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Volume 18, Issue No. 2, August 2011
- Shirley J. Daniel, Joshua K. Cieslewicz and Thomas C. Pearson, State Regulation’s Significant Impact on Corporate Governance Practices, Earnings Management, and Disclosure, 105-124
- Ya-Chin Wang and Leonard F.S. Wang, Entry Mode, Technology Spillover and Host Country Welfare, 125-144
- Keiichi Kubota, Kazuyuki Suda and Hitoshi Takehara, Information Content of Other Comprehensive Income and Net Income: Evidence for Japanese Firms, 145-168
- Ken Y. Chen, Randal J. Elder and Yung-Ming Hsieh, Corporate Governance, Growth Opportunities, and Earnings Restatements: Effects of a Corporate Governance Code, 169-200
- Kenneth Weiher and Hamid Beladi, Globalization and Wage Stagnation: Historical and Theoretical Perspectives, 201-212
- Announcements, 213-215
Corporate Governance Practices, Earnings Management, and Disclosure
Shirley J. Daniel,a* Joshua K. Cieslewicza and Thomas C. Pearsona
a University of Hawaii at Manoa
Abstract
We provide a theoretical basis for the relationship between the institutional environment, corporate governance practices, disclosure, and earnings management at the nation level. We then provide empirical evidence of these relationships.
JEL Classifications: G38, F55, M48
Keywords: Corporate governance, state regulation, earnings management, disclosure, globalization |
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Entry Mode, Technology Spillover and Host Country Welfare
Ya-Chin Wanga* and Leonard F.S. Wangb
a Kun Shan University, Taiwan
b National University of Kaohsiung, Taiwan
Abstract
This paper examines how technological spillover affects foreign entry, R&D level, and the host country’s welfare. It finds that the strategic effect decreases as R&D spillover increases. The foreign firm tends to raise the likelihood of choosing direct entry when the technology spillover is larger. For the foreign firms as well as the host country, there is no difference between choosing direct entry or acquisition when the market is extremely competitive. On regulation of foreign ownership, technology spillover creates the possibility of choosing direct entry for the foreign firm, which is different from the results obtained in Mattoo et al. (2004).
JEL Classification: F23, L13, O32
Keywords: entry mode, direct entry, merger and acquisition, R&D spillover, ownership constraint |
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Information Content of Other Comprehensive Income and Net Income:
Evidence for Japanese Firms
Keiichi Kubota,*a Kazuyuki Sudab and Hitoshi Takeharab
a Chuo University
b Waseda University
Abstract
This paper investigates information content of net income, other comprehensive income items, and “pseudo” comprehensive income for Japanese firms. The relative information content test demonstrates we cannot distinguish between net income and other alternative comprehensive income numbers. The incremental information content test shows other comprehensive income items have significant information content. The signs are counterintuitive, but we find the stock market reactions to other comprehensive income items are related to the degree of firms’ foreign dependency and on the magnitude of the ratio of available-for-sale securities to equities in a meaningful way. We conclude that comprehensive income and other comprehensive income are useful to disclose.
JEL Classifications: M40, M41, G32
Keywords: Comprehensive income, other comprehensive income, relative and incremental information content test, Japanese GAAP |
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Corporate Governance, Growth Opportunities, and Earnings Restatements:
Effects of a Corporate Governance Code
Ken Y. Chen,a* Randal J. Elderb and Yung-Ming Hsiehc
a National Taiwan University
b Syracuse University, USA
c Soochow University, Taiwan
Abstract
The study first examines whether firms that adopted the corporate governance mechanisms mandated by the newly enacted Corporate Governance Code in Taiwan are associated with lower incidence of earnings restatements. We find that firms with independent directors (supervisors) are associated with lower incidence of earnings restatements. We further examine this research question in a growth opportunity setting, a prevailing environmental feature in this emerging market, and find that high-growth firms having independent directors (supervisors) with financial expertise are associated with lower incidence of earnings restatements, suggesting that financial expertise of independent directors (supervisors) is important in the financial reporting function in high-growth firms.
JEL Classifications: M40, G34, G38
Keywords: Corporate governance, earnings restatement, financial expertise, supervisor, CEO duality |
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Globalization and Wage Stagnation:
Historical and Theoretical Perspectives
Kenneth Weihera* and Hamid Beladia*
a The University of Texas at San Antonio, USA
Abstract
U.S. real-wages stagnation since 1973 in spite of rising labor productivity is an unprecedented phenomenon. This paper presents the history of the relationship between real wages and productivity and based upon long-run evidence rejects two possible explanations, measurement issues and skill-biased technical change. Instead it focuses on the coincidence of the development of productivity/wage wedge and the conversion of the U.S. economy to an open one in the 1970s. It suggests that in an open economy, technical improvements and foreign competition may collaborate to generate a fall in real earnings, where they would not in a closed economy.
JEL Classifications: F1, F23, J31
Keywords: technical progress, real wages, productivity, open economy, closed economy |
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