bluuebunny/crossref_metadata_2025 huggingface dataset:
Fraudes no processamento do pescado
Authors: Rebouças Lucas , Gomes Renata Bezerra
Published: February 2017

High quality protein source, seafood is one of the main targets of fraud in the food industry. The practice made by the seafood for profit industry, occurs when there are changes in the characteristics of the product without official agreement, such exchange of species, glaciamento not offset error in labeling and addition of additives. This paper presents a literature review with data of the main articles related to major frauds committed in the seafood industry.
Priapismo em cão tratado com penectomia seguida de uretrostomia: Relato de caso
Authors: Albuquerque Átilla Holanda de Albuquerque , Campelo Junior Francisco de Assis Coelho , Macedo Hermógenes Josniel Rocha , Feitosa Aline Silveira , Alves Argeu Anfrisio , Monteiro Cynthia Levi Baratta , Ferraz Richard Elâino de Oliveira
Published: February 2017

Priapism is defined as a persistent erection of the penis, frequently painful that longs more than 4 hours, in absence of stimulus or sexual desire. It is an infrequent pathology in dogs with low number of cases described in the veterinary literature. The penectomywithurethrostomy is recommended as a treatment in many cases, for example in diffuse neoplasms and post-traumatic injuries. The objective of this study was to report a case of trauma and secondary penile necrosis to priapism in a paraplegic dog treated with penectomy followed by urethrostomy scrotal. The penectomy with urethrostomy proved to be a good alternative to avoid the repercussions of priapism in dogs.
Implicações patológicas após o uso de anticoncepcional, em cadelas situadas em Teresina-PI
Authors: Honorio Tiago , Fonseca Ana Paula Barros , Araújo Estéfane Kelly Dias , Moura Vanessa de Meneses , Chaves Rômulo Aécio Alves , Rodrigues Marcelo Campos , Klein Rozeli Pizzigati
Published: February 2017

Bitches are multiparous animals of short gestation, producing generally numerous offspring that can reach sexual maturity from six months old. Currently, the population control of the canine species and consequently of zoonoses must appear in programs or public policies by municipal and state managers. Surgical sterilization is the main measure for this control. The contraceptive drugs mainly injectables to prevent or slow down the heat or estrus and not allow future fertility, were widely used in the 80s and early 90s and continues to this day. The objective of this study is to analyze the prevalence and the main implications associated with the use of contraceptives in dogs treated at University Veterinary Hospital "veterinarian Jeremiah Pereira da Silva" the Federal University of Piauí, from January 2012 to July 2014, where it could be concluded that the use of contraceptives is possibly related to the high incidence of cases of pyometra, breast cancer and abortion.
Corporate governance - a subject whose time has come
Authors: Tricker Bob
Published: February 2017

The metamorphous of corporate governance has yet to occur. Present practice is still rooted in a nineteenth century legal concept that is totally inadequate in the emerging global business environment. Present theory is even less capable of explaining coherently the way that modern business is governed. What is needed is a vibrant alternative way to ensure that power is exercised, over every type and form of corporate entity and strategic alliance around the world, in a way that ensures both effective performance and appropriate social accountability and responsibility. Unfortunately, the most likely driver of further rigorous development in corporate governance is likely to be the next round of alleged board level excesses and corporate collapses, whatever the causes.
Corporate rent-seeking and the managerial soft – budget constraint an incremental cash flow approach to some corporate governance issues
Authors: Apreda Rodolfo
Published: February 2017

This paper seeks to expand on two topical strands in Government Finance and Political Science literature, rent-seeking and the soft-budget constraint, so as to bring forth a strong linkage with corporate governance environments. It will attempt to accomplish this task by setting up a distinctive framework of analysis that hinges on incremental cash flows. Firstly, it claims that both rent-seeking behavior and the soft-budget constraint are worthy of being applied to corporate governance learning and practice. Secondly, the paper contributes to focus on cash-flows reliability and managers’ accountability. Thirdly, it is shown how conflicts of interest underlie rent-seeking behavior, and how the latter relates to the soft-budget constraint.
The effect of role duality on corporate performance in Malaysia
Authors: Abdul Rahman Rashidah , Haniffa Roszaini Mohd
Published: February 2017

The Malaysian Code on Corporate Governance (MCCG) recommends a separation between the position of CEO and Chairman to ensure a balance of power and authority, such that no individual has unfettered powers of making decision. It was hoped that the code would lead to more independent boards so as to provide the essential checks and balances over management’s performance. Thus, the current study seeks to explore the extent CEO duality influence corporate performance in Malaysia. The findings indicate that companies with CEOs role duality seemed not to perform as well as their counterparts with separate board leadership based on accounting performance measurements, ROE and ROA. This implies that the recommendation by the MCCG to have the two roles separated is deemed very important and must be implemented fully.
Corporate control in Europe
Authors: Grant Jeremy , Kirchmaier Thomas
Published: February 2017

