【2018/04/01 vol.25(2)】Visit the website for more information:
“The Impacts of Abusive Supervision on Subordinates’ Supervisor-directed Deviance: The Moderating Effect of Coping Strategies and the Mediating Effect of LMX”
Editor: Shu-Chen Chen, Ming-Jie Tsai, Na-Ting Liu, Yi-Ching Liu
Keywords: Abusive Supervision; Supervisor-directed Deviance; LMX; Problem-focus Coping; Emotion-focus Coping
Summary: The purpose of this research is to explore the relationships between abusive supervision and subordinates’ supervisor-directed deviance. Moreover, this study develops a moderated-mediation model integrating coping strategy as moderator and LMX as mediator to explore whether problem-focus coping (i.e. direct communication and ingratiatory) and emotional-focus coping (i.e. avoiding contact and seeking support and reframing) moderate the relationship between abusive supervision and LMX, then influence subordinates’ supervisor-directed deviance. We adopt two-stage surveys to distribute the questionnaires and 417 valid questionnaires are returned. This study finds that problem-focus coping strategy (i.e. ingratiatory strategy) can weak the negative relationship between abusive supervision and LMX, then influence subordinates’ supervisor-directed deviance. On the other hand, emotion-focus coping strategy (i.e. avoiding contact, seeking support and reframing) can strength the negative relationship between abusive supervision and LMX, then influence subordinates’ supervisor-directed deviance. Finally, based on the research findings, we provide several managerial suggestions and the future research directions.
“How Manager Overconfidence and Audit Ability affect Preliminary Earnings Information Disclosure Decision?”
Editor: Shen-Ho Chang, Shaio Yan Huang, Teng-Shih Wang, Chao-Chung, Kang
Keywords: Overconfidence; Audit Ability; Preliminary Earnings Disclosure; Disclosure Decision
Summary: In this paper, we investigate preliminary earnings information disclosure decision from perspectives of manager overconfidence and audit ability. This study adopts the Two Part Model and find that firms are willing to disclosure preliminary earnings information when manager feel overconfidence. When companies hire industry specialization auditor, companies are willing to disclosure preliminary earnings information too. In addition, firms are willing to enhance disclosure frequency when they hire industry specialization auditor. Moreover, we also investigate how preliminary earnings bias affected by manager overconfidence and audit ability. We find preliminary earnings bias decrease (increase) in manager overconfidence (auditor tenure). Finally, this study finds that overconfidence manager have superiority over accounting firms when we investigate bargaining power between manager and accounting firms.
“The Effect of ERP System Implementation on Earnings Management and the Value-Relevance of Accounting Information”
Editor: Hsiu-Hui Tsao; Chuan-Chuan Huang
Keywords: Enterprise Resource Planning; Earnings Management; Value-relevance; Accounting Information Quality
Summary: This study investigated the effect of enterprise resource planning (ERP) system implementation on earnings management and the value-relevance of accounting information. Among the top 1000 most successful Taiwanese manufacturing firms, those that had implemented ERP systems during 2001-2011 were sampled for an empirical analysis. The results indicated that earnings management, which is measured by short- and long-term discretionary accruals, decreased after the firms implemented ERP systems. The analysis also revealed a significantly negative relationship between ERP implementation and the combined value-relevance of earnings and book values. The results also showed that after the firms implemented ERP systems, the value-relevance of book value increased and that of earnings decreased. These findings indicate that after the firms implemented ERP systems, the faithful representation of accounting information increased and the value-relevance of accounting information decreased. The book value possessed more valuable information from the perspectives of investors after the implementation of the ERP system.
“Entrepreneurial Orientation and Firm Performance: The Mediating Roles of Market Orientation and Technology Strategy”
Editor: Hui-Hui Huang; Chih-Yuan Chen; Shyh-Chyi Wey
Keywords: Entrepreneurial Orientation; Market Orientation; Technology Strategy; Firm Performance; A Multiple Mediating Model
Summary: Both market orientation (MO) and technology strategy (TS) are important for entrepreneurial firms; MO focuses on customer needs, while TS stresses the importance of the technological superiority. MO and TO may differ in the approach to achieve high firm performance, but both are complementary to accomplish it. Nonetheless, in the prior literature of entrepreneurial orientation (EO), the variables of MO and TO that simultaneously mediate the 「EO→ firm performance」 relationship have not been holistically investigated. Accordingly, this study constructs a multiple mediation model, an integrated conceptual framework, to examine comprehensively how EO influences firm performance through the multiple mediating variables of MO and TS. Through carrying out a survey on the firms in the supply network of vehicle component industry, and applying a testing method on multiple mediating effects, the empirical result indicates that EO would increase firm performance through the multiple mediating variables of MO and TS. Accordingly, the relative magnitudes of the effects associated with all mediators are further examined in this study. First, in terms of the two mediating variables of MO, the result shows that the indirect effect of EO through proactive MO is larger than that through responsive MO. And then, in terms of the three mediation variables of TS, the result reveals that the indirect effect of EO through internal R&D spending is larger than that through using the means of intellectual capital protection, while the indirect effect of EO through using external technology sources is insignificant.