bluuebunny/crossref_metadata_2025 huggingface dataset:
A Rainbow at Midnight: Zapatistas and Autonomy
Authors: Cuninghame Patrick , Corona Carolina Ballesteros
Published: January 2010

THE BRUTAL MASSACRE of 45 indigenous sympathisers, mostly women and children, of the EZLN (Zapatista National Liberation Army) in a refugee camp near Acteal in the south-eastern state of Chiapas, Mexico, last December 22, at the hands of paramilitary death squads linked to the PRI government served to remind world opinion that the ‘Rebellion of the Forgotten’ of January 1994 has moved from a low to a high intensity conflict. The success of the Zapatistas in mobilising Mexican and international ‘civil society’, particularly through the Internet, in a common struggle against the disastrous human and environmental consequences of neoliberalism, globalisation and “free trade” and for increased autonomy for indigenous peoples has forced the PRI regime, under the instigation of the US government and World Bank, to adopt a more violent and politically riskier strategy of repression through state terror. This has effectively ended the phase of negotiations which led to the signing of the San Andrés Accords on Indigenous Rights and Culture in February 1996, which the PRI (Party of the Institutional Revolution) regime has since refused to implement, so intensifying the conflict.
Peer Review, the Research Assessment Exercise and the Demise of Non-Mainstream Economics
Authors: Lee Frederic S. , Harley Sandra
Published: January 2010

This article argues that the theoretical and methodological divisions within economics combined with the institutional arrangement of the Research Assessment Exercise and peer review has produced a state affairs which poses a serious risk to the future existence of non-mainstream economics. The conclusion of the article is that, due to the peer review-led Research Assessment Exercise which governs the disbursement of research monies for British universities, non-mainstream economics will be eliminated from British economic departments within ten years.
Trade Unions in Zimbabwe: For Democracy, Against Neo-Liberalism
Authors: Walt Lucien van der
Published: January 2010

The author examines the impact of organised labour on the process of democratisation in Zimbabwe. However, the extent to which democratisation and economic reform has been achieved has been strongly conditioned, on the one hand, by the weaknesses and divisions within the opposition, and by strength and skills of the incumbent regime, on the other. The outcome is the current situation of stalemate in which the formations of working-class organisation have proved powerful enough to defend and win limited political rights, but too weak to topple the formidable edifice of the de facto one-party State in favour of a bourgeois democratic regime. This raises questions of strategy which are touched on at the end of this paper.
Defining the Fault Lines: New Divisions in the Working Class
Authors: Yates Charlotte
Published: January 2010

In case we needed further reminder, increased workers insecurity brings with it no automatic collective response. Using the case of Australian and Canadian autoworkers, the author traces how the tendencies towards social division amongst workers are re-articulated through the introduction of new managerial strategies, particularly lean production and Human Resource Management. But it also emphasises that these tendencies can be countered by a trade union strategy which stresses the importance of an agenda which recognises the importance of women and the potential for alliances with other groups.
The Prospects for Workplace Trade Unionism: Evaluating Fairbrother's Union Renewal Thesis
Authors: Gall Gregor
Published: January 2010

Peter Fairbrother has extensively developed the thesis of ‘union renewal’, which seeks to show that the challenges posed to contemporary trade unionism can be met by changes in the form of unionism. This critique, while welcoming the general thrust of the thesis, questions its validity and application as a result of its failure to consider a number of areas and issues.

TRADE UNIONISM IN BRITAIN is universally recognised as experiencing deep-seated and long-standing difficulties. However considerable disagreement exists amongst trade unionists, the left and academics over what can be done to remedy this malaise. Fairbrother (1989, 1990, 1994a, 1994b, 1996a, 1996b, 1998) has made a significant contribution to the under-considered question of what conditions and processes are necessary for workplace trade unionism to regain its former influence and avoid a number of deficiencies characteristic of its behaviour in more influential periods. In making a critical but constructive and fraternal assessment of Fairbrother's work, it essential to start by stressing the common points of agreement.
The East Asian Phenomenon: The Consensus, the Dissent, and the Significance of the Present Crisis
Authors: Lo Dic
Published: January 2010

This article offers an interpretation of East Asia's on-going financial and economic crisis, and of its developmental achievements in the previous decades known as the ‘East Asian miracle’. The interpretation centres on the notion of a regime of accumulation that covers the region as a whole. It submits that the competitive advantages and disadvantages of the regime rest on the interaction between the region's economic institutions and world capitalist development. This interaction has been, in turn, mediated by a range of history-specific developments in East Asian economies and societies.
Contradictions of European Integration
Authors: Carchedi Bruno , Carchedi Guglielmo
Published: January 2010

The central thesis of this article is that, besides the imperialism of some of the EU member countries (national imperialisms), there exists also imperialism of the EU as a whole. The thesis is argued theoretically and illustrated by considering the following: first, relations between the EU and the Central and Eastern and European Countries; second, the Common Agricultural Policy; third, the common military policy; and fourth, the Schengen System (i.e., the common immigration policy).
Russia's Crises
Authors: Simon Rick
Published: January 2010

AT THE END OF 1997, Russia's economic situation at last appeared to be improving. Inflation was down to single figures; official statistics suggested the level of production was beginning to increase, having declined by 50 percent since the collapse of the USSR; and there was a healthy trade surplus on the back of high oil prices. Confidence in the rouble was on the up and in January 1998 it was redenominated at what seemed to be a comparatively stable exchange rate against the dollar of around 6:1. Since then, however, Russia has fallen spectacularly into its most severe political and economic crisis since 1992. This crisis, I will argue, has its roots primarily in the specific character of post-Soviet Russia's political economy and, despite a steadying of the ship under new prime minister Primakov, will remain a constant feature of Russian political and economic life.
Loyalist Political Identity After the Peace
Authors: Finlayson Alan
Published: January 2010

This article looks at the ways in which conceptions of Loyalist identity have been affected by the current political conjuncture in Northern Ireland. It argues that claims about cultural and political group identity are central to Loyalist political discourses and that the way in which this identity is figured is both variable and limited. Analysing the rhetoric of both the Democratic Unionist Party (DUP) and the Progressive Unionist Party (PUP) the article shows how the reactions of these two parties to the ‘peace process' turn, in part, on (re)definitions of group identity shaped out a discourse concerned with authenticity and betrayal. From this basis the article explores the relationship of class identity to the formation of Loyalism and speculates as to the ways in which these parties might develop their imagining of identity as the peace process unfolds. It pays particular attention to the ways in working-class politics might become particularly central to the PUP.
The Antecedents and Consequences of Market Orientation in Australia
Authors: Pulendran Sue , Speed Richard , Widing Robert E.
Published: January 2010

The subject of market orientation has been of interest to both researchers and practitioners for several years. The work of Jaworski and Kohli (1993) inspired a substantial body of literature that empirically examined the antecedents and consequences of a market orientation. This article contributes to that body of literature by investigating the antecedents and consequences of market orientation in Australia. The results successfully replicate the Jaworski and Kohli findings, within an Australian environment. Results illustrate that understanding the culture, activities and processes associated with market‐oriented activity have significant implications for organisations in Australia.
Market Orientation and Company Profitability: Further Evidence Incorporating Longitudinal Data
Authors: Dawes John
Published: January 2010

This study examines the association between market orientation and company profitability. It incorporates two methodological approaches that have generally not been used in previous research. First, it uses lagged company and environmental control variables in the data analysis, to better discern their effects on profitability and, hence, clarify any relationship between market orientation and perfor Mance. Second, it analyses the individual components of market orientation and their relationships with business profitability separately. The study finds that, of the components of a market orientation, a competitor orientation emerges as the variable with the strongest association with perfor Mance. This association is robust in two models, one with solely cross‐sectional data, and the other with lagged control variables. In simple terms, the strongest distinguishing feature of high‐profit firms in this study is that they are very attuned to the activities and characteristics of competitors. For managers, this reinforces the view that while a customer orientation is vital, competitor intelligence activities may also be a key factor in ensuring high perfor Mance. The implication for researchers is that each component of market orientation should not necessarily be assumed to have equally strong associations with profitability.
Measuring Market Orientation: Are There Differences Between Business Marketers and Consumer Marketers?
Authors: Mavondo Felix T. , Farrell Mark A.
Published: January 2010

The paper investigates issues of scale equivalence and generalisability across different populations. This area of research is important because it allows for valid comparisons to be made when studies investigate the same constructs across qualitatively distinct populations. The study investigates the generalisability of the Narver and Slater (1990) and the Kholi, Jaworski and Kumar (1993) models of market orientation. Results indicate that the Narver and Slater model of market orientation is understood equivalently across different populations (i.e. it is more generalisable). Thus, on the basis of our results, researchers undertaking cross‐cultural, cross‐country, cross‐group or cross‐industry comparisons of market orientation would choose the Narver and Slater approach.
Beta and Return: Implications of Australia's Dividend Imputation Tax System
Authors: Faff Robert , Hillier David , Wood Justin
Published: January 2010

US studies have consistently reported that the relationship between beta and return is less steeply sloped than that implied by the simple CAPM. The introduction of a dividend imputation tax system in Australia and other tax law differences suggest the relationship between beta and return may be more steeply sloped in this country. Empirical evidence subsequent to the introduction of the dividend imputation tax system in July 1987 supports this hypothesis. Further, it is found that no such change occurs in the US market over this time period, which strengthens the conclusion that the finding is tax-driven.
The Demutualisation of AMP Society: An Example of the Valuation of Collars Comprising Asian Options
Authors: Easton Stephen A. , Pinder Sean M.
Published: January 2010

A number of Australian mutual organisations have recently been demutualised and restructured as public companies. In the case of AMP Society, a cottar comprising average price, or Asian, options formed part of the financial structuring of the demutualisation process. We value the collar and demonstrate that decisions made by policyholders during the demutualisation process are likely to have been affected by their level of uncertainty with respect to the value of AMP shares. This finding has implications as to the quantity of information provided to policyholders during the demutualisation process.
Spare Debt Capacity: Company Practices in Australia, Britain and Japan
Authors: Allen D. E.
Published: January 2010

The paper reports the residis of an investigation of the extent to which a sample of listed Australian, British and Japanese companies maintain spare borrowing capacity. Unused debt capacity is not directly observable and can be in various forms, including committed and uncommitted lines of credit or a level of borrowing that is, substantially below an upper limit. Some 60% of Australian, 90% of British and 32% of the Japanese respondents follow this policy. Regression analyses suggest that spare borrowing capacity is linked to company size, proxies for the proportion of company value in intangible form, and upper limits on borrowings.
Does More Market-Wide Information Originate While an Exchange is Open: Some Anomalous Evidence from the ASX
Authors: Mian G. Mujtaba , Adam Christopher M.
Published: January 2010

The common belief based on accumulated evidence from the US and Japan is that most price-relevant information originates while financial markets are in operation. In this paper, we present evidence from the Australian Stock Exchange (ASX) that contradicts this view. We find that a larger proportion of the information affecting the Australian equities in fact arrives during the overnight closing period of the ASX. We develop and implement tests to understand this puzzle. The results indicate that the primary source of this anomalous finding is the dominant influence of the information originating in the US, where businesses and exchanges open and close during the overnight period of the ASX.
An Examination of the Fama and French Three-Factor Model Using Commercially Available Factors
Authors: Faff Robert
Published: January 2010

In this paper we show that reasonable proxies for the FF factors can be readily constructed from ‘off the shelf’ style index data. We employ a GMM testing procedure in which the main focus of the tests is to assess the overriding validity of the restrictions placed on the empirical model framework. In addition, we augment the system of equations with a simple mean equation for each of the three FF risk factors, thereby permitting a direct estimate of the associated risk premia. The key findings are as follows. First, the proxy mimicking portfolios do represent pervasive sources of exposure across a sample of industry-sorted portfolios. Second, based on the outcome of all the GMM tests performed on our sample, the evidence seems to quite strongly support the three-factor Fama and French model. Third, when we take into account the estimated risk premia produced by our framework, the conclusion favouring the model has to be downweighted somewhat. Nevertheless, the estimated risk premia for the market and for the book-to-market factor are typically found to be significantly positive. Our main ‘perverse’ finding relates to the size risk premium which in our sample is typically significantly negative. This is consistent with other recent evidence of a ‘reversal’ in the size effect.
The Effect of Organisational Culture Perceptions on the Relationship Between Budgetary Participation and Managerial Job-Related Outcomes
Authors: Subramaniam Nava , Ashkanasy Neal M.
Published: January 2010

We examine the impact of managers' perceptions of their organisational culture (OC) on the relationship between budgetary participation (BP) and managerial job-related outcomes, operationalised as managerial performance and job-related tension (JRT). Does the relationship between BP and job-related outcomes would depend on managers' perceptions of innovation and attention to detail? Data supported predictions that increasing BP would lower JRT for managers perceiving a high emphasis on innovation within their OC, regardless of their perceptions of an emphasis on attention to detail. When managers perceived low innovation, however, their perception of level of attention to detail had a significant effect on the relationship between BP and JRT. More specifically, increasing BP was found to decrease JRT for managers who perceived low innovation and low attention to detail. For managers who perceived low innovation and high attention to detail, however, this effect was attenuated. Finally, the positive relationship between BP and managerial performance was not found to he affected significantly by managers' OC perceptions.
An Income Efficiency Model Approach to the Economic Consequences of Osha Cotton Dust Regulation
Authors: Feroz Ehsan H. , Raab Raymond , Haag Stephen
Published: January 2010

This paper used Data Envelopment Analysis IDEA) to test the economic consequences of the Occupational Health and Safety Administration (OSHA) cotton dust standards by comparing the relative efficiency of firms affected by cotton dust in SIC 2200 and 2300 for the years before and after the Supreme Court upheld the regulation in 1981. Accounting-based inputs of common equity, total assets and production costs were minimized, while total revenue was maximized. Using available Compustat firms, we found that the surviving firms under stiff foreign competition had become more efficient during the post-regulatory period as predicted. The results indicate the usefulness of DEA as an alternative method of testing the economic consequences of a regulation.
The Structure of Middle Management Remuneration Packages: An Application to Australian Mine Managers
Authors: Kent Pamela , Siu Michael , Walker Julie
Published: January 2010

This paper investigates the composition of remuneration packages for middle managers and relates the structure of remuneration contracts to firm-specific attributes. A statutorily defined position in a single industry is studied as an example of middle management. This allows us to control for differences in task complexity across managers and industry-induced factors that could determine differences in remuneration contracts. Higher-risk firms are expected to pay their mine managers a greater proportion of variable salaries and market and/or accounting-based compensation than low-risk firms. Results indicate that high-risk firms pay a higher proportion of variable salaries and more compensation based on market and/or accounting performance.
Equity Market Valuation: Assessing the Adequacy of Value Measures to Predict Index Returns
Authors: Guido Ron , Walsh Kathleen
Published: January 2010

Following the work of Lee, Myers and Swaminathan (1999), we develop robust tests of their intrinsic value measure, along with other traditional measures of value, for the Australian Stock Market. Specifically, we apply the tests to a broadly matched version of the Australian Asia Pacific Extra Liquid Series (APELS), which was recently introduced to Australia. A primary motivation for the paper was to assess the suggestion implied in the US study of a violation of capital market efficiency, where the use of publicly available information, namely a fundamental valuation measure using consensus analysts forecasts, could be used to predict returns. Our results do not support the conclusions reached by Lee, Myers and Swaminathan (1999). Possible reasons for this are the differing Market structures, the use of a different Index or the use of alternative statistical tests.
On The Determinants of Derivative Usage by Australian Companies
Authors: Nguyen Hoa , Faff Robert
Published: January 2010

This paper provides an examination of the determinants of derivative use by Australian corporations. We analysed the characteristics of a sample of 469 firm/year observations drawn from the largest Australian publicly listed companies in 1999 and 2000 to address two issues: the decision to use financial derivatives and the extent to which they are used. Logit analysis suggests that a firm's leverage (distress proxy), size (financial distress and setup costs) and liquidity (financial constraints proxy) are important factors associated with the decision to use derivatives. These findings support the financial distress hypothesis while the evidence on the underinvestment hypothesis is mixed. Additionally, setup costs appear to be important, as larger firms are more likely to use derivatives. Tobit results, on the other hand, show that once the decision to use derivatives has been made, a firm uses more derivatives as its leverage increases and as it pays out more dividends (hedging substitute proxy). The overall results indicate that Australian companies use derivatives with a view to enhancing the firms' value rather than to maximizing managerial wealth. In particular, corporations' derivative policies are mostly concerned with reducing the expected cost of financial distress and managing cash flows. Our inability to identify managerial influences behind the derivative decision suggests a competitive Australian managerial labor market.
Technical Language, Advice Understandability, and Perceptions of Expertise and Trustworthiness: The Case of the Financial Planner
Authors: Joiner Therese A , Leveson Lynne , Langfield-Smith Kim
Published: January 2010

This study examines the relationships among the extent of use of technical language in an advisory context, the understandability of the advice offered, perceptions of the adviser's expertise and trustworthiness, and the subsequent persuasion effects. The responses of 186 participants, randomly assigned to view one of two videotapes (one tape low in the use of technical terms, the other high), were analysed using structural equation modelling. The results indicate that the overuse of technical language in a lay client consultation reduces clients' understanding of the advice offered. Lowered advice understandability negatively affects clients' perceptions of the professional adviser's expertise and trustworthiness and, subsequently, client's intention to seek the professional's advice.
Organisational Learning, Transformational Leadership and Implementation of Continuous Quality Improvement in Canadian Hospitals
Authors: LeBrasseur Rolland , Whissell Robert , Ojha Abhoy
Published: January 2010

Implementing continuous quality improvement (CQI) in acute care general hospitals was investigated as an occurrence of a paradigm shift and organisational learning. Presented within a contextual framework, two case studies are reported, and are complemented by a survey of hospitals operating in Ontario, Canada. The findings support a top-down approach where the CEO exhibits transformational leadership and aligns the organisation's strategy, structure, and culture to CQI. The conflicting stakeholder goals of quality of care and cost savings are harmonized. Organisational members undergo both a cognitive and behavioural adjustment centred on teamwork, facilitated by training and education. Teamwork and involvement of physicians remain long-term challenges.
Developing Effective Electronic Information Seekers
Authors: Debowski Shelda
Published: January 2010

