How are Exchange Rates Managed? Evidence of an Anchor‐Based Heuristic

Central banks often intervene in the foreign exchange market to obtain desirable exchange rates. How this is done has remained totally opaque although central banks are likely to adopt a satisficing rather than optimizing strategy as they need to intervene frequently in a timely manner under incomplete information. In this paper, we propose a simple exchange rate management rule that spreads the volatilities originated from the anchor currencies among the exchange rates with the domestic currency. We test out this rule on 10 currencies and find the empirical evidence consistent with the proposed anchor‐based heuristic.     

Technology transfer in East Asia and its implications for regional cooperation∗

The importance of technology in economic development is indisputable. A large part of the developmental process in East Asian countries has been greatly accelerated by the transfer of technology from developed countries. This paper, based on detailed data obtained from selected samples of about 100 companies in Korea, Taiwan, Singapore, Malaysia, Thailand, and Indonesia, examines several key determinants of the process of acquisition, assimilation and internalization of imported technology in business enterprises. Drawing on the findings, this paper also suggests several implications for regional cooperation in enhancing the process of technology transfer in East Asia.     

The effect of perceived advertising effort on brand perception: implication for retailers in Hong Kong

This paper examines how advertising effort, specifically advertising creativity and advertising believability, may influence consumers’ perceptions of a retailer’s business philosophy, and in turn consumers’ behavior toward retailers in Hong Kong. Altogether five hundred and eighty-three respondents (i.e. 320 college students and 263 shoppers) were surveyed. The results suggested that retailers that are regarded as having more creative advertising are perceived as being more learning-oriented, which leads to higher brand recognition. Meanwhile, retailers that are regarded as having more believable advertisements are perceived as having higher levels of integrity, and as a result are better recognized and more likely to be patronized. This research contributes to literature in retailing and marketing communication by establishing the antecedents and consequences of building a learning-oriented and trustworthy business philosophy in a cultural specific context. It also provides practical guidance for retailers who aim to increase brand recognition and purchase intentions through promotional effort.     

The effect of functional status impairment on nursing home admission risk among patients with advanced Parkinson’s disease

Abstract

Aims: To estimate the relationship between functional status (FS) impairment and nursing home admission (NHA) risk in Parkinson’s disease (PD) patients, and quantify the effect of advanced PD (APD) treatment on NHA risk relative to standard of care (SoC).

Materials and methods: PD patients were identified in the Medicare Current Beneficiary Survey (MCBS) (1992–2010). A working definition based on the literature and clinical expert input determined APD status. A logit model estimated the relationship between FS impairment and NHA risk. The effect of levodopa-carbidopa intestinal gel (LCIG) on NHA risk relative to SoC was simulated using clinical trial data (control: optimized oral levodopa-carbidopa IR, ClinicalTrials.gov NCT00660387 and NCT0357994).

Results: Non-advanced PD and APD significantly increased NHA risk when controlling for demographics (p?<?0.01). APD status was no longer significant after controlling for FS limitations, implying that FS limitations explain the increased NHA risk in APD patients. Reduced impairment in FS in patients with APD treated with LCIG reduced risk of NHA by 13.5% relative to SoC.

Limitations: This study applies clinical trial results to real-world data. LCIG treatment might have a different effect on NHA risk for the nationally representative population than the effect measured in the trial. Both data sources employ different instruments to measure FS, instrument wording and study follow-up differed, which might bias our estimates. Finally, there lacks consensus on a definition of APD. The prevalence of APD in this study is high, perhaps due to the specific definition used.

Conclusions: Patients with APD experience a higher risk in NHA than those with non-advanced disease. This increased risk in NHA in patients with APD is explained by greater limitations in FS. The relative reduction in risk of NHA for the APD population treated with LCIG is quantitatively similar to doubling Medicaid home care services.     

Joint Effect of Investor Protection and Securities Regulations on Audit Fees

We document in this study that the institutional factor of securities regulations is positively associated with audit fees in low investor-protection countries. Strict securities regulations in these countries are likely to be associated with higher audit effort and risk, which result in higher audit fees. On the other hand, we do not find any significant association between audit fees and securities regulations in high investor-protection countries. Auditors in these countries generally expend higher audit effort to reduce risk irrespective of the strictness of securities regulations. Consequently, strict securities regulations do not have a significant impact on audit fees in these countries. Our findings suggest that strict securities regulations in weak investor-protection countries play an important role in audit pricing.     

