Search results for: Chen Wang

Authors: Shaomei Li, Yawen Wang, Chao Gao

Abstract:

To improve tracking drift which often occurs in adaptive tracking, an algorithm based on the fusion of tracking and detection is proposed in this paper. Firstly, object tracking is posed as a binary classification problem and is modeled by partial least squares (PLS) analysis. Secondly, tracking object frame by frame via particle filtering. Thirdly, validating the tracking reliability based on both positive and negative models matching. Finally, relocating the object based on SIFT features matching and voting when drift occurs. Object appearance model is updated at the same time. The algorithm cannot only sense tracking drift but also relocate the object whenever needed. Experimental results demonstrate that this algorithm outperforms state-of-the-art algorithms on many challenging sequences.

Keywords: object tracking, tracking drift, partial least squares analysis, positive and negative models matching

Procedia PDF Downloads 530

Authors: Y. Wang

Abstract:

The Traveling salesman problem (TSP) is NP-hard in combinatorial optimization. The research shows the algorithms for TSP on the sparse graphs have the shorter computation time than those for TSP according to the complete graphs. We present an improved iterative algorithm to compute the sparse graphs for TSP by frequency graphs computed with frequency quadrilaterals. The iterative algorithm is enhanced by adjusting two parameters of the algorithm. The computation time of the algorithm is O(CN_maxn²) where C is the iterations, N_max is the maximum number of frequency quadrilaterals containing each edge and n is the scale of TSP. The experimental results showed the computed sparse graphs generally have less than 5n edges for most of these Euclidean instances. Moreover, the maximum degree and minimum degree of the vertices in the sparse graphs do not have much difference. Thus, the computation time of the methods to resolve the TSP on these sparse graphs will be greatly reduced.

Keywords: frequency quadrilateral, iterative algorithm, sparse graph, traveling salesman problem

Procedia PDF Downloads 233

Authors: Zhaojun Wang, Zongdi Sun, Zhiyuan Liu

Abstract:

First of all, the carbon trading price and trading volume in Shanghai are transformed by Fourier transform, and the frequency response diagram is obtained. Then, the frequency response diagram is analyzed and the Blackman filter is designed. The Blackman filter is used to filter, and the carbon trading time domain and frequency response diagram are obtained. After wavelet analysis, the carbon trading data were processed; respectively, we got the average value for each 5 days, 10 days, 20 days, 30 days, and 60 days. Finally, the data are used as input of the Back Propagation Neural Network model for prediction.

Keywords: Shanghai carbon trading, carbon trading price, carbon trading volume, wavelet analysis, BP neural network model

Procedia PDF Downloads 391

Authors: Yi F. Wu, Ai Q. Li, Hao Wang

Abstract:

Taking a novel type of bridge bearings with the diameter being 100mm as an example, the theoretical analysis, the experimental research as well as the numerical simulation of the bearing were conducted. Since the normal compression-shear machines cannot be applied to the small-size bearing, an improved device to test the properties of the bearing was proposed and fabricated. Besides, the simulation of the bearing was conducted on the basis of the explicit finite element software ANSYS/LS-DYNA, and some parameters of the bearing are modified in the finite element model to effectively reduce the computation cost. Results show that all the research methods are capable of revealing the fundamental properties of the small-size bearings, and a combined use of these methods can better catch both the integral properties and the inner detailed mechanical behaviors of the bearing.

Keywords: ANSYS/LS-DYNA, compression shear, contact analysis, explicit algorithm, small-size

Procedia PDF Downloads 181

Authors: Chia-Hau Liu, Tai-Yue Wang

Abstract:

Traditional multivariate control charts assume that measurement from manufacturing processes follows a multivariate normal distribution. However, this assumption may not hold or may be difficult to verify because not all the measurement from manufacturing processes are normal distributed in practice. This study develops a new multivariate control chart for monitoring the processes with non-normal data. We propose a mechanism based on integrating the one-class classification method and the adaptive technique. The adaptive technique is used to improve the sensitivity to small shift on one-class classification in statistical process control. In addition, this design provides an easy way to allocate the value of type I error so it is easier to be implemented. Finally, the simulation study and the real data from industry are used to demonstrate the effectiveness of the propose control charts.

