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with the speeding-up with taiwan''s international process, the
totally advertising billings have also increased significantly
and the international client is playing an more and more
important role in todat''s ad industry. Some sholars report that
the relationship betwwen ad agency-client relationship is not
very stable and the switching of their ad agency incur huge
costs for both party . Given the prospects of mutually
destructive lose-lose situations , establishing the causes of
diaaffection in agency-client relations has great academic
merits. Yet so far a regorous, well-defined scholarly study in
this area is hard to find. this study intends to base its
concetual framwork on the transaction cost theories to develop
simplified models to capture the essence of client-agency
relationships . Empirical work is conducted using survey data
as perceived by foreign subsidiaries that might exert
influences on termination of accounts. this study use the event
history analysis to test the effects of hypothesized
regressions . the communication/coordination cost and
reputation effect do significantly influence the instability of
the ad agency-client relationships.
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