Business Commons^™

Family Control, Accounting Misstatements, And Market Reactions To Restatements: Evidence From China, Liangbo Ma, Shiguang Ma, Gary G. Tian

Faculty of Business - Papers (Archive)

We examine the impact of family control on the likelihood of accounting misstatements and on market reactions to subsequent restatements. Using a matched-firm approach, we find that family control overall reduces the incidence of misstatements, consistent with the notion that controlling families have a greater concern for reputation than nonfamily blockholders. However, compared to nonfamily firm restatements, restatements announced by family-controlled firms trigger significantly more negative market reactions. We attribute the more negative market reactions to the greater loss in reputation and higher investor scepticism of the credibility of corporate insiders for family firms than for nonfamily firms following restatements.

New Estimates Of Intergenerational Mobility In Australia, Silvia Mendolia, Peter M. Siminski

Faculty of Business - Papers (Archive)

We present new estimates of intergenerational earnings elasticity for Australia. We closely follow the methodology used by Leigh [BE Journal of Economic Analysis & Policy, 7 (2007) 1], but use considerably more data (12 waves of HILDA and four waves of PSID). Our adjusted estimates are intended to be comparable to those for other countries in Corak [Journal of Economic Perspectives, 27 (2013) 79]. Our preferred estimate (0.35) is considerably higher than implied by Leigh's study, and is less subject to sampling variation. In an international context, intergenerational mobility in Australia is not particularly high, and is consistent with its …

Four Steps To Realizing Business Value From Digital Data Streams, Abhijith Anand, Rajeev Sharma, Tim Coltman

Faculty of Business - Papers (Archive)

Based on four case studies and a follow-up survey, we have identified the key success factors for realizing value from DDS (digital data stream) investments. But managers need to pay attention to the combinations of success factors. A key finding is that value realization is improved when the agility of the resource allocation process is appropriate for the levels both of DDS platform maturity and of commitment from data-driven top management. We present a four-step sequence and a decision framework for putting the optimum combination of success factors in place.

Why Doesn't Our Branding Pay Off: Optimising The Effects Of Branding Through Innovation, Wai Jin J. Lee, Aron O'Cass, Phyra Sok

Faculty of Business - Papers (Archive)

Purpose:Recent branding failures (e.g. Kodak and Krispy Kreme) have cast considerable doubt on the widely accepted contention that to develop a strong brand, firms must continuously strive to be brand oriented or innovation oriented. This study aims to examine the curvilinear and interactive effects of brand orientation and innovation orientation on brand performance.

Design/methodology/approach: Survey data were drawn from a sample of 181 firms operating in the consumer goods sector (i.e. fashion, consumer electronics and automobile) and tested through a hierarchical regression analysis.

Findings: This study finds that the sole and exclusive focus on either brand orientation or innovation …

Endogenous Growth And Technological Progress With Innovation Driven By Social Interactions, Simone Marsiglio, Marco Tolotti

Faculty of Business - Papers (Archive)

We analyze the implications of innovation and social interactions on economic growth in a stylized endogenous growth model with heterogeneous research firms. A large number of research firms decide whether to innovate or not, by taking into account what competitors (i.e., other firms) do. This is due to the fact that their profits partly depend on an externality related to the share of firms which actively engage in research activities. Such a share of innovative firms also determines the evolution of technology in the macroeconomy, which ultimately drives economic growth. We show that when the externality effect is strong enough …

Housing Affordability, Central City Economic Productivity And The Lower Income Labour Market, Ryan Van Den Nouwelant, Laura Crommelin, Shanaka Herath, Bill Randolph

Faculty of Business - Papers (Archive)

The objective of this research was to establish whether the diminishing supply of affordable housing options for lower income (LI) workers near job-rich central city (CC) locations is having an impact on CC businesses and on the overall productivity of CC economies. The findings of the specific research questions are summarised here. The research comprised a review of census and other data as to the housing market position of the LICC labour force in five of Australia's key metropolitan areas (metros)-Perth, Darwin, Melbourne, Sydney and Brisbane-as well as a series of interviews with employers in Sydney's CC and an analysis …

