Spin-off performance: A case of overstated expectations?

While the impact of divestitures on parent firms has been extensively studied, little attention has been given to the performance of the divested units. Previous research has found that spin-offs and sell-offs were associated with significant positive cumulative abnormal returns. However, these studies have not identified whether these benefits were expected to accrue to the divesting firm, the divested unit, or both. Specifically, this study examined the performance as autonomous firms of a sample of 51 voluntary spin-offs by nonfinancial firms across a 6-year period. Three accounting and financial market measures were tracked from 2 years prior to divestiture through the first three years of independence. No change in pre- and post-spin-off performances was observed except for the decline in profitability return on assets (ROA). The effect of relatedness between the parent company and the spinoff was also examined. Divested units which were unrelated to their parents prior to spinoff reported deterioration in performance. Implications for divestiture and restructuring programs are developed.     

Meaningful Measures of the Current Account

Since the conventional current account uses cash-flow accounting, it is potentially devoid of economic meaning. Assessing foreign assets at market values and including expected transfers from abroad, this paper reports two measures of the external surplus that are grounded in economic theory. The first measure is the aggregate generational current account, annual differences in the sum of net foreign assets across all current and future generations. The second measure is the generational profile of net foreign assets in a benchmark year. These ideas are implemented with data from Korea.     

Creating New Relationships Through Tourism: A Qualitative Analysis of Tourist Motivations of Older Individuals in Japan

The current study is an exploration to examine older Japanese individuals’ motivations for travel. The study employed an open-ended survey and in-depth interviews in order to gain insight into the creation of human relationships through tourism. Our results show that tourism is perceived as offering extraordinary opportunities to meet new people, and to form and develop new relationships by Japanese older individuals, who experience fewer opportunities to interact with other people in their everyday lives compared to individuals in younger generations. In particular, distinct features of tourism settings, such as liminality and touristic communitas, allow older tourists to express themselves more freely by escaping from their existing relationships as well as from many social norms, hierarchies, and prohibitions.     

Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines

This paper examines the labor market impacts of the Philippine Dual Training System (DTS), a vocational training program that combines firm-based on-the-job training (OJT) and conventional institution-based training, using a recent survey that tracked graduates from DTS and regular institution-based programs. The estimation results using fuzzy regression discontinuity design show a significantly positive impact on the most recent monthly earnings. The impact significantly increases with the OJT intensity, measured by the number of hours a week in OJT. The above results imply that vocational training has to be aligned with actual production technologies and work practices to narrow skill gaps and create positive returns.     

Sectoral FTA gains,conflicts, and the role of interindustry factor mobility: Evidence from Korea's free trade agreement

Free trade agreements (FTAs) can ignite domestic conflicts between export- and import-competing industries over trade gains. However, if the factors of production, such as capital and labour, move freely across industries, the returns to factor owners will quickly converge. Then, sectoral conflicts over FTAs will be less likely to arise. We analyse the case of South Korea's FTAs to measure (a) sectoral FTA gains and (b) interindustry factor mobility and to examine (c) the role of interindustry factor mobility in mitigating sectoral conflicts over trade policies. South Korea is an ideal case study due to the low barriers to domestic geographic mobility and high trade dependence. Based on data on its trade with 252 countries and factor returns between 2002 and 2017, we find that export industries did not gain much from the FTAs, while the import-competing agricultural sector was the winner. Sectoral conflicts greatly decreased over 2008–2010. Interindustry capital mobility plays a significant role in weakening the sectoral conflicts, while the impact of interindustry labour mobility is limited.     

Identifying critical success factors for the agri-food cold chain's sustainable development: When the strategy system comes into play

With serious environmental, cost, and social concerns arising from emerging countries' rapid growth in agricultural food cold chain (AFCC), AFCC firms urgently require a set of comprehensive sustainable strategic solutions. Therefore, this research identified and modeled the critical success factors (CSFs) that support the sustainable development of AFCCs. The study integrated institutional theory, stakeholder theory, and the triple bottom line model; it also surveyed cold chain experts from 16 different organizations in China and applied the adversarial interpretation structure model (AISM). This comprehensive analysis indicates that managing stakeholder pressure is the most motivating CSF of all strategies. This strategy eventually contributes to the sustainability of AFCC in China by driving other CSFs. Additionally, the study determined the degree of interdependence and dominance of different strategies. Thus, this study establishes a theoretical foundation for the sustainable improvement of AFCC organizations' business strategies and environmental policies.