International Journal of Research in Commerce and Management, 2014
must be informative and explain the background, aims, methods, results & conclusion in a single p... more must be informative and explain the background, aims, methods, results & conclusion in a single para. Abbreviations must be mentioned in full.
The outbreak of COVID-19 disease has become a global pandemic as announced by the World Health Or... more The outbreak of COVID-19 disease has become a global pandemic as announced by the World Health Organization (WHO) on March 12, 2020. In the last two years, the COVID-19 pandemic has hit over 200 countries and regions around the world. As of this writing, many parts of the world are still shaking, with over 330 million cases, and a cumulative death toll of 5.5 million. COVID-19 has led to a global public health emergency and put health organizations worldwide on high alert. The nature of the disease saw several strategies to curb its spread rolled out. These strategies included closing of businesses and borders, restriction of movements and working from home, mask mandate among others. It's inevitable that the economic costs are also enormous. The pandemic has caused the long-term economic shutdown and higher likelihood of economic insecurity, which resulted in severe volatility and prolonged downturns for financial market. The disruption to economic activity, as the result of both the human toll of the pandemic, as well as changes in human behavior, some of which were mandated by government policy, has cost untold amounts in almost every corner of the globe. When we are now mourning the loss of our beloved ones as well as the loss of that certainty that we used to have about the ways of our lives, the pandemic still remains hard to predictable in terms of spread, life cycle and consequences. Even though it is B Wen Long
Handbook of Financial Econometrics, Mathematics, Statistics, and Machine Learning, 2020
In today’s dynamic but ambiguous business environment the fuzzy set applications are growing cont... more In today’s dynamic but ambiguous business environment the fuzzy set applications are growing continuously as one of a manager’s most useful decision-making tools. Recent fuzzy set business applications show promising results (Alcantud et al., 2017; Frini, 2017; Toklu, 2017; Wang et al., 2017). International transfer pricing recently has received more attention as the US wages trade wars with China and other countries as some firms try to choose minimizing taxes as a transfer pricing strategy. This chapter demonstrates how to apply the fuzzy set in international transfer pricing problems. Applications of Fuzzy Set to Other Business Decision are also discussed in some detail.
This paper investigates Japanese bank managers’ use of the discretionary component of loan loss p... more This paper investigates Japanese bank managers’ use of the discretionary component of loan loss provisions to manage earnings during the recession of the late 25 1990s. Although studies of US banks document that bank managers use loan loss provisions to smooth earnings, manage regulatory capital, and signal undervalua27 tion, factors that may affect discretionary loan loss provisions in Japanese banks have not been empirically examined. We find that discretionary loan loss provisions 29 for our sample of Japanese banks are positively related to the demand for external financing, realized securities gains, and prior year taxes and are negatively related 31
Review of Pacific Basin Financial Markets and Policies, 2021
Directors’ monitoring and advising activities as agents were supposed to increase after the Dodd-... more Directors’ monitoring and advising activities as agents were supposed to increase after the Dodd-Frank Act in 2010. The Dodd-Frank Act significantly increases the pressure on the board of directors to be more effective agents of the stockholders even after the Sarbanes-Oxley Act (2002) became effective. Director compensation, especially incentive-based compensation, is intended to align with the interests of shareholders and motivate director behavior. This paper empirically tests how banks respond to the Dodd-Frank Act by redesigning their director compensation plans. Our findings suggest that banks recognize the need for improved board monitoring by highlighting the importance of director workload and qualifications through the design of director compensation packages in the post-Dodd-Frank Act period. We also find that the negative impact of excessive director equity compensation on firm performance was attenuated after the passage of the Dodd-Frank Act. The findings of this stud...
OBJECTIVE: This study evaluated attitude of physicians toward formularies as well as services pro... more OBJECTIVE: This study evaluated attitude of physicians toward formularies as well as services provided by the pharmacy department in a large independent practice association (IPA). METHODS: Surveys (n ϭ 280) were sent to all practitioners in the IPA. The survey requested information on physician use of and satisfaction with the existing printed formulary quick list, their satisfaction with the pharmacy services, and their attitude towards formularies in general using a five-point strongly agreestrongly disagree scale. We received 90 completed surveys with a response rate of 32%. RESULTS: Majority of respondents were staff physicians (87%). Around 31% indicated pediatrics as their specialization followed by family medicine (17%) and internal medicine (17%). Practitioners who indicated that they had received the formulary quick list (37%) were highly satisfied (3.44 Ϯ 0.84) with it. Practitioners were very satisfied with the performance (4.27 Ϯ 0.79), interaction (4.35 Ϯ 0.81), and services offered (4.21 Ϯ 0.79) by the pharmacies. Their attitude towards pharmacist playing a more active role in patient care was positive (3.54 Ϯ 0.98). However, their attitude towards formularies in general was negative. They agreed that formularies increased the amount of time spent making drug choices (4.01 Ϯ 1.1), limited access to the best medicines for patients (3.63 Ϯ 0.88), resulted in less-effective medicines (3.01 Ϯ 0.99), compromised the quality of drugs prescribed (3.36 Ϯ 0.92), and reduced the opportunities to offer the best medication for patients (3.43 Ϯ 0.82). CONCLUSION: Physicians had negative attitude towards formularies in general. However, they were satisfied with the services offered by pharmacists, and they were positive towards more patient care involvement by the pharmacists. Physicians were also satisfied with the formulary quick list offered by the pharmacy department. A plan was developed to provide practitioners with an interactive, intranetbased reference of medications that would assist in prescribing decisions.