Keywords: multivariate control chart, statistical process control, one-class classification method, non-normal data

Procedia PDF Downloads 423

Authors: Jiangping Wang

Abstract:

This presentation describes the design and implementation of PaaS (platform as a service) cloud-based labs that are used in database-related courses to teach students practical skills. Traditionally, all labs are implemented in a desktop-based environment where students have to install heavy client software to access database servers. In order to release students from that burden, we have successfully deployed the cloud-based solution to support database-related courses, from which students and teachers can practice and learn database topics in various database courses via cloud access. With its development environment, execution runtime, web server, database server, and collaboration capability, it offers a shared pool of configurable computing resources and comprehensive environment that supports students’ needs without the complexity of maintaining the infrastructure.

Keywords: PaaS, database environment, e-learning, web server

Procedia PDF Downloads 268

Authors: Liming Chen, Baoxin Xu, Zhaoyun Ding, Bin Liu, Xianqiang Zhu

Abstract:

In the era of big data, public investors are faced with more complicated information related to investment decisions than ever before. To survive in the fierce competition, it has become increasingly urgent for investors to combine multi-source knowledge and evaluate the companies’ true value efficiently. For this, a rule-based ontology reasoning method is proposed to support steel companies’ value assessment. Considering the delay in financial disclosure and based on cost-benefit analysis, this paper introduces the supply chain enterprises financial analysis and constructs the ontology model used to value the value of steel company. In addition, domain knowledge is formally expressed with the help of Web Ontology Language (OWL) language and SWRL (Semantic Web Rule Language) rules. Finally, a case study on a steel company in China proved the effectiveness of the method we proposed.

Keywords: financial ontology, steel company, supply chain, ontology reasoning

Procedia PDF Downloads 134

Authors: Yu Chen, Seong-Jin Kim, Jaehoon Chung

Abstract:

High throughput cells counting and sizing are often required for biomedical applications. Here we report design, fabrication and validating of a micro-machined Coulter counter device with multiple-channel to realize such application for low cost. Multiple vertical through-holes were fabricated on a silicon chip, combined with the PDMS micro-fluidics channel that serves as the sensing channel. In order to avoid the crosstalk introduced by the electrical connection, instead of measuring the current passing through, the potential of each channel is monitored, thus the high throughput is possible. A peak of the output potential can be captured when the cell/particle is passing through the microhole. The device was validated by counting and sizing the polystyrene beads with diameter of 6 μm, 10 μm and 15 μm. With the sampling frequency to be set at 100 kHz, up to 5000 counts/sec for each channel can be realized. The counting and enumeration of MCF7 cancer cells are also demonstrated.

Keywords: Coulter counter, cell enumeration, high through-put, cell sizing

Procedia PDF Downloads 610

Authors: Xiang Li, Kui Chen, Bin Wu, Min Zhou

Abstract:

Sclareolide is made from sclareol by oxidiative synthesis and subsequent crystallization, while the crystallization mother liquor still contains 15%~30%wt of sclareolide to be reclaimed. With the reaction material of sclareol is provided as plant extract, many sorts of complex impurities exist in the mother liquor. Due to the difficulty in recycling sclareolide after solvent recovery, it is common practice for the factories to discard the mother liquor, which not only results in loss of sclareolide, but also contributes extra environmental burden. In this paper, a process based on adsorption and elution has been presented for recycling of sclareolide from mother liquor. After pretreatment of the crystallization mother liquor by HZ-845 resin to remove parts of impurities, sclareolide is adsorbed by HZ-816 resin. The HZ-816 resin loaded with sclareolide is then eluted by elution solvent. Finally, the eluent containing sclareolide is concentrated and fed into the crystallization step in the process. By adoption of the recycle from mother liquor, total yield of sclareolide increases from 86% to 90% with a stable purity of the final sclareolide products maintained.

Keywords: sclareolide, resin, adsorption, chromatography

Procedia PDF Downloads 239

Authors: Chung-Chih Lin, Wen-Teng Wang, Chin-Chiuan Kuo, Chieh-Liang Wu

Abstract:

The state of melt viscosity in injection process is significantly influenced by the setting parameters due to that the shear rate of injection process is higher than other processes. How to determine plastic melt viscosity during injection process is important to understand the influence of setting parameters on the melt viscosity. An apparatus named as pressure sensor bushing (PSB) module that is used to evaluate the melt viscosity during injection process is developed in this work. The formulations to coupling melt viscosity with fill time and injection pressure are derived and then the melt viscosity is determined. A test mold is prepared to evaluate the accuracy on viscosity calculations between the PSB module and the conventional approaches. The influence of melt viscosity on the tensile strength of molded part is proposed to study the consistency of injection quality.