Control devices are a common practice in Europe, used to increase the influence of a dominant shareholder upon the firm beyond his/her cash flow rights. They are often very powerful devices which limit the effective control of corporations to a small group of shareholders, and can be utilized to extract private benefits of control. In this paper, we aim to provide an understanding how these devices work in principal and then examine how they are used in the main Western European economies (France, Italy, Germany, Spain and the UK), in light of the recent changes of legislation and despite improvements in the efficiency of capital markets.
Financial-industrial groups at the markets for corporate control and investments: The case of Ukraine
Authors: Kostyuk Alex , Tchernyshov Konstantin , Kostyuk Olena
Published: February 2017

This article is devoted to the research of the functioning of financial and industrial groups on Ukraine’s markets for corporate control and investments. The largest financial and industrial groups of Ukraine - “Finance & Credit”, “Privat-Invest”, “Ukrsibbank” and “The Industrial Union of Donbass” - were studied during the research. The research revealed the most important criteria that financial and industrial groups have to meet for the efficient functioning on the Ukrainian markets for corporate control and investments. These are the following criteria: a powerful bank capable of carrying out the function of cash generator within a group; high degree of business diversification; optimum concentration of property; minimal hierarchy of the system of corporate control. The research has studied such criterion as transparency of the structure of property, which is highly valued by the corporate governance in other countries. In Ukraine, the structure of ownership of most of efficiently functioning financial and industrial groups is not transparent, which is paradoxical. This can be explained by the lack of proper legislation for protection of property rights, low activity of small shareholders and reluctance of financial and industrial groups themselves to make transparent the motives of their participation on the market for corporate control.
Separation between ownership and control: Where do we stand?
Authors: Chapelle Ariane
Published: February 2017

Complex structure of ownership like cross-ownership, rings, and pyramids are common in Continental Europe, Eastern Europe, and in Asia. This paper aims at dissecting these complex features by a proper measurement of direct and indirect holdings. Building on Brioschi et al. (1989), we use the input-output matrix methodology and we add control considerations in the matrix calculations to derive a straightforward method of quantifying the separation between ownership and control for a firm or a shareholder, named the “separation ratio”. After giving an overview of the full ownership structure of the listed Belgian companies, we present and apply our method to a database of more than 800 companies and individuals linked to the Belgian listed firms. Next, we replicate the approach with data from several European countries and the United States. These international comparisons allow evaluating the interactions between the economic environment of a country, and its corporate governance features.
On corporate governance, management and entrepreneurship in OECD countries
Authors: Bouy Charles
Published: February 2017

This paper studies corporate governance and its effect on corporate performance. It gives an explicit exposition of the shareholder and stakeholder models of corporate governance. It accounts for specific aspects of management and entrepreneurship. Special attention is paid to the financial mechanisms of corporate governance. Moreover, the legislative background is considered as a factor of effective corporate governance.
Corporate governance in Lebanon: An empirical investigation
Authors: Safieddine Assem
Published: February 2017

In this paper, we examine the board composition of the largest three companies, two of which are the first to be privatized and find that the oversight function of corporate boards has not yet been fully utilized. We also analyze the state of corporate governance in Lebanon using the five principles of corporate governance, namely: protection of shareholder rights, equitable treatment of shareholders, protection of stakeholder rights, timely and accurate disclosure and transparency, diligent exercise of the board of directors’ responsibilities. We try to highlight Lebanon’s potential challenges given its recent experience in the privatization of the mobile telecommunication services, and its current and proposed institutional and regulatory reforms as laid out in the Paris II conference. We also examine the organizational determinants of the governance arrangements in privatized firms based on the experiences of other emerging conomies
Eastward enlargement: Privatization in MECC
Authors: Bigelli Marco , Ghini Gianluca
Published: February 2017

This paper tries to offer a review of the literature on the main privatisation methods adopted by the Central and East European Countries which have joined European Union in 2004. After having analysed the major advantages and short comes of each privatisation method the paper briefly describes the privatisation processes adopted by each single country.
Pyramiding effect on firm’s investment decision among Malaysian distress companies
Authors: Mat Nor Fauzias , Bany-Ariffin Amin Noordin
Published: February 2017

