Monitoring and incentives of executives in risky firms : a test of the association with firm performance

This study investigates the relationship between a firm's risk and the effectiveness of the firm's corporate governance practices. Previous research investigating the relationship between corporate controls and firm performance has been mixed and often weak. Therefore, this study sets out to determine the efficiency of monitoring and incentive contracts given certain characteristics of the firm. That is, the study sets out to determine whether risk firms with higher monitoring and levels of incentives are associated with higher firm performance.
The results of this study of 282 firms demonstrate how the relationship between firm risk and performance is associated with the monitoring and incentive contracts used by these firms. In particular, the results of this study showed that the negative association between risk and firm performance is weakened when firms have stronger monitoring and incentive mechanisms. The particular contribution of this study is to show that the role of corporate governance variables infirm performance should be evaluated in the context of the firm's risk.

A field test of the diversity-openness moderator model in newly formed groups: openness to diversity affects group decision effectiveness and interaction patterns

Detrimental effects of diversity in workgroups has frequently been observed but research identifying the factors that lead to negative or positive effects in heterogeneous groups is lacking. The perceived dissimilarity openness moderator model provides one explanation of the process by which diversity influences group affective, behavioral, and cognitive outcomes. Specifically the model identifies individual, group, and organizational openness as moderating the effects of diversity in workgroups. In this paper evidence is provided from a field study that increased openness to perceived dissimilarity leads to better outcomes in newly formed groups. This study also constitutes a significant building block toward the development of theory concerning the moderating variables of the relationship between diversity and group processes, and outcomes of organizations.

Giving content to the principle of proportionality: happiness and pain as the universal currency for matching offence seriousness and penalty severity

The principle of proportionality prescribes that the punishment should equal the crime. It is one of the most important principles of sentencing. Yet, despite its widespread acceptance it offers no meaningful guide to sentencing. Hence penalty levels fluctuate greatly between jurisdictions and within jurisdictions. This is because there is no universally agreed criterion for measuring offence seriousness or penalty severity. This article suggests that the appropriate criteria for matching offence seriousness and penalty severity is the level of unhappiness or pain stemming from each of these impositions. Thus, for example, the level of pain meted out to a rape offender should equal the level of pain caused to a rape victim. Emerging scientific studies on human well-being and happiness show that human beings are similarly built in terms of the experiences that are either conducive or inimical to well-being. This commonality provides a strong foundation to be confident to make reasonably accurate predictions concerning the extent to which adverse events, such as being the victim of a criminal offence or subjected to a form of criminal sanction will stifle human flourishing. This will then allow us to match accurately offence seriousness and penalty level.

Measuring consumer involvement : a test of the automobile involvement scale

This study empirically investigated consumer involvement with a product class. Data was collected from 178 vehicle buyers. Reliability and factor analyses investigated the structure of the Bloch (1981) instrument and the dimensions underlying involvement. In terms of replication, the results suggest the reduced-item version of the instrument previously proposed by Shimp and Sharma (1983) is reliable and is a less excessive measurement instrument. Similar dimensions underlying involvement with the product class are reported here. The study extends previous work by obtaining similar results in a different cultural setting, producing findings from a more relevant sample, applying an additional method of data collection, and suggesting that the underlying dimensions may be temporally stable.

A conformity test of corporate financial disclosures in Asian and Middle East countries

This paper investigates the financial disclosure practices of corporate annual reports published in Asian countries including Bangladesh, Indonesian, Malaysia and the Middle East countries including Bahrain, Iran, Jordan, Kuwait, Oman, Pakistan, Qatar, Saudi Arabia and Turkey. The purpose of the study is to measure the financial disclosure diversity in these countries, with a view to developing a classification of their similarities and differences in respect to their compliance with International Accounting Standards (IASs). Annual reports of 132 public companies listed on the relevant countries stock exchanges are the central data source, supplemented with other reliable information about financial disclosure practices in each country. A disclosure checklist adopted from all IASs and summarised in 306 individual items of financial disclosures is used as a means of extending an understanding of financial reporting literature. Additionally, it provides an indication of voluntary progress towards harmonisation of international accounting practices in several Asian and Middle Eastern countries. Results show the degree of conformity with IASs from less to high conformity is: Saudi Arabia, Qatar, Bangladesh, Iran, Bahrain, Jordan, Pakistan, Oman, Turkey, Malaysia, Kuwait and Indonesia.

