Search results

Drawing on the literature on technological acquisition and the knowledge-based view , this study examines how technological overlap between acquiring and target firms influences acquisition premiums. We further explore how the resulting synergies are contingent on the dynamic characteristics of the target firm, specifically its technology clockspeed and industry munificence. Technology clockspeed indicates the pace of technological evolution, reflecting internal dynamic resources, while industry munificence represents the abundance of external resources. These boundary conditions illustrate the dynamics of synergies, explaining their moderation effects on acquisition premiums.

We analyze a sample of 369 technological acquisitions by publicly traded U.S. firms between 1990 and 2011. To test our hypotheses, we used the ordinary least squares regression model with robust standard errors clustered by acquiring firms. In the robustness checks, we applied the generalized estimating equations to account for non-independent observations in our sample and verified that the results were robust to an alternative two-way clustering approach.

We suggest that a low level of technological overlap between an acquiring firm and its target firm leads the acquiring firm to offer a high acquisition premium because of the expected synergistic potential that evolves from combining two distant technological bases. We further find that this effect is contingent on the target firm's technology clockspeed and industry munificence. Specifically, the negative effect is amplified when target firms exhibit a rapid pace of technological evolution, whereas it is weakened when target firms operate in highly munificent industries characterized by robust growth and abundant resource flows.

This study has several limitations, but it offers opportunities for future research. First, our sample is limited to domestic acquisitions between U.S. publicly traded firms, which may restrict generalizability. Cross-border acquisitions could reveal different dynamics, as technology leakage and national security concerns might make technological overlap a more sensitive factor. Additionally, private firms were not included, and their distinct strategic considerations could provide further insights. Future research could explore post-acquisition data to validate these synergies and expand the scope to include international contexts and private firms for a comprehensive analysis.

Our findings highlight important implications for managers in technology sector acquisitions. This study underscores the need for a thorough evaluation of target firms to avoid misjudging synergies. Low technological overlap can heighten expectations for value creation, making it crucial for executives to accurately assess potential synergies to prevent overestimation. Managers should consider both internal resources and external industry conditions when evaluating synergies. Ultimately, these insights help managers offer informed prices that reflect true strategic synergies, adopting effective valuation practices to mitigate risks of financial overpayments and poor post-merger performance.

The social implications of our findings emphasize the broader impact of acquisition decisions on innovation and competition within the technology sector. By ensuring accurate valuation and avoiding overpayment, companies can allocate resources more efficiently, fostering sustainable growth and innovation. This diligent approach can reduce the risk of corporate failures.

This study makes two key theoretical contributions. First, it identifies technological overlap as a critical determinant of acquisition premiums in technological acquisitions, addressing gaps in the literature that focused on CEO characteristics and managerial attention. Second, it expands the theoretical framework by highlighting the dynamic nature of synergies, influenced by the target firm's technology clockspeed and industry munificence. By integrating both acquiring and target firm characteristics, this study provides a relational perspective on value creation, explaining why firms pay high premiums and offering a more comprehensive understanding of the strategic motivations in technological acquisitions.

Aging is a global phenomenon for many countries, and South Korea has become the fastest aging country in the world. The purpose of this study is to identify and validate a representative typology of older Koreans based on their lifestyle and value orientations. This study also makes a longitudinal comparison of these segments in two waves using similar survey data collected in 2009 and 2017 and examines any meaningful changes that occurred during the periods.

Using survey data collected from 750 older adults living in four major cities in Korea, this study conducted factor and cluster analysis to identify lifestyle segmentation of elderly Koreans. Both descriptive and mean comparison analyses are followed to characterize the segments with relevant demographic and behavioral variables. In addition, this study makes a longitudinal comparison of these segments in two waves (2009 and 2017) and examines any meaningful changes that occurred during the periods.

Six distinctive lifestyle segments of elderly Koreans are identified. The longitudinal comparison reveals some changes that occurred during the period. The level of importance of values and things to own has been declined during the period on most of the aspects, which can be interpreted that older Koreans become more realistic and practical. The level of life satisfaction between the two periods turned out to be similar. However, satisfaction in material comfort and health has been improved during the period, which means that the perception of their financial and physical aspects has been improved over the years.

First, based on Tempest et al.’s three grey discontinuity framework (2002), the segmentation model provides comprehensive coverage of psychological transitions experienced by older people due to economic, physical and mental discontinuities with age. Second, this might be the first longitudinal study to examine the changes in segmentation over time in terms of the lifestyle of older adults. Practically, the findings of this study provide useful insights for policymakers in developing aging-related policies as well as for marketers who are interested or currently doing business in Korea or Asian consumer markets.

