bluuebunny/crossref_metadata_2025 huggingface dataset:
Smart Beta Strategy in Korean Stock Market
Authors: Yoon Bohyun , Sohn Kyoung-Woo , Liu Won-Suk
Published: September 2020

Recently, due to its passive property, the smart beta has become one of the most interest topics in searching the alpha. In this paper, we attempt to show whether the smart beta strategy generate abnormal excess return, in tradition, which are known as the exclusive property of active fund. Further, we attempt to verify the key drivers of the alpha in the smart beta portfolios. For this purpose, we categorize various smart beta strategies by their scheme for asset picking and risk reduction. Then, based on our categorization, we evaluate and analyze the performance of smart beta strategy in perspective. Our empirical analyses show following results: applying alternative risk reduction scheme to traditional market index portfolio would results in enhanced efficiency; however, without combining any asset picking scheme, the performance of the smart beta portfolio seems explained by the Fama-French 3 factor. Our results lead us to conjecture that it is not the portfolio weighting scheme alone but in association with asset selection scheme that generate significant alpha in the smart beta strategy. In actual practice, our results imply that any passive fund may succeed in seeking the alpha without active strategy, thereby avoiding the risk of market timing and saving the management cost.
The Issues and Improvement Plans of Pricing and Accounting of the Structured Derivatives : The Case of Zero-Coupon Callable Bond
Authors: Yang Jeong Phil , Chang Uk , Choi Young Soo
Published: September 2020

This study aims to deal with the valuation and accounting of complex derivative instruments. This study attempts to propose a convergence plan by presenting a pricing (fair value evaluation) alternative that considers the accounting process. In this paper, we choose a ZCCB as a representative structured derivative and conduct a case study.

Regarding the expected maturity of ZCCB, there is a need to adjust the historical expected maturity by reflecting the implied expected maturity. As a result of simulation and empirical analysis, it can be seen that the greatest feature of the expected maturity distribution is the Bi-Modal distribution redeemed immediately after the non-call period or at the maturity of the ZCB. Therefore, when using expected maturity, it would be more meaningful to use ZCB maturity date or just after non-call period date rather than the average.

Regarding whether ZCCB's SPPI test is satisfied, the ZCCB return rate is determined according to market input variables and bond issuance conditions and is already fixed at issuance, so it can be judged that the SPPI condition is satisfied.
A Study on the Fund Flow of Korean Capital Market
Authors: Baek Jae-Seung , Ha June Sam , Lee Sang Whi
Published: September 2020

In this paper, we examine whether fund market reactions are affected by the characteristics of categorized features of fund. To investigate the goal of the paper, we consider macroeconomic factors as well as financial characters. We classify fund flow into four groups depending upon type of fund and fund characters to determine which category is better to increase fund flow for capital market after these financial occurrence. In this regard, our research suggests important evidence about the effect of financial factor on fund flow with a case of an detailed situation in Emerging market. In order to test the hypothesis, we use seemingly unrelated regression (SUR) model to choose significant factors among various types of fund market-related changes. Our sample consisted of fund flows from 2006 to 2016 collected by Korean Financial Association and Bank of Korea. The empirical results are summarized as follows : First, we find that capital market index, exchange rate affect fund flows with time-lagged value changes. Second, the stock index fund and banking sector fund sales show strong positive relations with the fund flow changes. Third, values of the fund flow are significantly related with fund sales by asset management’s affiliated financial institution. These results are consistent with the hypotheses that the increase and decrease in the fund flows due to capital market situation are more pronounced as the financial factors fit. Our results suggest that it is necessary to consider the fundamental characteristics of fund flow changes as well as the external economic environment to get a more efficient market performance and supervision.
Analyzing the Network Structure of Spillover Connectedness Across Index Futures Markets During Market Distress Periods
Authors: Kang Sang Hoon
Published: September 2020

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.
Economic Benefits of Derivatives for Long Term Investments-Equity Linked Securities
Authors: Kang Byung Jin
Published: September 2020

In this paper, we examined the economic benefits of derivatives in the aspect of investment assets. Our study differs from previous studies in that it analyzed the differences in the economic benefits of derivatives between for short term investors and for long term investors, and focused on the equity linked securities (ELS) rather than plain vanilla derivatives. We found the following results from the analysis over 1 to 20 years of investment horizons for four different types of equity linked securities, including ‘Auto-callable ELS’, ‘Knock-out ELS’, ‘Digital ELS’ and ‘Reverse Convertible ELS.’ First, equity linked securities contribute to improving the performance of the optimal portfolio for most investors, except for some investors who have extremely low degrees of risk aversion. Second, these economic benefits of equity linked securities are consistently observed regardless of investment horizon. Third, investment demand for equity linked securities is higher for investors with a medium-level of risk aversion rather than for aggressive or conservative investors. In addition, equity linked securities are mainly used as substitutes for risk-free bonds rather than risky assets (i.e., stocks). Finally, most of our results are still valid even when different market environments are assumed or alternative decision rules are used to derive investors’ optimal portfolio.
Empirical Study of Volume and Voltility Effects Associated with ELS and ELW Issuance
Authors: Nam Kyung-Tae , Cho Hoon
Published: September 2020

