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Full-Text Articles in Business
Corporate Governance And Stock Liquidity Dimensions: Panel Evidence From Pure Order-Driven Australian Market, Searat Ali, Benjamin Liu, Jen Je Su
Corporate Governance And Stock Liquidity Dimensions: Panel Evidence From Pure Order-Driven Australian Market, Searat Ali, Benjamin Liu, Jen Je Su
Faculty of Business - Papers (Archive)
Our newly constructed index of corporate governance quality (CGQ) provides comprehensive and robust evidence for the association between CGQ and stock liquidity in the pure order-driven Australia market. By using a large sample of 1207 firms from 2001 to 2013, we find a significant positive relationship between CGQ and stock liquidity, suggesting that better governed firms have greatly improved stock liquidity. Specifically, we find that better governed firms have a lower trading cost, smaller price impacts of trade, and higher trading speed. Moreover, the empirical results reveal that CGQ improves stock liquidity because it is associated with higher information disclosure.
Insiders' Profits In The Australian Equities Market, Henk Berkman, Reza Bradrania, Tina Prodromou, P Westerholm
Insiders' Profits In The Australian Equities Market, Henk Berkman, Reza Bradrania, Tina Prodromou, P Westerholm
Faculty of Business - Papers (Archive)
In this paper we investigate if directors of Australian companies earn persistent profits on their reported trades, if these abnormal profits are significant enough to be mimicked by outsiders, and if these insider trades have an effect on returns of other investors. We find that insiders take advantage of their private information in stocks of larger corporations, but generally do not in medium and small capitalization firms, indicating that they insiders are attracted to the liquidity and a greater presence of uninformed traders in large stocks. Insiders appear able to determine the value of their information in by trading larger …
Does Control-Ownership Divergence Impair Market Liquidity In An Emerging Market? Evidence From China, Xiaojun Chu, Qigui Liu, Gary Tian
Does Control-Ownership Divergence Impair Market Liquidity In An Emerging Market? Evidence From China, Xiaojun Chu, Qigui Liu, Gary Tian
Faculty of Business - Papers (Archive)
This paper examines how institutional characteristics of emerging economies influence the effect of control-ownership divergence on market liquidity. We find that the divergence is negatively associated with liquidity and that this negative relationship is more pronounced in firms with more severe agency problems and information asymmetry. We argue that in an emerging market, the negative effect of the divergence on liquidity is worsened by state ownership and poorer shareholder protection, both of which result in more severe agency conflicts; we also find, however, that this effect is alleviated by the NTS reform, which aligns the interest of different shareholders.
Role Of Non-Executive Directors In Implementing Non-Regulatory Codes On Corporate Governance In Smes Listed In The Alternative Investment Market In The Uk: A Content Analysis, Palli Mulla K A Chandrakumara, Gunetilleke Walter
Role Of Non-Executive Directors In Implementing Non-Regulatory Codes On Corporate Governance In Smes Listed In The Alternative Investment Market In The Uk: A Content Analysis, Palli Mulla K A Chandrakumara, Gunetilleke Walter
Faculty of Business - Papers (Archive)
This study explores roles of NEDs of SMEs listed in the Alternative Investment Market (AIM) in the London Stock Exchange. It extends the literature on NEDs’ roles relevant to a context where the adherence to the principles of non-regularity corporate governance is not compulsory. We adopted a content analysis approach as a novel method for exploring roles of NEDs using details of 1220 NEDs recorded in 75 annual reports. It revealed that NEDs meet the expectations of several stakeholders simultaneously by playing multiple roles. A conceptual model depicting testable relationship between cognitive tasks and key roles of NEDs is also …
Do Venture Capitalists Play A Monitoring Role In An Emerging Market? Evidence From The Pay-Performance Relationship Of Chinese Entrepreneurial Firms, Jerry Cao, Qigui Liu, Gary Tian
Do Venture Capitalists Play A Monitoring Role In An Emerging Market? Evidence From The Pay-Performance Relationship Of Chinese Entrepreneurial Firms, Jerry Cao, Qigui Liu, Gary Tian
Faculty of Business - Papers (Archive)
This paper investigates venture capitalists' monitoring of managerial behaviour by examining their impact on CEO pay-performance sensitivity across various controlling structures in Chinese firms. We find that the effectiveness of venture capitalists' monitoring depends on different types of agency conflict. In particular, we find that venture capital (VC) monitoring is hampered in firms that experience severe controlling-minority agency problems caused by disproportionate ownership structures. We provide further evidence that VC is more likely to exert close monitoring in firms that have greater managerial agency conflict, and thus require more direct monitoring. However, controlling-minority agency problems have a greater impact on …
