Su Jeong Lee, Young Jun Kim, Eugenia Y. Lee and Ga-young Choi
Convertible instruments are financial instruments embedded with conversion rights such as convertible bonds or convertible preferred stocks. Under the Korean International…
Abstract
Convertible instruments are financial instruments embedded with conversion rights such as convertible bonds or convertible preferred stocks. Under the Korean International Financial Reporting Standards (K-IFRS), the embedded conversion rights with certain conditions (i.e., a refixing clause) are recognized as derivative liabilities and are recognized at fair value in issuer’s financial statements. Since the value of convertible rights varies with the underlying stock value, an increase in the issuers’ stock price causes the issuers of convertible instruments to announce large derivative valuation losses. Using disclosures under the title of ‘Loss from Derivatives Trading’ from the KOREA EXCHANGE (KRX) during January 2016 through December 2019, this study examines market reactions to the disclosure of valuation losses on conversion rights embedded in convertible instruments. We find the following results. First, abnormal stock returns on the loss announcement date are significantly negative. Second, abnormal trading volumes peak on the loss announcement date. Third, abnormal stock returns persist in the long-term. Collectively, our findings suggest that investors perceive the loss disclosures as negative news, but fail to impound the information into issuer’s stock prices effectively. This study emphasizes the importance of education on convertible instruments and improvement in the disclosure requirements on valuation losses of conversion rights embedded in convertible instruments by providing evidence that investors face difficulty in understanding the related disclosures.
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Noel Scott, Brent Moyle, Ana Cláudia Campos, Liubov Skavronskaya and Biqiang Liu
Badi H. Baltagi, Georges Bresson and Jean-Michel Etienne
This chapter proposes semiparametric estimation of the relationship between growth rate of GDP per capita, growth rates of physical and human capital, labor as well as other…
Abstract
This chapter proposes semiparametric estimation of the relationship between growth rate of GDP per capita, growth rates of physical and human capital, labor as well as other covariates and common trends for a panel of 23 OECD countries observed over the period 1971–2015. The observed differentiated behaviors by country reveal strong heterogeneity. This is the motivation behind using a mixed fixed- and random coefficients model to estimate this relationship. In particular, this chapter uses a semiparametric specification with random intercepts and slopes coefficients. Motivated by Lee and Wand (2016), the authors estimate a mean field variational Bayes semiparametric model with random coefficients for this panel of countries. Results reveal nonparametric specifications for the common trends. The use of this flexible methodology may enrich the empirical growth literature underlining a large diversity of responses across variables and countries.
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Jee-Won Kang, Hyesung Lee and Young Namkung
It is important for restaurants’ social networking sites (SNSs) to provide a flow experience because it encourages positive brand responses and attracts consumers. However, there…
Abstract
Purpose
It is important for restaurants’ social networking sites (SNSs) to provide a flow experience because it encourages positive brand responses and attracts consumers. However, there is a paucity of research on SNS flow experience in the restaurant industry, and more importantly, most of the research is focused only on online behavior. Therefore, this study aims to investigate how SNS flow antecedents (skill, challenge, telepresence and time distortion) influence overall flow, SNS satisfaction and offline restaurant purchase intentions. In addition, this study examined the mediating role of SNS satisfaction between flow and offline purchase intentions.
Design/methodology/approach
An online survey was carried out to examine the patron’s flow experiences. 517 valid responses were analyzed to test hypotheses using structural equation model.
Findings
The results indicated that four antecedents of SNS flow positively influenced overall flow. Specifically, time distortion was the most influential antecedent. Overall flow positively influenced SNS satisfaction and offline purchase intentions. Furthermore, SNS satisfaction acted as a mediator between overall flow and offline purchase intentions.
Practical implications
The findings provide not only new insights for restaurant managers to implement SNS marketing but also several strategies to encourage consumer’s flow on restaurant SNS.
Originality/value
This study investigated the theoretical framework of flow experience more in depth than previous research as dealing with four dimensions of SNS flow antecedents: skill, challenge, telepresence and time distortion.
