Selling trust in cyber space: social networking service (SNS) providers and social capital amongst netizens in South Korea

Abstract

Apart from excessive bonding amongst co-ethnics, social capital studies have sparsely discussed the negative effects of social capital, including excessive collective actions towards downward social mobility (e.g. imprisonment of social and political elites). As Bourdieu has noted, social capital can conflate problems of upward social mobility through various glass ceilings in the reproduction of elite power groups. However, it is also important to notice that less fortunate groups can debunk the dominant elite social network by participating excessively in social networking service (SNS) platforms, where they exchange distorted information about the elites to organize collective actions towards their downward social mobility. Gleaned from the recent cases of ferry sinking and candlelight vigilance in South Korea, SNS providers can sell trust in cyber space that can be easily transformed into social capital for collective character assassinations, political demonstrations, and economic sabotages at workplace. Based on the big data gathered from Naver, one of the leading SNS providers in South Korea, we find that Naver provides SNS users with a rare opportunity to encounter myriad opinion groups who will over time converge into one or two similar opinion groups that can be easily mobilized towards collective actions. Selling trust in cyber space on the internet and mobile devices is a unique commercial development in South Korea and its neighbouring countries, including Japan and Taiwan.     

SOCIAL SECURITY DEPENDENT BENEFITS,NET PAYROLL TAX,AND MARRIED WOMEN'S LABOR SUPPLY

This paper examines how Social Security dependent benefits impact the labor supply of married women aged 25–54. Specifically, I investigate whether the decrease in the rate of return to women's work discourages them from participating in the labor force by simulating expected net payroll tax rates and dependent benefits. Dependent benefits may reduce the net return to women's work, as they usually pay the full payroll tax without receiving marginal benefits for additional earnings if they claim benefits based on their husbands' earnings records. The results show that high net payroll tax rates reduce married women's work incentives, particularly those near retirement age. (JEL H24, H55, J22)     

LM cointegration tests allowing for an unknown number of breaks: implications for the forward rate unbiasedness hypothesis

This article extends the Lagrange multiplier (LM) cointegration test proposed by Westerlund and Edgerton (WE 2007) by allowing for an unknown number of breaks. Monte Carlo simulations provide two main results. First, a loss of power in the LM cointegration tests is detected when potential multiple breaks are ignored. Second, the modified testing procedures do not affect the asymptotic distribution and major properties of the tests of WE under the null, but noticeably increase their testing power in presence of multiple breaks. We also provide empirical applications of the proposed tests for the forward rate unbiasedness hypothesis (FRUH). The results reveal that the FRUH does hold when the effects of the multiple structural breaks are taken into account.     

Does bribery in the home country promote or dampen firm exports?

This study examines the impact of bribery within the home country on firm exports by developing two contrasting hypotheses. On the one hand, preferential treatment resulting from government officials in exchange for bribes may promote exports by enhancing efficiency and enabling bribing firms to better compete in foreign markets. On the other hand, preferential treatment resulting from bribes may decrease exports by providing firms with more established positions within the domestic market diminishing the incentive to explore foreign markets. Adopting the three‐stage least squares method, we test these competing arguments using a sample of firms operating within transition economies. We find that bribery within the home country decreases rather than increases firm exports. The implications of our findings are discussed. Copyright © 2013 John Wiley & Sons, Ltd.     

A Study on the KBS TV Drama Winter Sonata and its Impact on Korea's Hallyu Tourism Development

The purpose of this paper is to examine the ties between the success of a TV drama Winter Sonata, produced by the Korean Broadcasting System (KBS), and the flow of tourism into Korea. By deconstructing the Hallyu phenomenon, started in part by Winter Sonata, the study tries to determine possibilities for Korean tourism expansion. Literature reviews, tourism data, interviews with specialists, and actual pieces of feedback from Winter Sonata's Egyptian audience are referred to draw conclusions on the subject matter. Results show promising markets far beyond just Asia, touched by Hallyu, but not the opportunity to tour Korea yet. Suggestions are then made on how to help sustain Hallyu tourism and increase access to potential new travel markets, especially those in diverse Islamic regions around the world.     

