Government ownership,corporate governance and tax aggressiveness: evidence from China

This study investigates how government ownership and corporate governance influence a firm's tax aggressiveness. Using Chinese listed companies during 2003–2009, we find that compared with government‐controlled firms, non‐government‐controlled firms pursue a more aggressive tax strategy. In particular, non‐government‐controlled firms with a higher percentage of the board shareholdings and with a CEO who also serves as the board chairman are more aggressive. For government‐controlled firms, we find that board shareholding has an impact on tax aggressiveness and it does not differ between local and central government‐controlled firms. However, local government‐controlled firms in less developed regions where the implementation of corporate governance measures is generally less effective are more tax aggressive than those in other regions.     

Modelling Accounting Populations for Ratio Estimation in Audit Sampling

The classical ratio estimator is one of the auxiliary information estimators frequently discussed in the audit sampling literature. The major weakness of this estimator is its unreliability when accounting populations have only one-sided errors or when the error rate is low. Efforts have been made to improve the classical estimator by using techniques such as the Jackknifed ratio discussed by Frost and Tamura (1982). This paper proposes a new method to estimate the population total error based on the ratio of error over book value, i.e., taintings.

The special features of the proposed procedure are that (1) it specifically models the special characteristics of the typical accounting populations, and (2) it is the first study we know of in the audit sampling literature that uses simulation to capture the characteristics of the specific distribution of the estimator each time a confidence interval is constructed. This new approach became possible because of the recent publication of several studies on the empirical characteristics of accounting errors. Results of empirical tests indicate that the proposed method can significantly improve the reliability of the classical ratio under circumstances where the classical ratio needs improvements. Empirical comparisons are also made with a third ratio estimator under dollar-unit sampling. Again, the proposed method provides better reliability.     

Australian consumer attitudes to health claim – food product compatibility for functional foods

This study with Australian consumers investigated how appealing different health claims combined with particular food carriers were to Australian consumers, and compared the results of a similar study with Dutch consumers. 149 shoppers considered up to 30 different food concepts, rating how ‘attractive’, ‘believable’, and ‘new and different’ they found each concept and their ‘intention to try’. Each variable was significantly related to intention to try (p < 0.001) and together explained 56% of the intention score. Claims and carriers independently had a significant effect on ratings of attractiveness and intention to try but, unlike the Dutch study, the carrier was a more important predictor of intention to purchase than the claim. Implications for regulation of health claims for food are discussed.     

Social capital and creativity in R&D project teams

The existing research contributes to our understanding about the value of social capital in a wide range of social science disciplines; however, it does not well address the role of social capital in creativity for research and development (R&D) project teams in a given context. Using a sample of 54 R&D project teams in high-technology firms of Taiwan, we examined the impacts of social capital on creativity of R&D project teams from an intra-team perspective. Results of factor analysis revealed four factors extracted from the concept of social capital, namely social interaction, network ties, mutual trust, and shared goals. Findings suggested that social interaction and network ties had significant and positive impacts on creativity of R&D project teams, but mutual trust and shared goals did not. Managerial implications for managing social capital in R&D project teams are discussed.     

Mutual fund herding its impact on stock returns: Evidence from the Taiwan stock market

Using quarterly ownership data which identify identity codes of mutual funds in Taiwan, we investigate mutual fund herding and its impact on stock price. We show that mutual funds tend to follow their own steps in trading rather than follow trades made by other funds. More importantly, evidence of price continuation following mutual fund herd buying suggests that such herding is based on value-relevant information and is consistent with the investigative herding hypothesis. Alternatively, evidence of return reversal following mutual fund herd selling suggests that such herding is non-informational and is consistent with the characteristic herding hypothesis.     

Government Expenditures and Economic Growth: The Supply and Demand Sides*

This paper uses a new approach to estimate how government expenditures affect the growth rate of real GDP. They affect the growth rate through three channels ‐ total factor productivity, investment and aggregate demand. We find that apart from government investment, all government expenditures have negative marginal effects on productivity and GDP growth. In particular, a 1 percentage point increase in the share of government consumption in GDP reduces the equilibrium GDP growth rate by 0.216 percentage points, while the same increase in government investment raises the growth rate by 0.167 percentage points. This suggests that a reallocation of 1 percentage point of government consumption to government investment can raise the growth rate by 0.38 percentage points.     

Can the Gains from International Diversification Be Achieved without Trading Abroad?

We examine whether portfolios of domestically traded securities can mimic foreign indices so that investment in assets that trade only abroad is not necessary to exhaust the gains from international diversification. We use monthly data from 1976 to 1993 for seven developed and nine emerging markets. Return correlations, mean-variance spanning, and Sharpe ratio test results provide strong evidence that gains beyond those attainable through home-made diversification have become statistically and economically insignificant. Finally, we show that the incremental gains from international diversification beyond home-made diversification portfolios have diminished over time in a way consistent with changes in investment barriers.     

The co–evolution of technologies and institutions: a comparison of Taiwanese hard disk drive and liquid crystal display industries

In this paper, we examine the different evolutionary processes and outcomes of the hard disk drive and liquid crystal display industries in Taiwan. To this end, we make two general theoretical claims. First, that an appreciation of the globalization of technology is as important as national institutions in understanding industry development in catch–up economies such as Taiwan. Second, in addressing both industrial survival and failure, that national institutions can have either a positive or a negative impact on sectoral activities. Empirically, we show that, in Taiwan, rigid social institutions conflict with the hard disk drive technology. This conflict, in turn, produces obstacles to Taiwanese firms' search for new markets and skills in hard disk drives. On the other hand, Taiwan's institutional structures provide a source of technical efficiency and market opportunity for the emerging liquid crystal display trajectory. This, in turn, drives Taiwanese industry towards adopting new practices in the manufacture of liquid crystal displays.     

How recreation involvement,place attachment and conservation commitment affect environmentally responsible behavior

This study examines a behavioral model using latent variables of place attachment, recreation involvement, conservation commitment and environmentally responsible behavior among tourists visiting wetlands. In total, 928 usable questionnaires were collected. Confirmatory factor analysis and structural equation modeling were applied to the data by using LISREL 8.70 for Windows. Analytical results, which further elucidate the behavioral models of nature-based tourism, suggest that place attachment, recreation involvement and conservation commitment critically impact environmentally responsible behavior. In this behavioral model, conservation commitment simultaneously and partially mediates the relationships between place attachment and environmentally responsible behavior and between recreation involvement and environmentally responsible behavior. A series of management implications are drawn, including the need to use this information via a visitor interpretation strategy, greater use of partnerships with local communities and businesses to spread the importance of wetlands and of environmentally friendly behavior, and the need to work with other wetlands to share the type of visitor motivations best suited to encourage environmentally friendly behavior.