IDEAS home Printed from https://ideas.repec.org/a/apb/jabsss/2016p25-37.html
   My bibliography  Save this article

Asymmetrical corporate responses to economic information: Applying the firm size effect

Author

Listed:
  • Jae-woongYoo

    (Dongseo University, Busan South Korea)

  • Min-Kyu Lee

    (Chung-Ang University, Seoul, South Korea)

  • Wan Soo Lee

    (Dongseo University, Busan South Korea)

Abstract

This research utilized longitudinal economic data to analyze differences by firm size in how business sentiments are affected by economic news and economic conditions.A regression was also conducted for the relationship between firm-specific BSI(Business Survey Index) values and rate of employees and business activities. Results showedno statistically significant effect from economic news tone on business sentiment for large firm sizes as opposed to individuals. At the same time, the economic situation was found to have an effect on business sentiment regardless of firm size. Anticipated future economic conditions exhibited an effect on business sentiment regardless of firm size, but current economic conditions had an effect on business sentiment only for small firms. Business sentiment had an effect on business activities according to GDP rate, regardless of firm size.Theoretical and managerial implications as well as directions for future research are discussed.

Suggested Citation

  • Jae-woongYoo & Min-Kyu Lee & Wan Soo Lee, 2016. "Asymmetrical corporate responses to economic information: Applying the firm size effect," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(1), pages 25-37.
    • Handle: RePEc:apb:jabsss:2016:p:25-37
    DOI: 10.20474/jabs-2.1.4
    as

