bluuebunny/crossref_metadata_2025 huggingface dataset:
Fatigue behaviour and life predictions of case‐hardened steels
Authors: YIN F. , FATEMI A.
Published: February 2009

This paper presents experimental and analytical results on fatigue behaviour of case‐hardened steel. Fully reversed strain‐controlled constant amplitude axial fatigue tests were performed on through‐hardened case, through‐hardened core and case‐hardened steel specimens. Surface versus sub‐surface cracking and the role of residual stresses and their relaxation are discussed. Multi‐layer models of the case‐hardened specimens were used to predict crack nucleation sites as well as fatigue lives, and the predictions corresponded well with the experimental results. Linear elastic fracture mechanics (LEFM) was also used to conduct fatigue crack growth analysis to further explain the experimental observations from the fracture surfaces of the case‐hardened specimens. A fatigue strength estimation method based on hardness and inclusion size was used to estimate the fatigue limit of the materials investigated. Fractography of fracture surfaces and crack nucleation location are also presented.
A BAYESIAN AUDITING MODEL
Authors: Bailey Andrew D. , Jensen Daniel L.
Published: February 2009

A Bayesian procedure is demonstrated that binds together multiple audit tests in a multiple‐stage decision analysis. The analysis uses information provided by one test in the design of subsequent tests even when subsequent tests are directed at a different set of system characteristics. The analysis is applied to compliance and substantive tests undertaken to ascertain the fairness of a particular account balance. Although the analysis is not operational as presented, it provides a logical framework that clarifies the complex conceptual structure of the problem and enables the identification of impediments to its implementation.
ACCOUNTING STUDENTS AT UNIVERSITY AND TECHNICAL INSTITUTE IN NEW ZEALAND
Authors: Miller R. K. , Morrison A. A.
Published: February 2009

The first year intake of accounting students at Auckland University and the three technical institutes that serve the Auckland region were surveyed to find out: what characteristics differentiate university and technical institute students; their reasons for choosing to major in accounting; their perceptions of their own course and institution vis‐á‐vis the alternative course and institution; and the relative importance of family, friends and school personnel as influences on their choice of tertiary education. In general, university accounting students are significantly older (due mainly to the fact that university students tend to remain longer at secondary school), are better qualified academically and come from families higher on the socioeconomic scale. It was also found that university students perceive their course to have higher status, while stated reasons given by technical institute students revolve around the practicability and vocational orientation of the course. Parents, particularly father, and friends exert far more influence on educational and vocational decision‐making than any other source, including school personnel.
A QUANTITATIVE DATA BASE TO EVALUATE THE PERFORMANCE OF THE CORPORATE
Authors: Matolcsy Z. P.
Published: February 2009

Currently, there is not an adequate data base which would cover the performance of the corporate sector at the industry level. The Australian Financial Systems Inquiry has initiated the development of such a data base, which includes both financial and market variables to quantify the performance of the different industry groups for the period of 1963–1978. This data base can assist both the academic researcher and the financial practitioner in their work. The objective of this paper is to describe the content of this data base.
THE CORE OF THE CURRICULUM FOR ACCOUNTING UNDERGRADUATES ‐ AN AUSTRALIAN STUDY*
Authors: Flanagan J. , Juchau R.
Published: February 2009

This paper reports a study that adapted an American curriculum questionnaire to identify a common core of accounting knowledge from a list of 190 topics. Senior practitioners' and educators5 perceptions were surveyed to reach conclusions about the content of the common core and also the separate cores of accounting knowledge for the areas Financial Accounting, Managerial Accounting and Auditing.
RANDOM WALKS ON THE STOCK EXCHANGE OF SINGAPORE
Authors: Chiat Hwang Soo , Finn Frank J.
Published: February 2009

Monthly price changes on the Stock Exchange of Singapore are tested for normality and serial dependence. It is found that the normal distribution is a good description of most of the data studied and that successive price changes are essentially independent. This is consistent with “weak form” efficiency.
STANDARD SETTING FOR OIL AND GAS ACCOUNTING: AN ANALYSIS USING ALLISON'S APPROACH
Authors: Betkaoui Ahmed
Published: February 2009

The three models advanced by G. T. Allison in Essence of Decision are applied to FASB's Statement of Financial Accounting Standards No. 19 to explain the adoption of the “successful‐efforts” method. In the first model, the decision is explained as the action that reflects a consistent, value maximizing choice within specific constraints. In the second, it is interpreted as the “output” of the FASB regulated by standard procedures, namely in recognizing an asset. In the third, it is viewed as a political resultant in a struggle involving interest groups. The analysis revealed the usefulness and some weaknesses of the Allison Approach to an understanding of the standard setting decision by the FASB. The approach is applicable world‐wide to other standard setting scenarios.
THE ACCURACY OF CUMULATIVE INCOME
Authors: Brief Richard P.
Published: February 2009

