Does history repeat itself? Economic development and policy convergence in Vietnam and South Korea

With one of the world's fastest rates of economic growth since the 1990s, Vietnam could be seen as Asia's next tiger economy. This study examines whether there has been policy convergence between the older East Asian developmental state model of economic development and that adopted by Vietnam. The economic development trajectories of South Korea and Vietnam are compared to identify similarities and differences. It was found that while policy convergence is evident there is also some divergence between the two countries.     

Effects of art in retail environments

Artworks have been introduced to retail environments outside of the art gallery and museum setting, with the assumption that art can transfer everyday consumption experiences into special and memorable ones. However, the question on the effectiveness of the placement of artwork in retail environments in influencing consumers’ behaviors and experiences has not been addressed. Using the Sacred Heart sculpture by Jeff Koons, we conduct two studies to test the influence of art on an individual’s behavioral intention to visit a restaurant and expected experience of food consumption. Study 1 corroborates that the effect of attitudes toward an artwork on behavioral intentions is amplified when consumers’ art knowledge and levels of openness to experience are low, indicating that consumers who lack art appraisal skills are likely to be dependent on their attitude toward art. Study 2 examines the mediating roles of attitudes toward an artwork and an artist by manipulating art attractiveness and artist information as the sources of esthetic perceptions. The artist information serves as the factor boosting the effect of art attractiveness on the behavioral intention through the mediation of attitudes toward the artwork and the artist. Results show that how consumers perceive an artwork, namely artistic processing in a retail environment, is powerful in leading them to enter a store and have desirable consumption experiences. Retailers can also enhance consumer experience by selecting artworks based on target consumers’ level of art knowledge and openness to experience.     

Political Economy of International Policy on the Transfer of Environmentally Sound Technologies in Global Climate Change Regime

Global governance on climate change has embraced the transfer of environmentally sound technologies as a crucial means of implementation to meet mitigation and adaptation. During the negotiation toward the Paris Agreement that replaced the Kyoto Protocol under the United Nations Framework Convention on Climate Change, the negotiation on technology development and transfer experienced contestation between developed and developing countries over policy direction and options. Under this context, why, in which policy options, and how developed and developing countries have clashed have not been fully explored yet in the issue area of climate change. This paper attempts to unpack the negotiations over technology development and transfer as a part of the Paris Agreement by three dimensions of marketisation, privatisation, and de-regulatory approach on the theoretical ground of discursive contestation between neo-liberalism and structuralism. This research, revealing the ground and the range of stretched contestant policy options, will provide a means to discern whether policies and modalities to be adopted to implement the Paris Agreement are skewed toward developed countries or developing countries.     

Performance Implications of MNEs' Diversification Strategies and Institutional Distance

By proposing a conceptual outline for a general model that explains the link between multinational enterprises' (MNEs') diversification and their performance, this study tests the moderating effects of institutional distance empirically. Integrating literature from a strategic perspective within international business research, the proposed integrated, multidimensional framework can analyze MNEs' product diversification, international diversification, and institutional distance, as well as the impacts of these elements on firm performance. A sample of Fortune Global 500 companies confirms this moderation and extends prior research by establishing the importance of relationships among MNEs' product and international diversification, institutional distance, and performance. © 2012 Wiley Periodicals, Inc.     

Stock Market Response to the Financial Regulations in the Mortgage‐Lending Market in Korea

This study investigates the economic impact of the financial regulations that aimed to control the housing market in Korea during the reign of late President Ro's Administration, which had diligently fought against the then speculative bubble in the Korean real‐estate market. We test for the validity of the general prediction that the financial regulations in the form of the loan‐to‐value (LTV) and debt‐to‐income (DTI) restrictions would have adverse impacts on the value of the firms operating in the mortgage‐lending industry. In this event study, we select two critical days as event dates and check whether the stock prices of the financial firms react negatively to the announcements of the regulations. Overall, the initial imposition of the DTI restrictions (i.e., the first event) adversely affects those banks that possess a relatively large number of mortgage loans in their asset portfolio. By contrast, banks that hold a small number of mortgage loans appear to benefit from the risk‐reducing effect of the DTI regulation. Subsequently, the reinforcement of the LTV and DTI rules (i.e., the second event) has negative impacts on the banks with large mortgage loans. The degree of this adverse effect is greater in the second event than in the first event (i.e., the DTI restrictions). The reinforced regulations also unfavorably affect the savings banks with large mortgage loans but to a lesser degree compared with their counterparts in the banks. Meanwhile, the reinforcement of the financial regulations has negligible impacts on the banks and the savings banks with smaller mortgage loans.     

