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Article
Publication date: 10 October 2016

Jaemin Kim, Joon-Seok Kim and Sean Sehyun Yoo

The authors investigate the 2008-2009 short-sales ban in Korea, one of the most comprehensive and restrictive short-selling bans worldwide. The purpose of this paper is to…

Abstract

Purpose

The authors investigate the 2008-2009 short-sales ban in Korea, one of the most comprehensive and restrictive short-selling bans worldwide. The purpose of this paper is to examine: whether the ban stopped a destabilizing effect, if there was any, of short-selling activities; whether the ban improved or deteriorated the informational efficiency or the price discovery process of the stock market; and whether the ban had any impact on market liquidity.

Design/methodology/approach

Multiple regression; vector autoregression analysis; and generalized autoregressive conditional heteroskedasticity analysis.

Findings

The authors find no evidence that short-sales have a market-destabilizing effect and thus, restricting short-selling has a market-stabilizing effect. On the contrary, the short-selling ban is associated with an increase in return volatility and a deterioration of the price discovery process, particularly for the stocks without derivatives traded on them. The authors also find evidence of a liquidity decrease for short-sale intensive stocks. However, the evidence is inconclusive as to whether the market efficiency and liquidity changes are solely the result of the short-sales ban or the compound effects of both the ban and the concurrent progress of the financial crisis.

Originality/value

The literature does not provide a conclusive view on the effects of short-sales or restrictions thereof on the stock market. Also, the existing research on recent worldwide shorting bans often lack empirical scope (e.g. 32 stocks for UK; three weeks for USA). In contrast, the short-sales ban in the Korean stock market, one of the most comprehensive and restrictive short-selling bans worldwide, lasted for eight months for all the listed stocks and is still in effect for financial stocks. The authors find no evidence that short-sales have a market-destabilizing effect and thus, restricting short-selling has a market-stabilizing effect.

Details

International Journal of Managerial Finance, vol. 12 no. 5
Type: Research Article
ISSN: 1743-9132

Keywords

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Article
Publication date: 22 February 2008

Jaemin Kim and Nikhil Varaiya

Due to insufficient disclosure on open market share repurchases in the USA, at any given point in time, outside shareholders have no knowledge of whether their firm is…

Abstract

Purpose

Due to insufficient disclosure on open market share repurchases in the USA, at any given point in time, outside shareholders have no knowledge of whether their firm is executing open market share repurchase trades. It is hypothesized that such information disparity between outside shareholders and insiders of a repurchasing firm creates asymmetric opportunities for insiders to time their sell trades in a period when the firm is engaged in buyback trading of its own shares. Insiders have an incentive to sell when the firm is in the market supporting the price by repurchasing its shares. The purpose of this study is to examine this hypothesis (insider timing hypothesis) by investigating insiders' trading activities during the periods of corporate share buyback trading.

Design/methodology/approach

Multiple regression analyses are used to explore relations among trades by insiders, corporate share buyback trades, and a number of other control variables.

Findings

This study finds evidence that insiders do increase the net number of shares sold in a fiscal quarter when the firm is in the market engaged in share buyback trading.

Originality/value

This study suggests the possibility of insiders' opportunistic trading behavior during the periods of corporate open market share buyback trading.

Details

Review of Accounting and Finance, vol. 7 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

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Article
Publication date: 8 February 2016

Hyung Cheol Kang and Jaemin Kim

This study aims to examine whether a switching decision between a family CEO and a non-family professional CEO has a different effect on firm performance and what…

Abstract

Purpose

This study aims to examine whether a switching decision between a family CEO and a non-family professional CEO has a different effect on firm performance and what determines such a decision by family firms.

Design/methodology/approach

This study uses multiple regressions, Probit and univariate analyses, based the sample of family-controlled Chaebol firms in Korea for the 11-year period from 2001 to 2011.

Findings

Evidence found was consistent with the family entrenchment hypothesis: firms experiencing declining Q value are more likely to replace family CEOs with non-family CEOs, and that these firms, having switched to non-family CEOs, exhibit an improvement in firm performance as measured by the change in Q value. On the other hand, for those firms that replace non-family CEOs with family member CEOs, no evidence was found that the switching decision either decreases or increases firm performance. The results of Probit and univariate analyses suggest that firms switching to family CEOs tend to be larger, stock-exchange listed and more “central”, with more cash flow rights held by the controlling families and with relatively more equity holdings in the other affiliated firms of the same Chaebol group. In contrast, firms switching to non-family CEOs tend to be smaller, unlisted and less “central”, with less equity holdings in the other affiliated firms of the same Chaebol group.