The misconception that cumulative income over several periods is an accurate number is discussed and explained in terms of the “single‐asset” example that often characterizes accounting methodology.
The Relationship Between Unsystematic Security Returns and Earnings Forecast Errors*
Authors: Loh Alfred L.C. , Walter Terry S.
Published: February 2009

This paper extends the Australian evidence on the information content of earnings announcements by considering both the sign and magnitude of unexpected earnings for a sample of 120 firms in the period 1964–1972, and a further 117 firms for 1972–1980. Results at both the portfolio level and the individual security level are highly significant and are consistent with those documented in both the United States and New Zealand.
A Comparative Study of Gini's Mean Difference and Mean Variance in Portfolio Analysis
Authors: Okunev John
Published: February 2009

The methods traditionally used for comparing uncertain prospects are the mean variance and the stochastic dominance approaches. Yitzhaki has recently presented an alternative model based upon Gini's mean difference to compare uncertain prospects. The mean Gini model is similar in nature to the mean variance model in that it uses a two‐parameter statistic to describe the probability distribution of risky returns. Theoretically, the mean Gini model is consistent with the behaviour of investors under conditions of uncertainty for a wider class of probability distributions. Thus Gini's mean difference appears to be more adequate than variance as a measure of risk. This study firstly generated the mean Gini efficient frontier and secondly compared the mean variance efficient frontier with it. For the sample data employed, the mean variance model gave a very good approximation to the mean Gini model. Since the computational costs of the mean variance approach were a small fraction of those of the mean Gini approach, the theoretical advantage would not appear in this case to translate into a practical one.
The Time Series Properties of Australian Accounting Data
Authors: Taylor Stephen L. , Tress Richard B.
Published: February 2009

This paper reports the results of an examination of the time series properties of a range of accounting numbers and ratios which may be associated with firm valuation. The work extends earlier research, which has concentrated on earnings or its derivatives, and which has found that earnings numbers follow a random walk or similar stochastic process. The tests reported in this paper suggested that, during the 25 year period studied, annual changes in a wide range of accounting variables also were, for the most part, random. Significant departures from randomness occurred only in variables where there were a priori reasons for believing that serial dependence would exist.
Teaching Innovative Accounting Topics: Student Reaction to a Course in Social Accounting
Authors: Blundell Lance , Booth Peter
Published: February 2009

Accounting students experience degree programmes with a fairly ‘traditional’ range of topics that are taught with an emphasis on technique and learning the ‘status quo’. To the extent that a topic may challenge this pattern by emphasizing new concepts, questioning existing concepts, being more concerned with what accounting ‘might be’ rather than current practice, or some combination of these, some topics may be considered ‘innovative’ additions to the curriculum. Social accounting is an innovative accounting topic that has attracted considerable attention in the literature. This paper reports on an implementation dilemma encountered in a course on social accounting resulting from a clash between preferred student learning attributes and those embodied in social accounting. The use of action oriented teaching strategies to counteract this dilemma is identified. Similar problems and solutions may be applicable for other innovative accounting topics.
EVALUATING THE PERFORMANCE OF EMPLOYEES OF CHARTERED ACCOUNTING FIRMS IN AUSTRALIA
Authors: Peirson C.G. , Simnett R. , Pratt J.H.
Published: February 2009

This study contains the Australian evidence of an international study aimed at identifying those variables which influence the perceived performance of employees of chartered accounting firms. Perceived performance is hypothesised to be a function of perceived effort, perceived ability and perceived luck. The results strongly support the view that effort and ability as perceived by employees have an impact on all performance measures, while luck is perceived to have a major role in promotion prospects.
ESTIMATING RETURNS ON FINANCIAL INSTRUMENTS — DETERMINISTIC ANALYSIS
Authors: Kelly Gary , Tippett Mark
Published: February 2009

The present paper addresses the problem of estimating returns on financial instruments when there is incomplete information about the instrument's cash flows. The problem is shown to resolve itself as an exercise in numerical analysis. In theory, the true return is obtained as the solution of an integral equation, but since the required functions are incompletely specified, numerical estimating techniques must be applied. Alternative numerical methods are examined, each of which make different assumptions about the time series properties of the financial instrument's cash flows. It is shown that the estimated returns are highly sensitive to these assumptions and thus to the numerical technique used.
THE IMPACT OF UNEXPECTED EARNINGS AND DIVIDENDS ON ABNORMAL RETURNS TO EQUITY
Authors: Easton S.A. , Sinclair N.A.
Published: February 2009

This paper contributes to the empirical literature which documents the existence of a positive association between unexpected earnings and/or dividend announcements and abnormal returns to equity.

The paper addresses some of the methodological limitations evident in the literature. In particular, one methodological difficulty encountered by previous studies is that since earnings and dividend announcements are usually made contemporaneously it is difficult to assess the marginal effect of either announcement on security returns. This problem is dealt with by constructing portfolios of securities which are randomized with respect to unexpected earnings (dividends), but which are systematically ranked on unexpected dividends (earnings).

