The Relationship between Stock Price and EPS: Evidence Based on Taiwan Panel Data

In this study, we use panel cointegration methods to investigate the relationship between stock prices and earnings-per-share (EPS). Furthermore, we consider whether stock prices respond to EPS under the different level of growth rate of operating revenue. The empirical result indicated that the cointegration relationship existed between stock prices and EPS in the long-run. Furthermore, we found that for the firm with a high level of growth rate, EPS has less power in explaining the stock prices however, for the firm with a low level of growth rate, EPS has a strong impact in stock prices.Earnings Response Coefficient (ERC)

Financial Characteristics of Companies Audited by Large Audit Firms

Purpose “ The purpose of this paper is to examine how financial characteristics associated with the choice of a big audit firm with further investigation on the agency costs of free cash flows.Design/methodology/approach “ The sample used for this work includes industrial listed companies from Germany and France. To test our hypothesis, we used a number of logit models, extending the standard model selection audit firm, to include the variables of interest. Following previous work, our dependent dummy variable is Big4 or non-Big4.Findings “ We observed that most independent variables in the German companies show similar results to previous work, but we did not have the same results for the French industry. Moreover, our findings suggest that the total debt and dividends can be an important reason for determining the choice of a large audit firm, reducing agency costs of free cash flows.Research limitations/implications “ This study has some limitations on the measurements of the cost of the audit fees and also generates opportunities for additional searching.Originality/value “ The paper provides only one aspect to explain the relationship between the problems of agency costs of free cash flow and influence in choosing a large auditing firm, which stems from investors\u27 demand for higher quality audits

The Relationship between Stock Prices and Dividends: Evidence Based on Taiwan Panel Data Investigation

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Organization Type, Professional Training, Manpower and Performance of Audit Firms

100學年度張寶光升等參考著作[[abstract]]This study investigates the effects of professional training and manpower on performance of audit firm under different organization type. Empirical data are obtained from the 1989-2002 Census Report of Audit Firms in Taiwan. In this study, performance is defined as total revenues deduct total expenditures with partner's salary added back. Total audit firms are divided into three categories in terms of their organization type, i.e. big-sized, medium-sized, and small-sized audit firms. Empirical results from univariate test show that the performance of audit firms with high professional training and high manpower are significantly better than that of audit firms with low professional training and low manpower. In addition, regression results indicate both professional training and manpower have positive effects on performance. In total, results above imply that professional training and manpower make a positive contribution to the operation of audit firm.[[notice]]補正完畢[[booktype]]紙本[[booktype]]電子

Does Industry Cooperation Policy Matter? Evidence from Five Prefectures in Japan

Taiwan and Japan initiated an industrial cooperation policy and incentive measures in 2011. Five Japanese prefectures in the Tokai Region actively communicated and cooperated with Taiwan after 2011. This motivated us first to address the economic and trade ties between Taiwan and Japan. Second, we compared and analyzed effects of the industrial cooperation policy on the five prefectures, their willingness to cooperate with Taiwan, and the topics brought up by the industry cooperation. Main results indicate that the policy offers positive incentives for industries and enterprises, and the cooperation between enterprises creates mutual benefits. In sum, the bilateral industrial cooperation brings about a win–win situation. With the findings, we make suggestions on future development direction and for the Taiwan–Japan industrial cooperation

Economics Analysis for the Application of Forward-Looking Performance Measure to the Discretion Account Business

全權委託投資業務(俗稱代客操作),在證券市場中提供專業投資管理服務。我國證期會於民國81年，政策性地決定將開放此項業務。雖然整個規範體系已在民國87年建立，但它忽略掉經濟層面之考量，勢必造成全權委託投資契約無效率。目前規範體系所允許之委託報酬的計算方法，稱之為「固定佣金制度」，由於此制度無法對業者提供經濟誘因，它會引發業者有嚴重之道德危險發生。因此，為解決誘因問題，應該使用「績效佣金制度」，不過在目前股市環境下，此一制度則引入過高之風險。因此，為解決兩種制度所帶來之問題，本文提出「改良式績效佣金制度」，在此制度下，委託報酬除基於傳統財務績效衡量值外，並基於非財務性績效衡量值，本文稱之為前瞻性績效衡量值（簡稱F-LPM）。本文使用兩期之「主理人-代理人」模型，推導出最適委託報酬制度以及相關之比較靜態。在基本模式之下，本文進一步探討F-LPM之相關屬性及功能。所得結果與相關文獻一致，首先是，在最適委託報酬制度下，納入F-LPM可降低業者過度地重視短期，因而犧牲了委任人之報酬，這表示F-LPM具有增額資訊內涵。其次，無成本地提高F-LPM之精確度，可增加委任人之報酬。最後，改良式績效佣金制度優於固定佣金制度與績效佣金制度，因為它可降低風險，因而帶給委任人之報酬增加。第壹章 緒論第一節Discretion account business provides professional investment management service in the securities market. The Securities and Futures Commission decides in policy to approve the business in 1992. Althrough the regulation system of the discretion account business has been established, it will make the advisory contract inefficient with the negligence of economic consideration. The form of advisory fees permitted by the regulation system is 'constant fee system'. Under the system, advisory contract provides no incentive and serious moral harazd will occur. In order to solve the motivation problem, 'performance fee system' should be used. Under the circumstance of Taipei securities market, however, the performance fee system will bring in high risk. Hence, this paper suggests the 'improved performance fee system' to overcome the dilemma born by the performance fee system. In the improved system, advisory fees are based on the traditional performance measure and the fordward-looking performance measure (hereafter F-LPM).With a two-period principal-agent model, this paper develops the optimal reward system and related comparative static. Following the basic model, the paper examines the attributes and function of F-LPM. The findings are consistent with the related literature. First, the inclusion of a F-LPM in reward system can mitigate the potential for the advisor to focus excessively on the short-term at the expense of the investor. That is, F-LPM is incremental informative. Second, costless increases in precision of F-LPM will lead to increase in payoffs for the inveator. Finally, the improved performance fee system is superior to the constant fee system and the performance fee system in that it can reduce risk and results in higher payoffs to the investor