ELS and ELW markets have been increasing sharply and become one of important financial markets in Korea since their inception. The purpose of this paper is to examine the impacts of issuance and maturity of ELS and ELW on both volume and volatility of underlying stocks in Korea. In this paper we follow Faff and Hiller (2005) and Antoniou and Holmes (1995) to examine the hedging effect hypothesis. The empirical results indicate that there is a significant effect of ELS issuance on the volume and volatility of underlying stocks, which is consistent with the hedging effect hypothesis. However, the empirical results of ELW issuance and maturity on those of underlying stocks do not support the hedging effect hypothesis but do support the complete market hypothesis.
Overpriced Puts Puzzle in KOSPI 200 Options Market
Authors: Choi Byungwook
Published: September 2020

The purpose of this paper is to examine the argument that the put options traded in the exchanges are too high, compared to the asset prices based on the classical CAPM model, and thus the short position of the put option would make a significant profit from trading. In order to explore the earlier report, this paper, using the KOSPI 200 index options market price, estimates the historical rate of return on several option trading strategies such as naked option, protective put, covered call, straddle, and strangle. Secondly this paper compares the historical rates of return on the option trading strategies and Sharpe ratios with those generated by Monte-Carlo simulation and examines whether the historical option returns are inconsistent with Black-Scholes model, Jump-diffusion model, Stochastic Volatility model, or Stochastic Volatility with Jump model. Thirdly, this paper computes the optimal asset allocation ratio among the risk-free asset, risky assets, and option trading strategies in the viewpoint of rational investors who maximize the CRRA utility function.

The results show that the historical returns on short position of ATM and OTM puts are too high to explain based on the classical CAPM, and the optimal allocation ratios among put, risky asset, and the risk-free asset are different from those derived using Monte-Carlo simulation.
Volatility Spillover between the KOSPI 200 Spot and Futures Markets Using the VECM-DCC-GARCH Model
Authors: Kang Sang Hoon , Yoon Seong-Min
Published: September 2020

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.
The Relation between Two Kinds of Par Yield Curves: Benchmark Par Yield Curve and Company Par Yield Curve
Authors: Oh Seung Hyun
Published: September 2020

This study investigates the relation between two kinds of par yield curves estimated in Korean bond market: benchmark par yield curve and company par yield curve. The former is published as a benchmark for corporate bonds with a given credit rating and the latter is utilized for valuing a specific corporate bond. Spot rate curves are extracted from the par yield curves by applying bootstrapping method. The spreads between the two spot rate curves are analyzed for 7 years (2005~2012) of corporate bond transaction data. Six results are obtained from various sub-samples classified by credit rating and maturity. 1) Most of the sample means of the spreads are above zero. 2) Negative average spreads are found mainly from the sample of BBB rated bonds. 3) Average spreads from the sample with credit greater than or equal to A tend to positively related with credit risk. 4) Absolute value of the average spreads are positively related with credit risk. 5) The average spreads are increased rapidly after the year of 2009. 6) The proportion of sub-samples having negative average spreads are decreased as the average maturity of the sample is shortened.
CDS Premium and Jump Risk in Stock Market
Authors: Chang Kook-Hyun , Yoon Byung-Jo
Published: September 2020

This paper tries to empirically investigate whether the jump risk of Korean stock market may be statistically useful in explaining the Korean CDS (5Y) premium rate. This paper uses the jump-diffusion model with heteroscedasticity to estimate the conditional volatility of KOSPI from 7/2/2007 to 7/30/2010.

The total volatility of Korean stock market is decomposed into a heteroscedasticity and a jump risk by using the jump-diffusion model. The finding is that the jump risk in stead of heteroscedasticity in Korean stock market can explain the Korean CDS premium rate.
Structured Products Markets and Implied Volatility Distortion
Authors: Yoon Sun-Joong
Published: September 2020

