CREDIT POLICIES: LESSONS FROM JAPAN AND KOREA

The success of policy-based credit programs in Japan and theRepublic of Korea suggests that credit policy can be an effectiveinstrument for economic development. Why, then, have creditpolicies failed in so many countries, and what factors explaintheir relative success in Japan and Korea? Both economic and institutional factors appear to be importantin the success or failure of credit policies. Essential economicfactors include a reliance on the private sector, a bias towardindustrialization, an orientation toward export production,the encouragement of domestic competition, and a commitmentto price stability. Crucial institutional factors include extensiveand frequent consultation between government and the privatesector, effective monitoring systems, and, most important, aclear and credible plan for economic development. Although severalcountries have included one or more of these factors in theirprograms, the experience of Japan and Korea suggests that acomprehensive network combining all or most of these factorsmay be necessary for the successful implementation of creditpolicies.      

Relationship between innovativeness,quality, growth,profitability, and market value

The purpose of this study is to examine the relationship between innovativeness, quality, growth, profitability, and market value at the firm level. Building on concepts from a resource‐based view of a firm and organizational learning, innovation and quality literature, we propose the innovativeness–quality–performance model, which describes how a firm's capability to balance innovativeness with quality drives growth and profitability, and in turn drives superior market value. Results of structural equation models indicate that (1) innovativeness mediates the relationship between quality and growth, (2) quality mediates the relationship between innovativeness and profitability, (3) both innovativeness and quality have mediation effects on market value, and (4) both growth and profitability have mediation effects on market value. Implications for theories and practices are discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

The developmental path of networking capability of catch-up players in Korea's semiconductor industry

With respect to technological learning, networking and globalization, and the subsequent development of technological capability, this study examines the developmental path of catch-up players in Korea's semiconductor industry. It in particular deals with the important aspects of local and global networking of catch-up players accumulating technological capability. This paper also argues that networking capability plays a critical role in the development of the technological capability of catch-up players in developing countries, and that their networking patterns are changed along the global technological trajectory that they face. That is, on the basis of the Korean case analysis, this study reveals that global hierarchical networking with global leaders is provoked in the vertical cooperative phase when global mature technologies are involved in international technology transfer. Next, the quasi-global networking with overseas sister companies and their professionals is strengthened in the discordant phase when growing technologies are involved. Reciprocal networking with global players is encouraged in the strategic phase when emerging technologies are involved. In addition, this paper addresses the development path of other aspects of technological capability, i.e., production, investment, and innovation capability, of Korea's semiconductor players. Furthermore, it discusses the relevance of Korea's development path to other countries and firms.     

The generality of spurious predictability

Previous empirical work has documented significant predictability (non-zero cross autocorrelations) in short-term security returns. Extant theoretical papers have shown that these cross autocorrelations can arise due to partial impounding of information in securities whose returns are driven by a common factor. In this paper, we show that non-zero cross autocorrelation in security returns can arise under weaker conditions than is generally known. We demonstrate that the existence of cross autocorrelations crucially depends on the information structure of informed traders. Thus, a common factor in security returns is neither sufficient nor necessary. Any one of the following conditions on the information structure can generate non-zero cross autocorrelations:

(1) existence of an informed trader with information relevant to two securities;

(2) correlation in the signal of informed traders with information relevant to different securities; or

(3) correlation in uninformed trading.

These cross autocorrelations are then shown to be spurious. That is, traders without any private information cannot make positive trading profit by exploiting cross autocorrelations.     

Congestion Effects of Spatial Growth Restrictions: A Model and Empirical Analysis

The present study characterizes the congestion effect of spatially designated growth controls, such as greenbelt or urban growth boundaries. The developed model demonstrates that the congestion externality caused by a binding growth restriction can understate total welfare costs of the regulation but overstate the amount of welfare transfer from renters of urban land to landowners. This article also examines costs and benefits of different development options given a binding growth restriction, and shows that non-consideration of the congestion externality is likely to skew choice toward high-density development. To test the hypothesized regulatory effect, a pooled time-series and cross-sectional analysis is performed with the land price data from Seoul, Korea. The results offer evidence of the gradient-flattening effect of the greenbelt regulation in the study area.     

A hedonic price model for private properties in Hong Kong

A hedonic model is used to explore the effects of locational, structural, and neighborhood attributes on the price structure of private condominiums in Hong Kong. The regression results and the elasticities of housing attributes obtained from the Box-Cox analysis indicate that the valuation of a property is sensitive to changes in housing traits. Home buyers are rational and are willing (unwilling) to pay for desirable (undesirable) housing attributes and that the valuation of a property is market-driven in Hong Kong.     

Changes in executive compensation following an environmental shift: the role of top management team turnover

In this study we examine the changes in executive compensation at the top management team (TMT) level following an environmental shift. Using the context of deregulation in the airline industry, we find that: (1) a dramatic environmental change that heightens managerial discretion leads to greater pay level and performance sensitivity of TMT compensation; and (2) the greater the magnitude of turnover among TMT members following the environmental shift, the greater the compensation change. Copyright © 2007 John Wiley & Sons, Ltd.     

DUALISM IN JOB STABILITY OF THE KOREAN LABOUR MARKET: THE IMPACT OF THE 1997 FINANCIAL CRISIS

Abstract.  This paper measures the dynamic changes in job stability in the Korean labour market during the period between the 1997 financial crisis and the recovery. Drawing on the Korean Labor and Income Panel Study data, our empirical research shows that the sharp decline in job stability experienced by Korean workers during the 1997 financial crisis never bounced back to the previous level. The recovery process was much slower for irregular, short-tenured or less educated workers than the other comparison groups, aggravating the polarization of job stability.     

A Study of BYOD adoption from the lens of threat and coping appraisal of its security policy

Why would employees adopt bring your own device (BYOD)? Would employees feel risk-taking to perform their work by using their own devices? Would peer pressure and company policy help encourage their employees to BYOD and how? Using the Technology Threat Avoidance Theory (TTAT), we hypothesize the intention of adopting BYOD is due to the accessing of security policy by threat and coping appraisal. Moreover, we predict perceived usefulness, perceived ease of use, social influence, organizational commitment and job security are essential for formulating the adoption intention. In this study, 450 random employees were surveyed on their adoption perception of BYOD in their respective companies. The results support most of our hypotheses. We uncover perceived cost and privacy protection within the TTAT framework reflect no significance while organizational commitment and job security posit the strongest influences on employees’ BYOD adoption intention. This finding suggested that in order to roll out a successful and sustainable adoption intention on BYOD, organizations must consider measurements to build up employees’ job security as well as generate a strong sense of organization commitment. Specifically, our analyses show adoption intention is also affected by gender, age, and education level.