Intra-Business Groups Transaction for Inducing Relationship between Network and Performance: Could the Network be Optimized?*
Professor of Department of Accounting, and Department of Finance, Shih Chien University, Taiwan, R.O.C.
Associate Professor of Department of Finance, Ming Chuan University, Taiwan, R.O.C.
*This study is completed thanks to the funding and support from the research grants of National Science Council, project number: NSC 98-2410-H-147-011-MY2
Keywords: Network Linkage, Operating Performance, Business Groups, Family Groups
This study examines whether if an optimal scale exists between network linkage and firm performance by using a panel of business groups listed on Taiwan Stock Exchange from 2006 through 2008. We use related-party sales-purchase linkage and gaps of receivable-payable in related-party accounts as the proxies of network linkage; also, the offset effect of the cost of the network is considered in the model. The results show that IT groups intend to maximize their profit with related-party sales-purchase linkage. Large groups gain favorable revenue effect through related-party sales network linkage; however, small groups obtain the favorable cost effect through related-party purchase network linkage. Non-family groups prefer related-party sales network linkage strategies, but family groups favor the related-party purchase network linkage strategies.
Investor Sentiment, VIX and Trading Volume
Violet U. T. Lei, Simon M. S. So*, Maggie L. J. Zou
Faculty of Business Administration, University of Macau
*Corresponding author. Address: University of Macau, Avenida Padre Tomás Pereira, Taipa, Macau, China; Tel: +853 8397 4715; fax: +853 2883 8320; e-mail: firstname.lastname@example.org
Keywords: Sentiment; Trading Volume; Volatility
As noise traders affect stock market by trading, sentiment, as a signal of noise, may have relationships with trading volume. This paper explores the effect of sentiment on the stock market’s trading volume. Increase in Volatility Index (VIX) can explain the percentage increase in trading volume, but only in high VIX period. Besides, higher level of VIX is likely to be associated with greater variability of trading volume. The noise traders add liquidity to the market and provide more chances for investors to time their trade as the volatility of liquidity increases. These two kinds of impact lower rational investors’ required return. The noise traders not only drive the price deviating from fundamental value, but also influence the liquidity dimensions.
JEL Classification: G12; G14
The Profitability of Moving-Average-Based Trading in Taiwanese Options Markets
Associate Professor of Department of Business Administration, I-Shou University, Taiwan, R.O.C
Keywords: Technical Analysis; Moving Average; Taiwan Stock Index Options
We assess the ability of Simple MA(SMA) to predict stock price movement in Taiwan markets. Our objective is to determine a good way of making profit from trading Taiwanese options. The research is the first study on the cross-sectional profitability of MA(hereafter MA). Unlike existing studies that apply MA to either market indices or individual stocks, I apply it to options markets that are very volatile.
This paper creates a successful trading strategy for use in the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX). This paper uses MAto predict TAIEX movement and then use the derivative option (hereafter TXO) in TAIEX to make money. The contribution of this paper is that this paper provides the first study on the TXO profitability of MA. This paper found the MAtrading rules generates a strictly positive excess return, even if corrections are made for transaction costs, risk and data snooping. Taiex Options, Taifex is Top 11 Equity Index Futures & Options Contracts in the world (appendix).
A Study on the Relationship Content, Relationship Quality and Relationship Result of University and Cram School
Assistant Professor, Department of Business Administration, Shu-Te University, Taiwan, R.O.C.
Hsien-Chueh Peter Yang
Associate Professor, Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology, Kaohsiung, 811, Taiwan, R.O.C.
Associate Professor, Department of Business Administration, Overseas Chinese University, Taiwan, R.O.C.
Professor, Department of Finance, Overseas Chinese University, Taiwan, R.O.C.