Late Disclosure Of Insider Trades: Who Does It And Why?, Millicent M. Chang, Yilin Lim

Faculty of Business - Papers (Archive)

We attempt to understand the personal incentives that motivate corporate insiders to engage in unethical behavior such as delayed trade disclosure. Delayed disclosure affects corporate transparency and other shareholders in the firm potentially suffer investment losses because they are unaware of insiders' activities. Using archival data from the 300 largest Australian firms between 2007 and 2011, the results show that risk factors such as insider age and tenure and wealth effects in the form of insider shareholdings affect the likelihood of delayed reporting. Governance positions such as committee membership mitigate this behavior. Our study highlights the importance of considering individual …

The Informativeness Of Substantial Shareholder Trading In The Lead Up To A Takeover Bid, Millicent M. Chang, Raymond Da Silva Rosa, Wilson Ng

Faculty of Business - Papers (Archive)

Although substantial shareholders are often considered quasi-insiders, not much is known about the information they possess, especially around changes in corporate control events. We examine whether substantial shareholders in target firms possess information about future takeover activity and if they have such information, whether they trade opportunistically on it. The results show increased purchases by substantial shareholders close to a takeover announcement where these trades predict the likelihood of takeovers. However, they do not predict bid premiums nor other deal characteristics. A comparison of different types of substantial shareholders indicates that institutional shareholder trades are better indicators of takeover likelihood …

Knowledge Retention Through Low-Tech Knowledge Sharing Channels In Loosely-Coupled Networks: A Human-Based Approach, Rosemary A. Van Der Meer, Karlheinz Kautz

Faculty of Business - Papers (Archive)

This study examines a human-based approach for knowledge retention that is evolving through various knowledge sharing channels in a low-technology environment with a strong emphasis on social networks in a loosely-coupled inter-organisational government-industry collaboration focused on regional sustainability. Using social network analysis combined with interview and observational analysis, our results show that a combination of close-knit community ties and group interaction promote the development of strong personal networks that provide continued access to group memory to retain the group's knowledge.

The Effect Of Voluntary Versus Mandatory Adoption Of Trading Policies On The Returns To Insider Trades, Millicent M. Chang, Marvin Wee

Faculty of Business - Papers (Archive)

An insider trading policy is a critical aspect of a firm's internal governance which ensures the maintenance of corporate transparency. We examine the effect of trading policies on the returns to trades by corporate insiders over two periods: one where the adoption of a policy is voluntary and another where it is mandatory. In the former, we find that the requirement to notify the firm prior to trading does not result in lower trade returns on days outside the permitted trading windows. Where adoption of a policy is mandatory, trade returns made during the restricted windows are higher and the …

The Actual And Imagined Customer Experiences Of Blood Donation: A Customer Value Perspective, Rebekah Russell-Bennett, Josephine Previte, Charmine Hartel, Geoffrey Smith, Nadia Zainuddin

Faculty of Business - Papers (Archive)

No abstract provided.

Corporate Governance And Stock Liquidity In Australia: A Pitch, Searat Ali

Faculty of Business - Papers (Archive)

This pitch research letter (PRL) applies the pitch template developed by Faff to an academic project in corporate finance; that is, corporate governance and market microstructure, namely, stock liquidity for Australian firms. The pitch template is useful in identifying the core elements that form the framework of research project. This PRL encloses a brief background about the pitcher and pitch, followed by a brief commentary on the pitch and personal reflections of the pitcher on the pitch exercise itself.

