Dynamic interfeed substitution: implications for incorporating ethanol byproducts into feedlot rations

This study examines interfeed substitution with a focus on the relationship between distiller’s dried grain with solubles (DDGS) and traditional feed grains. The dynamic linear logit model is used for the empirical analysis of interfeed substitution. The estimation results reveal that an increase in livestock and poultry outputs reduces the relative shares of corn and soybean meal to DDGS. The estimated adjustment rate indicates that the demand for feed grains is responsive in the short run with about 37% of the long-run response. This study also finds that the demand for corn and soybean meal remains inelastic even in the long run, showing the possibilities that livestock and poultry producers face high feed costs in response to an increase in the prices of corn and soybean meal. The pressures on feed costs can be alleviated by the substitutable relationship between DDGS and corn, but the substitution of DDGS for corn has a potential to provide livestock and poultry with different nutritional contents.     

The indirect gaming contributions of cash and comped casino dining: Does providing complimentary meals pay off at the slots?

This study examined the relationship between gaming volume and restaurant revenue for paid and comped diners; i.e., diners for whom the meal was provided free, using data from two hotel casinos in different markets. The results of time series regression analysis revealed a significant and positive relationship between restaurant revenue and gaming volume in both markets. However, the gaming contribution of comped diners in terms of estimated incremental gaming revenue was much higher than that of cash diners in both markets. These findings confirm the ability of casino restaurants to attract gaming patrons and suggest that providing complimentary meals may be an effective tool to stimulate visits and generate gaming revenue.     

Payout policy and cash-flow uncertainty

The importance of cash-flow uncertainty in payout policy has received little attention in empirical studies, while survey studies such as [Lintner, J., 1956. Distribution of incomes of operations among dividends, retained earnings, and taxes. American Economic Review 46, 97–113.] and [Brav, A., Graham, J., Harvey C., Michaely, R., 2005. Payout policy in the 21st century. Journal of Financial Economics 77, 483–527.] indicate its importance. With worldwide firm-level data, we present evidence that cash-flow uncertainty is an important cross-sectional determinant of corporate payout policy. Our results show that across countries, cash-flow uncertainty, as proxied by stock return volatility, has a negative impact on the amount of dividends as well as the probability of paying dividends. The impact of cash-flow uncertainty on dividends is generally stronger than the impact of other potential determinants of payout policy—such as the earned/contributed capital mix, agency conflicts, and investment opportunities. We also find that the effect of cash-flow uncertainty on dividends is distinct from the effect of a firm's financial life-cycle stage.     

Does Air Pollution Affect Consumption Behavior? Evidence from Korean Retail Sales*

Using monthly regional panel data on air quality and large retail store sales in Korea, we empirically examine the effect of air pollution on retail sales. We account for regional heterogeneity in air pollution and control for various macroeconomic and climatic factors that can affect retail sales. We also use the air quality indicator in the west coastal islands (affected by trans‐border pollution but uncorrelated with the economic activity in the mainland) as an instrumental variable. The estimation results show that, in general, 1 additional day of PM₁₀ level higher than 80 μg/m³ reduces monthly retail sales by approximately 0.1 percent. Nonetheless, an adaptive pattern emerges over time, particularly when the level of air pollution in the previous month was severe.     

Exchange Rate Changes and the Operating Performance of Multinationals

Using a sample of 261 US multinationals over the period 1984–2002, we examine the relation between exchange rate changes and the profitability of foreign operations. We find that the impact of exchange rate changes on foreign operations’ profitability is not statistically significant in the majority of industries. Furthermore, according to our variance components analysis, exchange rate changes explain less than 2% of the variation in foreign operations’ profitability for most industries. We also find that the impact of exchange rate changes on foreign operations’ profitability is generally weak for non‐US multinationals from Australia, Canada, Japan and the UK. Our evidence is consistent with the finding of prior studies that the impact of exchange rate changes on firm value is not significant for most multinationals.     