Doctoral Student, Department of Management, Massey University, Auckland, New Zealand
TEL: +886-7-6158000 ext3100
E-Mail: *Corresponding author: email@example.com
Keywords: Institute School, Relationship Content, Relationship Quality, Relationship Result
Under the pressure of having better schools to study, in the need for cram school is increasing. It is a common knowledge that some students go to other classes (such as extra math English class) after school. This is especially true for those students who aim to advance to a higher learning school Thus, it is vitally important to obtain information from the cram school institutes. As a result, this research adopts convenient sampling survey to collect questionnaires from those students who study in the cram schools. The research seeks to confer what are the main points for students to choose their cram school by relationship content, relationship quality and relationship result using various schemes and analysis such as descriptive statistic, paired t-test, factor analysis, reliability analysis, analysis of variance, regression analysis and SEM (structural equation modeling) by SPSS 15.0. Finally, this research provides suggestions to cram schools and aids them to provide better service to their customers when they put relationship marketing into practice.
Operational Risk Insurance: An Empirical Study of Banking Industry in Taiwan
Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan
E-Mail: horngms@ ccms.nkfust.edu.tw
Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan
Keywords: operational risk, loss frequency, loss severity, ordered logistic regression
BASEL II, the second of the Basel Accords, has required banks to calculate their BIS ratio. Under BASEL II, operational risk charges are divided into three different approaches – (i) the Basic Indicator Approach or BIA; (ii) the Standardized Approach or STA; and (iii) the Advanced Measurement Approach or AMA. Banks using AMA, for the occurrence of low-frequency, high-loss activity, are allowed to apply insurance to offset the operational risk charges, while the counterbalanced amount shall not exceed 20% of operational risk charges.
The primary purpose of this study was to investigate the operational risk loss situation in Taiwan’s banking, especially, considering the individual risks, the impact factors, severity of loss and frequency of loss were provided as a basis for addition and subtraction rate to individual bank. Given that the factors of addition/subtraction to individual risk, applying Multiple Regression Procedure to severity of loss would present the impact factors were returns on assets, total assets, staff turnout, GDP and the evaluation of operational risk charges under the category seventh before and after 2007. Meanwhile, applying Order-Logistic Regression Procedure to frequency of loss found that impact factors were price-book ratio (PBR), total assets, BIS ratio, the proportion of manager-in-director position, dividend payout ratio, cash flow and the number of directors and supervisors.
The High-Order Moments and Extreme Value Approach for Value-at-Risk
Professor of Dept. of Risk and Insurance Management, National Kaohsiung First University of Science and Technology
Associate Professor of Chang Jung Christian University
Dept. of Risk and Insurance Management, National Kaohsiung First University of Science and Technology
We modify a two-step approach by McNeil and Frey (2000) for forecasting Value-at-Risk (VaR). Our approach combines the asymmetric GARCH (GJR) model that allows the high-order moments (i.e., skewness and kurtosis) of the skewed generalized t (SGT) distribution to rely on the past information set to estimate volatility, and the modified Hill estimator (Huisman et al., 2001) for estimating the innovation distribution tail of the GJR model. Using back-testing of the daily return series of 10 stock markets, the empirical results show that our proposed approach could give better 1-day VaR forecasts than McNeil and Frey (2000) and the GJR/GARCH models with alternative distributions. The evidence demonstrates that our proposed 2-step approach that incorporates the modified Hill estimator into the GJR model based on the SGT density with autoregressive conditional skewness and kurtosis provides consistently accurate VaR forecasts.
The Impact of Credit Rating on Corporate Trade Credit Policies
Professor, College of Business Administration, University of Missouri-St. Louis, U.S.A.
Professor, Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology, Taiwan
Ph. D. candidate, Institute of Banking and Finance National Kaohsiung First University of Science and Technology, 2 Jhuoyue RD., Nanzih, Kaohsiung City, 811, Taiwan, R.O.C.
Keywords: Trade Credit, Accounts Receivable, Accounts Payable, TCRI
This paper examines the trade credit management policies of Taiwanese listed firms in a tightening monetary policy environment. Meanwhile, the variables including Taiwan corporate credit rating index (TCRI), Industrial Concentration and Family-owned Business, are the first time used in literature to analyze the determinants of trade credit. The empirical results show that both the demand (accounts payable) and supply (accounts receivable) of trade credit expand while the economy experienced a recession, implying that trade credit can help firms to absorb the credit condensation effect. In addition, we conclude that the TCRI has a strongly positive effect on the supply side of trade credit for all listed firms, while on the demand side, the availability of trade credit is much less important for the small firms. Finally, as compared with other firms, we find that the family-owned firms reduce the supply of trade credit to their customers. Also, they reduce the reliance on trade credit, which can decrease their financing costs.
