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The second paper by Kuo, Ho, and Li studies the relationship between community
benefit service expenditure and the tax-exempt interest of not-for-profit hospitals in Taiwan.
Based on the panel data from 43 not-for-profit hospitals in Taiwan from 2006 to 2011, the
regression results indicate that tax-exempt interest has a negative relationship with
uncompensated care services spending (such as providing free medical care and healthcare),
a positive relationship with educational research and development expenses, and no
significant relationship with community benefit service expenditure. The reverse relationship
between tax-exempt interest and uncompensated care services suggests that the main purpose
of granting not-for-profit hospitals tax benefits is not achieved successfully.
The third article by Fang and Chang investigates the impact of non-operating related
party transactions by affiliated business groups on earnings persistence. The empirical
findings suggest that most components of an affiliated business group are audited by auditors
from different CPA firms, which could decrease earnings persistence because affiliated
business groups are likely to conduct related party transactions by means of non-operating
activities. In contrast, if components of the affiliated business group are audited by the same
firm, earnings persistence would not decrease when the CPA firm conducting the audits is
big or the affiliated business group itself is big.
Based on the data of Taiwanese publicly traded firms from 2005 to 2011, Li shows that
audit partner experiences are positively related to the level of comparability of financial
statements for short and middle audit firm tenure engagements. Moreover, the empirical
findings suggest that a higher level of comparability can mitigate investment inefficiency in
capital expenditures; however, it has no effect on investment inefficiency in non-capital
expenditures.
The fifth paper by Wu and Hua provides an evaluation framework of risk management
performance for financial holding companies (FHCs) in Taiwan based on four dimensions
(i.e., financial, customer needs, internal business process, and learning and growth). They
apply a hybrid method of the balanced scorecard (BSC) and the DEMATEL method
combined with the analytic network process (DANP) to obtain the key factors of risk
management. The results coming from the DEMATEL method indicate that strategic,
integration, management, and leadership risks have high prominence in the core factor zone