Revenue implication of auction value in <Emphasis Type="Italic">k</Emphasis>-price sealed-bid auctions: An experimental study

In this paper, we show that in a heterogeneous bidding community with predominantly risk-seeking bidders, third-price sealed-bid auctions yield higher revenue for the seller than first-price sealed-bid auctions when the auction value is low. Conversely, when the value of the auction is high, first-price sealed-bid auctions yield higher revenue for the seller than third-price sealed-bid auctions. Existing theoretical findings for a homogeneous group of risk-seeking individuals imply that third-price sealed-bid auctions should generate higher revenues for the seller than first-price sealed-bid auctions. Our results for low-value auctions agree but our results for high-value auctions do not agree with the existing findings. We discuss the implications of this discrepancy as a function of the shift in goal orientation from a win-focus to a value-focus as the value of the auction increases.

Macroeconomic effects of family business inheritance tax reduction: Evidence from South Korea

This study examines the macroeconomic effects of family business inheritance tax reduction in South Korea using a theoretical model that addresses the problem of a family member's occupational choice decision between being a worker and being an entrepreneur. In contrast with previous studies, the model considers the distribution of firm size. The effect of the reduction in the family business inheritance tax rate on the macroeconomy is positive in this model, whereas it is negative in a model in the literature that does not consider the distribution of firm size when addressing the occupational choice decision. Calibrated results obtained using data for South Korea show that a 50% reduction in the family business inheritance tax rate increases the total labour demand, total real investment, and total sales by 0.13%, 1.88%, and 0.15%, respectively.     

The cross‐cultural study of LMX and individual employee voice: The moderating role of conflict avoidance

This article examines the role of national culture, measured by conflict avoidance, on the relationship between leader–member exchange (LMX) and individual employee voice. Using data collected from automotive industry employees in the United States and Korea, the findings show that conflict avoidance is negatively related to employee voice and also moderates the relationship between LMX and employee voice in the Korean sample. In particular, the relationship between LMX and voice becomes less positive when conflict avoidance is high. On the other hand, conflict avoidance does not have a direct effect on employee voice as well as an interactive effect with LMX on employee voice in the U.S. sample. This study, therefore, highlights the importance of the national culture in the comparative study of employee voice.     

Does local political support influence financial markets? A study on the impact of job approval ratings of political representatives on local stock returns

Using data on job approval ratings of governors, U.S. senators, and the president, we find that firms located in states with high approval ratings outperform firms located in states with low approval ratings by .64% per month. Furthermore, this relationship is stronger when investors are actively involved in politics, when local politicians are closer to the center of political power, for small firms that have a larger proportion of local investors, and for financially strong areas where investors are ready to execute investments in local stocks. Overall, our study shows that investors’ political sentiment is important in determining stock returns.     

South Korea’s outward direct investment and its dyadic determinants: Foreign aid,bilateral treaty and economic diplomacy

This study investigates the factors that affect South Korean outward foreign direct investment (FDI) in developing countries. Most previous studies focus on monadic factors and do not consider how and to what extent bilateral relationships between South Korea and the host countries affect the investment decisions of Korean firms. The current study finds that interstate factors such as South Korea's international investment treaties with and official development assistance to host countries have positive effects on FDI to these countries, while presidential visits have strong and statistically significant effects on FDI only in countries located in non-Asian regions, especially the African continent. The findings suggest that the effects of bilateral relations on South Korea's FDI vary depending on the geographic location of the host country.     

Uncovered Interest Parity: Cross‐Sectional Evidence

Uncovered interest parity (UIP) is estimated for short‐term horizons from one month to 12 months using a large number of cross‐sectional bilateral exchange rates. In contrast to conventional time‐series UIP, cross‐sectional UIP is examined with a single‐equation estimation and panel regression model estimation. The exchange rates analyzed here include a broad spectrum of countries: developed, developing, low‐inflation, and high‐inflation countries. Based on the empirical evidence, there does not appear to be a well‐publicized UIP puzzle for cross‐sectional UIP, and the slope estimates remain largely between zero and one throughout the sample periods, with a few exceptions. Evidence of UIP is more clear for low inflation countries than for high inflation countries. As interest rate maturity becomes longer from one month to 12 months, the UIP relationship becomes weaker.     

Who shapes network neutrality policy debate? An examination of information subsidizers in the mainstream media and at Congressional and FCC hearings

Recognizing policy-making process as a communicative process, this study examines who has subsidized information relating to the net neutrality policy debate. Empirical data has been collected from net neutrality stories published in four national newspapers, as well as from hearings by Congress and the Federal Communications Commission (FCC), during the period of February 2004 through January 2009. Study findings reveal that corporate interests have played a significant role in subsidizing information on net neutrality, both to the public through the mainstream media and to legislators through Congressional hearings. Furthermore, study results show that experts played a larger role in defining net neutrality through the mainstream media and FCC hearings than they did through Congressional hearings. Finally, the role of advocacy group representatives was more apparent at Congressional hearings than via the other two available information channels.     

The Information Content of Productivity Measures: an International Comparison*

This study examines whether, and to what extent, productivity information is used by the market and whether it is useful as a predictive measure. To see if nationality has any bearing on these issues, we examine the information content of productivity measures in Japan, Korea and the United States. While correlations between security returns, productivity changes and unexpected earnings are not uniform across our sample countries, our findings suggest that productivity, as a performance metric, merits greater attention by financial managers and security analysts. The substitution of productivity in place of short-run earnings could very well be the key to enhanced performance in today's environment of global competition.     

Delivering effective performance feedback: The strengths-based approach

Performance feedback has significant potential to benefit employees in terms of individual and team performance. Moreover, effective performance feedback has the potential to enhance employee engagement, motivation, and job satisfaction. However, managers often are not comfortable giving performance feedback and such feedback, if improperly relayed, causes more harm than good. In this installment of HUMAN PERFORMANCE, we describe a shift from traditional weaknesses-based feedback (which relies on negative commentary focused on employees’ shortcomings) to the more constructive approach of strengths-based feedback (which relies on employee affirmation and encouragement). We explain why a strengths-based approach to performance feedback is superior to the weaknesses-centered approach, and offer nine research-based recommendations on how to deliver effective performance feedback employing a strengths-based method.     

Facilitating computer-supported meetings: A cumulative analysis in a multiple-criteria task environment

There have been many instances of the ineffective applications of new information technology. This article describes a program of enhancing the effectiveness of a new technology, Group Decision Support Systems (GDSS), through a series of studies which resulted in improvements in the technology itself as well as in how the technology is supported. Our approach emphasizes human facilitation and facilitative features embedded in the GDSS software.