Travel industry structure in fast growing but immature outbound markets: the case of Korea to Australia travel

This paper examines the structure of the travel industry in Korea with particular reference to outbound travel to Australia. The relationship between the wholesaling and retailing functions is examined. It was found that despite the existence of strict licensing procedures, which have created three categories of travel business, the distinction between the wholesaling and retailing functions remains blurred. Most business is handled by a single category of operator — general travel agents. In contrast to the oligopolies evident in other industrial sectors in Korea, however a fairly large number of companies each handle a fairly small proportion of the market. This may change as a combination of intense price competition and the impact of the East Asian financial crisis forces less competitive operators out of business. Until the expected shake-out occurs, inbound tour operators in countries such as Australia will feel the pinch. An excessive and continuing emphasis on price will make it difficult for long-haul destinations to offer high quality products and to build high-yield business. Copyright © 1999 John Wiley & Sons, Ltd.     

The effect of option listing on financing decisions

This paper investigates the effect of option listing on corporate financing decisions. Firms experience a significant drop in leverage, which is driven mainly by an increase in new equity issues. This effect is more prominent in firms with greater information asymmetry and lower percentages of quasi-index and transient investors before listing and those with active options trading after listing. After options are listed, the newly listed firms hold more cash and engage in more acquisitions, which are funded mainly by equity issues. These findings suggest that option listing has a significant impact on financing decisions because of lower information asymmetry and that firms use the post-listing equity to build up financial slack and support major investments, such as acquisitions.     

Human resource development in remote island communities: an evaluation of tour‐guide training in Vanuatu

About 30% of visitors to Vanuatu visit the outer islands, where ecotourism has recently emerged as a small‐scale but significant activity. In the face of increasing competition from comparable Asia–Pacific destinations, there has been pressure on tourism operators and the Vanuatu Government to improve product quality through mechanisms such as the development of high‐quality tours. One way to enhance product quality is through the provision of appropriate professional training for tourism sector employees, including local tour guides. The paper outlines a tour‐guide training programme delivered on the outer islands, which received financial assistance from several foreign aid agencies. The programme is an instructive example of an attempt to implement a human resource strategy in a developing country arising from the recommendations of a national tourism masterplan that sought the active involvement of international funding agencies in the implementation phase. The paper evaluates the effectiveness of the training programme and outlines the challenges of programme delivery. Copyright © 2002 John Wiley & Sons, Ltd.     

Accelerated share repurchases: value creation or extraction

Review of Quantitative Finance and Accounting - In this paper, we examine firms’ motivation to conduct an Accelerated Share Repurchase (ASR) comparing to an OMR. ASRs have become the second...