Abstract
Before the late 1980’s, the number of accounting and auditing scandals caused by U.S. corporate financial reporting was not as prevalent as in 90’s and early 2000’. However, in the late 1990’s there were an alarming number of accounting scandals involving large U.S. firms; Enron Corporation, IBM, Xerox, to name a few. These audit failures helped to diminish both the credibility of audited financial statements, accounting profession and the efficiency of the securities markets. In 2002, in an effort to remedy the shortcomings of the current system, the U.S. Congress passed and the President Bush signed the Sarbanes-Oxley Act (SOX) into law, which changed the way firms provided their financial information. SOX was created with a number of checks and balances designed to identify problems within organizations, ensure organizations and auditors were acting ethically and responsibly. This paper will explore many ways that SOX has changed the corporate landscape. Although much can be said about the way SOX altered financial reporting and encouraged transparency for investors, many are still opposed to SOX because of the substantial costs associated with being in compliance with SOX. While many people are still skeptical about SOX’s ability to mitigate future scandals a series of empirical research provides evidence that SOX is working as it helps US corporations to produce financial statements with less misstatements and discretionary accruals.
Keyword: Sarbane Oxley Law, SOX, Financial Reporting, Accounting Transparency
Yingji Li, Xiaolian Qiu, Feng Li
Abstract
This study develops the Korea E-mart stores Satisfaction Evaluation System by referencing and modifying the model of ACSI(American customer satisfaction index) and ECSI(European customer satisfaction index) which investigated the situation of Korea E-mart stores. The results show that the student consumers which are form china satisfied with Korea E-mart stores well, emphasis on service quality and product quality which is batter, have confidence in Korea E-mart stores, the student consumers in high expenditure levels emphasis on the corporate image of Korea E-mart stores more. This study makes sense to explore the consumers’ satisfaction which are live in foreign country, and the results provide references to the development for Korea E-mart stores.
Keyword: Customer satisfaction, Perceived Quality, Satisfaction
Abstract
The presence of nontariff barriers is not an abnormal phenomenon in the international marketplace. Barriers, either country-specific or -general, other than tariffs and/or the consumer subculture of anti-globalization are pervasive. Both economics and marketing disciplines acknowledge the existence of macro- and micro-level resistance toward the flow of products across borders: (1) government-led regulations on packaging, custom, freight, quantity and quality, promotion and safety of imported products; and (2) consumer subculture such as consumer animosity, consumer ethnocentrism, negative country-of-origin image and cultural distance. Yet, a number of scholars point out that there is no overarching framework. After comparing the perfect competition and Resource-Advantage (RA) theories, the author concludes that RA theory better explains the global competition and various nontariff barrier phenomena in terms of demand, consumer motivation, firm motivation and the nature of the global environment.
Keyword: Consumer-led Nontariff Barriers, Consumer Animosity, Consumer Ethnocentrism, RA theory
Juan Tang, Wanpeng Cheng, Wenzheng Chen
Abstract
Since China’s entry into WTO, the world witnesses its miracle of economic growth. However, fast modernization and industrialization brings China serious environment pollution as well as social imbalance, which forces China to transform to a more balanced industrial structure and proceed to a high-end service industry oriented economy. For better understanding what happened, after 2001, to China’s service industry from the perspective of international competitiveness of trade in service, this paper firstly introduces research background, followed by empirical tests in terms of two prevailing indexes well-accepted in related researches, i.e. RCA and TC indexes. The results show that China is roundly lagged behind. However, the good news is China’s high-end services were keeping increasing in general, while traditional service industries were gradually declining and losing their competiveness. In the end, according to the conclusions of those quantitative researches, we give our suggestions to Chinese policymakers regarding further openness directions.
Keyword: Trade in Services, RCA indexes, TC indexes
Younsik Shin, Zhaozhao Niu
Abstract
Going with the process of globalization, foreign direct investment (FDI) has entirely and widely been a strong driver of economic development. China has become a large destination of FDI in the past two decades; however China has also increased its outward FDI dramatically these years. The objective of this paper is to provide a better understanding of host country determinants of Chinese OFDI. Based on a panel data analysis of 23 countries from 2007 to 2012, we integrated the traditional and macroeconomic economic and social factors in host countries to make a regression analyses on the host factors affecting China’s outward FDI across a range of variables including market-seeking, efficiency-seeking, infrastructures, economic openness and macroeconomic stability. In this paper the results show that market size of the host economy is a positive and the most significant determinant among our variables associating with China’s outward FDI flows. The results also show that Chinese investments are oriented towards efficiency seeking, even though China still possesses the advantage of labor cost. Moreover, Chinese investors are guessed to be interested in investing in infrastructure industries both in developed and developing countries, because the company can benefit from the economic development and promoting potential consumers through investing the infrastructure industry. Economic openness and macroeconomic stability showed significant positive coefficient as well, both of them affect the Chinese OFDI flows significantly. The findings have important policy and managerial implications.
Keyword: China, Outward FDI, Host Country Determinants
Taekyum Oh, Heechun Roh
Abstract
We studied the effect of the volatilities of Operating Cash flow, Sales, non operating incomes, and the amount of Operating Cash flow on the Earning’s Quality. Because income is composed of Operating Cash flow and Accruals, so Operating Cash flow directly effects on the income. Usually if Operating Cash flow decrease, the firm tries to maintain income, and the volatilities of sales gives overall effect on the firm, so we studied how much do these factors affect the Earning’s Quality. The main empirical results of this study are as follows. First, the volatilities of Operating Cash flow, Sales, non operating incomes effected on the Earning’s Quality negatively, and if the amount of Operating Cash flow is negative, it affected on the Earning’s Quality negatively. Especially the volatilities of Operating Cash flow became larger, the firm made the largest income manipulation. Second, among the volatilities of Operating Cash flow, Sales, non operating incomes, and the amount of Operating Cash flow, the volatilities of Operating Cash flow had the biggest effect on the Earning’s Quality. But the amount of Operating Cash flow had the similar effect on the Earning’s Quality as the volatilities of Operating Cash flow. The contributions of this study are as follows. First, the study made clear the reason for the negative relations between the volatilities of Operating Cash flow and the firm value by showing the negative effect of the volatilities of Operating Cash flow on the Earning’s Quality . Second, this study shows how much the Earning’s Quality is effected by the factors we studied. So it will give suggestions to the firm the way to enhance the Earning’s Quality for increasing firm value by setting accounting policy. Third, the study shows the possibility to use the volatilities of Operating Cash flow as a measure of the Earning’s Quality. As the measure of the Earning’s Quality, the factors we studied may substitute the discretionary accruals.
Keyword: Earning's Quality, Operating Cash flow, Sales, Non operating incomes