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Full-Text Articles in Business
Augmenting Corporate Governance Through System Dynamics, Mridula Sahay, Kuldeep Kumar
Augmenting Corporate Governance Through System Dynamics, Mridula Sahay, Kuldeep Kumar
Kuldeep Kumar
The paper aims to augment good corporate governance as a whole with the efficiency and effectiveness of system dynamics via a system dynamics model. The majority of study of corporate governance focus on financial issue, ownership, agency theory etc. rather than analyzing the relation of all aspects associated to corporate governance system as a whole. This study aims to address this gap by focusing on corporate governance in a holistic manner. The value is determined as two-fold: i) It is possible to understand the importance of system dynamics methodology; and ii) It can help the organization to quantify corporate governance …
Invigorate Corporate Board Through Indian Scriptures, Mridula Sahay, Kuldeep Kumar
Invigorate Corporate Board Through Indian Scriptures, Mridula Sahay, Kuldeep Kumar
Kuldeep Kumar
There have been scores of corporate failure all over the world due to poor corporate governance or lapse in well manage corporation at the board level; due to this transparency, accountability, fiduciary duty, interest of shareholders, etc. are impinged on. Erosion of values, wisdom, righteousness, fairness, equanimity in judgment, etc. are appear to be possible attributes responsible for accelerating to corporate turpitude. Hence, this paper attempt to draw attention of the board members to look in to Indian scriptures and harmonize them to achieve sustainable and effective good governance and accentuate on their potential in helping to fulfill board’s responsibilities …
Insolvency Administration As A Strategic Response To Financial Distress, James Routledge, David Morrison
Insolvency Administration As A Strategic Response To Financial Distress, James Routledge, David Morrison
James Routledge
This study considers whether the strategic decision to enter voluntary administration (VA) rather than to trade the company’s business for a protracted period of declining performance is systematically related to the effective monitoring of management decision-making. Analysis that tests the association between strategic entry into VA and the likelihood that a company will reorganize in VA is also presented. We find about half of the companies in our sample entered VA as a strategic choice. The likelihood of strategic entry to VA increased with the proportion of independent board directors, the existence of an audit committee and a dual CEO/chair …
Corporate Governance And The Quality Of Green House Gas Emission Disclosures, Janice Hollindale, Pamela Kent, James Routledge
Corporate Governance And The Quality Of Green House Gas Emission Disclosures, Janice Hollindale, Pamela Kent, James Routledge
James Routledge
The introduction of the National Greenhouse and Energy Reporting Act 2007 (Cth) legislation is evidence of the importance the Australian Government places on the issue of greenhouse gas emissions (GHG) reporting. Australian corporations’ GHG disclosure information in annual reports is currently unknown as most research has focused on environmental voluntary disclosures in general. We used content analysis to produce an index wherein we assessed the quality of GHG disclosures made in the annual reports of Australian public-listed companies in 2007. Our interest was focused on whether good quality corporate governance influences the quality of GHG emission disclosures. We examined the …
Are Corporate Governance Recommendations Relevant For Small Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart
Are Corporate Governance Recommendations Relevant For Small Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart
James Routledge
This study examines the extent to which small listed companies in Australia comply with the Australian Securities Exchange corporate governance recommendations, and whether applying these recommendations is associated with benefits in terms of performance and accountability. The results indicate that many small listed companies comply with the recommendations, although the benefits to these companies from doing so appear to be low. We do not find evidence of a positive association between small company compliance with recommendations regarding board independence, diligence and formation of an audit committee and performance. However, we find that compliance with the recommendation against having a dual …
Are Corporate Governance Recommendations Relevant For Small Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart
Are Corporate Governance Recommendations Relevant For Small Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart
Pamela Kent
This study examines the extent to which small listed companies in Australia comply with the Australian Securities Exchange corporate governance recommendations, and whether applying these recommendations is associated with benefits in terms of performance and accountability. The results indicate that many small listed companies comply with the recommendations, although the benefits to these companies from doing so appear to be low. We do not find evidence of a positive association between small company compliance with recommendations regarding board independence, diligence and formation of an audit committee and performance. However, we find that compliance with the recommendation against having a dual …
Corporate Governance And The Quality Of Green House Gas Emission Disclosures, Janice Hollindale, Pamela Kent, James Routledge
Corporate Governance And The Quality Of Green House Gas Emission Disclosures, Janice Hollindale, Pamela Kent, James Routledge
Pamela Kent
The introduction of the National Greenhouse and Energy Reporting Act 2007 (Cth) legislation is evidence of the importance the Australian Government places on the issue of greenhouse gas emissions (GHG) reporting. Australian corporations’ GHG disclosure information in annual reports is currently unknown as most research has focused on environmental voluntary disclosures in general. We used content analysis to produce an index wherein we assessed the quality of GHG disclosures made in the annual reports of Australian public-listed companies in 2007. Our interest was focused on whether good quality corporate governance influences the quality of GHG emission disclosures. We examined the …
The Decision To Outsource Risk Management Activities, Jacqueline Christensen, Pamela Kent
The Decision To Outsource Risk Management Activities, Jacqueline Christensen, Pamela Kent
Pamela Kent
This study uses transaction cost economics (TCE) to identify factors influencing Australian Securities Exchange (ASX) companies’ decision to internally generate or outsource activities required to manage risk. Limited research has been conducted applying TCE in a risk management context with most in the accounting discipline concentrating on internal audit. Increasing our understanding of risk management practices benefits organisations, accounting professionals and regulators concerned with governance practice. Using a unique data set obtained from a survey sample of 271 listed ASX companies in 2009 combined with archival data hypotheses are operationalised and analysed using multivariate and logistic regression. Broadly in line …
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Keith Duncan
We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Ray McNamara
We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara
Simone Kelly
We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …
Corporate Governance And The New Trend Of Directors In Company Law In Other Countries, Christopher Chao-Hung Chen, Shuaisheng Huang
Corporate Governance And The New Trend Of Directors In Company Law In Other Countries, Christopher Chao-Hung Chen, Shuaisheng Huang
Christopher Chao-hung Chen
No abstract provided.
