The effects of appraisal review content on employees’ reactions and performance

Do appraisal reviews actually change employees’ subsequent performance? To answer this question, longitudinal analyses are required. Dorfman et al. (1986) and Nathan et al. (1991) performed longitudinal studies, to attain contradicting results. Apparently we need additional longitudinal studies. We analysed a data set collected from a Korean petrochemical company, and found that, even though each of the three measures of appraisal review content (i.e. the degree to which, during the appraisal review, (1) employees have opportunity to participate in discussion, (2) goals are clearly set and (3) career issues are discussed) was significantly related to the employees’ reactions to the review, none of them had a positive impact on the subsequent job performance. This result is consistent with the Dorfman et al.’s finding. Possible reasons for our result being different from Nathan et al.’s finding, limitations of our study and further studies required are discussed.     

Term structure estimation and pricing of callable Treasury bonds

This article describes a methodology of term structure estimation incorporating callable Treasury bonds using a bond-option valuation model. This article also examines whether some simple approximation of the option value suffice for providing a useful estimation procedure. The authors find that the errors in estimating the option value can generate significant errors for estimating the discount function. A call provision on a Treasury bond is not negligible at least our framework. This procedure is consistent with two aspects of the Treasury market. First, it provides the discount function that best determines the prices of observed Treasury securities, and second, it obtains a discount function that explains callable Treasuries.     

Are earnings announced early of higher quality?

This study examines whether the timing of annual earnings announcements is related to how promptly earnings incorporate value‐relevant information (timeliness in recognition), the extent to which earnings are managed (income smoothing) and the extent to which earnings are realized into operating cash flow (accruals quality). Based on Trueman ( 1990 ), we hypothesize that early announcers will have higher quality earnings. Our results, however, do not support these hypotheses. We find, instead, that late announcers have higher quality earnings and that earnings of late announcers recognize bad news on a more timelier basis than do earnings of early announcers.     

Supply-chain partnership performance

We model the strategic as well as the operational dimension of performance of supplier–retailer partnerships in terms of five factors: (1) information exchange; (2) trust; (3) joint partnership management; (4) relationship-specific assets; and (5) partner asymmetry. Our paired data are from 74 supplier–retailer partnerships in the consumer-packaged goods industry. As a result we found that the factors that best model strategic performance are different from those that best model operational performance. All companies are in Korea and the retailers include international companies like Carrefour, Tesco, and Wal-Mart while suppliers include Coca-Cola, Kimberley-Clark, and Nestlé.     

Linking Organizational Justice to Job Performance: Evidence from the Restaurant Industry in East Asia

This study examines the role of justice in a leader–subordinate dyadic relationship and the effect of the relationship quality on job performance in the restaurant industry. Based on the well-established framework of justice, the social exchange theory, and Confucian cultural background (collectivism) in East Asia, the study proposes and tests a model that attempts to understand a dynamic relationship among four dimensions of justice, two types of trust, and job performance. Using the data collected from restaurant employees in South Korea, the study finds that distributive justice and interactional justice are critical for nurturing an affect-based trust in East Asia.