The Effects of Trading Methods on Volatility and Liquidity: Evidence from the Taiwan Stock Exchange

This study contrasts the call and continuous auction methods using Taiwan Stock Exchange data. Volatility under the call market method is approximately one-half of that under the continuous auction method. The call market method is more effective in reducing the volatility of high-volume stocks than low-volume stocks. This contradicts conventional wisdom which suggests that the call market method is superior for thinly traded stocks, while the continuous auction method is preferred for heavily traded stocks. The call market method does not impair liquidity and price discovery. The call market appears more efficient than in the continuous auction market.     

Incentives for Journal Editors

Scholars may become journal editors because editors may generate more citations of their own works. This paper empirically establishes that a scholar's publications are more likely to be cited by papers in a journal that is edited by the scholar. We then test if editors exercise influence on authors to cite editors’ papers by either pressuring authors (“editor‐pressure” hypothesis) or accepting articles with references to the editors’ papers (“editor‐selection” hypothesis), by using the keyword analysis and the forward citation analysis, respectively. We find no evidence for the two hypotheses, which leaves self‐selection as a possible cause for the editor effect. JEL classification: J01     

Fiscal policy in Korea: Before and after the financial crisis

This paper examines the role of fiscal policy in the Korean financial crisis and the subsequent recovery from it. We specifically address three questions: Was Korea’s fiscal policy prior to the crisis conservative, or were there large hidden contingent liabilities not captured in the official budget balance? What were the main characteristics of fiscal policy in stimulating and restructuring the economy under the IMF stabilization program in Korea? How effective were the financial guarantee and public investment programs as part of the counter-cyclical fiscal policy in the recovery process from the crisis? To address these questions, we re-estimate the consolidated budget deficits in Korea by incorporating the quasi-fiscal activities of public funds and public enterprises using their micro balance-sheet data from 1972 to 2003.     

FISCAL MULTIPLIERS DURING THE GLOBAL FINANCIAL CRISIS: FISCAL AND MONETARY INTERACTION MATTERS

This study investigates the fiscal multipliers of 21 Organization for Economic Co‐operation and Development countries during the global financial crisis using panel vector auto regression methodology. Our findings suggest that the 1‐year fiscal multiplier was greater than 1 during the crisis, whereas it was less than 1 before the crisis because of different fiscal and monetary interactions. The combination of expansionary monetary and fiscal policies during the crisis boosted gross domestic product more effectively through internal and external transmissions: investment crowding‐out was limited, and net exports were spurred by the policy interaction. In addition, our results are robust to various specifications. (JEL E61, E63, E65)     

INVENTOR PRODUCTIVITY AND FIRM SIZE: EVIDENCE FROM PANEL DATA ON INVENTORS

It has long been recognized that worker wages and productivity are higher in large firms. Moreover, economists have been interested in the efficiency of large firms in R&D enterprises. This paper uses inventor panel data to examine the relationship between inventor productivity and firm size in the pharmaceutical and semiconductor industries. In both industries, we find that inventors' productivity increases with firm size even after controlling for inventors' experience, education and other firm characteristics. We find evidence in the pharmaceutical industry that this is partly accounted for by differences in the way in which large and small firms organize R&D activities.     

Locally Sourced Restaurant: Consumers Willingness to Pay

This study tested (1) the theory of planned behavior to identify factors influencing customers’ willingness to pay more when visiting a locally sourced restaurant, and (2) assesses the effect of health consciousness and community attachment on willingness to pay more through attitude, subjective norms, and perceived behavioral control in visiting a locally sourced restaurant. A total of 423 responses were analyzed using a two-step approach of structural equation modeling. The findings indicated that health consciousness and community attachment positively influences attitude, subjective norm, and perceived behavioral control in visiting a locally sourced restaurant, which ultimately influence willingness to pay more.     

Revenue-sharing contracts across an extended supply chain

Revenue-sharing contracts have been heavily researched and promoted in the academic literature. However, despite some well-documented examples (e.g., the way Blockbuster and film studios were able to increase availability of the latest video releases in rental shops through a revenue-sharing contract), they seem to be much less prevalent in practice. A possible reason for this gap between theory and practice is that most academic research has focused on two-party contracts involving only one buyer and one supplier, while in reality, most supply chains consist of multiple stages. When there are several stages in the chain—as is the case for many extended, global supply chains—the traditional revenue-sharing contract is no longer optimal for the two contracting parties, as every other participant in the chain is able to leverage the revenue-sharing contract to its own advantage. Put another way, a revenue-sharing contract between only two parties is not incentive-compatible across all participants. Accordingly, we suggest that a revenue-sharing contract should involve all the supply chain partners, and propose a spanning revenue-sharing contract that accomplishes coordination and incentive-compatibility across the same.     

Developing an effective deep support network for individual investors

Providing investment research to meet the needs of the growing number of individual retail investors is an important opportunity. The broad variation in current stock research performance challenges investors to evaluate and select stock research. Evaluating stock research is difficult because developing stock research is a difficult and complex task. The research is largely an expression of the tacit knowledge of the analysts. This paper presents the concept, an effective deep support network to aid investors. An effective deep support network provides appropriate information from various providers that can be customisable and empowering to the individual investors. It allows them to incorporate their own judgment and to learn through experience. By meeting the real needs of retail investors, an effective deep support network could provide a competitive advantage for firms in financial services especially stock research firms.     

Dynamic change of corporate environmental strategy: rhetoric and reality

Although rhetoric involves political and symbolic posture, and does not always accurately represent reality, it plays an important role in the dynamic change process of environmental strategy. We first elaborate on the related concepts and develop frameworks to analyze corporate environmental strategy and its change. We report two case studies of Korean companies using the framework. Longitudinal case studies also provide additional implications for corporate environmental strategy in developing countries such as Korea. There is a gap between the rhetoric and reality of environmental strategy and it constantly changes over time depending on specific internal and external influences. The strength of external influences is a factor that determines whether the change is real or merely rhetorical. Internal organizational variables most likely affect the reality of environmental strategy. We show that the elaboration of rhetorical and realistic aspects of corporate environmentalism can bring out deeper insights and new theoretical developments. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment