This paper investigates the impact of an ambiguity increase on the optimal insurance deductible for a risk- and ambiguity-averse individual under the uncertainty of a loss distribution. A deductible is an important insurance contract design in both theory and practice. Previous studies have reported preference-based results in the context of coinsurance, albeit with limited applications. In this paper, we prove a straight deductible is optimal under an alpha-maxmin model. In the context of the straight deductible, we assume that the cumulative loss probability at an initial optimal deductible is preserved after an ambiguity increase. We show that, for a loss below the initial optimal deductible, the optimal deductible remains unchanged when possible distributions are unaffected by the ambiguity increase. Allowing for a distinct center in the belief set while keeping the others unchanged, we prove that, when the worst distribution is unaffected, but the best distribution deteriorates in terms of first-order stochastic dominance, the optimal deductible becomes lower after the ambiguity increase. If the cumulative loss probability is not preserved, the optimal deductible decreases when, at the initial optimal deductible, the odds of obtaining partial indemnity relative to no indemnity become larger under the loss distribution distorted by ambiguity aversion.
This study examines the impact of firms' engagement in political activism on their corporate innovation capability, focusing on listed firms in Taiwan and analyzing legislative elections from 2008 to 2019. This study finds that firms' political activism, as indicated by support for legislative candidates through political donations, is negatively associated with corporate innovation activities. Furthermore, the negative impact on innovation capability is more pronounced in electronics firms that make political donations. These findings suggest that crowding-out and the political resource curse reduce the benefits of corporate political activism, thereby hindering innovation.
Enterprises generate profits by providing products and services, aiming to maximize profits through effective marketing strategies. However, how long can a product survive, and how much profit can it generate throughout its entire life cycle? Related studies remain rare. As this area has not been thoroughly explored by scholars, this study aims to develop a method for measuring Product Life Cycle Value (PLCV). By integrating with Activity Value Management (AVM), this research utilizes profit information produced through AVM as the foundation for estimating PLCV. This study also incorporates Artificial Intelligence techniques to construct and validate predictive models for PLCV, thereby enhancing forecasting accuracy and practical applicability. We adopt the field-based empirical approach, with a well-known domestic channel agent serving as the research subject. From the perspective of the channel agent, the study investigates the life cycle duration and value of distributed products. Furthermore, for products with greater PLCV, the study combines demographic variables from the corresponding channel regions to identify the key population characteristics that influence profitability, thereby improving the effectiveness of resource allocation decisions
This study investigates whether an audit partner's litigation experience affects subsequent audit quality. Using a sample of financially distressed public firms in Taiwan from 1999 to 2023 and employing the accuracy of the going-concern opinion (GCO) as a proxy for audit quality, this study documents that defendant audit partners remain more likely to issue GCOs to non-bankrupt firms after being sued, suggesting that GCO Type I errors contaminate subsequent audits. However, this contagion phenomenon will be mitigated after the district courts rule in favor of the defendant audit partners. On the other hand, this paper also finds that audit partners significantly increase the likelihood of issuing GCOs to soon-to-go-bankrupt firms after being sued, indicating that defendant partners improve audit quality and commit fewer GCO Type II errors, especially those partners whose litigated event clients go bankrupt. Overall, litigation experience does not significantly affect audit partners' GCO Type I errors, but it does significantly reduce GCO Type II errors.
In this study, we use attribution theory and social identity theory to develop a parallel mediated moderation model. Our goal is to explore whether the interaction between external and internal corporate social responsibility (ESCR and ICSR) influences the substantive and symbolic motivational attributions of employees, and to determine how these attributions, in turn, affect organizational identification. Although prior studies have examined the inconsistencies between ECSR and ICSR perceptions and their potential influence on employees' motivational attributions, limited attention has been paid to how these interactions shape organizational identification. According to attribution-based models, individuals may develop multiple attributional cognitions for specific events at the same time. Thus, employees may perceive organizational CSR efforts as simultaneously driven by both substantive and symbolic motives. However, whether and how the interplay between perceived ECSR and ICSR contributes to such dual attributions and ultimately leads to divergent effects on organizational identification remain an underexplored area. In this study, to minimize common method variance (CMV), we collect data at two time points from 209 respondents employed across diverse organizations in Taiwan. We then analyze these data using Mplus 8.3 software. The results indicate that the interaction between ICSR and ECSR is positively associated with substantive attributions, but negatively associated with symbolic attributions. Specifically, when perceived ICSR increases, the positive relationship between perceived ECSR and substantive attribution becomes stronger, whereas the negative relationship between perceived ECSR and symbolic attribution becomes weaker. Furthermore, substantive attribution is positively associated with employee organizational identification, whereas symbolic attribution is negatively associated with employee organizational identification. Nonetheless, both types of attribution simultaneously mediate the indirect effect of the interaction between perceived external CSR and perceived internal CSR on organizational identification. Overall, these findings contribute to the literature on CSR and provide a theoretical basis for CSR practice