Exploring the Antecedents of Customer Satisfaction: an Integrated Research Framework—Banks in Malang City, Indonesia as an Example
David Ching-Lung Shen
Associate Professor, Department of Business Administration, National Pingtung University of Science and Technology
Master Student Double Degree, Department of Business Administration, Brawijaya University and National Pingtung University of Science and Technology
Eko Ganis Sukoharsono
Professor, Department of Business Administration, Brawijaya University, Indonesia
Keywords: Customer Relationship Management (CRM), Innovation Capability, Corporate Image, Corporate Social Responsibility (CSR), Ethical Behavior, Customer Satisfaction, Customer Loyalty
The banking sector requires finding the right strategy in providing Customer Satisfaction and increase Customer Loyalty. Based on previous empirical researches, this study emphasizes the importance of Relationship Management (CRM), Innovation Capability, Corporate Image, Corporate Social Responsibility (CSR), and Ethical Behavior as the antecedents of Customer Satisfaction. Data were collected from 400 customers of Bank in Malang City, East Java, Indonesia and analyzed by using Structural Equation Model (SEM). The major findings include first, Customer Relationship Management (CRM) have significant effect on Customer Satisfaction. Second, Innovation Capability has significant effect on Customer Satisfaction. Third, Corporate Image has significant effect on Customer Satisfaction. Fourth, Corporate Social Responsibility (CSR) has significant effect on Customer Satisfaction. Fifth, Ethical Behavior has significant effect on Customer Satisfaction. And sixth, Customer Satisfaction has significant effect on Customer Loyalty.
Key Factors and Core Competencies for a Successful Business Start-Up
Keywords: Core competencies for business start-up, key factors for a successful business start-up, 3P for Business Start-up, Prospect, Perseverance, Passion
Needs plays a key role in creativity and business start-up. Materializing ideas and pursuing better living are the motive for youth to start up a business. However, needs and ideas do not guarantee the success for a new creative business. What may improve the chances of success for a business start-up are the business owner’s core competencies and management knowledge. The author believed that prospect, perseverance, and passion (3P) are the core competencies for someone who intends to start up a business. The author also drew up a map for starting up a business based on the concept of PDCA. The purpose of this article was to draw the key factors and core competencies for a successful business start-up based on experience. Data analysis will be conducted in the future to demonstrate the assumption proposed in this article.
Study on Tanwanese Mainland Investment Motives, Stages and Influencing Factors of Industrial Layout
LIEN-HSIANG PAN / HE RONGYOU / WEI KAIHUA
Keywords: Tanwanese, Investment Motives, Stages, Industrial Layout
The investment of Taiwanese in mainland China comes up with special historical settings and attributes to its inevitable pursuit of the maximum profits. The paper conducts the research in three aspects, namely, the motive of Taiwanese investment, stage division and the influencing factors of industrial layout. Regarding the investment motive, the mainland that encourages Taiwanese to invest has both political and economic motives while Taiwanese mainly invest with economic motive. The whole process can be divided into three stages. When the influencing factors of industrial layout are mentioned, geographical location, policies, level of economic development, degree of industrial agglomeration and costs should be listed.
The Study of Enneagram and Work Values of Post-80s Generation
Jacky G.H. Chen / Ya-Fang Jeng
Keywords: Post-80s Generation, Work Values, Enneagram
Born and raised in the more affluent and privileged information technology environment, many of the Post-80s generation unwilling to sacrifice themselves in order to work on the pursuit of dreams, will not make compromises for income do not like, do not want to work overtime accounted for go to the recreation time, do not want to live to see the boss face. In short: They want to be their own masters, and to pursue their ideal life. Under this circumstance, Post-80s generation’s stability and loyalty of its workplace are much lower compare to 70s and elder generation. On the contrary, they perform much better on creativity and flexibility to adapt to the changing environment. The work values gap between the different generations in the workplace bringing new challenges to managers nowadays.
