Crowding Out in a Dual Currency Regime? Digital Versus Fiat Currency

In this article, we analyze a dual currency regime with fiat currency and digital currency and investigate potential crowding-out effects of fiat currency or digital currency under the framework of the traditional monetary economic model. We find that crowding out occurs only under extreme assumptions, i.e., extremely high costs associated with the use (medium of exchange and store of value) of one currency and extremely low costs associated with the use of the other currency.     

Gender Differences in Financial Reporting Decision Making: Evidence from Accounting Conservatism

This paper investigates the effect of CFO gender on corporate financial reporting decision making. Focusing on firms that experience changes of CFO from male to female, the paper compares the firms' degree of accounting conservatism between pre‐ and post‐transition periods. We find that female CFOs are more conservative in their financial reporting. In addition, we find that the relation between CFO gender and conservatism varies with the level of various firm risks, including litigation risk, default risk, systematic risk, and CFO‐specific risk such as job security risk. We further find that the risk aversion of female CFOs is associated with less equity‐based compensation, lower firm risk, a higher tangibility level, and a lower dividend payout level. Overall, the study provides strong support for the notion that female CFOs are more risk averse than male CFOs, which leads female CFOs to adopt more conservative financial reporting policies.     

Evaluating participation in community-based tourism: a local perspective in Laos

This study aims to understand how local community members viewed and evaluated the success of a community-based tourism (CBT) project implemented in Laos. The study identified three distinctive groups according to levels of participation and responsibilities adopted, namely active participation, passive participation, and non-participation. The findings suggest that there are mixed perceptions and evaluations of equal participation among community members. The active participation group was mainly comprised of community leaders, exhibited high levels of participation, including in the decision-making process, and thus positively evaluated their participation and the success of the CBT project in their village. However, the great majority of community members were in the passive participation and non-participation groups, seldom participated in the project, and were sceptical of future CBT projects, as the current project appeared to be based on unequal participation from the very beginning.     

Firm growth patterns: Examining the associations with firm size and internationalization

Understanding the growth patterns of an industry is essential for establishing sustainable growth strategies. However, until recently little had been known about restaurant firm growth patterns. Thus, this study examined the growth patterns of restaurant firms in association with firm size class and internationalization, after controlling for total and long-term debt leverage, retained earnings, and growth opportunity. Overall, the results of this study showed that small restaurant firms grow faster than large restaurant firms but the growth rate decreases as firm size increases. Furthermore, the growth rate of large firms decreased more slowly than small firms. In terms of internationalization, this study found that as firm size increases, the growth rate of small international firms decreases more rapidly than that of small domestic firms. However, the growth rate of large international firms decreases more slowly than that of large domestic firms. These findings indicate the appropriateness of internationalization strategies for large restaurant firms but the inappropriateness of these strategies for small firms. More detailed results and discussion are also provided.     

Has the value of cash increased over time?

We document a dramatic increase in the market valuation of cash holdings of US firms from 1988 to 2013. The value of one dollar of cash has increased by $0.019 per year during the period, indicating that shareholders place more value on cash in recent years. We also find that the increasing trend in cash value is driven mainly by increases in institutional shareholdings and accounting conservatism. We further decompose cash change into cash flows from operation (CFO) and cash flows from investing and financing activities, and find that CFO is a significant driver of the increasing trend in cash value.     

The Effect of Personnel Characteristics in the Internal Accounting Control System on Discretionary Tax Accruals: Evidence from Korea

This study examines whether the characteristics of personnel in a firm's internal accounting control system (IACS) and auditor characteristics control managers’ discretionary behaviour for tax planning. The study uses a sample of 4210 firm‐year observations from 2006 to 2014. The results show that managers’ discretionary tax planning cannot be controlled when the personnel in charge of internal accounting control are at an optimum level or higher. On the other hand, when a CPA is included among the personnel, the manager's discretionary behaviour is somewhat controlled. Moreover, the results show that firms audited by a large accounting firm also control the manager's discretionary tax planning to some extent. Unlike previous studies that examine the effects of IACS on discretionary accruals mostly in terms of book income, this study's contribution is an examination of the effects of the characteristics of personnel in IACS on the relationship between discretionary book‐tax conformity accruals and discretionary book‐only accruals that can be used when the manager establishes a tax plan. Additionally, this study also provides indirect evidence that the characteristics of auditors and personnel in charge of internal accounting perform a monitoring role that controls the manager's opportunistic behaviour.     

Explaining post‐IPO venture performance through a knowledge‐based view typology

We extend the knowledge‐based view with a new typology and its application to post‐IPO firm performance. The typology categorizes knowledge development activity along the dimensions of familiarity (whether the firm has experience with the knowledge or it is new) and source (whether the firm creates it independently or with partners). We use this typology to determine direct and interaction effects of knowledge development activity on survival, RoA, and Tobin's q of newly public firms. Using a sample of 1,056 high‐technology manufacturing IPOs in 1990–2005, we find that focused, internal knowledge development correlates with higher performance. We also find a positive interaction effect in combining focused, internal and diversifying, alliance‐based knowledge development, and a negative interaction effect in combining diversifying, internal and alliance‐based knowledge development. Copyright © 2013 John Wiley & Sons, Ltd.     

How does the second-order learning process moderate the relationship between innovation inputs and outputs of large Korean firms?

We investigate how the second-order learning process moderates the relationship between innovation performance and two types of knowledge seeking behavior, namely exploration and exploitation. We reinvestigate the second-order learning process of the top 100 Korean firms from 1997 to 2007 by capturing CEO turnover, board turnover, and R&D alliances. We argue that the current findings about exploration and exploitation should be reclassified in terms of innovation input and output. We suggest that researchers investigate the organizational learning process to understand the link between innovation inputs and outputs. Our empirical results show that while innovation inputs are not related to exploratory outputs, the second-order learning process reshapes the relationship between both exploration/exploitation type innovation inputs and exploratory innovation outputs, and that the new focus of organizational learning process can refine current innovation literature.     

Surprising information,the MDH,and the relationship between volatility and trading volume

This paper explains the concept of surprising information with a sign effect. Employing the mixture of distribution hypothesis (MDH), this paper also theoretically demonstrates that the effect of surprising information on the relationship between volatility and trading volume contrasts with that of general information, and proposes a method to detect the unobservable surprising information. Furthermore, incorporating surprising information with a sign effect, this paper suggests an information-type switching GARCH-V model. Strong evidence in favor of the model specification over the standard GARCH models is based on empirical application with high frequency data, supporting the dependence of the relationship between volatility and trading volume on the type of information.