Yahoo! And The Chinese Dissidents: A Case Study Of Trust, Values, And Clashing Cultures

This case involves the global business ethics of two distinctly different cultures whose definition of human rights is embedded within their differing historical traditions. The Constitution of the United States guarantees individual rights for each of its citizens, including free speech and the right to petition the government. The People’s Republic of China traces its roots to the ancient tradition of Confucius and the Mandate of Heaven that advocated the Emperor’s responsibility to provide economic justice to instill social harmony. This perspective is echoed by the Communist’s party of the PRC with its insistence on the prohibition of public dissent.  How then should an American firm address these issues while remaining competitive in the global arena and should they be held responsible for abiding to foreign law? This case presents the ethical dilemma faced by democratic multinationals conducting business globally

Civilization, National Culture And Ethical Work Climates: A Comparative Study Of CPA Firms In China And Taiwan

The emergence of China as an economic power has prompted the question, what impact if any has globalization and market liberalization had on the ethical climate of organizations within China and its neighbor Taiwan? Cross-strait tensions have eased over the past few years due to closer economic integration. Although both countries differ in political, as well as organizational design, they share core cultural values embedded within civilization; Confucianism. This study attempts to understand how the correlation established between ethical climates and National culture by Parboteeah, Cullen, Victor, and Sakano are played out against the backdrop of a shared civilization. Will the ethical climates retain or deviate from the core civilization cultural values theorized by Samuel P. Huntington? To answer that question, we collected data from C.P.A. firms in China and Taiwan using the 36-item revised version of the Ethical Climate Questionnaire developed by John B. Cullen, Bart Victor (1988), and James W. Bronson (1993). The results indicated a significant difference in four areas: 1) principal-individual, 2) principle-cosmopolitan, 3) benevolence-individual, and 4) egoism-individual. When correlated with national culture and their core civilizational cultural value of Confucianism, deviations showed that Taiwan moved away from Confucian values by scoring higher in Egoism while retaining Confucianism with a more particularistic culture. China demonstrated a shift away from Confucian values by scoring higher in principle while retaining Confucian values through its score in benevolence

The Effect Of Market Structure On Mutual Fund Performance In Taiwan

This paper illustrates the relationship between industry concentration and performance in Taiwan’s mutual fund industry. Our research mainly focuses on the relation between a fund’s average performance and market structure. Typically, a fund’s manager who faces price uncertainty will dedicate his efforts to determine the scale and compositions of portfolio to achieve a better performance in the near future. Since mutual funds are price takers, the empirical results for this industry may go beyond the scope of the SCP paradigm.   This study focuses on the open-end equity mutual fund in the Taiwan market, which can be viewed as one representative of emerging markets. Employing three measures of market structure, we find that the higher degree of market concentration always associates with poor performance, which contradicts the structure-conduct-performance (SCP) hypothesis. More interestingly, when market shares of mutual funds have been considered, our empirical results show a U-shape structure-performance relation for mutual funds. When a fund’s market share becomes larger, the negative influence on fund performance of market concentration will get stronger. Similarly, the smaller a fund’s market share the stronger negative impact on fund performance of market concentration, suggesting that mutual funds endowed with too weak or too strong market power can erode their performance. More importantly, these results offer a new thinking toward the mutual fund industry’s organization policy for authorities; that is, maintaining a high competitive environment and encouraging mutual funds to keep moderate and efficient scale is a better way to achieve superior fund performance

Is Ethics Education Necessary? A Comparative Study Of Moral Cognizance In Taiwan And The United States

Ethical development, cognizance, and maturity, as well as ethical behavior, are a primary concern of all managers, government officials, and educators. These moral values are even more important in Asian economies where some aspects of the economy seem to go underground without any due taxation afforded to the government or proper credit accorded to the property owners or copyright or other intellectual property holders. This article examines morality and ethics from a cross-cultural perspective. The article examines works using Kohlbergs Cognitive Moral Development theory and the Defining Issues Test (DIT), in order to ascertain the moral cognizance of workers and students, with particular attention to the variables of age, education, ethics education, and gender. United States samples are compared with studies of Taiwanese managers and Taiwanese students. The purpose was to see if there is relationship between any of these variables and moral maturity and cognizance, as well as whether any of these relationships were culturally influenced

The relationship between CFO qualifications and internal control weakness

This study explores the relationship between CFO qualifications and a firm's internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting back- ground, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting back- ground and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm's internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications

Corporate diversification and ceo compensation: Evidence from the moderating effect of stock ownership

The article is an attempt to assess whether Stock Ownership moderates the relationship between corporate diversification and CEO compensation. Based on agency theory, we develop the hypothesis of whether when CEOs hold a large fraction of their firms' outstanding stock, the CEOs are acting more as owners or shareholders than employees. This reduces the principal and agency relationship of agency theory, since CEOs are acting as owners rather than employees; thus the demand for further stock-based compensation is likely to be reduced because the interests of CEOs and shareholders are relatively aligned. For the purposes of this study, a sample of 2,448 CEO compensations across 1,622 firms from 1997 to 2002 was used to test several hypotheses. Corporate diversification was divided into two categories; international diversification and industry diversification. To test the hypotheses, multiple regression analysis was employed to examine stock ownership as a moderator variable on the relationship between international diversification and industry diversification and CEO total compensation with tenure, age, duality, and gender as control variables. The results indicate that stock ownership negatively and significantly influences the relationship between International diversification and CEO compensation. Additionally, the findings also confirm that stock ownership negatively and significantly influences the relationship between industrial diversification and CEO compensation