As electronic sources of information expand and build depth, there is an increasing reliance on information seeking to support work activities and decision-making. Despite the growing importance of these information sources, little is known about the process of information seeking, and the ways in which skills may be improved. This paper describes a series of studies that seek to identify factors which enhance information seeking, and, in particular, to explore the relationship between motivational influences and information search strategy. The results indicate the need for reviews of organisational training and infrastructure to ensure workers are sufficiently skilled in basic information seeking.
Do Differences Matter? Understanding Demography-Related Effects in Organisations
Authors: George Elizabeth , Chattopadhyay Prithviraj
Published: January 2010

This paper reviews a stream of research that examines the processes underlying effects related to demography and demographic differences. Three broad areas of research are discussed: (i) research examining whether differences in functional experience have an effect on how individuals view and interpret situations, (ii) research that examines whether and how dissimilarity in terms of demographic characteristics such as functional background, race, sex and age influences interpersonal dynamics and individual attitudes and behaviours, and (iii) research examining if effects related to work status dissimilarity parallel those of other demographic variables. We conclude with a discussion of avenues for future research, and managerial implications of this research.
‘You Didn't Hear it From Us But…’: Towards an Understanding of Rumour and Gossip in Organisations
Authors: Michelson Grant , Mouly V. Suchitra
Published: January 2010

This paper investigates an important topic in organisational behaviour that hitherto, has not received enough attention—informal communications, including grapevine activity, rumour and gossip. We show how this topic can illuminate potential new insights in a range of related areas in organisational behaviour. We further outline an agenda for research on rumour and gossip in organisations, paying careful attention to a number of individual-level and organisational-level variables. Finally, methodological issues and ways of collecting data are considered; we suggest that many research techniques can be usefully employed in the study of rumour and gossip.
Organisational Strategies for Sustainable Development: Developing A Research Agenda for the New Millennium
Authors: Banerjee Subhabrata Bobby
Published: January 2010

Environmental issues have been on the agendas of industry and academia for nearly thirty years. While the bulk of this research has focused on environmental sustainability, the late 1990s saw a broadening of the scope of this field of inquiry to include social, environmental and economic sustainability. In this paper I discuss the emergence of organisational strategies for sustainable development and their implications for management theory and practice. I discuss the emergence of environmental issues and their implications for strategy, and describe briefly the theoretical and practical implications of integrating environmental and social issues into corporate strategies. I also discuss my own work in this field and how it relates to other research.
Receptivity to Careers in International Work—Abroad and at Home
Authors: Tharenou Phyllis
Published: January 2010

More employees now have careers in international work (i.e. across countries) than before, some abroad but increasingly more in domestic jobs with international responsibilities (DJIRs). Theory has not caught up with these trends. This paper uses constructs from social cognitive career theory (SCCT) to propose explanations of how interest develops in careers in international work abroad and at home, contrasting explanations for the two types of work.
A Comparison of Two Widely Applied Models of Shareholder Returns in the Context of Takeover Offer Gains for Australian Bidders
Authors: Simmonds David P.
Published: January 2010

The impact of different modelling and testing procedures is explored on inferences concerning expected acquisition benefits to bidding shareholders. Two widely accepted return models are examined and found to imply different outcomes for Australian bidding shareholders, despite controlling for potential size- and survivor-related biases and also curbing the influence of extreme observations. A comparison of bidder returns with typical reference portfolio values, via the (0, 1) market model, finds significant wealth gains for bidding shareholders. Those gains evaporate when bidder returns are measured against their own performance standards, via the market model.

The choice of return model is not the only decision affecting conclusions. Traditional tests are also examined and found to be unreliable. Conflicting conclusions are reached, under the market model, according to the chosen return measure. The inadequacy of traditional tests is demonstrated and the conflict eliminated when more robust bootstrapping tests are applied. Conclusions are more consistent for traditional tests when the (0, 1) market model is used.
Volatility and Information Linkages Across Markets and Countries
Authors: Fleischer Petra
Published: January 2010

This study examines information and volatility linkages across the equity, money and bond markets within Australia and the US and across the two countries. These volatility linkages are due to common information and information spillovers caused by cross-market hedging. We employ a rational expectations framework in which information arrives randomly, causing volatility to be stochastic. The model imposes restrictions on the moments of returns which we estimate using GMM. We find that the model fits extremely well. The parameters are very stable across the various bivariate specifications. Cross-market linkages estimated using GMM are much stronger than those found with the commonly used proxies for volatility.
The Relationship Between Ownership Structure and Performance in Listed Australian Companies
Authors: Welch Emma
Published: January 2010