It is documented by La Porta, Lopez and Shleifer (1999) that ultimate owners, around the world usually control an array of affiliated companies through hierarchical intermediary corporations forming a Pyramidal Ownership Structure. A direct result of this pyramidal ownership structure is divergence of cash flow rights from control rights in the hand of the largest shareholders (Claessens, Djankov and Lang 2000). This paper investigate the impact of this separation of cash flow rights from control rights resulting from this pyramidal forms of ownership structure on firm’s investment decisions. In particular, our objective is to examine whether such separation affects the investment decisions among Malaysian listed distress Companies. Our findings lends support to the over investment problem, where by the separation of cash flow rights and control rights have led to the increase of inefficient investment among the distress companies. The main source of financing for this inefficient investment activity is the firm’s retained earnings. Consequently, the exploitation of such firm’s resources in order to finance these inefficient investment activities of the ultimate owner’s then lead to negative market valuation.
Stock option plans for CEO compensation
Authors: Álvarez-Pérez María Dolores , Neira Fontela Edelmira
Published: February 2017

Stock options plans (SOPs) can be used as a CEO remuneration instrument. Our study examines the dimensions of SOPs, the types of SOP used by Spanish firms to reward the CEO, and the effect of different SOP types on CEOs’ behavior. The results show that traditional options “at the money” are the most used by Spanish firms. Although this SOP type is not the most appropriate from the optimum contract theory approach, it offers high potential gains to the CEO. It may therefore increase the capacity of companies to attract and retain competent executives.
Target board structure and takeover-induced abnormal returns in the UK
Authors: Constantinou Costas , Trigeorgis Lenos , Vafeas Nikos
Published: February 2017

We examine the link between board structure and bid-induced abnormal returns for a sample of 198 UK-based firms that became takeover targets between 1989 and 1998. As expected, takeover targets experience significant gains during the takeover announcement period. In line with a disciplinary explanation for takeovers, we find that target boards that are larger, with fewer independent directors, and a managing director chairman, experience more favorable announcement-period returns. Targets with more reputable directors and directors with greater ownership incentives, also experience more favorable announcement-period returns
Corporate governance, public accounting firms and multinational corporations: The US Sarbanes-Oxley Act perspective
Authors: Massoud Marc , Shim Eunsup Daniel
Published: February 2017

The purpose of this paper is to review US corporate governance systems and to highlight the mandated roles of audit committee and external auditor within the SOX Act. In addition, it discusses requirements and implications of the SOX Act for the foreign accounting firms and multinational corporations. Finally this paper provides a perspective on improvement of corporate governance and financial integrity. In order to regain trust from the financial market, the SOX Act mandates (1) to improve auditor’s independence by reducing conflicts of interest; (2) to increase corporate financial reporting responsibility by requiring a CEO or a CFO certify accuracy of annual report; and (3) to enhance financial disclosures. It also significantly increase criminal penalty for non-compliance. The authors believe that the combination of strengthening auditor’s independence, increased corporate responsibility and severe penalty and restored corporate governance would create an environment that is intended by the SOX Act. Volker and Levitt (2004) put it very forceful way: “While there are direct money costs involved in good corporate governance, we believe that an investment in good corporate governance, professional integrity and transparency will pay dividends in the form of investor confidence, more efficient markets and more market participation for years to come.” We concur with them and believe that the SOX Act will help in restoring trust in corporate governance and improve financial integrity and quality of financial information. We also agree that the benefits of the SOX Act will outweigh the costs of compliance in the long-run.
Determinants of board composition: Evidence from Tunisian companies
Authors: Chtourou Sonda Marrakchi , Ayedi Soumaya , Fourati Yosra Makni
Published: February 2017

This study focuses on the composition of boards of directors in the Tunisian context. We model the composition of the board of directors as a function of alternative governance mechanisms, some board characteristics and other control variables. On a sample of 97 Tunisian firms, we find evidence that the proportion of outsiders on the board of directors is positively associated with large block, institutional and overseas ownerships, and board size. We document that the CEO duality is associated with a decrease in the board independence. We fail to find evidence that increased debt ratio to total assets is inversely associated with the outside board representation. While we predict a positive relationship between the board independence and the firm size, the organizational complexity and the quotation status; our results generally do not support this conjecture
Mises, Rothbard and Salerno on costs
Authors: Barnett II William , Block Walter
Published: February 2017

This paper is an attempt to wrestle with the concepts of costs, causality, subjectivism, derived demand, inflation, supply and demand, and with the views of three Austrian economists on all of them: Mises, Rothbard and Salerno. In our view, in contradistinction to theirs, the choices of both buyer and sellers, in the consumer and producers goods markets, contribute to price determination. Our claim is that they give too short shrift to the latter markets
Ownership structure and market valuation of family groups in Chile
Authors: Lefort Fernando
Published: February 2017

