Network Resources for Internationalization: The Case of Taiwan's Electronics Firms*

ABSTRACT This paper illustrates foreign direct investment (FDI) as the management of important network relations, using Taiwan's electronics firms as an example. Through FDI, seemingly small and weak firms propel the process of internationalization by making maximum use of external resources to which they have access. FDI often starts at a location close to the home base where support from the domestic networks can be drawn, subsequently moving on to more distant locations after investors have accumulated new network resources. The location chosen is usually an area rich in network resources or in close proximity to such rich networks. FDI enables the investors to construct a regional, or even global, sub‐network under their control to supply a set of wide‐ranging, differentiated and low‐cost products in a flexible fashion, and sometimes within close proximity to the markets. With this capacity for versatility, investors become valuable partners for multinational firms that offer global services.     

Intraday Lead-Lag Relationships Between the Futures-, Options and Stock Market

In rational, efficiently functioning and complete markets, returns on derivative and underlying securities should be perfectly contemporaneously correlated. Due to market imperfections, one of these markets may reflect information faster. The use of high-frequency data and the choice for a small unit time interval to measure these lead-lag relations comes at the cost of some or many missing observations, causing traditional estimators to either under- or overestimate covariances and correlations. We use a new estimator to estimate lead-lag relationships between the cash AEX index, options and futures. We find that futures returns lead both options and cash index returns by approximately 10 minutes. The relationship between options and the cash market is not completely unidirectional.     

Why students take elective business ethics courses: Applying the theory of planned behavior

Despite the prevalence of elective business ethics courses, little research has sought to explain and predict why some students enroll in these courses and while others do not. Using the theory of planned behavior (Ajzen and Madden, 1986) as a theoretical foundation, 178 graduate students in Ireland were surveyed about their intention to sign up for an elective ethics class. Their behavior was measured two months later. The results reveal the power of the theory of planned behavior to explain and predict who takes elective ethics classes.Donna M. Randall is an associate professor and chair in the Department of Management and Systems at Washington State University. Her research interests include business ethics, organizational commitment, and reproductive risk in the work place. Her work has appeared inJournal of Business Ethics, Decision Sciences, Academy of Management Review, Journal of Vocational Behavior, Journal of Business Research, and others.     

DURATION MOMENTS AND YIELD CURVE MOVEMENTS

In this paper we will analyze the relationship between the value and duration moments of a cash flow and movements in the yield curve. We will show that for changes in the yield curve which can be related to tⁿ , the 1st order changes in the net present value of a cash flow are linearly dependent on the n + lth duration moments, and that the 2nd order changes are dependent on the sum of duration moments of order 2 n + 1 and 2 n + 2. We will use this relationship to tilt tracking portfolios so as to protect them against specific changes in the yield curve.     

The financing decisions of REITs: The case of warrant extensions

In this paper, we examine the warrant price and stock price reactions to the announcement of warrant life extensions by REITs. As predicted by option pricing theory, warrant prices increase in response to these extensions. The stocks of REITs making the extension announcements experience average abnormal returns that are not significantly different from zero. Thus, total firm value appears to increase, with the gains accruing primarily to the warrantholders.