The results indicate that unexpected earnings announcements have a significant marginal impact on abnormal returns. In addition, there is evidence of an impact of unexpected dividends on returns, but it is weaker than unexpected earnings.
EXPLAINING INTRAPERIOD ACCOUNTING CHOICES: THE REPORTING OF CURRENCY TRANSLATION GAINS AND LOSSES
Authors: Taylor Stephen L. , Tress Richard B. , Johnson Lester W.
Published: February 2009

Prior to the introduction of an Australian Accounting Standard relating to the treatment of foreign currency items, we find agreement among firms on the method of translating foreign subsidiaries' assets and liabilities, but no such agreement on the method of reporting the resulting gain or loss. The reporting choice represents an intraperiod accounting decision. We show that this choice is a function of the demand for ex ante optimal risk sharing agreements between management and shareholders, although auditor identity and firm size are also found to influence the choice of reporting method. We model the policy choice as both a dichotomous and a more finely graded three‐way problem, introducing to the accounting literature an experimental technique designed to test for the existence of any mutual dependence between alternatives.
MARKET TIMING ABILITY OF POOLED SUPERANNUATION FUNDS JANUARY 1981 TO DECEMBER 1987
Authors: Sinclair N.A.
Published: February 2009

The performance of pooled superannuation funds is analysed within a framework that recognises that risk management or ‘market timing’ is an important aspect of the fund manager's decision‐making. Two broad appraoches to the issue of ‘market timing’ are adopted: first, the performance evaluation model developed by Henriksson and Merton [1981] which allows for return differentials to arise from both security selection and market timing; and second, the recursive residuals methodology of Brown, Durbin and Evans [1975] which identifies points in chronological time when the risks of the funds underwent a change.

The results indicate that only 5 out of 16 funds had significant shifts in their risk over the period of the study, all of which occurred in late 1986 to early 1987. It follows that the usual Jensen measure of performance is inappropriate for these funds since one component of their performance is due to market timing activities. The return performance of these market timing activities is significantly negative for 15 to 16 funds indicating that their timing ability is perverse. To some extent this is an artifact of the market crash of October 1987 and that all funds had a positive exposure to equities. However, due to their asset allocation policies all funds are assigned significantly positive security selection performance.
THE IMPACT OF DIVIDEND IMPUTATION ON FIRMS‘ FINANCIAL DECISIONS
Authors: Hamson Don , Ziegler Peter
Published: February 2009

This paper investigates the impact of Australia's dividend imputation system on the financial decisions to be faced by an Australian resident company. It briefly outlines the dividend imputation system as enacted, and then analyzes its economic effects on companies' dividend, financing and investment decisions.
THE TIMELINESS OF HALF YEARLY EARNINGS ANNOUNCEMENTS AND STOCK RETURNS
Authors: Sinclair Norman A. , Young Joanna C. Y.
Published: February 2009

This paper examines the association between the timeliness of the half‐yearly report for Australian firms and the abnormal stock price behaviour around the time of the announcement. The results support the overseas evidence that reports containing ‘good’ news are released earlier than reports containing ‘bad’ news. The abnormal returns are consistent with the direction and magnitude of the earnings and dividend information. We find no evidence to support the Kross and Schroeder [1984] conclusion that timeliness per se is associated with abnormal returns once appropriate control is made for earnings/dividend information.
A LIKELIHOOD RATIO TEST OF THE ZERO‐BETA CAPM IN AUSTRALIAN EQUITY RETURNS
Authors: Faff Robert W.
Published: February 2009

This paper tests the zero‐beta CAPM with Australian equity returns, using the multivariate approach developed by Gibbons (1982). For the period 1958 to 1987, based on its asymptotic distribution, the likelihood ratio test (LRT) statistic indicates a strong rejection of the model when an equally weighted market index is used. However, small sample adjustments to the test suggested by Jobson and Korkie (1982) and by Shanken (1985) place the validity of this conclusion in some doubt. When a value weighted market index is used for the period 1974 to 1987, the tests reveal at least moderate support for the zero‐beta CAPM.
EXTERNAL AUDITOR EVALUATION OF THE INTERNAL AUDIT FUNCTION
Authors: Edge William R. , Farley Alan A.
Published: February 2009

This study examines the relative importance of the factors used by external auditors when valuating an internal audit function. The study also examines the consistency of external auditors in making evaluations of an internal audit function. The factors used are based on Statement of Auditing Practice AUP 2 “Using the Work of an Internal Auditor” and a similar study conducted in the U.S.A. The two factors which this study finds to be the most significant are ‘technical competence’ and ‘due professional care’. The study finds a high degree of consensus across the respondents with respect to the evaluation of the internal audit function, and a high degree of insight and stability in their judgements.
PRIOR ACCOUNTING EDUCATION AND PERFORMANCE IN A FIRST‐LEVEL UNIVERSITY COURSE IN NEW ZEALAND
Authors: Keef Stephen P. , Hooper Keith C.
Published: February 2009