Helpful Reviewers in TripAdvisor,an Online Travel Community

Online communities need a critical mass for communication, information, and entertainment and should provide useful information for their members in order to obtain this critical mass. The abundance of online travel reviews increases cognitive costs of travelers, and travelers use extrinsic cues to judge the quality of online reviews to eliminate costs associated with the information process. Of various cues used in online environments, this study examined an online reputation system in TripAdvisor.com and profiled the reviewers who post helpful reviews in the online travel community. The key findings include that helpful reviewers are those who travel more, actively post reviews, belong to any age and gender groups, and give lower hotel ratings. This study adds to research of online travel reviewers by characterizing helpful information creators among online content creators.     

A Modified Model for Hotel Website Functionality Evaluation

Harnessing a mathematical computation approach to analyze data solicited from 354 website stakeholders (including 200 hotel customers, 83 hotel managers, and 71 hotel website designers), this study presents an up-to-date and robust evaluation model for assessing the functionality of hotel websites. The modified model was also empirically used to assess the functionality performance of the websites of all the hotels in Hong Kong. Results from the non-parametric Kruskal–Wallis and Mann–Whitney tests revealed a difference in performance, with higher star rating hotels performing better than those with a lower star rating. As one of the first attempts to incorporate the perceptions of multiple website stakeholders into hotel website evaluation, this study provides hoteliers with practical advice on website development.     

Unsolicited Versus Solicited: Credit Ratings and Bond Yields

This paper is the first attempt to analyze Standard & Poor’s unsolicited and solicited ratings by using bond-yield data in Japan. Our findings show that there are differences in firm characteristics between firms seeking solicited ratings and those that receive unsolicited ratings. Firms with solicited ratings have less information asymmetry and are more likely to be owned by foreign investors, generate more revenue from exports, be cross-listed in the US, and have higher firm quality. But, firms with unsolicited ratings pay higher costs for debt, and their bond prices react more strongly to credit-rating changes. Yield spreads for new bonds with unsolicited ratings are higher than those with solicited ratings, because unsolicited ratings have higher information asymmetry, and investors therefore demand higher yields. We find that bond-price reactions to the announcements of unsolicited rating downgrades (upgrades) are negative (positive) and significant, while bond prices do not react significantly to solicited rating downgrades or upgrades.     

Profitable growth: Avoiding the ‘growth fetish’ in emerging markets

Growth management is a challenging but critical corporate strategy facing the fast economic growth in emerging markets. An overemphasis on growth would lead to the growth fetish, where growth is unqualified and seen as an end in itself. By examining the performance of 105,260 firms in key sectors of Brazil, Russia, India, and China (BRIC) from 2002 to 2011, this study presents quantitative evidence that supports a profit-oriented strategy as a more effective path to sustained profitable growth in emerging markets. To further support this argument, this study also provides qualitative evidence of a group of 70 sustained high-performing firms that are superior to their peers (the top 500 private companies in each of the BRIC countries) in terms of profit, growth, market share, and efficiency over a 10-year period. The study shows that sustained profitable growth requires qualified sales growth (i.e., organic growth), competence-based and competence-enhancing growth, and continuous product diversification.     

Effects of Knowledge Spillovers on Knowledge Production and Productivity Growth in Korean Manufacturing Firms

Using Korean firm‐level data, this paper studies the effects of knowledge spillovers on knowledge production and productivity growth. Data from 213 Korean firms for the years 1985 to 2007 are used, and the number of patent applications is used as a proxy variable for knowledge. The results show that all the growth rates of output, patents, and productivity are higher in high‐technology firms. Regression results show that the spillover effect on knowledge production and productivity growth is very significant, and that the spillover effect is larger in small firms than in large firms. Moreover, spillover effects on productivity growth are larger after 1995, when Korean intellectual property rights were strengthened. Our findings suggest that the effects of knowledge spillover on productivity are positively correlated with strong intellectual property rights.