In this paper I provide a summary description of corporate structure in Chilean firms and explain the evolution of conglomerates and capital markets in the Chilean economy. Specifically, I look at the control mechanisms and the identity of controllers of listed non-financial companies in Chile. Using a database developed by Lefort and Walker (2000, 2003b), I look at the relationship between family ownership and control and market valuation of listed firms in Chile. The evidence provided in this paper indicates that in the case of the highly concentrated Chilean companies, family management of a company is associated to a market discount. This evidence is consistent with the hypothesis of imperfect correlation of talent across generations. However, as I explained earlier in the paper, most Chilean groups have less than 30 years of existence and therefore, the succession problem is not likely to be very important in Chile
Controlling shareholders and corporate valuation in Brazil
Authors: Leal Ricardo P. C. , Carvalhal da Silva Andre
Published: February 2017

This paper investigates the relation between the ownership structure, valuation and performance of Brazilian companies. The results show that large shareholders keep control while holding only a small fraction of cash flow rights. The evidence also indicates that non-voting shares and pyramiding are the main devices set to entrench the large controlling shareholder. There is some evidence that firm valuation and performance are negatively related to voting concentration, and that foreign-owned firms perform the best while government-owned firms perform the worst.
On the estimation of the value of voting rights: Evidence from Taiwan
Authors: Huang I-Hsiang
Published: February 2017

This paper proposes that the value of voting rights can be measured as the abnormal return of the date after the ex-voting rights date. The merit of this method is that it is applicable to all publicly traded firms. Whatever the expected return model is adopted, the vote value hypothesis of Manne (1962) is hold by using a sample of firms listed on Taiwan Stock Market whose annual shareholder meetings have a board election. Moreover, the result shows that the value of voting rights is negatively related to prior year’s market value of equity, managerial equity ownership, and return on asset. It is consistent with the hypothesis that the source of vote value comes from private benefit of control and improved management
Horizontal and vertical takeover and sell-off announcements: Abnormal returns differ by industry
Authors: Gross Stephan K.H. , Lindstädt Hagen
Published: February 2017

We begin with the hypothesis that shareholder-wealth effects of corporate transactions differ depending on (a) the specific industry, (b) whether they are horizontal or vertical, and (c) whether they are integrations (takeovers) or disintegrations (partial sell-offs). A standard event study analysis for cumulative abnormal returns based on the market model is conducted for 309 data-points from 227 transaction announcements. We find that abnormal returns indeed do significantly depend on the transaction profile (horizontal vs. vertical and integration vs. disintegration) and industry. One main result is the observation that the capital market shows distinctive preferences for either an integration or disintegration strategy for vertical as well as for horizontal transactions. The specific pattern of this preference differs according to industry
Does ownership structure affect firm performance? Evidence from a continental-type governance system
Authors: Fernández Méndez Carlos , Gómez-Ansón Silvia
Published: February 2017

This paper analyzes the influence of stock ownership structure on firm performance in Spain, a country characterised by the dominance of internal mechanisms of control and a weak external control performed by the markets. Once the possible endogeneity of managerial stock ownership is taken into account, we find no evidence of its influence on firm’s performance. This result is consistent with previous evidence for Anglo-Saxon economies. Consistently with the supervisory role of the large shareholders we find also evidence of a positive effect of stock ownership concentration on firm performance. Nevertheless, we have to be cautious relating this result as its significance depends on the firm’s size.
Intersecurity wealth redistribution in conglomerate mergers: A re-examination over three decades
Authors: Hyland David C. , Nail Lance
Published: February 2017

In this paper we re-examine the predicted wealth effects for the stockholders and bondholders involved in conglomerate mergers. Seminal studies in finance offer several hypotheses about the valuation consequences of corporate diversification and firm performance. Recent empirical studies document the negative relationship between corporate diversification and firm performance. We evaluate the predictive accuracy of these earlier theories given these more recent empirical results. Our results indicate that the wealth predictions of neither the wealth creation theory of Lewellen (1971) nor the wealth redistribution theories of Higgins and Schall (1975) or Galai and Masulis (1976) hold for bondholders and stockholders in whole. Bondholder wealth changes are virtually independent of stockholder wealth changes in conglomerate mergers in the 1970s and 1980s. However, a significantly negative relationship exists between stockholder and bondholder wealth changes in conglomerate mergers occurring in the 1990s. Conglomerate mergers did not result in significant stock or bond wealth creation in any of the three decades studied. Over the last decade, capital markets have penalized the stockholders in conglomerate mergers with significant wealth losses. Bondholder wealth changes are insignificantly positive, resulting in significant net wealth losses for conglomerate mergers in the 1990s.
The influence of the board on firm performance: An empirical vision in the Spanish capital market
Authors: García-Meca Emma , Sánchez-Ballesta Juan Pedro
Published: February 2017