Corporate Governance As A Repeated Game Prisoners' Dilemma - And The Push To The Defect-Defect Cell, Peter Cebon
Corporate Governance As A Repeated Game Prisoners' Dilemma - And The Push To The Defect-Defect Cell, Peter Cebon
Peter Cebon
Governance of strategic risk can be understood as a repeated-game prisoners’ dilemma. In the cooperate-cooperate cell, boards and managers work together in a trusting, highly communicative relationship to make sense of the environment and to create and enact a strategy. In the defect-defect cell, the board distrusts the CEO and is concerned with monitoring and incentive alignment. Organisations with a focused strategy built on innovation-like actions benefit from being in the cooperate-cooperate cell. However, various internal and institutional forces push organisations, and particularly listed corporations, to the defect-defect cell.
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Pamela Kent
This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …
Corporate Governance And Company Performance In Australia, Jacqueline Christensen, Pamela Kent, Jenny Steward
Corporate Governance And Company Performance In Australia, Jacqueline Christensen, Pamela Kent, Jenny Steward
Pamela Kent
This study tests whether the adoption of Australian best practice corporate governance recommendations have a positive or negative relation with financial performance measured by return on assets (ROA) and Tobin's Q. The governance mechanisms associated with increased ROA and Tobin's Q are the existence of an audit, nomination and remuneration committee in Australia suggesting they are particularly beneficial to companies. We found evidence that a significant negative relation exits between the number of directors and proportion of independent directors on the board and the presence of a dual CEO/Chairperson and ROA. There is a significant positive relation between the number …
Application Of Stakeholder Theory To Corporate Environmental Disclosures, Pamela Kent, Christopher Chan
Application Of Stakeholder Theory To Corporate Environmental Disclosures, Pamela Kent, Christopher Chan
Pamela Kent
Ullmann's (1985) three-dimensional model of social responsibility disclosure is tested to determine whether it can be operationalized to help explain the quantity and quality of environmental disclosures in Australian annual reports. The stakeholder power dimension of Ullmann's framework is significant in explaining environmental disclosures while content of the mission statement and existence or otherwise of environmental or social responsibility committees also find strong statistically significant support in the results. Ullmann's stakeholder theory has previously been applied to explain social disclosures in general (Roberts, 1992) and is an important theory because it introduces a measure of strategy. The current paper demonstrates …
Founding Family Leadership And Industry Profitability, Trond Randoy, Clay Dibrell, Justin Craig
Founding Family Leadership And Industry Profitability, Trond Randoy, Clay Dibrell, Justin Craig
Justin B. Craig
In this article, we argue that firms in high-margin industries can benefit from founding family influence. Specifically, in more profitable markets, the influence of the founding family provides an additional corporate governance-monitoring function. The sample consists of 294 firm-year observations from 98 publicly traded companies headquartered in Sweden, representing approximately half of all nonfinancial traded firms. Our support that the effect of family leadership in publicly held firms should be assessed in relation to the intensity of industry competition.