However, in fact, there are still many differences between individuals, even young people born after 1980, there is still a certain proportion having similar values with 70s, 60s, or even 50s generations. This issue has yet to be clarified. Thus, this study pursue has divided work values into five dimensions, including “growth value”, “respect value”, “interpersonal value”, “security value”, and ” organizational values “. In addition, in order to understand if the personality traits have impact on Post-80s generation’s work values at certain level, this study adopt “Enneagram” which bringing instant awareness of individual’s core desires and fears as personality assessment tool in order to identify the connection between and provide effective recommendations for corporate talent management practices.
The study interviewed twenty-six Post-80s workers to collect the information about their Enneagram personality type and work values respectively.
The follow are three conclusions of this study:
(1)Each enneagram type of Post-80s shares different work values on the aspect of growth, respect and interpersonal dimension.
(2)The proportion of enneagram type 2, 7, and 9 of Post-80s has higher level above average.
(3)The proportion of enneagram type 1, 3, and 8 of Post-80s has lower level under average.
Those found reflect the common features of Post-80s nowadays. Future academic research and managerial practical suggestions are provided based on the results of this study.
An Empirical Research of Chinese Five-Phases Theory on Selection Strategy of
Taiwan Stock Market
Alex K.H. CHANG / Chris C.Y. LIAO
Keywords: Five-Phases Allelopathy Model, Chinese Numerology, Taiwan Stock Market
Based on the Five-Phases Allelopathy Theory of Chinese numerology, this paper establishes a stock selecting model. In this study, we use the theory of the Five-Phases of Chinese numerology as the main concept of the modeling establishment, of which the five elements gold, wood, water, fire, earth’s allelopathy relations as the main concept. We use all stocks’ monthly data in the Taiwan stock market as sampling data from 2000 to 2012, totally as 13 years. This study uses two steps to verify the use of the Five-Phases Allelopathy Theory in the Taiwan stock market. The results show that the textile and rubber industry’s stocks belonging to wood-phase obtain a highest accuracy of 77% in sampling period from a natal numerology. And from the view of appropriate of different natal industry group in sequencing years, eight of thirteen years match the Five-Phases Allelopathy Theory that the average return of the high-paid group is higher than the average return of the low-paid group, accuracy up to 68%.
An Empirical Research of Chinese Five-Phases Theory on Selection Strategy of
China Stock Market: An Example of CSI 300 Constituent Stocks
Alex K.H. CHANG / Yi Chen TSAI
Keywords: Five-Phases Allelopathy Model, Chinese Numerology, CSI 300 Constituent Stocks
Based on the Five-Phases Allelopathy Theory of Chinese numerology, this paper establishes a stock selecting model. In this study, we use the theory of the Five-Phases of Chinese numerology as the main concept of the modeling establishment, of which the five elements gold, wood, water, fire, earth’s allelopathy relations as the main concept. We use CSI 300 Constituent Stocks’ monthly data in China stock market as sampling data from 2000 to 2012, totally as 13 years. This study uses two steps to verify the use of the Five-Phases Allelopathy Theory in the China stock market. The results show that the special industry’s stocks belonging to metal-phase obtain a highest accuracy of 93.16% in sampling period from a natal numerology. And from the view of appropriate of different natal industry group in sequencing years, eight of thirteen years match partly the Five-Phases Allelopathy Theory that the average return of the high-paid group is higher than the average return of the low-paid group.
An Empirical Research of Chinese Zi Wei Dou Shu Theory on Selection Strategy: An Example of CSI 300 Constituent Stocks
Alex K.H. CHANG / HSIANG-CHUN WANG
Keywords: Stock Selection, Zi Wei Dou Shu, CSI300 Constituent Stocks
In this study, the theory of the Zi Wei Dou Shu of Chinese numerology as the main concept using three elements such as good, even and bad fortune. With the three elements, this study verifies the capacity of Zi Wei Dou Shu to forecast the rate of return. The aim of this study is to forecast the China stock market CSI300 index stocks by secondary data collection and study a period of 13 years from 2000 to 2012. This study analyzes data using two dimensions, one is to examine the validation of grand fortune forecast in the China stock market and the other is to verify separate rate of return in each year.
