Culture And Risk Assessment: A Comparison Of Singapore And Taiwan

This study examines two areas of auditing: namely, the identification of those factors that are associated with audit risk, business risk, and personal risk; and secondly how culture affects risk assessment. A factor analysis and a logistic regression are used to analyze questionnaire data collected from Singapore and Taiwan. The results show that three factors (the effectiveness of control activities, reporting bias of management and reliability of management) are strongly associated with the auditor’s risk assessment. This result replicates findings of previous research, indicating the importance of understand the client’s control environment in the assessment of the likelihood of material misstatements. In addition, this study also hypothesized that differences in the cultural values of Chinese auditors are likely to result in differences in the risks assessed. The results show that auditors place more emphasis on their firms’ risk rather than their personal risk. However, compared to auditors in Taiwan, auditors in Singapore seem to be more concerned with risks at the individual level than at the group level. It implies the impact of Western Anglo-Saxon ideas on individuals from a Chinese background

The Effects Between Numerical Tabulations And Graphs Of Financial Information On The Judgment Of Investors

Due to developments in information markets and advancements in information technology, and with the rapidity of information flow on the Internet, it is vital to increase the level of information transparency. Disclosure methods of financial information have presently become an important topic of discussion. By using numerical tables, non-distorted graphs or distorted graphs of financial information, this research discusses whether financial information display types indeed influence investors’ judgments and decisions. We investigate and analyze the use of graph disclosure in Taiwan and use experiment design methods to test the effect of investors’ judgment by comparing different display types of financial information. Our results find graphs are used to display comparative than numerical financial information, showing how this can influence investors’ awareness and judgments and use of graphs can be used to manipulate impressions (impression management)

The Relationship Between Information Transparency And The Informativeness Of Accounting Earnings

The issue of corporate governance has prompted calls for greater transparency and disclosure on companies around the world. As a result, a disclosure ranking system, Information Transparency and Disclosure Ranking System (ITDRS) was launched in Taiwan since 2003 by the request of Taiwan Stock Exchange Corporation (TSEC). This paper examines the relationship between information transparency and the informativeness of accounting earnings. The empirical tests are conducted using TEJ database for firms listed on the Taiwan Stock Exchange with fiscal year ends between 2003 and 2004. Empirical results indicate that, information transparency, measured by the ranking of ITDRS, reduces the informativeness of accounting earnings. However, if information transparency is measured by the ratio of long-term investment in stocks, evidences show higher earnings response coefficients (ERC) for the more transparent firms. The results suggest that accounting numbers are more useful or valuable than the ITDRS ranking results from investors’ perspective. It also suggests that the ITDRS may be not a good proxy for financial transparency

[[alternative]]A Study about Auditor Selection, Audit Quality and CPA Firm Industrial Specialization of Private Colleges and Universities in Taiwan

[[abstract]]自93學年度起，私立大專院校可在教育部核可的會計師事務所名單中，自行遴選會計師事務所查核簽證財務報表並負擔審計公費。本研究以93至96學年私立大專院校為樣本，將會計師事務所規模及產業精專會計師事務所為因變數分析影響會計師選任的因素。採Logistic迴歸分析審計品質的實證顯示：學校規模、前一年度查核意見、業務複雜程度、學校類型及學校成立年度均會影響學校選任會計師。在產業專精會計師事務所以多元線性迴歸分析，實證發現：學校規模、前一年度查核意見、資本支出比率、業務複雜程度及學校成立年度等因素會影響學校選任產業專精會計師事務所。本研究結果可作為教育部在制定私立大專院校或其他政府機關在制定非營利事業組織選任會計師政策時的參考。[[abstract]]Private colleges and universities have been allowed to choose their auditors from a list of accounting firms approved by the Ministry of Education to audit financial reports ever since 2004 academic year; they are also allowed to pay their auditor fees. The present study takes the private colleges and universities of 2004 through 2007 academic year as samples and uses the size and industry specialization of the accounting firms as dependent variables to analyze the factors that affect auditor selection. Empirical results from the analysis of auditing quality by using Logistic Regression show that size of private colleges and universities, audit opinions a year earlier, business complexity, school type and length of years since school establishment are all the factors that affect the auditor selection by private colleges and universities. The results shown in the paper can be used as reference for the Ministry of Education while making policies regarding private colleges and universities or for other public sector agencies while making policies on the auditor selection by non-profit organizations

[[alternative]]A Study of Internal Transfer Pricing System: the Case of Post Co. Ltd