    Download full text from publisher

    File URL: https://tafpublications.com/platform/Articles/full-jabs2.1.4.php
    Download Restriction: no
    File URL: https://tafpublications.com/gip_content/paper/jabs-2.1.4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.20474/jabs-2.1.4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Moon K. Kim & David A. Burnie, 2002. "The Firm Size Effect and the Economic Cycle," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 25(1), pages 111-124, March.
    2. Fuhrer, Jeffrey C, 1988. "On the Information Content of Consumer Survey Expectations," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 140-144, February.
    3. Reinganum, Marc R., 1981. "Misspecification of capital asset pricing : Empirical anomalies based on earnings' yields and market values," Journal of Financial Economics, Elsevier, vol. 9(1), pages 19-46, March.
    4. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    5. Ranyard, Rob & Missier, Fabio Del & Bonini, Nicolao & Duxbury, Darren & Summers, Barbara, 2008. "Perceptions and expectations of price changes and inflation: A review and conceptual framework," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 378-400, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seung-Jun Shin & Wonchul Seo, 2017. "Identifying new technology areas based on firm’s internal capabilities," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(3), pages 114-121.
    2. Guenther Schuh & Christoph Kelzenberg & Jan Wiese & Felix Stracke, 2018. "Industry 4.0 implementation framework for the producing industry," Journal of Advances in Technology and Engineering Research, A/Professor Akbar A. Khatibi, vol. 4(2), pages 79-90.
    3. Gunjan Sharma, 2017. "The Socio-Economic plight of Artisans in the Bangle Industry – A Comparative Study of North India Firozabad (Glass Bangle) and South India Hyderabad (Lac Bangle)," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 3(1), pages 21-29.
    4. Charles Ndalu Wasike, 2017. "Financial regulation as moderating, influence of corporate governance, institutional quality, human capital and firm size on financial institutions performance in Kenya," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(6), pages 292-304.
    5. Siti Maimunah Yahya Senawat & Srihadi Winarningsih Zarkasyi & Ida Farida Abdul Gafur, 2018. "The effects of corporate social responsibility on financial performance on Indonesian public listed tobacco companies," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(6), pages 267-279.
    6. Jono M Munandar & Dadang Firmansyah, 2018. "The role of digital marketing in improving SME’s prod- uct competitiveness in The ASEAN Economic Community (AEC) (Case study in Indonesia)," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(4), pages 206-218.
    7. Cheng Mei Tung, 2018. "Vertical integration for smart manufacturing-The dynamic capability perspective," Journal of Advances in Technology and Engineering Research, A/Professor Akbar A. Khatibi, vol. 4(2), pages 70-78.
    8. Thriwaty Arsal & Nuufid R. Ambarwati, 2018. "The Impact of Steam Electricity Power Plant Development on the Economic and Social Activities of the Community," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(3), pages 86-92.
    9. Domingo T. Balse, Jr, 2018. "Aggregate remittance cost and diaspora financing of overseas Filipino teachers in the kingdom of Thailand," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(5), pages 258-266.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tienyu Hwang & Simon Gao & Heather Owen, 2014. "Markowitz efficiency and size effect: evidence from the UK stock market," Review of Quantitative Finance and Accounting, Springer, vol. 43(4), pages 721-750, November.
    2. George Karathanasis & Konstantinos Kassimatis & Spyros Spyrou, 2010. "Size and momentum in European equity markets: empirical findings from varying beta Capital Asset Pricing Model," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 143-169, March.
    3. Eduardo Sandoval, 2015. "Small Vs Large Caps. Evidence From Developed And Emerging Stock Markets During Periods With And Without Financial Crisis, Small Vs Large Caps. Evidencia De Mercados Accionarios Desarrollados Y Emergen," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 8(4), pages 27-44.
    4. Robert Rutledge & Zhaohui Zhang & Khondkar Karim, 2008. "Is There a Size Effect in the Pricing of Stocks in the Chinese Stock Markets?: The Case of Bull Versus Bear Markets," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 15(2), pages 117-133, June.
    5. Laura Medwid & Elizabeth A. Mack, 2021. "A Scenario-based Approach for Understanding Changes in Consumer Spending Behavior in Response to Rising Water Bills," International Regional Science Review, , vol. 44(5), pages 487-514, September.
    6. Eero Pätäri & Timo Leivo, 2017. "A Closer Look At Value Premium: Literature Review And Synthesis," Journal of Economic Surveys, Wiley Blackwell, vol. 31(1), pages 79-168, February.
    7. Horowitz, Joel L. & Loughran, Tim & Savin, N. E., 2000. "The disappearing size effect," Research in Economics, Elsevier, vol. 54(1), pages 83-100, March.
    8. Marc Desban & Souad Lajili Jarjir, 2018. "Corporate ownership structure, market anomalies and asset pricing," Journal of Asset Management, Palgrave Macmillan, vol. 19(5), pages 316-340, September.
    9. Wolfgang Aussenegg & Andreas Grünbichler, 1999. "Der Size-Effekt am Österreichischen Aktienmarkt," Schmalenbach Journal of Business Research, Springer, vol. 51(7), pages 636-661, July.
    10. Michael Ehrmann & Damjan Pfajfar & Emiliano Santoro, 2017. "Consumers' Attitudes and Their Inflation Expectations," International Journal of Central Banking, International Journal of Central Banking, vol. 13(1), pages 225-259, February.
    11. John Y. Campbell & Tuomo Vuolteenaho, 2004. "Bad Beta, Good Beta," American Economic Review, American Economic Association, vol. 94(5), pages 1249-1275, December.
    12. James Foye, 2015. "A New Perspective on the Size, Value, and Momentum Effects: Broad Sample Evidence from Europe," Proceedings of International Academic Conferences 2604415, International Institute of Social and Economic Sciences.
    13. Wändi Bruine de Bruin & Michael F. Bryan & Simon M. Potter & Giorgio Topa & Wilbert Van der Klaauw, 2008. "Rethinking the measurement of household inflation expectations: preliminary findings," Staff Reports 359, Federal Reserve Bank of New York.
    14. Varum, Celeste & Rocha, Vera Catarina & Valente da Silva, Hélder, 2014. "Economic slowdowns, hazard rates and foreign ownership," International Business Review, Elsevier, vol. 23(4), pages 761-773.
    15. Sudi Sudarsanam & Ashraf A. Mahate, 2003. "Glamour Acquirers, Method of Payment and Post‐acquisition Performance: The UK Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1‐2), pages 299-342, January.
    16. Narayan, Paresh Kumar & Sharma, Susan Sunila, 2011. "New evidence on oil price and firm returns," Journal of Banking & Finance, Elsevier, vol. 35(12), pages 3253-3262.
    17. Sanjay Sehgal & Vanita Tripathi, 2005. "Size Effect in Indian Stock Market: Some Empirical Evidence," Vision, , vol. 9(4), pages 27-42, October.
    18. Fernandez, Pablo, 2004. "Are calculated betas good for anything?," IESE Research Papers D/555, IESE Business School.
    19. Wagner, Niklas & Winter, Elisabeth, 2013. "A new family of equity style indices and mutual fund performance: Do liquidity and idiosyncratic risk matter?," Journal of Empirical Finance, Elsevier, vol. 21(C), pages 69-85.
    20. Nicolau, João & Rodrigues, Paulo M.M. & Stoykov, Marian Z., 2023. "Tail index estimation in the presence of covariates: Stock returns’ tail risk dynamics," Journal of Econometrics, Elsevier, vol. 235(2), pages 2266-2284.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apb:jabsss:2016:p:25-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Professor Dr. Usman Raja (email available below). General contact details of provider: https://tafpublications.com/platform/published_papers/9 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.