Business Commons^™

Mental Models: A Robust Definition, Laura L. Rook

Faculty of Business - Papers (Archive)

Purpose: The concept of a mental model has been described by theorists from diverse disciplines. The purpose of this paper is to offer a robust definition of an individual mental model for use in organisational management. Design/methodology/approach: The approach adopted involves an interdisciplinary literature review of disciplines, including system dynamics, psychology, cognitive science and organisational learning. Findings: Critical reflection on the published individual mental model definitions revealed similarities and shortcomings. It is argued that here the literature presents some consensus in the concept being internally held and having the capacity to affect how a person acts. The proposed definition of …

Security Of European Electricity Systems: Conceptualizing The Assessment Criteria And Core Indicators, Rabindra Nepal, Tooraj Jamasb

Faculty of Business - Papers (Archive)

Electricity systems have a central role to play in the transition towards a low carbon economy and the integration of renewable energy sources in the European Union (EU). However, European electricity networks face a diverse set of existing and new risks that can hamper the energy security of the member countries. This paper qualitatively and quantitatively assesses these risks given the changing operating framework characterized by market liberalization and network interconnectedness. Within this context, the paper primarily focuses on the risks from exceptional events and threats to European electricity systems. A simple ex ante risk assessment matrix is proposed to …

A Discussion Of The Suitability Of Only One Vs More Than One Theory For Depicting Corporate Governance, Abdullah Al Mamun, Qaiser Rafique Yasser, Md. Ashikur Rahman

Faculty of Business - Papers (Archive)

Agency theory predicts that the Chief Executive Officer (CEO) and the chairman positions should be held by different individuals in order to protect shareholder's interest. Though there are mixed evidences on CEO duality and firm performance, most research have found that there is negative relationship between CEO duality and firm performance. Although, in the last decades of the twentieth century, agency theory became the dominant force in the theoretical understanding of corporate governance, it does not however cover all aspects of corporate governance. This paper aims to explore whether it is better to combine various theories in order to describe …

Scientific Progress In Measurement Theory?, John R. Rossiter

Faculty of Business - Papers (Archive)

This article is a response to the March, 2013, special issue of the AMS Review, which was purportedly about "scientific progress in marketing" but in fact was about measurement in marketing. Even narrower than that, the special issue was about "formative measurement" in marketing. The present article contends that the problems raised by the special issue's authors were solved earlier by Rossiter's C-OAR-SE measurement theory. Four key references on C-OAR-SE theory (Rossiter in Int J Res Mark 19(4):305-335, 2002; Bergkvist and Rossiter in J Mark Res 44(2):175-184, 2007; Rossiter's 2011a book; Rossiter in Eur J Market 45(11/12):1589-1600, 2011b) are revisited …

Political Connections, Founder-Managers, And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary Tian

Faculty of Business - Papers (Archive)

We investigate the impact of manager political connection and founder status on tunneling in China's listed firms from 2004 to 2010. By classifying the political connections into three dimensions with two categories of controlling ownerships, we find that overall manager political connection is negatively related to tunneling in private firms but positively related to tunneling in SOEs. The CPC/CPPCC-type connection is likely to protect firms from tunneling, while the official-type connection facilitates tunneling from firms. The impact of these two types of political connection on tunneling is stronger at the central level than the local level. A chairman's political connection …

The Puzzle Of Negative Association Of Earnings Quality With Corporate Performance: A Finding From Chinese Publicly Listed Firms, Shiguang Ma

Faculty of Business - Papers (Archive)

Introduction

- Earnings management - Accounting data management. - Real earnings management.

- Earnings quality - Financial statement accurately and unbiased reports corporate operating status and financial position. - Earnings quality as the degree to which earnings persists or sustains into next period.

- Corporate performance - Low earnings quality leads to low corporate performance. - Theoretically approved, but empirical evidences are not consistent.

- The Puzzle of Negative Association of Earnings Quality with Corporate Performance in China - Probably, it is rational in an emerging market.

