Do socially responsible activities help hotels and casinos achieve their financial goals?

While the concept of corporate social responsibility (CSR) has gained much attention and is currently practiced by many companies, it has yet to be empirically examined in the context of hotels and casinos, especially in regard to the potential effects of CSR on firm value and performance. As the findings on the relationship between CSR and financial performance have been inconclusive and this relationship has been found to differ among industries, this study examines the relationship between CSR and firm value and profitability for hotels and casinos. Results of the Durbin–Wu–Hausman (DWH) test and a subsequent two-stage least square (2SLS) method show that hotel companies’ CSR has a simultaneous and positive relationship with financial performance. For casino companies, however, results show that CSR has no simultaneous or particular effect on financial performance. Findings suggest that hotel companies can confidently and strategically increase CSR investment to enhance both short-term (profitability) and long-term performance (firm value). Casino companies need to carefully examine the effects of CSR on financial performance, when making CSR-related decisions.     

Residents’ attitudes toward future tourism development in terms of community well-being and attachment

This study explores residents’ attitudes toward future tourism development based on their community well-being (CWB) and community attachment. Focusing on the case of Gamcheon Culture Village in Busan, South Korea, which was developed during an urban regeneration project in 2009, an exploratory factor analysis was conducted. The main findings of this study are: (1) CWB is supported by five variables including income effects, social participation, safety service, infrastructure service, and environmental effect; (2) not only does CWB influence community attachment but attachment also effects residents’ attitudes; and (3) the most effective variable of CWB is income effect, and safety service for community attachment. These results can help to provide effective strategies to encourage residents to have positive attitudes about further tourism development in a community-based tourism destination.     

Perceptions of determinants of job selection in the hospitality and tourism industry: The case of Korean university students

ABSTRACT

This study explores the key factors influencing potential employees in the hospitality and tourism industry and examines whether causal relationships between behavioral attitudes, subjective norms, and perceived behavioral control influence students' job selection. The study suggests that the career decision-making process is related to job selection. A total of 307 responses were analyzed. The results explain individual students' attitudes toward a behavior and perceived behavioral control in the context of their job selection. Attitudes toward a behavior and job selection had significant effects on career decisions. On the other hand, opinions of significant others had no significant effect. Perceived behaviors required to decide on jobs had a significant effect on job selection intentions. Students with internship experience were likely to form positive attitudes toward the hospitality and tourism industry, suggesting internships to be a useful source of a stronger relationship between the industry and job aptitudes of students in hospitality and tourism programs. The results have important implications.     

How does changing age distribution impact stock prices? a nonparametric approach

The original article to which this Erratum refers was published in Journal of Applied Econometrics 2009.     

China and the international relocation of world textile and clothing activity

Zusammenfassung China und die internationale Verlagerung der Textil- und Bekleidungsindustrie. - Die chinesischen Wirtschaftsreformen seit den sp?ten 70er Jahren haben das Wachstum des chinesischen Au\enhandels erheblich stimuliert. Chinas Exporte arbeitsintensiver Erzeugnisse wie Textilien und Bekleidung erlebten einen Aufschwung und bewirkten, da\ die fortgeschritteneren der asiatischen Entwick-lungsl?nder ihre Exporte schneller in Richtung auf weniger arbeitsintensive Produkte wie synthetische Garne, Stoffe und Fasern entwickelten. Auf diese Weise übt China einen Druck auf die strukturelle Anpassung der Textil- und Bekleidungsindustrien in den Industriel?ndern aus, und zwar direkt (am arbeitsintensiven Ende des Spektrums) und indirekt über die asiatischen Schwellenl?nder (deren übergang zu kapitalintensiveren Aktivit?ten beschleunigt wird). Parallel zu diesem Beitrag Chinas zum Anstieg des ostasiatischen Anteils am Weltexport von Textilien und Bekleidung l?uft sein Beitrag zur steigenden Vorherrschaft Ostasiens bei den Importen von unverarbeiteter Wolle und Baumwolle. In welchem Umfang China weiterhin in dieser Weise fortf?hrt - und dabei seine eigene Volkswirtschaft entwickelt und st?rkt -, h?ngt in hohem Ma\e von ?nderungen der Importbeschr?nkungspolitik in den Industriel?ndern ab.

