was able to use differences between its review process and that used by the Justice Department to extract concessions from the merging parties that had nothing to do with the merger and which were more properly addressed through general rulemaking. Moreover, the use of voluntary commitments also allowed the FCC to avoid subjecting certain aspects of its decision to public comment and immunized it from having to offer a reasoned explanation or subjecting its decision to judicial review. The aftermath of the merger provides an opportunity to assess whether the FCC’s intervention yielded consumer benefits.     

Econometric Methods for Modelling Systems With a Mixture of i(1) and i(0) Variables

This paper considers structural models with both I(1) and I(0) variables. The structural shocks associated with either set of variables could be permanent or transitory. We classify the shocks as (P1,P0) and (T1,T0), where P/T distinguishes permanent/transitory, while 1/0 means they are attached to structural equations with either I(1) or I(0) variables as their ‘dependent’ variable. We show that P0 shocks can affect cointegration analysis and provide a formula to compute the permanent component if they are present. Finally, we reformulate a well‐known empirical structural vector autoregression showing the impact of P0 shocks when there are just long‐run parametric and sign restrictions. Copyright © 2015 John Wiley & Sons, Ltd.     

Scarcity Appeals in Advertising: The Moderating Role of Expectation of Scarcity

Advertisers often use scarcity appeals to influence consumers, with announcements such as “hurry, limited quantities,” and “limit: two per customer.” Based on a persuasion knowledge framework, we show in three studies that the effect of scarcity appeals on product evaluation is moderated by consumers' expectation of scarcity, such that scarcity appeals have a positive effect when expectation of scarcity is high but not when it is low. We also show that this interaction effect holds for expectation of scarcity due to demand as well as supply, and that cognitive load constitutes a boundary condition for this effect. These findings contribute to the literature by identifying expectation of scarcity as a moderator, persuasion knowledge as a mechanism, and cognitive load as a boundary condition for the effect of scarcity appeals on product evaluation. From a managerial perspective, this research indicates that scarcity appeals are more effective when consumers have high compared to low expectations of scarcity; that activation of persuasion knowledge can eliminate the positive effect of scarcity appeals; and that cognitive load can reinstate the positive effect of scarcity appeals on product evaluation.     

The politics,satisfaction, loyalty,and success of Ph.D. students in hospitality and tourism

The purpose of this study was to explore the roles of organizational politics in educational institutions with regard to graduate students’ satisfaction with supervision and loyalty toward advisors, and thereby success of students in the Ph.D. program, within the hospitality and tourism discipline. The findings demonstrate that satisfaction and loyalty play important roles in doctoral students’ experiences in graduate education. Several implications for students and faculty are discussed.