This study proposes using multiple criteria quadratic programming (MCQP) and other data mining ap... more This study proposes using multiple criteria quadratic programming (MCQP) and other data mining approaches to predict auditor changes with early adopters of the Sarbanes-Oxley Act (SOX). It compares 2003-2004 U.S. firm data with data from 2005-2006 to measure the SOX effect on firms that voluntarily adopted this new regulation nearly (other than the size of the business). The results of the MCQP and other data mining approaches in this auditor change prediction study show that the MCQP method performs marginally better than other data mining approaches using financial and other data to predict auditor changes. In addition, the early SOX effect is not significant empirically using the auditor change prediction model of comparing the prediction rates of early adopters vs. those of later adopters.
Our study extends previous research that uses financial distress factors in predicting auditor ch... more Our study extends previous research that uses financial distress factors in predicting auditor changes by evaluating the effectiveness of the traditional discriminant analysis model, not used in previous auditor change studies, and by highlighting the importance of evaluating the likelihood that data mining approach classification results occurred by chance. Significance of individual predictor variables, as well as of the full set of 13 financial variables, can be tested using discriminant analysis. Kwak et al. (2011) document overall classification accuracy rates ranging from 61 to 63.5 percent for the four data mining models they compared but did not address whether these rates occurred by chance. Using Kwak et al.s (2011) data set of firms changing auditors in 2007 or 2008 and matching non-auditor change firms, our discriminant analysis test results show overall accuracy rates of less than 56 percent and true positive rates over 85 percent, but these rates are influenced by a di...
Our study evaluates a multiple criteria linear programming (MCLP) and other data mining approache... more Our study evaluates a multiple criteria linear programming (MCLP) and other data mining approaches to predict auditor changes using a portfolio of financial statement measures to capture financial distress. The results of the MCLP approach and the other data mining approaches show that these methods perform reasonably well to predict auditor changes using financial distress variables. Overall accuracy rates are more than 60 percent, and true positive rates exceed 80 percent. Our study is designed to establish a starting point for auditor-change prediction using financial distress variables. Further research should incorporate additional explanatory variables and a longer study period to improve prediction rates.
International Journal of Research in Commerce and Management, 2014
must be informative and explain the background, aims, methods, results & conclusion in a single p... more must be informative and explain the background, aims, methods, results & conclusion in a single para. Abbreviations must be mentioned in full.
The outbreak of COVID-19 disease has become a global pandemic as announced by the World Health Or... more The outbreak of COVID-19 disease has become a global pandemic as announced by the World Health Organization (WHO) on March 12, 2020. In the last two years, the COVID-19 pandemic has hit over 200 countries and regions around the world. As of this writing, many parts of the world are still shaking, with over 330 million cases, and a cumulative death toll of 5.5 million. COVID-19 has led to a global public health emergency and put health organizations worldwide on high alert. The nature of the disease saw several strategies to curb its spread rolled out. These strategies included closing of businesses and borders, restriction of movements and working from home, mask mandate among others. It's inevitable that the economic costs are also enormous. The pandemic has caused the long-term economic shutdown and higher likelihood of economic insecurity, which resulted in severe volatility and prolonged downturns for financial market. The disruption to economic activity, as the result of both the human toll of the pandemic, as well as changes in human behavior, some of which were mandated by government policy, has cost untold amounts in almost every corner of the globe. When we are now mourning the loss of our beloved ones as well as the loss of that certainty that we used to have about the ways of our lives, the pandemic still remains hard to predictable in terms of spread, life cycle and consequences. Even though it is B Wen Long
Handbook of Financial Econometrics, Mathematics, Statistics, and Machine Learning, 2020
In today’s dynamic but ambiguous business environment the fuzzy set applications are growing cont... more In today’s dynamic but ambiguous business environment the fuzzy set applications are growing continuously as one of a manager’s most useful decision-making tools. Recent fuzzy set business applications show promising results (Alcantud et al., 2017; Frini, 2017; Toklu, 2017; Wang et al., 2017). International transfer pricing recently has received more attention as the US wages trade wars with China and other countries as some firms try to choose minimizing taxes as a transfer pricing strategy. This chapter demonstrates how to apply the fuzzy set in international transfer pricing problems. Applications of Fuzzy Set to Other Business Decision are also discussed in some detail.