[[abstract]]中華郵政股份有限公司自2003年公司化以後，組織結構調整為23個責任中心局，並自2005年起實施郵件內部轉撥計價制度，俾利計算各責任中心局郵件內部轉撥計價後盈餘，並將其計入責任中心局績效評核項目之一。本研究主要蒐集2005至2008年各責任中心局轉撥計價前、後盈餘數據資料，分別針對不同局等組別及北、中、南三個區域責任中心局分組進行敘述性統計及單因子變異數分析法。本研究結果發現：一、各責任中心局郵件內部轉撥計價前盈餘，對於大、小責任中心局等間存在顯著之差異。經由實施郵件內部轉撥計價制度後，各大、小責任中心局間之郵件內部轉撥後盈餘已無顯著差異。二、北、中、南部不同地區責任中心局郵件內部轉撥計價前盈餘並無顯著差異存在，經由郵件內部轉撥計價公式計算後，北、中、南三個不同地區責任中心局郵件內部轉撥計價後盈餘存在顯著性差異，尤其當經濟提撥補貼不經濟比率愈小時，則北部地區與中、南部地區責任中心局間差異性愈大。為達「公平」與「合理」之責任中心績效衡量制度目標，建議予該郵件內部轉撥計價制度中考慮置入其他更多質性的考量因子(如城鄉因素、政策性設局等)，或是提高經濟提撥補貼不經濟比率，以減少北部與中、南部責任中心局郵件內部轉撥計價後盈餘之顯著差異，進而促使各責任中心局重視該績效評核項目，以達激勵效果。[[abstract]]This study collects the earnings data before and after internal transfer pricing conducted in Chunghwa Post Co., Ltd. in every responsibility central bureau from years 2005 to 2008 and performed descriptive statistics and analysis of variance （ANOVA）according to the position levels and geographical districts (north, central and south) of each bureau. The findings of the study indicate: (1) there are significant differences of earnings between major and minor responsibility central bureaus before internal transfer pricing. After implementing the pricing system, however, no significant differences of earnings are found between major and minor responsibility central bureaus. (2) There are no significant differences of earnings among bureaus located in three different districts before internal transfer pricing. After the implementation of the system, however, significant differences of earnings are found among bureaus of different districts. Such differences are found larger between bureaus of the north and those of the central and south as the percentage of financial subsidies decreases.To achieve a "fair" and "reasonable" performance evaluation system, this study suggests the following steps to eliminate the significant differences created by rural-urban differences: (1) to include the rural-urban factor in the internal transfer pricing system, (2) to set up a few bureaus under special policies, and (3) to increase the percentage of financial subsidies. It is expected that future practices will further motivate all responsibility central bureaus to pay extra attention to their earnings performance after internal transfer pricing

[[alternative]]The relationship between internal financial operation and outside resource dependency in Taiwan public and private universities

[[abstract]]大學的治理內部財務運作是重要的關鍵因素，而大學的營運非以營利為目的，政府歲出預算之教育經費，重視對高等教育的補助，而補助經費的配置與多寡對於大學內部之財務運作影響，目前探討此一重要主題之實證研究較缺乏。本研究以20家公立大學及27家私立大學各2年度之決算資料，參考Plummer et al.(2007)學者衡量基金之方式，以迴歸分析探討大學組織體對外來的補助依賴，對內部的財務運作表現，與其產業規模之相關性探討。實證結果顯示，補助款收入百分比對於公私立大學財務運作績效皆呈顯著負相關，對於公私立大學之產業規模呈顯著正相關。學雜費收入百分比及學生人數對於私立大學財務運作亦呈顯著負相關；學雜費收入百分比對於公立大學產業規模呈顯著正相關。顯示組織外資源的依賴確實會影響組織內部之財務運作，及其在同一產業之下規模的位置，本研究結果可作為補助經費分配之參考。[[abstract]]This study uses 94 schools’ financial statements which provided by public and private universities in Taiwan to investigate the relevance of external resource to universities’ financial performance and financial position. We find that external resource have negative relationship to the revenues minus expenses, divided by total revenues (measurement of financial performance) and positive relationship to the total net assets, divided by total revenues (measurement of financial position) in both public and private universities. The findings suggest that external resource provided by government is an important factor to the financial operation of the schools. In order to have equal opportunity of development in both public and private schools, external support from public sectors has the responsibility to avoid the relevance from external control to internal operation

Testing the information quality of the degree of operating leverage disclosed in financial reports

Taiwan is the only country requiring public firms to disclose the degree of leverage (DOL). Mandatory disclosure of DOL could help amateur investors to get a clear picture of a firm's financial position. This paper tests the relationship between the DOL and the operating risk of companies in Taiwan. The consistency quality of DOL disclosed in financial reports is also examined. DOLs transformed by Model 1 (regulated by the Securities and Futures Commission, Taiwan) and Model 2 (Mandelker and Rhee, 1984) have a more significant relationship with risk. This finding is an important contribution of this paper. We also find that DOL information presented in financial statements is not consistent by time-series comparisons. This paper concludes that the degree of operating leverage presented in financial statements from Taiwanese public companies might lack reliability and relevance.consistency; financial leverage; operating leverage; information quality; financial reporting; financial disclosure; Taiwan; degree of leverage.

Critical Success Factors in Implementing Enterprise Resource Planning Systems for Sustainable Corporations

More and more companies are significantly introducing enterprise resource planning (ERP) systems to secure enterprise resources for effective distribution and provide accurate data for sustainable development in enterprise. Recently, Type B laboratory has promoted the utilization of the corporation’s own sustainable developments of the business model philosophy to affect the society and to solve social and environmental issues. The form of organizations arising from this certification process is referred to as the B Corporation, and this represents the implementation and commitment to sustainable development. Thus, decision-makers of B Corporation who can utilize ERP system tools well can coordinate sustainable activities better. There is not enough literature at this stage to provide the key success factors of implementing the ERP system for the B Corporation in Taiwan. This study extensively reviews the literature and conducts a modified Delphi expert questionnaire survey to elucidate the critical success factors of B Corporations’ implementation of ERP systems. The research results can assist the sustainable value of B Corporation and contribute to the current literature of improving critical success factors. The limitation of this study is that it only represents the perspective of B Corporation in Taiwan. Second, this study is unable to encompass all key success factors (CSFs) pertaining to ERP systems