The Impact of the COVID-19 Pandemic on Food Consumption Behavior: Based on the Perspective of Accounting Data of Chinese Food Enterprises and Economic Theory

Since the outbreak of the COVID-19 pandemic, the rapid spread of COVID-19 around the world has become one of the main focuses of concern in almost every country, and governments have taken numerous measures to prevent/mitigate the spread of the disease. As an essential social determinant, COVID-19 has significantly impacted consumers’ food consumption behavior and healthy eating habits/behaviors. The purpose of this study is to analyze the impact of COVID-19 on food consumption behavior, and the main goal was to assess the possible problems (such as food waste and weight gain) caused by changes in food consumption behavior during the pandemic. Based on the accounting data of Chinese enterprises found in the China Stock Market and Accounting Research (CSMAR) database, this study uses economic theory and the translog function to conduct an average partial effect (APE) analysis of the pandemic, and finds that the COVID-19 pandemic has increased Chinese people’s overall food consumption, and the consumption of food from large food enterprises has increased even more (APE = 0.11 vs. APE = 0.31). This study suggests that food waste and weight gain in the Chinese population may be more severe during the pandemic, and it is necessary to enhance food management and weight management through multiple pathways

The association between continuing professional education and financial performance of public accounting firms

100學年度張寶光升等參考著作[[abstract]]This study investigates the relationship between continuing professional education (CPE), a mechanism of professional training, and financial performance of public accounting firms. Both training subject (partner and assistant) and training location (internal and external) are included. Public accounting firms are categorized as big, medium, and small-sized ones. Empirical data are obtained from the 1992-1995 Survey Report of Public Accounting Firms in Taiwan, published by the Financial Supervisory Commission, Executive Yuan, Taiwan, ROC. Univariate test and multiple-regression model are employed to examine the financial performance effects of CPE. Main results indicate that both professional training of assistants and external professional training are positively related to financial performance in big-sized firms. Next, we document a significantly positive association between internal training of assistants and financial performance in either big-, medium-, or small-sized firms. Finally, both external professional training of partners in big-sized firms and external professional training of assistants in small-sized firms are positively related to financial performance. Few prior studies investigate professional training of public accounting firms by a regression model due to availability of empirical data. Accordingly, evidences obtained in this study provide useful information to partners for decision-making in public accounting firms under the considerably competitive audit market.[[journaltype]]國外[[incitationindex]]SSCI[[ispeerreviewed]]Y[[booktype]]紙本[[booktype]]電子版[[countrycodes]]GB

Higher Academic Qualifications, Professional Training and Operating Performance of Audit Firms

This study examines the association between professional training, higher academic qualifications (educational levels) and operating performance of audit firms in Taiwan. We particularly focus on the curvilinear effects of higher academic qualifications on operating performance. We group the total sample into three categories: national, regional and local audit firms. Based on the theoretical framework in industrial economics, we establish a cross-sectional multiple regression equation to test our hypotheses. Both higher academic qualifications and professional training are positively related to the operating performance of audit firms. Professional training moderates the relation between higher academic qualifications and operating performance. Higher academic qualifications exhibit a curvilinear effect on operating performance with a reverse U-shaped relation for the national audit firms and a U-shaped relation for both regional and local audit firms. Due to data unavailability, some factors affecting the audit quality and operating performance are not included in our analysis, such as auditor teamwork, internal control system, operating policies and auditing procedures of audit firms. The findings that higher academic qualifications are positively associated with the operating performance of audit firms justify the educational policy of establishing institutes or graduate schools in accounting over the past two decades. Furthermore, audit firms skillfully exploit employees with higher academic qualifications to improve their operating performance. We are the first to document the moderating effects of professional training and the curvilinear association between higher academic qualifications and operating performance, contributing knowledge to related literature