The Company Dividend Restriction: Does It Promote Good Corporate Governance?, James Routledge, Peter Slade
The Company Dividend Restriction: Does It Promote Good Corporate Governance?, James Routledge, Peter Slade
James Routledge
This article considers aspects of the development of the law associated with the dividend payment restriction. The motivation for the article is to assess whether the existing substantive law is effective in promoting sound decision-making by corporate officers who are required to determine the timing and quantum of dividend payments. Our analysis suggests that the existing provision in s 254T of the Corporations Act 2001 is unlikely to have a significant positive effect on dividend decisions. This is due to its failure to provide meaningful guidance to decision-makers; its divergence from contemporary accounting practice; and its imposition of unnecessary complexity …
What Drives Tbl Reporting: Good Governance Or Threat To Legitimacy?, Pamela Kent, Reza Monem
What Drives Tbl Reporting: Good Governance Or Threat To Legitimacy?, Pamela Kent, Reza Monem
Pamela Kent
This paper provides two complementary explanations for the adoption of triple bottom line (TBL) reporting by Australian companies. The first explanation is that companies adopt TBL reporting to legitimise their relationship with society because of adverse publicity from the media. The second explanation is that TBL reporting is adopted because of the company’s desire to achieve high-quality reporting and transparency inferred by strong corporate governance. Companies with TBL reporting had significantly more adverse media coverage before implementing TBL reporting than non-TBL companies. TBL reporting is also significantly and positively related to the existence of an environmental or sustainable development committee …
Board Structure And Firm Performance: Evidence From Australia, Ingrid Bonn
Board Structure And Firm Performance: Evidence From Australia, Ingrid Bonn
Ingrid Bonn
The influence of corporate governance on firm performance has been discussed for a number of years, but mainly in a United States and European business context. This article investigates the composition of boards of directors in large Australian firms and analyses whether board structure has an impact on performance, as measured by return on equity and market-to-book value ratio. The results showed that outsider ratio and female director ratio were positively associated with firm performance, whereas board size and directors' age had no influence on firm performance.
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
James Routledge
This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …
From Vision To Variables: A Scorecard To Continue The Professionalization Of A Family Firm, Ken Moores, Justin Craig
From Vision To Variables: A Scorecard To Continue The Professionalization Of A Family Firm, Ken Moores, Justin Craig
Justin B. Craig
This chapter builds on previous projects we have conducted that have concentrated on the key areas of corporate governance and strategic planning in family business. Whereas our previous projects have enlisted an additive approach (that saw the family perspective added to the business), this current research takes on an integrated approach and seeks to integrate issues that influence the family and business systems. Specifically, in this research we use innovation action research (Kaplan, 1998) to illustrate how the Balanced Scorecard that includes reference to family business challenges has been introduced and used to assist family members, board members and management …
Corporate Governance And Business Ethics: Insights From The Strategic Planning Experience, Ingrid Bonn, Josie Fisher
Corporate Governance And Business Ethics: Insights From The Strategic Planning Experience, Ingrid Bonn, Josie Fisher
Ingrid Bonn
In this paper we develop an integrated approach towards corporate governance and business ethics. Our central argument is that organisations can learn from the development of strategic planning in the 1970s and 1980s. We identify three weaknesses – a bureaucratic and formalised approach, lack of implementation and lack of integration throughout the organisation – which were prevalent in strategic planning in the past and which are potentially just as problematic for an integrated corporate governance approach to business ethics. We suggest ways these weaknesses might be avoided and provide questions for boards of directors to consider when integrating ethical concerns …
Dummy Boards And Bored Dummies: Changes Needed At Bauer Holdings, Justin Craig, James Bergmuller
Dummy Boards And Bored Dummies: Changes Needed At Bauer Holdings, Justin Craig, James Bergmuller
Justin B. Craig
Frank Bauer rules Bauer Holdings by stealth and sees no reason why he should consider giving up his position as Chairman of the board. In this way, Frank is like many business leaders who have been involved in a multi-generational business since its founding. One of Frank's sons holds a position on the board and although Frank wants this son to eventually take over the business, the anointed son does not have the skills required or the passion to pursue the position. The third generation Bauers' are now questioning their involvement in the business and what role, if any, they …
Effects Of Board Structure On Firm Performance: A Comparison Between Japan And Australia, Ingrid Bonn, Toru Yoshikawab, Phillip Phanc
Effects Of Board Structure On Firm Performance: A Comparison Between Japan And Australia, Ingrid Bonn, Toru Yoshikawab, Phillip Phanc
Ingrid Bonn
This article compares the effects of board size, proportion of female directors, proportion of outside directors and average age of directors on firm performance in Japanese and Australian firms. We found that board size and age of directors were negatively associated with the performance of Japanese firms. For Australian firms, outsider ratio and female director ratio were positively associated with performance.
Corporate Governance And Anti-Takeover Devices, Helen Lange, Ian Ramsay, Li-Anne Woo
Corporate Governance And Anti-Takeover Devices, Helen Lange, Ian Ramsay, Li-Anne Woo
Li-Anne Woo
This paper seeks to establish what form of management structure, ownership structure and financial characteristics are exhibited by firms that propose and subsequently adopt anti-takeover charter amendments (ATCAs) in Australia over the period June 1986 to December 1990. An ATCA is a restriction of partial takeover activity implemented through shareholder approval to changes in a firm's constitution. Approval for such changes is obtained through majority agreement from a plebiscite of shareholders. The study adopts a control sample design to analyse if characteristics differ statistically from adopting ATCA firms and those which do not adopt ATCAs during the investigation period. Following …