Valuation of Catastrophe Equity Puts With Markov‐Modulated Poisson Processes

We derive the pricing formula for catastrophe equity put options (CatEPuts) by assuming catastrophic events follow a Markov Modulated Poisson process (MMPP) whose intensity varies according to the change of the Atlantic Multidecadal Oscillation (AMO) signal. U.S. hurricanes events from 1960 to 2007 show that the CatEPuts pricing errors under the MMPP(2) are smaller than the PP by 30 percent to 66 percent. The scenario analysis indicates that the MMPP outperforms the exponential growth pattern (EG) if the hurricane intensity is the AMO signal, whereas the EG may outperform the MMPP if the future climate is warming rapidly.     

The impact of team‐member exchange,differentiation, team commitment,and knowledge sharing on R&D project team performance

This paper integrates team‐member exchange (TMX), affective commitment, and knowledge sharing to examine how work unit TMX influences employees' R&D project team commitment and intention to share knowledge, and how team knowledge‐sharing intention and TMX differentiation influences team performance. The results support the relationships between work unit TMX and employees' intention to share knowledge and team commitment. In addition, the results show that work unit TMX increases intention to share knowledge through increasing group members' team commitment. At the group level, the results support the relationships between team knowledge‐sharing intention and team performance. The results also show that TMX differentiation moderates the relationship between work unit TMX and team performance. That is, greater work unit TMX is more likely to achieve higher team performance in a team with low TMX differentiation as opposed to a team with high TMX differentiation. Implications for theory building, future research, and R&D management are discussed.     

Technological change as chaotic process

In this paper, we draw upon the concepts of chaos theory to examine technological change as a pattern of punctuated equilibrium through the alternation of continuity and discontinuity across time. We advocate the application of the chaos mathematical technique of time‐varying local Lyapunov exponents to estimate the rates of change, timing of technological transitions and the continuity–discontinuity loop time periods. To illustrate our framework of ideas, we investigated and compared the development of four technologies – semiconductor, display, software, and biotechnology – from 1976 to 2005, using time series patent data. Implications for theory, method, and practice are discussed.     

The impact of problem-based learning strategies on STEM knowledge integration and attitudes: an exploratory study among female Taiwanese senior high school students

This study was designed to explore the effects of problem-based learning (PBL) strategies on the attitudes of female senior high school students toward integrated knowledge learning in science, technology, engineering, and mathematics (STEM). Content analysis and focus group methods were adopted as the research processes. Data and information about the STEM internet platform, an attitude scale and the contents of interviews were also collected for analysis. The subjects were 10th grade students at a girls’ senior high school who volunteered to organize teams for a Solar Electric Trolley Contest. A total of 40 students were grouped into 18 teams. The results of the study indicate: (1) that PBL strategies can be helpful in enhancing students’ attitudes toward STEM learning and the exploration of future career choices; (2) that the PBL teaching strategy helped to lead students step by step toward completing the contest’s mission and to experience the meaning of integrated STEM knowledge; (3) that not only that students can actively apply engineering and science knowledge, but also that students tend to gain more solid science and mathematics knowledge through STEM learning in PBL; and (4) that PBL can enhance students’ abilities and provide them experiences related to knowledge integration and application. Therefore, it is recommended that the curriculum at the girls’ senior high school include more content related to specialty subjects to enhance their technological capabilities. In addition, a learning mechanism should be offered to aid advisers or teachers in strengthening students’ integrated and systematic knowledge about STEM.     

The senior high school students’ learning behavioral model of STEM in PBL

The purpose of the study was to explore a learning behavioral model of project-based learning (PBL) for senior high school students in the context of STEM (science, technology, engineering, and mathematics). Using “audio speakers” as the project theme, a series of tasks were designed to be solved using STEM knowledge via an online platform and student group discussions. A total of 84 volunteer students from a senior high school and a vocational school in Pingtung, Taiwan, were divided into 21 groups. Text analysis and questionnaire survey were administered. Data sources were the participants’ information collected via the STEM online platform and the questionnaire survey regarding STEM in PBL. The findings of the study are as follows: (1) the learning behavioral model for STEM in PBL showed a positive influence on students’ behavior in the form of cognition and behavioral intentions. In addition, cognition and behavioral intentions were positively influenced by attitude. The overall model fit was positive and could effectively explain senior high school and vocational school students’ learning behavior as related to STEM in PBL; (2) according to the results of the analysis of STEM from the online platform, students displayed a positive attitude, attained integrated conceptual and procedural knowledge, and demonstrated active behavioral intentions through STEM in PBL. In addition, the students’ creative and organized project outcomes revealed the effects of their behavior.