Measuring the end of the European financial crisis

In 2013 it was declared that ‘the eurozone crisis is over’. However, in fact, the series of financial crises since 2008 may have interrupted the process of EMU enlargement, which in turn triggered a continuing crisis of confidence in the euro. In this paper we extend the sigma‐convergence test to provide a more precise understanding of real interest rate parity (RIP) convergence. On the basis of this, we predict the timing for eliminating the cost of economic asymmetric shocks. Our estimation indicates the RIP among EMU members and accessions were still valid after the disruptions of the 2008 financial crisis. However, the situation has been even worse since the 2010 European sovereign debt crisis, and ceteris paribus, symmetry cannot be achieved without further policy actions. This implies that the EMU authority must do its best to strengthen symmetry and thereby solidify the EMU, at which point it will be better able to re‐start the process of enlargement.     

The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry

Foreign direct investment (FDI) and research & development (R&D) are mutually dependent and should be treated as endogenous variables in empirical studies. An endogenous switching regression model is used to examine the mutual effect of FDI and R&D in Taiwan's electronics industry. The empirical results show that FDI and R&D are positively related and do reinforce each other. Unbiased coefficients are obtained as they are compared to those estimates if FDI and R&D are treated as exogenous variables. The results have a strong public policy implication for Taiwan's foreign direct investment and can be further used to estimate the difference in R&D expenditures between FDI and non-FDI firms.     

Key factors influencing digital content industry in Taiwan from the triple helix perspective

The triple helix (TH) model of the university–industry–government relationship is an accepted significant determinant of industrial innovation. However, the evaluations of these three actors and the actors’ innovation or activities' effects have not been empirically determined. The aim of this study is to integrate the TH model and fuzzy analytic hierarchy process to develop an evaluation model that prioritises the relative weight of the factors’ influence on the digital content industry, specifically in Taiwan. The results identify the most relevant factors with respect to digital content to enable policy-makers to develop effective promoting strategies for the industry.     

Export quotas versus export tariffs in the presence of domestic monopoly

The purpose of this paper is to show that export quotas and export tariffs are different in their economic effects when there is domestic monopoly. In the presence of domestic monopoly, an export quota may not reduce the domestic price of the exportable good, whereas an export tariff will always reduce it. This is true whether the country concerned is a small country or a large country.     

Advancement intentions and job attitudes – a study on the career setting of high‐tech engineers in Taiwan

Career ladders are built up on the premise of employees' interest in career mobility. The system, however, may not have the desired motivational impact when employees are hesitant or undecided to pursue them. In this paper, career issues in terms of the high‐tech environment in Taiwan were explored. The relationships between engineering career choices and job attitudes were quantified. The results confirm that engineers with clear advancement aspirations in either technical or general management careers offered by organizations have better job attitudes than engineers without clear aspirations. The finding appears to be more advancement vs. non‐advancement, and less technical vs. managerial. Adjustments for two types of engineers who hesitate to show their advancement aspirations are given. Other contextual implications are also discussed.     

Managerial Overconfidence and Share Repurchases

Following prior studies, we use keywords in press portrayals to gauge managerial overconfidence. We hypothesize that managerial overconfidence is related to a manager's perception that the firm is undervalued. Results from 2744 share repurchase programs launched by 783 listed firms in Taiwan confirm this hypothesis. We find that managerial overconfidence is positively correlated with the intensity of share repurchasing, which is measured by scale, execution, frequency, and the difference between the announced price and post‐execution price. Moreover, the programs launched by overconfident managers were not undervalued and therefore were associated with reduced post‐announcement returns.     

An Asian Currency Unit: Simulations for Its Effects on East Asia

An Asian currency unit (ACU) is necessary to deepen Asian financial markets and to convert national currencies into a single monetary policy. However, the experiences of the European Currency Unit and the European Exchange Rate Mechanism crisis in 1992–93 have indicated the danger of the so‐called gradual approach. This study evaluates the effects of welfare should the ACU indicator become a long‐term constraint of the People's Republic of China and Japan, the big two in East Asia. Our results indicate that the constraints of countries’ own baskets (e.g. real effective exchange rates) are still better before the launch of a true single currency. That is, pegging to an ACU indicator could hardly be sustained in the long‐run if East Asian countries have not reached a consensus about a regional monetary union.     

The link between managerial style and the job characteristics of R&D professionals

Despite a growing body of evidence as to the importance of linking job design to supervisory practices, almost no empirical studies have been conducted on the issue specifically for R&D professionals. The effectiveness of supervisors should differ primarily with respect to their leadership styles. Data obtained from three major types of R&D organizations in Taiwan were used to examine how leadership styles affect the job characteristics of R&D professionals with personal attributes of professionals themselves as the concomitant variables. The leadership styles were defined in terms of a two dimensional construct with the supportive dimension focusing on enhancing relationship and participatory decision making, and the directive dimension emphasizing telling and directing to get tasks accomplished. The results supported most of the hypotheses proposed in the study. In particular, the high correlation of the supportive leadership style and overall job characteristics, across the three types of organizations in the test, demonstrates the importance of incorporating the role of supervision in the R&D job design. The findings have implications for enhancing the leadership effectiveness in managing R&D professionals. Such findings are not only important for R&D managers in newly industrialized countries, but are also valuable to their counterparts in industrialized countries.     

Management practices of Taiwanese firms: As compared to those of American and Japanese subsidiaries in Taiwan

The management practices of local Taiwanese firms were evaluated by Negandhi in 1973 as the least developed as compared to those of the American and Japanese subsidiaries. Since then, the local Taiwanese firms have undergone a phenomenal change. In comparison to the American and Japanese subsidiaries, the current management practices — organisational structure, decision making and human resource management of the local Taiwanese firms are a mixture of those of the American and Japanese subsidiaries. The local Taiwanese firms have adapted very well to the impact of the West (the United States) and the East (Japan) and contributed greatly to the economic prosperity of Taiwan.The author wishes to thank the Council for Economic Planning and Development, Republic of China (Taiwan) for financial support.