This paper examines the relationship between ownership structure and corporate performance in Australian listed companies. The study applies the models advanced by Demsetz and Villalonga (2001), examining the relationship between ownership and performance when ownership is modelled as a multi-dimensional endogenously determined variable. OLS results suggest that ownership is significant in explaining performance. However, when endogeneity is taken into account, ownership is not statistically dependent on the performance measure. Finally, previous research by authors including Morck, Schleifer and Vishny (1988) suggests that the relationship between ownership and performance is nonlinear. We fit a generalised nonlinear model that nests models advanced previously. Results provide limited evidence of a nonlinear relationship between managerial share ownership and firm performance.
Tendering and Bidding for Access: A Regulator's Guide to Auctions
Authors: Menezes Flavio M. , Pitchford Rohan , Wait Andrew
Published: January 2010

Tenders and traditional auctions are increasingly being used in regulation; as a consequence it is essential regulators have an understanding of the basics of auction theory. There is no simple prescription for the design of an auction or tender that will fit all situations; moreover, the costs from inappropriate auction and tender design can be high For example, while a second-price sealed bid auction is efficient in the absence of collusion, if participants can collude then such auction formats can result in very low revenue. Low revenue can also result with a second-price auction when there are few bidders and no reserve price.
Australian Evidence Concerning the Information Content of Economic Value-Added
Authors: Worthington Andrew C. , West Tracey
Published: January 2010

Pooled time-series, cross-sectional data on 110 Australian companies over the period 1992–1998 is employed to examine whether the trademarked variant of residual income known as economic value-added (EVA®) is more highly associated with stock returns than other commonly-used accounting-based measures. These other measures of internal and external performance include earnings, net cash flow and residual income. Three alternative formulations for pooling data are also employed in the analysis, namely, the common-effects, fixed-effects and random-effects models, with the fixed-effects approach found to be the most empirically appropriate. Relative information content tests reveal returns to be more closely associated with EVA® than residual income, earnings and net cash flow, respectively. An analysis of the components of EVA® confirms that the GAAP-related adjustments most closely associated with EVA® are significant at the margin in explaining stock returns.
Financial Risk Exposures in the Airline Industry: Evidence from Australia and New Zealand
Authors: Loudon Geoffrey F.
Published: January 2010

Important financial risks facing the airline industry include interest-rate, currency and fuel-price risk. This paper estimates the exposure to these risks within the airline industry of Australia and New Zealand, using both linear and non-linear specifications, for a variety of horizon lengths. Evidence for exposure, both symmetric and asymmetric, tends to strengthen as the return horizon is lengthened. Exposure to these financial risks is largely unchanged by the terrorist attacks and the collapse of a major competitor in September 2001.
The Equity Wealth Effects of Method of Payment in Takeover Bids for Privately Held Firms
Authors: da Silva Rosa Raymond , Limmack Robin , Woodliff David
Published: January 2010

In takeover bids for unlisted firms, the typically more closely-knit target shareholders have the bargaining power and incentives to force the bidder's managers to disclose their private information about the value of their firm's shares. The acceptance of share-based offers by private-target shareholders thus conveys favourable information about the net present value of the takeover, unlike the case in share-based bids for listed targets. We document that successful bids for private targets are associated with significantly positive abnormal returns to bidders over the announcement period, a result that diverges from findings based on bids for public targets. Contrary to Chang (1998), share-based bids for Australian private targets are not associated with higher abnormal returns to bidders. Most bids by listed companies for private companies are cash-based and generate a positive return. Our results are consistent with the explanation that lower competition for private targets allows acquirers to capture more of the economic rent from takeovers by offering cash bids.
Market Returns to Acquirers of Substantial Assets
Authors: da Silva Rosa Raymond , Nguyen Thuy , Walter Terry
Published: January 2010

Does poor post-acquisition performance characterise firms that make non-M&A acquisitions? We investigate the wealth effects of substantial asset acquisitions (i.e. acquisitions that cost over $10 million) on acquiring firms' shareholders. We find significant abnormal positive market reaction to asset acquisition announcements and contrary to findings for firms undertaking M&As, the acquiring firms perform exceptionally well post-acquisition. Our findings are robust to the research method weaknesses common to many studies of long-term performance and we control for free-cash-flow as well. Our results contradict the hubris hypothesis of acquisitions and lend weight to the argument that the auction-style process that characterizes corporate takeover bids contributes to overpayment.
Australian Divestiture Activity: An Examination of Gains to Sell-Off Announcements
Authors: Cooney Mary Rose , Finn Frank , Karl Angela
Published: January 2010

This study examines the source of gains associated with Australian divestiture activity, defined as a voluntary modification of the firm's productive assets by a sell-off of a complete operating division or wholly-owned subsidiary of the divesting firm The sell-off announcement produces positive average abnormal returns of 1.15% over the two-day announcement period. We conclude that the gains arise predominantly from divestitures that have a strategic focus as demonstrated by, first, the divested unit is unrelated to the firm's core activities (a strategic divestiture), second, the significance of the strategic variable in explaining the positive market reaction in regression analysis, and third, the finding of more significant results where the intended use of proceeds of the sell-off is for strategic purposes.
Are Mining-Exploration Stocks More Prone to Informed Trading Than Mining-Production Stocks?
Authors: Poskitt Russell
Published: January 2010

