title: The relationship between corporate governance practices and cost of capital in large listed companies of New Zealand and Singapore

authors: Afkhami Rad, Salman

subjects: Corporate governance

abstract: This thesis investigates the effect of corporate governance practices on cost of capital in listed companies. In particular, this study examines: 1) the relationship between corporate governance practices and cost of capital in large listed companies in New Zealand and Singapore. 2) The effects of corporate governance on cost of capital in an open economy like Singapore which is well-known as the financial hub of its region and a more isolated commodity export economy such as New Zealand. 3) The pattern between each corporate governance variable and cost of capital. 4) The best method of calculating cost of capital in New Zealand and Singapore market.
Attempts at developing corporate governance in New Zealand go back to 1970s. The first set of rules and regulations regarding corporate governance practices were implemented in 1988 under the Securities Act of 1988 in New Zealand. Primary attempts in Singapore took place in 1980s by Security Industry Act of 1986. Continues efforts led to enactment of Companies Act of 1990 which was one of the effective acts regarding corporate governance. The main purpose of these mandatory corporate governance rules are promoting transparency, accountability and overall efficiency in corporate governance practices. 
This thesis makes a number of contributions to corporate governance practices and cost of capital in several ways. First, the relationship between corporate governance practices and financial performance is investigated in prior studies but the relationship between corporate governance and cost of capital is largely missing. This study contributes to the body of knowledge by filling this gap. Second, the majority of corporate governance studies focus on large mature economies such as US and UK and other European markets. Smaller markets such as NZ with significant agriculture based industries may differ. Analyses based on NZ and Singapore play an important role in adding to the generalizability of the understanding of corporate governance relationships. Third, the impact of the global financial crisis may differ between industrial markets and protein supply based economies. This difference and corporate regulatory changes as response to the financial crisis again inform a broader understanding of the corporate governance sophistication and foci. Fourth, an open economy like Singapore which is well-known as the financial hub of its region has different experiences in corporate governance and cost of capital rather than a more isolated commodity export economy such as New Zealand. Fifth, one major concern of academics and practitioners alike is finding the best method of calculating cost of capital. Developing a more about method of calculating cost of capital in New Zealand and Singapore is the major contribution this study makes to the finance literature. 
Data needed to test various hypotheses are sourced from the NZX company research (NZX Deep Archive), Singapore Exchange Market website (SGX), and Datastream and Thomson one banker databases. Required data collected from large listed companies in New Zealand (NZX50) and Singapore (STI Constituent) during 2006-2010. Care is taken to clean the data reviewing missing data, outliers and distributional properties. The focus of this thesis is on the corporate governance variables that have been supported in the literature and related theories as providing an appropriate structure for the institutions in the environment in which they operate. Because of causality test, Generalized Least Square method in pooled data estimations to explore the role of corporate governance variables on cost of capital. Careful diagnostic testing is under taken related to multicollinearity, endogeneity and heteroskedasticity employed in this study to check hypotheses relevant in this study. 
The findings indicate that there is negative relationship between corporate governance and cost of capital and this means that complying corporate governance guidelines help companies to control their cost of capital. However, the process by which corporate governance affects cost of capital is different in New Zealand and Singapore. Different characteristics of corporate governance in these countries led to different recommendations made by this thesis. Larger companies need higher levels of control and that is the reason of having larger boards in Singaporean companies. Findings of this thesis indicate that large boards in New Zealand and smaller boards in Singapore could help companies to control their cost of capital. Recommendations of this thesis indicate that less outside directors required in Singapore while the level of outside directors in New Zealand seems effective. Findings of this thesis about ownership structure indicate that the present level of insider ownership in both countries needs modification. Higher levels of insider ownership in both countries could help companies to control their cost of capital. Recommendation of this thesis about block ownership was slightly different in two countries. While higher levels of block ownership in Singapore recommended, the present situation of block owners in New Zealand seems to be ineffective. The findings of this thesis recommend that the level of block ownership in New Zealand should whether increase or decrease in order to help companies control their cost of capital. Various recommendations made by this thesis indicate that it is important to further develop the corporate governance code incorporating country specific characteristics.

