Conference Call and Information Asymmetry-Evidence from Regulatory Change on Earnings Forecast Disclosure in Taiwan
Yaying Mary Chou Yeh
*Assistant Professor, Department of Accounting, National Dong Hwa University, Taiwan, R. O. C.,
E-mail: marychou@mail.ndhu.edu.tw
Keywords: conference calls, informativeness, information content
ABSTRACTThe purpose of this study is to examine the effects of the 2005 deregulation of the earnings forecasts requirement on management’s disclosure behavior. Using firms hosting conference call one year before and after the deregulation as samples, this study empirically tests three questions: (1) changes in the characteristics of firms hosting conference calls; (2) differences on the informativeness of financial statements of conference call firms, and (3) differences in the information contents of the conference calls. This study uses secondary data from financial databases covering sampling periods from 2004 to 2005. The results indicate that conference call firms are larger in size after the mandatory earnings forecasts amendment in 2005. Financial statements from conference call firms are more informative compared to 2004 conference call activities. Finally, a higher level of information content is observed from 2005 conference calls compared to 2004. The results of this research support the Taiwanese government’s effort in reducing information asymmetry.
Disclosure Level of Prospective Financial Information in IPO Prospectuses – New Zealand Evidence
Wen-Hsi Lydia Hsu
Assistant Professor of Department of Business Administration, National Pingtung University of Science and Technology, Taiwan, R.O.C.
E-mail: hsuw@mail.npust.edu.tw
Keywords: disclosure level, prospective financial information, initial public offerings, prospectus
ABSTRACTThis study examines the level of disclosure of prospective financial information in prospectuses for initial public offerings (IPOs) of equity securities by New Zealand companies for a period of 15 years. The results indicate that, on average, companies disclose 75% of the recommended items of prospective financial information in their prospectuses. Levels of disclosure of prospective financial information are further categorised into three groups, namely, total disclosure items recommended by FRS-29 (TSR), total disclosure items not recommended by FRS-29 (TSV) and overall disclosure items recommended and not recommended by FRS-29 (TSRV) and then investigated for significant relationships.
The results show that the disclosure level of prospective financial information, measured by total disclosure items recommended by FRS-29, is significantly related to managerial ownership, number of IPOs and forecast accuracy. When level of disclosure is measured by items not recommended by FRS-29, only company size is significantly related to level of disclosure. When level of disclosure is measured by overall disclosure items, both recommended and not recommended by FRS-29, company size and number of IPOs are significantly related to level of disclosure.
Liquidity Discount in Valuing Unlisted Targets–Japanese M&A Market eEvidence
Chiming Wu
Associate Professor of Department of Finance, School of Commerce, National Chengchi University, Taipei, Taiwan
Email : ericwu@nccu.edu.tw
Keywords: liquidity discounts; unlisted targets, acquisition discounts, multiples
ABSTRACTThis paper examines 615 merger and acquisitions of Japanese publicly listed and unlisted targets over the period of 2004 – 2009 and tests how M&A or I P O market conditions , industry character is tics, and target financial performance affect liquidity discounts of the unlisted target. Using 6400 paired samples and controlling target information asymmetry, bidder’s agency problem, and “value of control” variables such as target firm size, relative firm size between bidders and targets, and methods of payment, ,the acquisition discount still exists and can be attributed to illiquidity of unlisted targets. Besides, the liquidity discount is negatively correlated with IPO & M&A market volumes and target’s profitability. Especially during 2007-2009 post global financial crisis period, liquidity discount increases owing to decreased liquidity supply measured by IPO volumes. More importantly, notwithstanding the general findings that acquisition discount is positive for all industries, I observe that the acquisition discount for financial industry is the smallest and for Construction industry is the largest. Apparently, the market rewards private targets with high asset liquidity and operating flexibility, thus the liquidity discount is smaller.
JEL: G34
Financial reforms in Indonesia and South Korea in 1980s and early 1990s: Policies and Outcomes
Alexandr Akimov
Lecturer in Banking and Finance, Griffith University, Southport, Australia
E-Mail: a.akimov@griffith.edu.au
Brian Dollery
Professor of Economics, University of New England, Armidale, Australia
ABSTRACTThis paper examines financial liberalisation in Indonesia and South Korea during the 1980s and early 1990s. The paper provides a brief discussion of a pre-reform political and economic environment in two countries, followed by a description of the state of the pre-reform financial sectors in both countries. The paper then focuses on the respective financial development policies and their pace, sequencing and outcomes in the two nations. The socio-economic impact of financial sector reforms is also carefully considered. The paper concludes by summarising its main findings and drawing out some major policy implications.
A Measure of the Model Adequacy: Using the Method of Area under ROC Curve (AUC)
Hsien-Chueh Peter Yang
Associate Professor of Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan.
