Exploring the moderating role of growth options on the relation between board characteristics and management earnings forecasts

Manuscript Type
Empirical
Research Question/Issue
This study examines whether director independence, reputation, and financial expertise are related to management earnings forecast (MEF) activity. In particular, we examine whether such a relationship is moderated by firms’ growth options.
Research Findings/Insights
Using Australian archival data for 1,928 firm-years between 1999 and 2006, we find several board characteristics have a significant positive relationship with: (1) the likelihood of firms issuing MEFs; (2) their specificity; (3) their accuracy; and (4) a negative relationship with their bias. For (1), (2), and (3) we show that these relationships are accentuated for firms with high growth options.
Theoretical/Academic Implications
While the theory of voluntary disclosure suggests firms will disclose information that is favorable to them or their managers, well-governed firms issue informative MEFs that potentially reduce information asymmetries in capital markets. We extend the prior literature by showing that such a relation is enhanced in the presence of information asymmetry and moral hazard associated with growth options.
Practitioner/Policy Implications
Our results have strategic implications for nomination committees by showing that independent directors and those with strong reputations and financial expertise enhance the governance of high growth firms. We also inform the regulatory debate by showing that good corporate governance enhancing disclosure quality is context-specific – it is not a case of “one size fits all”.

Contemporary service theories integrated into construction project management

Project management plays an important role in successful completion of construction projects. One trend in the construction sector is a growing emphasis on project management. Ineffective integration of project management of project-based enterprises and operational processes of project owners, contractors and consultants prevents synergistic effects and causes resource waste and management inefficiency. Contemporary service theories, specifically service science and service-dominant logic, elucidate the involvement of clients in the creation of value and reinforce the nested relationship between project management service providers and clients. This study expands understanding of service theories by complementing service systems from project management and proposes a new framework for project management service systems, embedding service exchange and value co-creation in the construction processes. Research outcomes represent the importance of project management embedded with service theories in the construction industry and suggestions of research questions for future work.

Minahasan indigenous perspectives on place planning and management : tracing the indigenous culture through the lens of local wisdom

Indigenous cultures draw upon many thousands of years of residency and environmental adaptation offering unique knowledge resources to better understand our landscapes and environment. The Minahasan society, on the island of Sulawesi in the Indonesian archipelago, is one such Indigenous community. The Minahasan are the Indigenous community of northern Sulawesi, before the Portuguese and Dutch 1500-1900 colonization of this island, and the later nationalist cultural assimilation following post Indonesian independence. Thus, some 500 years of post-European contact and management can be contrasted against over I 00,000 years of Minahasan society. Further, the majority of this colonisation has been focused upon the coastal fringes resulting in a relatively intact Minahasan cultural landscape within the interior of northern Sulawesi focused upon the Tondano Lake catchment. This paper considers the importance of the Minahasan-formed cultural landscape, its importance to this culture, and the role and influence it continues to have in settlement formation and planning in northern Sulawesi despite conventional Indonesian and Western-informed sustainable urban and regional planning traditions and knowledge. It draws upon intensive qualitative research using 14 different villages, to analyse and compare local knowledge and land-relationships developed by the respective communities to manage and curate their unique characteristics as well as ensuring adaption without compromising their cultural, social and economic values. The research embodies this ethnoecological information in seeking to analyse historical and contemporary land use planning systems, and to offer a future planning perspective that will respect and endure this relationship and environmental management regime.

The relationship between the incidence of medullated fibres in mohair and live weight over the lifetime of Angora goats

The presence of even a small amount of medullated fibre, in otherwise high quality mohair, may have a pronounced adverse effect on its value and end-use potential. However, there is considerable confusion about the effects, if any, of environmental variables and management upon the incidence of medullated fibres in mohair. This study examined how the incidence of medullated fibres (Med, % by number) is related to the fleece-free live weight (FFLwt) of Angora goats of different genetic origins over their lifetime, and how the relationship varies with other lifetime factors. Measurements were made over 11 shearing periods of 6 months, on a population of Angora goats representing the current range and diversity of genetic origins in Australia, including South African, Texan and interbred admixtures of these and Australian sources. Records of breed, sire, dam, date of birth, dam age, birth weight, birth parity, weaning weight, live weight, fleece growth and fleece quality were taken for castrated males (wethers) (n = 94 animals). A restricted maximum likelihood (REML) model was developed for log10(Med + 1), which allowed the observations of the same animal at different ages to be correlated in an unstructured manner. Med varied between 0.1% and 4.3%. The median average FFLwt during a shearing interval increased from 15 kg at 1 year old to 59 kg at 6 years old. Generally, within each shearing interval, Med increased with increasing average FFLwt. However, the size and shape of the relationship differed greatly between shearing ages. For example, at 3.5 years of age Med increased from about 1.1% at an average FFLwt of 26 kg to 2.6% at 50 kg, whilst at 5.0 years of age Med only changed from 1.4% at 32 kg to 1.6% at 56 kg. Goats with mixed genetic parentage showed an increase in Med at some shearings, particularly at younger ages. Variation in animal nutrition, as measured by live weight change during shearing periods, did not affect Med. The results supplement our earlier findings that mohair mean fibre diameter and clean mohair fleece weight, but not staple length, are greater in larger Angora goats. Live weight needs to be taken into account in genetic evaluation of the incidence of medullated fibres. We conclude that any advantage in handling fewer but larger Angora goats rather than more but smaller goats will come at the detriment of producing lower quality mohair, both in terms of increased Med and mean fibre diameter.