Originality/value

This study sheds light on the different value implications and determinants of a decision between “family CEO” and “non-family CEO”.

Details

Review of Accounting and Finance, vol. 15 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

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Article
Publication date: 8 February 2008

Jaemin Kim, Kuntara Pukthuanthong‐Le and Thomas Walker

The extant literature on initial public offerings (IPOs) generally assumes that a high degree of pre‐IPO leverage serves as a positive signal of firm quality as it forces…

Abstract

Purpose

The extant literature on initial public offerings (IPOs) generally assumes that a high degree of pre‐IPO leverage serves as a positive signal of firm quality as it forces a firm's managers to adhere to tough budget constraints. The purpose of this paper is to question the validity of this assumption when it is indiscriminately applied to all firms, while other potentially important determinants of a firm's optimal capital structure are ignored. High‐tech versus low‐tech firms are specifically focused on.

Design/methodology/approach

Multivariate regression controlling is used for various firm and offer characteristics, market and industry returns, and potential endogeneity between investment bank rankings, price revisions, and under‐pricing.

Findings

It is found that debt only serves as a signal of better firm quality for low‐tech IPOs, as reflected in smaller price revisions and lower under‐pricing. For high‐tech IPOs, the effect of leverage is reversed: for these firms, higher leverage is associated with increased risk and uncertainty as reflected by higher price revisions and greater under‐pricing. The results remain significant after controlling for various firm variables as mentioned above.

Practical implications

The research results allow managers of high‐tech firms that contemplate going public to better understand the effect their company's capital structure will have on the pricing of their IPO. Prior research generally suggests that – irrespective of a firm's underlying characteristics – higher financial leverage results in lower under‐pricing. The findings highlight the falsity of this generalization and point out that it only holds for low‐tech firms. Firms that operate in a high‐tech sector, on the other hand, will leave less money on the table if they use equity rather than debt financing.

Originality/value

It is shown that leverage only serves as a positive signal for low‐tech firms. The IPOs of these firms generally undergo smaller price revisions and are less under‐priced than the IPOs of low‐tech firms that use little debt in their capital structure. While this result is consistent with earlier studies, it is show that the relationship between these variables reverses for high‐tech IPOs. Specifically, it is found that high‐tech IPOs with high leverage undergo larger price revisions and are more under‐priced than high‐tech firms with low leverage. In contrast to earlier findings, this suggests that for high‐tech IPOs, higher leverage implies increased ex‐ante uncertainty and risks.

Details

Management Decision, vol. 46 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 2 October 2007

Jaemin Kim

The paper seeks to examine changes in daily return volatility associated with open market share repurchases.

Abstract

Purpose

The paper seeks to examine changes in daily return volatility associated with open market share repurchases.

Design/methodology/approach

Univariate analyses, control sample analyses, and multiple regression analyses are employed to explore relations between daily return volatility and a number of variables.

Findings

This study finds evidence that an open market share repurchase firm, by actively buying back its shares when the share price falls, reduces daily return volatility. The results suggest that it is the subsequent actual buyback trading activity, not the announcement, that is significantly negatively associated with changes in daily return volatility. CAPM beta, a measure of systematic risk, decreases only when the firm is in the market actively repurchasing its shares.

Originality/value

To the best of the author's knowledge, this study is probably the first to connect changes in daily return volatility to actual buyback trading activities of share repurchase announcing firms. Changes in daily return volatility, or total risk, not only affect systematic risk, but also are important to underlying option holders, arbitrageurs, and investors who hold undiversified portfolios.

Details

International Journal of Managerial Finance, vol. 3 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

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Article
Publication date: 23 September 2013

Milorad M. Novicevic, John Humphreys, M. Ronald Buckley, Foster Roberts, Andrew Hebdon and Jaemin Kim

– The purpose of this paper is to derive practical recommendations from Follett's conceptualization of the student-teacher relations.