The purpose of this paper is to compare the value relevance of various accounting information disclosed in financial statements of manufacturing companies listed on the stock markets of Korea, Japan, and China over ten years from 2006 to 2015.

The study uses Ohlson (1995) valuation model for empirical investigation and the financial data extracted from the OSIRIS DB to analyze the enterprise value relevance of accounting information for Korean, Chinese, and Japanese companies and to investigate the differences among them.

The results of the empirical analysis are as follows. First, the coefficient of accounting earnings is the highest in the samples of all firms in Korea, Japan, and China, followed by the coefficients for operating income, net cash flow, book value, and net operating cash flows. Next, Japan has the largest book value, followed by Korea, but China has a negative value. Japan has the largest coefficient of accounting earnings and net operating cash flow, followed by Korea and China. Japan has the largest coefficient of net cash flow and operating income, followed by China and Korea. The results show that the value relevance of accounting earnings is the largest among independent variables related to firm value, but the net operating cash flow is the smallest. In addition, the authors observe that the coefficient of Japan is the largest of all independent variables when compared by country.

The contribution of this study is that it shows the comparative value relevance of accounting information in most economically developed Asian countries such as Korea, Japan, and China. In addition, it is worth showing the characteristics of the national value decision variable by showing different incremental value relevance levels among the three countries.

This study aims to comprehend luxury brands' corporate social responsibility (CSR) strategies. In addition to facing a demand for new CSR strategies (consumer-centric CSR), changes in CSR discourse among luxury brands are observed. This study examines how CSR-related and luxury-related agendas relate in the news media, especially concerning the difference between traditional and new luxury brands.

A total of 117,171 fashion-related news articles were collected from January 2016 to December 2020. The word2vec method was used to determine the relationship between CSR and luxury agendas.

The results indicate that company-centric CSR is more prominent with traditional luxury brands, while consumer-centric CSR is more relevant for new luxury brands. In addition, specific CSR attributes and luxury-related attributes are associated with media discourse, which means that CSR and luxury are compatible.

Studies on CSR in the luxury industry are not extensive in the literature. This study addresses this gap through a unique framework that combines agenda-setting theory and existing CSR literature and applies them to the luxury industry. Specifically, this study captures the development of each construct (company-centric CSR to consumer-centric CSR and traditional luxury to new luxury) and identifies the specific relationships between them. This result provides a novel view of the luxury industry indicating that it has evolved to encompass CSR-related values. The empirical results also offer practical implications for luxury marketing.

Size fit and economic efficiency are two crucial aspects that need to be considered in designing a sizing system. However, there could exist a trade-off between those aspects in order to establish a practical sizing system. The purpose of this paper is to develop a sequential hybrid method of grid and optimization to generate a practical sizing system using anthropometric data.

The proposed sequential hybrid method consisted of two sequential steps, which employs grid method and optimization method. In the initial step, the grid method creates primary grids that accommodate a designated percentage (e.g. 90%) of users with best size fit. In the subsequent step, the optimization method generated additional grids to provide acceptable fit, with minimum fit penalty scores for users unaccommodated by the primary grids. Our method was applied to the development of a sizing system for men's military jackets. The proposed method performances were evaluated in terms of accommodation percentage, size fit and number of sizing categories.

Our proposed method resulted in 26 primary grids during the initial step, which cover 90% of users. Next, we generated six additional grids during the subsequent step that provide minimum fit penalty scores for the rest (10%) users.

The main contributions of this paper are as follows: consider accommodation percentage, size fit and number of sizing categories in the design of sizing system; combine the grid and optimization methods and evaluate a sizing system for men's military jackets. The proposed method is applicable to develop optimal sizing systems for multiple-size products.

Examines the learning and reading‐related lifestyles of users and non‐users of libraries in Singapore. Door‐to‐door personal interviews with over 800 respondents in the age group of over 15 were used to collect the data. Factor analysis was used to establish eight types of reading and learning lifestyles. Subsequently cluster analysis was used to segment the respondents into seven types of library visitors. Together with their demographic characteristics and usage patterns of libraries, distinct profiles of these segments of people could be constructed. Finally, implications for library policy planners are discussed.

