bluuebunny/crossref_metadata_2025_split huggingface dataset:
The relevance to international mergers of the ethical perspectives of participants
Authors: Wood Greg 
Published: January 2010

PurposeInternational mergers are becoming more widespread among medium‐sized companies that for decades have held a prime position in their home country market, but who now feel threatened that they may not be of a significant size to continue to be viable in the international marketplace. The purpose of this paper is to examine the merger of one Australian company and one of its former competitors in the international marketplace from the perspective of the congruence between their espoused ethical cultures in business prior to the merger.Design/methodology/approachA questionnaire comprising 46 questions was sent to the public relations manager of each organisation prior to the merger. These managers were asked to fill in the questionnaire and to provide a copy of their code of ethics.FindingsThe research found that organisations need to not only have a code of ethics, but also need to focus especially on the area of code augmentation to ensure that they communicate the ethos of their code to their employees. The examination of the content of the code and the artefacts in place to communicate the ethos of each company's code would enable one to compare for ethical congruence between the two companies. The examination of these ethical artefacts highlighted that the companies appeared to have been quite divergent in their commitment to business ethics when they entered the merger. If companies are to merge across country, and thus cultural boundaries, they need to examine the ethical standpoints of potential partners in order to alleviate any potential conflicts from an ethical, corporate culture perspective.Originality/valueThis paper provides useful information for those companies planning to merge across country, and thus cultural boundaries.
The sum of all fears: do directors have valid concerns on the unintended impact of new regulations?
Authors: Clarke Christopher J. 
Published: January 2010

PurposeThe purpose of the research and paper is to ensure that the views of incumbent directors are not ignored. This is against a background of baying for reform from the media, politicians and badly burned investors following the wave of corporate scandals.Design/methodology/approachThis research was conducted by members of the Board practice of Boyden global executive search. It comprised focus groups of incumbent directors in the USA and Australia as well as interviews in these countries and in the UK.FindingsDirectors had been holding back. They felt that new regulations and restrictions would have major impacts. There is the danger that over‐regulation in the developed world will merely drive even more business and jobs offshore to more loosely governed economies in the Far East.Research limitations/implicationsThe research sought the point of view of incumbent directors. One needs to consider that their comments and feedback might be self‐serving. The number of countries included was limited, though they include those to the fore in governance debate and thinking.Practical implicationsRegulations need to have the flexibility to be altered relatively easily lest they have deleterious effects. Those involved in Board recruitment, especially nomination committees need to be alert to the dangers of new regulation explained here.Originality/valueThis paper adds a different and relatively unheard viewpoint to the current public debate and regulatory climate. It sounds important words of caution to those whose knee‐jerk reaction is that tough new regulation and lots of it must be introduced immediately.
The gender composition of boards after an IPO
Authors: Dimovski William , Brooks Robert 
Published: January 2010

PurposeThe purpose of this paper is to empirically analyse the change in the gender composition of the boards of large Australian companies, after listing.Design/methodology/approachThis study investigates the gender composition of the boards of large Australian companies at the time of the initial public offering (IPO) and subsequently as these companies mature into established public companies. It also investigates industry influences and organizational size influences on the board composition at the time of the IPO and subsequently.FindingsNo significant change is found in the proportion of male and female directors holding directorships at the time of the IPO and some five to eight years later when the company is recorded as a top 500 company (by market capitalization) on the Australian lists. This implies that the capital market is generally satisfied by the gender composition of boards from the time of the IPO.Originality/valueThis paper follows extends on previous work which provides evidence of a relatively low proportion of female directors on the boards of Australian initial public offerings.
Predicting corporate bankruptcy: where we stand?
Authors: Adnan Aziz M. , Dar Humayon A. 
Published: January 2010

PurposeThe incidence of important bankruptcy cases has led to a growing interest in corporate bankruptcy prediction models since the 1960s. Several past reviews of this literature are now either out‐of‐date or too narrowly focused. They do not provide a complete comparison of the many different approaches towards bankruptcy prediction and have also failed to provide a solution to the problem of model choice in empirical application. Seeks to address this issue.Design/methodology/approachThrough an extensive literature review, this study provides a comprehensive analysis of the methodologies and empirical findings from these models in their applications across ten different countries.FindingsThe predictive accuracies of different models seem to be generally comparable, although artificially intelligent expert system models perform marginally better than statistical and theoretical models. Individually, the use of multiple discriminant analysis (MDA) and logit models dominates the research. Given that financial ratios have been dominant in most research to date, it may be worthwhile increasing the variety of explanatory variables to include corporate governance structures and management practices while developing the research model. Similarly, evidence from past research suggests that small sample size, in such studies, should not impede future research but it may lead researchers away from methodologies where large samples are critically necessary.Originality/valueIt is hoped that this study will be the most comprehensive to‐date review of the literature in the field. The study also provides a unique ranking system, the first ever of its kind, to solve the problem of model choice in empirical application of bankruptcy prediction models.
Corporate Governance after Sarbanes‐Oxley: an Australian perspective
Authors: Robins Fred 
Published: January 2010

