Volume 7, Issue 2

Supporting Underdogs and a Limited Condition

Bangwool Han, Sunhee Choi

Despite consumers’ high evaluation for a large wealthy company in general, the fact that consumers positively assess and support the relatively smaller and less-prosperous companies are widely prevalent. This study verifies that consumers hold their nature in supporting underdogs yet identifies a boundary condition that hinders the support of the underdog: price. Consumers stop the positive assessment of the underdog when the cost to support the underdog increases. The result proposes that the positive behavior in supporting underdogs does not necessarily stand strong when the underdog is presented with a high price tag. The greater monetary value the consumers have to pay the less the degree of support underdogs becomes. This study argues that the initial, emotion based support for underdogs diminishes eventually when consumers purchase products of the price is very high.

Keyword: Underdogs, Top Dogs, Consumer Behavior, Competition, Price

Investigating Tourism Seasonality in Nepal

Badri Prakash Pokhrel, Jiyoung Jeong

Tourism industry is one of the largest source of foreign exchange and revenue in Nepal. The major objective of this study is to investigate the tourist arrival in Nepal on a monthly basis and its contributions in the economic development. Here, the calculated value of the Gini Coefficient (G) and Seasonality Index (SI) were used to evaluate the tourism seasonality in Nepal in the period of 1991-2013 (23 years). Gini Coefficient was found in lowest 0.1302 having low seasonality in Nepal. Tourists prefer to visit from October to November the most, due to the suitable weather for trekking and mountain climbing. At that seasons, there are different kind of cultural and religious festivals, as well the weather is perfectly pleasant with a clear sky and green countryside with great visibility. These factors attract tourists to travel in Nepal at autumn season. Thus, the number of tourists’ arrival in Nepal at autumn is relatively higher than other seasons (Pokhrel and Jeong, 2015). In this study, we also discuss the negative impacts of seasonality on Nepalese tourism and some suggestions to reduce the negative effects for attaining the positive outcome.

Keyword: Economic impact, Tourism, Seasonality, Gini Coefficient, Seasonality Index, Nepal

Success and Failure of the Overseas M&A-Cases of Chinese Enterprises

Ruo Nan Zhang, Taewon Kang

Under the era of globalization, countries all around the world depend on one another. This trend allows international brownfield investment - mergers and acquisitions- to be an obvious feature of the world economy. As a member of the World Trade Organization, China has opened its economy. The economy enables Chinese firms to compete internationally. Compared with ones in developed countries, China’s cross-border investment is still at an infant stage in terms of investment volumes. Nonetheless, multinational corporations in China are growing. In this regard, it is necessary to do research on success and failure of Chinese firms’ international brownfield investment.

Keyword: Overseas Mergers and Acquisitions, Chinese Enterprises, International Business, Multinational Corporations

A Study on Interim Measure on Arbitral Proceedings in China

Jungsun Lee, Cheng Cheng

The interim measure is a corrective measure aiming for protection of one party’s rights until the dispute settlement. For example, if party defeated get rid of or evade the object of arbitration under arbitration proceeding, the effectiveness of arbitral award is lost. However, because the irreparable loss will be occurred if the party won’t be able to do emergency disposition, it is necessary to allow the interim disposal in order to protect the position of the parties during period waiting for results of arbitral award. Nevertheless, the rights for interim disposal of arbitral tribunal won’t be allowed according to current legislation of each country. Moreover, even though the judgment is made, it often occurred that the recognition and enforcement of interim awards won’t be allowed. In case of China, China adopts the exclusive of a court system without authorizing the rights for interim disposal to arbitral tribunal. With this background, this study attempts to analyze the features and problems related to the interim disposal on the arbitral proceeding in China. Through the analysis, this study intends to suggest precautions related to interim disposal to Korean companies.

Keyword: Conservative Measure, Interim Measure, Commercial Arbitration, Chinese Arbitration

The Relationship between Accounting Information Quality and Corporate Cash Holdings

Kangdeuk Choi, Yongwoo Jung, Jinho Baek

The purpose of this study is to examine the effect of accounting information quality on the level of cash holdings. This paper uses 2,672 firm-year observations for firms listed in the KRX KOSPI Market over the 2009 to 2013 to analyze that firms with good accounting information quality hold lower cash levels than firms with poor accounting information quality. We compute the accounting information quality for each firm following three models: (1)accruals quality by Dechow and Dichev(2002), (2)abnormal current accruals by Teoh et al.(1998), and (3)abnormal accruals by Dechow et al.(1995). The results show that there is the substitution effect between corporate cash holdings and accounting information quality. This results suggest that enhancing accounting information quality firms might improve the management of cash holdings, reducing their cash levels in balance sheet and, consequently, improving investment efficiency.

Keyword: Accounting Information Quality, Cash Holdings, Information Asymmerty, Default Risk