Entertainment Expenditures Research Articles

The influence mechanism of internet finance on residents’ online consumption

This study investigates the impact of Internet finance (IF)11Internet finance (IF): Traditional financial institutions and Internet enterprises use Internet technology and information communication technology to realize the new financial business model of financial financing, payment, investment and information intermediary services.on residents’ online consumption using annual data from 2013 to 2022 in China. To examine the impact of IF on overall consumption, survival, development, and enjoyment, four vector autoregressive models are constructed. This study employs comprehensive methods, including parameter estimation, impulse response function analysis, and variance decomposition. Findings reveal that the development of IF has significantly stimulated residents’ online consumption, with the increase in developmental expenditure being the most significant, followed by the increase in entertainment expenditure.

Alcohol culture and employee treatment

This paper examines the impact of corporate alcohol culture on employee treatment, and find that a rich corporate alcohol culture atmosphere is negative significantly associated with employee treatment. Mechanistically, the corporate alcohol culture increases the aggressiveness motivation of management, in turn increasing risk taking and management overconfidence. Furthermore, the corporate alcohol culture extends managing external social network rather than developing interpersonal relationships, which causes management to less focus on protecting employees' rights and interests. Notably, the inhibitory impact of corporate alcohol culture on employee treatment is particularly pronounced in non-state-owned enterprises (non-SOEs), male-dominated industries, and firms with high entertainment expenditure rates. These insights underscore the nuanced dynamics of alcohol culture within corporate settings and its implications for employee welfare and organizational behavior.

Strategic Resource Utilization for Enhancing Corporate Value: Dynamics of Exploration and Exploitation in Korea

This study examines the impact of research and development (R&D) expenditures, training expenditures, and entertainment expenditures (business promotion expenditures) on firm value in the Korean electronics and metal industry. Extending the theoretical foundation of James March’s exploration and exploitation theory, this study analyzes the impact of R&D and training investments on firm value to explore new capabilities from a long-term perspective, and the impact of entertainment costs on firm value to achieve short-term organizational goals. Using Tobin’s Q methodology, which uses the ratio of a firm’s market value to its asset replacement cost as a proxy for firm value, this study finds the relationship between these types of expenditures and firm value. The analysis finds that R&D expenditures and training expenditures are significantly correlated with increases in firm value, suggesting that these investments play an important role in enhancing a firm’s competitiveness and performance. On the other hand, while we hypothesize that the balance of exploration and exploitation within an organization will affect firm value, we find that entertainment expenditures, which are business promotion expenditures, do not show a significant relationship with firm value. This suggests that these expenditures by companies in Korea’s electronics and metals industry contribute to the achievement of the organization’s short-term goals but do not have a significant impact on firm value. These findings suggest that resource allocation in the electronics and metal industries where technological innovation is important should be more heavily weighted toward investments in R&D and training for long-term exploration in order to increase firm value. To increase firm value, firms should prioritize investments that drive sustainable growth and enhance competitive advantage. This research allows for a deeper examination of how different types of costs contribute to firm value and underscores the need for strategic clarity in resource allocation decisions.

Can Targeted Poverty Alleviation Program Reduce Depression? Evidence From China.

This study aimed to examine whether China's Targeted Poverty Alleviation (TPA) program mitigates depression and explores the mechanisms through which the TPA program affects individuals' depression. Using the data from the China Family Panel Studies (CFPS) survey from 2012 to 2020, we employ a Difference-in-Difference model to analyze the effect of the TPA program on individuals' depression levels. Our findings indicate that the TPA program reduces depression scores by 0.116 points, accounting for 6.82% of the standard deviation of depression scores. Further analyses indicate that these effects are mediated through improvements in local medical conditions, reductions in household healthcare spending, increases in household entertainment expenditures, and greater likelihood of living in family. This study showed that the TPA program significantly mitigates individuals' depression levels. The possible channels include (1) improving local medical conditions, (2) cutting down household healthcare spending, (3) increasing household entertainment expenses, and (4) increasing the likelihood of living in family.

