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Special thanks go to Dr. Samuel Yin, President of Ruentex Financial Group, who
partially sponsors
NTU Management Review
by way of Yin-Xun-Ruo Educational
Foundation, allowing our journal to continuously publish distinguished publications. Our
appreciation also goes to the Research Institute for the Humanities and Social Science,
Ministry of Science and Technology, Executive Yuan (
行政院科技部人文社會科學研究中
心
) for sponsoring the hiring of editorial assistants, who have been very helpful. Last but not
least, we would like to thank T. N. Soong Foundation for its continuing support. To
encourage research in accounting, auditing, finance, taxation, information, and management
in Taiwan, the Foundation has sponsored the Best Master’s Thesis Award since 1996. Several
winning papers have been published in
NTU Management Review
since then.
Introduction of This Edition
This edition of
NTU Management Review
contains seven articles. The following is a
brief introduction of the seven articles.
Four articles related to finance and accounting are published in this issue. The first
article by Hsu and Liu examines the relationship between the span of corporate pyramids and
its tax avoidance activities. They use the data of publicly traded non-financial firms of
Taiwan, which are obliged to disclose information on all of their affiliates, to measure the
span of corporate pyramids using the number of layers in them. There are two main findings
in the paper. First, it is shown that firms with a larger number of layers engage in more tax
avoidance activities, leading to lower effective tax rates. Second, the empirical result
suggests that the positive relationship between the level of tax avoidance and having
investees in tax havens becomes more significant as the number of layers increases.
The second paper by Chiu and Chou investigates the effect of both SOX 404 and AS5
on ICFR disclosure errors. Based on the method developed by Knechel and Vanstraelen
(2007), they regard restatement companies (nonrestatement companies) as those with weak
(effective) internal controls and greater (lower) likelihood to receive adverse ICFR opinions.
The deterioration in ICFR-disclosure quality is defined as an increase in the likelihood of