This paper aims to enhance empirical research on foreign divestment and international relocation by multinational firms are still limited and understudied, although these issues…
Abstract
Purpose
This paper aims to enhance empirical research on foreign divestment and international relocation by multinational firms are still limited and understudied, although these issues have been a frequent phenomenon and carry important economic implications.
Design/methodology/approach
The paper investigates the trends of foreign divestment in South Korea and examines firm- and host country-level determinants in total, manufacture and service sectors from 2010 to 2019.
Findings
Using probit model analysis, the main findings are first, among the firm-level factors, sales revenue and parent firm dummy are shown as negative and significant determinants of foreign divestment especially in manufacturing sector. Second, among the country-level factors, gross domestic product growth rate and regulatory quality that measures perceptions of sound policies that promote private sector development are shown negative and significant determinants of foreign divestment. On the other hand, relationship between the environmental policy stringency and foreign divestment is shown positive and significant.
Originality/value
The results suggest that these nonfirm-specific characteristics are also important factors in firm decision to divest from the host country.
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Seung-Hyun Han, Eunjung Grace Oh and Sung “Pil” Kang
Based on the job characteristics theory (Oldham and Hackman, 2010), the authors highlighted the mediating role of job meaningfulness as a critical psychological state. Employees'…
Abstract
Purpose
Based on the job characteristics theory (Oldham and Hackman, 2010), the authors highlighted the mediating role of job meaningfulness as a critical psychological state. Employees' positive perception of job meaningfulness could maximize organizational positive outcomes based on task orientation and trustful relationship-based satisfying behaviors. The purpose of this paper is to examine the structural relations among transformational leadership, job characteristics, job meaningfulness and task-related job performance. The conceptual model of this paper is developed based on the theoretical foundations for assessing mediating and moderating path relations among the exogenous and endogenous variables.
Design/methodology/approach
Based on the research questions with literature review, the research framework was developed to show the moderated mediating mechanism of the link between transformational leadership and in-role performance. Data analyses for hypothesis testing were conducted by Hayes' PROCESS macro-based hierarchical regression.
Findings
Understanding how organizations can optimally design a job based on job characteristics and helping employees maintain psychological states having meaningfulness and responsibility for outcomes are critical. This paper calls attention to how job characteristics and an individual's meaningfulness of work embedded in a given job play a role in influencing job performance.
Originality/value
This study provides a snapshot for examining the job characteristic model on the link between leadership and job performance. By using process analysis (Hayes, 2013), this study examined the moderating role of job characteristics and mediating role of meaningfulness at work in the link of leadership–performance.
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Seung Hyun Han, Eunjung Oh, Sung Pil Kang, Sumi Lee and Shin Hee Park
The purpose of this study is to investigate the link between informal learning and employees’ in-role performance and whether the mechanism through informal learning mediates the…
Abstract
Purpose
The purpose of this study is to investigate the link between informal learning and employees’ in-role performance and whether the mechanism through informal learning mediates the relationships between self-efficacy, job characteristics, trust and in-role performance.
Design/methodology/approach
Based on data (n = 294) obtained from the firms with the Work–Learning Dual System in South Korea, a structural equation modeling (SEM) analysis was conducted.
Findings
The findings indicated that trust and job characteristics affected informal learning and informal learning mediates the relationships of trust and job characteristics with job performance.
Originality/value
The significant contributions of this study to the extant literature on informal learning are as follows: first, the present study investigates a mechanism and a mediating role of informal learning using SEM, while most previous studies in literature have employed qualitative research in informal learning. Second, this study explores the mediating role of informal learning between personal/job-related determinants of informal learning and in-role performance, which has not yet been examined in existing literature. Finally, this study provides practical implications regarding how organizations can facilitate more informal learning among employees to enhance their performance.