The impact of border control policy on tourists’ behaviors in Taiwan during the COVID-19 pandemic

In response to the global pandemic of the COVID-19 outbreak, Taiwan barred foreign nationals from entering into Taiwan starting from March 19th, 2020. This study aims to explore the impact of lockdown policy on the length of stay, tourism expenditure, tourist satisfaction and revisit intention based on a sample of 3987 inbound visitors collected from the 2020 Annual Survey Report on Visitor Expenditures and Trends, published by the Taiwan Tourism Bureau. The empirical results indicate that: (1) the border control policy increases the length of stay of around 33.4719 nights; (2) a drop of the total expenditure, F&B expenditure, transportation expenditure, entertainment expenditure, and shopping expenditure but an increase of accommodation expenditure is found; (3) the border control policy seems to reduce the level of tourist satisfaction but does not affect revisit intention.

Is the Chinese Anticorruption Campaign Authentic? Evidence from Corporate Investigations

This paper examines whether the massive Chinese anticorruption campaign ensnares corrupt firms, contains a political component, and reduces corporate corruption. Consistent with the campaign’s stated objectives, investigated executives are more likely to come from Chinese firms with characteristics commonly associated with measures of poor governance, self-dealing, and inefficiencies. However, affiliations with prominent investigated political leaders increase investigation likelihood, while university affiliations with current central leadership decrease investigation likelihood, possibly indicating political partiality. Except for reported entertainment expenditures and chief executive officer pay, there has been little evidence of a substantial overall decrease in measures of potential corporate corruption. This paper was accepted by Tomasz Piskorski, finance.

Covidomics & covidocial impacts: The relation between consumers’ fear of Covid-19, panic spending and saving behavior

In this study, the fear created by the Covid-19 global epidemic on consumers (general fear of viruses and fear of activity), spending (cleaning products, preventive health products, fresh and organic food and vitamin/mineral support, clothing, education, home purchasing, vehicle, loan. The relationship between buying, rental, fashion, vacation, travel, entertainment, electronics, home decor/furniture, mobile phone, activity and general) and savings have been tested. For this purpose, in order to test the relationship between fear, saving, and spending during the Covid-19 pandemic process, a Likert-scale online survey link was shared on social networks (Twitter, LinkedIn). The total of 385 surveys was analyzed using Google Form and SPSS program (Anova, Regression). As a result of the analysis, fear (general fear and fear of activity), spending (education, vehicles/cars, monopoly products, and tobacco products, games of chance, home buying and renting, loans, luxury/fashion, games, and toys, vitamins, minerals, and food support, public services, home, and furniture décor, electronic products (including mobile phones) expenditures remained the same, protective healthcare products, cleaning products, fresh and organic food expenditures increased, travel, public transportation expenditures decreased, holiday and entertainment expenditures decreased significantly). In the research, it was determined that 42% of the participants increased their savings by 30.5% slightly, and the amount of savings did not change at all for 27% of the participants. According to the results, as consumers' fear of Covid-19 increases, some spending categories (health products, cleaning products, fresh and organic food spending) and savings rate increase. In addition, it was observed that 90% of the participants canceled their expenses due to Covid-19. As a result of the research, significant relationships were found between the variables of fear, saving, and spending during the Covid-19 pandemic process.

Challenge or chance? Understanding the impact of anti-corruption campaign on China’s hotel industry

Anti-corruption has garnered increasing attention, especially in China, where President Xi launched an influential and far-reaching anti-corruption campaign in late 2012. A better understanding of the effects of anti-corruption efforts on the hotel sector can reveal insights into the development of the Chinese hotel industry. Based on the quarterly data on China’s hotel industry in 49 cities from quarter 2 of 2010 to quarter 4 of 2015, this study investigates how the anti-corruption campaign (measured by anti-corruption inspections and the number of corruption lawsuits) has influenced hotel industry demand in China. Hypotheses are developed from China’s unique cultural environment of guanxi combined with rent-seeking theory and the crowding-out principle. Empirical results confirm a significant and negative effect of the anti-corruption campaign on hotel lodging and food and beverage demand. Several factors, including a city’s administrative position as a provincial capital, hotel class, level of tourism dependence, and local residents’ entertainment expenditure, are found to moderate the effect of the anti-corruption campaign on hotels’ lodging demand significantly. Theoretical and practical implications are discussed in light of these findings.

