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Full-Text Articles in Business

Earnings Management And The Effect Of Earnings Quality In Relation To Stress Level And Bankruptcy Level Of Chinese Listed Firms, Feng Li, Indra Abeysekera, Shiguang Ma Apr 2012

Earnings Management And The Effect Of Earnings Quality In Relation To Stress Level And Bankruptcy Level Of Chinese Listed Firms, Feng Li, Indra Abeysekera, Shiguang Ma

Indra Abeysekera

This paper investigates the link between earnings management and earnings quality for the Chinese firms listed in the Shanghai and Shenzhen stock exchanges from 2003 to 2007. The earnings quality is measured by four separate earnings attributes: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. We find that the stressed/bankrupt firms prefer opportunistic earnings management; the non-stressed/non-bankrupt firms are more likely to choose more efficient earnings management than the stressed/non-bankrupt firms. We find that earnings management performs better than earnings quality in predicting future profitability. We also find that the earnings quality has deteriorated over the sample period; the …


Disproportional Ownership Structure And Pay–Performance Relationship: Evidence From China's Listed Firms, Jerry Cao, Xiaofei Pan, Gary Tian Apr 2012

Disproportional Ownership Structure And Pay–Performance Relationship: Evidence From China's Listed Firms, Jerry Cao, Xiaofei Pan, Gary Tian

Xiaofei Pan

This paper examines the impact of ownership structure on executive compensation in China's listed firms. We find that the cash flow rights of ultimate controlling shareholders have a positive effect on the pay–performance relationship, while a divergence between control rights and cash flow rights has a significantly negative effect on the pay–performance relationship. We divide our sample based on ultimate controlling shareholders' type into state owned enterprises (SOE), state assets management bureaus (SAMB), and privately controlled firms. We find that in SOE controlled firms cash flow rights have a significant impact on accounting based pay–performance relationship. In privately controlled firms, …


Managerial Compensation, Ownership Structure And Firm Performance In China's Listed Firms, Xiaofei Pan, Gary G. Tian, Shiguang Ma, Aelee Jun, Qingliang Tang Apr 2012

Managerial Compensation, Ownership Structure And Firm Performance In China's Listed Firms, Xiaofei Pan, Gary G. Tian, Shiguang Ma, Aelee Jun, Qingliang Tang

Aelee Jun

This paper investigates managerial compensation and its relationship with firm performance in China's listed firms. In China, the largest shareholder dominates other shareholders, controls the firm and therefore exercises substantial impacts on manager compensation. After controlling for other firm and industry characteristics, we find that manager remuneration is greater and pay-performance relation is stronger for privately-controlled firms than for state-controlled firms. We also document that state-controlled firms exercise performance-based manager incentive schemes, which is contrary to evidence found in some earlier studies. Our results also indicate that top executives in firms with a foreign ownership are more highly compensated, relative …


Financing Growth: New Issues By Australian Firms, 1920-1939, David Merrett, Simon Ville Apr 2012

Financing Growth: New Issues By Australian Firms, 1920-1939, David Merrett, Simon Ville

Simon Ville

An expanding economy, new technologies, and changing consumer preferences provided growth opportunities for firms in interwar Australia. This period saw an increase in the number of large-scale firms in mining, manufacturing, and a wide range of service industries. Firms unable to rely solely on retained earnings to fund expansion turned to the domestic stock exchanges. A new data set of capital raisings constructed from reports of prospectuses published in the financial press forms the basis for the conclusion that many firms used substantial injections of equity finance to augment internally generated sources of funds. That they were able to do …


Size Still Matters When Firms Choose Business Collaborators, Yu Zhang, Charles Harvie Apr 2012

Size Still Matters When Firms Choose Business Collaborators, Yu Zhang, Charles Harvie

Charles Harvie

Collaborate with peer-sized or larger-sized partner helps the firm to enhance its process, product quality, reputation, and market position. Therefore, when choosing collaborator, firms prefer peer-sized or lager-sized partners. Many empirical researches try to link the firm’s size with the performance and result of collaboration. However, there are still many debates. Instead of using the firm’s size, this paper use the compared size or size difference between collaborating firms to examine its influence on the performance of inter-firm collaboration. The results from qualitative case study and quantitative online survey in both Australia and China supported that size matters when firms …


Managerial Compensation, Ownership Structure And Firm Performance In China's Listed Firms, Xiaofei Pan, Gary G. Tian, Shiguang Ma, Aelee Jun, Qingliang Tang Mar 2012

Managerial Compensation, Ownership Structure And Firm Performance In China's Listed Firms, Xiaofei Pan, Gary G. Tian, Shiguang Ma, Aelee Jun, Qingliang Tang

Shiguang Ma

This paper investigates managerial compensation and its relationship with firm performance in China's listed firms. In China, the largest shareholder dominates other shareholders, controls the firm and therefore exercises substantial impacts on manager compensation. After controlling for other firm and industry characteristics, we find that manager remuneration is greater and pay-performance relation is stronger for privately-controlled firms than for state-controlled firms. We also document that state-controlled firms exercise performance-based manager incentive schemes, which is contrary to evidence found in some earlier studies. Our results also indicate that top executives in firms with a foreign ownership are more highly compensated, relative …


A Comparative Case Study Of The Internationalization Strategies Of Malaysian, Singaporean And Taiwanese Firms, Ah Ba Sim Jan 2012

A Comparative Case Study Of The Internationalization Strategies Of Malaysian, Singaporean And Taiwanese Firms, Ah Ba Sim

Faculty of Commerce - Papers (Archive)

Comparative empirical research on the internationalization strategies of Asian multinational enterprises (MNEs) from countries at different levels of development is lacking. This paper examines and analyzes the internationalization characteristics and strategies of MNEs from three Asian countries at two different levels of development. Primary data from matched sample firms from Malaysia (a fast developing economy) and Singapore and Taiwan (representing newly industrialized economies) in the textile and electronics industries are used for this study. The findings indicate some differences among the Malaysian, Singaporean and Taiwanese MNEs. These differences and their implications are examined. The empirical findings, particularly the contextual aspects …


Board Structure And Survival Of New Economy Ipo Firms, Nongnit Chancharat, Chandrasekhar Krishnamurti, Gary G. Tian Jan 2012

Board Structure And Survival Of New Economy Ipo Firms, Nongnit Chancharat, Chandrasekhar Krishnamurti, Gary G. Tian

Faculty of Commerce - Papers (Archive)

Research Question/Issue: This study examines the relevance of currently accepted best practice recommendations regarding board structure on the survival likelihood of new economy initial public offering companies. We argue that industry context determines governance outcomes.Research Findings/Insights: We study 125 Australian new economy firms listed between 1994 and 2002. Each firm is tracked until the end of 2007 for monitoring their survival. We find that board independence is associated with an increase in the likelihood of corporate survival. We also find that the benefits of board independence increase at a decreasing rate.Theoretical/Academic Implications: The standard best practice recommendation of board independence …