Investment opportunities and cash holdings of firms: an empirical study on Korean firms

We find that the cash flow sensitivity of cash holdings of firms whose investment opportunities are lower is significantly higher by examining a panel data of 898 Korean firms for 1999–2014. The cash flow sensitivity of investment is also found to be lower in case of low investment opportunity. Both findings suggest that firms decide to hold cash in response to an increase in cash flow when they do not have a good investment opportunity. Precautionary motive because of financial constraints and uncertainty, and agency problems, however, are not associated with the cash flow sensitivity of cash holdings. These findings imply that it is necessary to develop new investment opportunities to encourage firms to spend more cash in Korea.     

Introduction to “Economic and Financial Governance in the European Union after a decade of Economic and Political Crises.”

ABSTRACT

This paper offers the Introduction to the Special Issue “Economic and Financial Governance in the European Union after a decade of Economic and Political Crises.” We introduce the five papers. We distill three important lessons they offer for EU integration.     

Promoting cost efficiency and uniformity in parcel delivery centre locations and service areas: a GIS-based analysis

This paper provides a systematic framework to determine local delivery centre (LDC) locations and service areas to reduce delivery costs and balance the allocation of parcel delivery loads to promote sustainable LDC development. Based on a case study of a parcel distribution company in Korea, this study proposes two strategies for LDC service area delineation within each terminal service boundary that either minimises the total delivery time or balances the allocation of delivery loads. This research contributes to improving cost efficiency and balancing delivery load allocations in planning LDC locations and service areas that can potentially promote the long-term mutual sustainable development of parcel distribution companies and their local delivery counterparts.     

Can a Celebrity Serve as an Issue‐Relevant Argument in the Elaboration Likelihood Model?

While celebrity endorsement has been traditionally perceived as a peripheral cue in the elaboration likelihood model, several conceptual studies suggest otherwise that it may play a significant role in delivering issue‐relevant information when celebrity–product congruence exists. The current study provides empirical evidence that a celebrity indeed serves as an issue‐relevant argument by investigating the interaction effects between endorser–product congruence and product involvement on consumer responses in two different match‐up conditions. Moderated regression analysis results indicated that product involvement strengthened the effect of expertise‐based endorser–product congruence on consumer responses. However, the relationship between attractiveness‐based endorser–product congruence and consumer responses generated insignificant results. Research findings entail that a celebrity persuades consumers through the central route when the expert image in particular fits well with the endorsed product. Further analyses indicated that attitude toward the brand mediated the relationship between attitude toward the advertisement and purchase intention in both match‐up environments.     

Farmland for tomorrow in densely populated areas

The paper describes the results of a research that aimed to come up with a well structured method to estimate future farmland requirements in densely populated areas. By using in depth interviews, scenario analysis and strategic orientation rounds, a method is developed to support policy optimization and to explore alternative future developments. The method is applied to the case of agriculture in the Flemish part of Belgium to show the feasibility of the model and to provide input for the discussion among policy makers in Flanders. The research results can be used by policy makers to build a new Spatial Plan Flanders for the period 2007–2013.     

Examining the influencing factors of intention to share accommodations in online hospitality exchange networks

ABSTRACT

CouchSurfing is a free social-network-based online hospitality exchange network, aptly representing a new sharing economy phenomenon. Based on social capital theory and previous literature, this study attempts to answer why hosts help strangers without any expected economic benefit within online hospitality exchange networks. An empirical study based on a Web survey conducted with CouchSurfing hosts reveals that the most identified antecedents (enjoy helping, shared narratives, desire to make friends, and reciprocity) are significantly related to hosts’ intention to share accommodations. Interestingly, the overshadowing effect of trust in CouchSurfing on the intention to share accommodations is also found.     

A method for reducing information asymmetry in destination–airline relationships

We propose a measure of business risk in air travel demand at the route level that can reduce information asymmetry during route development negotiations between tourism destinations and airlines. Aviation-exposed risk (AER) conveys information about the level of uncertainty with regard to air travel demand from an airline’s perspective. Using AER, tourism destinations and air service development teams can evaluate their risks from the perspective of the airline and its network. From there, an assessment can be made as to the value of air services in certain circumstances, including whether a direct underwrite or risk share between airlines and destinations is viable and necessary. By applying a portfolio analysis to an airline’s network, we find evidence that AER does indeed mimic the actual capacity distribution of the network. This provides support for AER as a useful risk measure to be used in practice.     

Consumer self‐construal and trust as determinants of the reactance to a recommender advice

Commercial recommendation agents (RAs) represent an important type of the decision support systems (DSSs) that are widely used by online retailers and firms. To date, little is known about the factors that shape the user's decision making and reactance toward the recommendations of these agents. Building on theories from psychology and information systems domains, this research proposes that a user's self‐construal and trust are two relevant factors that interact to shape the behavior toward the RA advice. Two studies, the first conducted using potential online customers and the second conducted at a behavioral laboratory, provided support to this proposition. The first study considered RA trust and showed that activating the interdependent self leads users with low (high) trust to exhibit high reactance behavior toward the RA advice. The second study variated trust using trust cues and corroborated the latter finding, while showing no important impact for the psychological reactance trait. As expected, in both studies the reactance behavior of independent users was not affected by trust. These results contribute by underscoring that social interdependence extends to RAs because the role of trust becomes salient when the interdependent self is activated for a user.     

Identifying Macroeconomic Linkages to U.S. Agricultural Trade Balance

This study explores the short-run and long-run relationships between the U.S. agricultural trade balance and domestic macroeconomic aggregates and agricultural variables. We use cointegration analysis and a vector error-correction model with quarterly data for 1981–2003. The results show that, in the long run, the exchange rate, agricultural price, and disposable income are weakly exogenous in the U.S. agricultural sector and have significant effects on the trade balance. The combined short-run dynamic effects of the exchange rate, agricultural price and production, and the disposable income jointly explain changes in the trade balance.
La présente étude porte sur les liens à court et à long terme entre la balance commerciale agricole des États-Unis, les agrégats macroéconomiques et les variables agricoles. Nous avons utilisé une analyse de cointégration et un modèle vectoriel à correction d'erreur comprenant des données trimestrielles de 1981 à 2003. Les résultats ont montré que, à long terme, le taux de change, les prix agricoles et le revenu disponible sont faiblement exogènes dans le secteur agricole des États-Unis et qu'ils ont des effets substantiels sur la balance commerciale. Les effets dynamiques à court terme combinés du taux de change, des prix et de la production agricoles ainsi que du revenu disponible expliquent les changements observés dans la balance commerciale.     

转型论者应该止步吗?

在用什么方法分析研究东欧的民主化问题上,本文的看法有四点:关于东欧与南欧之间的比较的辩论,不应该变为区域研究与比较研究之间的那种早已过时的辩论;施米特和卡尔把比较研究与区域研究描述成对立的两极,是错误的;东欧与南欧之间存在着实质性的区别,对它们之间进行比较会出现很多问题;尽管如此,作者还是认为,有许多理由来进行这样的比较.