Balanced national development strategies: The construction of Innovation Cities in Korea

Korea has had a long tradition of centralized planning systems for national development. National spatial planning has played a crucial role in achieving the rapid economic growth and in stimulating the regional development that have been achieved over the last 40 years. However, as the national spatial planning has mainly been concerned with the creation of effective physical environments for economic development in certain areas, the concentration of political, economic and social activities has intensified in those areas, especially in the capital region. Despite the implementation of various policy measures, attempts to mitigate this concentration in the capital region have not been successful in achieving balanced national development.     

Lesser evil? Public opinion on regulating fake news in Japan,South Korea,and Thailand – A three-country comparison

This study quantitatively examines and compares public opinion on regulating fake news, and factors affecting the opinion in three Asian countries: Japan, South Korea, and Thailand. Based on the third-person effect, it is hypothesised that the perceived harm of fake news on society increases people's support for fake news regulation. In parallel, according to the lesser evil principle, it is also anticipated that people will be less supportive of regulating fake news if they are aware that there are other non-regulatory counter fake news solutions such as fact-checking. Using original survey data collected from the three countries (n = 5218) and multi-group SEM, it is found that while the first hypothesis holds for all three countries, the second one holds only for Japan and South Korea (the two mature democracies), but not for Thailand (the semi-democratic country). This finding implies that the lesser evil principle also applies in Asian countries, but only in mature democracies where freedom of speech is protected.     

Proud volunteers: the role of self- and vicarious-pride in promoting volunteering

This research examines the role of self- and vicarious-pride in eliciting divergent mindsets and behaviors toward volunteering. We propose that the congruent matching of self-pride (vicarious-pride) emotions with promotion (prevention) focus-framed messages increases the effectiveness of promoting volunteering behaviors. The positive “match-up” effects arise because self-pride elicits a competitive mindset, whereas vicarious-pride elicits a collaborative mindset toward volunteering. We test our predictions across three experimental studies using behavioral measures in different non-profit organizational settings. The findings contribute to research on the role of pride in prosocial consumer behavior by providing empirical evidence that self-pride and vicarious-pride lead to different mindsets and behavioral outcomes.     

An agency theory explanation of SEO underperformance: Evidence from dual-class firms

Using a sample of U.S. dual class companies, we empirically investigate the effects of the divergence between insiders’ voting and cash flow rights on market reaction to seasoned equity offerings (SEOs) and long-run stock performance following SEOs. We find that SEO announcement returns and long-run stock performance following SEOs are negatively related to measures of the divergence between insiders’ voting and cash flow rights. Our results support the view of agency theory as a plausible explanation of SEO underperformance. Misalignment of interests between insiders and outside shareholders can create managerial incentives to undertake value-destroying investments to extract private benefits, ultimately leading to a reduction in firm value.     

Destination food image and intention to eat destination foods: a view from Korea

Food image has begun to influence tourist behaviour, so understanding the food image of a destination is important. This study examined the relationships among destination food image, preference, and intention to eat destination foods. A total of 357 tourists in Korea participated in this study. The results of structural equation modelling confirmed empirically that image affected behavioural intention as it applied to food. Cognitive image had a stronger influence than affective image on preferences for destination foods and intention to eat destination foods. In addition, preference for destination foods predicted intention to eat destination foods. This study indicates that the cognitive image of destination foods should be identified and that image strengthened to increase tourists' intentions to eat destination foods. Marketing strategies should appeal to both authenticity and the unique cognitive image of destination foods as well as encourage tourists to experience destination foods and gain internal information.     

How Attitudes Toward Product Categories Drive Individual Brand Attitudes and Choice

Three experiments examine the role of attitudes toward the category to which a brand belongs in consumers’ attitudes toward individual brands. The core findings indicate that what consumers think generally about a category affects their evaluations of singular brands belonging to the category. Study 1 demonstrates that both consumers’ attitudes toward a category as well as their relative attitudes toward a brand versus intracategory competitors drive overall attitudes toward individual brands. Study 2 shows that manipulating attitudes toward a product category affects attitudes toward, and purchase intention of, individual brands belonging to that category. Study 3 demonstrates that more versus less favorably evaluated categories are more likely to exhibit brand positivity effects in judgments of singular brands. The results suggest the practical importance of measuring attitudes toward product categories, as well as the utility of marketing interventions aimed at the category level.     

Index options open interest and stock market returns

This study finds that the growth of index options open interest has a significant relation with future stock market returns. We propose a theoretical model that considers hedgers and informed traders in the options market and suggests that hedgers fully utilize options according to their expectations of future stock returns. The empirical results show that the growth of out-of-the-money call options open interest is significantly related with future stock market returns. These findings provide supporting evidence for our theoretical model.     

Generalized runs tests for the IID hypothesis

We provide a family of tests for the IID hypothesis based on generalized runs, powerful against unspecified alternatives, providing a useful complement to tests designed for specific alternatives, such as serial correlation, GARCH, or structural breaks. Our tests have appealing computational simplicity in that they do not require kernel density estimation, with the associated challenge of bandwidth selection. Simulations show levels close to nominal asymptotic levels. Our tests have power against both dependent and heterogeneous alternatives, as both theory and simulations demonstrate.     

Board Effectiveness and CEO Pay: Board Information Processing Capacity,Monitoring Complexity,and CEO Pay‐for‐Performance Sensitivity

We have developed an information processing theory of board effectiveness to examine board‐chief executive officers (CEOs) pay relations. We theorize that CEO pay reflects the information processing context of boards. Boards have limited information processing capacity and therefore prefer to use outcome‐based CEO pay when they have difficulty in processing information for monitoring their CEOs. Using a longitudinal sample of Standard and Poor's (S&P's) large‐, medium‐, and small‐cap manufacturing firms in the United States from 1998 through 2005, we found support for our theory. Large boards and boards in less complex monitoring contexts tend to link CEO pay less tightly to firm performance by providing less stock‐based incentives, and the tendency of large boards to decrease outcome‐based CEO pay is even greater when boards are not busy or when boards are in less complex monitoring contexts. © 2015 Wiley Periodicals, Inc.     

Market valuation of marketing alliances in East Asia: Korean evidence

This paper investigates firm value created by non-equity marketing alliance announcements of Korean listed firms in terms of stock price reactions to the announcements. We find evidence that on the Korean stock market, the announcements of marketing alliances produce significant positive abnormal returns, which reflect an increase in firm value, around the announcement date. This suggests that firm managers need to seek for various marketing alliances not only for an effective competition in competitive business environments but also for enhancement in shareholder wealth. The increase in firm value has inverse relationship with firm's size and growth opportunity. In particular, marketing alliances with firms based in G7-countries create greater firm value than ones with firms based in the home country. Our study provides investors, firm managers, and academics with valuable implications of an importance of marketing alliances for valuation of firms in other Asian countries as well as in Korea.