text: The relationship between corporate governance practices and cost of capital in large listed companies of New Zealand and Singapore This thesis investigates the effect of corporate governance practices on cost of capital in listed companies. In particular, this study examines: 1) the relationship between corporate governance practices and cost of capital in large listed companies in New Zealand and Singapore. 2) The effects of corporate governance on cost of capital in an open economy like Singapore which is well-known as the financial hub of its region and a more isolated commodity export economy such as New Zealand. 3) The pattern between each corporate governance variable and cost of capital. 4) The best method of calculating cost of capital in New Zealand and Singapore market.
Attempts at developing corporate governance in New Zealand go back to 1970s. The first set of rules and regulations regarding corporate governance practices were implemented in 1988 under the Securities Act of 1988 in New Zealand. Primary attempts in Singapore took place in 1980s by Security Industry Act of 1986. Continues efforts led to enactment of Companies Act of 1990 which was one of the effective acts regarding corporate governance. The main purpose of these mandatory corporate governance rules are promoting transparency, accountability and overall efficiency in corporate governance practices. 
This thesis makes a number of contributions to corporate governance practices and cost of capital in several ways. First, the relationship between corporate governance practices and financial performance is investigated in prior studies but the relationship between corporate governance and cost of capital is largely missing. This study contributes to the body of knowledge by filling this gap. Second, the majority of corporate governance studies focus on large mature economies such as US and UK and other European markets. Smaller markets such as NZ with significant agriculture based industries may differ. Analyses based on NZ and Singapore play an important role in adding to the generalizability of the understanding of corporate governance relationships. Third, the impact of the global financial crisis may differ between industrial markets and protein supply based economies. This difference and corporate regulatory changes as response to the financial crisis again inform a broader understanding of the corporate governance sophistication and foci. Fourth, an open economy like Singapore which is well-known as the financial hub of its region has different experiences in corporate governance and cost of capital rather than a more isolated commodity export economy such as New Zealand. Fifth, one major concern of academics and practitioners alike is finding the best method of calculating cost of capital. Developing a more about method of calculating cost of capital in New Zealand and Singapore is the major contribution this study makes to the finance literature. 
Data needed to test various hypotheses are sourced from the NZX company research (NZX Deep Archive), Singapore Exchange Market website (SGX), and Datastream and Thomson one banker databases. Required data collected from large listed companies in New Zealand (NZX50) and Singapore (STI Constituent) during 2006-2010. Care is taken to clean the data reviewing missing data, outliers and distributional properties. The focus of this thesis is on the corporate governance variables that have been supported in the literature and related theories as providing an appropriate structure for the institutions in the environment in which they operate. Because of causality test, Generalized Least Square method in pooled data estimations to explore the role of corporate governance variables on cost of capital. Careful diagnostic testing is under taken related to multicollinearity, endogeneity and heteroskedasticity employed in this study to check hypotheses relevant in this study. 
The findings indicate that there is negative relationship between corporate governance and cost of capital and this means that complying corporate governance guidelines help companies to control their cost of capital. However, the process by which corporate governance affects cost of capital is different in New Zealand and Singapore. Different characteristics of corporate governance in these countries led to different recommendations made by this thesis. Larger companies need higher levels of control and that is the reason of having larger boards in Singaporean companies. Findings of this thesis indicate that large boards in New Zealand and smaller boards in Singapore could help companies to control their cost of capital. Recommendations of this thesis indicate that less outside directors required in Singapore while the level of outside directors in New Zealand seems effective. Findings of this thesis about ownership structure indicate that the present level of insider ownership in both countries needs modification. Higher levels of insider ownership in both countries could help companies to control their cost of capital. Recommendation of this thesis about block ownership was slightly different in two countries. While higher levels of block ownership in Singapore recommended, the present situation of block owners in New Zealand seems to be ineffective. The findings of this thesis recommend that the level of block ownership in New Zealand should whether increase or decrease in order to help companies control their cost of capital. Various recommendations made by this thesis indicate that it is important to further develop the corporate governance code incorporating country specific characteristics.

year: 2014

title: A Needs Assessment of Conservation Educators within the Department of Conservation

authors: Bianchi, Valerie

subjects: conservation education

abstract: The Department of Conservation (DOC) is the government body that is responsible for conserving Aotearoa/New Zealand’s natural and historic heritage. Although education has not been a primary part of what DOC does, the organisation participates in education in a variety of ways. In order to coordinate and strategize their involvement in education, a new policy has been put in place. This policy, outlined in the National Education Strategy 2010-2030 aims to set the intentions and objectives for education at DOC. A companion to this, the National Education Strategy Implementation Plan, provides some guidance on how goals may be achieved. This emphasises DOC educators’ work in partnership with teachers, which may represent a change in how DOC staff have worked in the past. Since the recent coordination of education at DOC may be different to the way some staff work, a needs assessment of DOC educators’ professional support requirements was called for. Understanding what professional development, support and resources DOC educators need could allow for effective professional support to be put in place. Having adequate professional support could have an ongoing influence on DOC educators’ ability to achieve DOC’s outcomes. Non-formal environmental educators, such as those working at DOC, are key players in environmental education/education for sustainability (EE/EfS). This group of educators have historically been engaged by formal educators to deliver EE/EfS into their classrooms, and in addition, some scholars have claimed that much of what occurs to educate people about the environment is in the non-formal setting. Non-formal educators need considerable professional support; including professional development, organisational support and resources to do their jobs and see outcomes are achieved.

