Relative Importance of Major Job Performance Dimensions in Determining Supervisors' Overall Job Performance Ratings

This study explores the factor structure of job performance and each performance dimension's relative importance in determining supervisors' overall job performance ratings. We found that the optimal factor structure of job performance includes five dimensions: task performance, organizational citizenship behaviour directed toward the organization and individuals (OCB‐O and OCB‐I, respectively), and counterproductive work behaviour directed toward the organization and individuals (CWB‐O and CWB‐I, respectively). The percent‐based relative weight (%RW) is the highest for task performance in determining job performance, followed by OCB and CWB. Interestingly, the %RW of non‐task performance dimensions directed toward the organization (OCB‐O and CWB‐O) is similar to the %RW of task performance but greater than the %RW of non‐task performance dimensions directed toward individuals (OCB‐I and CWB‐I). Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Does executive compensation reflect corporate productivity?

Recent literature has given attention to the effect of CEO-specific productivity on the structure of CEO compensation. Our paper instead focuses on the effect of a different productivity factor—which we call “corporate productivity”—on CEO compensation. In particular, we show that corporate productivity affects the trade-off between incentive and risk in a non-monotonic fashion, which the literature has not yet recognized. Using various empirical proxies for corporate productivity, we show that our results are consistent with the non-monotonic relation and thus contribute to the debates in the incentive-risk trade-off literature. Second, our findings also contribute to the internal capital market literature by exploring the relation between the structure of CEO compensation and excess value.     

Mutual fund flows and fluctuations in credit and business cycles

Several measures of credit-market booms are known to precede downturns in real economic activity. We offer an early indicator for all known measures of credit booms. Our measure is based on intra-family flow shifts towards high-yield bond mutual funds. It predicts indicators such as growth in financial intermediary balance sheets, increase in shares of high-yield bond issuers, and downturns of various measures of credit spreads. It also directly predicts the business cycle by positively predicting GDP growth and negatively predicting unemployment. Our results provide support for the investor demand-based narrative of credit cycles and can be useful for policymakers.     

Proxy issue proposals: impact of the 1992 SEC proxy reforms

This article assesses the impact of the 1992 SEC reforms thatenhanced the ability of shareholders to communicate during aproxy contest. Utilizing a sample of 361 shareholder-sponsoredcorporate governance issue proposals from 1991 to 1995, thearticle finds that the mean percentage of total outstandingvotes cast in favor of an issue proposal declined significantlypostreform. As explanation, the article furnishes evidence thatcertain sponsors interested in their own private agenda ratherthan general shareholder welfare exploited more fully the proxymechanism postreform; controlling for the composition of sponsors,the proxy reforms generated no significant change in the for-voteoutcome of issue proposals. The article concludes instead thatthe reforms resulted in a shift in the composition of issueproposal targets toward companies relatively less vulnerableto such proposals prereform.     

Culture and the Star-Power Strategy: Comparing American and Korean Response to Celebrity-Endorsed Advertising

ABSTRACT

Given the wide interest in celebrity endorsements in advertising, it is surprising that there are no quantitative cross-cultural studies on their effectiveness across target audiences. Previous content-analytic research makes assumptions about effectiveness, but has not examined these assumptions. Our article fills this gap by comparing American versus Korean student samples’ response to celebrity-endorsed ads. We find these cultures diverge in purchase intentions after viewing celebrity-endorsed ads. We also find the emphasis of intuitive moral domains drives purchase intentions. Our discussion focuses on marketing implications as well as outlining future directions for this surprisingly underexplored research area.     

Bounding endogenous regressor coefficients using moment inequalities and generalized instruments

The main approach to deal with regressor endogeneity is instrumental variable estimator (IVE), where an instrumental variable (IV) m is required to be uncorrelated to the regression model error term u (COR(m,u)=0) and correlated to the endogenous regressor. If COR(m,u)≠0 is likely, then m gets discarded. But even when COR(m,u)≠0, often one has a good idea on the sign of COR(m,u). This article shows how to make use of the sign information on COR(m,u) to obtain an one‐sided bound on the endogenous regressor coefficient, calling m a ‘generalized instrument’ or ‘generalized instrumental variable (GIV)’. If there are two GIV's m₁ and m₂, then a two‐sided bound or an improved one‐sided bound can be obtained. Our approach is simple, needing only IVE; no non‐parametrics, nor any ‘tuning constants’. Specifically, the usual IVE is carried out, and the only necessary modification is that the estimate for the endogenous regressor coefficient is interpreted as a lower/upper bound depending on the prior notion on the sign of COR(m,u) and some estimable moment. A real data application is done to Korean household data with two or more children to illustrate our approach for the issue of child quantity–quality trade‐off.     

Innovation and firm performance in Korea and China: a cross-context test of mainstream theories

We investigate the relationship between innovation and firm performance in two divergent emerging economy contexts: Korea and China. Mainstream innovation theories make disparate claims for how (1) intensity of innovation, (2) scope of innovation and (3) spillovers impact firm performance. Using a comparative institutionalist approach we hypothesise how these relationships apply to firms in Korea and China. Analysis of 897 firm–year data points over a 4-year period provides broad support for our hypotheses. Intensity of innovation (patent intensity) is a strong cross-contextual argument. Scope and spillover arguments appear to be more context-sensitive. Firms with innovation depth in specific technological fields enjoy better performance in Korea, while diversified innovation is more beneficial for firms in China. Spillovers have a stronger impact in Korea than China. The findings underline the importance of incorporating change in institutional context when developing policy and theory relating to firm innovation and performance in emerging economies.     

RMA and Strategic intelligence: The case of China and Japan

Two cases of China and Japan are compared in the two dimensions of strategic doctrine and the RMA program. China is disadvantaged in its general military capability; it cannot help but gain the initiative by striking first and doing the operation under a high degree of secrecy, mobility, accuracy in its concentration of firepower, and surprise. This is called the doctrine of “strategic attack” and the Chinese defense planning is called “strategic modernization.” On the other hand, the Japanese approach to RMA is called “Info‐RMA”. The Japanese basic defense strategy is a passive one and it is critical to protect the information infrastructure as Japanese territories might turn out to be the battlefield. Japan should be ready for the possibility that some pre‐RMA forces would employ asymmetrical means such as weapons of mass destruction (WMD), terrorism, or guerilla warfare. Self‐Defense Forces (SDF) also should be ready to accomplish diverse missions, such as rear‐area support for U.S. troops, as well as peacekeeping operations and disaster relief. It is ironic that the Chinese doctrine could not help but be aggressive to compensate for the weakness of strategic intelligence capability in comparison to the U.S. On the other hand, Japan could develop power‐projection capability under the name of strategic intelligence as a part of the Exclusively Defense‐Oriented Policy.     

SOCIO‐ECONOMIC STUDIES ON SUICIDE: A SURVEY

Abstract In this paper, we review economic theories and empirical studies on the socio‐economic aspects of suicide. Through our survey, we would like to emphasize the importance of studying suicide by employing a ‘rational’ approach that complements the medical perspective on suicide. We first introduce major economic theories of suicide and then present a summary of a variety of empirical studies from the socio‐economic perspective. To shed light on the mixed empirical evidence, we employ a meta‐regression method to investigate how the existing empirical results vary. We have identified a publication bias, not highlighted previously, in the existing literature with respect to several commonly employed socio‐economic factors. Several characteristics of existing studies have been identified as influencing the qualitative outcome. We then discuss the recent developments in economic studies on suicide, on the basis of the authors’ ongoing project on suicide. In the concluding section, we point out some issues for further studies.