What factors of early-stage innovative projects are likely to drive projects’ success? A longitudinal analysis of Korean entrepreneurial firms

Previous studies have identified the factors affecting successful technology commercialization as outcomes of R&D projects. However, most of them have used cross-sectional data, whereas there is a dearth of literature using longitudinal data analysis. Longitudinal analysis is essential for investigating the characteristics of early-stage innovative projects due to the inherent time lag between project evaluation and commercialization. Therefore, this study examines the early-stage project characteristics that can be used as meaningful evaluation criteria for predicting success, particularly in technology commercialization. We collected data on the ex-ante evaluation results and ex-post commercialization results of R&D projects pursued by entrepreneurial firms. We then conducted a logistic regression analysis and identified three market-related factors as significant in driving technology commercialization success in the early stages of technology development: market potential, commercialization plan, and market condition.     

Non‐competes,business dynamism,and concentration: Evidence from a Florida case study

Most research on non‐competes has focused on employees; here we study how non‐competes affect firm location choice, growth, and consequent regional concentration, using Florida's 1996 legislative change that eased restrictions on their enforcement. Difference‐in‐differences models show that following the change, establishments of large firms were more likely to enter Florida; they also created a greater proportion of jobs and increased their share of employment in the state. Entrepreneurs or establishments of small firms, in contrast, were less likely to enter Florida following the law change; they also created a smaller proportion of new jobs and decreased their share of employment. Consistent with these location and job creation dynamics, regional business concentration increased following the law change in Florida. Nationwide cross‐sections demonstrate consistent correlations between state‐level non‐compete enforcement and the location, employment, and concentration dynamics illustrated in Florida.     

Rank tests for price convergence in Australian beverage markets

This article examines the price convergence of beverage products within Australia in order to assess the efficacy of intranational cross-border movements of products under the Australia’s Mutual Recognition Agreement. Since the cointegrating relationship between product prices may not be exact or linear, we adopt the rank tests for analysis which do not require prior knowledge and specification of the linear or nonlinear functional form. Our results validate the price convergence of all beverage products within Australia, with the exception of a few regions in the milk market. Furthermore, a subset of the cointegration relationships exhibits nonlinear long-run price co-movements.     

Tax Avoidance,Near‐Future Earnings,and Resource Availability

This study examines the impact of near‐future earnings and resource availability on current‐year tax avoidance behavior from the perspective of both tax and non‐tax costs. Two conclusions are reached. First, when firms expect high‐earnings performance in the near future, they aggressively engage in current‐year tax planning to manage potential future tax and non‐tax costs. Second, firms that expect high‐resource availability in the near future put tax audit risks and resultant non‐tax costs on the front burner. Therefore, they are unlikely to undertake aggressive tax avoidance behavior.     

A network text analysis of published papers in service business, 2007–2017: research trends in the service sector

The service sector has become the most important part of the global economy. Thus, Service Business: An International Journal (SB) was launched in 2007 to deliver innovative studies that can provide resonating insights to researchers and practitioners in services. This study analyzed 311 articles published in SB during the past 10+ years (2007–2017) by conducting network text analysis (NTA). The published papers’ keywords link relations were analyzed to create network maps of research topics, ranging from traditional to emerging ideas of researchers. Influential research topics and their clusters were identified using centrality and community analyses. Research trends were identified for the first 5 years (Volume 1–5) and later years (Volume 6–11) separately through NTA. The results reveal interesting change in research topics over time. Common keywords of studies published in the first 5 years were: Service, Innovation, Customer, Strategy, Tourism, and Quality. The primary frequent keywords of articles published during 2012–2017 were: Customer, Quality, Satisfaction, Innovation, Mobile, and Technology. The results of the study shed valuable insights to the researchers and practitioners in the service sector. Applications of keyword network building and analysis methods provided in this study would be helpful to researchers who are interested in exploring trends of emerging new topics.     

Payday lending,crime, and bankruptcy: Is there a connection?

The payday lending industry has been the subject of controversy over the years. This is largely due to the high fee structure of payday loans and the view of some that the industry targets economically vulnerable groups. For these reasons, some states prohibit payday lending, while others impose regulatory restrictions on their operations. Despite the prohibitions and restrictions, the industry nonetheless serves a significant segment of the U.S. population. Our purpose is to determine whether in addition to providing loans to individuals, access to payday lenders is associated with less property crime and fewer bankruptcies. Using a unique data set obtained directly from all state regulatory authorities, we find evidence, contrary to some earlier studies, that the presence of payday lenders may help reduce property crime as well as personal bankruptcies.     

Yield curve risks in currency carry forwards

We provide empirical evidence that cross-country yield curve gaps (parallel gap, twist gap, and butterfly gap) are predictive to the expected currency carry premiums using currency forward contracts. We find that the expected currency gains are more notable as these yield curve risk factors at time t indicate short-term bond prices of investment currencies to go up (positive parallel movement, negative twist, and positive butterfly). We also find carry gains are more sensitively affected by cross-country monetary shocks than currency-country inflation pressures and business cycles. Our findings support that cross-country yield curve risk premiums still exist even after considering transaction costs.     

The effects of executive compensation and outside monitoring on firms’ pre-repurchase disclosure behavior and post-repurchase performance

Review of Quantitative Finance and Accounting - We show that corporate governance mechanisms play an important role in controlling managers’ opportunistic behavior. Low executive equity...     

Do Institutional Investors Enhance Accounting Earnings Attributes in the Korean Market?

This study examines whether the effectiveness of institutional monitoring depends on the economic conditions of emerging capital markets. We use trading volume data by investor type to compute a proxy for total institutional ownership. We then analyze the impact of the proxy variable on accounting earnings attributes and examine whether the association between the two depends on an expectation of market growth. We find that the effect of institutional monitoring decreases when market growth is expected to be low, implying that market growth may be a critical determinant of institutional investors’ long-term monitoring effectiveness in emerging capital markets.