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Hyeoung-Su Lee and Dong-Ho Bae
The purpose of this paper is to determine the influences of fat content and storage temperature on the quality of frozen pork patties during storage to evaluate the shelf life set…
Abstract
Purpose
The purpose of this paper is to determine the influences of fat content and storage temperature on the quality of frozen pork patties during storage to evaluate the shelf life set by the manufacturer.
Design/methodology/approach
Changes in moisture content, acid value, peroxide value, thiobarbituric acid value, total volatile basic nitrogen content, and the sensory score of frozen pork patties with 10 and 15 percent fat contents during storage at −5, −15, and −23°C for six months.
Findings
Although microbiological quality remained unchanged, moisture content decreased, and lipid rancidity and protein putrefaction increased significantly during storage. More rapid deterioration in quality was observed in patties stored at −5°C than those stored at lower temperatures. Lipid rancidity and protein putrefaction increased more rapidly (but not significantly) in patties with 15 percent fat than those with 10 percent fat. Overall acceptance of the sensory properties was closely correlated with the above quality indicators, except thiobarbituric acid value. Acceptable qualities of the samples were maintained for the first two, four, and six months under storage at −5, −15, and −23°C, respectively.
Practical implications
The current shelf life of frozen pork patties set by manufacturers, assuming a storage temperature of −18°C, needs to be readjusted considering practical storage temperatures.
Originality/value
No studies have comprehensively explored the effects of fat content and storage temperatures on the quality of ground meat products during frozen storage. These approaches to determine quality changes may be useful for manufacturers to predict and control the quality of their products.
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Seonjeong Ally Lee and Miyoung Jeong
This study aims to investigate antecedents and outcomes of customers’ narrative engagement on hotels’ social networking sites (SNSs). Four different types of brand story were…
Abstract
Purpose
This study aims to investigate antecedents and outcomes of customers’ narrative engagement on hotels’ social networking sites (SNSs). Four different types of brand story were explored as antecedents for brand story.
Design/methodology/approach
A cross-sectional, self-administered, online survey was conducted with customers who have stayed at a hotel and have used hotel SNSs within the past 12 months.
Findings
Results identified authenticity and humor brand story influenced customers’ narrative engagement, which further influenced their brand attitudes and behavioral intentions. However, reversal and conciseness types of a hotel’s brand story did not lead to customers’ narrative engagement.
Research limitations/implications
The role of SNSs in the hotel industry is evolving; however, the use of a hotel’s brand story has not been closely examined to date. This study investigated the importance of a hotel’s brand story that influenced customers’ narrative engagement on SNSs.
Practical implications
The prevalence of SNSs has changed hotel management practices. Hotels are suggested to pay attention to create persuasive brand stories that encourage customers’ visits to the hotel.
Originality/value
This study is an original attempt to propose a conceptual framework, explaining the relationships among different types of hotel brand stories, customers’ narrative engagements, their attitudes and their behavioral intentions in the SNSs context.
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Nour Salah Al-okaily, Nidal Alzboun, Ziad Alrawadieh and Muna Slehat
The effects of travel motivation and emotional experience on both tourist satisfaction and destination loyalty are recognized and have been extensively researched as key factors…
Abstract
Purpose
The effects of travel motivation and emotional experience on both tourist satisfaction and destination loyalty are recognized and have been extensively researched as key factors in tourism success. However, the structural relationships between these factors, considering the mediating effects of eudaimonic well-being (optimal psychological functioning), have been scarcely investigated in the consumer tourist behaviors literature. This study aims to develop an integrated model explaining the impact of travel motivation and emotional experience on tourist satisfaction and destination loyalty, mediated by eudaimonic well-being in the realm of domestic tourism.
Design/methodology/approach
A quantitative survey was conducted with 321 domestic tourists visiting Aqaba in Jordan; structural equation modeling was used to analyze the empirical data.
