Financial accounting and library collections : the bottom line

The valuation and depreciation of library collections is an increasing challenge in the context of financial accounting requirements. The depreciation implications of major collection management strategies have become of increasing concern to Deakin University library in regard to accrual accounting reporting procedures. Changes to library collections, such as the transition to online journals, are moving the financial value of library collections from capital to operating budgets. Major collection management projects such as weeding print assets can have unexpected implications for depreciation and library budgets. Gratis publication acquisitions can also significantly affect valuation and depreciation. Many other libraries are facing similar challenges and this paper will incorporate a range of experiences and practices.

There appears to be little consistency across libraries in how collections are valued and accounting procedures can differ greatly across institutions. The seemingly arbitrary and often questionable nature of financial policies in relation to library collections can create problems for libraries when used to inform decision making and budgets. Libraries increasingly need to work in partnership with financial managers to ensure the financial reporting requirements do not result in adverse implications for collections and budgets and that the capacity of the library to meet its strategic objectives is not impeded. This paper explores the issues and challenges facing many libraries and outlines some strategies to assist library managers in dealing with this financial conundrum

Highlights from the tennis Australia heritage collections : mini-exhibition in the player cafe, Rod Laver Arena

Summary : This 'mini-exhibition' arose as an opportunity to showcase recent acquisitions as well as established holdings of significant items of tennis related heritage within the Tennis Australia Heritage Collections. In general, the Collections have two main strengths, and the mini-exhibition was designed to communicate these. The first strength is the ability to show the evolution of tennis technology and practices over time, from the beginnings of modern tennis in the 1860s, to today. This evolution is a result of tennis being influenced by changes in the wider world, such as the Industrial Revolution. The second strength of the Collections is in showing the impact and influence of tennis on society. Many items in the Collections are evidence of the immense and enduring popularity of the sport across the world. The Collections contain many beautiful, rare and fascinating items of decorative arts, fashion, literature and social history which feature tennis as a motif. These items show the reverse influence - the deep impression tennis has made outside of the sport itself.  This mini-exhibition focuses on these two themes. Some displays focus on the first theme. They demonstrate the evolution of tennis racquets, tennis balls, instructional publications and other tennis related equipment over the past century and a half. Other displays focus on the second theme. There are cases which examine tennis' influence upon global popular culture, in board games, fashion and decorative arts from around the world.  The mini-exhibition includes items from the U.s, U.K., Germany, France, Austria, Japan and Australia, demonstrating the global phenomenon that tennis quickly became, and showcasing the international scope of the Collections.  Each case contains text panels listing the objects and their specifications, and panels providing contextual information about the display. The miniexhibition is expected to be on display until November 2009. A case-bycase breakdown of objects, with images and a layout map follows.

The privatisation experience in the Australian banking and insurance sectors: an explanation of the change in ownership structures

Deregulation has been a feature of the evolution of financial markets in the past two decades. Extending this trend has been the move to privatise government-owned financial institutions. In the 1990s, Australian governments progressively sold publicly owned banks and insurance institutions. One outcome has been that few of these privatised financial firms exist today, having been absorbed in mergers and acquisitions within the financial services sector. This paper uses an information cost framework to explain the experience of privatised banks and insurers. Our approach points to a dynamic process of organisational change that has influenced the outcomes of privatisation in the financial services sector.

Building commitment through integrating employees

Corporate collapses of past decade have affected all stakeholders through a loss of public confidence, loss of jobs and loss of shareholders' funds. We have seen poor business decisions, extravagant business acquisitions, lack of attention to detail, exorbitant directors fees, lack of board scrutiny and inadequate disclosure internationally and in Australia in cases such as Enron, WorldCom, HIH, the Australian Wheat Board, and numerous state banks. This paper analyzes annual reports, web sites and CSR/ Sustainability and Governance reports of twenty selected companies to highlight the position of human resources and labour in their governance frameworks, and by linking the data to Stum's (2001) performance pyramid, evaluates the extent of organizational commitment. It concludes that despite all the rhetoric around employees being stakeholders, employees continue to be viewed as 'outsiders' with governance primarily focused on shareholder concerns. Employees are primarily seen as constituents of legal and regulatory frameworks and employee codes of conduct and lack a position in strategy and effective decisionmaking structures, thereby conveying to employees that they are perceived only as workers, and not as a person (Stum, 2001). Naturally, the organizations fail to win the commitment of their employees.

