The nature of corporate social responsibility disclosures by the Bangladeshi commercial banks

The Bangladesh Bank is now encouraging corporate social responsibility (CSR) disclosure by banks however the adoption of CSR remains voluntary and not mandatory. The aim in this paper is to determine the nature and extent of corporate social responsibility disclosure in the banking sector in Bangladesh, and to assess the need to improve corporate social responsibility by such organisations. We observe, from our content analysis of the annual reports of three cases studies within the banking industry of Bangladesh, that corporate social responsibility disclosures focus on initiatives undertaken to support two critical two sectors within Bangladesh's economy. agriculture and the SME sector. Further disclosures address contributions and donations made by the banks to support underprivileged sections of Bangladesh society including destitute youth and women. Of the three cases examined in this study, two are relatively new entrants to the banking sector. We observed that the newest firm, incorporated in 1999, made no disclosures in regards to its corporate social responsibility and, as a consequence, conclude that the corporate governance mechanisms in this firm are likely to be unsophisticated.

Understanding the concept of elasticity in supply chain relationships : an agency theory perspective

The issue of flexibility in supply chains has been receiving heightened attention by scholars and practitioners especially as business environment becoming more turbulent and uncertain. Notwithstanding, one of the important aspects of flexibility – relationship flexibility – which has the potential to proliferate responsiveness and postpone bifurcation in buyer -supplier relationships has not been well understood and researched. Identifying this gap within the literature, this paper proposes a concept of elasticity as an important element of relationship flexibility in supply chains. It is argued that the tolerance threshold of coopering parties in presence of their sudden behaviour change will determine their state of relationship elasticity (i.e. elastic or inelastic). The theoretical development of this paper has been primarily based on review of the literature and insights from agency perspective. It is proposed that relationship governance mechanisms advocated by agency theory has the potential to influence elasticity status of principal agent relationships.

Value relevance of accounting information in China pre- and post-2001 accounting reforms

Purpose – This paper aims to investigate whether the accounting reform in China has improved the relevance of China's accounting information. It seeks to investigate the association between earnings and book value of equity to share returns before and after the introduction of the Accounting System for Business Enterprises (ASBE) in 2001 for A- and A&B-share firms.

Design/methodology/approach – The paper employs the return regression model. The pre-ASBE period is designated as 1997 through to 2000, and the post-ASBE period is designated as 2002 through to 2004. All firms listed on the Chinese stock market during the investigation period constitute the sample.

Findings – It is found that accounting information better explains share returns for both A-share firms and A&B-share firms in the post-ASBE period. The paper also finds that the book value of equity for A&B-share firms is incrementally value relevant to that of A-share firms in the post-ASBE period.

Research limitations/implications – Further studies will contribute to understanding how governance mechanisms and liquidity influence the association between accounting information and share returns in the Chinese A-share market.

Practical implications – The findings provide empirical evidence regarding the relevance of accounting information in emerging markets.

Originality/value – The paper contributes to the extant value relevance literature by investigating time periods surrounding the issue of ASBE in 2001 in the Chinese stock market.

Board committee meetings and firm financial performance : an investigation of Australian companies

This article examines how the frequency of board committee meetings impacts on Australian firms’ financial performance. Data were collected from 118 Australian listed companies – including 26 financial firms and 92 nonfinancial firms – for the period 1999–2007. Analysis of that data shows that the frequencies of audit committee meetings and remuneration committee meetings are positively and significantly associated with return on equity and return on assets. The frequencies of risk committee meetings do not show any significant effects on the financial performance of Australian firms. Estimated results are found to be robust after controlling for internal as well as external governance mechanisms that might affect Australian firm performance.

Capital structure of Chinese listed SMEs: an agency theory perspective

Prior work examining the antecedents of capital structure for small and medium-sized enterprises in emerging markets is limited. This paper sheds light on how the corporate governance mechanisms adopted by firms on the newly established Growth Enterprise Market (GEM) in China influence their use of debt. We find that the financial leverage of GEM firms is positively influenced by executives’ shareholding and their excess cash compensation. Ownership concentration appears to reduce leverage, whereas the percentage of tradable shares increases leverage. In contrast, institutional investors’ shareholding does not influence the level of debt. Traditional factors such as tax and operating cash flow are insignificant in explaining the debt levels among GEM firms.

Short-term debt maturity structures, credit ratings, and the pricing of audit services

ABSTRACT: Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data for 2003 through 2006, we find that short-term debt is negatively related to audit fees for firms rated by Standard & Poor’s, consistent with more monitoring and better governance mechanisms in firms with higher short-term debt. Credit ratings quality is negatively related to audit fees, consistent with ratings quality reflecting a firm’s liquidity risk, governance mechanisms, and monitoring from rating agencies. We also find that the negative relation between short-term debt and audit fees is stronger for firms with low-quality credit ratings, consistent with auditors pricing lender monitoring.

A Transaction cost analysis of cross-border insolvency.

The thesis identified transaction cost efficiencies in the application of appropriate governance mechanisms in cross-border insolvency law.