A conceptual model of consumer personality-brand preferences relationship

There have been a significant number of studies that investigate the antecedents to customers in forming their brand preferences. However, there is a dearth of research devoted to examining the role of customer personality in marketing. This conceptual paper attempts to cover this gap through examining the relationships between consumer personality and brand preference. We developed a conceptual model which is based on the Big Five theory of personality and show how this could be applied to the marketing context. It is proposed that human personality has a significant relationship with brand preferences.

Patient engagement strategies used for hypertension and their influence on self-management attributes

Background. Several effective methods to facilitate patient self-management of hypertension are available in primary care. These include direct support from community pharmacists and general practice, and the use of home blood pressure (BP) monitoring. The aim of this study is to establish the prevalence of use of key strategies and to determine their independent relationship with patient self-management attributes.

Methods. A survey of patients with treated hypertension was undertaken in 27 community pharmacies. This established recent use of BP monitoring and advice from health professionals. Patient awareness of BP and targets, appropriateness of BP targets and adherence to anti-hypertensive medications were assessed as indicative self-management outcomes. Predictors of outcomes were determined using binary logistic regression.

Results. Overall, 215 surveys were returned. Two-thirds of patients were aged >65 years, and 45% had conditions warranting tighter BP control (<130/80 mmHg). Almost all patients reported monitoring of their BP in the previous year and 63% could report their most recent BP reading. Just 36% reported knowing a target BP, and 78% of reported targets were within guidelines recommendations. One-fifth (22%) monitored their own BP, and 15% reported non-adherence to medication. Doctors provided the large majority of professional advice. Self-monitoring or documentation of BP readings was independently associated with increased likelihood of BP and target BP being known.

Conclusions. Regular monitoring of BP does not automatically translate to professional advice. Increased uptake of patient self-monitoring should be promoted as a means of enabling self-management.

The moderating effects of demographic factors and hukou status on the job satisfaction-subjective well-being relationship in urban China

This study tests the moderating effect of job complexity and social status, proxied by a unique Chinese cultural variable (hukou status), on the relationship between job satisfaction and subjective well-being in urban China. Data on these and a range of demographic variables were collected from 1025 workers in Fujian Province in the People's Republic of China. Results confirm that hukou status does moderate the job satisfaction-subjective well-being relationship in this sample. Several further moderating relationships are also detected. The study adds the empirical literature on job satisfaction and subjective well-being in China and also furthers understanding of the complex relationship between these constructs. © 2011 Taylor & Francis.

Does privatisation drive innovation? Business model innovation through stakeholder viewpoints: the case of Sydney Airport 10 years post-privatisation

Broad economic and social reform, rapid technological change and increasing global competition have meant that organisations must consider all aspects of their business model in order to successfully create and capture ongoing customer value. In this study it is proposed that business model innovation must always consider and incorporate the symbiotic and interdependent relationship that stakeholders have with an organisation. One particular aspect of economic reform, privatisation, has become an important driver of economic growth in many economies, particularly when linked with the rapid growth of air travel. Privatisation of an airport can generate a radical change in the overall business model for the airport owner and the various stakeholders involved in the operation of the airport. Sydney Airport has restructured its overarching business model to meet the demands of stakeholders. Using feedback from key stakeholders, this research examines the generally accepted view that airport privatisation leads to an improvement in airport performance. Chesbrough's Business Model Framework provides a lens to assist the analysis of Sydney Airport operations before and after privatisation, and provides valuable insights into the impact of privatisation on business model innovation. © Cambridge University Press and Australian and New Zealand Academy of Management 2014.

Towards an integrative attachment-based model of relationship functioning

Based on attachment theory, this study developed a theory-based model of heterosexual relationship functioning that examined both proximal and distal factors and both actor and partner effects. A particular focus was on the underexplored issue of double-mediated effects between attachment orientation and relationship satisfaction. Data were collected from a community sample of 95 cohabiting and married couples with a mean age of 39.30 years. Participants completed measures of attachment, commitment, provision of partner support, trust, intimacy, destructive conflict management, and relationship satisfaction. The hypothesized model was largely supported. The association between attachment orientation and relationship satisfaction was mediated through a series of actor and partner variables. No gender differences were found across actor paths; however, differences were found in partner effects for men and women. The model has important implications for relationship researchers and practitioners. © 2013 The British Psychological Society.