Corporate governance research suggests that board monitoring will be more effective if boards consist primarily of independent outside directors. However, the results of previous studies testing board effectiveness have been mixed. We offer new insights of these relationships in a country whose particular corporate governance system is characterized by high concentration of ownership, mainly through pyramidal groups, and low legal protection of investors. Specifically, the aim of this paper is to investigate the influence of the independent directors on firm performance in Spain. We find that the addition of independent directors to the boards increases firm value, as the relationship between the proportion of independent directors and performance is positive and significant
The importance of Shari’ah supervision in Islamic financial institutions
Authors: Rammal Hussain Gulzar
Published: February 2017

Islamic financing differs from conventional financing in that it prohibits the payment or receipt of interest. The concept of interest-free financing existed prior to the advent of Islam and was embraced in ancient Arabia. The concept was officially launched in the 1970’s by the Organization of Islamic Countries (OIC) and introduced in most Muslim nations and some Non-Muslim nations. But while it has experienced phenomenal growth rate, the Islamic financial system has been criticized for failing to incorporate the true spirit of Shari’ah in their actions. Islamic financial institutions are also divided over the interpretation of which products are considered halal (acceptable under Islamic law). In order to overcome some of these issues, financial institutions dealing with Islamic products are required to utilize the services of a Shari’ah adviser or a Shari’ah Supervisory Board (SSB). The paper recommends a more collaborative effort between the central banks of Muslim nations and regulatory organizations
Diversification and corporate decisions
Authors: Rubin Amir
Published: February 2017

Much of the empirical and theoretical work in corporate finance regards the assumption that shareholders want to maximize the value of the firm’s equity. However, most shareholders (at least in the US, UK and Canada) are well diversified and care about their portfolio value, and not the value of any particular firm. Corporate policies that encourage managers to maximize equity value may be suboptimal for these diversified shareholders. This study shows how various issues are significantly affected by shareholders’ diversification. These issues are: (1) the monitoring role of the board of directors; (2) the rationale behind corporate social responsibility, (3) the optimality of capital budgeting decisions, and; (4) the objective of executive compensation policies
Corporate governance of German growth companies. Empirical analysis of the corporate governance quality and the structure of supervisory boards of companies listed on TEC-DAX
Authors: Bassen Alexander , Kleinschmidt Maik , Zöllner Christine
Published: February 2017

This article analyses the importance of corporate governance for growth companies, derives specific requirements for them and evaluates the corporate governance quality for companies listed on TecDax. Growth companies’ characteristics imply a comparatively high importance of corporate governance due to a high level of business and agency risk. Several corporate governance elements are therefore particularly important for growth companies. Overall, the empirical results imply a high conformity of the Tec-Dax companies with the GCGC criteria with some exceptions for specific companies and criteria. But the analysis of the quality of their supervisory boards delivers a differentiated result as in some of the analysed companies the effectiveness of the supervisory board is questionable.
How independent should the board be? Corporate board structure from a voting perspective
Authors: Huang Haiying
Published: February 2017

This paper proposes a model of corporate voting in which private information and individual preferences of board directors drive the board decisions. The optimal board structure and optimal firm value are solved numerically and their dependence on director and firm characteristics are studied. The optimal board structure is determined by outside and inside directors’ relative unforcedness about the firm, insiders’ bias, outsiders’ advisory ability as well as the characteristics of the projects that the firm have. Voting rules other than the majority voting rule are considered. It is found that the majority rule often is not the optimal rule and it is optimal for a firm to have more inside directors while adopting a tougher voting rule. By studying strategic voting equilibria theoretically, insights about how board directors vote strategically are also provided
The financial system and corporate governance in Japan
Authors: Okabe Mitsuaki
Published: February 2017