This paper examines the level of informed trading in mining-exploration and production stocks listed on the Australian Stock Exchange. The probability of informed trading is higher in exploration stocks. However, this same pattern is detected in a sample of control-stocks matched by trading activity, suggesting that the difference in informed trading between production and exploration stocks reflects the impact of differences in trading activity documented in prior research. These results show that mining-exploration stocks experience the same level of informed trading as other less actively traded stocks in other industries.
Movements in Australian Stock Volatility: A Disaggregated Approach
Authors: Sault Stephen
Published: January 2010

This paper applies a disaggregated approach to examine stock volatility at the firm, industry and market level in Australia. We employ the models advanced by Campbell, Lettau, Malkiel and Xu (2001) to carry out this disaggregation, and extend their methodology to incorporate: formal tests of changes in volatility as well as correlations; and the Hodrick-Prescott Filter to identify trends in the series. A trend of decreasing volatility is identified at all levels of aggregation, which is further supported by robust OLS analysis. Results also provide strong support for an increase in correlations between industries over the past 30 years. Coinciding spikes in the volatility and correlation series during periods of market stress has significant implications for portfolio diversification. No support is found for a month-of-the-year effect on volatility or correlations.
Applying Evolutionary Search to a Parametric Family of Auction Mechanisms
Authors: Byde Andrew
Published: January 2010

In this paper we describe an evolution-based method for evaluating auction mechanisms, and apply it to a space of mechanisms including the standard first- and second-price sealed bid auctions. We replicate results known already in the Auction Theory literature regarding the suitability of different mechanisms for different bidder environments, and extend the literature by establishing the superiority of novel mechanisms over standard mechanisms, for commonly occurring scenarios. Thus this paper simultaneously extends Auction Theory, and provides a systematic method for further such extensions.
Bankruptcy Prediction: Application of Logit Analysis in Export Credit Risks
Authors: Chi Li-Chiu , Tang Tseng-Chung
Published: January 2010

To date, relatively little empirical research has been conducted on the efficacy of the trade credit risk prediction model in the context of international trade applications. Using a sample of listed firms in seven Asia-Pacific capital markets (Hong Kong Japan, Korea, Malaysia Singapore, Thailand, and the Philippines) from 2001 to 2003 with available data, we have made a preliminary attempt at empirically studying a predictive export credit risk model based on financial ratios, firm-specific characteristics (size, maturity, R&D expenses, and depreciation expenses), and country risk measures. The results show that our Logit models demonstrate decent classification accuracy and robustness. Specifically, the prediction ability is approximately equal to classification ability when the model is applied to a testing sample. Furthermore, the results indicate that the closer the analysis is to the credit crisis occurrence, the more improved the classification accuracy and prediction accuracy are.
Thirty Years of Published Research in the Australian Journal of Management
Authors: Gallagher David R.
Published: January 2010

This study reviews 30 years of scholarly research published in the Australian Journal of Management (AJM) over the period 1976–2005. The study examines the productivity, influence, and contribution of management research in Australia. In the past three decades, AJM has published 406 research articles from 458 different authors and co-authors. Over the past 30 years, the four most prolific publishers were Philip Brown (11 papers), Philip Yetton (9), Ray Ball (8) and Terry Walter (8). In the last decade alone, Robert Faff and Raymond da Silva Rosa have published the greatest number of AJM articles (6). The Journal has been most supported over the past three decades by authors from AGSM, UNSW, UWA, UQ, Monash, Melbourne, ANU and Sydney. The top six institutions contributed more than half of all AJM publications. The AJM has also experienced increasing contributions from finance articles in recent years, accounting for 51% of total published articles in AJM. Opportunities and challenges remain ahead for the AJM, particularly when one considers the decision by The University of Chicago's Journal of Business to cease future publications beyond 2006, citing the establishment of specialist journals.
Bayesian Prediction, Entropy, and Option Pricingx
Authors: Foster F. Douglas , Whiteman Charles H.
Published: January 2010

This paper studies the performance of the Foster-Whiteman (1999) procedure for using a Bayesian predictive distribution for the future price of an asset to compute the price of a European option on that asset. A technical contribution of the paper is the description of a sequential importance sampling procedure for implementing an informative prior that reflects and rewards past option-pricing success. The risk-neutralization of the predictive distribution is accomplished by Stutzer's (1996) constrained KLIC-minimizing change of measure. The procedure is used in weekly pricing of July and November options on soybeans on the Chicago Board of Trade from 1993–1997, and produces option prices that mimic market prices much more closely than those of the Black model or those produced by risk-neutralizing a nonparametric predictive.
Investigating the Performance of Alternative Default-Risk Models: Option-Based Versus Accounting-Based Approaches
Authors: Gharghori Philip , Chan Howard , Faff Robert
Published: January 2010