Corporate Governance And The Insolvency Risk Of Financial Institutions, Searat Ali, Jamshed Iqbal

Faculty of Business - Papers (Archive)

We investigate whether corporate governance is related to insolvency risk of financial institutions. Using a large sample of U.S. financial institutions over the 2005-2010 period, we find that corporate governance is positively related with insolvency risk of financial institutions as proxied by Merton's distance to default measure and credit default swap spread. We also find that "better" corporate governance increased insolvency risk relatively more for larger financial institutions and during the period of the global financial crisis. Our findings suggest that too-big-to fail and deposit insurance policies encourage excessive risk taking by financial institutions.

Shame And Authority: Tracing The Cultural Antecedents Of Internal Protocols In China, Jing Wang

Faculty of Business - Papers (Archive)

Paper presented at the 8th Asia-Pacific Interdisciplinary Research in Accounting Conference, 13-15 July 2016, Melbourne, Australia

Managerial Coaching: A Practical Way To Apply Leadership Theory?, Julia Milner, Grace Mccarthy

Faculty of Business - Papers (Archive)

Transformational leadership is one of the most researched leadership theories, but sometimes misunderstood by managers who believe that to be a transformational leader requires them to be charismatic and in some way extraordinary. Similarly, some sportspeople and sports coaches may be truly transformational in their achievements and yet not receive the same recognition as their more flamboyant colleagues. In this chapter, several similarities are identified between managerial coaching and transformational leadership. Some differences were also identified. Where there are similarities, it is argued that adopting coaching practices can help managers to put transformational leadership into practice and gain the associated …

Industrial Relations Changes In The Maldives: Critical Events And Actors, Ali Najeeb, Mary Barrett

Faculty of Business - Papers (Archive)

This paper analyses recent changes in the industrial relations (IR) system in the Maldives. Critical incidents were compiled from interview and document data and analysed using a quasi-grounded theory approach. The analysis shows that, precipitated by the political events of September 2003, profound democratic and IR changes took place, including the emergence of new IR actors and institutions. However, the outcomes of these profound changes were short-lived, reverting to old undemocratic practices and arrangements. The paper highlights the reasons why democratic change occurred as it did in the Maldives and why it reversed.

Talk Of Reforming Toxic Banks Is Misguided: Improve The Product And Culture Will Follow, Martin L. Gold

Faculty of Business - Papers (Archive)

The recent and strident language from financial regulators, politicians and credit ratings agencies about financial services culture is a sure indicator that something is seriously amiss in the sector.

Differential Responses Of Loyal Versus Habitual Consumers Towards Mobile Site Personalization On Privacy Management, Hyunjin Kang, Wonsun Shin, Wing Yin Leona Tam

Faculty of Business - Papers (Archive)

We examine how two different underlying mechanisms of behavioral loyalty to a brand - attitudinal loyalty and habit - impact smartphone users' privacy management when they browse personalized vs. non-personalized mobile websites. The online experimental study conducted with Amazon Mechanical Turk workers (N = 73) finds different responses of attitudinal loyalty and habit towards personalization in significant three-way interactions between personalization, attitudinal loyalty, and habit on privacy disclosure and protection behaviors. When interacting with a personalized website, highly habitual consumers without high level of attitudinal loyalty disclosed the most personal information on a personalized mobile site, and displayed the least …

Students' Perception On Use Of Technology In The Classroom At Higher Education Institutions In Philippines, Virginia Carbonilla Gorra, Shyam S. Bhati

Faculty of Business - Papers (Archive)

Issue of unintended consequences of use of technology in class room is important because unintended consequences can cause disruption in class room and negate the institutional policies regarding strategic direction and intervention in teaching and learning process. Current literature on the use of e-learning for teaching focuses on factors which increases the effectiveness of e-learning but there is very little research on unintended consequences of e-learning, particularly in regard to developing countries. The present research seeks to fill in this gap in the research. This research investigates the consequences of the use of technology during classroom activities in higher education …

Does Corporate Governance Affect Australian Banks' Performance?, Ruhul Salim, Amir Arjomandi, Juergen H. Seufert