Corporations may be said to be engines of any market economy and their proper behavior is a key to economic, hence human, security. This paper argues that one of the most important causes for the prolonged period of recessions of the Japanese economy in the 1990’s is deeply rooted in the long-established financial structure of the economy and in the closely related issue of corporate governance. Although Japanese corporations have been traditionally understood that their activities are monitored and governed by “main banks,” this framework has been changing over the last 10-15 years toward corporate governance driven by pressure from capital markets. This change has been necessitated by: (a) less need on the part of corporations to rely on banks in acquiring funds, (b) ongoing dissolution of cross shareholdings, (3) an increasing importance for the role of institutional investors, and (4) innovations in information and communication technologies. The change may be regarded as being one from “process innovation” toward a system conducive to “product innovation;” hence a desirable shift. There remain, however, a number of policy tasks, such as institutional improvement in securities investment trusts and the need to better define the role of institutional investors
Agency costs, ownership structure, and corporate governance in pre-and post-IPO firms
Authors: Davidson III Wallace N. , Bouresli Amani Khaled , Singh Manohar
Published: February 2017

Following the approach in Ang, Cole, and Lin (2000), we estimate the impact of CEO ownership on agency costs in pre-IPO firms and again in the post-IPO period when they have become publicly traded companies. We find that CEO ownership is large in both the pre and post-IPO firms. Greater CEO ownership is associated with lower agency costs both before and after the IPO, and CEO ownership in these firms seems to dominate all other agency control mechanisms. Board composition and involvement by venture capital firms does not appear to mitigate agency costs.
Extraterritorial impacts of the Sarbanes-Oxley Act on external corporate governance – current evidence from a German perspective
Authors: Haller Axel , Ernstberger Jürgen , Kraus Christian
Published: February 2017

The Sarbanes-Oxley Act (SOX) has not only had tremendous impact on the U.S corporate governance system, but also on other countries with companies subject to SOX. The paper analyzes the major direct impacts of SOX on the European Union (EU) and Germany as a Member State. The focus of the analysis is on rules concerning external corporate governance instruments, i.e. the auditing professions’ oversight, auditors’ independence and auditing standards. Additionally, the paper investigates whether the contemporary regulatory activities in the EU and Germany concerning external corporate governance can be explained as indirect institutional consequences of SOX. Although the EU Commission says for the record that it has an own long-term strategy of modernizing corporate governance, the paper demonstrates that several rules of SOX quite obviously served as a model for the EU regulatory activities. The same phenomenon can be observed for the new German regulations of external corporate governance
Declassification of corporate directors: Addressing the real concerns affecting stockholders.
Authors: Andert Darlene M.
Published: February 2017

The future will provide the lesson about the effects of Board declassification. Yet, without question, declassification does degrade the synergy needed to build learning and decision-making symmetry, and it makes these part-time professionals, a temporary and potentially short-term member of a decision-making community. As a poison pill, this strategy remains questionable. Clearly, the alchemy of providing excellent oversight that generates great business outcomes is not the mandate of declassification. Declassification is a re-structuring strategy only. Real alchemy comes from a great deal of knowledge,, and sprinkle of luck, but remains unlinked to potentially changing the seats in the chairs after each election. Perhaps corporate governance restructuring should begin to address the real problem, which is positioning Directors to be knowledgeable, accountable, and ethical fiduciaries
Corporate governance as motor of change of entrepreneurial culture
Authors: Rodríguez-Ariza Lázaro , López-Pérez María Victoria , García Santana Arminda
Published: February 2017

Information disclosure on best practices should have positive effects on entrepreneurial performance. This paper attempts to study the deep cultural change occurring in firms. To achieve this, we analyze the effect of adopting good corporate governance practices on management. Thus, the objective of this research is to test whether significant differences in entrepreneurial efficiency exist between two groups of firms. One of these groups quotes on Dow Jones Global Index (DJGI) and has adopted good corporate governance practices. The other group is formed of firms which do not quoted on stock exchange and do not apply best practices. We selected a sample of 100 firms for the period 1998-2004 and analyzed some economical financial indicators usually used to measure entrepreneurial efficiency. We confirm the effect that the adoption of these practices has on economic-financial indicators. The empirical analysis supports the conclusion that differences in efficiency exist between firms that belong to the DJGI and disclose information concerning best practices and firms that do not quote on stock exchange and do not disclose this kind of information. We then study the sign of these differences and draw conclusions
Corporate governance cycles during transition: A comparison of Russia and Slovenia
Authors: Mygind Niels , Demina Natalia , Gregoric Aleksandra , Kapelyushnikov Rostislav
Published: February 2017

