Tantatape Brahmasrene and Jui‐Chi Huang
A plethora of studies suggests the pricing decisions depend on product substitutability, costs, market structures, and the magnitude of exchange rate uncertainty in the…
Abstract
A plethora of studies suggests the pricing decisions depend on product substitutability, costs, market structures, and the magnitude of exchange rate uncertainty in the international setting. Taking a departure from existing literature, this paper examines the average degree of exchange rate pass‐through to the prices of export product under low to high exchange rate volatility. A panel data estimation method is performed using the annual US export data to 69 export destinations across 111 four‐digit Standard Industrial Classification (SIC) industries. An average zero or insignificant pass‐through estimate for all industries in the high exchange‐rate‐fluctuation sub‐sample confirms the hypothesis. In this period of high exchange risk, the possible high hedging engagements disconnect the relationship between exchange rate movements and export pricing.
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Ting-Ling Lin, Heng-Yih Liu, Chi-Jui Huang and Yu-Chiung Chen
This paper aims to examine the effect of ownership structure and board gender diversity on charitable donations for a group of listed electronics companies in Taiwan.
Abstract
Purpose
This paper aims to examine the effect of ownership structure and board gender diversity on charitable donations for a group of listed electronics companies in Taiwan.
Design/methodology/approach
Using linear regression analysis, this paper analyses the ownership structure, board gender diversity and charitable donations of 380 Taiwanese electronics companies (2011-2013).
Findings
While domestic institutional investors, such as domestic mutual funds and corporate investors, take more of agency logic view, it negatively impacts on charitable donations. However, the empirical findings of this paper indicate that board gender diversity with the critical number of female directors was positively related to charitable donation. Thus, it is clear that female directors reaching critical numbers were taking more of a stakeholder view of institutional logic, emphasizing the balance of interests of internal and external stakeholders.
Research limitations/implications
This paper is limited to selected Taiwanese electronics companies over a two-year time frame, and charitable donations are the only proxy of corporate social responsibility (CSR) activity. The paper suggests that, as predicted by stakeholder theory and critical mass theory, companies with boards composed of at least three female directors make higher charitable donations.
Practical implications
This paper indicates that female directors on the board should have more voices on the board regarding the necessity and importance of CSR.
Originality/value
The paper contributes to existing literature by looking into the effects of ownership structure and board gender diversity on charitable donations.
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Chih-Pin Lin, Chi-Jui Huang, Hsin-Mei Lin and Cheng-Min Chuang
Country of origin has profound effects on consumer behavior; yet few studies have examined an antecedent of these effects: why some countries enjoy a positive image while others…
Abstract
Purpose
Country of origin has profound effects on consumer behavior; yet few studies have examined an antecedent of these effects: why some countries enjoy a positive image while others suffer a negative one. Developing an institutional theory of country image, the authors argue that weak legal institutions at the country level increase firm opportunistic behavior that expropriates consumers and decrease the product quality of local brands, thus decreasing the country’s image regarding its products and brands.
Design/methodology/approach
This study measures country image for products and brands using the number of valuable brands (i.e. brands included in the top 500 brands from 2008 to 2016) in a particular home country. Data concerning the rule of law in each country come from the World Bank, and data on the efficiency of countries’ judicial systems comes from Djankov et al. (2007). We also collect patent data from the US Patent and Trade Office, national culture from Hofstede Insights and GDP and GDP per capita from the World Bank as control variables. Panel Poisson regression, Tobit regression and truncated regression are used in the analyses.
Findings
Supporting the institutional theory of country image, both the rule of law and efficiency of the judicial systems show positive and significant effects on country image, even when economy size (GDP), degree of economic development (GDP per capita), level of technology and skill (patents) and culture are controlled.
Practical implications
To improve their country’s image and the brand value of local firms, policymakers should strive to strengthen legal institutions aimed at punishing firm opportunistic behavior in their countries.
Originality/value
Previous research on the country-of-origin effect has not yet appreciated the role of legal institutions in developing the construct of country image.
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Jui‐Chi Huang and Tantatape Brahmasrene
This study examines the impact of expectations on the market share mechanism. The dynamic strategic pricing behaviors in the short‐run and the long‐run are also explored. The…
Abstract
This study examines the impact of expectations on the market share mechanism. The dynamic strategic pricing behaviors in the short‐run and the long‐run are also explored. The exchange rate expectations are incorporated into a switching cost model via the method of exchange rate pass‐through on product‐specific and country‐specific approach. By using the time series techniques, the results of the system estimations prove that the market share mechanisms are weakened by exchange rate expectations in open economies. Furthermore, not only is the degree of exchange rate pass‐through higher in the short‐run than in the long‐run but also many cases of pair‐wise rivalry are found. An improved understanding of the effects of exchange rate movements on foreign exporters pricing and pass‐through relations from this study may enhance competition in international markets.