Multinational banking and the international transmission of financial shocks: Evidence from foreign bank subsidiaries

Using bank-level data on 368 foreign subsidiaries of 68 multinational banks in 47 emerging economies during 1994–2008, we present consistent evidence that internal capital markets in multinational banking contribute to the transmission of financial shocks from parent banks to foreign subsidiaries. We find that internal capital markets transmit favorable and adverse shocks by affecting subsidiaries’ reliance on their own internal funds for lending. We also find that the transmission of financial shocks varies across types of shocks; is strongest among subsidiaries in Central and Eastern Europe, followed by Asia and Latin America; is global rather than regional; and becomes more conspicuous in recent years. We also explore various conditions under which the international transmission of financial shocks via internal capital markets in multinational banking is stronger, including the subsidiaries’ reliance on funds from their parent bank, the subsidiaries’ entry mode, and the capital account openness and banking market structure in host countries.     

Determinants of consumers’ intentions to use smartphones apps for flight ticket bookings

This study examines customers’ adoption and acceptance of smartphone apps to book their flight tickets. By integrating customers’ innovativeness, involvement and perceived trust as additional variables, this study extends the Unified Theory of Acceptance and Use of Technology (UTAUT) and proposes a theoretical model that includes seven explanatory variables of the customers’ behavioural intentions: performance expectancy, effort expectancy, social influence, facilitating conditions, customers’ innovativeness, customers’ involvement and perceived trust. Data were collected from 369 customers who had booked their flight tickets via smartphone apps and was further analysed by employing partial least squares (PLS). Findings suggest that performance expectancy, facilitating conditions, customer innovativeness and perceived trust are positive and significant determinants of customers’ intentions to book their flight tickets on smartphone apps. Accordingly, several important implications for academics and industry decision makers are formulated.     

Effective Post‐Signing Market Check or Window Dressing? The Role of Go‐Shop Provisions in M&A Transactions

This paper examines the use of go‐shop provisions in M&A. We find that go‐shop deals tend to have higher deal premiums and receive more competing bids while the length of the go‐shop period does not affect deal premium and competition. Also, deals are less likely to be completed when a go‐shop provision is included and when the go‐shop length is longer. However, go‐shops have no effect on the completion of high premium deals. We also find that the presence of a go‐shop provision leads to a positive market reaction to deal announcements. Overall, our findings support the proposition that go‐shops reflect the efforts of target managers to fulfill the Revlon duties in the form of a post‐signing market check, which is consistent with stewardship theory.     

Appeals in Korean Magazine Advertising: A Content Analysis and Cross-Cultural Comparison

This paper examines the economic, advertising industry, cultural, and product factors influencing the use of emotional and rational appeals in advertising for South Korea and the U.S. Content analysis of 600 Korean magazine advertisements shows that emotional appeals predominate in headlines, but rational appeals are more common overall and in the illustrations. Compared to results from 403 U.S. advertisements, Korean magazine advertising uses more emotional appeals, though differences vary across product types and executional method. Implications for advertising practice and future research are discussed.     

The role of co-managers in reducing flotation costs: Evidence from seasoned equity offerings

We examine the effect on expected flotation costs of including co-managers in the underwriting syndicate. We consider five components of SEO flotation costs: announcement returns, underpricing, the probability of withdrawals, offering delays, and underwriting spreads. The results show that the characteristics of co-managers participating in syndicates have significant effects on flotation costs, while the effect of the number of co-managers is largely insignificant. Our results are consistent with the notion that highly reputable underwriters and commercial banks serving as co-managers serve a certification role, reducing information asymmetries and, as a result, lowering SEO flotation costs.     

Implementing technology roadmapping with supplier selection for semiconductor manufacturing companies

The rapid pace of technological innovation in the semiconductor manufacturing industry has necessitated the acquisition of competitive advantage from strategic technology planning. The vital requisite for this is well-timed investment including the replacement of old equipment with advanced new equipment. In such investment, selecting the appropriate semiconductor manufacturing equipment from the appropriate supplier is a key factor for successful technology planning. Therefore, equipment supplier selection should be taken into account in the technology planning of semiconductor manufacturing companies. One of the most widely used tools for technology planning is the technology roadmap (TRM). However, conventional TRMs have not considered the task of supplier selection. To address this limitation, this study proposes an extended, four-layered TRM that adds the layer of equipment supplier to the conventional layers of market, product, and technology. The equipment suppliers to be included in the new layer are selected from the supplier portfolio matrix composed of two performance axes: supplier performance and equipment performance. The candidates of equipment suppliers are placed on the supplier portfolio matrix according to the values of two axes determined by evaluation using the analytic hierarchy process (AHP). The proposed TRM is expected to be useful for technology planning by adding a consideration for equipment supplier selection in semiconductor manufacturing companies.     

Social exchange approach,job satisfaction,and turnover intention in the airline industry

Service Business - This paper investigates the effects of social exchange relationships on job satisfaction and turnover intention in the airline industry. To this end, two constructs of social...