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Jana Brockhaus, Laura Dicke, Patricia Hauck and Sophia Charlotte Volk
The aim of this chapter is to shed light on a growing phenomenon in communication practice: employees speaking voluntarily for, about or on behalf of their organization, hereafter…
Abstract
The aim of this chapter is to shed light on a growing phenomenon in communication practice: employees speaking voluntarily for, about or on behalf of their organization, hereafter labelled as corporate ambassadors. The goal of this qualitative study is to analyze the role of corporate ambassadors within an organization and explore the perceived benefits and risks from three perspectives: the communication department, other departments such as marketing or human resources, and corporate ambassadors themselves. The research is based on an interdisciplinary literature review and 25 qualitative in-depth interviews with employees in one large, internationally operating German organization. By combining the theoretical and empirical insights, a conceptual framework that depicts the benefits (e.g., joy, increased trust, positive impact on reputation) and risks (e.g., work stress, lack of integration, loss of quality) of integrating corporate ambassadors into the overall communication of the organization was developed. In addition, this chapter suggests two typologies that help to distinguish between different roles of communication professionals and of corporate ambassadors. The contribution of this study is to lay a groundwork for further discussions about corporate ambassadors in the field of corporate communications. The chapter outlines directions for future research and implications for practice on how the framework can be applied in organizations.
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Cen April Yue, Yufan Sunny Qin and Linjuan Rita Men
This study is designed to bridge a gap in the existing leadership communication literature by delving into lesser-explored facets of the field. It particularly concentrates on…
Abstract
Purpose
This study is designed to bridge a gap in the existing leadership communication literature by delving into lesser-explored facets of the field. It particularly concentrates on investigating how the verbal aggressiveness of supervisors influences various aspects of the workplace, including workplace emotional culture, the quality of employee–organization relationships (EORs) and the prevalence of counterproductive work behaviors (CWB).
Design/methodology/approach
This study employed a quantitative research design to investigate the impact of supervisors' verbal aggressiveness on employee and organizational outcomes. The data were collected from 392 full-time employees across various organizations and industries in the USA using a self-report questionnaire. The researchers used structural equation modeling (SEM) to analyze the data and test hypotheses.
Findings
The findings of this study showed that supervisors' verbal aggressiveness had a significant positive association with negative emotional culture and employee CWB. However, it had no direct impact on employee–organization relationships. The effect of supervisor verbal aggressiveness on employee CWB was found to be mediated by a negative team-level emotional culture.
Originality/value
This study advances the literature on leadership communication by highlighting the detrimental influence of the dark side of leadership communication. More specifically, by identifying negative emotional culture and employee CWB as the direct outcomes of supervisor verbal aggressiveness, the authors add to the existing theoretical knowledge on verbal aggressiveness in the workplace. Additionally, this study provides empirical evidence of the impact of a negative emotional culture on eliciting employees' CWBs and diminishing relationship quality, adding to the body of knowledge on why managing emotional culture is crucial for organizations and workgroups.
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Sang Hoon Kang and Seong-Min Yoon
This paper investigates the impact of structural breaks on volatility spillovers between Asian stock markets (China, Hong Kong, India, Indonesia, Japan, Korea, Singapore, and…
Abstract
This paper investigates the impact of structural breaks on volatility spillovers between Asian stock markets (China, Hong Kong, India, Indonesia, Japan, Korea, Singapore, and Taiwan) and the oil futures market. To this end, we apply the bivariate DCC-GARCH model to weekly spot indices during the period 1998-2015. The results reveal significant volatility transmission for the pairs between the Asian stock and oil futures markets. Moreover, we find a significant variability in the time-varying conditional correlations between the considered markets during both bullish and bearish markets, particularly from early 2007 to the summer of 2008. Using the modified ICSS algorithm, we find several sudden changes in these markets with a common break date centred on September 15, 2008. This date corresponds to the collapse of Lehman Brothers which is considered as our breakpoint to define the global financial crisis. Also, we analyse the optimal portfolio weights and time-varying hedge ratios based on the estimates of the multivariate DCC-GARCH model. The results emphasize the importance of overweighting optimal portfolios between Asian stock and the oil futures markets.