The Impacts of Events on the Behavior of Residential Construction Industry
Henry H.Y. HSIEH / Pin-Tse CHEN
Keywords: SCP, Global Financial Crisis, High Speed Rail, Events, Developer behavior, Individual rationality, Group irrationality
The developer’s behavior is greatly influenced by foreign and domestic events, such as the Global Financial Crisis and the High Speed Rail .The research predicates the Structure-Conduct-Performance(S-C-P) model to discuss industrial behavior of construction industry in Taiwan. A sample of 20 cities and counties in Taiwan during 1999 to 2011 accounted for 260 observations are examined. In OLS regression model, Global Financial Crisis and High Speed Rail variables have significant impact on developers’ behavior. While in dynamic market model a Two-Stage Least Square Method (2SLS) is used to analyze construction industrial behavior. Global Financial Crisis is negatively significant to approvals in both static and dynamic models, indicating the construction industry in Taiwan being closely related to global economy. In addition, High Speed Rail is significant and positively related to approvals in static and dynamic models, indicating High Speed Rail having a positive impact on the construction industry and the housing market in Taiwan. Events are crucial to the changes in the construction industry precipitating group irrational behavior. It is suggested that developer should analyze the macro environment and differentiate himself. In addition to rationally considering his position, developer should pay attention to the external analysis. How to overcome individual and group irrationality? It is suggested that developer should improve both individual rationality and group rationality to widen the rational window.
Exploring the Theoretical Patterns in Public Policy Implementation to Promote the People’s Livelihood through Informatization
Huang Gang / Zeng Fantao / Han Meifang
Keywords: Informatization; the people’s livelihood; public policy
The government is always focus on the people’s livelihood. It is very necessary and important that the government advance the people’s livelihood through informatization. During a 20- year- study of policy implementation in the West, many scholars have raised different policy implementation plans and patterns, among which typical ones are the top- down, bottom- up and the integrated pattern raised later. Debates of the three patterns have greatly enriched the theoretical connotations of the policy science, and made it more scientific and more democratic to draw up and implement public policies. Based on it, the paper raised “subject-tool-pattern” theoretical patterns in public policy Implementation to promote the people’s livelihood through informatization.
An Empirical Research on Consumer’s Cognitive Behavior Patterns to Physical and Digital Product under the Internet Environment
Zeng Fantao / Han Meifang
Keywords: Physical Product, Digital Product, Cognitive Behavior
The internet consumer’s cognitive behavior existed as two patterns bases on the theory of forecasting behaviors from attitude and social cognitive psychology. We classified products as physical product and digital product, constructed two patterns of consumer’s cognitive behavior based on complexity science management theory. The patterns was corrected based on empirical research.
Discussion of Promoting the Development of Trade and Economic Relations between Guangxi and Vietnam
Keywords: Guang Xi, Vietnam, Economic and Trade Relation, Development, Analyze
With the normalization of bilateral relations, especially the establishment of China-ASEAN Free Trade Area, economic and trade cooperation between Vietnam and china has become closer and closer, and the economic, political and cultural exchanges and cooperation activities also become more frequent. As an important gateway to Vietnam and the other Southeast Asian countries, Guang Xi has its own advantage for development. How can Guang Xi government and enterprises seize the opportunity to develop economic and trade cooperation for Vietnam, realize advantage complementation, promote regional economy development and build a harmonious socialist society are, and will be a task to research.
The Application of Complexity Science in the Study of Karst Land Systems
Fan Yan-hong / Hu Bao-qing / Wang De-guang
Keywords: Karst land system; Rocky Desertification; complexity science; complexity
The purpose of this article is to discuss the principles, methodological systems and specific applications of complexity science used in karst land system. Methods of documentation and logical analysis are applied. The results show that complexity Science can be well used in karst land system and solve the land use problems in karst areas. It is conclude that The complexity of the science used in karst land system is still in the initial stage, most studies still remains in the theoretical aspects and most analysis is on qualitative levels, The system consider of some parameter settings and model constructions in model application is not comprehensive enough and arbitrary, that the operability on solving practical problems need to be strengthened.
