Browsing by Author "Chen, Tsung-Kang"

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Bank management expertise and asset securitization policies
(2019-12-01)
Chen, Tsung-Kang
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Liao, Hsien-Hsing
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Ye, Jing-Syuan
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管理科學系
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Department of Management Science
We explore how the expertise of a bank holding company's management team affects its asset securitization policies. We find management team members with an MBA degree and top management experience securitize more low risk loans while those with core functional executive positions securitize fewer high risk loans. In addition, internal liquidity, governance quality, and risk management quality moderate these effects. Moreover, risk management concerns are the main driver of the negative effect of the percentage of core functional executives on asset securitization. We also provide evidence that core functional executives deem securitized mortgage loans riskier after the subprime crisis. (C) 2019 Elsevier B.V. All rights reserved.
Does Firm Location Affect Management Team Size and Reputation? Evidence from Taiwan star
(1970-01-01)
Chen, Tsung-Kang
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Tseng, Yijie
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Hsieh, Yu-Ting
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Yeh, Yi-Fang
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管理科學系
This study explores the effect of the location of a firm's headquarters on the firm's management team size and reputation (MS&R) in a geographically small country (i.e., Taiwan) with numerous founding family firms. The results show that firm location quality positively relates to MS&R, and the association becomes weaker when firm profitability is higher or the founding family is present in the firm. Furthermore, the effect of firm location quality on management team reputation (team size) becomes stronger (weaker) when the CEO position is held by the founding family. Finally, the results are robust when considering endogeneity issues and other model settings.
Embedded value reporting quality and credit risk: evidence from life insurance companies
(1970-01-01)
Chen, Tsung-Kang
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Tseng, Yijie
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Hung, Yu-Shun
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Lin, Chun-Chi
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管理科學系
This study investigates the effects of releasing embedded value (EV) reports and EV report disclosure quality on life insurance companies' credit risks, using issuer credit rating and bond yield spread data from 2001 to 2010. Results show that releasing an EV report and EV report disclosure quality are both significantly and negatively associated with life insurance companies' credit risks. In addition, the CFO Forum (2004a, 2004b, European Embedded Value) significantly strengthens the negative effect of releasing an EV report on firm credit risk while the subprime crisis has the opposite effect in Europe. Finally, the results are robust to endogeneity issues and different model specifications of fixed effects.
Employee treatment and its implications for bondholders
(2019-09-01)
Chen, Tsung-Kang
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Chen, Yan-Shing
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Yang, Hsiao-Lin
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管理科學系
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Department of Management Science
We examine the various channels through which the quality of a firm's employee relations can affect the welfare of bondholders. Our evidence suggests that better employee treatment benefits bondholders and leads to a lower bond spread by enhancing a firm's productivity, and by reducing the likelihood of product failures, labor strife, and employee turnover. However, a higher level of satisfaction is costlier for bondholders in firms facing more severe financial constraints or agency problems.
Readability of Notes to Consolidated Financial Statements and Corporate Bond Yield Spread
(1970-01-01)
Chen, Tsung-Kang
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Tseng, Yijie
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管理科學系
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Department of Management Science
We examine the association between the readability of 'Notes to consolidated financial statements' (Notes) in annual reports and corporate bond yield spread. We find that less readable narrative disclosure of Notes is significantly associated with greater bond yield spread. In addition, the association becomes stronger for firms in high-tech sectors or those with higher equity volatility, whereas it becomes weaker for firms with higher profitability or those with the reporting location of Notes being outside of the 10-K format file. We also provide evidence that Notes readability is helpful in explaining the puzzle of a positive yield spread always appearing when the bond approaches its maturity in practice. Overall, our results suggest that the Notes readability has a substantial association with bond yield spread and its term structure.