This New Zealand study examined whether prior accounting education at school had a positive effect on performance in the corresponding first‐level university course. The research question was tested using an ANCOVA. Proxies for academic ability were used as covariates so as to eliminate systematic bias in the samples. Prior study at the Bursary level carried a positive benefit. The findings were in agreement with the thesis that the level of conceptual accounting thought acquired at school, rather than the ability to manipulate figures in accordance with mechanical bookkeeping procedures, affected subsequent performance at university.
MULTIVARIATE COINTEGRATION TESTING OF THE EFFICIENCY OF AUSTRALIA'S SPOT FOREX MARKET
Authors: Layton Allan P. , Tan Amirullah
Published: February 2009

Efficiency in Australia's spot FOREX market is tested using daily, weekly and four‐weekly data subsequent to the floating of the dollar in 1983. Earlier research using pairwise cointegration tests of currency markets has suggested little evidence of market inefficiencies. However, multivariate cointegration tests carried out in the paper, based on canonical transformation of the exchange rate data, suggest the existence of long run equilibrium relationships among the spot rates, implying the existence of market inefficiency in the FOREX market.
THE CHAIRMAN'S STATEMENT AND CORPORATE FINANCIAL PERFORMANCE
Authors: Smith Malcolm , Taffler Richard
Published: February 2009

Agency theory and signalling theory both suggest that firms are motivated to disclose excellence of financial performance in an unambiguous manner. We might expect, therefore, that good financial performance is associated with a clear and readable Chairman's narrative and poor performance with an obscure or misleading message.

Extant work linking corporate performance with clarity of executive narrative fails to distinguish sample cases by industry or financial status. This paper seeks to overcome the consequences of such deficiencies explicitly, by conducting a systematic analysis of the relationship between narrative complexity and alternative measures of financial performance, for a matched sample of failed/non‐failed companies across common industries.

This study employs separate measures of the readability and the understandability of the chairman's narrative and finds them to be significantly related to overall financial performance and individual measures of performance, most notably liquidity. Poor readability is strongly associated with poor financial performance and ease of readability with relative financial success. The implication is that firms actively signal good news while obscuring, perhaps deliberately, messages which convey bad news.
INDEPENDENT EXPERT'S REPORTS IN TAKEOVER BIDS
Authors: Eddey Peter H.
Published: February 2009

This paper reports an empirical examination of independent expert reports in takeover bids using the 170 reports that were issued in the 364 cash‐based bids that occurred between January 1988 and December 1991. It was found that bid premia offered in takeover bids where an expert's report was issued were not significantly lower than bid premia in other bids. This may be attributable to independent experts acting as a countervailing influence on bidders holding a superior pre‐bid bargaining position. Next, some dimensions of the “fair and reasonable” criterion that experts are required to use are examined. These are the single‐test and dual‐test interpretations of the phrase, the relation between offer price, market price and the expert's valuation of the target, the cost and length of expert's reports and, finally, the influence an expert has on the outcome of a bid.
THE INFORMATION CONTENT OF ASX SUSPENSION THREAT ANNOUNCEMENTS
Authors: Laing Stuart J. , Woodliff David R.
Published: February 2009

This paper presents an empirical investigation of share price returns for companies threatened with suspension by the Australian Stock Exchange (ASX) for failing to either (1) pay their annual listing fees or (2) lodge a required report on time. The threatened companies experienced an average return over the event window that was significantly below the average return for both a market index and a similarly sized control portfolio. This suggests that the threat of suspension has information content. Interestingly, the major impact came from those companies that avoided suspension by lodging interim reports subsequent to the threat announcement indicating that significant new negative information was conveyed to the market in the week following the threat.
PREDICTIVE POWER OF THE TERM STRUCTURE IN AUSTRALIA IN THE LATE 1980'S: A NOTE
Authors: Heaney Richard
Published: February 2009

The Market Expectations Theory of the Term Structure of Interest Rates is tested using Wednesday yields on 13 week and 26 week treasury notes and 90 and 180 day bank accepted bills for the period 3 December 1986 to 13 March 1991 obtained from the Reserve Bank of Australia. In ordinary least squares regression based tests the Market Expectations Theory of the Term Structure of Interest Rates is accepted for bank accepted bills but rejected for treasury notes. Augmented Dickey Fuller unit root tests provide evidence of non‐stationarity in the variables; a possibility often ignored in Australian studies. Although the unit root tests are generally consistent with the existence of one unit root, residual based cointegration tests between the forward rate and spot rate are not consistent with cointegration. This suggests that the prior expectations theory results may be a result of spurious regression. Perhaps a more complex model is required, coupled with tests which take account of non‐stationary time series.
AN EMPIRICAL INVESTIGATION OF THE AUDIT EXPECTATION GAP: AUSTRALIAN EVIDENCE
Authors: Monroe Gary S. , Woodliff David R.
Published: February 2009

