Controlling portfolio skewness and kurtosis without directly optimizing third and fourth moments

In spite of their importance, third or higher moments of portfolio returns are often neglected in portfolio construction problems due to the computational difficulties associated with them. In this paper, we propose a new robust mean–variance approach that can control portfolio skewness and kurtosis without imposing higher moment terms. The key idea is that, if the uncertainty sets are properly constructed, robust portfolios based on the worst-case approach within the mean–variance setting favor skewness and penalize kurtosis.     

How User‐Created‐Content (UCC) Service Quality Influences User Satisfaction and Behaviour

The Internet is undergoing a gradual shift from Web 1.0‐based user interaction to Web 2.0, which has a greater emphasis on user‐created content (UCC) and user collaboration (Hsu & Hsu, 2008). Since existing models of e‐service quality are likely deficient under Web 2.0, we build on them and test a new framework using 319 users who frequented UCC websites. Among other findings, three service elements together explained 44% of the variance in user satisfaction and 33% of the variance in website usage. These elements were: the provider‐user relationship (customization and participation), the relationship among users (e.g., user empowerment), and user compensation. Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.     

Innovation shock,outsourcing strategy,and environmental performance: The roles of prior green innovation experience and knowledge inheritance

To investigate under what conditions an outsourcing strategy can show superior environmental performance, one stream of scholars has underscored the importance of prior green innovation experience, and another stream of scholars has underscored the importance of the in‐house possession of outsourced component knowledge. However, the empirical findings regarding the positive role of both scholarly streams when studied separately are mixed and sometimes contradictory. This study bridges these two distinct but related streams and suggests that prior green innovation experience and in‐house knowledge regarding outsourced components play a complementary role in enhancing environmental performance. The U.S. hybrid electric vehicle market lends support to the argument of this study. In so doing, this study increases our understanding of the role of prior green innovation experience and outsourced component knowledge on environmental performance while pursuing an outsourcing strategy. This study also provides guidance for managers and policymakers on how to achieve superior environmental performance in outsourcing.     

The effect of CEO compensation structure on the early internationalization of newly public firms

This study suggests the incentive perspective as an antecedent of early internationalization. We argue that early internationalization is a risky strategy for a CEO in a relatively young firm and that a potential agency problem arises between a CEO and shareholders in such a context. By drawing on agency theory, we theorize that the CEO compensation structure plays a critical role in the early internationalization decision. In a sample of 145 newly public U.S. firms, we find that the likelihood of early internationalization is negatively associated with the CEO’s secured cash pay and positively associated with the CEO’s equity-based compensation. In addition, we find that the positive association between equity-based compensation and the likelihood of early internationalization becomes stronger as the CEO’s tenure increases. These findings show that the interest alignment between a CEO and shareholders affects the strategic decision of early internationalization. Our study contributes to the literature on corporate governance and international business by underscoring the importance of the compensation structure as a significant driver of value-creating strategic initiatives and by identifying incentive factors that spur firms to internationalize early.     

Global mapping of scientific information exchange using altmetric data

Quality & Quantity - This study seeks to provide new insights into a hidden pattern in the cross-national scholarly network structure from an altmetric perspective. We investigate and visualize...     

Modeling tourists' visiting intentions toward ecofriendly destinations: Implications for sustainable tourism operators

The previous literature has overlooked the examination of tourists' visiting intentions for ecofriendly destinations. Hence, anchored in Schwartz (1992) personal values and the theory of planned behavior (TPB), the present study aims to develop a research model for application in Chinese settings. Survey findings from 467 tourists reveal significant positive relationships between tourists' values of resultant self‐transcendence and conservation and TPB factors (i.e., attitude, subjective norms, and perceived behavioral control), with the exception of the relationship between conservation and perceived behavioral control. Moreover, TPB factors and perceived green image were found to have positive effects on tourists' intentions to visit ecofriendly destinations. In addition, environmental consciousness positively moderates the relationships between the two Schwartz values and attitude. Theoretical implications are provided, and the study's findings have strategic practical implications for business managers. We acknowledge the study's limitations and offer research directions for future ecofriendly tourism scholars.     

Permanency of CSR Activities and Firm Value

So far overlooked by the international business ethics literature, we introduce, characterize, and normatively analyze the use of affective ties and networks in South Korea from an ethical point of view. Whereas the ethics of using Guanxi in China has been comprehensively discussed, Korean informal networks remain difficult to manage for firms in South Korea due to the absence of existing academic debate and research in this field. In this study, we concentrate mainly on the question of whether foreign firms will and can use affective ties in Korea. The informal social network forms are classified and contrasted with the conventional ethical approaches used in international business ethics (relativism, universalism, and social contract theory) to assess which categories can be regarded as ethical or unethical. Finally, foreign firms are advised how to cope with and use different affective network types. Although the nature of affective ties and networks in Korea differs from that found for instance in China (Guanxi), consistent with the conclusion of prior research, we recommend particularistic analysis and decision making regarding the circumstances in which to conclude affective ties and networks and when to opt out. We conclude that foreign firms in Korea should invest in establishing Inmaek, refrain from engaging in Yonjul, and support host country nationals’ Yongo ties. Moreover, it is suggested that foreign firms should find ways to monitor and manage informal ties effectively.     

Evaluation of the strategies and performance of low ROI market share leaders

This study examines the strategies of 41 businesses which are market share leaders, but have poor performance. Hypotheses are tested relating to market stability and product demand characteristics, as well as organizational commitments and competitive strategies.     

The Value-relevance of Earnings and Book Value, Ownership Structure, and Business Group Affiliation: Evidence From Korean Business Groups

Abstract:  We investigate the quality of two primary accounting summary measures, i.e., earnings and book value, provided by firms belonging to Korean business groups (chaebols). We find that the value-relevance of earnings and book value is significantly smaller for firms affiliated with business groups. We also find that cross-equity ownership (a proxy for the agency problem between controlling and minority shareholders) negatively affects value-relevance, while foreign equity ownership (a proxy for the monitoring effect) positively affects value-relevance. This evidence is consistent with the view that the poor quality of earnings and book value provided by chaebol-affiliated firms is due to the inherently poor governance structure of chaebols.