Eagles And Turkeys: Human Capital Externalities, Departmental Co-Authorship And Research Productivity, Frank Neri, Joan R. Rodgers

Faculty of Business - Papers (Archive)

Lucas (1988) hypothesised that human capital externalities explain persistent productivity growth and become manifest via interactions between workplace colleagues. Consistent with the first part of this hypothesis, Fox and Milbourne (2006) concluded that an increase in the average level of human capital in Australian economics departments raised the research productivity of departmental members. This paper tests the robustness of this finding by using a direct, rather than a proxy, measure of human capital and confirms the existence of human capital externalities within Australian economics departments. But we extend the analysis in two important dimensions. Firstly, we investigate the second part …

Politicisation Of The International Accounting Standard Setting Process: Evidence From The Extractive Industries, Corinne L. Cortese

Faculty of Business - Papers (Archive)

Purpose - The purpose of this paper is to provide a detailed example of the way in which extractive industries constituents participated in the setting of the international accounting standard for the extractive industries, IFRS 6 - Exploration for and Evaluation of Mineral Resources. Design/methodology/approach - A cross-section of extractive industries constituents is selected and their participation in the accounting standard setting process is examined via analysis of their comment letters and other interactions with the process. Findings - The paper contributes to our understanding of the politicised nature of accounting standard setting for the extractive industries. In doing so, …

Local Council Governance And Audit Committees - The Missing Link?, Greg Jones, Graham Bowrey

Faculty of Business - Papers (Archive)

Purpose: To examine the level of compliance of NSW Local Government councils with the Internal Audit Guidelines developed and published by the NSW State Government to address the identified weaknesses in the governance structures of the councils. The specific focus in this paper is on a key component of good governance, an audit committee, and whether the NSW Local Government councils have followed the guidelines and established an audit committee. Design / methodology: This paper is based on archival research of the 2009/2010 Annual Reports and websites of NSW Local Government councils to collect data on the existence and structure …

Should The Dodd-Frank Act Force Miners To Publish What They Pay?, Corinne L. Cortese

Faculty of Business - Papers (Archive)

[extract] This week, the powerful American Petroleum Institute (API), along with a coalition of trade organisations, won a significant battle against increased corporate transparency.

Superannuation Policy Processes: The Case Of Mysuper And Superstream, Fariba Ahmadi Pirshahid, Mary Kaidonis, Kathy Rudkin

Faculty of Business - Papers (Archive)

The Australian superannuation system has been praised as one of the best in the world. Yet a major review by the Cooper Committee in 2010 found numerous problems that have been undermining the performance of the system, proposing a number of recommendations for improvement. The subsequent adoption and implementation of two such recommendations saw the introduction of 'MySuper' and 'SuperStream' by the government resulting in the most significant reform in the superannuation industry since the introduction of the Superannuation Guarantee (SG) in 1992. This paper critically analyses: the relevant Deloitte; and Financial Services Council and Ernst and Young's report used …

Does Bank Ownership Imply Efficient Monitoring? Evidence From Bank Lending And Firm Investment Efficiencies In China, Gary G. Tian, Xiaofei Pan

Faculty of Business - Papers (Archive)

This study investigates the effect of bank ownership on lending and firm investment efficiencies to give reasons for the mixed evidence that exists on the impact of bank ownership on firm performance. Using China's listed firms as an example, we find that bank ownership reduces the efficiency of bank lending and harms investment efficiency for state-owned enterprises (SOEs), while simultaneously relating to optimal lending decisions and enhanced investment efficiency for non-SOEs. Our findings suggest that banks monitor non-SOEs effectively, but are less effective at monitoring SOEs. We document that banks' ex post monitoring on non-SOEs' investment policy results from their …

The Impact Of Information Opacity On The Relation Between Founding-Family Control And Cost Of Debt, Liangbo Ma, Shiguang Ma, Gary Tian

Faculty of Business - Papers (Archive)

The literature finds mixed empirical evidence for systematic relations between founding - family ownership and cost of debt. Using a sample of 3380 privately (non-state) controlled but publicly listed firms in China between 2004 and 2010, we find that, on average, founding-family controlled firms pay significantly lower cost of debt, relative to non-founding-family controlled firms. Further investigation reveals that the negative relation between founding-family control and cost of debt exists mainly in firms that are relatively less opaque. Our results are robust to different measures of cost of debt and information opacity. We further generate evidence that in regions with …

Mutual Fund Ownership, Firm Specific Information, And Firm Performance: Evidence From China, Wenhua Sharpe, Gary Tian, Hong Feng Zhang

Faculty of Business - Papers (Archive)

This paper shows empirically that the positive association between mutual fund ownership and firm value in China is mainly driven by the informed trading of mutual funds. Utilizing the unique short term feature of mutual fund holdings for the period from 2001 to 2010, we provide an informational link between a decomposed component of market-to-book ratio (firm specific valuation component) and mutual fund holdings. Specifically, we find that firms with a higher level of mutual fund ownership are associated with a higher specific value. Moreover, the positive association between the specific value of a firm and mutual fund ownership is …

Bank Connection, Corruption And Collateral In China, Xiaofei Pan, Gary Tian

Faculty of Business - Papers (Archive)