This paper examines the existence and nature of the expectation gap in Australia and whether recent changes to the wording of audit reports have affected that gap. A mail questionnaire was completed by auditors, accountants, directors, creditors, shareholders and undergraduate students. There was a gap between auditors and the various user groups under the old report wording prior to the issuance of the revised AUP 3. The modified wording in the revised AUP 3 had a significant impact on beliefs about the nature of an audit and the relative responsibilities of auditors and management. The modified wording eliminated some of the differences, but also created some new differences in beliefs about the messages communicated through audit reports. The auditing profession's fears about an expectation gap appear to be justified.
BALANCE SHEET STRUCTURE AND THE MANAGERIAL‐DISCRETION HYPOTHESIS: AN EXPLORATORY EMPIRICAL STUDY OF NEW ZEALAND LIFE INSURANCE COMPANIES
Authors: Adams Mike
Published: February 2009

The managerial‐discretion hypothesis states that in mutual insurance companies policyholders will seek to protect their interests by limiting managerial discretion in investment and financing decisions. Therefore, mutuals are predicted to introduce restrictive mechanisms (e.g., company by‐laws) that promote precautionary investment, such as government securities. In stock companies, shareholders are expected to increase their wealth at the expense of policyholders' interests by investing in more speculative assets, such as equities. Differences in investment activity also affect policy valuation and reserving decisions reflected in the liability side of the insurance company balance sheet. The managerial‐discretion hypothesis implies that systematic differences in the structure of balance sheets between mutual and stock insurance companies are likely to exist. To carry out an exploratory test of this aspect of the managerial‐discretion hypothesis, the present study employs canonical correlation analysis on New Zealand life insurance company data for 1991. However, the empirical evidence does not appear to support the proposition that balance sheet structure varies systematically between mutual and stock companies.
THE EFFECTS OF PRESENTATION FORMAT ON THE EFFECTIVENESS AND EFFICIENCY OF AUDITORS‘ ANALYTICAL REVIEW JUDGMENTS
Authors: Schulz Axel K‐D. , Booth Peter
Published: February 2009

Modern audit practice has focused increasing attention on the use of analytical review procedures to improve the effectiveness and efficiency of audits. To assist in this endeavour, one branch of analytical review research has investigated the judgment processes that auditors' use in analytical review and the development of decision aids to improve these processes. Several recent papers have considered how alternative presentations of financial and operating data, specifically graphs versus tables, may affect the effectiveness of auditors' analytical review judgments. However, the results have been mixed. This study investigated the expectation that there would be effectiveness and efficiency performance advantages for auditors receiving graphically presented data over those receiving tabular presented data in an analytical review setting. This paper reports on the results of an experiment that examined the impact of graphs versus tables on the effectiveness of sales account balance prediction, confidence in this prediction and the setting of a noninvestigation region, and the relative time efficiency with which these tasks were completed, for an analytical review of sales for a retailing client. The study found mixed results for the accuracy of the sales account balance predictions of the graphical and tabular treatment groups, with no difference found when a regression model estimate of the ‘correct’ prediction was used and greater accuracy for the graphical group when the actual audited sales account balance was used as the accuracy benchmark. No significant differences between treatment groups was found for their confidence in their sales account balance predictions and the width of the noninvestigation regions set. However, a significant time advantage was found for the graphical group. These findings suggest that there may a useful role for the use of graphs as decision aids in income statement related analytical review procedures in improving audit efficiency without sacrificing audit effectiveness.
AN EMPIRICAL ANALYSIS OF SOME DETERMINANTS OF THE TARGET SHAREHOLDER PREMIUM IN TAKEOVERS
Authors: Bugeja Martin , Walter Terry
Published: February 2009

While a considerable amount of research in Australia, the United States and elsewhere shows that takeovers create value for target shareholders, there is relatively little research investigating the explanations for cross‐sectional differences in the size of the premium paid to target shareholders. This paper tests various arguments proposed to explain some of the sources of this premium. One such explanation is the removal of inefficient target management. Takeovers have been recognised as a mechanism that allows management teams to compete for the right to manage corporate assets. We test the associations between bidder and target managerial ownership (proxied by director's holdings), the prior performance of the bidder and target and the size of the premium paid to target shareholders. Other potential influences on the premium include a reduction in the agency costs of free cash flow and the provision of financial slack or reserve borrowing capacity to the target firm by the bidder. Using a sample of seventy‐eight Australian takeovers occurring between 1981 and 1989 our tests indicate that the provision of financial slack to the target is associated with a significantly higher premium, while high bidder ownership results in a significantly lower premium. The premium is found to be positively related to the performance of the bidder in the period prior to the bid. The tests disclose an association between the agency costs of free cash flow and the target premium which is inconsistent with the theory, and reveal only weak evidence that the takeover premium is higher when inefficient target management is removed.
AN ANALYSIS OF SUBMISSIONS TO THE ASRB ON RELEASE 411 ‘FOREIGN CURRENCY TRANSLATION—QUESTIONNAIRE’
Authors: Pacecca Tania
Published: February 2009