This study verifies the existence of implied volatility distortion by the rapid growth of structured products such as Equity Linked Securities (ELS) in Korean financial markets and provides the policy implications to overcome such a distortion. The most ELS products issued in Korea have a step-down auto-callable payoff structure consisting of short position in down-and-in barrier put options and long position in digital call options. Financial companies which have issued ELS are exposed to the volatility risk, i.e. long vega position, and tend to execute the volatility transactions of short vega. For instance, the financial companies issue Equity-Linked Warrants or sell listed/over-the-counter vanilla options, both of which have short position in volatility risk. Accordingly, the demand for selling volatility is stronger than for buying volatility in the Korean financial markets. According to the empirical results, we conform that the rapid growth of the ELS products induces the pressure for lowering volatility and furthermore, the volatility spreads, defined as the difference between implied volatility and realized volatility, also decrease with respect the amount of the newly issued ELS. Lastly, to mitigate the volatility distortion effect, we suggest to list VKOSPI-related derivatives securities such as VKOSPI futures and options, which in turn balance the trading demands for selling and buying volatilities.
Leveraged/Inverse ETFs and Volatility in the Korean Market
Authors: Kim Soo-Hyun , Lee Kyuseok , Kang Hyoung-Goo
Published: September 2020

There have been the concerns that leveraged and inverse ETFs contribute to the financial crisis of 2007~2008. Several researchers have investigated this important issue. However, there is no consensus yet whether leveraged and inverse ETFs destabilize a financial market. Financial stability is an important subject for policy makers, practitioners and academia. ETFs are one of the most important financial innovations. In particular, leveraged and inverse become more and more influential. Therefore, such lack of academic and practical consensus is a significant challenge. In this paper, we analyze whether leveraged and inverse ETFs affect the price and volatility of Korean market. Thus, our research contributes to the body of literature and to the design of public policies and trading strategies. Our research can also advance the development of ETF industry, one of the fastest growing and promising sector in the Korean financial market.
ELS Hedging Method based on CVaR Using Stocks Portfolio and Futures
Authors: Lee Kyunghee , Lim Hyuncheul , Choi Youngsoo
Published: September 2020

In this paper, we analyze the hedging risk intrinsic in the auto call step down equity linked securities (ELS) based on two underlying indices including HSCEI, which are major products of the ELS market. And we also propose new hedging strategies based on Conditional Value at Risk (CVaR) using stocks portfolio and futures. Due to the non-symmetric bimodal distribution for return of ELS, which comes from the Knock-In (KI) property inherent in step down ELS structure, and inherent shortfall risk in the ELS structure, a local delta hedging strategy has a limit. In addition, hedging using futures are difficult because of 1) frequent roll-over related with HSCEI futures, 2) price difference between underlying index and futures and 3) lack of futures liquidity caused by excessive ELS issue based on HSCEI. As a way to manage these problems, this paper proposes new hedging strategies : First, construct stocks portfolio tracking index using method suggested by Rockafellar and Uryasev (2002), Alexander, Coleman and Li (2006). Second, do hedging by using this stocks portfolio and futures. This paper shows that 1) index-tracking stocks portfolio based on CVaR has a better performance and lower shortfall risk than index by comparing market ratio, information ratio and Sharpe Ratio, and 2) hedging using stocks portfolio is better than futures. As the policy proposals, if ETF, which tracks the underlying indices of ELS based on CVaR, is to be listed on the exchange (KRX), various kinds of product structures for mid-risk-mid-return structured products will be able to develop further, as well as offer more convenience with hedging.
The Valuation of Pass-Through Mortgage-Backed Securities in Korean Market
Authors: Tae Hyeon-Wuk , Seo Ung-Gi , Jang Bong-Gyu , Kim Jun , Roh Jong-Hyuk , Ahn Seryoong
Published: September 2020

This paper introduces a basic model and an extended model to evaluate the pass-through mortgage-backed securities (MBS) recently issued by Korea Housing Finance Corporation. The basic model assumes that the processes of interest rates, prepayment rates, and option-adjusted spreads have simple forms, of which parameters can be easily estimated by the market data available today. This paper presents the pricing formula on the basic model and the demonstrations under the present market data. We also suggest an extended model, a new but complicated model for pricing pass-through MBS, in which the interest rates and prepayment rates follow stochastic processes, and the option-adjusted spread is decomposed into one from refinancing and the other from mortgage turnover. However, since this kind of pass-through MBS has been traded in Korean financial market only recently, the market parameters in the extended model are not able to be estimated properly. We, instead, develop the pricing formula under the extended model and present the process of estimation of the parameters of the model. The participants in Korean MBS market can price the pass-through MBS for now under the basic model with limited set of data available, and later, when the market data is accumulated enough to estimate the parameters properly, they can take advantage of the extended model.
Analytical Approximations of American Call Options with Discrete Dividends
Authors: Bae Kwangil
Published: September 2020

