Price control and privatization in a mixed duopoly with a public social enterprise

We explore the issue of the optimal degree of privatization for a public firm that does not need to care about its rival’s profit completely. We find that the optimal privatization of a public social enterprise under exogenous price control depends on the level of the regulated price. Namely, when the regulated price is low (medium, high), the optimal privatization is partial privatization (complete privatization, completely public owned). If the price control is optimized by maximizing social welfare, then the optimal privatization is complete privatization. For the case of the traditionally defined public firm, its optimal privatization is completely public owned when the price control is exogenously given. If the price control is endogenously determined, then privatization policy is redundant.     

Promoting innovation through the accumulation of intellectual capital, social capital, and entrepreneurial orientation

This study attempts to explore how a firm's operational mode can reinforce the advantages of intellectual capital on innovation. Specifically, the main purpose of this study is to develop a comprehensive research model to integrate the interrelationships among social capital, entrepreneurial orientation, intellectual capital, and innovation. In addition to identifying the influences of intellectual capital on innovation, this study focuses in particular on the mediating effect of intellectual capital and the moderating effects of social capital and entrepreneurial orientation on innovation, which have largely been neglected in previous literature. The results support the mediating role of intellectual capital and the moderating roles of entrepreneurial orientation and social capital on innovation. Specifically, firms that have higher levels of social capital and entrepreneurial orientation tend to amplify the effects of intellectual capital on innovation.     

The intraday behavior of information misreaction across various categories of investors in the Taiwan options market

This study adopts a unique dataset that includes the complete history of transactions in the Taiwan options market to investigate the misreaction patterns for marketwise observations and the transactions of four different categories of investors in the high-frequency framework. Using the results from model-free tests as benchmarks, we find that model-based tests incorrectly indicate the existence of investor misreaction and show the differences of misreaction degree among investor categories. Our findings are robust to alternative observation frequencies and duration definitions.     

Managerial Ability and External Financing

Asia-Pacific Financial Markets - This research examines the link between managerial ability and firms’ external financing. Our findings show that firms with more able managers tend to...     

Effects of ethical sales behaviour,expertise, corporate reputation,and performance on relationship quality and loyalty

This analysis examines the influence of ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance on relationship quality and its consequences from multi-level perspectives in order to identify the nature of mix relationships at different levels. A survey with 505 qualified observations from financial institutions' customers in Taiwan was conducted. A structural equation modelling approach was used. Ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance, that is, the antecedents of relationship quality, have significant effects on relationship quality. Relationships exist between salespeople and customers, but customers also establish relationship with the retailers themselves. Satisfactory relationship quality has positive effects on commitment and loyalty. Implications for research and practice are discussed.     

Is the realized volatility good for option pricing during the recent financial crisis?

The contributions of this paper are threefold. The first contribution is the proposed logarithmic HAR (log-HAR) option-pricing model, which is more convenient compared with other option pricing models associated with realized volatility in terms of simpler estimation procedure. The second contribution is the test of the empirical implications of heterogeneous autoregressive model of the realized volatility (HAR)-type models in the S&P 500 index options market with comparison of the non-linear asymmetric GARCH option-pricing model, which is the best model in pricing options among generalized autoregressive conditional heteroskedastic-type models. The third contribution is the empirical analysis based on options traded from July 3, 2007 to December 31, 2008, a period covering a recent financial crisis. Overall, the HAR-type models successfully predict out-of-sample option prices because they are based on realized volatilities, which are closer to the expected volatility in financial markets. However, mixed results exist between the log-HAR and the heterogeneous auto-regressive gamma models in pricing options because the former is better than the latter in times of turmoil, whereas it is worse during the rather stable periods.     

Public employees’ psychological climates and turnover intention: evidence from Korean central government agencies

The psychological climate has been argued to influence employees’ work attitudes. However, despite the abundance of recent empirical studies on turnover intention, multiple psychological climate types as predictors of turnover intention have rarely been explored in the public management domain. This study used the four types of psychological climates – clan, developmental, hierarchical and rational – of the competing values framework, which is typically used to analyse organizational effectiveness. Challenging the assumption held in prior studies of linear associations between the psychological climate and turnover intention, this study examined U-shaped associations. Curvilinear associations are based on the rarely tested assumption that an overly biased psychological climate has a deleterious effect on turnover intention. The regression results corroborated a U-shaped association of clan and rational (market) climates with turnover intention but revealed a linear association for the hierarchical climate. These findings, determined using large-sampled data from Korean central government agencies, can advance the understanding of the psychological climate and turnover intention in public management.     

The Effect of Corporate Social Performance on Financial Performance: The Moderating Effect of Ownership Concentration

The purpose of this study is to extend prior research on this topic by investigating whether the impact of ownership concentration moderates the link between corporate social performance (CSP) and financial performance (FP). This study uses a set of unique, hand-collected pollution control data to measure CSP, based on a sample of Taiwanese listed companies during the period from 1996 to 2006. The results of the empirical analysis provide firm support for the idea that the divergence between control rights and the cash flow rights of controlling owners negatively moderates the link between social and short- and long-run FP.     

Conceptual analysis and implementation of an integrated CRM system for service providers

Customer relationship management (CRM) has become a critical issue in services management. Ensuring customer satisfaction and maintaining long-term relationships with customers have become essential for survival amongst competitive service industries. However, few studies have attempted to integrate all relevant factors in a comprehensive model of CRM implementation. The current study addresses this need by proposing a conceptually integrated five-phase model that incorporates elements of CRM, the service-delivery process and customer satisfaction (represented by the extended American Customer Satisfaction Index (ASCI) model). This integrated model of CRM is assessed in an empirical study of 63 leading Taiwanese service firms distributed amongst eight service industries. The implementation levels of various phases of CRM are assessed in a range of service industries by means of a questionnaire survey and in-depth interviews. The results of this empirical study reveal the strengths and weaknesses of various industries in their implementation of CRM. These results also represent a useful benchmarking reference for service organisations that have lower implementation levels in some CRM practices.