E-Mail: hcyang@ccms.nkfust.edu.tw
Tsung-Hao Chen
Assistant Professor, Department of Business Administration, Shu-Te University, Kaohsiung, Taiwan
E-Mail: thchen@stu.edu.tw
Alex Kung-Hsiung Chang
Professor of Department of Business Administration, National Pingtung University of Science and Technology, Ping-Tung,Taiwan
E-Mail: bear419@mail.npust.edu.tw
Sheng-Tang Huang
Assistant Professor, Department of Finance, Nanya Institute of Technology, Taiwan.
E-Mail: tom@nanya.edu.tw
Chien-Chou Chen
Ling Tung University, Taiwan.
E-Mail: chou5 @ mail.ltu.edu.tw
Yin-Tung Chen
Student of Department of Business Administration, Shu-Te University, Kaohsiung, Taiwan
E-Mail: tears055925@hotmail.com
Keywords: residential mortgage loans, default, ROC curve.
ABSTRACTA logit model is frequently used to model the default probability for mortgage loans. However, the focus of previous studies has been on the significance of explanatory variables and thus the accuracy of a logit model is not adequately addressed. In this study we demonstrate that receiver operating characteristic curve (ROC curve) can serve as a measure of internal accuracy for a logit model. We also find that the AUC predictive method has better t predictive ability than the other. The findings in our study can be practiced in individual credit prediction.
An Investigation on Capital Factors Influencing Medical Resources Utilization of the Elderly People in Taiwan
Che-Chao Chiang
Assistant Professor of Department of Sport Health and Leisure, Cheng Shiu University of Science & Technology, Taiwan
Yi-Wei Chang
Assistant Professor of Department of Tourism and Hospitality, China University of Science & Technology, Taiwan
Po-Tsang Chen
Assistant Professor of Department of Hospitality Management, Ming Chuan University, Taiwan
Fu-Ming Chiang* (Corresponding author)
Professor of Department of Marketing and Distribution Management, Tajen University, Taiwan
Keywords: medical resources utilization, capital factors, elderly people.
ABSTRACTThe previous literature has indicted that capital factors are key components for understanding individual’s behaviors. However, it has not been effectively in addressing the relative subjects in policies planning literature. A regression analysis approach was undertaken in order to provide a better understanding about the research issues. The analysis identified the significant influences of capital factors on medical resources utilization behavior of the elderly people in Taiwan. Administrative implications and research limitation of the study findings were discussed. Suggestions for further research were provided.
Smart Money or Dumb Money? The Evidence from Taiwan
Sheng-Tang Huang
Assistant Professor of Department of Finance, Nanya Institute of Technology, Taiwan, R.O.C
Tsung-Hao Chen
Assistant Professor, Department of Business Administration, She-Te University, Taiwan, R.O.C
TEL: +886-3-4361070 ext 5509
E-Mail: tom@nanya.edu.tw
Keywords: smart money, dumb money, mutual fund performance, fund size
ABSTRACTWe showed the mutual fund flows in Taiwan during the global subprime mortgage storm. The changing of mutual fund size is from the changing by the mutual fund performance and the spread between the subscription and redemption of fund size. We found the subscription of fund size was larger than the redemption of fund size during this period. We found the institutional investors have timing ability by significantly redemption when negative mutual fund performance, but the individual investors do not.
An Empirical Study of Myopic Loss Aversion on Taiwan Security Risk Premium
Ming-Hsien Chen*
*Corresponding Author, Assistant Professor, Department of Finance, National Kaohsiung First University of Science and Technology, Taiwan
TEL: +886-7-6011000 ext. 4017
E-Mail: morris.mhchen@gmail.com
Grace Chun-Chen Lin*
*Executive, WL International Financial Consultants Co., Ltd, Hong Kong
TEL: +852-8199-9487886
E-Mail: gracelin167@gmail.com
Keywords: myopic loss aversion, equity premium puzzle
ABSTRACTWe investigate equity risk premium (ERP) and explain the ERP puzzle in Taiwan security market from Myopic Loss Aversion (MLA). The risk premiums, estimated from the fundamentals suggested by Fama and French (2002), cannot explain the ERP in Taiwan. MLA’s evaluation periods are indifferent between risky portfolio and riskless one is about ten months. The results indicate that market price of risk shows the longer the holding period the more significant the estimates are, and the shorter the holding period, the smaller the estimated market prices of risk. The empirical results are consistent with the MLA viewpoint.
