The role of the temporary component in spot prices in the revision of expected future spot prices: Evidence from index futures quotes

It is frequently argued that foreign investors have extrapolative expectations due to their informational disadvantages. That is, in the absence of other sources of information, foreigners revise their expectations on the future price of a domestic stock more in line with its current price change than do domestic investors. In this study, we analytically show that foreigners might respond more to a price change because they pay relatively less attention to a temporary component in price—i.e. because they are more well‐informed. We confirm this hypothesis with a simple yet powerful test that is designed by the identification schemes arising directly from the nature of a temporary component and by the access to a direct measure of the investor's expectation, namely, the quote for futures contracts. After controlling for the temporary component effect and using the lead–lag relationship between the spot and futures markets, we show that foreign investors are indeed most well‐informed, whereas domestic individuals are at the other end with the most extrapolative expectations. Finally, domestic institutions are largely indistinguishable from foreigners but are noticeably different from domestic individuals.     

Encouraged,motivated and learning oriented for working creatively and successfully: a case of Korean workers in marketing communications

This study investigated and assessed organizational and motivational determinants in creative and successful marketing communications campaigns by analysing a sample of Korean workers. The study revealed the relative importance of organizational and motivational factors for campaign creativity and performance in marketing communications in Korean workplaces. The findings provide evidence that managerial encouragement is essential to Korean workers' intrinsic motivation for planning, learning orientation and creativity. The intrinsic motivation for planning in turn generally had a strong effect on their creativity, learning orientation and performance. Related implications are discussed for managers in marketing communications, where creativity may fall into the realm of the required aspects of the workers. From the findings it is implied that deliberately designed organizational means for enhancing creativity must be sought.     

Exchange Rate Changes and the Operating Performance of Multinationals

Using a sample of 261 US multinationals over the period 1984–2002, we examine the relation between exchange rate changes and the profitability of foreign operations. We find that the impact of exchange rate changes on foreign operations’ profitability is not statistically significant in the majority of industries. Furthermore, according to our variance components analysis, exchange rate changes explain less than 2% of the variation in foreign operations’ profitability for most industries. We also find that the impact of exchange rate changes on foreign operations’ profitability is generally weak for non‐US multinationals from Australia, Canada, Japan and the UK. Our evidence is consistent with the finding of prior studies that the impact of exchange rate changes on firm value is not significant for most multinationals.     

Creativity,job performance and their correlates: a comparison between nonprofit and profit-driven organizations

• This study explores a research model concerning creativity, job performance, and their correlates in the nonprofit organization setting. The findings of this study suggest that a set of differences in the areas of creativity, job performance, and their correlates exists between the marketers in nonprofit organizations and the marketers in profit-driven organizations. These findings reveal the need for contingency theories in this area, with emphasis centered on environmental differences. It is hoped that this study will draw the attention of many researchers toward topics concerning organizational creativity in the nonprofit organization setting.

Copyright © 2005 John Wiley & Sons, Ltd.     

Empirical Study of Management Consulting Success in Korea

An integration model of factors influencing the success of management consulting (MC) projects in proposed. The model posits that client organisational characteristics, competence of consultants, and consultation mode will be correlated with MC success, measured by efficiency and effectiveness of the projects. Nine hypotheses are proposed and empirically tested using data collected from the client staffs of 119 MC projects in 60 Korean firms. Analyses of the data using the multiple regression technique moderately supports the study's model. The major findings are that both client organisational characteristics (e.g., staff's commitment, and functional heterogeneity of client staffs) and consultation mode (e.g., specifics of goals, procedural standard, methodological compatibility) have a significant impact on the success of MC, particularly on its effectiveness. However, it was found that the competence of consultants is not significantly correlated with MC success. These findings are discussed and several implications are suggested.     

Effects of the current world recession on the welfare of children: The case of Korea

The remarkable growth of Korea's GNP during 1963–1978 was achieved through export-led industrialization. The accelerating rate of growth in labour-intensive export industries provided job opportunities to the growing labour force. However, during the last years of the 1970s the Korean economy experienced bottlenecks and strong inflationary pressures which eroded its export competitiveness. As a response to these problems, the government implemented stabilization and restructuring programmes which did not affect the expansion of social welfare programmes for the poor and the vulnerable.     

The Influence of a Family Business Climate and CEO–CFO Relationship Quality on Misreporting Conduct

This study answers Vazquez’s (J Bus Ethics 150(3):691–709, 2016) call for more research focused on the intersection between family firms and business ethics. We investigate two contextual factors potentially affecting the ethical reporting of chief financial officers (CFOs): a firm’s social ties to the controlling family and the CFOs’ perceived relationship quality with the CEO. We test our hypotheses by examining the financial reporting behavior of Chinese CFOs who work at (1) family or nonfamily businesses and in (2) private or public firms. Results of this study advance our understanding of social and contextual factors that may compromise CFOs' reporting behavior in family firms (Suh et al., J Bus Ethics, 2018, https://doi.org/10.1007/s10551-018-3982-3).  This research also suggests that failure to distinguish between public and private companies may bias the results of studies that examine family firms.

     

Measuring systemic risk: A factor-augmented correlated default approach

In this paper, we extend existing correlated default models for measuring systemic risk by proposing a model that incorporates an observable common factor that features conditional heteroscedasticity. The addition of the common factor helps to effectively capture realistic time-varying characteristics in individual asset return volatility as well as return correlations. We apply the model for large US financial institutions. The common factor proves its importance in explaining asset return dynamics and measuring systemic risk. We also apply the model in the context of systemic risk contribution analysis and show its applicability.     

Sequential internationalization,heterogeneous process and subsidiary roles: the case of Hyundai Motor Company*

This paper proposes a new conceptual model to better understand the internationalization process of firms, especially those from rapidly developing East Asian economies. The model is illustrated through a comprehensive analysis of the internationalization process of Hyundai Motor Company (HMC). A comparative case analysis of the development of HMC's five major foreign subsidiaries shows both capability building through sequential investment from the headquarters' perspective and heterogeneous development of operational knowledge at the subsidiary level. The research emphasizes the importance of the post-FDI phase of subsidiary development to the study of firm internationalization, and highlights the process of decision-making and learning as the key to understanding the sequence of investments in subsidiaries.     

A Combination Rule for Portfolio Selection with Transaction Costs

We propose a new portfolio rule for portfolio selection problems in the presence of transaction costs. The new portfolio rule is formed by combining an extant portfolio rule with the no‐rebalancing portfolio rule, which specifies the current portfolio weights before rebalancing as the desired portfolio weights. The new portfolio rule can be applied into most extant portfolio rules. Simulation and out‐of‐sample evidence show that the new portfolio rule can greatly improve portfolio performance, in comparison with the extant portfolio rules to be combined.