PurposeThis paper aims to offer an Australian perspective on the recent crisis of confidence in corporate governance and its legislative and regulatory aftermath. It is informative because Australia's experience is directly comparable with that of the USA but its professional and regulatory traditions are much less prescriptive.Design/methodology/approachThe author dissects the corporate scandal of recent years and analyses the several issues which have arisen. Problem elements, once identified, are evaluated separately, followed by an examination of the responses in each country. The main value of the paper lies in the separation and categorisation of these issues. For clarity, the author groups them as technical, political and cultural and uses these three labels to distinguish between problems which are the responsibility of the accounting profession, the responsibility of regulatory agencies, and those faced by managers individually. There is brief mention of some other groups, like suppliers of professional business services, who have also fallen under critical scrutiny. At the same time, other groups associated with contemporary financial scandal are omitted for lack of space.FindingsThe paper includes some observed contrasts between the consequences of scandal in the two jurisdictions and ends with a number of personal judgements.Originality/valueIt is hoped that the judgements made in this paper may offer food for thought and some guidance for those seeking to advance best practice in this important but delicate area.
Audit committee pre‐Enron efforts to increase the effectiveness of corporate governance
Authors: Myers Patricia M. , Ziegenfuss Douglas E. 
Published: January 2010

PurposeThis study of audit committee effectiveness, performed in the period immediately preceding the Enron collapse, seeks to determine whether audit committees were beginning to accept more responsibility for corporate governance before such behavior became mandatory.Design/methodology/approachThe period studied was approximately two years prior to the Sarbanes‐Oxley Act of 2002 and roughly one year after the Blue Ribbon Committee published its recommendations on audit committee effectiveness. The efforts of 296 audit committees to improve their effectiveness as reported by Chief Audit Executives (CAEs) to the Global Audit Information Network (GAIN) database maintained by the Institute of Internal Auditors (IIA) were investigated.FindingsIt was found that audit committees' responsiveness to each of eight effectiveness steps was surprisingly high. For instance, almost all (w99.6 percent) audit committees meet with CAEs. It is recommended that audit committees focus more on big picture/strategic concerns in their discussions with CAEs.Research limitations/implicationsThe study's chief limitation is that only companies with internal audit functions were studied and thus the results cannot be generalized to companies without internal audit functions.Originality/valueThis study was the first to utilize the GAIN database and provides specifics about 15 different topics that CAEs might bring to audit committees for discussion. Topics of communication more often focused on specifics such as “significant audit findings” (95.9 percent) and less often dealt with big picture/strategic concerns such as “overall corporate control environment” (68.9 percent).
The role of the non‐executive director: a personal view
Authors: Treadwell David 
Published: January 2010

PurposeThe purpose of the paper is to provide an informed but personal view on the debate surrounding the role of the non‐executive director and the board.Design/methodology/approachThe approach is that of a practitioner recruiting non‐executive directors. The author offers a personal view.FindingsThe author has had extensive discussions with both chairmen and non‐executive directors of FTSE companies and the views in the paper reflect these discussions.Originality/valueThe value of the paper is to stimulate debate and to promote a realistic climate within which business can operate effectively.
The increasing cost of corporate governance: decision speed‐bumps for managers
Authors: Durden Chris , Pech Richard 
Published: January 2010

