Don Lien - Academia.edu (original) (raw)

Papers by Don Lien

Presented at the 2019 AAA Annual MeetingWe examine how the threat of losing income tax-exemption ... more Presented at the 2019 AAA Annual MeetingWe examine how the threat of losing income tax-exemption affects nonprofit hospitals’ uncompensated care misreporting behavior when the hospitals (i) are required to provide charity care subject to a minimum threshold in exchange of keeping the tax-exemption, (ii) are partially reimbursed for their bad debts, and (iii) can misrepresent their privately observed information regarding bad debts and charity care provided. Two different regimes of charity care thresholds are evaluated. Our model illustrates that an optimal charity care threshold policy does exist in certain situations. These findings may be used in future research to empirically examine specific hospital and manager behavi

This article uses a panel data of international student flows to China from 2000–2014 to investig... more This article uses a panel data of international student flows to China from 2000–2014 to investigate Confucius Institute (CI)’s effects on China’s educational service exports. We find that CI, as a comprehensive platform for promoting Chinese language and cultural exchange, has a significant positive effect on China’s education exports. The effects of CI on China’s education exports are transmitted through promoting Chinese language, bridging cultural gaps, and reducing psychic distance. We further find that the effects of CI on China’s education exports are heterogeneous, depending on the level of cultural difference and institutional quality in the host country. The effects of CI to boost international student flows to China are more prominent in host countries with smaller cultural difference or lower institutional quality. Furthermore, the effects of cultural difference and institutional quality exhibit distinct patterns, hinging on the types of student flows

Applied Economics

This paper uses a panel data of China's inbound tourist flows from 2005-2015 to investigate Confu... more This paper uses a panel data of China's inbound tourist flows from 2005-2015 to investigate Confucius Institute (CI)'s influence on China's tourism. We find that CI, as a comprehensive platform for China's foreign cultural exchange, has a significant positive effect on China's tourist flows. The effects of CI on China's inbound tourism are transmitted through bridging cultural gaps and promoting Chinese language which reduces psychic distance and transaction costs. CI also stimulates China's inbound tourist flows via reducing information asymmetry caused by different levels of institutional quality. Interestingly, we find that the heterogeneous effects of CI on China's inbound tourism depend on institutional quality, and the effects of CI to boost China's tourists are more prominent in departure countries with larger cultural difference.

Annals of Financial Economics, 2012

Using data from 1,217 publicly traded Chinese companies from 1994–2006, we show that the capital ... more Using data from 1,217 publicly traded Chinese companies from 1994–2006, we show that the capital financing behavior of Chinese firms deviates substantially from the pecking order theory in that equity issues are always the preferred financing source for funding requirements. We further document the existence of a stylized asymmetric financing pattern — equity issues are used much more heavily over debt issues under the condition of a fund flow surplus versus a fund flow deficit, which is the result of Chinese firms selecting the degree of inherent equity-issue preference feasible to pursue given their fund flow condition.

Handbook of Financial Econometrics and Statistics, 2014

The North American Journal of Economics and Finance, 2014

The North American Journal of Economics and Finance, 2013

This paper provides a theoretical analysis of the financial effects of Confucius Institutes (CIs)... more This paper provides a theoretical analysis of the financial effects of Confucius Institutes (CIs) on the number of individuals who acquire Chinese language skills and the interactions between CIs and preexisting local Chinese schools. It is shown that CIs will successfully induce more individuals in the host countries to learn Chinese despite the fact that Chinese language instruction offered by CIs lead to fewer self-learning individuals and declining enrollments for local Chinese schools. Finally, regardless of whether a local Chinese school exists previously or not, it is demonstrated that, under the most plausible conditions, the host country will benefit from the establishment of a Confucius Institute.

The Hague Journal of Diplomacy

Summary The purpose of this essay is to discuss the ramifications of the 2020 COVID-19 pandemic o... more Summary The purpose of this essay is to discuss the ramifications of the 2020 COVID-19 pandemic on the future of the World Health Organization (WHO). In particular, the WHO has come under fire for its initial response and reporting of the pandemic, its acceptance of Chinese self-reporting and management of the crisis and dubious claims that it failed to acknowledge and respond to data from Taiwan that indicated human–to-human transmission was occurring. These alleged missteps have brought unwanted and intense international scrutiny on the organisation and have, perhaps, left its future uncertain. This essay examines the history and mandate of the WHO, its vulnerability to national and regional political movements and some likely outcomes for the near- and long-term future. Additionally, it briefly addresses how the WHO is used as a diplomatic surrogate for the UN, especially in matters relating to Taiwan.

Http Dx Doi Org 10 1080 09603107 2014 941530, Aug 8, 2014

ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a s... more ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a significant factor in the volatility generating process of their largest component stocks. A simple model of trading is developed for securities that are included in ETFs, and empirical support is provided for the model hypotheses. Volatility spillovers from ETFs to their largest component stocks are economically significant. These spillovers are increasing in liquidity, the proportion of each stock held by the fund, deviations from net asset value, ETF flow of funds and ETF market capitalization. The results are consistent with a positive volume–volatility relation and trading-based explanations of volatility, and are generally stronger for smaller stocks.

Http Dx Doi Org 10 1080 09603107 2014 941530, Aug 8, 2014

ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a s... more ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a significant factor in the volatility generating process of their largest component stocks. A simple model of trading is developed for securities that are included in ETFs, and empirical support is provided for the model hypotheses. Volatility spillovers from ETFs to their largest component stocks are economically significant. These spillovers are increasing in liquidity, the proportion of each stock held by the fund, deviations from net asset value, ETF flow of funds and ETF market capitalization. The results are consistent with a positive volume–volatility relation and trading-based explanations of volatility, and are generally stronger for smaller stocks.

