Effects of rollover strategies and information stability on the performance measures in options markets: An examination of the KOSPI 200 index options market

One of the most widely used option valuation models among practitioners is the ad hoc Black–Scholes (AHBS) model. The main contribution of this study is methodological. We carefully consider two rollover strategies (nearest‐to‐next strategy and next‐to‐next) used in the AHBS model to investigate their effect on pricing errors. We suggest a new rollover strategy, next‐to‐next strategy, and demonstrate that our rollover strategy produces more consistent estimates between in‐sample market and model option prices. Probably even more important is that our new rollover strategy makes more accurate out‐of‐sample forecasts for 1‐day or 1‐week ahead prices. Prior literature has documented some anomalies associated with the use of AHBS model, for example, an overfitting problem. A secondary contribution is that our new rollover strategy does not suffer from this overfitting critique. Third, this study uses the mean square error for out‐of‐sample pricing and price changes to determine how the options investors are influenced by moneyness. The results indicate that underpricing (or overpricing) by the AHBS model for the near‐the‐money category is more likely to be maintained for the next several trading days but that such a phenomenon is disappeared for the deep out‐of‐the‐money category. Finally, we suggest the ratio of the number of option contracts to differences in strike prices available for trading between the current day and the previous day(s) as a good categorizing factor for options, such as moneyness. © 2011 Wiley Periodicals, Inc. Jrl Fut Mark     

Role of Intangible Assets in Foreign-Market Entry-Mode Decisions: A Longitudinal Study of American Lodging Firms

With the traditional research-based view approach to entry mode that examines the firm's strategies from its resource endowment and deployment (i.e., an inside-out view of the firm), which is different from the earlier paradigms (i.e., an outside-in view of the firm), this article investigates intangibles at the firm level and their impact on the choice of foreign-market entry mode to understand how to create value overseas. From the multinomial logistic regression analyses with data collected from the lodging industry between 1995 and 2005, the results of this study suggest that as marketing capital increases, entry mode seems to move from acquisition to joint venture to greenfield to contractual modes. In the case of employee efficiency, as human capital increases entry mode tends to move from joint venture to acquisition to greenfield to contractual modes, whereas in the case of top managers' efficiency, entry mode tends to move from joint venture to acquisition to contractual mode to greenfield, respectively.     

The role of family decision makers in festival tourism

This study assessed the role of family decision makers in participating in a festival according to five stages of festival participation. A survey process was conducted using two sampling groups: the sample for families with children and the sample for families without children. According to the results of the study, a number of marketing implications were generated. For example, the husband was revealed to more actively join transportation-related activities including driving, deciding travel routes, automobile safety checks, and filling up with gasoline. The wife was a strong decision maker in selecting restaurants or menus in the festival tourism management process. Likewise, the role of the wife is very significant, from suggesting the festival participation at the first stage to determining a revisit to the festival at the last stage. However, the children or joint decision-making patterns were not distinctive as they are said to be in other tourism literature. Findings of the study are expected to offer valuable insights for all festival stakeholders including festival vendors, local government, local residents, and festival organizers.     

The constraints of Chinese tourists to visit Korea caused by THAAD using Q-methodology

The recent deployment of the THAAD system to South Korea has resulted in complex and controversial issues, particularly in the political, diplomatic, and economic relations between Korea and China [Perlez, J. (2017, May 31). China woos South Korea’s new leader, but the U.S. left behind a spoiler. The New York Times. Retrieved from https://www.nytimes.com/2017/05/31/world/asia/china-south-korea-xi-jinping-moon-jaein-thaad.html?_r=0]. To minimize its negative impact on international tourism, the underlying psychological mechanisms of Chinese tourists associated with this complex political issue should be determined. As an attempt to resolve the current crisis, this study identified the subjective characteristics of Chinese tourists who cancelled visits to Korea using Q-methodology and classified Chinese tourists’ attitude towards the THAAD issue. Based on respondent’s evaluations on Q-sample statements, four types of Chinese tourists were articulated, namely, patriotism, risk awareness, external dependency, and Lotte sanctions. By delving into tourists’ subjectivity, Q-methodology seems powerful to elicit intrapersonal constraints, which are deeply embedded in an individual’s psychological state. The results showed that the THAAD issue greatly influenced Chinese tourists’ personal values, beliefs, and identities.     

An experiment on the role of tourist attribution: Evidence from negative nature-based incidents

More so than previously, in recent years tourists have been exposed to unexpected adverse situations, such as political instability, caused by the destination. Many aspects of the destination experience do not involve service delivery and product consumption; thus, such an experience needs to be treated uniquely. Acknowledging that the effects of tourists’ inner psychological processes in this context are crucial, this study applies attribution theory to examine how tourists make sense of negative incidents caused by the destination’s natural incidents. The results show the crucial effects of globality attribution in predicting the levels of satisfaction.     

Neighbour-Immiserizing Growth: The Asian Crisis

This paper investigates the effects of population growth and China's entry into the world trading regime on the North and the South. In the absence of the terms of trade effect, population growth reduces the standard of living and causes a decline in welfare. Unilateral trade liberalization of China will worsen the terms of trade for other countries in the South, but will improve those for the North. Thus, population control is an important means to close the gap in per capita income between developing and developed economies. Trade liberalization by developing countries may not necessarily induce income convergence. JEL Classification Number: F1.     

An acceptance model for an Internet protocol television service in Korea with prior experience as a moderator

This study examines the effect of users' prior experience on the adoption behaviour in the Internet protocol television (IP TV) service domains. This article proposes a new acceptance model for an IP TV service considering the moderating effect of experience and verifies the model with an empirical study. Respondents are classified into either experienced or inexperienced groups according to their prior experience with the IP TV service. The results indicate that motivational factors used in our study affect behavioural intention. In addition, this study shows that the influence of extrinsic motivational factors on the behavioural intention are stronger for the experienced group than the inexperienced group and the influence of intrinsic motivational factors on the behavioural intention are stronger for the inexperienced group than the experienced group. This article concludes with study implications, as well as limitations and future research directions.     

Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

Uncertainty in foreign policy making: A Bayesian game analysis of Korea

Bayesian games are used to analyze situations where at least one player is uncertain about the other's preferences. For the past decade or so, the Bayesian models have been rigorously applied to various aspects of international relations involving uncertainty. These models have contributed to our understanding of international relations by uncovering complicated strategic interactions through deductive reasoning and by generating many empirically testable hypotheses. Apart from these efforts for general theory developments, however, scholars rarely applied Bayesian models to analyze real‐world international events, although many of them involve situations where one or more players are uncertain about the other's preferences. Some of these events are interesting and important in their own right, given their potential impact on regional security and the amount of attention paid by scholars and politicians alike. Therefore, these cases warrant independent studies utilizing Bayesian models. In this paper, we have developed two Bayesian models for the changing relationships North Korea has with South Korea and the United States. We also discuss another interesting aspect of North‐South Korea‐United States relations where North Korea is simultaneously playing similar, but separate, games with South Korea and the United States.