Keywords: injection molding, melt viscosity, tensile test, pressure sensor bushing (PSB)

Procedia PDF Downloads 480

Authors: Jun Liu, Feihang Zhou, Gungyi Wang

Abstract:

This paper expounds on the direct-driven PMSG wind power system control strategy, and analyses the stability conditions of the system. The direct-driven PMSG wind power system may generate the intense mechanical vibration, when wind speed changes dramatically. This paper proposes a new type of torque control strategy, which increases the system damping effectively, mitigates mechanical vibration of the system, and enhances the stability conditions of the system. The simulation results verify the reliability of the new torque control strategy.

Keywords: damping, direct-driven PMSG wind power system, mechanical vibration, torque control

Procedia PDF Downloads 333

Authors: Ying-Chu Chen

Abstract:

Waste to energy (WTE) technology is becoming increasingly important throughout the world. There are 24 WTE plants in operation in Taiwan that might be ranked the top in density (number of MSW incinerators/area) in the world. Many problems exist in WTE plants, such as low-quality construction, leakage of pipelines, irregular feedings, and lack of maintenance. These problems should be identified and analyzed for effective implementation and efficient operation of WTE plants. This research applies a fault tree analysis (FTA) to identify failures and evaluate their effects on the operation of WTE plants from a technical point of view. Five subsystems of a WTE plant were defined, including loading system, incineration system, effluent disposal system, structural components, and control system. This research results proved that FTA is suitable for WTE evaluation and is an effective analysis tool for technical evaluation in the field of WTE technology.

Keywords: delphi method, fault tree approach, municipal solid waste, waste to energy, WTE

Procedia PDF Downloads 567

Authors: Razzaghifard P., Arya F., Chen S. Chien-I, Abdi B., Razzaghifard V., Arya A. H., Nazary A., Hosseinpour H., Ghabelnezam K.

Abstract:

E-learning, also known as online learning, has indicated increased growth in recent years. One of the critical factors in the successful application of e-learning in higher education is students’ perceptions towards it. The main purpose of this paper is to investigate the perceptions of engineering students about e-learning in the UK. For the purpose of the present study, 145 second-year engineering students were randomly selected from the total population of 1280 participants. The participants were asked to complete a questionnaire containing 16 items. The data collected from the questionnaire were analyzed through the Statistical Package for Social Science (SPSS) software. The findings of the study revealed that the majority of participants have negative perceptions of e-learning. Most of the students had trouble interacting effectively during online classes. Furthermore, the majority of participants had negative experiences with the learning platform they used during e-learning. Suggestions were made on what could be done to improve the students’ perceptions of e-learning.

Keywords: e-learning, higher, education, engineering education, online learning

Procedia PDF Downloads 122

Authors: Liang Zhao, Guangwen Wang, Guichang Liu

Abstract:

Constant potometer is an important component of pipeline anti-corrosion systems in the chemical industry. Based on Internet of Things (IoT) technology, Programmable Logic Controller (PLC) technology and database technology, this paper developed a set of a constant potometer remote monitoring management system. The remote monitoring and remote adjustment of the working status of the constant potometer are realized. The system has real-time data display, historical data query, alarm push management, user permission management, and supporting Web access and mobile client application (APP) access. The actual engineering project test results show the stability of the system, which can be widely used in cathodic protection systems.

Keywords: internet of things, pipe corrosion protection, potentiostat, remote monitoring

Procedia PDF Downloads 147

Authors: Chen Jun

Abstract:

This study investigates the impact of family involvement, a pivotal factor shaping the management structure of family firms, on the firm’s innovation outputs. The independent variable focuses on the percentage number of family members serving as directors, supervisors and senior management. Our hypothesis suggests that family involvement tends to make management more conservative, thereby increasing the likelihood of impeding innovation investments and resulting in adverse effects on innovation output. Our findings reveal that Chinese family firms with high family involvement exhibit poorer innovation outputs compared to those with lower family involvement. Subsample analyses indicate that this negative influence of family involvement on innovation output is strengthened as the firm faces higher industry competition and a low marketization context. The findings of our paper contribute to the literature on family involvement by empirically illustrating how family involvement hinders innovation efforts and performance in Chinese family firms.