Faculty of Business - Papers (Archive)

Worldwide, recent corporate collapses have added to the insecurity of financial markets, triggering regulatory responses. This study provides empirical evidence of the relationship between corporate governance and the efficiency of Australian banks between 1999 and 2013, using two-stage double-bootstrap data envelopment analysis. Of the five corporate governance factors considered, we find board size and committee meetings have robustly significant and positive effects on efficiency. We also find evidence of improvements in overall industry efficiency following the 2003 introduction of the Principles of Good Corporate Governance, but not of any statistically-significant influence of the GFC.

Young Drivers' Responses To Antispeeding Advertisements: Comparison Of Self-Report And Objective Measures Of Persuasive Processing And Outcomes, Sherrie-Anne Kaye, Ioni Lewis, Jennifer Algie, Melanie White

Faculty of Business - Papers (Archive)

OBJECTIVE: Self-report measures are typically used to assess the effectiveness of road safety advertisements. However, psychophysiological measures of persuasive processing (i.e., skin conductance response [SCR]) and objective driving measures of persuasive outcomes (i.e., in-vehicle GPS devices) may provide further insights into the effectiveness of these advertisements. This study aimed to explore the persuasive processing and outcomes of two anti-speeding advertisements by incorporating both self-report and objective measures of speeding behaviour. In addition, this study aimed to compare the findings derived from these different measurement approaches.

METHODS: Young drivers (N = 20, Mage = 21.01 years) viewed either a positive or …

Exploring Mind Mapping Techniques To Analyse Complex Case Study Data, Fadi Kotob, Lee Styger, Lauren P. Richardson

Faculty of Business - Papers (Archive)

This paper discusses using mind mapping techniques as a viable and complementary approach for analysing the complex qualitative data collected during a research project. Using a case study methodology to undertake the investigation, data collecting focused on conducting semi structured interviews with employees of the Lebanese Association of SOS Children‟s Villages. This was followed by an exploratory exercise to analyse ten of the interviews conducted by using mind mapping techniques and assess the possible suitability of the technique for conducting qualitative data analysis. The study concludes that mind mapping is a suitable technique for analysing large amounts of qualitative research …

Board Diversity And Corporate Social Disclosure: Evidence From Vietnam, Trang Cam Hoang, Indra Abeysekera, Shiguang Ma

Faculty of Business - Papers (Archive)

Debates around sound corporate governance propose board diversity as a key attribute to sufficiently challenge executive management for stakeholder engagement. This study contributes to this debate by empirically investigating the effect of board diversity on corporate social disclosure (CSD) of Vietnamese listed firms. The study finds a significantly positive effect of diversity-in-boards (dissimilarities among directors within a board, i.e., demographic attributes of board members) on CSD while diversity-of-boards (dissimilarities among firm boards, i.e., board structure) has no effect on CSD. The results contribute by showing that a single theoretical approach can provide an adequate explanation for board diversity. The study …

How Does Corporate Governance Affect Loan Collateral? Evidence From Chinese Soes And Non-Soes, Can An, Xiaofei Pan, Gary G. Tian

Faculty of Business - Papers (Archive)

We examine the effect of corporate governance on the collateral requirements for firms' bank loans in China. We find that firms with lower excess control rights and other large shareholders face lower collateral requirements, which is more pronounced in non-state-owned enterprises (SOEs) than in SOEs. Regarding board characteristics, we find that smaller board size, more independent directors, separation of the positions of CEO and chairman, and larger supervisory board size can reduce a firm's use of collateral; the effect of all the preceding characteristics is more pronounced in SOEs. Overall, our research suggests that, in China, corporate governance structures are …

To What Extent Did The Economic Stimulus Package Influence Bank Lending And Corporate Investment Decisions? Evidence From China, Qigui Liu, Xiaofei Pan, Gary G. Tian

Faculty of Business - Papers (Archive)

