| 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. | 