Keywords: family firm, family involvement, firm innovation, Chinese family firm

Procedia PDF Downloads 64

Authors: M. Asato, C. Liu, N. Fujima, T. Hoshino, Y. Chen, T. Mohri

Abstract:

We study the temperature dependence of the interaction energies (IEs) of X (=Ru, Rh) impurities in Pd, due to the Fermi-Dirac (FD) distribution and the thermal vibration effect by the Debye-Grüneisen model. The n-body (n=2~4) IEs among X impurities in Pd, being used to calculate the internal energies in the free energies of the Pd-rich PdX alloys, are determined uniquely and successively from the lower-order to higher-order, by the full-potential Korringa-Kohn-Rostoker Green’s function method (FPKKR), combined with the generalized gradient approximation in the density functional theory. We found that the temperature dependence of IEs due to the FD distribution, being usually neglected, is very important to reproduce the X-concentration dependence of the observed solvus temperatures of the Pd-rich PdX (X=Ru, Rh) alloys.

Keywords: full-potential KKR-green’s function method, Fermi-Dirac distribution, GGA, phase diagram of Pd-rich PdX (X=Ru, Rh) alloys, thermal vibration effect

Procedia PDF Downloads 275

Authors: Shen Jian, Hu Jie, Qi Jin, Liu Wei Jie, Chen Ji Yi, Peng Ying Hong

Abstract:

In order to settle the problem of acquiring case in biological related to design problems, a biometrics instance acquisition method based on text mining is presented. Through the construction of corpus text vector space and knowledge mining, the feature selection, similarity measure and case retrieval method of text in the field of biology are studied. First, we establish a vector space model of the corpus in the biological field and complete the preprocessing steps. Then, the corpus is retrieved by using the vector space model combined with the functional keywords to obtain the biological domain examples related to the design problems. Finally, we verify the validity of this method by taking the example of text.

Keywords: text mining, vector space model, feature selection, biologically inspired design

Procedia PDF Downloads 262

Authors: Wan Wang, Xing Li

Abstract:

With the international river playing an increasingly important role in international relations, the border river between China and Russia has attracted more attention. During the history of Sino-Russian relations, Heilong-Amur River used to be a disputed border. The Sino-Russian transboundary water cooperation regarding the Heilong-Amur River started in 1950s and has obtained rapid improvement. In the 21st century, this cooperation has made substantial progress, which is worthy of a further study. However, this cooperation is facing with obstacles in aspects of economy, policy, implementation and mutual understandings. Under this circumstance, from the perspective of China, it is of necessity to realize these problems and take appropriate measures to promote the cooperation. The current Sino-Russian relations is conducive to transboundary water resources cooperation regarding the Heilong-Amur River and some measures adopted by China are already ongoing.

Keywords: China, cooperation, Heilong-Amur River, Russia

Procedia PDF Downloads 377

Authors: Hao Xiaohong, Wu Zongxiang, Chen Xuefeng

Abstract:

With the high power density and high integration of electronic devices, their heat flux has been increasing rapidly. Therefore, an effective cooling technology is essential for the reliability and efficient operation of electronic devices. Liquid cooling is studied increasingly widely for its higher heat transfer efficiency. Serpentine channels are superior in the augmentation of single-phase convective heat transfer because of their better channel velocity distribution. In this paper, eight different frame sizes water-cooled serpentine channel heat sinks are designed to study the heat transfer and pressure drop characteristics. With water as the working fluid, experiment setup is established and the results showed the effect of different channel width, fin thickness and number of channels on thermal resistance and pressure drop.

Keywords: heat transfer, experiment, serpentine heat sink, pressure drop

Procedia PDF Downloads 455

Authors: K. Y. Chen, H. Chua, C. W. Kan

Abstract:

In this study, we will analyze Germany’s environmental situation such as water and air quality and review its environmental policy. In addition, we will collect the yearly environmental data as well as information concerning public environmental investment. Based on the data collect, we try to find out the relationship between public environmental investment and sustainable development in Germany. In addition, after comparing the trend of environmental quality and situation of environmental policy and investment, we may have some conclusions and learnable aspects to refer to. Based upon the data collected, it was revealed that Germany has established a well-developed institutionalization of environmental education. And the ecological culture at school is dynamic and continuous renewal. The booming of green markets in Germany is a very successful experience for learning. The green market not only creates a number of job opportunities, but also helps the government to improve and protect the environment. Acknowledgement: Authors would like to thank the financial support from the Hong Kong Polytechnic University for this work.

