Business Commons^™

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

Qigui Liu

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 …

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

Gary Tian

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 …

Transforming Nobody To Somebody: Do Transformational Leadership And Relationship Marketing Make A Difference For Sustainable Marketing?, Nalin Abeysekera, Ananda Wickramasinghe

Ananda Wickramasinghe

With a complex, dynamic and fiercely competitive business environment and consumerism, sustainable relationship marketing is a hallenge that is critical for businesses. The concept of transformational leadership can be considered as the most influential over the last two decades in changing the ways that businesses are operating - in particular, in marketing their products, and attracting, delighting and retaining customers for the long run. This conceptual paper examines the relationship between transformational leadership and relationship marketing in the context of selling. In particular, the usage of trust and commitment used by both theories has been discussed extensively. Ultimately this study …

Why Do Companies Fail? Considering The Key Problems And Success Factors In Modelling Failure Prediction In An Australian Context, William Wilkinson

Bill Wilkinson

Corporate failure is a regularly recurring problem for stakeholders, particularly investors, creditors and customers. Early attempts at predicting such failure typically relied on analysis of individual performance measurements such as accounting ratios; it was not until the late 1960s that a modelling approach to the problem started to evolve. Altman's Z-score model was the first approach to combine a series of weighted ratios using the statistical technique of multiple discriminant analysis (MDA) to arrive at a final score, which was used to determine whether or not a company was likely to fail. Substantial research has followed over the subsequent 40 …

Tax Havens: Do They Have A Future Providing Banking And Financial Services?, John Mclaren, John Passant

John McLaren

This paper will attempt to provide an answer to the question: will tax havens continue to provide financial and banking services to non-resident investors in the face of sustained pressure from the Organisation for Economic Cooperation and Development (OECD)1 and the developed nations, in particular the G20? The question encompasses more than just the issue of whether or not tax havens and Offshore Financial Centres (OFCs) will continue to operate as financial centres attracting mobile capital from individuals and Multi-National Enterprises (MNEs) because they have low or no taxes. Two other important considerations which are fundamental to the future of …

Do Private Equity Investors Conspire With Ultimate Owners In The Ipo Process?, Qigui Liu, Vincent Tang, Gary Tian

Qigui Liu

This paper examines the interactive effect of private equity (PE) and ultimate owners on the process of firms' going public. We find that firms with high excess control rights have more earnings management before IPO, and they are more likely to seek PE investors especially when the earnings management are high. We further show that the involvement of PE investors increases the probability of the firms' IPO application being approved by the regulators in firms with high excess control rights. However, the PE-backed firms with high excess control rights are found to have higher IPO fee, lower initial returns and …

Do Private Equity Investors Conspire With Ultimate Owners In The Ipo Process?, Qigui Liu, Vincent Tang, Gary Tian

Qigui Liu

This paper examines the interactive effect of private equity (PE) and ultimate owners on the process of firms' going public. We find that firms with high excess control rights have more earnings management before IPO, and they are more likely to seek PE investors especially when the earnings management are high. We further show that the involvement of PE investors increases the probability of the firms' IPO application being approved by the regulators in firms with high excess control rights. However, the PE-backed firms with high excess control rights are found to have higher IPO fee, lower initial returns and …

Do Smart Phones Bring Us Closer? A Family Life And Vacation Perspective, Heather Kennedy-Eden

Faculty of Business - Papers (Archive)

Relationships developed in families are crucial because these bonds play an integral part in learning how to function and interact in society. In the past, these bonds were strengthened by spending leisure time together as a family but now smart phone technology provides opportunities for individual entertainment, connecting on social media, and spending time physically together while being emotionally separated. This research looks at this issue from a systems theory perspective, conceptualizing families as open, self-regulating social systems with the smart phone being a technical system within the family system. The smart phone acts as a conduit between immediate family …

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 …

Secondary Analysis Of Two Environmental Practice Studies. Do Empirical Variables Represent Expressed Theoretical Constructs?, Indra Abeysekera

Faculty of Business - Papers (Archive)

Many research questions in studies on environmental practices have used variables with little regard as to whether they represent theoretical constructs. This validation is fundamental to testing and interpreting theories using variables. This study examines whether environmental disclosure, environmental performance, and economic performance are different constructs. It uses canonical correlation analysis technique, and reviews two published studies as case presentations. Analyzing the study by Al-Tuwaijri et al., the environmental disclosure variable is found to represent the disclosure construct, while the environmental performance and economic performance variables are found to represent two dimensions of the performance construct. In the Hasseldine et …

Local Determinants Of Crime: Do Military Bases Matter?, Alfredo R. Paloyo, Colin Vance, Matthias Vorell

Faculty of Business - Papers (Archive)

Background: The majority of crime is committed by young men, and young men comprise the majority of the military-base population. The confluence of these two empirical regularities invites a scientific look at the contribution of a military base to criminal activity in ist geographic periphery.

Objective: We estimate the impact on criminal activity of the massive base realignments and closures that occurred in Germany for the period 2003-2007. In particular, we examine breaking and entering, automobile-related crime, violent crime, and drug-related crime.

Methods: We use a fixed-effect model to account for time-invariant unobservables in a panel of …

Do Low-Skilled Migrants Contribute More To Home Country Income? Evidence From South Asia, Arusha V. Cooray

Faculty of Business - Papers (Archive)

A recursive system is employed to investigate the indirect effect of out-migration on gross domestic product (GDP) through remittances in South Asia, namely Bangladesh, India, Nepal, Pakistan, and Sri Lanka. Out-migration is further disaggregated by skill level and country of destination (Middle East and other), and their effects on GDP through remittances are examined. The results suggest that migration and remittances have an important significant effect on the GDP of the countries under study. Of the skill categories, the unskilled category has the largest robust indirect effect on GDP. The effects of migration on GDP by country of destination suggest …

Do Guns Displace Books? The Impact Of Compulsory Military Service On Educational Attainment, Thomas K. Bauer, Stefan Bender, Alfredo R. Paloyo, Christoph M. Schmidt

Faculty of Business - Papers (Archive)

To estimate the causal effect of conscription on the probability to obtain a university degree, we use a regression-discontinuity design associated with the introduction of conscription in Germany. There is evidence that conscription increased the likelihood of completing higher education.