A longitudinal study of corporate earnings guidance in Australia’s continuous disclosure environment

Since the introduction of a statutory‐backed continuous disclosure regime (CDR) in 1994, regulatory reforms have significantly increased litigation risk in Australia for failure to disclose material information or for false and misleading disclosure. However, there is almost no empirical research on the impact of the reforms on corporate disclosure behaviour. Motivated by the absence of research and using management earnings forecasts (MEFs) as a disclosure proxy, this study examines (1) why managers issue earnings forecasts, (2) what firm‐specific factors influence MEF characteristics, and (3) how MEF behaviour changes as litigation risk increases. Based on theories in information economics, a theoretical framework for MEF behaviour is formulated which includes antecedent influencing factors related to firms‟ internal and external environments. Applying this framework, hypotheses are developed and tested using multivariate models and a large sample of hand-collected MEFs (7,213) issued by top 500 ASX-listed companies over the 1994 to 2008 period. The results reveal strong support for the hypotheses. First, MEFs are issued to reduce information asymmetry, litigation risk and signal superior performance. Second, firms with better financial performance, smaller earnings changes, and lower operating uncertainty provide better quality MEFs. Third, forecast frequency and quality (accuracy, timeliness and precision) noticeably improve as litigation risk increases. However, managers appear to be still reluctant to disclose earnings forecasts when there are large earnings changes, and an asymmetric treatment of news type continues to prevail (a good news bias). Thus, the findings generally provide support for the effectiveness of the CDR regulatory reforms in improving disclosure behaviour and will be valuable to market participants and corporate regulators in understanding the implications of management forecasting decisions and areas for further improvement.

Effects of disclosure of sexual identity at work for gay, lesbian, bisexual, transgender and intersex (GLBTI) employees in Queensland

All Australian businesses are governed by legislation aiming to prevent workplace discrimination based on sexual orientation and sexual identity and serious penalties apply to companies found contravening legislation. While other Australian studies have examined these issues, Queensland has either not been included or relevant data is not easily identified. This paper presents the results of an exploratory study using a quantitative survey to determine the consequences of disclosure of a person’s sexual orientation or gender identity to colleagues in workplaces in Queensland. Results suggest GLBTI workers are disclosing their sexuality more and are experiencing more discrimination in the workplace, despite anti-discrimination policies. This suggests the need to further investigate companies’ compliance with workplace legislation.

Fault isolation in distributed generation connected distribution networks

Protection of a distribution network in the presence of distributed generators (DGs) using overcurrent relays is a challenging task due to the changes in fault current levels and reverse power flow. Specifically, in the presence of current limited converter interfaced DGs, overcurrent relays may fail to isolate the faulted section either in grid connected or islanded mode of operation. In this paper, a new inverse type relay is presented to protect a distribution network, which may have several DG connections. The new relay characteristic is designed based on the measured admittance of the protected line. The relay is capable of detecting faults under changing fault current levels. The relay performance is evaluated using PSCAD simulation and laboratory experiments.

Personal Injuries Proceedings Act 2002, s 32 - Duty to Disclose - consequences of non-disclosure - discretion to excuse non-compliance

In Newson v Aust Scan Pty Ltd t/a Ikea Springwood [2010] QSC 223 the Supreme Court examined the discretion under s 32(2) of the Personal Injuries Proceedings Act 2002 (Qld), to permit a document which has not been disclosed as required by the pre-court procedures under the PIPA to be used in a subsequent court proceeding. This appears to be the first time that the nature and parameters of the discretion have been judicially considered.

Analysis of electromagnetic forces in high voltage superconducting fault current limiters with saturated core

This paper presents a three-dimensional numerical analysis of the electromagnetic forces within a high voltage superconducting Fault Current Limiter (FCL) with a saturated core under short-circuit conditions. The effects of electrodynamics forces in power transformer coils under short-circuit conditions have been reported widely. However, the coil arrangement in an FCL with saturated core differs significantly from existing reactive devices. The boundary element method is employed to perform an electromagnetic force analysis on an FCL. The analysis focuses on axial and radial forces of the AC coil. The results are compared to those of a power transformer and important design considerations are highlighted.

Home sustainability policy and mandatory disclosure. a survey of buyer and seller participation and awareness in Qld

Sustainability Declarations were introduced by the Queensland State Government on 1 January 2010 as a mandatory disclosure measure for all dwelling sales in the State. The purpose of this paper is to assess the impact this policy decision has had in the homebuyer decision-making process in the first year since its introduction and to consider the effectiveness of the legislation in meeting its policy objectives. This quantitative research comprised a two-part process: the first stage surveyed the level of compliance by the real estate industry with the legislative requirements. Stage two comprised an online survey of Real Estate Institute of Queensland members to determine what impact the Sustainability Declaration has had on home buyer decision making and how effective the legislative mechanisms have been in achieving the policy objectives. This paper assesses the initial impact of this initiative over its first year in operation. These preliminary findings indicate a high level of compliance from the real estate industry, however results confirm that sustainability is yet to become a criterion of relevance to the majority of homebuyers in Queensland. These quantitative findings support anecdotal evidence that the objectives of the legislation to increase homebuyer awareness and relevance of sustainability issues in the home are not being achieved. Sustainability Declarations are a first step in raising homebuyer awareness of the importance of sustainability in housing. Further monitoring of this impact will be carried out over time. This is the first research undertaken to assess the impact of this new mandatory disclosure legislation in Queensland, Australia. The findings will inform policy makers and assist them to assess the effectiveness of the current legislation in achieving its policy objectives.