In this study, we assume that stock prices follow piecewise geometric Brownian motion, a variant of geometric Brownian motion except the ex-dividend date, and find pricing formulas of American call options. While piecewise geometric Brownian motion can effectively incorporate discrete dividends into stock prices without losing consistency, the process results in the lack of closed-form solutions for option prices. We aim to resolve this by providing analytical approximation formulas for American call option prices under this process. Our work differs from other studies using the same assumption in at least three respects. First, we investigate the analytical approximations of American call options and examine European call options as a special case, while most analytical approximations in the literature cover only European options. Second, we provide both the upper and the lower bounds of option prices. Third, our solutions are equal to the exact price when the size of the dividend is proportional to the stock price, while binomial tree results never match the exact option price in any circumstance. The numerical analysis therefore demonstrates the efficiency of our method. Especially, the lower bound formula is accurate, and it can be further improved by considering second order approximations although it requires more computing time.
The Effect of Ambiguity Aversion on Precautionary Effort
Authors: Hong Jimin
Published: September 2020

This study analyzes the effect of ambiguity aversion on precautionary effort under a two period model when background risk like income risk is added to loss. Precautionary effort only affects the probability of loss occurrence. The sufficient conditions under which a risk averse and ambiguity averse individual makes more effort than a risk averse and ambiguity neutral one are as follows. First, the distribution of background risk changes in type of first order stochastic dominance. Second, the distribution of background risk changes in type of second order stochastic dominance and the utility function shows prudence. In both cases, AAA (absolute ambiguity aversion) should not increase. That is, AAA denotes DAAA (Decreasing Absolute Ambiguity Aversion) or CAAA (Constant Absolute Ambiguity Aversion). The effect of AAA is not observed in the existing literatures which assume a one-period model. In a one period model, the effect of AAA on precautionary effort of a long term may have ignored. Lastly, precautionary effort increases if and only if AAA is not increasing in cases when the background risk follows binary distribution or an individual is risk neutral and ambiguity averse.
The Pricing and Hedging using the Implied Information Conditioned on Martingale Restriction and Market Efficiency
Authors: Kim Moo Sung , Kang Tae Hun
Published: September 2020

This article empirically tests the time-correlation of implied information reflecting the return dynamics of KOSPI 200 markets in the view of the decision making and market efficiency. Because option prices are not perfectly correlated with each other and with the underlying asset, the information contents of the option are different from those of the underlying market price. And, under the non-complete of the market and the limited arbitrage, the information implied in option (underlying) market price may be more useful in the option (underlying) market than in the underlying (option) market.

The estimation results show that the time-correlation of incremental information are existed in performance of out-of-sample pricing and delta hedging conditioned on MR, a result which is not suggestive of the informational efficiency of the KOSPI 200 market. But, the decision marking using the systematic pattern may not be useful due to the option pricing models that allows moments of higher order than two reflecting the source of which the risk-neutrality assumption is strongly rejected by the data.
The Lead-Lag Relationship between the Stock Market and CDS Market in Korea
Authors: Bae Kwangil , Kang Hankil , Lee Changjun
Published: September 2020

This study examines the lead-lag relationship between the stock market and CDS market in Korea using the firm-level data during 2006-2009. Our main findings can be summarized as follows. First, our empirical finding shows that stock returns Granger cause CDS spread changes for a larger number of firms than vice versa. Second, the sub-sample analysis reveals that while the stock market leads the CDS market in each sub-sample, the lead-lag relationship is more pronounced in the post-crisis period. Finally, our main findings remain the same even in the presence of controlling variables such as equity volatilities, absolute bid-ask spreads, and CDS premium on foreign exchange stabilization bonds issued by Korean government. In sum, consistent with the U. S. and U. K. evidence, it appears that the stock market leads the CDS market in Korea.
Monte Carlo Greeks Using the WKB Approximation
Authors: Byun Suk Joon , Kim Jun Sik
Published: September 2020

In Kampen et al.(2008), Monte Carlo estimators obtained by the WKB (Wentzel, Brillouin, Kramers) approximation had better results than Monte Carlo estimators obtained by the lognormal approximation for European swaptions and Bermudan swaptions. We compare the WKB estimators with the lognormal estimators and the pathwise derivative estimators for ratchet caplets and sticky caplets with various maturities. The results show that the WKB estimators have similar performance compared with the lognormal estimators and the pathwise derivative estimators for ratchet caplets. However, the WKB estimators show worse performance than both the lognormal estimators and the pathwise derivative estimators for sticky caplets. These results indicate that the WKB estimators would be hard to substitute for the lognormal estimators for various derivatives.
The Impact of Individual Investor‘s Selling Activity on Asymmetric Volatility in the ETF Market of Korea
Authors: Kong Okrye , Park Daekeun
Published: September 2020