This study examines the accounting method preferences of the managers of firms who made submissions to the ASRB on Release 411 ‘Foreign Currency Translation— Questionnaire’. Content analysis of the actual submissions is used to obtain a measure of the strength of accounting method preferences indicated therein. This aspect of the study combats criticism of previous studies in relation to the oversimplification associated with the dichotomous categorisation of accounting method preferences. The results of the study also provide some support for this criticism of earlier research. Overall, the study provides some evidence that accounting method preferences for foreign currency transactions are made in an attempt to maximise the value of the firm.
AUDITOR PREFERENCES FOR LIABILITY LIMITATION
Authors: Johnson Ronald B. , Stokes Donald J. , Watts David G.
Published: February 2009

Debate over statutorily limiting auditor civil liability has implicitly assumed auditors are homogeneous in their preferences for capping liability. This study examines the preferences of auditors for limiting auditor liability and investigates reasons for the preferences. The study uses an Australian setting in which there has been a persistent debate for a decade or more over regulatory intervention in this area. The study provides a background to the debate over this issue and addresses the effects of two factors suggested by the extant literature, namely auditor size and the business risk of an auditor's client portfolio. These factors are argued to affect the expected costs of litigation facing auditors and therefore their preferences on capping liability. Using the submissions by audit firms on an Australian Companies and Securities Law Review Committee Discussion Paper on limiting auditor liability, the study finds larger audit firms that have greater capacities to lobby and greater expected costs of litigation from unlimited liability than smaller firms, dominate the respondents on the Paper and tend to be more supportive of liability limitation than smaller audit firms. Within the array of possible methods of capping liability canvassed by the Discussion Paper, the study documents evidence of diversity in preferences among audit firms. Larger audit firm size is associated with a preference for a group of methods that provides such firms with opportunities to benefit from the capping at the expense of the smaller audit firms. The method most preferred by the larger audit firms is the multiple of fee with a prescribed minimum. Perhaps not surprisingly, this is also the preferred method of the professional accounting bodies in Australia. As to the effect of the riskiness of the client portfolio on preferences for methods of limiting liability, the study finds that higher business risk in an auditor's portfolio is associated with a preference for methods that give greater control over their liability exposure. The study has implications for the impact of regulation of capping liability on competition in the audit services market.
DO AUSTRALIAN SPOT FOREIGN EXCHANGE RATES STILL SHOW EVIDENCE OF COINTEGRATION?
Authors: Bhar Ramaprasad
Published: February 2009

Informational efficiency in the Australian spot foreign exchange market has been examined by other authors, but most of these studies examine a time span that covers the immediate post‐float period. This article analyses a period that begins nearly three and a half years after the floating of the Australian dollar and applies Johansen's test to detect any cointegrating relationship in a system of five foreign currencies. It finds no evidence of cointegration and, therefore, supports the proposition of informational efficiency in the foreign exchange market. This result is in contrast to most other such studies of the Australian market and may be partly due to the increasing maturity and sophistication of the market participants in dealing with a floating currency.
THE DETERMINANTS OF MARKET BID ASK SPREADS ON THE AUSTRALIAN STOCK EXCHANGE: CROSS‐SECTIONAL ANALYSIS
Authors: Aitken Michael , Frino Alex
Published: February 2009

Prior research into the cost of trading on the Australian Stock Exchange has identified brokerage fees and the bid‐ask spread as significant elements of total transaction costs. While an enormous volume of research has examined the determinants of spreads in US markets, no work has so far addressed the issue for the Australian market‐place. Given the importance of spreads as a transaction cost, this work redresses this imbalance and at the same time provides evidence on whether alternative market structures underlying different exchanges give rise to differences in the determinants of spreads. Using prior US research as our benchmark, our results suggest that notwithstanding microstructure differences between the Australian and US exchanges, there are three fundamental determinants of spreads that transcend differences in the market‐places. These are the level of trading activity, price volatility and stock price levels. Together these three factors account for up to 94% of the total cross‐sectional variation in percentage bid ask spreads on the ASX.
Adapting the APV valuation methodology and the beta gearing formula to the dividend imputation tax system
Authors: Monkhouse Peter H.L.
Published: February 2009

This paper adapts the APV valuation methodology and the formula for gearing beta to the Australian dividend imputation tax system. The APV formulation is shown to be able to be applied in the dividend imputation tax system by simply replacing the statutory tax rate with an effective tax rate in the calculation of the “cash flows”. The effect of the dividend imputation tax system on a company's value is shown to be easily bounded using the APV formulation by making the extreme assumption that imputation credits are either: fully distributed and fully valued by the market; or that they are worthless. This paper also quantifies the effect of changing the assumed value of imputation credits on: (i) the value of the interest tax shield of debt; and (ii) the levered, or equity, beta.
Earnings characteristics and analysts’ differential interpretation of earnings announcements: An empirical analysis
Authors: Ahmed Anwer S. , Song Minsup , Stevens Douglas E.
Published: February 2009