The governance cycle – here defined as the changes in the identity of the dominant owner and ownership concentration - is marked by the key phases of firm life-cycle, including start-up, growth, an eventual restructuring or exit stage. Privatized firms in transition countries, however, experience somehow specific cycles, which reflect the characteristics of the economic and institutional environment in transition: i) the type of privatization that initially often introduced a high proportion of employee ownership (like in Russia and Slovenia); ii) strong pressures for restructuring and ownership changes; iii) limited possibility for external finance due to the embryonic development of the financial system. The hypotheses on the development of the governance cycles in transition are tested upon a sample of Russian enterprise data for 1995-2003 and Slovenian data covering 1998-2003. In spite of the differences in institutional development concerning privatization and development of corporate governance institutions, we find that governance cycles are broadly similar in the two countries. Employee ownership is rapidly fading in both countries. While change to manager and non-financial domestic outsider ownership is typical for Russia, this is not the case in Slovenia. Instead, change to financial outsiders in the form of Privatization Investment Funds is more frequent. Foreign ownership, which is especially rare in Russia, is quite stable. The ownership diversification to employees and diversified external owners during privatization did not fit well to the low development of institutions. As expected, we observe a subsequent concentration of ownership on managers, external domestic and foreign owners in both countries
Executive stock options with a rebate: Valuation formula
Authors: Dayananda P.W.A.
Published: February 2017

We examine the valuation of executive stock option award where there is a rebate at exercise. The rebate depends on the performance of the stock of the corporation over time the period concerned; in particular we consider the situation where the executive can purchase the stock at exercise time at discount proportional to the minimum value of the stock price over the exercise period. Valuation formulae are provided both when assessment is done in discrete time as well as in continuous time. Some numerical illustrations are also presented
Organizational dynamics, dissemination of management concepts and the growth of the consulting market in the 90s
Authors: Donadone Julio Cesar
Published: February 2017

In viewing the organizational world of organizations during recent decades, we see a group of organizations that appear in a prominent position. The organizational consulting firms stand out as one of the most dynamic sectors during the 90s. Thus, the present study intends to contribute to understanding the growth process of the consulting market, its forms of activity and relationship to other organizations, starting with three reference points. First, focusing on the international consulting market, seeking to identify its characteristics and major changes over recent decades. In the second part, the focus is on changes in the business and management over recent decades I focus on the changes in business and managerial space during the period. The set functions as a means to visualize the activities of management ranks facing new organizational shapes and demands, formed beginning in the 1980s. From this starting point, I refer to the formulations that come to support the concepts associated with the growing influence of financial logic in management forms, seeking to relate them to the issues of growth and forms of consultant activities as well as the role carried out by the ranks of management in midst of these circumstances. Another component in constructing this study was the attempt to discuss the forms and mechanisms for disseminating management ideas and the diverse sectors involved in the process, focusing on the activity of consulting firms and their connection to other sectors in the field of selling organizational innovations, especially the business press. This choice intends to contribute to an understanding of business-consulting firm relations, starting with the issue of disseminating new managerial references
The value relevance of goodwill and goodwill amortization in a Danish setting
Authors: Petersen Christian V.
Published: February 2017

Based on data from the Danish Stock Exchange, this paper examines the value relevance of purchased goodwill and explores how goodwill should be measured subsequent to initial recognition. Danish accounting legislation requires capitalization and amortization of purchased goodwill. As of 2005 Danish listed companies must comply with international financial reporting standards (IFRS) issued by the International Accounting Standards Boards (IASB). An exposure draft (ED 3: Business Combinations) is presently under consideration by the IASB. If this exposure draft is implemented, Danish listed companies must carry out impairment tests on goodwill. The value relevance is tested by examining the association between goodwill and goodwill amortization and share prices, incremental to other accounting variables.The overall findings suggest that investors perceive goodwill as an asset with a long economic life time. The results support the Danish Financial Statements Act that requires capitalization of all purchased goodwill. The findings brings into question if goodwill amortization provides useful information to investors. This suggests that impairment testing might be an alternative way to measure acquired goodwill assets in subsequent years
Risk-adjusted performance of Swedish bond funds in the years 2000-2003; An application of the Modigliani-measure
Authors: Wiberg Daniel
Published: February 2017

This paper compare Swedish long-term bond funds’ returns against the OMRX-TBond, which is the major index of long-term bonds issued by the Swedish National Debt Office and other major Swedish bond issuers. The evaluation is made on a total return level as well as on a risk-adjusted basis. To measure risk-adjusted performance a performance measure developed by Modigliani and Modigliani (1997) is used. The main advantage with the Modigliani-measure is that it measures performance in basis points like the original return of any asset. By using the Modigliani-measure the study illustrates the importance of risk-adjustment when comparisons are made between benchmarks, such as an index, and mutual funds or portfolios investing in that particular market. When risk-adjusted, the performance of many of the Swedish mutual funds improved noticeably, most of them however, still underperform the index OMRX-TBond by a few percentage points when risk-adjusted with the M2-model. This result gives support to the idea originally presented by Sharpe (1966) and Jensen (1968), that the majority of mutual funds significantly underperform the market
Accounting for reverse logistics activities
Authors: Kovács Gyöngyi , Rikhardsson Pall
Published: February 2017

