Labor Militancy in South Korea*

Korea has adopted the labor institutions of Japan, which are noted for ensuring industrial peace unparalleled elsewhere, fostering worker‐management cooperation: company unionism, no temporary layoffs, synchronized annual contracts, seniority‐based wages, and the bonus system. Yet the labor relations in Korea have been turbulent for the last 15 years, with its strike intensity exceeding that of any industrialized country during most of that period. Why is labor so militant in South Korea? This research identifies two types of factors responsible for Korean labor militancy. First are sociopolitical factors: abrupt decontrol of labor relations in 1987 for which labor and management were and continue to be ill prepared, and the dominance of the age‐cohort of young, assertive workers in the workforce. The second factor is that Korean industrial policy and structure are shown to encourage union militancy as an unintended consequence.     

Trade,Investment and Economic Interdependence between South Korea and China*

The Korean economy has been significantly affected by the emergence of China. It is now the largest market for Korean exports and a major supplier of its low‐cost imports but has at the same time become a serious challenger to Korea in the world markets for manufacturing exports. This paper investigates changes in China's export structure and its effect on Korea, and bilateral trade between the two. It also examines the motives for Korean investment in China and its effect on bilateral trade and cross‐border production networks.     

Is volatility risk priced in the KOSPI 200 index options market?

The negative volatility risk premium is understood as a result for a hedging demand against market declines. Although this negative volatility risk premium is observed in most index options markets, there are some doubts about its presence in the KOSPI 200 index options market. The majority of KOSPI 200 index option holders do not possess any position in the underlying market; the composition of trading groups of the KOSPI 200 index options significantly differs from that of its underlying index; in this circumstance, the presence of a hedging demand is questionable. This study shows that volatility risk does not require a premium in the KOSPI 200 index options market. Rather, jump fears influence KOSPI 200 options. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:797–825, 2009     

Pre‐purchase and post‐purchase satisfaction and fashion involvement of female tennis wear consumers

This study examined the relationship among pre‐purchase and post‐purchase satisfaction and fashion involvement of women who participated in tennis. As women's activities in sports, including tennis, are growing, it is necessary to investigate their clothing needs in order to meet consumers’ needs. A final sample consisted of 124 women who attended a Cortec United States Tennis Association Women's Pro Tournament. The questionnaires were personally distributed and collected during the tournament. The theoretical base for this study was the Engel, Blackwell, and Miniard model on consumer decision making. There was a positive significant relationship between pre‐purchase satisfaction and post‐purchase satisfaction (P < 0.01). There was a positive significant relationship between pre‐purchase satisfaction and fashion involvement (P < 0.001). Also, there was a positive significant relationship between post‐purchase satisfaction and fashion involvement (P < 0.001). Comfort was identified as the most important clothing attribute and fit the second most important for women to achieve satisfaction before and after purchasing tennis apparel. Seventy‐two percent of the women indicated the need for improved fit of tennis wear. Women of all ages reported garment length as a problem for each garment type. Two major reasons for not purchasing tennis clothing were high prices and inappropriate sizes.     

Older consumers' Tv home shopping: Loneliness,parasocial interaction,and perceived convenience

This study examined factors that affect consumer satisfaction with TV shopping by investigating both convenience‐ and emotion‐related variables. Data were obtained from 295 online surveys with TV home shoppers who were 60 years and older. The structural model revealed (1) a positive effect of lack of shopping mobility on loneliness and perceived convenience of TV shopping, (2) a positive effect of loneliness on parasocial interaction, and (3) positive effects of parasocial interaction and perceived convenience on satisfaction with TV shopping. Results provide implications for TV shopping networks and producers. Parasocial interaction can be utilized to enhance the consumer experience by alleviating older consumers' loneliness, which ultimately leads to their satisfaction. Furthermore, convenience benefits of TV shopping can be emphasized to attract older consumers who have limited shopping mobility. © 2011 Wiley Periodicals, Inc.     

Home Bias in Emerging Bond and Stock Markets

In this paper, we empirically examine sizes and sources of home bias in both bond and equity markets for twenty emerging countries and twenty-two developed countries over the 2001-11 sample period. The average size of home bias in both bond and stock markets is found to be much larger in emerging countries than in developed countries. Using the explanatory variables in two categories of economic development and market performance, we employ dynamic panel data regression models to analyze major sources of home bias. The main results are the following: First, market performance factors generally affect home bias more strongly than do economic development factors. Second, market factors including market return, volatility, and liquidity support various hypotheses under informational asymmetries, such as return chasing, risk aversion, and flight to quality. Third, among macroeconomic factors, it is shown that real gross domestic product growth has negative effects and country leverage has positive effects on a specific home bias, backing up the size-bias and the flight-to-quality hypotheses, respectively. Finally, and perhaps most important in this paper, the effect of bond market performance on equity home bias is found to be significantly stronger than the effect of equity market performance on bond home bias from the market interaction model estimation, suggesting that a policy design needs to begin with increasing bond market efficiency to reduce equity market home bias.     

Shareholder Value Effects of Ethical Sourcing: Comparing Reactive and Proactive Initiatives

Journal of Business Ethics - With the advent of responsible business, ensuring social responsibility in sourcing is of interest to both academics and practitioners. In this study, we examine one...     

Regional Characteristics,Industry Agglomeration and Location Choice: Evidence from Japanese Manufacturing Investments in Korea*

Using extensive firm‐level data for the years 1998–2006, we analyze the regional location decision of Japanese manufacturing foreign direct investors in Korea by focusing on the role of agglomeration economies. Our logit estimates indicate that horizontal agglomeration matters in the location decision, but vertical agglomeration does not. Strong evidence of country‐of‐origin effects is found. Japanese foreign direct investments in high‐technology industries show a typical ‘follow‐the‐leader’ pattern, while those in the in low‐technology industries are influenced by regional endowments. In addition, Japan's high‐technology firms are likely to prefer urban locations so that they can enjoy the externalities of business services.     

Radiological findings of human fascioliasis

Fasciola hepatica is a trematode of herbivorous mammals. Humans are accidentally infected by the ingestion of water or raw aquatic vegetables contaminated with the metacercaria. Radiological findings of six patients with fascioliasis (five hepatic fascioliasis, one biliary fascioliasis) were analyzed. The diagnosis was based on serologic testing and/or histopathologic findings of eosinophilic abscess in five patients and identification of the adult worm in one patient. The characteristic radiological features of hepatic fascioliasis were (1) cluster of microabscesses arranged in tract-like fashion (burrow tract), (2) subcapsular location of the hepatic lesions, and (3) very slow evolution of the lesion on follow-up examinations. In biliary fascioliasis, there were multiple conglomerated filling defects in the common bile duct. The authors believe that the demonstration of these features, together with peripheral eosinophilia or eosinophilic aspirate from the hepatic lesion, is very helpful in making the correct diagnosis.     

Variable elasticity of substitution in urban housing production

The notion that the elasticity of substitution in urban housing production should vary with changing intensities of land use seems to be realistic and theoretically viable. Hence the variable elasticity of substitution production function has been proposed by some authors. However, it suffers from a serious shortcoming that the elasticity of substitution should not exceed unity. To allow for flexibility in the range of the elasticity of substitution, we explore a general functional form for the housing production function, the weak disposability of inputs production function in particular. Our empirical findings, based on the Santa Clara County single-family housing data, provide evidence that this general function is a more accurate specification of urban housing production than the variable elasticity of substitution function.