New Ventures, Internationalization, and Asymmetric Grin Curve: Analysis of Taiwan’s Big Data

Under globalization, small and medium enterprises (SMEs) that predominate Taiwan’s economy have been primarily original equipment manufacturers (OEMs) continuing to adjust operating strategies in order to extend supply chains and enhance competitiveness. This paper adopts the big data composed of 104,377 Taiwanese manufacturers from the 2011 Industry, Commerce, and Service Census to assess impact of the business life cycle, brand revenue, R&D spending, and internationalization on value creation. Major findings are as follows. First, the link of the firm’s operating years with value creation is characterized by a quadratic U-shaped curve where the minimum point corresponds to 15 years of operation, suggesting a cost of lower value added for new ventures at the early stage of development. Second, a reversed U-shaped curve of value creation is found as regards brand revenue and R&D spending, with the greater impact of the latter. Third, the impact of overseas investment and export expansion is also captured by a reversed U-shaped curve, with greater impact for the former. Fourth, an asymmetric grin curve rather than a smile curve is found in Taiwan’s manufacturers, whose value creation can be strengthened by strategies that focus on the learning curve, internationalization, internet, operating scale, and capital intensity

New Ventures, Internationalization, and Asymmetric Grin Curve: Analysis of Taiwan’s Big Data

Under globalization, small and medium enterprises (SMEs) that predominate Taiwan’s economy have been primarily original equipment manufacturers (OEMs) continuing to adjust operating strategies in order to extend supply chains and enhance competitiveness. This paper adopts the big data composed of 104,377 Taiwanese manufacturers from the 2011 Industry, Commerce, and Service Census to assess impact of the business life cycle, brand revenue, R&D spending, and internationalization on value creation. Major findings are as follows. First, the link of the firm’s operating years with value creation is characterized by a quadratic U-shaped curve where the minimum point corresponds to 15 years of operation, suggesting a cost of lower value added for new ventures at the early stage of development. Second, a reversed U-shaped curve of value creation is found as regards brand revenue and R&D spending, with the greater impact of the latter. Third, the impact of overseas investment and export expansion is also captured by a reversed U-shaped curve, with greater impact for the former. Fourth, an asymmetric grin curve rather than a smile curve is found in Taiwan’s manufacturers, whose value creation can be strengthened by strategies that focus on the learning curve, internationalization, internet, operating scale, and capital intensity

Taiwan's trade imbalance against Japan: an econometric analysis

The objective of this paper is to investigate the Granger 'causal' dynamic relationship between Taiwan-Japan trade balance (T), and four macrovariables: output (Y), exchange rate (E), money supply (M), and price index (P). The ADF Unit Root Test results show that the variables are all integrated of order I(1). The Johansen (Trace, λmax) result indicates that there is no evidence of cointegration between T and the four variables. The Final Prediction Error results indicate that there is evidence of a unidirectional causal relationship between T and M, a bidirectional relationship between T and Y only. Variance Decomposition analysis show that the exogeneity ordering of the variables is (ΔM, ΔT, ΔY, ΔP, ΔE). The impulse response analysis show that the impacts of M and Y to T are higher than the impacts of E both in short-term and medium-term. In long-term, impacts front both policies are weak and tend to be insignificant.

The effects of the pollution cost internalization on Taiwan's hog industry

Duality theory is utilized to develop a translog profit function (TPF) which includes one output (hog), three variable inputs (labour, fodder, and piglet), four fixed inputs (capital, farm size, location, and pollution cost). Based on the trade theory for small country, the factors of corn and soybean imports are introduced into the TPF model to examine the effects of pollution cost internalization on Taiwan's hog supply, input demand, and cereal imports, respectively. Through the analysis of output supply and input demand elasticities, the empirical results show that hog supply decreases 1.60%. The demands for labour, fodder, and piglets decrease 4.18%, 1.44%, and 1.3Percnt;, respectively. The decrease in fodder demanded leads the importation of corn and soybean to decrease 1.58% and 1.43%, respectively.

The Impact of Corporate Governance on the Technical Efficiency of the IC Industry in Taiwan

The purpose of this paper is to analyze the impact of corporate governance on technical efficiency. We use the Translog stochastic production function to derive technical efficiency. Four empirical results are observed: (1) Technical efficiency has a negative relationship with the following two mechanisms: (a) the percentage of company shares owned by directors and supervisors and (b) the pledged shares ratio of directors, supervisors, and CEO duality. (2) The percentage of the company shares owned by managers makes a positive contribution to technical efficiency. (3) The percentage of the company shares owned by government has a negative relationship to technical efficiency. (4) In sum, insider ownership is unfavorable to the technical efficiency of the Taiwanese IC industry, but manager ownership is beneficial to the technical efficiency of the Taiwanese IC industry.corporate governance, Translog stochastic frontier production function, technical efficiency

Short-Term Prediction of PM_2.5 Using LSTM Deep Learning Methods

This paper implements deep learning methods of recurrent neural networks and short-term memory models. Two kinds of time-series data were used: air pollutant factors, such as O3, SO2, and CO2 from 2017 to 2019, and meteorological factors such as temperature, humidity, wind direction, and wind speed. A trained model was used to predict air pollution within an eight-hour period. Correlation analysis was applied using Pearson and Spearman correlation coefficients. The KNN method was used to fill in the missing values to improve the generated model’s accuracy. The average absolute error percentage value was used in the experiments to evaluate the model’s performance. LSTM had the lowest RMSE value at 1.9 than the other models from the experiments. CNN had a significant RMSE value at 3.5, followed by Bi-LSTM at 2.5 and Bi-GRU at 2.7. In comparison, the RNN was slightly higher than LSTM at a 2.4 value

The Impacts of Investments in China and Brand-Developing Potential on Operating Performances - The Evidence of Taiwan's Information-Electronics Industry

This paper examines the influence of investments in China and brand-developing potential on operating performances (technical efficiency, return on assets, and Tobin's Q) with data drawn from samples of listed information-electronics industry firms in Taiwan between 1999 and 2003. We first apply non-paired t-tests to examine if there is a difference in operating performance between sample firms with investments in China and those without investments in China. Then, using R&D and advertising intensities as proxies for branding-developing potential, we construct regression models to evaluate the impacts of investments in China and brand-developing potential on operating performances. We conclude that (1) the technical efficiency of Taiwan's information-electronics industry increased year by year, but the value of Tobin's Q decreased year by year; (2) on average, sample firms with both investments in China and brand-developing potential have higher Tobin's Q than other sample firms, indicating that investment strategies in China and brand developing can enhance growth opportunities; (3) we conclude that in the era of trifling profit, in addition to reallocating internal resources to enhance technical efficiency, sample firms can increase long-run performance by adopting investment strategies in China and by developing brand recognition. However, in the short run, sample firms must overcome the operating barrier of foreign liability and brand investment when they directly invest in China and develop brand recognition.information-electronics industry, investments in China, brand-developing potential, operating performance