Vol 10, No 2, May 2007

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This is the second issue of volume 10 (2007). This issue includes seven articles covering areas in finance, strategic planning, organizational behavior and corporate governance.

The first article, by Chen et al., uses the information electronics industries in Taiwan to establish measurement indicators for the four aspects of the balanced scorecard (BSC) and to verify the structural relations of these aspects. Empirical results show that the indicators established in this research are appropriate.

In the second article, Wu et al. compare through a survey the position differences of bank employees on emotional intelligence and bank type differences with respect to three areas: emotional intelligence, organizational climate and service quality. The authors also examine the relationships among these three areas. The research suggests that private banks should emphasize the acquisition of emotional intelligence, and establish warmth and identity in the organizational climate.

Hsieh et al., in the third article, investigate the price discovery between the Taiwan stock index, its index futures and index options. Concerning the data collecting process in inferring the implied price from option premium, the authors propose a proper model PCP (put-call-parity) and demonstrate that Taiwan's market efficiency originates from the low implicit trading cost.

Chou and Lu, in the fourth article, take listed and OTC companies in Taiwan as their sample and use the Cascaded logistics model to construct a prediction model. The empirical results show that the authors' model better discriminates ability and stability.

Taking Taiwan regulators and supervisors as an example, the fifth paper, by Wu and Zou, suggests ways to strengthen the capability, integrity and accountability of regulators and supervisors from a theoretical viewpoint. To make corporate governance workable in countries in Asia, the authors advocate that the focus should be evenly placed on regulations and the compliance of companies.

In the sixth article, Lin and Kuo investigate the stock price reaction to analysts' information reported in a Taiwanese financial newspaper. The authors find that the longer the investment horizon is, the worse stock recommendations perform after the forecast release date.

The last article, by Wu and Tsai, studies incentive effects based on two types of stock options. Based on their study, the authors recommend that companies or government organizations adopt indexed executive stock options as these offer a greater incentive to executives than traditional executive stock options.




A Research on the Measurement Indicators and Their Connections of Four Aspects of Balanced Scorecard (BSC) - An Empirical Study on the Information Electronics Industries in Taiwan (in Chinese)


Yu-Fen Chen
National Changhua University of Education
Tsui-Chih Wu
Department of Accounting, Shih-Chien University
Kai-Wen, Kevin, Cheng
National Kaohsiung Hospitality College

A Study on Relationships among Emotional Intelligence, Organizational Climate, and Service Quality- A Case Study of Bank Industry (in Chinese)


Shwu-Ming Wu
Teacher Education Center, I-Shou University
Tsuen-Ho Hsu
Department of Marketing and Distribution Management, National Kaohsiung First University of Science and Technololgy
Gow-Ming Dong
Department of Information Management, Shu-Te University

Price Discovery among Taiwan Stock, Futures, and Option Markets: An Application of Put-Call Parity (in Chinese)


Wen-liang G. Hsieh
Department of Finance, Tamkang University
Chin-Shen Lee
Department of Finance, Ming Chuan University, Taiwan
Shu-Fang Yuan
Department of Business Administration, Nanhua University, Taiwan
Huei-Hsieh Lin
Department of Public Finance and Taxation, Takming College, Taiwan

Using Cascaded Logistic Model to Construct Financial Distress Prediction Model for Taiwan Listed and OTC Companies (in Chinese)


Pai-Lung Chou,
Department of Risk Management and Insurance, National Kaohsiung First University of Science and Technology
Chun-An Lu
Institute of Management, National Kaohsiung First University of Science and Technology

Corporate Governance with Capability, Integrity and Accountability of Regulators and Supervisors: An Examination of Financial Supervisory Commission in Taiwan


Chung-Fern WU
National Taiwan University
Real Estate & Built Environment Dept., National Taipei University

Stock Recommendations and Analyst Conflicts of Interest: Evidence from the Taiwan Stock Market


Luke Lin
Department of Finance, National Kaohsiung First University of Science and Technology, Taiwan
Chau-Jung Kuo
Department of Finance, National Sun Yat-sen University, Taiwan

A Study on Performance Evaluations and Incentive Effects for Compensation of Traditional and Indexed Executive Stock Options: The Cases of UMC and ASX (in Chinese)


Ming-Cheng Wu
Department of Business Education, National Changhua University of Education
Yow-Chyun Tsai
Department of Business Education, National Changhua University of Education