This chapter analyzes the semiotic construction of US claims to sovereignty in Hawai‘i. Building on semiotic theories in sociology and theories within critical Indigenous and settler colonial studies, it presents an interpretive analysis of state, military, and academic discursive strategies. The US empire-state attempts to construct colonial narratives of race and sovereignty that rehistoricize the history of Hawaiians and other Indigenous peoples. In order to make claims to sovereignty, settler-colonists construct narratives that build upon false claims to superiority, advancement, and discovery. Colonial resignification is a process by which signs and symbols of Indigenous communities are conscripted into the myths of empire that maintain such sovereign claims. Yet, for this reason, colonial resignification can be undone through reclaiming such signs and symbols from their use within colonial metanarratives. In this case, efforts toward decolonial resignification enacted alternative metanarratives of peoples' relationships to place. This “flip side” of the synecdoche is a process that unravels the ties that bind layered myths by providing new answers to questions that underpin settler colonial sovereignty.

This chapter connects colorblind ideology to organizational processes. Despite advances in our thinking about colorblindness as the current dominant racial ideology, scholars are reluctant to tie this ideology to organizational processes – creating the impression that colorblindness is an individual attribute rather than a structural phenomenon. Because the frames of colorblindness are usually interpreted through interviews – as opposed to organizational practices – focusing on the frames reinforces the sense that ideologies are free-floating prejudices unconnected to social structures. In this theoretical piece, we draw on the organizational literature, to tie Bonilla-Silva’s colorblind frames – abstract liberalism, cultural racism, the minimization of racism, and naturalization – to organizational processes, showing how mundane organizational procedures reinforce structural inequality. We argue that organizational policies and practices rely on normative Whiteness, devaluing the cultural norms of nonwhites, and passing those practices to successive administrations. Ostensibly nonracial procedures such as hiring, promotion, and performance reviews are rife with racialized meanings.

Advertising clutter has fueled the rise of nontraditional advertising methods. The current study, conducted in India, adopted the consumer socialization framework to assess product placement attitudes and behaviors.

A questionnaire-based survey was conducted to gauge consumers' responses to product placements. Structural equation modeling (SEM) was applied to analyze the relationship between different variables.

The results revealed that young Indian adults are positive about product placements as they believe that incorporating brands into the content adds realism. The authors found that socialization agents significantly impact viewers' attitudes toward product placements which in turn influence their purchase intentions. The authors also found that product acceptability impacts consumers' purchase intentions.

This paper provides important insights into consumers' perceptions of product placements. Based on the findings, marketers can formulate effective product placement strategies.

Most of the studies existing in this area have been conducted in the developed markets except a few which have been conducted in the emerging markets. Hence, the present study is an attempt to fill this research gap. This study is among the first to establish a relationship between product acceptability and consumers' purchase intentions.

This research began by acknowledging that conventional analysis on the foreign exchange exposure could not adequately reflect firms’ risk management strategies, which firms take actions against uncertainties raised by foreign exchange. In order to conceptualize uncertainty aroused by foreign exchange, the purpose of this paper is to develop an index that could measure corporate profits’ sensitivity to foreign exchange uncertainty and examine its possibility of utilization.

As an alternative to foreign exchange exposure, the present research derived the foreign exchange volatility exposure and analyzed the determinants of foreign currency-denominated debt in terms of foreign exchange volatility exposure. The foreign exchange volatility exposure draws from partially differentiating a firm’s operating profits to the exchange rate volatility.

The major findings are as follows. First, before the Asian financial crisis, South Korean enterprises had similar responses to the exchange volatility exposure as compared with the exchange exposure on procuring foreign-denominated debt. Second, since the global financial crisis (GFC), not only have Korean firms’ response mechanisms to both exposures changed, but also the significance of exchange volatility exposure has been further emphasized. Furthermore, Korean companies have dealt with exchange uncertainties by decreasing foreign-denominated debt as their foreign exchange volatility exposure increased after GFC. In contrast, the influence of conventional exchange exposure on foreign-denominated debt has diminished.

Future research should focus on several points. First, additional research could extend to foreign investors who have divergent perception and consideration in regard to foreign exchange risk management. Second, research on decision making and motivation in foreign currency choice should be conducted in order to deepen academic understanding. Third, research that refines the variables added in the current research should be conducted. Finally, as a way to manage foreign exchange volatility exposure, further investigation based on this study is possible.

The results of this study have several important theoretical and empirical implications for companies’ foreign exchange risk management strategy. First, through foreign exchange volatility exposure, which can usefully take over the role of the existing foreign exchange exposure, the authors can confirm market uncertainty as being relevant to the foreign exchange risk management strategy. Second, through the financial influence that the foreign exchange volatility exposure has on the foreign currency-denominated debt, the authors can observe the Korean firms’ paradigm shifts in their foreign exchange risk management strategies.

This research confirms the importance of foreign exchange volatility exposure in the research works dealing with firms’ exchange risk management, also the possible influence of foreign exchange volatility exposure in the future might be increased as uncertainty is raised from foreign exchange escalating.