Sungho Cho, Minyong Lee and Taewoo Kim
While studies have highlighted the benefits of athlete endorsement as a means of strategic marketing communication and public relations, there are risk factors associated with…
Abstract
Purpose
While studies have highlighted the benefits of athlete endorsement as a means of strategic marketing communication and public relations, there are risk factors associated with the practice, especially when a celebrity endorser is involved in immoral incidents or social activism. This study examined the impacts of athlete endorsers’ controversial behavior on sponsors. It scrutinized the change in publicly traded corporations’ shareholder value when their athlete endorsers were implicated in either immoral conduct or social activism.
Design/methodology/approach
Using the event study analysis, this study investigated the sponsored corporations’ abnormal returns around athlete endorsers’ involvement in immoral incidents and social activism. Total 34 cases (18 immoral scandals and 16 social activism) were collected from 2009 to 2019.
Findings
The data analysis revealed a significant difference in abnormal returns between the two different types of incidents for the four different windows (2, 4, 8 and 15 days) after the date of the focal event. While scandals of immoral conduct did not cause significant loss in shareholder value, cases of social activism showed negative abnormal returns for sponsoring corporations.
Originality/value
This study presented the first comparative analysis of how endorsers’ immoral behavior and social activism impacted on the shareholders’ value of sponsoring firms. Using stock performance data, the findings provided the empirical evidence in stock markets’ different reactions regarding scandals and social activism. The study contributes to the relevant body of literature by comparing the different contexts in celebrity endorsement.
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Ho Wook Shin, Sungho Cho and Jong Kwan Lee
Integrating the resource-based view (RBV) with pay dispersion research, the authors examine how the allocation of resources between hiring new employees and compensating current…
Abstract
Purpose
Integrating the resource-based view (RBV) with pay dispersion research, the authors examine how the allocation of resources between hiring new employees and compensating current employees, as well as the allocation of resources among new employees, affects organizational performance.
Design/methodology/approach
The authors use panel data on Major League Baseball teams. The authors also use system generalized method of moments (GMM) estimations to control for the impact of past performance on current performance, unobserved individual heterogeneity and omitted variable bias.
Findings
The authors find that the larger the portion of the human resources (HR) budget allocated to hiring new employees, the poorer organizational performance becomes unless the focal organization has already significantly underperformed. The authors also find that pay concentration among new employees has a positive impact on organizational performance unless the focal organization has already significantly overperformed.
Originality/value
This study extends RBV research by examining how resource allocation patterns affect organizational performance, which has rarely been studied. Moreover, by showing the organizational context's significant effect on the outcome of financial allocation for resource acquisition, this study extends both the RBV research and the pay dispersion research.
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This empirical study examines the psychometric comparability of Aaker's Brand Personality Scale (Aaker, 1997) in sponsorship matching. It employs a structural validation protocol…
Abstract
This empirical study examines the psychometric comparability of Aaker's Brand Personality Scale (Aaker, 1997) in sponsorship matching. It employs a structural validation protocol - the congenerity test (Ohanion, 1990) - to investigate the extent to which sports events and sponsors can be psychometrically matched. The results show that sports events and sponsors are comparable only in terms of limited numbers of the dimensions of the a priori scale. Theoretical and practical implications are discussed.
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Seoung-Wook Whang, Kenneth Sungho Park and Sangyong Kim
The purpose of this paper is to identify the critical success factors (CSFs) to implement integrated project delivery (IPD) systems in the Korean construction industry.
Abstract
Purpose
The purpose of this paper is to identify the critical success factors (CSFs) to implement integrated project delivery (IPD) systems in the Korean construction industry.
Design/methodology/approach
This study categorized potential CSFs and analyzed them using factor analysis and multiple regression analysis to choose the best ones based on responses from Korean construction experts.
Findings
In total, 29 potential factors were selected and categorized into 7 CSFs using factor analysis.
Originality/value
The outcomes of the study are useful as a reference for applying the IPD system in different developing countries and mid-sized construction industries.
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Sungho Choi, Iftekhar Hasan and Maya Waisman
The 1997 financial crisis in Asia has entailed significant changes and governance reforms in the Korean banking industry. This study investigates the impact of corporate…
Abstract
The 1997 financial crisis in Asia has entailed significant changes and governance reforms in the Korean banking industry. This study investigates the impact of corporate governance on the risk and return of Korean banks during the 10 years that followed the financial crisis era. In particular, we investigate the ownership structure of banks, the extent of involvement of foreign institutions and investors in ownership and board membership of Korean banks, and the heterogeneity of board structure on bank performance. Our findings indicate that foreign ownership, the extent of external board involvement, and the presence of foreign directors on the board are associated with significantly higher bank returns. Although foreign ownership and the number of outside board directors are associated with lower risk, the involvement of foreign board members is positively associated with risk. The results are fairly robust to a battery of tests and control variables, and offer the first detailed empirical documentation of the Korean banking governance reform and its achievements since 1997.