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Browsing Accounting & Finance by Author "Chen, Fu-Chiang"
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Item Hedging strategies and performance of the US financial holding companies: A dynamic frontier analysis(Inderscience Publishers, 2021) Nourani, Mohammad; Chen, Fu-Chiang; Gurrib, Ikhlaas; Kweh, Qian Long; Wu, Yun-HaoGlobalisation led to dynamic developments in the area of financial innovation. The main object of this study is to shed light into the relationship between hedging strategies and operational performance. We initially employed a dynamic data envelopment analysis model to incorporate carry-over items in order to assess the long-term operating performance of the top 50 US financial holding companies (FHCs) over the period 2005-2009. We then evaluated the operating performance under four different hedging measures and eight sub-industries. Findings show that significant differences exist among sub-industries on the overall mean operating performance of the US FHCs, as the financial situation changes over time. Empirically, we also provide evidence that the choice of an appropriate hedging strategy matters when it comes to operating performance. Overall, we support that choosing a suitable hedging strategy is crucial for FHCs even after a series of structural reforms following the latest global financial crisis. Copyright © 2021 Inderscience Enterprises Ltd.Item Intellectual capital and bank branches' efficiency: an integrated study(Emerald Group Holdings Ltd., 2022-05-26) Ting, Irene Wei Kiong; Chen, Fu-Chiang; Kweh, Qian Long; Sui, Hai JuanPurpose: This study aims to investigate the association between intellectual capital (IC) and bank efficiency of Taiwanese bank branches. Design/methodology/approach: This study manually collects sample data from 107 non-public financial reports of the bank branches of Taiwan Business Bank Company Limited. As this study concerns bank branches, this study uses questionnaires related to IC to measure the implementation of IC at branch level. This study employs data envelopment analysis (DEA) models (BCC, EBM and BootBCC) to identify bank branches' efficiency. This study uses partial least square-based structural equation modeling analysis to assess the impact of IC and bank efficiency. Findings: Result reveals that relational capital (RC) significantly and negatively impacts bank efficiency. Findings also imply that human capital (HC) and structural capital (SC) do not contribute to bank efficiency in Taiwan. Practical implications: Spending effort in building relationships with customers diverts banks' resources. More inputs that are used may not be converted to outputs immediately. Bank branches should focus on enhancing their service quality to attract customers to use the facilities provided by branches. Originality/value: To the best of the authors' knowledge, this empirical study is the first to examine the association between IC and bank branches' efficiency in Taiwan by integrating primary and secondary data. For IC components, this study conducts a survey by designing the questionnaires related to IC to assess the implementation of IC at bank branches in Taiwan. In terms of efficiency, this study uses bank financial data and DEA models to identify bank branches' efficiency. © 2021, Emerald Publishing Limited.Item Interpreting the dynamic performance effect of intellectual capital through a value-added-based perspective(Emerald Group Publishing Ltd., 2020-03) Ting, Irene Wei Kiong; Ren, Chunya; Chen, Fu-Chiang; Kweh, Qian LongPurpose: The question of whether intellectual capital (IC) is beneficial to firm performance is debatable because of the diverse effects of IC and its components on firm performance. Building on the concept of pay–performance relation, this study aims to provide new insights into how changes in IC affect changes in firm performance. Design/methodology/approach: Data envelopment analysis is employed to measure firm performance, and value-added intellectual coefficient (VAIC™) is selected to evaluate the IC and its components, namely human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Ordinary least squares regression is applied to study the relationship between changes in IC and changes in firm performance using 6,408 firm-year observations of electronics companies listed in Taiwan from 2006 to 2017. Findings: Empirical results suggest that IC efficiency and CEE significantly and negatively affect firm performance, thereby suggesting a contradictory common sense with the resource-based view on the beneficial effects of IC. However, changes in IC efficiency and HCE are significantly and positively related to changes in firm performance, including changes in firm efficiency and sales growth. Practical implications: This study suggests that managers should continuously pay attention to adjusting their IC, especially human capital (HC) for better decisions that help grow firm performance. Moreover, investors can grasp how sensitive firm performance is to IC. Originality/value: This study argues the relationship between IC and firm performance in the same vein as a pay-for-performance link, suggesting that future studies should account for increases or decreases in IC. © 2020, Emerald Publishing Limited.