Shaming, shame and recidivism : a test of reintegrative shaming theory in the white-collar crime context

Despite the popularity of reintegrative shaming theory in the field of criminology, only a small number of studies purporting to test it have been published to date. The aim of the present study, therefore, is to provide an empirical test of Braithwaite's (1989; Braithwaite and Braithwaite 2001) theory of reintegrative shaming in the white-collar crime context. The data on which the study is based came from survey data collected from a group of 652 tax offenders. Consistent with predictions, it was found that feelings of reintegration/stigmatization experienced during an enforcement event were related to reoffending behaviour. Those taxpayers who felt that their enforcement experience had been reintegrative in nature were less likely to report having evaded their taxes two years later. Consistent with Braithwaite and Braithwaite's (2001) hypotheses, shame-related emotions were also found to partially mediate the effect of reintegration on subsequent offending behaviour. Implications for the effective regulation of white-collar offenders are discussed.

Revisiting capital structure theory : a test of pecking order and static order trade-of model from Malaysian capital market

This study revisits the capital structure theory and test Pecking Order Hypothesis (POH) and Static Order Trade-off theory (STOT) using Malaysian Listed firms over a period from 1999 to 2002. The evidence from pecking order model suggests that the internal fund deficiency is the most important determinant that possibly explains the issuance of new debt in Malaysian capital market despite the lower predicting power.  While static trade off-model is not fit to explain the issuance of new debt issue in Malaysian capital market. This is an interesting findings that confirm the fact that Malaysian firms do not too much care about tax-shield benefit derive from employ both debt and non-debt tax-shield. The finn's size, which is used to neutralize the size effect, appears to provide some explanation for the variation in its capital structure policy choice; however asset structure and growth no evidence of static-order-trade-off is observed in Malaysian capital market.

Simulation of three-point bending test of titanium foam for biomedical applications

Using Titanium (Ti) foam as an implant material is a new approach for biomedical applications and it is important to understand the mechanical behaviors of this new foam material. In the present study, the bending of the Ti foam has been simulated and compared against recently published data [1]. FE Analysis has been performed by Abaqus software. Stiffness and Yield strength of foams between 50% (cortical bone) to 80% (cancellous bone) porosity range were considered. This study showed that crushable foam material model in Abaqus, which has developed primarily for Aluminum (Al) foam alloys, is also valid for Ti Foam before any crack or damage occurs in the sample.

Including the siblings of youth substance abusers in a parent-focused intervention : a pilot test of the best plus program

Substance use is common among young people and can escalate into significant problems for affected individuals and their families. Family responses can influence the course of youth substance use and its consequences for family members, including parents and siblings. Family-level interventions developed to date have neglected the important role that siblings can play. This article describes a pilot test of an intervention designed to assist parents and siblings affected by youth substance use and related problems. The BEST Plus intervention consisting of professionally-led, multifamily groups sequenced over eight sessions is described with reference to the intended therapeutic processes. Professionally observed and self-reported changes for family participants including siblings suggested that the program had a beneficial therapeutic impact. This evaluation of early impacts suggests the BEST Plus program
offers a promising means of assisting families to respond to substance use problems in young people.

A test of the Wagner's hypothesis for the Fiji Islands

In this article we examine Wagner's law for Fiji for the period 1970 to 2002. Using the Johansen (1988) test for cointegration, we find one cointegration relationship between national output and government expenditure. Using five different long run estimators, we find robust results on the impact of national income on government expenditure. The elasticity ranges from 1.36 to 1.44, implying that a 1% increase in income leads to a 1.36-1.44% increase in government expenditure. Moreover, we find that in the long run national income Granger causes government expenditure. While these results are consistent with Wagner's law, we warn policy makers that because Fiji's total debt stands at around 69% of GDP, in future the bulk of expenditure will go towards debt financing at the expense of productive sectors.