Findings
The findings of this study indicate that both travel motivation and emotional experience have a direct effect on eudaimonic well-being and that eudaimonic well-being has a direct effect on both tourist satisfaction and destination loyalty. Additionally, travel motivation and emotional experience have significant indirect impacts on post-consumption behaviors mediated by eudaimonic well-being.
Originality/value
This study contributes to the literature on consumer behavior in a tourism context by developing a fresh model that improves theoretical knowledge of the relationships between travel motivation, emotional experience and eudaimonic well-being, which underlie tourist satisfaction and destination loyalty formation. This study also advances theoretical understanding of the key roles of eudaimonic well-being in the tourist experience. Managerial implications of these findings are discussed.
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Jae-Boong Lee, Su-Han Woo, Jeong Seok Song, Byeongchan Seong and Keun-Sik Park
The purpose of this paper is to examine the diversification effect of the Korean Ship Investment Fund (KSF) under Markowitz portfolio theory by analyzing short-term and long-term…
Abstract
Purpose
The purpose of this paper is to examine the diversification effect of the Korean Ship Investment Fund (KSF) under Markowitz portfolio theory by analyzing short-term and long-term relationships with stocks and bonds.
Design/methodology/approach
For this purpose, unit root, correlation and cointegration tests are performed. Monthly data from 2004 to 2015 for stocks, bonds and KSFs are obtained for this study.
Findings
The correlation coefficients indicate that KSFs are uncorrelated with stocks and negatively correlated with bonds, and no long-term equilibrium relationships exist with all three variables by the Johansen and Engle-Granger cointegration tests.
Research limitations/implications
This paper makes contribution to the literature as follows: first, whereas the previous literature investigated diversification effect of ship investment using freight indices or freight rates which are not able to represent returns from ship investment, this study is the first study to use actual stock prices of the KSFs to the authors’ best knowledge; and second, diversification effect of ship investment represented by KSFs is empirically verified in the both short term and long term.
Practical implications
Policy-makers and managers of shipping companies can have sound ground that the KSFs are alternative and attractive assets to investors. It is also shown that the KSFs have potential to improve risk and return structure of investors on their own regardless of existence of incentives. Therefore, decisions of policy-makers can be made free from expectations for stronger incentives provided by the government. In addition, those countries that do not have such a ship investment platform may consider introducing a similar ship investment fund in order to revitalize the capital markets of the country.
Originality/value
This study holds its significance in investigating diversification properties of the KSFs for the first time in Korea since the KSFs were introduced.
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Soo-Yeon Kim and Jeong-Hyeon Lee
This study aims to explore consumers' perceptions of stealing thunder and to investigate significant factors for maximizing its effect.
Abstract
Purpose
This study aims to explore consumers' perceptions of stealing thunder and to investigate significant factors for maximizing its effect.
Design/methodology/approach
This study used a mixed-methods approach. First, qualitative responses from 286 Korean participants were collected and analyzed (Study 1). Second, the experiment employed a randomized 2 (crisis communication timing: stealing thunder vs thunder) × 2 (transparent vs nontransparent communication) × 2 (follow-up actions: good vs poor) between-subjects experimental design with 426 Korean participants to investigate and confirm the results of Study 1.
Findings
Qualitative data showed that the participants' evaluation of corporations' stealing thunder strategy is complicated. Some do not perceive corporate use of stealing thunder at face value, but rather view it as yet another hopeless, selfish and irresponsible crisis communication strategy, distrusting it based on strong cynicism toward all corporations. An experiment confirmed that stealing thunder was significantly more effective in eliciting consumers' ethical judgment (EJ) and word-of-mouth (WOM) on corporations than the thunder strategy. Significant two-way interaction effects between crisis timing and follow-up actions showed that the stealing thunder strategy should be accompanied by follow-up actions to increase consumers' credibility and WOM intentions.
Originality/value
This study investigated how consumers evaluate stealing thunder by adopting both a qualitative and quantitative approach to explore how they make meaning out of this phenomenon.