This study analysed the effect of individual investors‘ sell-buy imbalance on asymmetric volatility in returns using daily transaction data of the Korean ETF market. Major Finding of the Paper are as follows. First, there exists asymmetric volatility in the sense that the return, volatility, tends to increase when returns fall unexpectedly in the ETF market as well as in stock market. In this case, individual investors' increased selling activity is the main reason behind the increase the volatility while institutional investors' selling activity does not seem to cause asymmetric volatility. Second, when the prices go down, individual investors show herding behavior in transactions because increased selling activity by individual investors amplify volatility. Third, in addition to herding behavior, individual investors' transaction pattern as uninformed investors or as liquidity transactors also causes asymmetric volatility. Fourth, in some large ETFs, disposition effect of individual investors who are reluctant to sell when prices go down plays an important role in generating asymmetric volatility.
Implied Volatility of the KOSPI 200 Index Option Market
Authors: Cho Dam
Published: September 2020

This paper analyzes implied volatilities (IVs), which are computed from trading records of the KOSPI 200 index option market from January 2005 to December 2014, to examine major characteristics of the market pricing behavior. The data includes only daily closing prices of option transactions for which the daily trading volume is larger than 300 contracts. The IV is computed using the Black-Scholes option pricing model. The empirical findings are as follows;

Firstly, daily averages of IVs have shown very similar behavior to historical volatilities computed from 60-day returns of the KOSPI 200 index. The correlation coefficient of IV of the ATM call options to historical volatility is 0.8679 and that of the ATM put options is 0.8479.

Secondly, when moneyness, which is measured by the ratio of the strike price to the spot price, is very large or very small, IVs of call and put options decrease days to maturity gets longer. This is partial evidence of the jump risk inherent in the stochastic process of the spot price.

Thirdly, the moneyness pattern showed heavily skewed shapes of volatility smiles, which was more apparent during the global financial crises period from 2007 to 2009. Behavioral reasons can explain the volatility smiles. When the moneyness is very small, the deep OTM puts are priced relatively higher due to investors’ crash phobia and the deep ITM calls are valued higher due to investors’ overconfidence and confirmation biases. When the moneyness is very large, the deep OTM calls are priced higher due to investors’ hike expectation and the deep ITM puts are valued higher due to overconfidence and confirmation biases.

Fourthly, for almost all moneyness classes and for all sub-periods, the IVs of puts are larger than the IVs of calls. Also, the differences of IVs of deep OTM put ranges minus IVs of deep OTM calls, which is known to be a measure of crash phobia or hike expectation, shows consistent positive values for all sub-periods. The difference in the financial crisis period is much bigger than in other periods. This suggests that option traders had a stronger crash phobia in the financial crisis.
Comparative Analysis of Price Discovery in the KOSPI200 Regular and Mini Futures Markets
Authors: Lee Woo-baik
Published: September 2020

Commodity ETF, Cumulative Return, Tracking Error, Information Ratio, Inverse ETF
Analysis of Price Discovery Effect in the Single Stock Futures Market
Authors: Lee Woo–baik
Published: September 2020

This paper examines the price dynamics in the single stocks futures and spot markets. In order to enhance the liquidity of the stock futures market, Korea Exchange introduced the liquidity provider in 2014, and exempted the securities transaction taxes on stocks sold for hedging purposes of liquidity provider from 2015. This study performed a vector error correction model (VECM) based on spot-futures market linkage to evaluate the effectiveness of the liquidity policy by examining the difference in the price discovery around the event. The main empirical analysis results are summarized as follows. First, a statistically significant sample of price discovery over the entire period was evident in the interrelationship between spot and futures. This implies that stock futures have information effect equivalent to spot price, which is different from the previous studies in which futures lead the spot price discovery significantly as in the case of KOSPI200 futures market. Second, the tendency of feedback between spot and futures is consistent in price discovery even after introduction of liquidity provider and exemption of securities transaction tax. Overall, empirical results suggest that the effectiveness of the stock futures market policy is limited during the sample period and the additional measures to enhance the long term activation are needed.
Prospects of the fourth industrial revolution for the hospitality industry: a literature review
Authors: Osei Benjamin Appiah , Ragavan Neethiahnanthan Ari , Mensah Henry Kofi
Published: September 2020

Purpose

The economy of today has moved toward the fourth industrial revolution (FIR), which is characterized by the adoption of technologies such as cyber-physical systems, internet of things, big data, artificial intelligence and robotics. Globally, there is a lot of awareness created on the influence of the FIR on all industries, including hospitality and tourism. A plethora of studies on FIR have been conducted in the setting of manufacturing industries. Nonetheless, there seems to be in-exhaustive and non-consensual agreement among researchers as to the development and prospects of the FIR for service industries. Therefore, the aim of this paper was to comprehensively review the prospects of the FIR for the hospitality and tourism industry.