Using a panel of Chinese firms over the period 2003-2013, we show that, from the supply-side perspective, as a result of the implementation of the economic stimulus package in China, state-owned enterprises (SOEs) received more bank loans and invested more than non-SOEs. We further find that after the implementation of the economic stimulus package, bank lending became less responsive to firm profitability, and firm investments became less responsive to investment opportunities for SOEs, non-SOEs from favoured industries and regions, and non-SOEs with political connections. Overall, our findings support the view that the stimulus package and the associated increase in bank …

Advising A Female Leader In A Family Firm: A Case Study, Mary Barrett

Faculty of Business - Papers (Archive)

Women do it differently, we're told, and this is true of many influential women in family firms. They often succeed by directing attention away from themselves, telegraphing moves to their partner - typically the CEO - to creating the change they know the firm needs. They change the firm because they have the CEO's trust rather than through displays of expertise, a visible presence, and a fancy job title.

The Big End Of Town Meets The Local Council: The Investment Habitus Of Four Sets Of Australian Councils During The Gfc, Gregory Jones, Claire Beattie, Graham D. Bowrey, Ciorstan Smark

Faculty of Business - Papers (Archive)

The Global Financial Crisis of 2008 led to a substantial write-down in the value of investments such as collateralised debt obligations (CDOs) with one class of investors being NSW Local councils. This article analyses interviews with four different investor types (or sets) of local councils, each of which took a substantially different approach to CDO investment. This categorisation into sets was based on interviews of 28 individuals working within 14 local councils as well as commentaries on legal cases involving a class action of local councils suing Lehman Brothers Australia as well as Grange Securities over losses in their investments. …

Ethnic Diversity And Trust: New Evidence From Australian Data, Silvia Mendolia, Alex Tosh, Oleg Yerokhin

Faculty of Business - Papers (Archive)

This paper investigates the relationship between neighbourhood ethnic and linguistic heterogeneity and individuals' local and generalised trust. A wide literature across economics and sociology has recognised the importance of trust in facilitating economic growth and development. We use fixed effects and instrumental variable regression and control for a wide set of individual and local area characteristics. Our results show that a 1 standard deviation increase in ethnic and linguistic fractionalisation is associated with a decrease in local trust of about 0.12 standard deviations, while we do not find any significant relationship between heterogeneity and generalised trust.

Corporate Rebranding: An Employee-Focused Nonprofit Case Study, Paul A. Chad

Faculty of Business - Papers (Archive)

The purpose of this paper was to examine the process by which a nonprofit organization conducted corporate rebranding and to assess the relevance of the principles of corporate rebranding originally developed by Merrilees and Miller (2008) in relation to for-profit organizations. A community-owned nonprofit organization that recently introduced corporate rebranding was examined. Semistructured in-depth interviews with employees from all organizational levels explored the rebranding process and employee feelings toward the process. Findings revealed that, while ultimately successful, rebranding did not progress smoothly. Problems related to initial management attempts to utilize minimal external expertise and to low levels of employee involvement …

Framing Advertisements To Elicit Positive Emotions And Attract Foster Carers: An Investigation Of High Cognitive Elaboration Donations, Melanie J. Randle, Leonie M. Miller, Joanna Stirling, Sara Dolnicar

Faculty of Business - Papers (Archive)

Advertisements that elicit negative emotions (e.g., guilt) have been found effective in prompting socially desirable behaviors, such as making monetary donations to charity. This study investigates whether this principle generalizes to a specific case of high-cognitive-elaboration donations: fostering a child. Results from an advertising experiment conducted with 470 respondents indicate that this is not the case. Rather, positive emotions caused stronger reactions to the advertisements, with processing motivation and preexisting attitudes playing a critical role. Implications for marketing foster care—and possibly other, similar high-cognitive-elaboration donations—include that ongoing communication and elicitation of positive emotions is essential to first form the right …