Is domestic consumption dragged down by real estate sector?—Evidence from Chinese household wealth

This paper investigates whether domestic consumption dragged down by real estate sector, using the panel data of China Family Tracking Survey (CFPS) in 2012, 2014 and 2016. This paper constructs the consumption structure upgrading index represented by food, daily necessities and cultural, educational and entertainment expenditure according to the industrial upgrading rate, and builds a model based on LC-PIH theory to analyze whether the change of household wealth has wealth effect on residents consumption. Through empirical analysis, this paper finds that risk-free financial assets have a squeezing effect on household consumption, and risky financial assets, net real estate and productive fixed assets have a significant wealth effect on household consumption. Finally, this article proposed how to promote the upgrading of Resident Consumption Structure in China.

Business Entertainment Expenditure and Stock Price Crashes: The Agency Problem Perspective

This study examines the effects of corporate entertainment expenditure on stock price crashes. From the trust-building perspective, the formation of relationships through spending on entertainment increases information transparency, increases information flow, and provides an opportunity to gain stakeholder trust, thus lowering the risk of a stock price crash. On the other hand, from the agency problem perspective, entertainment spending is related to information opacity and corporate corruption, increasing the risk of a stock price crash. We find that entertainment spending relates positively to a stock price crash, supporting the agency problem hypothesis. Social networking through entertainment expenditure increases information asymmetry and opacity between network insiders and outsiders. In addition, corporate insiders have an incentive not to disclose negative information, such as an increase in political and legal risks, while exaggerating the benefits of social networking. Consequently, the negative information hidden in the market spills out at once, leading to the stock price crash. We also find that the enactment of the Kim Young-ran Act, which affects entertainment expenses, alleviates the positive effect on the risk of a stock price crash significantly. Through these results, we confirm that the anti-graft law enhances management transparency and improves the information environments surrounding companies. Key words: Agency Problem; Corporate Entertainment Expenditure; Stock Price Crash; Governance; Social Networking JEL Classification: G34, G18

접대비 관련 정책효과 분석：접대비 실명제와 김영란법을 중심으로

접대비 관련 정책효과 분석：접대비 실명제와 김영란법을 중심으로

The impact of digital finance on household consumption: Evidence from China

Using panel data from the China Household Finance Survey (CHFS) in 2013, 2015, and 2017 and the digital inclusive finance index developed by Peking University, this study examined impacts of the digital inclusive finance on household consumption and explored its mechanisms. Results suggest that the digital inclusive finance could promote households consumption. A heterogeneity analysis showed that households with fewer assets, lower income, less financial literacy and in third- and fourth-tier cities experienced larger facilitating effects of digital finance on consumption compared to their counterparts. For consumption categories, digital finance was positively correlated with food, clothing, house maintenance, medical care, and education and entertainment expenditures. In terms of consumption structure, digital finance mainly promoted the recurring household expenditures rather than the non-recurring expenditures. Further analyses based on the mediating model found that online shopping, digital payment, obtainment of online credit, purchase of financing products on the internet and business insurance, were the main mediating variables through which digital finance affected household consumption.