Design/methodology/approach

As a result of the novelty and gaps associated with the FIR in the hospitality literature, the authors explored the concept of FIR using a comprehensive literature review approach. Specifically, this paper reviews existing literature from diverse academic backgrounds, and annotates issues with regard to the evolution and prospects of the FIR for the hospitality industry.

Findings

Emphatically, the development and principles of FIR were expatiated. Additionally, an exegesis was carried out on the prospects (positives and challenges) of FIR for the hospitality industry. Finally, practical and social implications were also discussed.

Originality/value

It still remains a discourse among scholars and industry stakeholders as to the prospects of the FIR. This paper clarifies the confusion among researchers and bridges the literature gaps. Moreover, this review serves as a theoretical foundation for future research on the impact of FIR on the hospitality industry.
Inclusive organizations: developmental reciprocity through authentic leader-employee relationships
Authors: Moore Jeffrey R. , Maxey Everon C. , Waite Alina M. , Wendover Joseph D.
Published: September 2020

Purpose

Building on previous research that focused on Walgreens inclusive managers in South Carolina and Georgia, we studied leadership practices in Connecticut where effective and inclusive teams are developed.

Design/methodology/approach

Using the case study approach, interviews with over 90% of the managers in a Walgreens distribution center where over a third of its workforce of 500 employees has a disability were conducted.

Findings

Creating an inclusive workplace dramatically altered the culture of the distribution center. Our findings highlighted how managers transitioned from a telling and demanding autocratic style with a focus on production numbers to an inclusive management leadership style with a focus on investing in people and balancing teams. Additional discoveries include the role of complexity leadership concepts as essential to inclusive management attributes. Our findings point to a new driver in inclusive organizations: resolving employee performance and attitude issues.

Originality/value

With 200 disabled employees in the distribution center, managers and employees applied complexity leadership, enabling adaptive behaviors that helped form relationships focused on shared decision-making and problem solving. Managers showed mindfulness and empathy in building authentic relationships. Employee openness and the creation of safe attachments allowed leaders to gain greater engagement with employees, higher adaptability, innovation and resiliency. Inclusion was perceived as a benefit to managers as well as to employees, changing the organizational culture toward authentic relationships while exceeding performance metrics.
Nigerian budgetary response to the COVID-19 pandemic and its shrinking fiscal space: financial sustainability, employment, social inequality and business implications
Authors: Ejiogu Amanze , Okechukwu Obiora , Ejiogu Chibuzo
Published: September 2020

Purpose

This article aims to explore the Nigerian government's budgetary response to the COVID-19 pandemic as well as the economic and social implications of the pandemic response.

Design/methodology/approach

Our analysis is based on a review of secondary evidence such as Nigerian Federal Government budget documents, policy documents, Central Bank of Nigeria circulars, news media articles, World Bank and International Monetary Fund reports, reports from Big Four accounting firms and policy think-tanks.

Findings

The authors highlight how increased borrowing to fund COVID-19 related economic and social interventions have significantly squeezed Nigeria's fiscal space. The authors also highlight that while some interventions provide short-term economic relief to the poor and small businesses, other interventions and gaps in the policy response have the potential for significant negative impact on businesses, households and unemployment. In addition, the authors highlight the potential for long-term benefits to the health sector and for private sector engagement in corporate responsibility and philanthropy.

Originality/value

The authors present a comprehensive account of the Nigerian government's budgetary response to the COVID 19 pandemic and the economic and social implications of this response.
Impact of employee value proposition on employees’ intention to stay: moderating role of psychological contract and social identity
Authors: Binu Raj Asha
Published: September 2020

Purpose

This paper aims to examine the relationship between employee value proposition (EVP) and employees’ intention to stay and analyse how psychological contract and social identity moderate this relationship.

Design/methodology/approach

The study was conducted in Indian IT sector among a sample of 268 employees using criterion sampling. Data were collected through structured questionnaires which revealed employees’ perceptions of EVP, intention to stay, psychological contract and social identity.

Findings

The empirical results reveal that employees have greater intention to stay when their organisations deliver an EVP including development value, social value and economic value. Findings indicate that psychological contract positively strengthens the impact of EVP on employees’ intention to stay. Also, when employees strongly identify with their organisation’s image, they have higher intention to stay in presence of a strong EVP.

Research limitations/implications

Consistent with the existing literature, the paper contributes an integrative model of EVP based on social exchange process, moderated by social identity and psychological contract. As the study was limited to Indian IT sector, cross-sectional nature of data is a limitation for drawing inferences about the influence or causality in general.

Practical implications

The study provides a new perspective to managers to develop an attractive EVP to gain employees’ increased intention to stay. Employers in IT sector may adopt this comprehensive model to strategise their value propositions.

