Asymmetric capital structure adjustments: New evidence from dynamic panel threshold models

We develop a dynamic panel threshold model of capital structure to test the dynamic trade-off theory, allowing for asymmetries in firms' adjustments toward target leverage. Our novel estimation approach is able to consistently estimate heterogeneous speeds of adjustment in different regimes as well as to properly test for the threshold effect. We consider several proxies for adjustment costs that affect the asymmetries in capital structure adjustments and find evidence that firms with large financing imbalance (or a deficit), large investment or low earnings volatility adjust faster than those with the opposite characteristics. Firms not only adjust at different rates but also seem to adjust toward heterogeneous leverage targets. Moreover, we document a consistent pattern that firms undertaking quick adjustment are over-levered with a financing deficit and rely heavily on equity issues to make such adjustment.     

Social exchange approach,job satisfaction,and turnover intention in the airline industry

Service Business - This paper investigates the effects of social exchange relationships on job satisfaction and turnover intention in the airline industry. To this end, two constructs of social...     

Effects of hotel employees' perception of wage justice: the case of South Korea

The purpose of this study is to examine whether the results of the previous studies on the relationship between wage justice and employees' attitude are also found within Korean hotels that have adopted a unique wage system. The data were collected through a survey done with employees of five Korean hotels. The results are similar to those of previous studies. However, the present study found that employees' satisfaction with the wage system is also important, and job insecurity partially affects the relationship between wage justice and employees' attitude as well as the relationship between employees' satisfaction with the wage system and their attitude. Managerial implication, limitations and directions for future studies are suggested.