Factors influencing social capital in rural tourism communities in South Korea

This study aimed to identify the factors influencing social capital as it affects community conflict management for community residents in rural tourism villages. An on-site survey consisting of self-administered questionnaires was conducted with residents of rural tourism communities. These self-administered surveys were obtained from 380 community residents in the study area. A factor-clustering method identified distinct segments: high social capital (52%) and low social capital (47.7%). The estimation of a binary logistic regression model determined the characteristics of community residents who were most likely to be associated with each type of social capital. Results indicated that fruit, vegetable and rice farmers who also operated farm-stay businesses and rural activity programmes for tourists had the most social. We suggest that certain types of government policy programmes are helpful for increasing social capital and managing community conflicts by means of involvement in the tourism business.     

Tourism's role in urban regeneration: examining the impact of environmental cues on emotion,satisfaction, loyalty,and support for Seoul's revitalized Cheonggyecheon stream district

This study explores the use of sustainable tourism as a tool for the regeneration and “greening” of urban areas. It is based on evidence from the revitalization of the Cheonggyecheon stream district in downtown Seoul, a process that emphasized nature conservation and recreational opportunities. The purpose of this study is to examine the impact of environmental cues on emotion, satisfaction, loyalty, and support for the revitalized Cheonggyecheon stream district by applying a stimulus–organism–response framework. We conducted an on-site survey on visitors to Cheonggyecheon during November 2010. The results indicated that environmental cues from the revitalization arouse positive emotions that lead to visitor satisfaction and loyalty, which, in turn, bring about strong support for the stream and further tourism development. Structure and ambiance affected both positive emotion and satisfaction. Visitors appreciated not only nature, but also man-made facilities (e.g. culture center, artificial waterfall, fountain, artwork, stepping stones, lighting, signage, and nightly laser show) that aroused positive emotion and satisfaction. A strong case is made for long-term and holistic planning to maintain the natural and man-made surroundings of Cheonggyecheon in order for it to remain popular with visitors and residents. Discussions and implications are drawn from the findings.     

Separating early-adopters from the majority: The case of Broadband Internet access in Korea

This paper examines key static determinants and dynamic diffusion processes to develop a diffusion model of network products from the case of rapid growth of Broadband Internet in Korea. In the competitive environment of shortening product life cycle, there have been few studies on the key factors affecting the rapid and dynamic diffusion of network products. This paper identifies that market and technological factors have had a great impact on the explosive diffusion speed, while government and socio-cultural factors moderately contributed to the rapid diffusion. This paper also explores the dynamic diffusion processes: diffusion for the early-adopter and diffusion for the majority. Finally, theoretical propositions are developed on the diffusion of innovation for network products and practical implications for expediting the diffusion of emerging technologies are discussed.     

Risk aversion in the expected and the nonexpected utility functions

If asset returns are i.i.d. over time, the preference parameter in the time additive von Neumann-Morgenstern expected utility is the risk aversion coefficient in the Epstein-Zin nonexpected utility. By distinguishing between risk aversion and intertemporal substitution, this article provides an explanation about the observed discrepancy in the empirical estimates of the risk aversion coefficient.     

The Korea-Vietnam trade and the bilateral exchange rate: Asymmetric evidence from commodity trade data

The contribution of the current article is to detect the asymmetric impact that exchange rate fluctuations have on Korea's trade with Vietnam. To this end, the nonlinear autoregressive distributed lag (NARDL) process is applied to export and import data disaggregated by 25 commodities. We uncover that the ups and downs of exchange rates have an asymmetric impact on some, though not all, types of Korea's commodities exported to and imported from Vietnam in both the long- and short-run.     

Tying in two-sided markets with heterogeneous advertising revenues and negative pricing

We offer a theory of anticompetitive tying in two-sided markets when below-cost or negative pricing is possible. With the coexistence of two consumer groups (one regarding tying and tied goods as complementary and the other as independent), a tying-good monopolist may face difficulties in extracting rent under separate sales and wish to use tying to directly capture the large advertising revenue created in the complementary segment. We uncover two distinct mechanisms by which tying raises monopoly profits but reduces social welfare. Our theory of tying can be applied to real-world antitrust law enforcement, such as the Google Android case.     

Auditors’ scepticism in response to audit committee oversight behaviour

We use two experiments and a survey to examine how audit committee (hereafter, AC) oversight behaviour, particularly AC sceptical attitude and proactive behaviour, affects auditor scepticism, and whether the influence is driven by the risk aspect of auditors’ assessment of AC oversight behaviour. We find that when ACs exercise insufficient scepticism, auditors (junior auditors, managers, and partners) perceive AC oversight as weak, and increase their scepticism. However, AC proactive behaviour does not significantly influence auditor scepticism. Our findings suggest auditors view weak AC oversight as a risk indicator and respond by exercising greater scepticism.     

Does venture capital investment enhance corporate innovation? Evidence from Korea

We examine whether venture capital (VC) investment enhances corporate innovation in Korea. Using a matched sample of 802 firms from 1998 to 2012, we find that after the first round of VC investment, VC-backed firms are more innovative than non-VC-backed firms. Our results suggest that the positive influence of VC investment largely comes from the ability of VC firms to reduce information asymmetry between investors and ventures: VC funds managed by independent venture capitalists significantly enhance corporate innovation, whereas those managed by governmental venture capitalists do not. Furthermore, this positive influence becomes more pronounced where there is greater information asymmetry. Finally, we show that funds with profit-based compensation structures are more likely to encourage corporate innovation than those with fee-based compensation structures.     

The impact of COVID-19 on consumer evaluation of authentic advertising messages

This study investigates the relationship between the COVID-19 threat and consumer evaluation of a product with authenticity appeals in advertisements. We propose that threatening situations like COVID-19 motivate consumers to lower their uncertainty and increase their preference for products with authentic advertising messages. Because individuals react differently to threatening environments according to their early-life experiences, commonly reflected in childhood socioeconomic status, we examined whether childhood socioeconomic status moderates the relationship between threat and consumer evaluation of authenticity in advertisements. First, secondary data from Google Trends provided empirical support for our predictions. In additional experimental studies, participants evaluated different target products in four studies that either manipulated (Studies 2 and 3) or measured (Studies 4 and 5) COVID-19 threat. Our results provide converging evidence that consumers positively evaluate products with authentic advertising messages under the COVID-19 threat. Consumers' motivation to lower their uncertainty underlies the effect of COVID-19 threat on their evaluation of authentic messages (Study 3). This attempt to reduce uncertainty is more likely to occur for consumers with relatively higher childhood socioeconomic status (Studies 4 and 5). These findings suggest that using authenticity appeals during a pandemic could effectively reduce consumers' perceived uncertainty and generate positive consumer evaluations.