This paper investigates Japanese bank managers’ use of the discretionary component of loan loss p... more This paper investigates Japanese bank managers’ use of the discretionary component of loan loss provisions to manage earnings during the recession of the late 25 1990s. Although studies of US banks document that bank managers use loan loss provisions to smooth earnings, manage regulatory capital, and signal undervalua27 tion, factors that may affect discretionary loan loss provisions in Japanese banks have not been empirically examined. We find that discretionary loan loss provisions 29 for our sample of Japanese banks are positively related to the demand for external financing, realized securities gains, and prior year taxes and are negatively related 31
Review of Pacific Basin Financial Markets and Policies, 2021
Directors’ monitoring and advising activities as agents were supposed to increase after the Dodd-... more Directors’ monitoring and advising activities as agents were supposed to increase after the Dodd-Frank Act in 2010. The Dodd-Frank Act significantly increases the pressure on the board of directors to be more effective agents of the stockholders even after the Sarbanes-Oxley Act (2002) became effective. Director compensation, especially incentive-based compensation, is intended to align with the interests of shareholders and motivate director behavior. This paper empirically tests how banks respond to the Dodd-Frank Act by redesigning their director compensation plans. Our findings suggest that banks recognize the need for improved board monitoring by highlighting the importance of director workload and qualifications through the design of director compensation packages in the post-Dodd-Frank Act period. We also find that the negative impact of excessive director equity compensation on firm performance was attenuated after the passage of the Dodd-Frank Act. The findings of this stud...
OBJECTIVE: This study evaluated attitude of physicians toward formularies as well as services pro... more OBJECTIVE: This study evaluated attitude of physicians toward formularies as well as services provided by the pharmacy department in a large independent practice association (IPA). METHODS: Surveys (n ϭ 280) were sent to all practitioners in the IPA. The survey requested information on physician use of and satisfaction with the existing printed formulary quick list, their satisfaction with the pharmacy services, and their attitude towards formularies in general using a five-point strongly agreestrongly disagree scale. We received 90 completed surveys with a response rate of 32%. RESULTS: Majority of respondents were staff physicians (87%). Around 31% indicated pediatrics as their specialization followed by family medicine (17%) and internal medicine (17%). Practitioners who indicated that they had received the formulary quick list (37%) were highly satisfied (3.44 Ϯ 0.84) with it. Practitioners were very satisfied with the performance (4.27 Ϯ 0.79), interaction (4.35 Ϯ 0.81), and services offered (4.21 Ϯ 0.79) by the pharmacies. Their attitude towards pharmacist playing a more active role in patient care was positive (3.54 Ϯ 0.98). However, their attitude towards formularies in general was negative. They agreed that formularies increased the amount of time spent making drug choices (4.01 Ϯ 1.1), limited access to the best medicines for patients (3.63 Ϯ 0.88), resulted in less-effective medicines (3.01 Ϯ 0.99), compromised the quality of drugs prescribed (3.36 Ϯ 0.92), and reduced the opportunities to offer the best medication for patients (3.43 Ϯ 0.82). CONCLUSION: Physicians had negative attitude towards formularies in general. However, they were satisfied with the services offered by pharmacists, and they were positive towards more patient care involvement by the pharmacists. Physicians were also satisfied with the formulary quick list offered by the pharmacy department. A plan was developed to provide practitioners with an interactive, intranetbased reference of medications that would assist in prescribing decisions.
This study proposes using multiple criteria quadratic programming (MCQP) and other data mining ap... more This study proposes using multiple criteria quadratic programming (MCQP) and other data mining approaches to predict auditor changes with early adopters of the Sarbanes-Oxley Act (SOX). It compares 2003-2004 U.S. firm data with data from 2005-2006 to measure the SOX effect on firms that voluntarily adopted this new regulation nearly (other than the size of the business). The results of the MCQP and other data mining approaches in this auditor change prediction study show that the MCQP method performs marginally better than other data mining approaches using financial and other data to predict auditor changes. In addition, the early SOX effect is not significant empirically using the auditor change prediction model of comparing the prediction rates of early adopters vs. those of later adopters.
Our study extends previous research that uses financial distress factors in predicting auditor ch... more Our study extends previous research that uses financial distress factors in predicting auditor changes by evaluating the effectiveness of the traditional discriminant analysis model, not used in previous auditor change studies, and by highlighting the importance of evaluating the likelihood that data mining approach classification results occurred by chance. Significance of individual predictor variables, as well as of the full set of 13 financial variables, can be tested using discriminant analysis. Kwak et al. (2011) document overall classification accuracy rates ranging from 61 to 63.5 percent for the four data mining models they compared but did not address whether these rates occurred by chance. Using Kwak et al.s (2011) data set of firms changing auditors in 2007 or 2008 and matching non-auditor change firms, our discriminant analysis test results show overall accuracy rates of less than 56 percent and true positive rates over 85 percent, but these rates are influenced by a di...
Our study evaluates a multiple criteria linear programming (MCLP) and other data mining approache... more Our study evaluates a multiple criteria linear programming (MCLP) and other data mining approaches to predict auditor changes using a portfolio of financial statement measures to capture financial distress. The results of the MCLP approach and the other data mining approaches show that these methods perform reasonably well to predict auditor changes using financial distress variables. Overall accuracy rates are more than 60 percent, and true positive rates exceed 80 percent. Our study is designed to establish a starting point for auditor-change prediction using financial distress variables. Further research should incorporate additional explanatory variables and a longer study period to improve prediction rates.
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