Market liberalization and foreign equity portfolio selection in Korea

This study reports that before and after the complete opening of the Korean stock market, foreign equity portfolio selections deviate not only from the market portfolio but also from the portfolio held by domestic institutions. The divergence between foreign investors and domestic institutions is a finding different from that of a previous study on the Swedish market. This study also presents evidence consistent with the view that in the post-crisis deregulation period, foreign investors are most likely fundamental value investors with long-term investment horizons and well diversified portfolios, rather than short-term speculative stock-pickers.     

Input Controls,Input Substitution and Profit Maximisation in the English Channel Beam Trawl Fishery

Studies of input substitution in fisheries have tended to focus on substitution between physical inputs and/or time fished. However, input controls may create incentives for substitution of other inputs into the production process. For example, fishers faced with constraints on access to particular areas of the fishery may substitute physical inputs for fishing location. This was the case with the UK beam trawl fishery in the English Channel. Constraints were imposed on access to particular areas of the fishery through restrictions on engine power. This created incentives for a number of fishers to reduce their engine power to meet the conditions of the input control. The relative contribution of the boat inputs and location in the production process and the potential for substitution were examined using a translog production function. The results suggested that the apparent input substitution was consistent with profit maximising behaviour.     

THE EFFECT OF ANALYSTS' FORECASTS ON EARNINGS MANAGEMENT IN FINANCIAL INSTITUTIONS

I test a market consensus hypothesis about earnings management in the banking industry. This hypothesis states that when analysts have reached a consensus in their earnings forecasts, managers have an incentive to manage earnings through discretionary accruals to achieve market expectations. A sample of banks is partitioned based on the degree of forecaster consensus, and the behavior of one discretionary accrual, the loan loss provision, is predicted for each partition. The results suggest bank managers make greater use of the loan loss provision to manipulate earnings in a discretionary manner when analysts have reached a consensus in their earnings predictions.     

SDIs,tourism‐led growth and the empowerment of local communities in South Africa

Economic justice is the key aim of the tourism and/or agricultural development initiatives ‐ including the Wild Coast, Lubombo, Maputo, Coast2Coast and Okavango Upper Zambezi International Tourism SDIs. This article looks in more detail at the models and principles being adopted to achieve this in the tourism sectors of the SDIs, with particular reference to the Lubombo and Wild Coast initiatives. The article thus moves away from the general lessons learnt from international experiences to comprehensive guidelines for implementation and, towards the end, presents detailed checklists that can be used by practitioners of what the SDI technical team calls ‘empotourism’.     

The Impact of Origins of Reverse Technology Transfer on MNC Home‐Country Product Development

Reverse technology transfer (the transferring of multinational corporation [MNC] subsidiaries’ technological knowledge to their home country) deserves more executive attention since the source of competitive advantage of MNCs resides in their capabilities to leverage knowledge from different units across borders. This article examines three salient “origins” of reverse technology transfer—headquarters, local constituents, and subsidiary research and development (R&D) activity—and their impact on MNCs’ home‐country product development. We argue that reverse technology transfer from subsidiary R&D activity is more likely to have a positive impact on MNC home‐country product development than the other two origins because reverse transfer from local constituents requires high integration cost, and transfer from headquarters adds little technological novelty. We also develop two contingency hypotheses for the latter two origins to increase their likelihood of positive impacts on home‐country product development. Using a data set of 1,331 Taiwanese MNCs, our empirical evidence provides two important messages to managers: (1) a subsidiary whose technology mainly relies on its R&D would be an ideal target for reverse transfer; and (2) reverse transfer from local constituents and headquarters can be effective when they fit with an appropriate organizational mechanism, such as governance mode and absorptive capacity. © 2016 Wiley Periodicals, Inc.     