Presented at the 2019 AAA Annual MeetingWe examine how the threat of losing income tax-exemption ... more Presented at the 2019 AAA Annual MeetingWe examine how the threat of losing income tax-exemption affects nonprofit hospitals’ uncompensated care misreporting behavior when the hospitals (i) are required to provide charity care subject to a minimum threshold in exchange of keeping the tax-exemption, (ii) are partially reimbursed for their bad debts, and (iii) can misrepresent their privately observed information regarding bad debts and charity care provided. Two different regimes of charity care thresholds are evaluated. Our model illustrates that an optimal charity care threshold policy does exist in certain situations. These findings may be used in future research to empirically examine specific hospital and manager behavi

This article uses a panel data of international student flows to China from 2000–2014 to investig... more This article uses a panel data of international student flows to China from 2000–2014 to investigate Confucius Institute (CI)’s effects on China’s educational service exports. We find that CI, as a comprehensive platform for promoting Chinese language and cultural exchange, has a significant positive effect on China’s education exports. The effects of CI on China’s education exports are transmitted through promoting Chinese language, bridging cultural gaps, and reducing psychic distance. We further find that the effects of CI on China’s education exports are heterogeneous, depending on the level of cultural difference and institutional quality in the host country. The effects of CI to boost international student flows to China are more prominent in host countries with smaller cultural difference or lower institutional quality. Furthermore, the effects of cultural difference and institutional quality exhibit distinct patterns, hinging on the types of student flows

Applied Economics

This paper uses a panel data of China's inbound tourist flows from 2005-2015 to investigate Confu... more This paper uses a panel data of China's inbound tourist flows from 2005-2015 to investigate Confucius Institute (CI)'s influence on China's tourism. We find that CI, as a comprehensive platform for China's foreign cultural exchange, has a significant positive effect on China's tourist flows. The effects of CI on China's inbound tourism are transmitted through bridging cultural gaps and promoting Chinese language which reduces psychic distance and transaction costs. CI also stimulates China's inbound tourist flows via reducing information asymmetry caused by different levels of institutional quality. Interestingly, we find that the heterogeneous effects of CI on China's inbound tourism depend on institutional quality, and the effects of CI to boost China's tourists are more prominent in departure countries with larger cultural difference.

Annals of Financial Economics, 2012

Using data from 1,217 publicly traded Chinese companies from 1994–2006, we show that the capital ... more Using data from 1,217 publicly traded Chinese companies from 1994–2006, we show that the capital financing behavior of Chinese firms deviates substantially from the pecking order theory in that equity issues are always the preferred financing source for funding requirements. We further document the existence of a stylized asymmetric financing pattern — equity issues are used much more heavily over debt issues under the condition of a fund flow surplus versus a fund flow deficit, which is the result of Chinese firms selecting the degree of inherent equity-issue preference feasible to pursue given their fund flow condition.

Handbook of Financial Econometrics and Statistics, 2014

The North American Journal of Economics and Finance, 2014

The North American Journal of Economics and Finance, 2013

This paper provides a theoretical analysis of the financial effects of Confucius Institutes (CIs)... more This paper provides a theoretical analysis of the financial effects of Confucius Institutes (CIs) on the number of individuals who acquire Chinese language skills and the interactions between CIs and preexisting local Chinese schools. It is shown that CIs will successfully induce more individuals in the host countries to learn Chinese despite the fact that Chinese language instruction offered by CIs lead to fewer self-learning individuals and declining enrollments for local Chinese schools. Finally, regardless of whether a local Chinese school exists previously or not, it is demonstrated that, under the most plausible conditions, the host country will benefit from the establishment of a Confucius Institute.

The Hague Journal of Diplomacy

Summary The purpose of this essay is to discuss the ramifications of the 2020 COVID-19 pandemic o... more Summary The purpose of this essay is to discuss the ramifications of the 2020 COVID-19 pandemic on the future of the World Health Organization (WHO). In particular, the WHO has come under fire for its initial response and reporting of the pandemic, its acceptance of Chinese self-reporting and management of the crisis and dubious claims that it failed to acknowledge and respond to data from Taiwan that indicated human–to-human transmission was occurring. These alleged missteps have brought unwanted and intense international scrutiny on the organisation and have, perhaps, left its future uncertain. This essay examines the history and mandate of the WHO, its vulnerability to national and regional political movements and some likely outcomes for the near- and long-term future. Additionally, it briefly addresses how the WHO is used as a diplomatic surrogate for the UN, especially in matters relating to Taiwan.

Http Dx Doi Org 10 1080 09603107 2014 941530, Aug 8, 2014

ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a s... more ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a significant factor in the volatility generating process of their largest component stocks. A simple model of trading is developed for securities that are included in ETFs, and empirical support is provided for the model hypotheses. Volatility spillovers from ETFs to their largest component stocks are economically significant. These spillovers are increasing in liquidity, the proportion of each stock held by the fund, deviations from net asset value, ETF flow of funds and ETF market capitalization. The results are consistent with a positive volume–volatility relation and trading-based explanations of volatility, and are generally stronger for smaller stocks.

Http Dx Doi Org 10 1080 09603107 2014 941530, Aug 8, 2014

ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a s... more ABSTRACT Given the exponential growth in exchange-traded fund (ETF) trading, ETFs have become a significant factor in the volatility generating process of their largest component stocks. A simple model of trading is developed for securities that are included in ETFs, and empirical support is provided for the model hypotheses. Volatility spillovers from ETFs to their largest component stocks are economically significant. These spillovers are increasing in liquidity, the proportion of each stock held by the fund, deviations from net asset value, ETF flow of funds and ETF market capitalization. The results are consistent with a positive volume–volatility relation and trading-based explanations of volatility, and are generally stronger for smaller stocks.