Firms as adaptive organizations : the case of Australian trading banks

The conventional accounting notion of ‘going concern’ — that a firm will continue its business operations in the same manner indefinitely — has underpinned accounting practice for over one hundred years. This idea has provided a rationale for spreading costs over accounting periods and for deferring costs as assets in balance sheets. An alternative idea that is widely regarded as reliable in the literatures of economics and deliberate action is that firms continually adapt to changes in market and economic conditions. That is economic behaviour. The implications of that view of a firm for accounting have been systematically explored by Chambers (1966). While not examining those particular implications, many other accounting theorists have been critical of the conventional accounting idea of 'going concern' and of its impact on accounting practice. The two notions of ‘going concern’ - as static or adaptive enterprises - are examined by referring to the business operations of the four major Australian trading banks over the period 1983-1991. Banks were selected because they are commonly thought to be particularly ‘conservative’ organizations. The period 1983—1991 was chosen because it covers the era of deregulation of the Australian financial system. The evidence adduced by this study indicates that the Australian trading banks have continually adapted their organizational structures and business operations in the light of changes in technology, markets for financial services, government policies and domestic and global economic conditions. Illustrations of adaptive behaviour by banks ate drawn from their normal operating procedures such as the provision of products and services, loan services, acquisitions, sale of property, non-core banking operations and international banking. It is argued on analytical grounds that the cost basis of accounting does not yield financial statements that provide factual and up-to-date information about the financial capacity of firms to pay their debts and to continue trading generally; that is, to be going concerns. At any time, those financial capacities are determined by the amount of money commanded by a firm, including the money's worth of its assets, and by its level of debt. It is concluded on empirical grounds that the Australian trading banks, at least, are adaptive entities.

The purchasing of naming rights for sports stadiums : a harbinger of bad corporate governance or just bad timing?

The literature on corporate governance and the market’s delayed reaction to news events proliferated over the last two decades. This paper examines return patterns surrounding the event date for firms purchasing naming rights for North American sports stadiums. One argument appearing in the financial press is that such acquisitions are a harbinger of widespread corporate mismanagement and hubris at the highest levels of corporate governance. Purchases of stadium naming rights provide sidebenefits to executives such as “being in the limelight” and the use of supplementary corporate boxes. Thus, management has a strong incentive to undertake such investments even if their decision is not value enhancing to shareholders. The extent to which these agreements are associated with negative risk-adjusted returns is an empirical question, which this study addresses. On average, negative riskadjusted returns are observed over the three years following the event date, and these results are significant at standard levels of significance. The efficient market hypothesis suggests that these results are not due to a cause and effect relationship but represent data snooping or just bad timing.

Online ordering : report of a trial by the Queensland Institutue of Technology Library

The article reports the methods and results of a trial by The QIT Library of the IDAPS Acquisitions System, specifically for items ordered from James Bennett Pty. Ltd. Hardware problems at Bennetts precluded test of comparative speed of delivery of electronically placed orders but the library reports a clear reduction in order preparation time and an excellent hit rate for bibliographic data on the LYNX and ABN databases viewed as a composite resource.

Consolidation within the Australian real estate investment trust sector : an evaluation of the impact on unitholder returns

Mergers and acquisitions within the Australian-real estate investment trusts (A-REITs) sector have become a noticeable trend in the last decade. Utilising
event study methodology, 36 successful A-REIT mergers and acquisitions
between January 1995 and December 2008 were examined. Both target and
bidding shareholders experience positive excess returns of 4.27% and 0.54%
respectively over the 41 day event window [−20, +20]. Analysis indicates that the
cumulative abnormal returns (CARs) for bidding firms are considerably greater
than previous research suggests. This study finds higher bidder CARs when scrip
or a combination of scrip and cash is used to finance the acquisition. We also find
that the relative size or the size of the acquirer have a positive and significant
impact on the excess returns of bidding A-REITs. This suggests that the
synergistic benefits from the acquisition are a result of economies of scale and
increased market power. There is also some evidence that the relative size and
method of payment influence the CARs of target firms during the event window.

The diversification discount and takeovers : some Australian evidence

Purpose – The purpose of this paper is to examine the existence of a diversification discount in the Australian takeover market. A sample of 446 Australian publicly-listed firms involved in the market for corporate control was observed between 2000 and 2007. The authors examined two pre-announcement and four post-announcement periods, predominantly around the immediate event date, but also examined activity out to one year following the announcement.
Design/methodology/approach – An event study, in this case, is used to examine abnormal returns around the announcement of a merger or acquisition. The timeframe this study intends to focus on is the period from announcement date to a time one year down the track which, although some studies may deem it “long-term”, is still a relatively short-term measure of performance.While many variables in acquisitions have been looked at in depth over the years, such as outcome, nature, payment method and size of deal, one area which has had considerably less attention is the area of specialisation and diversification. That is, do focus increasing (or non-diversification) deals have different return patterns relative to focus decreasing (or diversification) deals?
Findings – The overall findings of this paper are fairly mixed, barring a few exceptions, and there does not appear to be a great deal of variation in return patterns based purely on whether the announced acquisition is non-diversifying or diversifying in nature.
Originality/value – The paper is of particular value in Australia. Most of the research of diversification to date has taken place in the USA. Australia is similar to the USA in that it has a well-developed economy based on common law principles and an active equity market, however, the existence of institutional and regulatory differences suggests that US results may not hold in Australia.

