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The purpose of this paper is to investigate the impact of market liberalization programs on firms' exchange‐rate exposure. We consider, in particular, the effects of the timing of the three liberalization events through which the government of Taiwan carried out explicit policies to gradually open its foreign exchange and stock markets. Although we cannot corroborate that most exporting firms are individually exposed to exchange‐rate risk, we cannot, however, reject that the exporting firms are jointly exposed to exchange‐rate risk in all sub‐periods. Furthermore, we find that Taiwanese exporting firms are greatly affected by timing of the three liberalization events.

This paper explores dividend announcements based on information hypothesis. We explore in particular whether or not information signaling theory existed in Taiwan. We also explore the free cash flow hypothesis. In order to eliminate affecting factors, we target companies with irregular dividends as research samples, just like those with specially designated dividends (SDD). We examine whether or not those proceeds may be deemed as future earnings prospection. In this paper we study mainly dividend announcements made during stockholder’s meetings of the companies listed in the Taiwan Stock Exchange (TSE) or R.O.C. Over-the-Counter Securities Exchange (ROSE). We apply event study as means of analyzing abnormal returns of the companies. In addition we use the GARCH model with traditional ordinary least square to estimate the market model. The results indicate that SDDs are considered positive signals by the national exchange, TSE. In addition, we also show that the first-time SDD does transmit a positive signal to the market regarding the firm’s future cash flow, and that the SDD of no payment in the previous three years is negative. Furthermore, we prove that low Q firms have greater market reaction than high Q firms in announcement period. The free cash flow hypothesis and firm size effects could not be verified in Taiwan.

Heavy debt burdens and corruption have not only had a debilitating effect on development but also undermined efforts at economic recovery and market‐enhancing initiatives in many African countries. Africa is the world’s most aid‐dependent and indebted region of the world. Much of the resources that could have been ploughed into investments are used to service debts and/or misappropriated by corrupt leaders – with all the attendant negative perceptions of Africa’s business environment. Therefore, in developing a “business plan” for Africa’s economic renascence, corruption and debt management and mismanagement (by both lenders and borrowers) need to be put squarely on the agenda. Against the backdrop of the currency of opinion for debt relief, this paper highlights the institutional processes that underlie the misallocation and misappropriation of original receipts, policy dynamism of their management and the overall market impact.