Committed Tourists - An Attractive Market Segment, Amata L. Ring, Sara Dolnicar, Ulrike Gretzel
Committed Tourists - An Attractive Market Segment, Amata L. Ring, Sara Dolnicar, Ulrike Gretzel
Faculty of Business - Papers (Archive)
This paper investigates the existence of highly committed tourists as an interesting market segment for the tourism industry. Tourists who see vacations as central to their lifestyle are identified as highly committed tourists and contrasted with tourists who do not attach importance to vacations. Several significant findings between the two groups are reported. Most importantly, highly committed tourists are unlikely to sacrifice their vacations and show a higher willingness to take risks, which makes them an interesting target segment, especially in times of uncertainty. Additionally, these tourists are responsible for planning holidays which allows marketers to directly speak to the …
Organizational Change Within Charities: Improved Performance Via Introduction Of Market Orientation And Other Strategic Orientations, Paul Chad
Faculty of Business - Papers (Archive)
Market orientation is recognised as the key strategic orientation enabling for-profit organizations to gain improved performance. Adopting such an orientation can also aid nonprofit charities facing pressure to become more businesslike due to increasing competition in the current global environment. Knowledge regarding exactly how charities can change is however highly under-researched. Based upon examination of multiple case studies of charities that underwent organisational change to improve performance, the change management process is analysed using a discourse transformation framework to identify how charity managers successfully introduced new strategic orientations dominated by a market orientation. A "checklist" is developed that offers nonprofit …
Institution Building And Variation In The Formation Of The Australian Wool Market, David Merrett, Simon Ville
Institution Building And Variation In The Formation Of The Australian Wool Market, David Merrett, Simon Ville
Faculty of Business - Papers (Archive)
The relocation of the wool market from London to the major Australian port cities from the late nineteenth century required the formation of an institution to govern the auction business, namely the wool brokers' association. Regional variations, among Sydney, Melbourne, and Brisbane, occurred in the structure and effectiveness of the institution despite each regional association having been formed around the same time, for the same purpose, and with an overlap of participating firms. We draw on institution theory to guide our account and find that the impact of legacy factors and differences in market conditions explain the regional variations.
Does Political Capital Create Value In The Ipo Market? Evidence From China, Qigui Liu, Jinghua Tang, Gary Gang Tian
Does Political Capital Create Value In The Ipo Market? Evidence From China, Qigui Liu, Jinghua Tang, Gary Gang Tian
Faculty of Business - Papers (Archive)
This study examines the value of political capital in the Chinese IPO market. We find a positive relationship between a politically connected executive and the probability of IPO approval of entrepreneurial firms. We further identify that shareholders value those connections and give a market premium to connected firms after the firms go public. We provide evidence that other types of political capital gained through external sources, such as politically connected sponsors and PE investors, also bring benefits to the firms in their IPO approval, and these connections substitute for the effect of the executive's political connections on IPO approval. We …
Development Of A Market Orientation Research Agenda For The Nonprofit Sector, Paul Chad, Elias Kyriazis, Judy M. Motion
Development Of A Market Orientation Research Agenda For The Nonprofit Sector, Paul Chad, Elias Kyriazis, Judy M. Motion
Faculty of Business - Papers (Archive)
Market orientation is the overarching framework by which practitioners and academics make sense of the interplay between customers, competition, stakeholders, and the organization within the commercial for-profit arena and is the way the marketing concept is put into practice. Many academics have argued that market orientation would also benefit nonprofit organizations by generating more funds in an increasingly competitive environment. The purpose of this article is to conduct a systematic review of market orientation, identify gaps, and develop a research agenda for market orientation research within the underresearched nonprofit sector. This research agenda highlights the structural, human resource, and cultural …
