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networks) company apportions advertorial tasks among creators with different abilities to
attract online viewers and designs revenue-sharing contracts particularly for the creators.
They discover that the MCN company may not always allocate an advertorial task only
to the most outstanding creator. That is, when the creators’ abilities are not too distinct,
and the advertorial fee and the cost for creating a video are moderate, a splitting strategy
(i.e., allocating the task to multiple creators) could be optimal. However, after comparing
different industry structures, they also find that the splitting strategy cannot be optimal
without independent MCN companies. In other words, competent independent MCN
companies may make video-sharing platforms such as YouTube more diversified.
The second article “Tax Avoidance and Financial Statement Readability: The Role
of Industry Specialization Auditor” in the field of accounting by Chen, Liu, and Syu aims
at investigating whether firms with tax avoidance activities issue less readable financial
statements; whether high-quality audit helps moderate the effects of tax avoidance on
financial statement readability. The study uses a sample of Taiwan listed firms from 2013
to 2018 (non-Western evidence) and finds that firms with high levels of tax avoidance
issue more complex and less readable financial statements. Furthermore, this study
confirms that the negative association between financial statement readability and the
level of tax avoidance can be mitigated if firms are audited by industry specialists. Based
on these findings, this study proposes that industrial-specialist auditors will help firms
perform appropriate adjustments to financial statements, build strong internal monitoring
mechanisms, and engage in comprehensive corporate governance to raise the quality of
the statements.
The third article “Service Innovation in the IT Service Industry: Social Influence and
Relationship Exchange Perspectives” in the field of marketing by Zhong, Hsieh, Pai, and
Lin examines how empowering leadership (EML) and team-member exchange (TMX)
affect individual innovation performance through informational influence and normative
influence by integrating social influence theory and relationship exchange theory. They
conduct a multiphase and multisource survey and collect 282 individually matched pairs
of engineer-leader dyads from three major Taiwanese IT companies. Results show that
value congruence and felt obligation mediate the effect of EML and TMX on innovation
performance through informational and normative influence routes, respectively. Their
moderating analysis also reveals that a stronger association between innovation intention
and innovation performance becomes manifest when team members have higher other-
orientation characteristics.