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Résumé La Chine et la relocation internationale des activités mondiales en textile et habillement. - Les réformes en politique économique chinoise depuis les années soixante-dix ont stimulé le commerce extérieur chinois. Les exportations chinoises des produits manufacturés intensifs à la main d’∄uvre comme par exemple des produits finis de textile et de l’habillement ont prospéré considérablement poussant les pays développants asiatiques plus avancés d’exporter des biens moins intensifs à la main d’∄uvre comme p.e. les fils synthétiques, les tissus et les fibres. Ainsi la Chine exerce des pressions d’ajustement structurel sur les industries de textile et de l’habillement dans les pays industriels avancés d’une manière directe (à la fin du spectre où il y a des biens intensifs à la main d’∄uvre) et indirecte via les PNI asiatiques (où le développement envers des activités plus intensives aux capitaux est accéléré). En même temps la Chine contribue beaucoup à la dominance montante de l’Asie de l’Est en importations mondiaux du coton pur et de la laine. La mesure avec laquelle la Chine continue à contribuer en telles manières - et ainsi à développer et fortifier son économie propre - dépend fortement des changements des politiques d’importation restrictives dans les pays industriels.

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Resumen La China y la reubicación international de la industria textil y de la confección de prendas de vestir. - Las reformas de política económica realizadas desde fines de la década del setenta estimularon el comercio international de China. Sus exportaciones de manufacturas intensivas en mano de obra como ser las de textiles y confección crecieron pronunciadamente, dando motivo a los países más avanzados del Asia para modificar su estructura de exportación en dirección hacia productos de menor intensidad laboral como ser hilos, tejidos y fibras sintéticas. Con ello China ejerce presión sobre las industrias textiles y de confección de los países industriales avanzados, tanto en forma directa (en el lado del espectro con alta intensidad en mano de obra) como indirecta a través de los NICs asiáticos (cuyo énfasis en actividades intensivas en capital es fomentado), con el fin de lograr un reajuste estructural. Paralelamente a esta contribución de China al crecimiento de la participatión del Este asiático en las exportaciones mundiales de productos textiles y de confección, China contribuye al aumento de la importancia del Este asiático como importador de algodón natural y lana. La medida en la cual China continuará contribuyendo - y de esta mariera desarrollando y fortaleciendo su propia economía - depende ante todo de las politicas de importación restrictivas de los paises industriales.

     

Risk Management,Corporate Governance,and the Search for Long-Term Investors

This discussion explores a number of ways that more effective risk management, corporate governance, and communication with investors can help companies increase their effciency and long-run value. According to one of the panelists, recent surveys of corporate directors suggest that companies should devote more time and attention to three issues—strategy, risk management, and succession planning—and that strategy and risk are the “flipsides of the same coin.” As the panelist argues, “You can't talk about strategy without talking about what risks you're going to take—and what risks you decide to take has to depend on the core competencies that drive the corporate strategy.” In addition to making risk management a critical part of corporate strategy, another notable recommendation is to communicate a company's strategy and business plan as clearly as possible to investors, with the aim of attracting more sophisticated, long-term shareholders. Contrary to popular belief, such a group may well include some hedge funds and other activist shareholders. According to a newly released report on shareholder activism (produced and cited by another panelist), corporate boards should work harder to identify and engage the “largest 10 shareholders in the organization,” with the ultimate goal of cultivating a shareholder base that buys into the company's strategy.     

Corporate Hedging Policy and Equity Mispricing

We show that firms’ use of derivatives is negatively associated with stock mispricing. This result is consistent with the notion that hedging improves the transparency and predictability of firms’ cash flows resulting in less misvaluation. Furthermore, we show that the negative relationship between mispricing and hedging is particularly strong when market value is below fundamental value, which is consistent with prior evidence that hedging has a positive impact on firm valuation. Finally, we provide evidence that a “spread‐out” hedging policy that entails the use of a variety of derivative contracts can be more effective in reducing mispricing.     

Vacaciones y licencias en países desarrollados: los Estados Unidos a la zaga en cuanto a equilibrio entre vida profesional y vida familiar

Los autores comparan las normativas sobre vacaciones y licencias susceptibles de facilitar el equilibrio entre vida profesional y familiar de Australia, Canadá, República de Corea, Estados Unidos, Europa occidental y Japón utilizando un índice compuesto para clasificarlas. Los Estados Unidos figuran en último lugar: la concesión de vacaciones anuales al trabajador no es obligatoria y las licencias por motivos familiares se limitan a 12 semanas al año. Este bajo nivel de reglamentación podría deberse, según los autores, a una concepción mercantilista del empleo sumada a la creencia de que empleador y trabajadores tienen idéntica capacidad de negociación, visión no compartida por las demás democracias industrializadas.