A Praxis Framework For Implementing Market Orientation Into Charities, Paul Chad, Judith Motion, Elias Kyriazis
A Praxis Framework For Implementing Market Orientation Into Charities, Paul Chad, Judith Motion, Elias Kyriazis
Faculty of Business - Papers (Archive)
There is a scarcity of research regarding the process of introducing market orientation into the not-for-profit sector. Understanding this process would greatly assist the not-for-profit sector, which is under increasing pressure to obtain funds to operate and offer appropriate services. In this article, we examine the successful introduction of market orientation into three Australian charities and identify the stages of implementation. The introduction of market orientation is analyzed from a discourse transformation perspective and a praxis framework is developed. This is amongst the first studies examining the transition to a market orientation discourse within charity organizations and the first study …
Implementing Market Orientation In Charities: A Necessity For Survival, Paul Chad
Implementing Market Orientation In Charities: A Necessity For Survival, Paul Chad
Faculty of Business - Papers (Archive)
This article examines the highly under-researched area of exactly how a market orientation can be successfully implemented within an organisation. Market orientation is the key strategic orientation that assists for-profit organisations achieve improved performance and can potentially also assist charities that play a vital role within society but are facing increasing competition. Utilising a discourse transformation framework to case study a charity that introduced market orientation as its dominant strategic orientation, thematic analysis identifies how management transformed the organisation via a three-phase process and greatly improved performance. The new dominant market orientation was aided by elements of other strategic orientations, …
Exploring The Role Of Marketing Strategy And New Product Development In Long-Term Success Of Market Acceptance: A Case Study Of A Local Product In Thailand, Pensri Jaroenwanit, Uraiporn Kattiyapornpong
Exploring The Role Of Marketing Strategy And New Product Development In Long-Term Success Of Market Acceptance: A Case Study Of A Local Product In Thailand, Pensri Jaroenwanit, Uraiporn Kattiyapornpong
Faculty of Business - Papers (Archive)
This paper aims to present the exploratory study of the role of marketing strategy and new product development in achieving long-term success of market acceptance in the context of a local product in Thailand. It is part of a large project, only qualitative study is included in this paper. The research methodology comprised documentary research, focus group discussion, and in-depth interview. Participants included local business representatives and customers who live in the regional area and have purchased and consumed the regional products in the last twelve months. The exploratory findings showed the importance of understanding the role of marketing strategy …
The Stock Market Implication Of Political Connections: Evidence From Firms' Dividend Policy, Jerry Cao, Sheng Huang, Qigui Liu, Gary G. Tian
The Stock Market Implication Of Political Connections: Evidence From Firms' Dividend Policy, Jerry Cao, Sheng Huang, Qigui Liu, Gary G. Tian
Faculty of Business - Papers (Archive)
Political connections are valuable for shareholders of privately-run firms especially in countries with weak legal institutions. We study the effect of a firm's political connections in the public equity market by focusing on its impact on the firms' dividend policy. Prior studies suggest that dividends signal the commitment for proper treatment of minority shareholders and thus high growth firms pay dividends to establish such a reputation for better access to equity market in the future. Using a sample of privately-owned Chinese firms, we find that politically connected firms are less likely to pay dividends and pay less if they pay. …
The Effects Of Financial Crises On International Stock Market Volatility Transmission, Indika Karunanayake Athukoralalage, Abbas Valadkhani, Martin O'Brien
The Effects Of Financial Crises On International Stock Market Volatility Transmission, Indika Karunanayake Athukoralalage, Abbas Valadkhani, Martin O'Brien
Faculty of Business - Papers (Archive)
With the integration of national economies through international trade and finance, the exploration of financial market interdependency has become profoundly important among market participants and scholars. Focusing on the Asian and global financial crises of 1997-98 and 2008-09 for Australia, Singapore, the UK, and the US, this paper examines the nature of such an interaction between stock market returns and their volatility. We use a multivariate generalised autoregressive conditional heteroskedasticity (MGARCH) model and weekly data (January 1992-June 2009). Based on the results obtained from the mean return equations, we could not find any significant impact on returns arising from the …