Political Influence and the Banking Sector: Evidence from Korea*

This paper uses panel data to compare the performance of Korean banks with and without effective government control of the appointment of chief operating officers. A privatization programme succeeded in spreading ownership of banks widely among the public, but government retention of an ownership stake in an institution meant de facto control by government. Despite charging lower loan rates, banks controlled by government experience higher bad loans ratios. This is in line with expectations of regulatory forbearance and government protection for recipients of political loans. Banks controlled by government are less efficient than privately controlled banks and bad loan variables are higher at banks with lower efficiency scores.     

Investigating festivals and events as social gatherings: the application of social identity theory

Festivals and events as social gatherings have become an increasingly important sector of the tourism and leisure industries. The present study applied social identity theory to examine the causal relationship between the three mental stages experienced by event visitors: social categorization (fundamental and hedonic values), social identification (social identity), and social comparison (self-esteem), as well as another two consequential factors (revisit intention and electronic word-of-mouth). Data were collected at the Harbin Ice and Snow Sculpture Festival in Harbin, China. The results confirmed that fundamental and hedonic values influence visitors’ social identity, which consequently influences self-esteem. The study provides a theoretical foundation for understanding visitors’ attitudes and behaviors in the contexts of festivals and events.     

Violent crime and female victimization: evidence from metropolitan regions in South Korea

In the economics of crime literature, victimization by crime has received less attention than the supply side of crime. This article investigates the relationship between violent crime and female victimization. We show that violent crime increases with both the overall female exposure and female proportion in the victim-target group. Potential interactions between these female characteristics and income inequality are also shown to influence the incidence of violent crime. Empirically, we introduce proxies for female characteristics that better reflect our hypotheses – for example, young unmarried female-headed households (for exposure to crime) and new job gains among females (for economic status). Using a panel of South Korean metropolitan regions, 2000–2011, we find that a certain limited change in these female characteristics could account for as much as 16% of violent crime.