This study provides empirical evidence on factors that drive differential interpretation of earnings announcements. We document that Kandel and Pearson's forecast measures of differential interpretation are decreasing in proxies for earnings quality and pre‐announcement information quality. This evidence yields new and useful insights regarding which earnings announcements are less likely to generate newfound disagreement among analysts and investors. Recent research suggests that investor disagreement can increase investment risk, increase the cost of capital, and cause stock prices to deviate from fundamental value. Therefore, our results support prior intuition that increasing the quality of earnings and pre‐announcement information can improve the efficiency of capital markets.
Carbon Nullius and Racial Rule: Race, Nature and the Cultural Politics of Forest Carbon in Canada
Authors: Baldwin Andrew
Published: February 2009

Abstract:  Critical geographers have paid remarkably scant attention to issues of climate change, even less so to forest carbon management policy. Building on geographic debate concerning the ontological production of nature and race, this paper argues that at stake in the climate change debate are not simply questions of energy geopolitics or green production. Also at issue in the climate debate are powerful questions of identity, the national form and race. This paper considers how a particular slice of the climate debate – forest carbon management discourse pertaining to Canada's boreal forest – enacts a political geography of racial difference, one that seeks to accommodate an imagined mode of traditional aboriginal life to the exigencies of global climate change mitigation and, importantly, to a logic of global capital now well into its ecological phase.
Getting Behind the Grain: The Politics of Genetic Modification on the Canadian Prairies
Authors: Eaton Emily
Published: February 2009

Abstract:  In 2001 a coalition of actors including farm, consumer, health, environmental and industry organizations announced its opposition to Monsanto's attempts to commercialize GM wheat in Canada. Although this coalition consisted mostly of rural and agricultural groups, the three arguments that came to dominate the discourse advanced by the coalition seem, at first glance, to characterize a politics of consumption. These three arguments revolve around market acceptance, environmental risk, and the lack of democratic and transparent process in biotech regulation and policy. This paper argues that producer interests were not displaced by, but rather articulated alongside and through consumer‐driven discourses. In fact, farmers used claims about the supremacy of the consumer and impending environmental change to advance their vulnerable political and economic positions as producers of food.
Prevalence of Cluster Headache in the Republic of Georgia: Results of a Population-Based Study and Methodological Considerations
Authors: Katsarava Z , Dzagnidze A , Kukava M , Mirvelashvili E , Djibuti M , Janelidze M , Jensen R , Stovner LJ , Steiner TJ ,   on behalf of the Global Campaign to Reduce the Burden of Headache Worldwide and The Russian Linguistic Subcommittee of the International Headache Society
Published: February 2009

We present a study of the general-population prevalence of cluster headache in the Republic of Georgia and discuss the advantages and challenges of different methodological approaches. In a community-based survey, specially trained medical residents visited 500 adjacent households in the capital city, Tbilisi, and 300 households in the eastern rural area of Kakheti. They interviewed all ( n = 1145) biologically unrelated adult occupants using a previously validated questionnaire. The household responses rates were 92% in Tbilisi and 100% in Kakheti. The survey identified 32 persons with possible cluster headache, who were then personally interviewed by one of two headache-experienced neurologists. Cluster headache was confirmed in one subject. The prevalence of cluster headache was therefore estimated to be 87/100 000 (95% confidence interval < 258/100 000). We used a conservative approach, which has an obvious advantage of high-quality data collection, but is very demanding of manpower and time.
Finding New Drug Targets for the Treatment of Migraine Attacks
Authors: Olesen J , Tfelt-Hansen P , Ashina M
Published: February 2009

No new preventive drugs specific to migraine have appeared for the last 20 years and existing acute therapies need improvement. Unfortunately, no animal models can predict the efficacy of new therapies for migraine. Because migraine attacks are fully reversible and can be aborted by therapy, the headache- or migraine-provoking property of naturally occurring signalling molecules can be tested in a human model. This model has predicted efficacy of nitric oxide synthase inhibition and calcitonin gene-related peptide receptor blockade. The pharmaceutical industry should pay more attention to human models, although methods are different from normal target validation.
Bibliotherapy for mental health service users Part 2: a survey of psychiatric libraries in the UK
Authors: Fanner Deborah , Urqhuart Christine
Published: February 2009

Aims and objectives:  UK health policy advocates a patient‐centred approach to patient care. Library services could serve the rehabilitation needs of mental health service users through bibliotherapy (the use of written, audio or e‐learning materials to provide therapeutic support). Part 2 of this two‐part paper assesses the views of psychiatric libraries in the UK on providing access to service users and possible services provided.

Methods:  An e‐mail questionnaire survey of psychiatric library members of the psychiatric lending co‐operative scheme (n = 100) obtained a response rate of 55%, mostly from libraries based in hospitals.

Results:  At present, libraries funded by the health service provide minimal facilities for service users. Librarians are uncertain about the benefits and practicalities of providing access to service users.