Strengthening Guangxi and Taiwan’s cooperation of Cold-Chain Logistics to Develop Agricultural Products in Guangxi’s “Ice Channel”
Peng Xin / Zhong Ping / Peng Siyu
Keywords: Cold-Chain Logistics, Agricultural Products Cold-Chain Logistics, Cooperation
The establishment of cold-chain logistics and it’s pursuit of perfection in the agricultural industry is not only related to the construction of the food chain system, but also effectively improves food safety and people’s living standards. The future market for fresh food logistics in various cities across China contains a multitude of business opportunities. The development of agricultural products in cold-chain logistics has become the focal point of all levels of government departments and related enterprises. However, the layout for cold-chain logistics of agricultural products in Guangxi is unreasonable with unsound function-set practices and low-temperature logistics distribution centres. In addition, the slow speed of value-added service innovation and cold-chain logistics business model has affected the degree of scale and socialisation of Guangxi’s agricultural products.
The current development of Guangxi’s agricultural products cold-chain logistics development presents existing problems. Based on an environmental analysis, it is highly recommended that synergy and cooperation is required from four perspectives to stimulate the development of cold-chain logistics in Guangxi: the cold-chain logistics industry, product manufacturers, scientific and technological contribution, and academic exchanges.
Construction of Evaluation Model of CDM Sustainable Development in western of Guangxi
Keywords: western of Guangxi, CDM, sustainable development, evaluation
The Clean Development Mechanism (CDM) is a cooperation mechanism between the developed and developing countries. The CDM project not only save the emission reduction cost for developed countries, but also provide capital and technology for developing countries, and achieve the win-win among the environment, developing countries, the developed countries. However, the success rate of CDM projects application is not high. To improve the situation, we establish the CDM project evaluation system in the western of Guangxi, which is about the sustainable development of CDM projects, and provide reference and experience for future CDM projects cultivate in Guangxi.
The Research in Discussing the Strategy Process of HTC Corporation from the Perspective of Narrative Strategy Story
Daniel Chan-Wei Tsai / Yu-Fang Huang
Keywords: Strategic Selection, Strategic Change, Strategy Process Research, Narrative Strategy Story
Strategic content research mostly belong to an analysis of static state and single layer, and study method also use quality research. But strategy content research become much popular than strategy process research, no matter at the academic theories or industries field of complex and variety strategic studies. We think strategy is not only a conclusion of choice, but it is a dynamic linkage of chain that combined by many single strategy events, its essence is difference and link, and we name this concept as Narrative Strategic Story. In this paper, we uses HTC Corporation to be an example to explain Strategic Selection and Strategic Change. In addition, this study tries to build a theory of Narrative Strategic Story to confirm an academic position of Strategic Process Research by empirical research. In the meantime, we wants to explore strategic studies by Narrative Strategic Story and provide some advice for the development of Strategic Process Research.
Study on Policies for Carbon Finance in China’s Western Region— Based on “Negative Cost” Low-Carbon Economy
Yan Qin / Xin Liao / Hai-Yong Jiang
Keywords: Western Region, Carbon Finance, Negative Cost, Low-Carbon Economy
Low-carbon economic development and financial development are mutually reinforcing. Compared to administrative means, carbon finance market is obvious advantages by the aspects of low abatement costs and saving effect. Therefore, how to develop carbon finance better is one of the problems of the low-carbon economic development in China.
Though domestic and foreign scholars studied carbon financial market and the establishment of carbon financial system deeply, they rarely on reducing the cost of low-carbon economic development. Based on “negative cost” proposed by McKinsey & Company research report, the Cost Curve for Greenhouse Gas Reduction, carbon finance mechanism diagram supporting the “negative cost” low-carbon economy are established. The deficiency of carbon finance policy of the western region is proposed, including green credit mechanism fail and low loan size, CDM projects face a variety of challenges, regional carbon trading problems is difficult to carry out.
Therefore, this paper proposes policies to promote the development of carbon finance in the western region: promoting green credit, changing CDM projects from “finance” to “the introduction of technology”, and promoting regional voluntary emissions trading to form carbon market.