This thesis was conducted as an interpretive, mixed methods study directed at understanding what professional development, support and resources DOC educators working in education need to do their jobs. Methods for data collection included document analysis, interviews and a survey. Document analysis of key DOC education documents as well as interviews with national education staff allowed for context to be understood regarding the current factors influencing education and educators at DOC. In order to get a sense of DOC educators’ beliefs and opinions about education and the work they are doing, a survey was conducted with DOC staff who self-identified as educators. The data generated from the survey was further elucidated by interviews with DOC educators. The findings of the study revealed that while there is a clearly articulated approach to education at DOC as well as a general level of acceptance among DOC educators, organisational support is needed to help staff understand DOC’s role in education and how to practically implement that into work. DOC educators indicated that they need greater support in order to authentically incorporate Māori views into conservation education, work with teachers and understand EE/EfS best practice. In addition, while DOC’s education policy was put in place to get higher quality outcomes, it will require a substantial amount of time to implement. Time was found to be a resource that DOC educators needed more of. In order to move forward in education, DOC educators need adequate and on-going professional development to increase skills and knowledge. In addition, organisational support and networks are needed as well as a reasonable allotment of time in order to uphold what is being asked of them.

text: A Needs Assessment of Conservation Educators within the Department of Conservation The Department of Conservation (DOC) is the government body that is responsible for conserving Aotearoa/New Zealand’s natural and historic heritage. Although education has not been a primary part of what DOC does, the organisation participates in education in a variety of ways. In order to coordinate and strategize their involvement in education, a new policy has been put in place. This policy, outlined in the National Education Strategy 2010-2030 aims to set the intentions and objectives for education at DOC. A companion to this, the National Education Strategy Implementation Plan, provides some guidance on how goals may be achieved. This emphasises DOC educators’ work in partnership with teachers, which may represent a change in how DOC staff have worked in the past. Since the recent coordination of education at DOC may be different to the way some staff work, a needs assessment of DOC educators’ professional support requirements was called for. Understanding what professional development, support and resources DOC educators need could allow for effective professional support to be put in place. Having adequate professional support could have an ongoing influence on DOC educators’ ability to achieve DOC’s outcomes. Non-formal environmental educators, such as those working at DOC, are key players in environmental education/education for sustainability (EE/EfS). This group of educators have historically been engaged by formal educators to deliver EE/EfS into their classrooms, and in addition, some scholars have claimed that much of what occurs to educate people about the environment is in the non-formal setting. Non-formal educators need considerable professional support; including professional development, organisational support and resources to do their jobs and see outcomes are achieved.

This thesis was conducted as an interpretive, mixed methods study directed at understanding what professional development, support and resources DOC educators working in education need to do their jobs. Methods for data collection included document analysis, interviews and a survey. Document analysis of key DOC education documents as well as interviews with national education staff allowed for context to be understood regarding the current factors influencing education and educators at DOC. In order to get a sense of DOC educators’ beliefs and opinions about education and the work they are doing, a survey was conducted with DOC staff who self-identified as educators. The data generated from the survey was further elucidated by interviews with DOC educators. The findings of the study revealed that while there is a clearly articulated approach to education at DOC as well as a general level of acceptance among DOC educators, organisational support is needed to help staff understand DOC’s role in education and how to practically implement that into work. DOC educators indicated that they need greater support in order to authentically incorporate Māori views into conservation education, work with teachers and understand EE/EfS best practice. In addition, while DOC’s education policy was put in place to get higher quality outcomes, it will require a substantial amount of time to implement. Time was found to be a resource that DOC educators needed more of. In order to move forward in education, DOC educators need adequate and on-going professional development to increase skills and knowledge. In addition, organisational support and networks are needed as well as a reasonable allotment of time in order to uphold what is being asked of them.

year: 2016

title: To act or not to act? That is the question!

authors: Bruce Ferguson, Pip

abstract: The year was 2003. I was a new Research Manager working in a Māori tertiary institution that had a history of inequitable treatment by government, through not receiving establishment funding that had gone unproblematically to non-Māori institutions. Repeating a common pattern in New Zealand, our government had decided to implement a research funding scheme, to be measured at the level of the individual academic. My institution’s decision to participate in the PBRF was not without its difficulties, and it is here that the ethics of participation become problematic. This chapter is about our ability to articulate our values, to show how we work these out in our practice, and how we are accountable to ourselves and others for that practice. Would I, with the benefit of hindsight, have encouraged my institution to enter the PBRF again?

text: To act or not to act? That is the question! The year was 2003. I was a new Research Manager working in a Māori tertiary institution that had a history of inequitable treatment by government, through not receiving establishment funding that had gone unproblematically to non-Māori institutions. Repeating a common pattern in New Zealand, our government had decided to implement a research funding scheme, to be measured at the level of the individual academic. My institution’s decision to participate in the PBRF was not without its difficulties, and it is here that the ethics of participation become problematic. This chapter is about our ability to articulate our values, to show how we work these out in our practice, and how we are accountable to ourselves and others for that practice. Would I, with the benefit of hindsight, have encouraged my institution to enter the PBRF again?

year: 2013