Monetary policy spillovers and currency crisis in comparative perspective: East Asia before the 1997 crisis and Eastern Europe after tapering

This paper estimates the possibility of currency crisis in Eastern Europe that can be triggered by monetary policy change in the key currency countries, such as tapering measure. We examine the crisis possibility in the five Eastern European nations—the Czech Republic, Poland, Hungary, Bulgaria and Romania—by performing a comparative analysis with East Asian countries before the 1997 currency crisis. For the analysis, we estimate how much the exchange rate deviates from the estimated equilibrium exchange rate, as well as the synchronicity of currency value towards some of the key currencies by creating market pressure index. The results can be explained in two ways. First, the market pressure in the Eastern Europe after 2012 is smaller than they were in East Asia before 1997. The crisis possibility especially intensifies when more the exchange rate deviates from the equilibrium value. Second, the monetary policy change in the key currency countries does not greatly affect the crisis possibility in Eastern Europe when their local currencies have the strong synchronisation with euro. Therefore, Eastern European countries show strong synchronicity towards the euro, so the crisis possibility may be alleviated if the Eurozone continues its expansionary monetary policy.     

Reconnoitering relationships among value,trust, affect,and loyalty at association events

Meetings and conventions organized by associations are considered the most competitive industry segment due to the number of associations and their frequency of regular meetings and events. The success of association events may result from greater attendees' loyalty. This loyalty, in turn, may be determined by association event value they received from the event, trust in the association, and by feelings or affect elicited by the association. However, little research has been done on the value of attending an association event in relation to association trust and affect, leading to loyalty toward an association and association event. The purpose of this study is to investigate the relationship among “association event value,” “association trust,” “association affect,” and loyalty in the context of association events. The survey has been disseminated to those who had attended an association event no more than 1 year prior to taking the survey. Confirmatory factor analysis and structural equation modeling were used to test the hypotheses. The findings suggest that attendees' perceived value at an association event builds loyalty toward the association. In addition, association trust and affect mediate the relationship between value and loyalty toward the association.     

Audit Hours and Unit Audit Price of Industry Specialist Auditors: Evidence from Korea

Higher audit fees associated with auditor industry specialization could represent higher unit price charged by industry specialist auditors (ISAs) or the provision of a greater quantity of audit services. This study exploits a field setting in Korea, where the disclosure of audit hours is required in company annual reports, and finds that ISAs charge significantly higher total audit fees but also expend significantly greater audit hours than non‐ISAs. When audit fees and hours are considered together, the unit audit price of ISAs is significantly lower than that of non‐ISAs. This indicates that higher total audit fees associated with ISAs are likely to be attributable to greater audit hours associated with ISAs. However, greater audit hours for ISAs may suggest higher audit quality or may simply indicate that the additional audit work performed by ISAs is conducted by relatively cheaper junior auditors. Our work provides an alternative explanation for the higher total audit fees documented in the previous studies.     

The value of social presence in mobile communications

Texting via mobile devices is used as a primary means for day-to-day communications among an increasing number of consumers and, as a result of this trend, more companies are engaging with consumers and addressing service complaints using social media platforms, such as Facebook. This study addresses the use of two-way mobile texting via Facebook to resolve service complaints with applications from social presence theory. Research shows that marketers’ warm emotions are important in addressing service complaints, yet prior works mainly focus on the significance of human warmth in face-to-face contexts. Therefore, this study uses an experimental design to investigate the value of social presence in mobile texting as a means for providing service recovery. In triangulating the data, we use focus groups in confirmatory analysis. The findings show that social presence cues add human warmth to text messages with respect to two-way communication perceptions, control perceptions, responsiveness perceptions, satisfaction, attitudes, and repurchase intentions. The article concludes with a discussion of the importance of social presence cues in improving customers’ experiences and overall satisfaction.