접대비 지출 관련 제도 변화가 기업의 접대비 수익 관련성에 미치는 영향

접대비 지출 관련 제도 변화가 기업의 접대비 수익 관련성에 미치는 영향

체험경제지수 수준에 따른 그룹별 인식 및 행동 차이

Several researchers have tried to develop dimensions and scales to manifest experience in a measurable form. However, little progress has been made in experience economy research, despite being a fundamentally important issue in the tourism context. The purpose of this study is to gain an in-depth understanding of experience economy rooted in the theory of experienced utility. This is achieved by examining the experience economy values (financial values) associated with experience types. Furthermore, this study examines if traveler trip patterns, perceptions, and behaviors differ among experience economy values-based groups. Out of a total of 613 respondents, the study sample includes 311 respondents. The respondents answered according to experience types and the financial values that they would prefer to have and pay. The data was analyzed using descriptive and ANOVA. The result shows that food, beverage and entertainment expenditures differ particularly. It also shows that four groups were generated by the experience economy values. A strategy in which food, beverage and entertainment blend will help maximize the amount that those in a high experience economy index spend.

Revisiting the child health-wealth nexus.

ObjectiveThe causal link between a household’s economic standing and child health is known to suffer from endogeneity. While past studies have exemplified the causal link to be small, albeit statistically significant, this paper aims to estimate the causal effect to investigate whether the effect of income after controlling for the endogeneity remains small in the long run. By correcting for the bias, and knowing the bias direction, one can also infer about the underlying backward effect.Design and settingThis paper uses an instrument variables two-stage-least-squares estimation on the Young Lives 2009 cross-sectional dataset from Andhra Pradesh, India, to understand the aforementioned relationship.ResultsThe selected measure of household economic standing differentially affects the estimation. There is significant positive effect of both short-run household expenditure and long-run household wealth on child stunting, with the latter having a larger impact. The backward link running from child health to household income is likely an inverse association in our sample with lower child health inducing higher earnings. While higher average community education improved child health, increased community entertainment expenditure is found to have a negative effect.ConclusionWhile policies catered towards improving household wealth will decrease child stunting in the long run, maternal education and the community play an equally reinforcing role in improving child health and are perhaps faster routes to achieving the goal of better child health in the short run.

Is the Chinese Anti-Corruption Campaign Effective?

Chinese firms with characteristics commonly associated with corporate self-dealing are more likely to have executives investigated by the anti-corruption campaign. University affiliations with the top current leaders are associated with a reduced probability of investigation, but general political affiliations are associated with more investigations. We then assess the campaign’s effect on Chinese firms more broadly, and find that with the exception of entertainment expenditure there has been little overall decrease in measures of potential corporate self-dealing. Overall, our findings suggest that the campaign is targeting corrupt managers, could contain a political component, and has yet to change Chinese corporate culture.

The Retirement Consumption Puzzle in China

Using data from China's Urban Household Survey and exploiting China's mandatory retirement policy, we use the regression discontinuity approach to estimate the impact of retirement on household expenditures. Retirement reduces total non-durable expenditures by 20 percent. Among the categories of non-durable expenditures, retirement reduces work-related expenditures and expenditures on food consumed at home but has an insignificant effect on entertainment expenditures. After excluding these three components, retirement does not have an effect on the remaining non-durable expenditures. It suggests that the retirement consumption puzzle might not be a puzzle if a life-cycle model with home production is considered.

Compliance or Resistance: Firms' responses to Corruption and Performance in an Emerging Economy

Emerging economy firms (EEFs) have achieved high growth in corruptive environments. Drawing upon the institutional theory, we examine entertainment expenditure as firms' active responses, complianc...

The Comparative Value Relevance of Entertainment, Advertising, and Donation Expenditures

The Comparative Value Relevance of Entertainment, Advertising, and Donation Expenditures

Hierarchical linear relationship between the U.S. leisure and entertainment consumption

Research on leisure and entertainment consumption has been increasing noticeably in recent years. However, while some literature is available on traditional regression and ANOVA analysis; little information is available on contextual quantitative analysis, above all, considering the relation between the time variance and consumption based on different entertainments. Thus, this work used the hierarchical linear growth modeling to address this. Overall, the results indicated that time variance and disposable income both positively related to entertainment expenditures over different entertainment types. Thus, this work suggests that not only the disposable income and time variance but also the specific development context of various entertainments should be further considered in related entertainment consumption research.