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Hong-Bae Kim, Yeonjeong Lee, Sang Hoon Kang and Seong-Min Yoon
This study investigates the influence of theoretical determinants on the Korea sovereign CDS spreads from January 2007 to September 2009 based on structural credit risk model. For…
Abstract
This study investigates the influence of theoretical determinants on the Korea sovereign CDS spreads from January 2007 to September 2009 based on structural credit risk model. For the analysis of determinants on the sovereign CDS spread, this study adopts interest swap rate as reference interest rate, and decomposes yields curve into two components, ie, interest level and slope. Considering multivariate regression in level and difference variables, Stock returns and Interest rates have a significant effect on the CDS spreads among the theoretical determinants of structural credit risk models. CDS spreads may behave quite differently during volatile regime compared with their behavior in tranquil regime. We therefore apply Markov switching model to investigate the possibility that the influence of theoretical determinants of CDS spread has a regime dependent behavior. In all regimes Korean sovereign CDS spreads are highly sensitive to stock market returns, whereas in tranquil regime interest rates also have influence on CDS spreads. We conclude that for the efficient hedging of CDS exposure trader should adjust equity hedge ratio to the relevant regime.
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This paper aims to investigate the network structure of connectedness among global index futures markets in different distress periods. In this purpose, this employs the…
Abstract
This paper aims to investigate the network structure of connectedness among global index futures markets in different distress periods. In this purpose, this employs the multivariate DECO-GARCH model of Engle and Kelly (2012) and the spillover index method of Diebold and Yilmaz (2014). From empirical analysis, this paper finds an evidence of a positive equicorrelation among global index futures, implying the contagion effect in global index futures markets. The spillover connectedness is intensified due to recent market distress, i.e., the 2008-2009 GFC, the 2010-2012 ESDC, the collapse of Chinese stock market in 2015, and the US FRB interest rate hike in 2018. Further, this paper measures the direction and strength of volatility connectedness assessed by the net pairwise directional spillover indexes. Thus this paper identifies the net spillover connectedness (transmitter/receiver) across global index futures markets. Finally, this paper shows the network structure of spillover connectedness in different market distress periods, and provides the channels of spillover connectedness across global index future markets.
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Hong Bae Kim and Sang Hoon Kang
This study investigated the relationship between the CDS (credit default swap) market with the FX spot (FX swap) market, including the period of recent global financial crisis.A…
Abstract
This study investigated the relationship between the CDS (credit default swap) market with the FX spot (FX swap) market, including the period of recent global financial crisis.
A measure for market efficiency is the condition that the derivative markets dominate the asset market in price discovery. In our case, however, FX market should be leading the CDS market. We found FX (spot and Derivatives) market has co-integration relationship with CDS market. Looking at Gonzalo Granger (GG) and Hasbrouck's price discovery measure, we found the FX spot and derivatives market dominated CDS market in price discovery.
This study has also examined the direction of shock spillover and volatility transmission between Korean CDS spread and Foreign exchange spot (FX swap) markets using the VECM bivariate GARCH approach. Our evidence suggested the presence of bi-directional shock volatility and volatility transmission between the CDS market and FX spot market partially exist. However, volatility spillover effects from CDS market to FX Swap market are stronger than in the reverse direction during the global financial crisis, indicating that the CDS spread signaling sovereign risk play a more important role in influencing the volatility of FX derivatives market.
There are some particular features in FX market. The volatility and shock of CIP deviations reflecting arbitrage opportunities in FX swap market are influenced by those of CDS spread in tranquil period prior to Lehman failure. But after Lehman failure CDS played a crucial role in signaling credit risk in FX derivatives market. We found that higher liquidity and trading volume of market matters more in price discovery and information transmission.
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Sang Hoon Kang and Seong-Min Yoon
This paper investigates the price discovery, volatility spillover, and asymmetric volatility spillover effects between the KOSPI 200 market and its futures contracts market. The…
Abstract
This paper investigates the price discovery, volatility spillover, and asymmetric volatility spillover effects between the KOSPI 200 market and its futures contracts market. The investigation was performed using the VECM-DCC-GARCH approach. In the case of returns, we found a significant unidirectional information flow from the futures market to the spot market; this implies that the KOSPI 200 futures market plays an important role on the price discovery in the spot market. In addition, we found a strong bi-directional casualty involving the volatility interaction between the spot and futures markets; this implies that market volatility originating in the spot market will influence the volatility of the futures market and vice versa. We also found strong asymmetric volatility spillover effects between the two markets.