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This paper examines the inflation hedging performance separated into expected and unexpected inflation in Korean equity funds. In particular, using the bootstrap approach, we identify whether the inflation hedging performance is based on skill or luck. We use the equity funds of the average net asset value (NAV) over 5 billion Korean won and over the 80% stock position. The sample data cover the period from January 2002 to March 2015. The main findings are as follows. First, most equity funds demonstrate a hedging performance against the unexpected inflation shock and this hedging performance seems to come from the fund manager’s skill. Second, our findings are robust across the sieve bootstrap results for the serial dependence and heteroscedasticity. Third, the equity funds have slightly different inflation hedging performances depending on their investment style. Among the investment styles, small-cap, growth, or small and growth style funds demonstrate more hedging performance against unexpected inflation shock. This hedging performance seems to come from the fund manager’s skill. Finally, in the case of the funds separated by winner and loser, the winner funds have more hedging performance for unexpected inflation shock than the loser funds.

The purpose of this paper is to examine how Korean firm American Depository Receipts (ADRs) performed vs a US index and an Asia Pacific regional index. ADRs have been known to help cause-emerging economies become more developed and foreign exchange markets become more stable.

The study utilizes standard ADR/IPO excess return methodology and presents returns on a month-by-month and cumulative basis for a three-year holding period beginning with the day of listing. Excess holding period returns are also provided.

The Korean firm ADRs trading on the NASDAQ underperformed both the US index and the regional Asia Pacific index for the first three years of trading. However, the Korean ADRs listed on the NYSE outperformed both the US index and the Asia Pacific index for the three-year holding period.

This paper shows how including equities of Korean firms traded in US markets in a stock portfolio helps to provide international diversification benefits. Solid performance vs market indexes may make subsequent and new issues from Korea more attractive in US equity markets.

The purpose of this paper is to provide a survey of recent studies on Korean firms’ financial policies and their interactions with financial markets, and suggest directions for future research.

The authors review the finance research on Korean firms and markets, focusing on the articles published in the last 20 years.

This survey of the recent Korean finance literature covers the research on the capital structure and the distinct financing behaviors of chaebol-affiliated firms and independent firms; the factors affecting the costs of capital and firms’ preferences for capital budgeting methods; raising capital through public and private equity issuance; corporate governance and the market for corporate control; payout policies; and bank-firm relationship. The authors suggest a number of future research directions that may lead to significant contributions to the literature.

This paper provides the first comprehensive review of the post-crisis corporate finance literature in Korea.

The relationship between diversification and organizational performance has been the subject of numerous studies over the years (Palepu, 1985; Rumelt, 1974). However, strategy scholars have universally defined diversification using a narrow definition, namely that corporate diversification is a function or reflection of the number of products/businesses in a firm's portfolio. The present study argues that such a definition has become outdated given the impact of international market diversification (Kim, Hwang, & Burgers, 1989; Rugman, 1979). Integrating these two views of corporate diversification, we investigate diversification‐performance differences using market‐ and product‐based measures of diversification and an international sample. Results suggest that the traditional model of diversification may not be applicable to all countries and that international differences exist.

The purpose of this paper is to examine the relationships among an individual athlete’s brand equity, overall spectator satisfaction at sporting events and behavioral intentions.

The convenience sampling method was used when approaching potential participants among spectators of the LG Whisen Rhythmic All Stars 2013, a sporting event in which celebrated sports players perform choreographed dance routines. A total of 350 surveys were completed in Go-Yang, South Korea. Of the surveys collected, 20 were discarded due to excessive missing values, resulting in 330 usable surveys.

Using structural equation modeling, this study found that the brand equity of an individual athlete positively and directly affects the overall sporting event satisfaction and behavioral intentions, including re-purchase and word-of-mouth intentions among event attendees, which are factors that are mediated indirectly by satisfaction.

This study shows that the brand equity of an individual athlete can increase the spectator satisfaction levels in a similar manner to the brand equity of a sports team or product.

Reports the results of a study that examined industrial salespeople′s perceptions of organizational fairness (a measure of perceived equity) across the United States, Japan and Korea. Prior research has found that employees′ perceived equity is associated with several job‐related responses, such as worker job satisfaction, absenteeism and turnover. Preliminary evidence suggests that perceived equity may be culturally based. Findings of the investigation indicate that salesperson perceptions vary across the three countries. Discusses the implications of the findings.

This paper examines the relationship between international diversification and performance by matching a sample of 400 U.S. and 400 Korean firms on industry type and testing the relationship over five years (1992–1996). Results indicate that U.S. firms show a positive association with regard to international diversification and performance, but a negative relationship between product diversification and performance. Korean firms, however, show a positive association with both types of diversification. In addition, Korean firms' strategies were associated more with sales‐based measures, while U.S. firms were associated more closely with profit‐based measures. These results suggest that the two countries do not approach diversification in the same way.

This study investigates the performance distribution of passive funds in the Korean market and compares it with the performance distribution of active funds. The key findings are as follows, first, the performance distribution of passive funds has a thicker tail compared to that of active funds. There are passive funds that achieve outstanding performance, and both the false discovery rate (FDR) analysis and simulation analysis suggest that their outperformance is driven by managerial skill rather than luck. Second, passive fund performance is more persistent compared to active fund performance. Third, investors are less responsive to passive fund performance compared to active fund performance. The fund flow-performance relationship is significantly positive for active funds but not for passive funds. This implies that investors may not recognize the managerial skills of passive funds.

Factors other than job performance might affect judgments about pay fairness for employees doing the same job, and the strength of these factors may differ across national cultures. This study uses a multivariate, policy‐capturing approach to compare the way that characteristics of employees—seniority, education, family size, individual job performance, and work effort—affect judgments about the fairness of pay received by employees in Korea and the United States. Regression models of the determinants of judgments about pay fairness by Korean and U.S. nationals were estimated. Korean pay fairness judgments were found to be relatively more sensitive to differences in seniority, education, and family size, and American pay fairness judgments were relatively more sensitive to variations in individual job performance and work effort.

This paper analyzes new outward foreign direct investment (OFDI) patterns, OFDI performance after the financial crisis in Korea, and the anticipated impact of these changes in OFDI on the Korean economy. This paper examines current trends in Korean OFDI activities from various viewpoints, including the geographical distribution of investments, industry, size, and investors’ equity share. This paper also verifies the relationship between OFDI and the Korean economy through an in-depth analysis of motives, performance, and prospects of Korean OFDI. Finally, two emerging issues regarding Korean OFDI are discussed.