In this paper we evaluate the performance of three alternate default-risk models, seeking to find that measure which performs best, using a comprehensive sample drawn from the Australian equities market. The first two models are option-based models and are derived from Merton's (1974) insight that equity can be viewed as a call option on a firm's assets. In the first model, equity is modelled as a standard call option. In the second model, equity is modelled as a path-dependent barrier option. The third model is created using accounting ratios and is similar to Altman's (1968) Z-Score. To assess which of the models is superior, we consider variations of each model and then rely on prediction-oriented tests that focus on whether a firm subsequently defaults. Our results show that the option-based models clearly outperform their accounting ratio counterparts. Furthermore, our analysis suggests that the option-based models are very successful at ranking firms by default probability. It is noteworthy that the performances of the option-based models are difficult to distinguish from each other.
Administrative Heritage: An Exploratory Study of Large Australian Firms
Authors: Zalan Tatiana , Lewis Geoffrey
Published: January 2010

In this study we address the existing gap in the literature on the strategic evolution of Australian MNCs and the effect their administrative heritage, developed in the domestic market, had on their ability to compete internationally. We explore the administrative heritage of eleven large Australian-owned firms in four industries and conclude that these firms had a distinct administrative heritage—domestic portfolio mentality and reliance on strategic assets for competitive advantage, coupled with limited FDI traditions. We contend that the firms' administrative heritage explains in part their lack of success in international markets. Our findings support the propositions advanced by other scholars (e.g. Bartlett & Ghoshal 1989; Collis 1991) that a firm's administrative heritage establishes unique constraints on strategic choice.
The Determinants of Credit Ratings: Australian Evidence
Authors: Gray Stephen , Mirkovic Alexsander , Ragunathan Vanitha
Published: January 2010

We examine the impact that various financial and industry variables have on credit ratings issued for Australian firms by Standard and Poor's. Our ordered probit model indicates that interest coverage and leverage ratios have the most pronounced effect on credit ratings. Profitability variables and industry concentration measures are also important. Financial variables are helpful in discriminating between A- and BBB-rated firms, but are less precise in separating AA- and A-rated firms. We also document a consistent trend towards lower ratings—the standard required to achieve a particular rating is increasing over time.
Momentum in Australia—A Note
Authors: Durand Robert B. , Limkriangkrai Manapon , Smith Gary
Published: January 2010

Our note examines the momentum effect in Australia using the J-month/K-month methodology of Jegadeesh and Titman (1993, 2001). Our sample consists of stocks listed on the Australian stock exchange from January 1980 to December 2001. We do not find evidence for a momentum effect in Australia during this period. Rather, we find evidence of significantly positive returns for ‘loser’ portfolios in July-the first month of the Australian financial year.
Psychic Distance and Australian Export Market Selection
Authors: Brewewer Paul
Published: January 2010

The Uppsala internationalisation model developed the concept of psychic distance in the international business literature and proposed that firms select international markets based on ‘psychic proximity’. The actual operationalisation of psychic distance in research is usually undertaken by estimating or calculating in some fashion the real or perceived ‘differences' between the firm's environment and target countries. However this does not reflect the original definition of the concept which emphasised the importance of information flows from country market to firm. This paper first demonstrates the wide use of the ‘differences' measures in research and shows how that procedure is problematic. The paper suggests measuring psychic distance through not only differences between the firm and the target country but also other important measures of information flow. This is especially relevant to the Australian context where the country market selection of firms does not generally match country similarities. An information based measure of psychic distance is developed and is then applied to psychic distances between Australia and twenty five other countries. Actual Australian exporter behaviour in terms of international market selection supports the predictive powers of the new measure. Suggestions for future research are made.
Violation of the Psychological Contract: The Mediating Effect of Relational Versus Transactional Beliefs
Authors: Grimmer Martin , Oddy Matthew
Published: January 2010

The nature of employees' psychological contracts has gained relevance in the last decade due to changes in the employment relationship. However, little research has been conducted in Australia. The present study examined the psychological contracts of 90 MBA students in two Australian universities and the effects of contract violation on indices of organisational behaviour. Survey batteries, consisting of the Psychological Contract Scale, measures of commitment and trust, and of perceptions of contract violation, were administered. Findings indicated that the perception of contract violation was associated with lower organisational commitment and trust. Significantly, it was found that the impact of contract violation on commitment and trust was mediated by relational, but not by transactional, contract scores.