Hedging With Futures Contract: Estimation and Performance Evaluation of Optimal Hedge Ratios in European Union Emissions Trading Scheme
John Hua Fan
Eduardo Roca
Alexandr Akimov
Department of Accounting, Finance and Economics, Griffith University, Australia
ABSTRACTFollowing the introduction of the European Union Emissions Trading Scheme, CO2 emissions have become a tradable commodity. As a regulated party, emitters are forced to take into account the additional carbon emissions costs in their production costs structure. Given the high volatility of carbon price, the importance of price risk management becomes unquestioned. This study is the first attempt to calculate hedge ratios and to investigate their hedging effectiveness in the EU-ETS carbon market by applying conventional and recently developed models of estimation. These hedge ratios are then compared with those derived for other markets. Inspite of the uniqueness and novelty of the carbon market, the results of the study are consistent with those found in other markets – that the hedge ratio is in the range of 0.5 to 1.0 and still best estimated by simple regression models.
A Study of Grey Theory on Improving the Investment Performance of Technical Analysis Index —An Example of the DAX Index’s Component Stocks
Alex Kung-Hsiung Chang
Professor Dep. Of Business Administration, National Pingtung University of Science and Technology
1 Hsefu Rd. Neipu Pingtung, Taiwan 912
E-Mail: bear419@mail.npust.edu.tw
Hsiao-Ching Hung
First Commence Bank, Taiwan
Keywords: GM (1, 1), DAX Index, Weak-form Efficiency Market Hypothesis (EMH), Technical Analysis Index, KD, RSI, BIAS, WMS%R.
ABSTRACTUsing the daily, weekly and monthly data of the DAX Index’s Component Stocks from January 2003 to March 2009 as examples, this paper try to improve the investment performance of technical analysis indices in Germany Stocks Exchange Market. First of all, this paper whitens original data through a grey model GM (1,1), and grey technical analysis indices are obtained. We use traditional technical analysis indices like RSI, BIAS, KD, and WMS%R as agency indices; compare the investment performance between original and grey technical analysis indices. Based on the empirical results, we find:
Ten of twelve technical analysis indexes can improve the investment performance over 57% than the original ones which significant at 95%. Especially daily, weekly, and monthly BIAS can improve the investment performance over 77%. Obviously the results indicate that the investment performance after GM(1,1) treatment are better than those of pre-GM(1,1) treatment. And investors can use the grey technical analysis indexes to obtain higher investment returns in Germany Stocks Exchange Market. But due to almost the pre and post-GM(1,1) treatment of technical analysis can’t obtain extra profit than the buy-and-hold strategy (BHS), the weak-form efficiency market hypothesis (EMH) in Germany Stocks Exchange Market could not be rejected significantly.
Using Data Envelop Analysis to Examine the Performance and Influential Factors in Construction Industry: A Balanced Scorecard Perspective
Henry H.Y. Hsieh
Assistant professor, Department of Business Administration
National Pingtung University of Science and Technology, Taiwan, R.O.C
Tel: +886 8 77032202 ext. 7694
Email: henry@npust.edu.tw
Yu-Hsin
Yeh, Hsin-Ten Deng
Hsin-Ya Huang
Wan-Chi Chuang
Keywords: SCP, Strategic performance, Balanced Scorecard, Positioning, Strategic direction
ABSTRACTThis research examines the performance of 27 listed construction companies in Taiwan during 2003-2007, based on Balanced Scorecard as a strategic performance measurement. The financial and customer dimensions are the results of organizational internal efforts treated as output variables. The internal process and learning & growth dimensions of organization are treated as input variables. Data Envelop Analysis is used to position companies’ strategic performance, then a pooled cross-sectional time-series during 2003-2007 is used to identify influence factors of company’s performance by Tobit regression analysis. We found that construction companies mostly are inefficient in scale, investing too much in inventory and land. We use pure technical efficiency and scale efficiency to classify construction companies into four groups, i.e. Outperforming, Technically efficient, Scale efficient, and Low performing companies. Two Tobit regression models, i.e. total technical efficient (TE) and pure technical efficient (PTE) models, are tested to examine causes of performance. External environment structure, organizational conduct, and organizational resources all influence the technical efficiency (TE), consistent with SCP model and RBV theory. In pure technical efficiency (PTE) model excluding scale economy, external environment and organizational conduct factors play important role to PTE but organizational resources positions are insignificant. Outperforming companies can maintain competitive advantage by a sustaining strategy such as first mover and expansion strategy. Technical efficiency companies can increase scale efficiency by reducing scale and improving inventory and scale turnover. Low performance companies can improve scale efficiency first and then pure technical efficiency such as considering external factors and organizational conduct factors i.e. strategy, organization efficiency, and employee efficiency.