Strategic planning to build transformational preparedness : an application of enterprise architecture practice

Enterprises are continuously evolving systems; this evolution can be directed or emergent. Enterprise transformation has special aspects due to the enterprise being a socio-technical system whereupon evolution happens on the levels of individuals / humans / organisation, on the level of the technology and on the level of the Information Systems that integrates the activities performed by humans and by technology. Furthermore, changes are typically continuous, due partly to external factors and partly to strategic foresights. Either way, transformation needs to happen so that the enterprise can keep satisfying its objectives. An important transformation mechanism is to perform mergers or acquisitions (M&As). Interestingly, literature reveals that an unacceptably high percentage of M&As do not achieve the aimed objectives and (as we demonstrate) the success of such trajectory depends on several factors. This article proposes a methodology to overcome potential problems by making necessary anticipatory transformations opening up a possibility to perform M&As with a better chance of success.

The politics of the pharmaceutical industry and access to medicines : world pharmacy and India

The Pharmaceutical Industry presents one of India’s most successful stories of economic expansion and improvements in public health. Indian firms have made access to quality medicines possible and affordable in many developing countries. Indian pharmaceuticals are also exported on a large scale to the United States and other highly regulated markets. A wave of mergers, acquisitions and tie-ups point to growing integration between Indian firms and global pharma multinationals.

The Politics of the Pharmaceutical Industry and Access to Medicines: World Pharmacy and India examines this important industry from different economic, social and political perspectives. Topics covered include the implications of TRIPS-compliant intellectual property rights, the role of flexibilities under TRIPS, the market regulation system, the role of Indian firms in exporting HIV/AIDS medications to Africa, the issue of free trade agreements, the power and reach of foreign pharmaceutical multinationals in India’s domestic market, and the sustainability of India as a major generics supplier.

A-REIT bidder returns : an evaluation of public and private targets and method of payment

This study examines the wealth effects of fifty-six Australian Real Estate Investment Trusts (A-REITS) acquirers around the announcement date of a merger and acquisition over the period of 1996 to 2010. This study extends Ratcliffe et al (2009) by examining mergers and acquisitions of private entity targets as well as public targets and confirms recent US REIT work in this field. Utilising event study methodology we find that bidding A-REITs earn positive and significant cumulative abnormal returns (CARs) of +0.966% around the three-day announcement period [-1, +1]. Analysis also indicates bidding firms earn higher CARs when the acquisition is financed by scrip and/or a combination of scrip and cash. Consistent with prior REIT research, event study results show that A-REIT acquirers earn higher excess returns when the target is private as compared to a public target, +2.834% and +0.457% respectively. Further investigation, employing regression analysis, shows book-to-market ratio has a negative impact on bidding firms CARs, suggesting that investors penalise high book-to-market A-REITs in an M&A due to their higher risk characteristics. We also find that both specialisation by property type and relative size of the bidder compared to the target has a positive and significant influence on bidder excess returns. Finally, our results show support for the method of payment findings in the event study, with method of payment returning a negative and significant impact on the bidder CARs.

X-ray velocimetry within the ex vivo carotid artery

X-ray velocimetry offers a non-invasive method by which blood flow, blood velocity and wall shear stress can be measured in arteries prone to atherosclerosis. Analytical tools for measuring haemodynamics in artificial arteries have previously been developed and here the first quantification of haemodynamics using X-ray velocimetry in a living mammalian artery under physiologically relevant conditions is demonstrated. Whole blood seeded with a clinically used ultrasound contrast agent was pumped with a steady flow through live carotid arterial tissue from a rat, which was kept alive in a physiological salt solution. Pharmacological agents were then used to produce vascular relaxation. Velocity measurements were acquired with a spatial resolution of 14 µm × 14 µm and at a rate of 5000 acquisitions per second. Subtle velocity changes that occur are readily measurable, demonstrating the ability of X-ray velocimetry to sensitively and accurately measure haemodynamics ex vivo. Future applications and possible limitations of the technique are discussed, which allows for detailed living tissue investigations to be carried out for various disease models, including atherosclerosis and diabetic vasculopathy.