Originality/value

This paper proposes a validated conceptual framework of EVP and intention to stay, tested for moderation effects by psychological contract and social identity. This moderation model based on social exchange adds value to employer branding literature.
How career expectations influence advancement: evidence from women in the hospitality industry
Authors: Liu Ting , Gao Jie , Zhu Mingfang , Qiu Yajun
Published: September 2020

Purpose

This study aims to examine the role of women’s career expectations (CEs) in changes in their career advancement (CA) and to determine whether these changes were because of socio-demographic factors.

Design/methodology/approach

Multiple linear regression was used to measure the relationship between women’s CEs and CA, as well as the influences that socio-demographic factors (e.g. education) have on that relationship.

Findings

Results indicated that CEs had two dimensions (i.e. career rewards and career development) and that career reward expectations had a significantly higher effect on CA than career development expectations. Furthermore, women were very likely to set higher CEs and stronger desires for CA as they became older. Results also showed that education, working years and position level were significantly related to women’s CA.

Practical implications

This study provides new insight into which aspects of women’s CA can be boosted by CEs and how these aspects may be affected by socio-demographic factors. This study can help hotels design better career management strategies to achieve the desired results. The study also provides guidance for women’s career management activities.

Originality/value

This study considers women’s CEs in hotels. The results revealed two dimensions (i.e. career rewards and career development) of CEs and uncovered the influences of socio-demographic factors on women’s CA, for example, age, education, working years and position level.
The risk of unintentional propagation of poliovirus can be minimized by using human cell lines lacking the functional CD155 gene
Authors: Koike Satoshi
Published: September 2020

After eradication and containment of wild poliovirus (PV) and cessation of oral polio vaccinations, it is critical to minimize the risk of reintroducing PV into PV‐free communities via facilities that handle the virus. The potential risk of unintentional PV propagation through unidentified contaminated materials is a serious issue. This study reports the generation of HeLa and RD‐A cells deficient in functional CD155 gene (∆PVR cells); these cells are not susceptible to PV but remain susceptible to other picornaviruses. These ∆PVR cells will minimize the risk of unintentional transmission of PV and support performing the experiments more safely.
The ESG–financial performance relationship: Does the type of employee board representation matter?
Authors: Nekhili Mehdi , Boukadhaba Amal , Nagati Haithem
Published: September 2020

Research Question/Issue

We examine the impact of two differing types of employee board representation (i.e., labor board representation and employee shareholder board representations) on environmental, social, and corporate governance components of ESG performance and the moderating role of each type of employee board representation on the relationship between ESG performance and the firm's market value.

Research Findings/Insights

Using a propensity score matching approach on a sample of French firms listed in the SBF 120 index from 2007 to 2017, our findings reveal that labor board representatives act in the opposite direction to employee shareholder board representatives by focusing exclusively on improving social performance and reducing environmental and corporate governance performance. The way employees are represented on the board of directors also moderates the corporate ESG–financial performance relationship differently.

Theoretical/Academic Implications

Employee directors are not a homogenous group. The differentiation between the two types of employee directors (i.e., labor board representatives and employee shareholder board representatives) brings a deeper understanding of the effect of stakeholders' representation on the board.

Practitioner/Policy Implications

Our results are of interest to governance policymakers because they provide them with a fresh understanding of the key role of employee board representation. A meaningful inference to be drawn from our findings is that employee ownership and the representation of employees on the board as employee shareholders may bring about fundamental changes in employees' attitudes and behavior on the board and may, in this regard, be considered as a credible way of generating social harmony and constructive relationships between employees and shareholders.

Video Abstract

https://youtu.be/GqB_6GxtH2A
Regulation of the limb shape during the development of the Chinese softshell turtles
Authors: Cordeiro Ingrid R. , Yu Reiko , Tanaka Mikiko
Published: September 2020

Interdigital cell death is an important mechanism employed by amniotes to shape their limbs; inhibiting this process leads to the formation of webbed fingers, as seen in bats and ducks. The Chinese softshell turtle Pelodiscus sinensis (Reptilia: Testudines: Trionychidae) has a distinctive limb morphology: the anterior side of the limbs has partially webbed fingers with claw‐like protrusions, while the posterior fingers are completely enclosed in webbings. Here, P. sinensis embryos were investigated to gain insights on the evolution of limb‐shaping mechanisms in amniotes. We found cell death and cell senescence in their interdigital webbings. Spatial or temporal modulation of these processes were correlated with the appearance of indentations in the webbings, but not a complete regression of this tissue. No differences in interdigital cell proliferation were found. In subsequent stages, differential growth of the finger cartilages led to a major difference in limb shape. While no asymmetry in bone morphogenetic protein signaling was evident during interdigital cell death stages, some components of this pathway were expressed exclusively in the clawed digit tips, which also had earlier ossification. In addition, a delay and/or truncation in the chondrogenesis of the posterior digits was found in comparison with the anterior digits of P. sinensis, and also when compared with the previously published pattern of digit skeletogenesis of turtles without posterior webbings. In conclusion, modulation of cell death, as well as a heterochrony in digit chondrogenesis, may contribute to the formation of the unique limbs of the Chinese softshell turtles.
Multifaceted HIV‐1 Vif interactions with human E3 ubiquitin ligase and APOBEC3s
Authors: Hu Yingxia , Knecht Kirsten M. , Shen Qi , Xiong Yong
Published: September 2020