PurposeDecision speed, flexibility, and innovation have often been cited as key ingredients to business success on the turbulent twenty‐first century business landscape. Sets out to argue that the increasing emphasis on legal and regulatory compliance, the push for which can be attributed to the spectacular collapses of WorldCom and Enron, will burden management with decision‐making speed‐bumps as opposed to protecting shareholders' interests.Design/methodology/approachThe impact of legal and regulatory compliance is discussed within the business decision‐making context. Businesses succeed or fail in a dynamic environment where the smallest advantage can push one competitor ahead of another. Arguments in favour of increasing legal compliance are debated and the impacts of proposed regulatory compliance issues are discussed within the context of the competing business firm and its need for speed and flexibility.FindingsThe issue of increasing and stricter compliance for business is far‐reaching. Attempting to protect shareholder interests through further measures of compliance will only introduce further operating complexities for management while increasing costs and reducing decision speeds and flexibility. The impact on firms forced to compete under such conditions will be considerable, particularly if they find themselves on an international landscape competing against firms not burdened with the same regulatory requirements.Originality/valueThis paper is based on original work by the authors commencing with issues surrounding shareholders versus stakeholders, followed by a debate concerning corporate governance mechanisms and a discussion concerning the consequences and impacts of levying further regulatory burdens on business and managers.
Corporate governance reforms: fact or fiction?
Authors: Petra Steven T. 
Published: January 2010

PurposeReforms set forth in Sarbanes‐Oxley and the NYSE, AMEX, and NASD are designed to prevent the reoccurrence of corporate collapses at companies such as Enron Corp., WorldCom Inc., and Global Crossing Ltd. The purpose of this paper is to discuss the possible impact the reforms may or may not have had in controlling the abuses uncovered in recent corporate failures.Design/methodology/approachThis paper examines the reforms to corporate governance and the rationale behind the reforms, and examines how the actual governance structures of Enron, WorldCom, and Global Crossing during the years of their accounting scandals compared to the new requirements. It also offers a discussion as to whether the new reforms would have been helpful in preventing management's manipulation of earnings.FindingsGlobal Crossing's governance structure would have satisfied a majority of the reforms. Enron's and WorldCom's governance structures would have satisfied less than half of the reforms.Practical implicationsThis paper highlights the need for management and shareholders alike to focus on the substance of the reforms and not merely the form of the reforms in order to make meaningful improvements to corporate governance.Originality/valueThis paper should serve as a warning to the investing public. The reforms in and of themselves should not be relied on to prevent future corporate scandals. The reforms, however, do focus the spotlight directly on corporate boardrooms where shareholders can now insist that directors' interests be separate from those of the CEO and upper management.
Board configuration: are diverse boards better boards?
Authors: Van der Walt N. , Ingley C. , Shergill G.S. , Townsend A. 
Published: January 2010

PurposeThe purpose of this research paper is to explore the proposition that diversifying the board in terms of gender, ethnicity or skill base may require consideration of the specific strategic environment of the organisation. The proposition arises from the question as to whether or not greater diversity in board configuration is desirable in certain circumstances and considers the group dynamics, skill mix and capabilities that are required by boards under different conditions of change and strategic complexity.Design/methodology/approachThe study examines the financial performance of New Zealand publicly listed companies over a five‐year period and focuses on changes in board composition, strategic activity and implications for corporate performance.FindingsThe study finds limited support for the idea that board configuration, strategic context and corporate decision quality may be linked.Originality/valueThis paper will be of particular value to those involved in the appointment of directors within the private and public sectors. In particular, it focuses discussion on the strategic environment faced by the organisation and the relevance of a range of potential selection criteria when appointing new directors. It is also of interest to researchers evaluating the value of social capital and gender equity in contemporary organisations as, based on empirical reseach, it challenges conventional thinking. By implication, the paper also questions whether or not boards are actually able to influence key outcomes in the manner expected by legislators.
Corporate social responsibility strategy: strategic options, global considerations
Authors: Galbreath Jeremy 
Published: January 2010

PurposeTo further the dialogue on corporate strategy and corporate social responsibility (CSR). Specifically, to describe four options with respect to CSR strategies and to offer points of consideration for moving home country CSR strategies to host countries.Design/methodology/approachThe approach is based on developing a conceptualization of various CSR strategic options. The paper also incorporates key global considerations for moving home country CSR strategies to host country operations.FindingsThe analysis suggests that CSR can not be separated from corporate strategy. Thus, firms have several factors to consider with respect to choosing appropriate CSR strategies. Not only are there fundamental strategic goals and outcomes to consider, but also a variety of cross‐border factors that can potentially complicate the success of CSR strategies if not examined appropriately.Practical implicationsAs with any good decision‐making exercise, managers would do well to explore a variety of options before making a final decision. This paper offers four CSR strategic options from which managers can explore the development of a CSR strategy. However, recognizing the increasing influence of globalization and the need to expand operations overseas for many, if not most companies, the paper also suggests a number of salient factors that can effect the movement of CSR strategies from a home to host country. Thus, the paper offers a useful framework for making strategic decisions with respect to CSR.Originality/valueThe value of the paper rests in its dialogue of CSR in the context of corporate strategy and global business. With few exceptions, CSR and strategy have been given short shrift in the literature. Thus, by expanding an important component of corporate strategy and placing it in a global context, the paper properly expands on an essential topic in business.
Organizational conformity and contrarianism: regular irregular trading at National Australia Bank
Authors: Vit Gregory B. 
Published: January 2010

