Current Issue

CONTENTS of Volume 25, Number 1, June 2019

  • JEONG-YEON LEE and HYESOOK CHUNG

  • Peer Perspectives on Employee Idiosyncratic Deals

  • ABSTRACT

    In this paper, we attempt to describe the relationship between the observation of coworker idiosyncratic deals (i-deals: Rousseau et al., 2006; Rousseau, 2005) and employee turnover intention by incorporating two explanatory mechanisms: workplace flexibility and procedural justice. We hypothesize contrasting implications of coworker flexibility i-deals and developmental i-deals on these two mediating mechanisms. Based on a sample of 176 employees, we find differential implications for the two types of i-deals and mediators. We discuss these findings and the implications of our research.

  • KEYWORDS

    idiosyncratic deals, turnover intention, workplace flexibility, procedural justice

  • MANSOKKU LEE

  • Determinants of Potential Output Growth: Empirical Evidence in 18 OECD Countries, 1990-2016

  • ABSTRACT

    In this paper, we examine the contribution of labor quantity, labor quality, ICT capital, non-ICT capital, and the productivity of production system to potential output growth for 18 OECD countries from 1990 to 2016. For this, we develop a measure of a country’s potential output growth using a time-series analysis and apply panel data regressions to find empirical evidence. Empirical findings suggest that in developed countries, improvements in productivity and labor quality are major determinants that lead to an increase in economic potential.

  • KEYWORDS

    potential output growth, Kalman filter, panel data regressions, productivity, labor quality

  • BOK BAIK and LEE-SEOK HWANG

  • Conditional Conservatism: An Analysis of Nonlinearity and Lead-Lag Relations

  • ABSTRACT

    Recent studies have provided evidence that the association between earnings and contemporaneous returns is stronger when returns are negative, reflecting accounting conservatism. In this paper, we investigate two important aspects in this asymmetric timeliness of earnings: (1) whether the contemporaneous earnings-return relation is concave and (2) whether earnings show asymmetric timeliness with respect to lagged returns. We show that the relation between earnings and stock returns is more salient for extreme negative returns, implying a concave relationship between earnings and returns. We also find asymmetric timeliness with respect to lagged returns. Moreover, we find similar results using earnings line items such as special items and discontinued items. Overall, our evidence suggests that the Basu-type regression without considering these two aspects biases the extent of conditional conservatism.

  • KEYWORDS

    Conservatism, Asymmetric timeliness, Nonlinearity, Asset write-offs