Triple helix dynamics of South Korea’s innovation system: a network analysis of inter-regional technological collaborations

This study intends to unveil the current innovation landscape of South Korea in an attempt to examine the underlying patterns of inter-regional technology collaboration occurring at the triple helix level. Social network analysis techniques are used to quantify the structure of the four types of inter-provincial co-inventorship network between university, industry, and government (UIG). The findings confirm the declining centrality of Seoul as the primary research center with the emergence of new regional players such as Gyeonggi and Daejeon. However, they also reveal that these three main innovative regions have become strongly linked in recent years and constitute the core of the inter-regional collaboration networks. The poor linkage between the research core and the periphery, in turn, raises some concerns regarding the unfair geographical concentration of innovation resources and technology activities, hindering the synergy in the national and regional innovation systems. To create a dynamic innovative milieu for bolstering Korea’s national innovation system, therefore, interactive learning between the core and the periphery, as well as between the various UIG actors, must be further facilitated.     

A Combination Rule for Portfolio Selection with Transaction Costs

We propose a new portfolio rule for portfolio selection problems in the presence of transaction costs. The new portfolio rule is formed by combining an extant portfolio rule with the no‐rebalancing portfolio rule, which specifies the current portfolio weights before rebalancing as the desired portfolio weights. The new portfolio rule can be applied into most extant portfolio rules. Simulation and out‐of‐sample evidence show that the new portfolio rule can greatly improve portfolio performance, in comparison with the extant portfolio rules to be combined.     

Why do we adopt environmentally friendly lawn care? Evidence from do-it-yourself consumers

This study identifies the factors determining the purchase frequencies of organic/natural fertilizers (ONFs) with a focus on do-it-yourself (DIY) consumers’ perceptions and motives. The estimation results of the generalized ordered logit model provide statistical evidence that environmental perceptions are critical factors in directing DIY consumers to purchase ONFs frequently. The results imply that educational programmes, informational campaigns, or advertisements to improve their perceptions on the potential negative impacts of fertilization on the environment may increase the purchase frequencies of ONFs. In addition, the results show that DIY consumers perceive that it is worth using ONFs despite their higher prices than chemical fertilizers. Their purchase frequencies will increase if they positively perceive the values of ONFs and are willing to pay a premium for ONFs. Moreover, the purchasing behaviour of DIY consumers is associated with their perceptions of neighbourhood landscaping. If neighbours or homeowner associations encourage landscaping improvements in their community, DIY consumers may increase their purchase frequencies of ONFs accordingly.     

Sequential internationalization,heterogeneous process and subsidiary roles: the case of Hyundai Motor Company*

This paper proposes a new conceptual model to better understand the internationalization process of firms, especially those from rapidly developing East Asian economies. The model is illustrated through a comprehensive analysis of the internationalization process of Hyundai Motor Company (HMC). A comparative case analysis of the development of HMC's five major foreign subsidiaries shows both capability building through sequential investment from the headquarters' perspective and heterogeneous development of operational knowledge at the subsidiary level. The research emphasizes the importance of the post-FDI phase of subsidiary development to the study of firm internationalization, and highlights the process of decision-making and learning as the key to understanding the sequence of investments in subsidiaries.     

The role of primary processing in the supply risks of critical metals

This study seeks to understand the role of primary processing, i.e. the first post-mining stage, in supply risk, by means of a case study on three critical metals (neodymium, cobalt, and platinum) in the context of Japan. Applying the ‘footprint’ concept with a multiregional input–output model, we have quantified the direct and indirect vulnerability of the Japanese economy to such risks. Considering the supply risks associated with primary processors, we find that Japanese final consumers are exposed to relatively higher supply risks for neodymium as compared with cobalt and platinum. Our study shows that the primary processing stage of a metal’s supply chain may contribute significantly to the overall supply risks, suggesting that this stage should be taken into due account in understanding and mitigating supply-chain vulnerability through, e.g. supplier diversification and alternative material development.