PurposeTo provide a conceptual framework and case study of organizational conformity and contrarianism that will be of interest and utility to both corporate governance theorists and practitioners.Design/methodology/approachThe paper presents a conceptual framework that examines the risk of risk management systems. The framework is rooted in the logics of economics and sociology, and describes the interplay of eco‐logics, socio‐logics and ideo‐logics in creating organizational conformity and contrarianism. Data from a comprehensive report by the Australian Prudential Regulation Authority presented in 2004 are used to illustrate how the framework might be applied to explain the breakdown in risk management systems within a large organization, the National Australia Bank.FindingsThe framework presented helps to explain the de‐coupling of technical rationality by examining and illustrating cognitive and normative mechanisms that build legitimacy and reduce uncertainty. This leads to an illusory sense of control that can threaten the survival of an organization.Research limitations/implicationsIllustrative data are principally drawn from a comprehensive analysis by an Australian Government bank regulator. A general descriptive conceptual framework is presented.Practical implicationsThis conceptual framework and case study will be of particular interest and importance to risk managers/governors within large financial service organizations and academics. An awareness of the different logics facing risk governors and risk takers within a large organization is another step towards understanding and possibly avoiding financial service industry mismanagement.Originality/valueThe paper presents a unique synthesis of three logics within a financial services organization. It is original because it links a recent real world management meltdown with a conceptual framework that examines the social risk of risk management systems and the dialogue between organizational conformity and contrarianism. The illustrative data presented is also very rare, since the subject organization has exceptionally made a highly confidential document public.
A failed strategy of using voluntary codes of conduct by the global mining industry
Authors: Sethi S. Prakash , Emelianova Olga 
Published: January 2010

PurposeThis paper aims to focus on an analysis of industry‐based voluntary codes of conduct in the international arena with special reference to the operations of the global mining industry.Design/methodology/approachThe paper examines the working of the mining industry's voluntary code of conduct, i.e. International Council on Mining and Metals (ICMM) sustainable development framework. The paper develops an analytical framework, which sets forth some of the necessary preconditions that must be met for such a code to be credible and effective in meeting societal.FindingsAn in‐depth analysis of the data produced by ICMM conclusively proved that the industry had substantially failed in meeting any of its objectives in terms of adequacy of principles, establishment and implementation of the framework, allocation of sufficient financial and human resources, and independent external monitoring for compliance verification. The result is that despite spending millions of dollars, industry has failed to gain any public credibility. Instead, industry's code effort is viewed with disdain as a largely public relations exercise.Originality/valueThe paper provides important lessons and specific guidelines that can help companies and industries in creating meaningful and effective codes of conduct. A failure to do so would exacerbate the problem of public distrust in the industry and would lead to greater restraints on the industry's modus operandi and opportunities for growth and profitability.
Relationships between board structure and takeover defenses
Authors: Webb Elizabeth 
Published: January 2010

PurposeAs corporations continue to face substantial information asymmetries between managers and shareholders, they must decide how to mitigate this agency problem using various mechanisms of corporate governance. Two of these mechanisms include the board of directors and takeover defenses. The purpose of this paper is to show that rather than having an additive effect, the marginal benefit of using one of these mechanisms declines as the use of the other increases.Design/methodology/approachUsing a governance index that measures the firm's takeover defenses and a unique board of directors index, the study employs both univariate analyses and multivariate simultaneous equation modeling in order to test the hypotheses.FindingsThe results of these tests show that these two measures of corporate governance should be viewed as a set rather than as individual components. In other words, a strong board is inversely related to strong shareholder protection in the form of takeover defenses. The study further analyzes the extent to which growth opportunities influence this relationship using a logistic regression approach. It appears that a firm's opportunity for growth is related to the strength of its board of directors, yet not to its governance provisions.Originality/valueBy analyzing a specific combination of current corporate governance practices, these results can assist firms at a practical level by providing information on optimal solutions to the agency problem.