Keywords: Germany, public environmental investment, environment quality, sustainable development

Procedia PDF Downloads 252

Authors: Chen Xi, LIU Xuebin, Kuan Sinman, LI Haofeng, Huang Hongming, Zeng Chengyu, Lao Xuerui

Abstract:

Stray animals are on the rise in mainland China's cities. There are legal reasons for this, namely the lack of protection for domestic pets in mainland China, where only wildlife protection laws exist. At a social level, the ease with which families adopt pets and the lack of a social view of animal nature have led to the frequent abandonment and loss of stray animals. If left unmanaged, conflicts between humans and stray animals can also increase. This project provides an inexpensive and widely applicable management tool for urban management by collecting videos and pictures of stray animals captured by surveillance or transmitted by humans and using artificial intelligence technology (mainly using Yolov5 recognition technology) and recording and managing them in a database.

Keywords: urban planning, urban governance, artificial intelligence, convolutional neural network, machine vision

Procedia PDF Downloads 99

Authors: Xinyi Gao, Xiaoyun Feng, Ruijie Liu, Yumin Xia, Min Shao, Xinqing Wang

Abstract:

This paper outlines the travel challenges, the absence of society, and studies around disabled women and chooses the Chongqing area as a case study to explore how terrain characteristics and city construction influence our subject's travel choice. It also highlights future transport options and the necessity of addressing the difficult travel position of women with disabilities. This study focuses on the travel demands of women with disabilities, illustrating what their ideal method of travel would be. An analysis of related smart cities like Hong Kong illustrates the aspects to consider in the reconstruction of Chongqing. Finally, relying on current smart city modelling approaches, several design ideas for assistive tools are suggested for the safety of women with disabilities during travel.

Keywords: future smart city, disabled women, Chongqing, inclusive design, human-computer interaction

Procedia PDF Downloads 120

Authors: Sajidullah Khan, Najeeb Ullah, Wang Yin Chai, Chai Soo See

Abstract:

In this paper, we propose an approach to remove impulse and Poisson noise from X-ray images. Many filters have been used for impulse noise removal from color and gray scale images with their own strengths and weaknesses but X-ray images contain Poisson noise and unfortunately there is no intelligent filter which can detect impulse and Poisson noise from X-ray images. Our proposed filter uses the upgraded layer discrimination approach to detect both Impulse and Poisson noise corrupted pixels in X-ray images and then restores only those detected pixels with a simple efficient and reliable one line equation. Our Proposed algorithms are very effective and much more efficient than all existing filters used only for Impulse noise removal. The proposed method uses a new powerful and efficient noise detection method to determine whether the pixel under observation is corrupted or noise free. Results from computer simulations are used to demonstrate pleasing performance of our proposed method.

Keywords: X-ray image de-noising, impulse noise, poisson noise, PRWF

Procedia PDF Downloads 383

Authors: Ying Sun, Ji-wu Wang

Abstract:

The establishment of a city is the result of the accumulation of local historical and cultural heritage and the sublimation of settlements. Take history as a mirror, it’s known how the things rise and fall. Based on the perspective of history, the development of the ancient city of Wenzhou was combed, and the urban development history of Wenzhou in 2200 could be divided into seven stages. This paper mainly studies the four stages of germination, formation, initial development and tortuous development, explores the external and internal driving forces of urban development and the structural evolution of urban layout, and discusses how the ancient Wenzhou evolved from a remote town to an important coastal port city. This paper finds that the most important factors affecting the development of ancient cities in Wenzhou are war, policy and geographical environment, and then points out the importance of urban policies to the rise and fall of cities.

Keywords: ancient city development, history, Wenzhou city, city policy

Procedia PDF Downloads 137

Authors: Bian ChengXiang, Wang Qian

Abstract:

With the deepening of the research on the connotation of cultural heritage and human geography, the cultural landscape takes landscape as a cultural product, integrates and blends cultural and natural heritage to explore the cultural value behind its material landscape. Qikou ancient town is a typical traditional settlement with a homomorphism of mountain and water veins. Its cultural accumulation and natural landscape play an important role in its development. Therefore, this paper will combine the material and cultural elements of Qikou ancient town to analyze the composition of the cultural landscape of the ancient town and explore the protection and utilization of the cultural landscape of Qikou ancient town from the four aspects of ecology, form, cultural form, and business form, so as to provide effective strategies for the development of the ancient town.

