Theory‐based approach to factors affecting ethical consumption

The main objective of this study is to introduce and validate a new model of ethical consumption intention with the aim of identifying salient factors that influence consumer's attitude and purchase intention towards ethical products. For this purpose, this study introduces an extended model of the theory of reasoned action, which embraces the emotional component (positive anticipated affection) and socially oriented value component (altruism), as predictors of ethical consumption attitude and intention. Using a questionnaire‐based survey, the data were collected from 343 respondents who had previously purchased ethical products. The result showed that ethical obligation, self‐identity and altruism were positively related to consumer attitude towards ethical consumption. Also, ethical obligation and altruism were found to positively influence ethical consumption intention. Further, attitude and positive‐anticipated affection positively affected ethical consumption intention.     

Investment Decisions,Debt Renegotiation Friction,and Agency Conflicts

This paper investigates how investment decisions are influenced by the possibility of debt renegotiation failure and shareholder–debtholder conflicts by extending the Sundaresan and Wang (2007) model. We find that the difference in investment thresholds due to agency conflicts decreases as shareholders’ bargaining power increases. We also show that as the probability of renegotiation friction is lower, the investment threshold is lower, which is consistent with the empirical result of Favara et al. (2017).     

Expectations and Macro-Housing Interactions in a Small Open Economy: Evidence from Korea

Open Economies Review - This paper studies the interaction between the housing sector and the macroeconomic environment in Korea. Besides serving as a typical small open economy, Korea provides an...     

When the going gets tough,ads become straightforward but multi-appealed: The influence of the recession on financial services advertising appeals

Although many scholars and researchers have contributed to the sizeable literature on the relationship between advertising and society, few have examined economic circumstances as a meaningful force shaping advertising. This study provides the empirical evidence that changes in economic conditions, the recession in particular, can transform advertising appeals. The analysis of 1488 financial services ads placed in two popular US magazines showed that the patterns of appeals have turned to direct assertive styles in the wake of the economic crisis of the period 2008–2009. At the same time, however, ads during this recession period have used a far wider variety of strategic and tactical appeals than those in pre-recession era.     

The interplay of culture and situational cues in consumers' brand evaluation

This research examines the effects of situational cues in consumers' brand evaluation; more importantly, this relationship is explored across the US and Korean cultures. The findings suggest that consumers prefer brands with personality traits that are congruent with the social situations. Furthermore, as predicted, this brand‐situation congruity, for which brand preference increases when the social situational cues are congruent vs. incongruent with the brand personality, is stronger among Korean vs. American subjects.     

Semiparametric tests of conditional moment restrictions under weak or partial identification

We propose two new semiparametric specification tests which test whether a vector of conditional moment conditions is satisfied for any vector of parameter values θ₀. Unlike most existing tests, our tests are asymptotically valid under weak and/or partial identification and can accommodate discontinuities in the conditional moment functions. Our tests are moreover consistent provided that identification is not too weak. We do not require the availability of a consistent first step estimator. Like Robinson [Robinson, Peter M., 1987. Asymptotically efficient estimation in the presence of heteroskedasticity of unknown form. Econometrica 55, 875–891] and many others in similar problems subsequently, we use k-nearest neighbor (knn) weights instead of kernel weights. The advantage of using knn weights is that local power is invariant to transformations of the instruments and that under strong point identification computation of the test statistic yields an efficient estimator of θ₀ as a byproduct.     

Consumer motivation for the decision to boycott: The social dilemma

This study suggests a rational framework to explain consumers’ decision to boycott. We proposed an instrumental boycott framework based on rational response to the offending behaviour of a target company. The hypotheses embedded within the research model are empirically evaluated. The data were collected by questionnaire survey, and structural equation modelling was utilized for data analysis. The results show that social factors (message credibility, expected overall participation and perceived boycott effectiveness) generate motivations for consumers’ boycott decisions. In addition, it is identified that these factors increase consumers’ perceived likelihood of boycott success. Further, it is also found that consumers' perceived likelihood of boycott success positively affect their boycott decision via the possibility of changing a target company's offending behavior and unwillingness to purchase the target company's products. The results of this study explain consumers’ instrumental boycott decision‐making process in terms of social dilemma. Further, this study provides practical contributions for understanding consumers’ rational boycott behaviour. Specific implications for marketing managers and boycott organizations are outlined in the general discussion. Suggestions for future research are also presented in the conclusion.     

The impact of the persian gulf crisis on the prices of LDCs' loans

The article employs the event-study methodology to examine the impact of the Persian Gulf Crisis on the prices of LDCs' loans. The main empirical findings are that the Gulf Crisis (1) had a significant impact on the loan prices of LDCs; (2) decreased the loan prices of LDCs with low oil reserves but increased the loan prices of LDCs with high oil reserves; (3) imposed a harsh constraint on the ability and willingness of the severely indebted LDCs to meet their debt obligations; (4) had a strong negative impact on the loan prices of low-income LDCs; and (5) produced large economic losses in LDCs with large remittances from the Middle East. The markets for LDC debt are efficient and responded to the crisis according to expectations. It is interesting to point out that most of the changes in the loan prices occurred during the time period that began with the invasion of Kuwait and ended with the allied forces' air attack.     

The Effects of the Method of Payment and the Type of Offer on Target Returns in Mergers and Tender Offers

This paper re-examines the effects of the method of payment and type of offer on target abnormal returns around the takeover announcement, controlling for the target firm's institutional ownership. Previous studies suggest the difference in announcement-period target returns between cash offers and stock exchange offers can be explained by the difference in capital gains tax liabilities of the target shareholders and/or the difference in the information effect of the method of payment. The empirical results indicate no relation between bid premiums (or target abnormal returns) and institutional ownership of the target firm in cash offers and a systematic difference in target returns between mergers and tender offers even after controlling for the method of payment. These results are inconsistent with both the tax hypothesis and the information effect hypothesis. The evidence suggests the likelihood of future competition might be higher in tender offers than in mergers.     

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.