Disclosure of proxy voting information by Australian managed investment schemes

The US Securities and Exchange Comission requires registered management investment companies to disclose how they vote proxies relating to portfolio securities they hold. The primary purpose of this rule is to enable fund investors to monitor the role of institutional shareholders in the corporate governance practices of public companies. In Australia, despite reform proposals, there are no regulations requiring institutional investors to report proxy voting procedures and practises. There is little evidence of voluntary disclosure of proxy voting by Australian managed investment schemes in equities, indicating that there are costs involved in such disclosure.

Sensor fault-tolerant observer applied in satellite attitude control

The observing failure and feedback instability might happen when the partial sensors of a satellite attitude control system (SACS) go wrong. A fault diagnosis and isolation (FDI) method based on a fault observer is introduced to detect and isolate the fault sensor at first. Based on the FDI result, the object system state-space equation is transformed and divided into a corresponsive triangular canonical form to decouple the normal subsystem from the fault subsystem. And then the KX fault-tolerant observers of the system in different modes are designed and embedded into online monitoring. The outputs of all KX fault-tolerant observers are selected by the control switch process. That can make sense that the SACS is part-observed and in stable when the partial sensors break down. Simulation results demonstrate the effectiveness and superiority of the proposed method.

Good secrets, bad secrets : disclosure in children’s picture books about sexual child abuse

Well over 50 picture books have been published for children on the topic of sexual child abuse (Lampert & Walsh, 2010) many with the aim of teaching their very young readers how to tell the difference between good and bad secrets. This paper looks at three recent picture books for how they focus on disclosure as an end point.

Modeling fault among motorcyclists involved in crashes

Singapore crash statistics from 2001 to 2006 show that the motorcyclist fatality and injury rates per registered vehicle are higher than those of other motor vehicles by 13 and 7 times respectively. The crash involvement rate of motorcyclists as victims of other road users is also about 43%. The objective of this study is to identify the factors that contribute to the fault of motorcyclists involved in crashes. This is done by using the binary logit model to differentiate between at-fault and not-at-fault cases and the analysis is further categorized by the location of the crashes, i.e., at intersections, on expressways and at non-intersections. A number of explanatory variables representing roadway characteristics, environmental factors, motorcycle descriptions, and rider demographics have been evaluated. Time trend effect shows that not-at-fault crash involvement of motorcyclists has increased with time. The likelihood of night time crashes has also increased for not-at-fault crashes at intersections and expressways. The presence of surveillance cameras is effective in reducing not-at-fault crashes at intersections. Wet road surfaces increase at-fault crash involvement at non-intersections. At intersections, not-at-fault crash involvement is more likely on single lane roads or on median lane of multi-lane roads, while on expressways at-fault crash involvement is more likely on the median lane. Roads with higher speed limit have higher at-fault crash involvement and this is also true on expressways. Motorcycles with pillion passengers or with higher engine capacity have higher likelihood of being at-fault in crashes on expressways. Motorcyclists are more likely to be at-fault in collisions involving pedestrians and this effect is higher at night. In multi-vehicle crashes, motorcyclists are more likely to be victims than at fault. Young and older riders are more likely to be at-fault in crashes than middle-aged group of riders. The findings of this study will help to develop more targeted countermeasures to improve motorcycle safety and more cost-effective safety awareness program in motorcyclist training.

RCA method for fault diagnosis in digital substations of power systems

The authors present a Cause-Effect fault diagnosis model, which utilises the Root Cause Analysis approach and takes into account the technical features of a digital substation. The Dempster/Shafer evidence theory is used to integrate different types of fault information in the diagnosis model so as to implement a hierarchical, systematic and comprehensive diagnosis based on the logic relationship between the parent and child nodes such as transformer/circuit-breaker/transmission-line, and between the root and child causes. A real fault scenario is investigated in the case study to demonstrate the developed approach in diagnosing malfunction of protective relays and/or circuit breakers, miss or false alarms, and other commonly encountered faults at a modern digital substation.

The Neighbourhood Disputes Resolution Act 2011 (Qld) and disclosure issues

This article examines the recently introduced Neighbourhood Disputes Resolution Act 2011 (Qld). The operation of the Act is considered as it impacts upon the responsibility of neighbours for dividing fences and trees as well as disclosure obligations associated with sale transactions. A particular focus of the article is the interrelationship of the disclosure obligations imposed by the Act with the operation of standard contractual warranties in Queensland.

Non-party disclosure - UCPR r 242(2)

In TSPD Pty Ltd v Resortrez Pty Ltd [2008] QSC 001 Fryberg J made an order permitting the applicant to inspect and copy documents which had been produced to the court under a subpoena, but had remained in the registry. Though not essential to the decision the judgment contains some interesting discussion about the construction of r 242 of the Uniform Civil Procedure Rules 1999 (Qld) (UCPR).