Criticisms of auditors and earnings management during the Asian economic crisis

Auditors were criticised during and after the Asian economic crisis for supplying variable quality across global audit markets. This study examines
the level of earnings management as measured by discretionary accruals in the pre-crisis compared to the post-crisis periods as they impacted Malaysia. Both the Jones (1991) and earnings per share frequency distribution methods are used to examine earnings management behaviour. As hypothesised, the pre-crisis period is associated with significantly higher levels of absolute discretionary accruals and increased propensity to meet or beat the prior year earnings per share, whereas the post-crisis period is not. This finding is consistent with auditors responding to the criticisms that were made. However, the propensity to avoid losses is found to be higher in the post-crisis period, indicating that earnings management is not fully constrained.

Dynamic interdependence and volatility transmission of Asian stock markets: evidence from the Asian crisis

This paper examines dynamic interdependence, volatility transmission, and market integration across selected stock markets during the Asian financial crisis periods 1997 and 1998. Using a vector autoregressive–exponential generalized autoregressive conditional heteroskedasticity (VAR-EGARCH) model, it is found that reciprocal volatility transmission existed between Hong Kong and Korea, and unidirectional volatility transmission from Korea to Thailand. This suggests that Hong Kong played a significant role in volatility transmission to the other Asian markets. The data also indicate market integration in that each market reacted to both local news and news originating in the other markets, particularly adverse news.

Rugby league: a game in crisis

This study examines the issue of crisis and reputation management strategies in Australian sporting clubs and finds that not only are individual clubs unaware of the potential impact of such crises on their organizations, but that they also have no training, contingency plans, or strategies to handle crises of any sort either at this or at the national league level. It uses the Australian Rugby League organization as a case study f()r examining these issues and concludes with several recommendations for improving crisis management and communications policies in Australian sporting organizations and for their stakeholders.

Many public and private organizations prefer to ignore the reality that "bad things" can happen, either through denial of their vulnerabilities or through myopia about their successes and strengths (Elliott, 2002). A crisis can be defined as any problem or disruption that triggers negative stakeholder reaction and extensive public scrutiny (Newman, 2003). Effective crisis management lies in continuous learning processes designed to equip managers with the capabilities, flexibility, and confidence to deal with sudden and unexpected problems or events (Robert & Lajtha, 2002). Good crisis leaders are those who can make fast decisions under pressure and who can keep the big picture consequences of actions and words in mind when making these decisions 030in & Lagadec, 20(0). In 2004, the Rugby league in Australia was both ill-prepared and ill-advised to effectively deal with a sex scandal involving a number of their players on an official club tour. In classic crisis escalation, what should have been a serious but easily dealt with problem became a major reputational and institutional crisis for the league, its sponsors, its players, and its fans.

Beyond crisis: re-imagining science education

Science education is in crisis, which is evidenced by the increasing negative attitudes to Science by secondary school students and decreasing participation in post compulsory Science subjects. There is a need for re-imagining science by adopting contextual learning.