Abstract

Purpose

The purpose of this paper is to derive practical recommendations from Follett's conceptualization of the student-teacher relations.

Design/methodology/approach

The paper employs a narrative historical interpretation of Follett's speech, which was originally given at the Boston University in the late Fall of 1928, but for the first time published in 1970.

Findings

Follett's conceptualization of the teacher-student relation resonated well with the contemporary conceptualization of constructive-developmental theory of leadership.

Research limitations/implications

The findings of this study should be interpreted with recognition that the single case study has inherent limitations in terms of generalization.

Originality/value

This paper offers unique practical recommendations for instructional methods of experiential learning based on reflection, problem solving and critical thinking, which are based on the authors' analysis of Follett's works and constructive-developmental scholarship.

Details

Journal of Management History, vol. 19 no. 4
Type: Research Article
ISSN: 1751-1348

Keywords

Content available
Article
Publication date: 4 November 2014

Fevzi Okumus

Abstract

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Content available
Article
Publication date: 23 September 2013

Shawn M. Carraher

Abstract

Details

Journal of Management History, vol. 19 no. 4
Type: Research Article
ISSN: 1751-1348

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Article
Publication date: 14 May 2018

MiRan Kim, Laee Choi, Carl P. Borchgrevink, Bonnie Knutson and JaeMin Cha

This study aims to examine the effects of employee voice (EV) and team-member exchange (TMX) on employee job satisfaction (EJS) and affective commitment to an organization…

Abstract

Purpose

This study aims to examine the effects of employee voice (EV) and team-member exchange (TMX) on employee job satisfaction (EJS) and affective commitment to an organization among Gen Y employees of hotel companies in the USA and China.

Design/methodology/approach

Using a Qualtrics panel, a self-administered online survey was completed by Gen Y hotel employees in the USA and China. Multiple-group structural equation modeling analysis examined relative moderating effects on the proposed framework.

Findings

The effect of EV on EJS was greater in China than in the USA. However, Gen Y hotel employees in the USA who experience high-quality TMX are more likely to have greater EJS than they would in China.

Research limitations/implications

Further studies need to be carried out in other hospitality sectors or non-hospitality business areas with different cross-national contexts.

Practical implications

Chinese hotel managers need to develop effective ways to encourage Gen Y EV. To promote TMX of Gen Y employees in the USA, supporting team-oriented projects and/or evaluations can be an effective way.

Originality/value

This study advances previous cross-cultural studies by focusing on a generation subculture. It makes significant contributions to the hospitality literature, as it is the first among research studies that examines Gen Y employees’ extra-role behavior (EV) and TMX across different national cultures: the USA vs China.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 22 March 2011

SeungHyun Kim, JaeMin Cha, Bonnie J. Knutson and Jeffrey A. Beck

The primary purpose of this paper is to develop a parsimonious Consumer Experience Index (CEI) and then identify and validate the dimensionality of the experience concept.

Abstract

Purpose

The primary purpose of this paper is to develop a parsimonious Consumer Experience Index (CEI) and then identify and validate the dimensionality of the experience concept.

Design/methodology/approach

The study employed a four‐step methodology. After conducting a pre‐test and pilot test, data were collected from 397 adults via an online survey. A split‐sample technique was used for the data analysis. The first‐split sample (n=199) was used to conduct the exploratory factor analysis. Reliability, convergent validity, and discriminant validity were evaluated with a second‐half split sample (n=198) from confirmatory factor analysis.

Findings

Scale‐development procedures resulted in a seven‐factor model comprised of the following dimensions: environment, benefits, convenience, accessibility, utility, incentive, and trust. Overall, the 26‐item CEI is a reliable and valid measure to determine the underlying components of a consumer's experience.

Research limitation/implications

This study concentrates on an experience based on the general service delivery system rather than a specific industry or business sector. Applicability of this experience measure should also be evaluated in specific, but diverse, business sectors. By understanding these seven dimensions, management can develop effective marketing strategies for providing memorable experience for consumers.

Originality/value

Consumer experience has gone largely unmeasured. Built on the old business axiom that you cannot manage what you cannot measure, this validated CEI tool can provide businesses with an effective new management tool.

Details

Managing Service Quality: An International Journal, vol. 21 no. 2
Type: Research Article
ISSN: 0960-4529

Keywords

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