APOBEC3 (A3) proteins are a family of host antiviral restriction factors that potently inhibit various retroviral infections, including human immunodeficiency virus (HIV)‐1. To overcome this restriction, HIV‐1 virion infectivity factor (Vif) recruits the cellular cofactor CBFβ to assist in targeting A3 proteins to a host E3 ligase complex for polyubiquitination and subsequent proteasomal degradation. Intervention of the Vif‐A3 interactions could be a promising therapeutic strategy to facilitate A3‐mediated suppression of HIV‐1 in patients. In this structural snapshot, we review the structural features of the recently determined structure of human A3F in complex with HIV‐1 Vif and its cofactor CBFβ, discuss insights into the molecular principles of Vif‐A3 interplay during the arms race between the virus and host, and highlight the therapeutic implications.
Determinants of echolocation click frequency characteristics in small toothed whales: recent advances from anatomical information
Authors: Kuroda Mika , Miki Nobuhiro , Matsuishi Takashi Fritz
Published: September 2020

The pulse‐like clicking sounds made by odontocetes for echolocation (biosonar) can be roughly classified by their frequency characteristics into narrow‐band high‐frequency (NBHF) clicks with a sharp peak at around 130 kHz and wide‐band (WB) clicks with a moderate peak at 30–100 kHz. Structural differences in the sound‐producing organs between NBHF species and WB species have not been comprehensively discussed, nor has the formation of NBHF and WB clicks.

A review of the sound‐producing organs, including the latest findings, could lead to a new hypothesis about the sound production mechanisms. In the current review, data on echolocation click characteristics and on the anatomical structure of the sound‐producing organs were compared in 33 species (14 NBHF species and 19 WB species).

We review interspecific information on the characteristics of click frequencies and data from computed tomography scans and morphology of the sound‐producing organs, accumulated in conventional studies. The morphology of several characteristic structures, such as the melon, the dense connective tissue over the melon (the ‘porpoise capsule’), and the vestibular sacs, was compared interspecifically.

Interspecific comparisons suggest that the presence or absence of the porpoise capsule is unlikely to affect echolocation frequency. Folded structures in the vestibular sacs, features that have been overlooked until now, are present in most species with NBHF sound production and not in WB species; the vestibular sacs are therefore likely to be important in determining echolocation click frequency characteristics. The acoustical properties of the shape of the melon and vestibular sacs are important topics for future investigations about the relationship between anatomical structure and sound‐producing mechanisms for echolocation clicks.
Single wall carbon nanotubes growth over cobalt-iron mesoporous MCM-41 bimetallic catalyst under methane chemical vapor deposition, an experimental and DFT evaluation
Authors: Ramírez-Rodríguez Frank , López Betty
Published: September 2020

Cobalt and iron MCM-41 catalysts were synthesized through an in-situ incorporation process starting from commercial iron and cobalt nitrates. The incorporation was confirmed by diffuse reflectance UV spectroscopy (DRS-UV) inspecting the cobalt and iron silicate-like photon absorption features and comparing with pure MCM-41-Co and MCM-41-Fe catalysts. Additionally it was found that the incorporation of cobalt and iron does not compromise the mesoporous structure of MCM-41 as confirmed by N2 adsorption isotherms. All catalysts showed high surface areas (∼1100 m2g−1). Catalysts performance was conducted in a simple methane chemical vapor deposition (CVD) set up at 800 °C to produce single wall carbon nanotubes (SWCNT) under a constant flow of methane for 30 min. CVD products were characterized by thermogravimetric analysis (TGA) and Raman spectroscopy, finding that the iron content in the catalysts favors the selectivity and yield of graphitic-like structures, and confirming the presence of SWCNT by the appearance of a characteristic radial breathing mode (RBM) signals. These results were supported by Density Functional Theory (DFT) simulations of the methane dissociation (CH4 +TM → H3C –TMH) over Con (n = 1–5) and ComFe (m = 1–4), finding a different activation energy trend where ComFe (m = 1–4) clusters have the lower activation energy. The DFT study also revealed a charge difference (δC − δTM) higher in the case of dissociation over ComFe (m = 1–4) which may lead to an electrostatic stabilization of the transition metal, diminishing the activation energy of those clusters and leading to a faster carbon uptake.