A multilevel trust management framework for service oriented environment

In service-oriented computing applications, trust management systems are emerging as a promising technology to improve the e-commerce consumers and provider's relationship. Both consumers and providers need to evaluate the trust levels of potential partners before engaging in interactions. The accuracy of trust evaluation greatly affects the success rate of the interaction. This paper addresses the threats and challenges that can compromise the reliability of the current trust management system. This paper studies and examines the importance of the trust factors of the trust management framework, specifically in dealing with malicious feedback ratings from e-commerce users. To improve the reliability of the trust management systems, an approach that addresses feedback-related vulnerabilities is paramount. A multilevel trust management system computes trust by combining different types of information. Using this combination, we introduce a multilevel framework for a new interactive trust management to improve the correctness in estimate of trust information.

Protocol for a randomised controlled trial of a web-based healthy relationship tool and safety decision aid for women experiencing domestic violence (I-DECIDE)

BACKGROUND: Domestic violence is a serious problem affecting the health and wellbeing of women globally. Interventions in health care settings have primarily focused on screening and referral, however, women often may not disclose abuse to health practitioners. The internet offers a confidential space in which women can assess the health of their relationships and make a plan for safety and wellbeing for themselves and their children. This randomised controlled trial is testing the effectiveness of a web-based healthy relationship tool and safety decision aid (I-DECIDE). Based broadly on the IRIS trial in the United States, it has been adapted for the Australian context where it is conducted entirely online and uses the Psychosocial Readiness Model as the basis for the intervention. METHODS/DESIGN: In this two arm, pragmatic randomised controlled trial, women who have experienced abuse or fear of a partner in the previous 6 months will be computer randomised to receive either the I-DECIDE website or a comparator website (basic relationship and safety advice). The intervention includes self-directed reflection exercises on their relationship, danger level, priority setting, and results in an individualised, tailored action plan. Primary self-reported outcomes are: self-efficacy (General Self-Efficacy Scale) immediately after completion, 6 and 12 months post-baseline; and depressive symptoms (Centre for Epidemiologic Studies Depression Scale, Revised, 6 and 12 months post-baseline). Secondary outcomes include mean number of helpful actions for safety and wellbeing, mean level of fear of partner and cost-effectiveness. DISCUSSION: This fully-automated trial will evaluate a web-based self-information, self-reflection and self-management tool for domestic violence. We hypothesise that the improvement in self-efficacy and mental health will be mediated by increased perceived support and awareness encouraging positive change. If shown to be effective, I-DECIDE could be easily incorporated into the community sector and health care settings, providing an alternative to formal services for women not ready or able to acknowledge abuse and access specialised services. TRIAL REGISTRATION: Trial registered on 15(th) December 2014 with the Australian New Zealand Clinical Trials Registry ACTRN12614001306606.

Disproportional ownership structure and pay–performance relationship: evidence from China’s listed firms

This paper examines the impact of ownership structure on executive compensation in China's listed firms. We find that the cash flow rights of ultimate controlling shareholders have a positive effect on the pay–performance relationship, while a divergence between control rights and cash flow rights has a significantly negative effect on the pay–performance relationship. We divide our sample based on ultimate controlling shareholders' type into state owned enterprises (SOE), state assets management bureaus (SAMB), and privately controlled firms. We find that in SOE controlled firms cash flow rights have a significant impact on accounting based pay–performance relationship. In privately controlled firms, cash flow rights affect the market based pay–performance relationship. In SAMB controlled firms, CEO pay bears no relationship with either accounting or market based performance. The evidence suggests that CEO pay is inefficient in firms where the state is the controlling shareholder because it is insensitive to market based performance but consistent with the efforts of controlling shareholders to maximize their private benefit.

Diet and bipolar disorder: a review of its relationship and potential therapeutic mechanisms of action

OBJECTIVES: It is well accepted that diet quality has an important role in the prevention and treatment of several physical diseases. However, its influence on mental health has received far less attention, although there is increasing evidence to support a relationship with depression. In this narrative review, investigations into the relationship between diet and bipolar disorder are examined and the potential implications in the management and treatment of bipolar disorder are reviewed. METHODS: The authors provide a narrative review of the relevant information. RESULTS: Research is limited, although there are preliminary findings to suggest a relationship between diet and bipolar disorder. Findings from cross-sectional research suggest that people with bipolar disorder consume an unhealthier dietary pattern. This has significant treatment implications as bipolar disorder has a high comorbidity with several physical diseases. In addition, diet also influences several biological processes that are dysregulated in bipolar disorder, namely monoaminergic activity, immune/inflammatory processes, oxidative stress, mitochondrial activity, and neuroprogression. CONCLUSIONS: The role of diet in bipolar disorder requires further attention in research as it presents as a factor that may contribute to the worsening course of this condition and may potentially enhance current treatment outcomes.