Management Review

Vol.43 No.4, Oct. 2024

Robin K. Chou　Editor’s Note (excerpt)

This issue of Management Review contains three academic articles.

The first article, “Discuss the Effect of the Assets and Debts of the Subsidiary Attributed to the Non-controlling Interest on the Valuation of the Parent Company” was co-written by Hsueh-Fang Chien, Pei-Chen Hsieh, Shu-Hua Lee, and Yann-Ching Tsai. This study examines how investors value the part of the assets/debts of subsidiaries belongs to the parent company and the part belongs to the non-controlling interests. The sample of this study consists of the companies listed in Taiwan Stock Exchange from 2005 to 2021. This paper estimates the assets/debts of subsidiaries into the part belongs to the parent company and the part belongs to the non-controlling interests, use the information of the consolidated financial statements and the parent company only financial statements. The results of this study support the view of cash flow rights, and support that consolidated financial statements disclosing more information about non-controlling interests are more transparent and useful for investors to value the company.

The second article, “Transparency and Social Media Affordance” was co-written by Chih-Yuan Chou and Jun Huang. This study aims to investigate how social media communication affects individual performance by influencing members’ interactions from a transparency perspective. The authors distribute online questionnaires through multiple social media channels with hyperlinks or QR codes. The survey is conducted over one week, and a total of 383 valid responses are received. The results shows that perceived organizational prestige affects internal transparency and members’ individual performance through their interactive affection and social media’s positive role in the relationship between members’ interactive affection and internal transparency. While scholars have studied social media communication and transparency, little attention has been given to the effects of transparency and social media on organizational members.

The third article, “Does ESG/CSR Matter for Dividend Payouts? Analysis of Global Evidence”, was co-written by Hsiang-Hsuan Chih, Wen-Chuan Miao, and Yun-Jie Lu. This study analyzes the relationship between ESG/CSR and dividend policy in global companies using regression modeling, channel analysis, and endogeneity analysis, with data from Worldscope and Refinitiv’s ESG database. The results show that the company’s participation in ESG/CSR environmental activities generates profits for the company and has a high dividend payout ratio, which is also recognized by investors in the market. Covering a 20-year sample of 33 countries around the world, in addition to the overall ESG score, it also analyses the Environmental, Social, and Governance scores to measure the ESG/CSR performance of a company to determine the impact on dividend policy and to understand investor evaluations.