industry effects, the stimulation effect is driven primarily by low R&D intensity firms and small firms. These findings consolidate the effectiveness of the Biopharmaceutical Act for biopharmaceutical firms with more serious R&D underinvestment problems. Their investigation also shows the effectiveness of tax credits granted by the Biopharmaceutical Act for the R&D investment of biopharmaceutical firms in Taiwan. There are two articles related to finance and accounting in this issue. The first article by Chan, Peng, and Tsai studies the impact of two accounting standards, IFRS (International Financial Reporting Standards) 9 and IFRS 17, on the life insurance industry in Taiwan. The authors first review the supervision regulations and find that regulators are strategically moving in a phased manner in the context of industrial self-discipline, external accountants’ cooperation, and corporate governance to reduce the transitional impacts. The empirical results suggest that the implementation of IFRS 9 leads to (1) the volatility of life insurance companies’ profit/loss and equity value has increased; (2) companies’ willingness to hold high dividend stocks has risen; and (3) recognition of bond investment benefits has become more flexible. Finally, this paper conducts simultaneous quantitative simulation to explore the joint impact of IFRS 9 and IFRS 17 and the results indicate that both the fluctuation of income of life insurance companies and fluctuation of equity value will increase significantly. Using the data of the U.S. listed companies (1985-2016), the second paper by Chung, Chiu, Li, and Hung investigates the impact of organization capital on bank loan variables including bank loan spread, loan maturity date, security, number of general contracts, and number of financial contracts. The results reveal that a higher organization capital is associated with lower bank loan spread, security, and general covenants. Finally, this study confirms that when firms have better managerial abilities, higher organization capitals help reduce bank loan spreads. Hsiou-Wei Lin David Ming-Huang Chiang San-Lin Chung
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