An Assessment of Taiwan's Indirect Investment Toward Mainland China

The economic ties between Taiwan and the mainland China had been restored since 1987. A comparison of Taiwan's investment toward the mainland and the ASEANs shows that the investment size is much smaller in the mainland in terms of money flow; nonetheless, much higher in terms of number of firms. Also, the effects of investment-induced trade is much stronger in the mainland. Using the 1986 Input-Output Tables and the data set of officially registered investment volume by industry, this paper simulates the possible linkage effects on output, employment and export shift for both sides.     

The analysis of a price war strategy under market demand growth

We use the finite repeated Prisoners' Dilemma game model herein to discuss how firms choose their optimal strategy under a price war with market demand growth. This model has two players: one is an R-type player and the other is a TFT-type player. Each player has two strategies to choose from: a preemption strategy and a “wait” strategy. Our results indicate that: (i) if the probability that the opponent is an R-type (TFT-type) player is high, then the time when the opponent adopts a preemption strategy will be early (late); (ii) Market demand growth is an incentive for cooperation among firms; (iii) if the market demand growth rate is high, then the R-type player will not have an evolutionary advantage. We use the competition between cell phone manufacturing firms Nokia and Motorola in China as an example. When Nokia is an R-type player and adopts a preemption strategy, Motorola should preferably use a preemption strategy rather than a “wait” strategy. However, as a TFT-type player, this will benefit Motorola under the situation of market demand growth.     

Does the source of debt financing affect default risk?

We examine whether the source of debt financing is important for assessments of firms’ default risk. This study reveals that during the 2007–2010 financial crisis, firms that depend mainly on financing from banks suffer higher increases in default risk than do firms with no such dependence. Conversely, firms that rely solely on financing from public debt markets do not experience significant increases in default risk. These findings suggest that the bank supply shock theory explains the transmission of financial shocks to the real economy. Finally, firms that depend on bank financing cannot offset the adverse impacts of bank lending shocks by substituting bank loans with publicly traded debt.     

The impact of a conglomerate merger on its vendors and rivals – a case study of Google's acquisition of Motorola

This study explores the valuation effects of the conglomerate merger on an acquiring firm and its stakeholders. We examine Google's acquisition of Motorola and the impact that it had on Google's vendors and rivals. The empirical results suggest that the announcement of this deal led to positive market reaction among Android's vendors, primarily due to Google's ability to use Motorola's extensive patent portfolio to help protect Android's vendors from a potential patent infringement war in the future. Our results also find that when the Open Handset Alliance members obtain help from Motorola's patents or get new technology, an increase in shareholder wealth among Android's vendors and a decrease in shareholder wealth among Android's rivals are likely to occur.     

Seeing Through and Breaking Through: The Role of Perspective Taking in the Relationship Between Creativity and Moral Reasoning

Journal of Business Ethics - The recent wave of same-sex marriage legalization marks the most significant human rights progress in decades. Nevertheless, the valuation effects on corporate America...     

Customer benefits and value creation in streaming services marketing: a managerial cognitive capability approach

Customer value analysis and management is a key theoretical and empirical issue in marketing management and strategic management. However, little is known about the influence of customer benefit on customer value from the microfoundations of the dynamic capabilities perspective. Currently, a boom in online video and music streaming services is changing the entertainment industry structure. Thus, marketing managers in the fast‐growing streaming services industry should have dynamic managerial capabilities to anticipate other service elements that customers consider valuable. Based on managerial cognitive dynamic capabilities, this research explored the influences of customer‐perceived functional benefit, experiential benefit, financial benefit, and psychosocial benefit on perceived instrumental and terminal values. General linear model (GLM) and fuzzy‐set qualitative comparative analysis (fsQCA) were conducted to gain a more nuanced understanding of how different customers’ perceived benefits have different impacts on perceived value. The findings illuminate complex benefit configurations that drive perceived instrumental and terminal values and contribute to the development of value creation and its drivers. The proposed framework can help managers develop managerial cognitive dynamic capabilities by increasing their understanding of the impact of different perceived benefits on value creation for different types of customers.     

Personalities of Travel Agents with Strong Sales Records in Taiwan

Studies have shown that a certain personality leads to higher job performance. This finding has led many companies to use personality traits when they hire employees. Despite abundant studies on personality, little is known about suitable personality traits for travel agents, especially in Taiwan. With 230 travel agents working in sales departments for corporate clients and transient travelers in Taiwan, their personalities, actual sales records, and managers’ performance evaluations were used to identify significant personality traits affecting job performance. The results reflect different personality traits for travel agents working with corporate clients and individual transient travelers. The results revealed that travel agents working with corporate contracts have strong commanding and continuative personalities but weak innovative and independent personalities. On the contrary, the agents working with transient travelers showed strong innovative, commending, independent, and sympathy personalities but a weak deliberate personality. Based on the findings, the implications are discussed.     

The Intratemporal Substitution between Government Spending and Private Consumption: Empirical Evidence from Taiwan

In this paper, we investigate the idea that a general model of consumption should allow for the direct effect of government consumption. We show, given an assumed preference specification, that there is a cointegration restriction implied by an intraperiod first-order condition of the model. This restriction leads to a linear deterministic cointegrated system of government consumption, private consumption and their relative price that is consistent with the data for Taiwan. The intratemporal elasticity of substitution between government and private consumption is estimated to be about 1.1. Overall, we find consistent empirical evidence in support of our model.     

The relative importance of facial attractiveness and gender in Hong Kong selection decisions

This field experiment found that Hong Kong human resources management specialists were influenced by the attractiveness bias in evaluating short-listed candidates for an entry-level trainee position. Zero order, stepwise and hierarchical regressions showed that perceived attractiveness of the candidates was more related to their work experience and work-related skills than to grade-point average and public examination results. Women candidates were generally preferred over male candidates. Further research is suggested to determine if the influence of attractiveness extends over a wider range of jobs and to measure more precisely the influence of attractiveness in different cultures and for men and women.