Using a sample of China's listed entrepreneurial firms, we investigate the relationship between bank connection, corruption and collateral requirements. We find that when a firm is connected with banks, collateral requirements are significantly lower. We also find that bank connection is the channel through which corruption is exercised to benefit those firms with favoured loan terms. Our analysis further reveals that bank connection and corruption have jointly improved bank lending efficiency. However, these positive effects become weaker with government intervention in the form of an economic stimulus package. We argue that in an emerging market, bank connection facilitates rent seeking …

Evaluation Of Regional Economy Through An Embedded Econometric-Interindustry Model, Ashkan Masouman, Charles Harvie

Faculty of Business - Papers (Archive)

Since incorporating interindustry analysis into econometric framework was pioneered some 40 years ago (Glickman, 1977), there has been a growing number of studies in the literature on application of the integrated framework at the subnational level. The integrated models in the literature have appeared in different forms with respect to the strategy and the structure, through which input-output (IO) and econometric are merged. The objective of the integrated framework is to capitalize on the merits of both component models, namely, an exhaustive interindustry analysis and a dynamic reflection of economic variables. This paper presents an attempt to extend and apply …

Do Satisfied Tourists Really Intend To Come Back? Three Concerns With Empirical Studies Of The Link Between Satisfaction And Behavioral Intention, Sara Dolnicar, Tim Coltman, Rajeev Sharma

Faculty of Business - Papers (Archive)

Explaining human behavior is a primary concern for tourism research and a substantial body of research concludes that highly satisfied tourists are more likely to return to a particular destination. In this article, we provide an analysis of this body of work, arriving at three concerns relating to the strength of association between satisfaction and behavioral intention: (1) the link between constructs is complex, resulting in the frequent omission of causal factors; (2) inconsistency with construct operationalization impedes cumulative knowledge development; and (3) explainable variance is impeded by between-study heterogeneity. We illustrate these problems by analyzing empirical guest survey data …

Editorial: Family Enterprise: Significant And Different, Mary Barrett

Faculty of Business - Papers (Archive)

This special issue of Small Enterprise Research (SER) is dedicated to family business, a topic which, although sometimes mentioned in passing in the journal, has not previously been the subject of a special issue. A comparative lack of attention to the special nature of family firms is typical of business scholarship generally where the non-family (or widely-held) corporate form dominates both the business research literature and business education. Family business has also been slow to attract public policy attention, perhaps because family businesses are stereotyped as small, despite the international prominence of huge family-based enterprises such as Newscorp.

Succession At Buchanan Transport, Mary Barrett, Ken Moores

Faculty of Business - Papers (Archive)

Family firms have all the challenges of any business and, because they are run by families, they have to contend with the blurring of boundaries between family, management and ownership systems. Textbooks such as Poza Family Business point out how conflicts are likely to arise around ownership succession in family firms, and the need to manage succession so as to enhance the interests of family and business. This case provides an opportunity to consider the intertwined nature of family and business problems in the succession process of a family firm which, despite steady growth earlier in its history, is now …

Energy Informatics: Designing A Discipline (And Possible Lessons For The Is Community), Jan Vom Brocke, G Fridgen, Helen Hasan, W Ketter, Richard Watson

Faculty of Business - Papers (Archive)

If we were to design a new scientific field with a clean slate perspective, what might be the outcome? The panelists have been working in various ways for the last few years on establishing a new domain of inquiry, Energy Informatics. The panel will address key questions that they think should be considered by those designing a new discipline. Specifically, they will address the following critical questions: (1) How do you enhance research community effectiveness? (2) How do you enhance research community efficiency? (3) What are the central activities and key resources? (4) How do you assess an effective contribution? …

Neglected Stakeholder Groups: A Case Study Of Recreational Vehicle Users In Tasmania, Anne Hardy, Ulrike Gretzel, Mark Wickham

Faculty of Business - Papers (Archive)

Traditional stakeholder mapping tools have concentrated on the identification of issues such as power, urgency and predictability of stakeholder groups. Yet they do not sufficiently address the ability of neglected stakeholder groups to communicate, gain and use their power when issues affecting them arise, suggesting that traditional approaches have to be updated to accommodate suddenly emerging stakeholder groups. This paper uses the case study of Recreational Vehicle Users in Tasmania, Australia, to explore the issue. In doing so it illustrates the risks of ignoring these groups, particularly when developing public policy. The paper proposes a more iterative and consultative approach …

Ownership Concentration And Expropriation In Chinese Ipos, Jerry Cao, Jeremy Goh, Vincent Tang, Gary Tian