A Study of Tainan Consumers’ Expectation and Perception Toward Buffet Restaurants
Chia-Sheng Yeh
Associate Professor Student of Department of Hospitality Management, Southern Taiwan University, Taiwan, R.O.C
E-Mail: yehcs@mail.stut.edu.tw
Jong-Jeng Liang
Assistant Professor of Department of Hospitality Management, Southern Taiwan University, Taiwan, R.O.C
E-Mail: yehcs@mail.stut.edu.tw
Yuan-Hui Lin*
Associate Professor of Department of Hospitality Management, Chung Hwa University of Medical Technology, Taiwan, R.O.C.
E-Mail: yhl@mail.hwai.edu.tw
*Corresponding Author
Yng-Shyuau Lay
Student of Department of Hospitality Management, Southern Taiwan University, Taiwan, R.O.C
Keywords: Consumer Behavior, Customer Expectation, Buffet Restaurant.
ABSTRACTThe purpose of this study was to examine consumers’ expectation and perception toward buffet restaurants in Tainan due to the raising needs of customers’ expectation and higher competition in this society. This study employed 430 questionnaires and conducted descriptive and statistical inference methods to generate results. The finding revealed 37.5% of respondents demonstrated high interests on visiting buffet restaurants and willing to consuming frequently. Sixty four percentage of male respondents and 79.7% of female respondents expressed that they come for enjoying abundant meal. Chi-square test reported female participants perceived higher importance than male. Age between 26-35 reported highest visiting frequency and 41.5% of them visit 1-3 times a month. In addition, those participants who possess higher educational level demonstrated higher expectation on service quality. Researchers suggested to investigate the relationships of customers’ health condition (obesity) and buffet restaurants for further study.
Developing A Conceptual Model of Service Recovery Quality
Shu-Yi Liaw, Yi-Wen Yang
Department of Business Administration,National Ping Tung University of Science and Technology, Ping Tung, Taiwan, R.O.C
E-Mail:syliaw@mail.npust.edu.tw
Shih-chung Cheng
Senior Researcher and Director, Department of University Textbooks, National Institute for Compilation Translation
E-Mail:cheng@mail.nict.gov.tw
Keyword: Service Quality, Service Recovery Quality, Gap analysis
ABSTRACTFrom the view of research methodology, these approaches loose off researchable integrity and seriousness. This research goes on with the qualitative research approach, and in-depth interviews 40 customers and 24 service staff that have ever experienced service recovery. Sampling objects focus in six service industries including retail business, cosmetics, restaurant, maintenance, medical treatment, and financial insurance & communication industry. Finally, via depth interview and conversation records, we transfer draft word for word into the written materials and conclude 14 key factors of SRQ. This study aims to construct a conceptual model of SRQ is constructed. Gaps happened among those resource entities which defined in the SRQ model are also discussed. The results are help to the researcher while undergoing gap analysis of SRQ, and support the managers planning the appropriate strategy of SRQ.
The relationship between top management team commitment and alliance performance – mediator of alliance learning mechanism
Mu Hua Chen
Xing Ming Tian
Phd student and Professor of Antai College of Economics & Management, Shanghai Jiaotong University, China
TEL: +886-910695246
E-Mail: kay@mail.goodnet.com.tw
Yan-Hao Chen
Bih-Shiaw Jaw
Graduate Phd student and Professor of Institute of Human Resource Management, National Sun Yat-sen University, Taiwan.
E-Mail: bsjaw510@mail.nsysu.edu.tw
Keywords: Top management team commitment, Alliance Learning, Alliance performance.
ABSTRACTThis research aims to investigate the influences of top management team (TMT) commitment and alliance learning mechanism on alliance performance. On the basis of 233 valid questionnaire surveys, the model is tested in the structural equation model. The results indicate that TMT’s commitment significantly and positively affects alliance learning mechanism while alliance learning mechanism significantly and positively affects alliance performance. In addition, alliance learning mechanism plays important mediator role in alliance activities. TMT’s commitment does not have significant effect in alliance performance and must accompany with the support of alliance learning mechanism in order to achieve better alliance performance.
Strategic Selection and Strategic Change-Examples from Food Industry and Textile Industry
Chan-Wei Tsai
Assistant Professor of Department of Business Administration
National Pingtung University of Science and Technology
E-Mail: tsaidaniel@mail.npust.edu.tw
Shan-hsuan Liu
Department of Business Administration, National Pingtung University of Science and Technology
E-Mail:bryant5491@hotmail.com
Keywords: Strategic Selection; Strategic Change,
ABSTRACTThis paper classify Strategic Management according to two dimensions; Content vs. Process, and Environment vs. Organization. Strategic Management can be thus partitioned into four approaches―The Planning Approach, The Positioning Approach, The Emergent Approach, The Resource Approach. In this paper we use a case-oriented comparative method to discuss the strategic selection and strategic change of four different corporations based on these four approaches. Finally, theoretical, empirical and managerial implications are drawn from this study.