Traditional logistics systems aim at minimising total (logistics) costs. At the same time, these systems focus on forward material flows in the supply chain. Concerns for the environment, and warranty related product returns have led to both end-of-life and commercial product take-backs, introducing the question of reverse material flows in these systems. These are backward moving inventories that have to be (re-)processed and show several coupling points to the forward materials flows in the logistics system. We argue that modern accounting systems are challenged with the phases of remanufacturing and refurbishment in the reverse supply chain. Many reverse logistics and reprocessing activities are integrated in other corporate processes, and their costs are difficult to separate from other cost objects, hindering the correct costing of reverse flows. By an analogy to safety management accounting, this paper proposes an activity-based method to account for the costs of reverse material flows. Accounting for these costs will help to take a more holistic view on total logistics costs and improve management control of logistical flows
A study of corporate governance in Thailand through the lens of the three-pillared model
Authors: Chaithanakij Surasak
Published: February 2017

Inspired by Sabel’s and Schlicht’s theory of the firm, a new three-pillared theory of the firm (3Cs model) has been developed. Underlying it is the concept of the balance of power. The balance of power is the core of corporate governance that appears to have been referred to more by practitioners than scholars. This paper shows that corporate governance can actually find its root in economic governance in which the balance of power has been the dominant principle underlying all stable and prosperous economic systems from the past to present. The economic history of Europe shows this. More recent studies on modern organizational economics have shown two interacting thrusts inside the firm: to achieve the firm’s objective and to keep its activities efficient. Both streams of evidences lead this paper to synthesize the balance of power as the core of corporate governance. The balance of power concept, though much mentioned, never has been proposed in the past as a theoretical ground because of the firm’ subtlety. This theoretical framework argues that a firm can be understood and conceptualized in several realms. Whereas the legal realm of the firms is commonly used in theoretical analysis, its narrowly characterized nexus-of-contract hinders an understanding of the complexity of the governance realm which can be construed as the balance of power driven by three interacting components, namely Authoritative capability, Control power and Cultural consensus. Since a sizable portion of Thai listed companies are plausibly controlled by majority shareholders and their families, the companies represent the ideal subjects of study through the lens of the 3Cs model. Selected proxies of the three governance components are tested against the performance indices and significant relationships are found. The 3Cs model is proved to be a new effective tool of corporate governance study
Directorship interlocks in Singapore: A social network analysis
Authors: Tan Margaret , Lee Chu Keong
Published: February 2017

This paper uses social network analysis to examine the extent of interlocking directorships across companies listed on the Singapore Stock Exchange Limited (SGX) Mainboard in 2004. Detailed analyses on different industry sectors within SGX as well as an overall analysis of all the companies on the SGX Mainboard were performed. The findings show that there were varying degrees of interlocking directorships within the different sectors, and on average, each director from a SGX Mainboard-listed company sits on more than 2 directorship positions.
Does board characteristics affect the capital structure decisions of Ghanaian SMEs?
Authors: Abor Joshua , Biekpe Nicholas
Published: February 2017

The issue of corporate governance has been a growing area of management research especially among large and listed firms. However, less attention has been paid in the area with respect to Small and Medium Enterprises (SMEs). This current study explores the link between corporate board characteristics the capital structure decision of SMEs. The paper specifically assesses how the adoption of corporate governance structures among Ghanaian SMEs influences their financing decisions by examining the relationship between corporate governance characteristics and capital structure using an appropriate regression model. The results show negative association between capital structure and board size. Positive relationships between capital structure and board composition, board skills, and CEO duality are, however, found. The control variables in the model show signs which are consistent with standard capital structure theories. The results generally suggest that SMEs pursue lower debt policy with larger board size. Interestingly, SMEs with higher percentage of outside directors, highly qualified board members and one-tier board system rather employ more debt. It is clear, from the study, that corporate governance structures influence the financing decisions of Ghanaian SMEs.
The effects of investor protection on the venture capital industry
Authors: Sanz Luis J.
Published: February 2017

In this model the level of investor protection shapes both the investment and exit policies of the venture capitalist. It therefore might help to explain the correlation between the development of both the venture capital industry and the stock market across countries, as well as some of the differences between the venture capital industry in Europe and in the U.S.