Faculty of Business - Papers (Archive)

This paper explores the ubiquitous deviation between large shareholders' control rights and cash flow rights by examining ownership concentration and expropriation in the unique context of Chinese IPOs. We find that IPO firms whose largest shareholders have control rights in excess of their cash flow rights underperform other IPOs by 32% and 26% on three-year post-IPO buy-and-hold returns (BHR) and cumulative abnormal (CAR), respectively. These firms also experience greater declines in operating performance post IPO, driven partly by the high likelihood of their undertaking value-destroying related party transactions. Their first day returns are also significantly lower than those of other …

Touch Screen Technology Adoption And Utilisation By Educators In Early Childhood Educational Institutions: A Review Of The Literature, Melinda Plumb, Karlheinz Kautz, Holly Tootell

Faculty of Business - Papers (Archive)

The adoption of information and communication technology (ICT) in early childhood educational settings, in particular touch screen technology such as interactive whiteboards and tablet computing devices has potential for use within early childhood educational institutions. We conducted a literature review in order to understand what literature currently exists in this research area. The nature of ICT implementation as a dynamic, complex process, and concepts of organisational innovation were considered when examining articles. We demonstrate that there is a significant gap in the body of knowledge in regards to touch screen technology in early childhood, particularly from a process perspective, and …

Strategic Avoidance: Can Universities Learn From Other Sectors, Gregory Kerr, Peter Hosie

Faculty of Business - Papers (Archive)

Universities live in interesting times. For instance, government policies in Australia are allowing for more deregulation of the student market while overseas universities are entering the Australian domestic market. In an environment of increasing uncertainty, sound strategic planning is important. Processes including benchmarking, environmental scanning, knowledge management and risk management can identify best practice and guide "strategic pursuit". Two approaches are suggested to assist universities. The first is to expand planning frameworks from within-sector to include cross-sector comparisons. The second is to use these processes not only towards strategic pursuit but also to learn from mistakes made in other sectors, …

Accountability And Asbestos: Why The James Hardie Compo Model Won't Work For Telstra, Lee Moerman, Sandra Van Der Laan

Faculty of Business - Papers (Archive)

The toxic health effects of asbestos have been a prominent feature of the Australian industrial landscape for decades. The not-insignificant financial responsibility for asbestos-related compensation claims came to a head with the corporate reorganisation of the James Hardie group beginning in 2001 with the quarantining and subsequent isolation of asbestos liabilities in Australia.

Politicians As The Guardians Of The Status Quo: A Demonstration Of Rank And Privilege Without Responsibility, Kathie Cooper, Hajar Roudaki

Faculty of Business - Papers (Archive)

Much has been written about corruption and bribery involving major corporations in the United States such as Lockheed. However, most of this lite rature ignores the link between Watergate and the Foreign Corrupt Practices Act. The role of accounting and accountants in disguising the use of corporate funds for illicit purposes has als o not been addressed even though many of the enquiries into Watergate and related activities exp ressed concern that none of the cases of financial misstatement had been discovered or, at l east reported, by auditors. In other words, the accountability system envisaged in the financial re …

Economic Statement: Experts Respond, Richard Denniss, Arusha Cooray, John Quiggin, John Wanna, Phil Lewis, Zareh Ghazarian

Faculty of Business - Papers (Archive)

A slowing economy and drop in government revenue has led to an increased budget deficit, new taxes and some cuts to existing programs.

Not All Bank Accounts In Tax Havens Amount To Criminal Conduct, John A. Mclaren

Faculty of Business - Papers (Archive)

More than 500 Australians are apparently on a list of tax haven users obtained by the Washington-based International Consortium of Investigative Journalists, as part of its investigation into the use of offshore companies.

Federal Budget 2013: Expert Reactions, Stephen Howes, Arusha Cooray, Ben Spies-Butcher, Cameron Gordon, Carol Johnson, Clive Bean, David Willis, Hal Swerissen, John Quiggin, Lin Crase, Matthew Bailes, Paul Burke, Simon Marginson, Stephen Duckett, Zareh Ghazarian

Faculty of Business - Papers (Archive)

Australian Federal Treasurer Wayne Swan has handed down his sixth budget, facing an almost impossible task: how to reconcile an enormous revenue shortfall with big spending promises, all while keeping the voters happy in an election year?

Give The Wealthy A Tax Amnesty, The Budget Needs It, John A. Mclaren

Faculty of Business - Papers (Archive)

The Australian Taxation Office continues its campaign to track down the offshore bank accounts of wealthy Australians, amid a global effort to improve tax transparency.