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a focus on listed firms in Taiwan by analyzing legislative elections from 2008 to 2019.
The study reveals that firms’ political activism, manifested through support for legislative
candidates via political donations, is negatively associated with corporate innovation
activities. Notably, this negative relationship is exacerbated among electronics firms that
provide higher levels of political donations. The findings indicate that the crowding-out
effect and the political resource curse diminish the value of existing forms of corporate
political activism, ultimately hindering innovation capability.
The fourth article titled “Does Litigation Experience Improve Audit Partner’s Audit
Quality?” in the field of Accounting by Chang examines whether an audit partner’s litiga-
tion experience affects subsequent audit quality. The study uses a sample of financially dis-
tressed public firms in Taiwan from 1999 to 2023 and employs the accuracy of the going
concern opinion (GCO) as a proxy for audit quality. The results show that defendant audit
partners remain more likely to issue GCOs to non-bankrupt firms after being sued, indi-
cating that GCO Type I errors contaminate subsequent audits. Nonetheless, this contagion
phenomenon will be mitigated after the district courts rule in favor of the defendant audit
partners. On the other hand, audit partners significantly increase the likelihood of issuing
GCOs to soon-to-go-bankrupt firms after being sued, suggesting that defendant partners
improve audit quality and commit fewer GCO Type II errors, particularly those partners
whose litigated event clients go bankrupt. In brief, litigation experience does not signifi-
cantly affect audit partners’ GCO Type I errors, but it does significantly reduce GCO Type
II errors.

Hsiou-Wei Lin
San-Lin Chung
Chih-Ping Wei
Tay-Chang Wang