Conclusions:  In order to implement change, information providers across the National Health Service (NHS) will need to work collaboratively to overcome attitudinal and institutional barriers, including the key issue of funding.
The role of demography and climatic events in shaping the phylogeography of Amazona aestiva (Psittaciformes, Aves) and definition of management units for conservation
Authors: Caparroz Renato , Seixas Gláucia Helena Fernandes , Berkunsky Igor , Collevatti Rosane Garcia
Published: February 2009

Aim  The blue‐fronted amazon (Amazona aestiva) is a widely distributed Neotropical parrot with two recognized sub‐species, which are mainly characterized by the colour of the shoulder. We explored mitochondrial DNA variability to determine how demographic processes and historical climatic fluctuations may have contributed to phylogeographical pattern and morphological variation of A. aestiva, and how this information could be useful to understand the evolutionary relationship of this species and the Amazona ochrocephala complex and to determine management units for conservation purposes.

Location  Brazil and north‐eastern Argentina.

Methods  We analysed a fragment of COI gene of 78 A. aestiva and 27 A. ochrocephala. We computed a median‐joining network, and the population structure of A. aestiva populations was assessed using a hierarchical analysis of nucleotide diversity. The mismatch distribution, Fu's Fs‐test of neutrality and R2 test were used to detect past population expansion.

Results  All A. aestiva haplotypes and A. ochrocephala subspecies from north‐eastern and southern South America were recovered within the South American clade. Hierarchical analysis of nucleotide diversity of A. aestiva populations detected two geographical groups as obtained by median‐joining network. These two A. aestiva groups showed evidence of a recent population expansion. The time of populations splitting estimated corresponding to the Middle Pleistocene.

Main conclusions  The two A. aestiva genetic groups identified in our analyses agree with the morphological variation, corresponding to named subspecies. These two A. aestiva groups have undergone a recent population expansion, with low gene flow between them. The expansion of savannah areas may have contributed to the population expansion of these two groups. We concluded that introgression after isolated diversification may better explain haplotype sharing between A. aestiva and A. ochrocephala subspecies. We suggest that management and conservation strategies should consider these two A. aestiva groups (or subspecies) as different management units and should maintain viable populations of these two management units.
Phylogenetic relatedness and plant invader success across two spatial scales
Authors: Cadotte Marc W. , Hamilton Mark A. , Murray Brad R.
Published: February 2009

Aim  Successful invaders often possess similar ecological traits that contribute to success in new regions, and thus under niche conservatism, invader success should be phylogenetically clustered. We asked if the degree to which non‐native plant species are phylogenetically related is a predictor of invasion success at two spatial scales.

Location  Australia – the whole continent and Royal National Park (south‐eastern Australia).

Methods  We used non‐native plant species occupancy in Royal National Park, as well as estimated continental occupancy of these species from herbarium records. We then estimated phylogenetic relationships using molecular data from three gene sequences available on GenBank (matK, rbcL and ITS1). We tested for phylogenetic signals in occupancy using Blomberg's K.

Results  Whereas most non‐native plants were relatively scarce, there was a strong phylogenetic signal for continental occupancy, driven by the clustering of successful species in Asteraceae, Caryophyllaceae, Poaceae and Solanaceae. However, we failed to detect a phylogenetic signal at the park scale.

Main Conclusions  Our results reveal that at a large spatial scale, invader success is phylogenetically clustered where ecological traits promoting success appear to be shared among close relatives, indicating that phylogenetic relationships can be useful predictors of invasion success at large spatial scales. At a smaller, landscape scale, there was no evidence of phylogenetic clustering of invasion success, and thus, relatedness plays a much reduced role in determining the relative success of invaders.
Discrepancies in pharmacokinetic analysis results obtained by using two standard population pharmacokinetics software programs
Authors: Finkelstein Yaron , Nava‐Ocampo Alejandro A. , Schechter Tal , Grant M.D. Ronald , Pierre Edith St , Goldman Ran , Walker Scott , Koren Gideon
Published: February 2009

Multiple standard software packages for population pharmacokinetics (PK) modeling are currently available. These programs may significantly vary in the algorithms used for modeling plasma concentrations as a function of time course. We compared the population PK parameters obtained by using two standard software packages, p‐pharm and saam ii, for analysis of a similar data set of serum samples of doxorubicin obtained from 11 infants and children with malignant diseases. Plasma drug concentrations were fitted to time by a two‐compartment intra‐vascular PK model by saam ii and p‐pharm programs. The population parameters obtained from the analysis by the two software programs were substantially different. For example, Vd was almost five times larger when using saam ii compared with p‐pharm (9.6 L/kg vs. 2.0 L/kg, respectively), whereas t½β was about 30 times larger in the latter (7.7 h vs. 206.9 h, respectively). When considering the results reported from a population PK analysis, validation of the results by different software should be considered, especially when extreme, unexpected values are obtained.