MEASURES OF INTERNATIONAL RELATIVE PRICES FOR CHINA AND THE USA

Abstract.  In this paper we assemble a measure of international relative prices to gauge the average amount by which prices in China and the USA differ from the prices of their trading partners. Our estimated weighted average of relative prices for China and the USA are the first to use the significantly revised purchasing power parities embodied in the price data from the World Bank's World Development Indicators. Our analysis reveals several findings of interest. First, interactions between the structure of trade and the levels of relative prices are sufficiently important to induce divergences between the weighted average of relative prices and conventional real effective exchange-rate indexes. Second, revisions embodied in World Development Indicators price data generally lower the estimate of US international relative prices. Third, net exports are inversely related to the estimate of US international relative price, but, for China, the correlation is positive. Estimating this correlation for other countries reveals no systematic pattern related to the level of development alone. Fourth, unlike previous work, using our price measures we find that an increase in US prices relative to Chinese prices raises the share of China's exports to the USA. Finally, there is a distinct possibility of eliminating the long-standing differential in income elasticities of US trade in empirical applications.     

Convergence of consumption patterns during macroeconomic transition: A model of demand in Ireland and the OECD

This study uses country-level panel data on consumption in Ireland and seven other OECD countries to examine the evolution of Irish consumption patterns as Ireland underwent rapid macroeconomic growth. Consumption levels obviously increased due to substantially higher incomes, but it is less clear how the shares of different types of goods purchased have changed or whether Ireland's consumption mix has converged with that of other high-income countries. Rankings based on a simple distance measure of consumption similarity suggest that Ireland moved from a “low-income” pattern similar to Portugal or Greece to a “high-income” pattern like that of Canada between 1995 and 2003. Using static and dynamic Almost Ideal Demand System models, we first estimate long- and short-run Irish price and income elasticities for nine categories of commodities between 1976 and 2003. These results provide evidence of substantial habit formation in aggregate consumption. We then estimate a long-run cross-country model covering six aggregate commodity groups between 1975 and 2003. The analysis shows that Ireland's demand parameters remain more similar to those of Greece than to higher-income OECD countries in the sample. Although Ireland has overtaken most other OECD countries in per capita income, it is still converging to a higher-income consumption pattern. We foresee further convergence of Irish expenditure patterns towards a pattern typical of high-income countries.     

The Scientometrics of Social Entrepreneurship and Its Establishment as an Academic Field

This paper provides an overview of the state of art of research on social entrepreneurship and the establishment of this topic in the academic world. It uses scientometric methods in measuring the maturity of social entrepreneurship research. The empirical part reveals the exponentially growing number of papers, the institutionalization of social entrepreneurship in seven dimensions, the emergence of thematic clusters, and methodological issues. The paper makes concrete suggestions on how to overcome methodological challenges. Furthermore, we provide a ranking of the 22 most cited academic contributions in social entrepreneurship. Surprisingly, almost half of the most cited papers have not been published in journals but in books, raising doubts about the current (over‐)rating of journal publications.     

The Korean Air nut rage scandal: Domestic versus international responses to a viral incident

This article investigates responses of the international and domestic (South Korean) publics to one of the most hotly debated corporate scandals in recent years: Korean Air’s so-called nut rage incident. By analyzing both international and domestic media coverage of the occurrence, we reveal contrasting interpretations between the two. Whereas the South Korean public tends to generate intense debates addressing a lack of ethics in Korean Air’s public communication following the incident, international public criticism is dominated by questions regarding South Korea’s chronic chaebol system and its negative image in relation to South Korea’s unique institutional context. Korean Air’s incongruent notice of the employee as a key stakeholder is also discussed in the international media. Our research findings indicate how, rather than focusing on legal responsibility, the normative attitude of businesses toward stakeholder pressures is crucial as a means of escaping legitimacy-threatening events. The results of this study demonstrate how public responses to a single incident are diverse in global society and offer new insights regarding the importance of ethics in management leadership and public communication after a crisis incident.     

伦敦商学院 经理的错觉

经理：为什么珍妮离职了？ 职员：她心情不好,已经好几个月了。 经理：我怎么没听她说起过？ 职员：她曾试图说。