Keywords: four state, cultural landscape, ancient town, protection, development

Procedia PDF Downloads 136

Authors: Weidong Fu, Qingsong Wang, Wei Hua, Ming Cheng, Giuseppe Buja

Abstract:

A single-phase transformerless electric energy router (TL-EER) is proposed for renewable energy management and power quality improvement in smart homes. The proposed TL-EER only contains four semiconductor switching devices, which reduces costs greatly compared to traditional electric energy routers. TL-EER functions as intelligent systems that optimize the flow and distribution of energy within a grid, enabling seamless interaction between generation, storage, and consumption. In addition, TL-EER operates in multiple modes and could be converted to diverse topologies by changing the states of relays. As for power quality, voltage and current compensating methods are adapted. Thus, high-quality electrical energy could be transferred to the load, and the grid-side power factor could be improved. Finally, laboratory prototypes are established to validate the effectiveness of the system.

Keywords: transformerless, electric energy router, power flow, power quality, power factor

Procedia PDF Downloads 10

Authors: Melissa Vang, Raheyma Khan, Haihua Chen

Abstract:

The coronavirus disease 2019 (COVID‐19) pandemic has changed people's lives from all over the world. More people have turned to Twitter to engage online and discuss the COVID-19 vaccine. This study aims to present a text mining approach to identify people's attitudes towards the COVID-19 vaccine on Twitter. To achieve this purpose, we collected 54,268 COVID-19 vaccine tweets from September 01, 2020, to November 01, 2020, then the BERT model is used for the sentiment and topic analysis. The results show that people had more negative than positive attitudes about the vaccine, and countries with an increasing number of confirmed cases had a higher percentage of negative attitudes. Additionally, the topics discussed in positive and negative tweets are different. The tweet datasets can be helpful to information professionals to inform the public about vaccine-related informational resources. Our findings may have implications for understanding people's cognitions and feelings about the vaccine.

Keywords: BERT, COVID-19 vaccine, sentiment analysis, topic modeling

Procedia PDF Downloads 151

Authors: Wen Huei Chou, Yi-Ting Chen

Abstract:

Individuals with Autism Spectrum Disorder (ASD) often struggle with social interactions and communication. It is challenging for them to understand social cues such as facial expressions, body language, and tone of voice in social settings, leading to social conflicts and misunderstandings. Over time, feelings of frustration and anxiety can make them reluctant to engage in social situations and worsen their communication barriers. This study focused on children with autism who also experience social anxiety. Through focus group interviews with parents of children with autism and occupational therapists, it explores the reasons and scenarios behind the development of social anxiety in these children. Social scenario stories and interactive applications tailored for children with autism were designed and developed. In addition, working with the educational robots, coping strategies for various emotional situations were elaborated on, and children were helped to understand their emotions.

Keywords: autism spectrum disorder, social anxiety, robot, social scenario story, interactive applications

Procedia PDF Downloads 100

Authors: Pei-Chun Lee, Sheng-Shih Wang

Abstract:

This paper presents a route guidance system for car owners to find their cars in parking garages. The presents system comprises a positioning-assisting subsystem and a car-finding mobile app. The positioning-assisting subsystem mainly uses the iBeacon technology for indoor positioning. The car-finding mobile app guides car owners to their cars based on a non-map navigation strategy. This study also designs a virtual coordinate system to support identifying the locations of parking spaces and iBeacon devices. We use Arduino and Android as the platforms to implement the proposed positioning-assisting subsystem and car-finding mobile app, respectively. We have also deployed the system in a parking garage in our campus for testing. Experimental results verify that our system can efficiently and correctly guide car owners to the parking spaces of their cars.

Keywords: guidance, iBeacon, mobile app, navigation

Procedia PDF Downloads 646

Authors: Pei-Gi Shu, Yin-Hua Yeh, Chao-Ting Chen

Abstract:

Using a dataset consisting of 7,120 firm-year observations from the Taiwan stock market over the 2007-2011 sample period, we find a significantly negative relationship between board external connectedness and firm diversification. We propose a learningeffect hypothesis indicating that an externally connected board member’s experiences in other companies directly affect his recommendations regarding the underlying firm’s diversification. The partial correlation between diversification and the performance of firms with externally connected board members is used as a proxy for the learning effect. The empirical results show that the learning effect is asymmetrically embedded in firm diversification, with negative experiences having a greater effect on firm diversification than positive experiences. Externally connected board members are associated with reduced diversification in one firm after they learn that diversification is detrimental to value in other companies. Moreover, the diversification of a firm due to board external connectedness is moderated by the controlling owner’s interest alignment and entrenchment.

Keywords: board, external, connectedness, diversification

Procedia PDF Downloads 462