On the governance of public education

Private schools in Australia receive significant public funding, but their determination to concentrate social and cultural capital and consolidate positional advantage ‘denies the possibility of their serving the public interest’. A 1998 study of Victorian private schools has confirmed that they produce above-average academic results and are also concentrated in high socioeconomic geographic areas. The few private schools outside this pattern serve mainly provincial areas or ethnic minority groups. High academic credentials depend at least in part on their scarcity, and ‘the selective function of schools, directed towards establishing a hierarchy of performance, overwhelms the pedagogical function of universal learning and social justice,’ especially at transition points in the education system. The governance procedures of schools typically encourage high academic standards ‘through mechanisms of exclusion’. Private schools in particular, at the secondary level, tend to ‘export failure’ through ‘predatory recruitment and selective dumping practices’, and by arrangements with universities for early placement of high performers into preferred tertiary courses. The broader education system reinforces the competitive processes within schools though competitive examinations. A range of steps can address these equity problems. Curriculum should be made more sensitive to disadvantaged social groups. Secondary schools should be aligned more closely to the social, cultural and economic development of their communities through mechanisms such as VET in schools, linkages with TAFE colleges, and a broadened curriculum that addresses community problems.

A principles-based Anglo governance system is not a science but an art

Anglo governance systems rely of a number of controls to align shareholder and boards of director’s interests. In general they are referred to as market control, regulatory control, and political and cultural control. Agency theory proposes that these control mechanisms are necessary as human nature is such that directors and managers act in a self-interested and boundedly rational manner in decision-making that can result in sub optimality. Notwithstanding that each country within the Anglo system accepts such controls are necessary they have their own foci and priorities, being a product of their own system’s characteristics. This paper through interviewing a number of Australian business executives adds to the academic literature by providing evidence from the field of the important characteristics of the Australian governance system, the drivers of change and the effectiveness of the principles-based approach. It argues that debate needs to move beyond the principles versus rules approach to look at how firms can be provided with more guidance in operationalising some of the principles that appear to be key to governance effectiveness. It concludes that there is a need for a holistic model of governance that is broader than that focusing on the control/legalistic approach; that top management is important in setting and driving the in-firm governance agenda; that the public needs to be informed and educated about governance and its importance; and that disclosure still requires an improvement in quality.

Iraq and the Arab revolutions : protesting the failure to democratise governance

As the Arab Revolutions swept across the Middle East and North Africa in late 2010 and into 2011, Iraqis were confronted with the failures of their own democracy to deliver on the many promises made to them since 2003. This led to weeks of scattered protests across Iraq, culminating in the “Day of Rage” (February 25, 2011) in which thousands of protestors took to the streets in at least 17 separate demonstrations across the country following Friday prayers. On the surface, these protests shared much in common with others across the region: the use of Facebook and other social media to promote the protests, and the focus on corruption, unemployment and poor public infrastructure. Also similar was the reaction of key Iraqi political figures such as Maliki and Barzani who met Iraqi protests with a mixture of brutal suppression and modest political and economic concessions. However, as this paper will demonstrate, upon closer inspection the Iraqi protests are in fact very different to others across the MENA and are therefore among the most significant for the future of democracy in the region. The Iraqi people were not protesting against an autocratic regime or an entrenched monarchy that had held power for decades, but a relatively new – and supposedly ‘democratic’ - political elite who had been brought to power in the wake of the US invasion. Indeed, while protestors across the region called for more democracy in the form of a written constitution, free and fair elections, a robust media sphere and the rule of law, Iraqis were protesting against the failures of the Iraqi government to democratise such mechanisms of governance (all of which they more or less have). They felt routinely disenfranchised by a state that has manipulated the very institutions and discourses of democracy to retain, rather than diffuse, power.

Towards a better understanding of how effective IT governance leads to business value : a literature review and future research directions

This paper reviews the existing literature on IT governance to assess whether IT governance has contributed to delivering business value from IT and if so, how. The conducted literature review has shown the scarce number of studies that focus on why and how effective IT governance may lead to business value. By using a structured literature review analysis, the paper has offered a number of insights to the topic of IT governance: a) provided a systematic definition of effective IT governance based on a multi-dimensional framework, b) listed benefits of effective IT governance, and c) identified mechanisms that lead effective IT governance to those benefits. This paper takes a step towards addressing the ‘why’ and ‘how’ knowledge gaps by synthesising the fragmented knowledge to provide the best that is known about the subject and to identify future research directions.

Is e-governance a function of government or media? Some directions for future research and development of electronically mediated citizen participation

Citizen participation, enabled by electronic means, grows, in parallel with government's apparent failure to promote it. Organisations such as Getup and Moveon flourish; the BBC announced in 2003 that 'Internet-based political activism is happening...The BBC wants to help a wider audience find their voice by tackling obstacles to greater participation' (http://www.opendemocracy.net). (Kevill, 2003). Such actions echo, perhaps, the enthusiastic adoption of the Internet by activist media groups, particularly Indymedia. This paper presents a response to this situation. It provides a richer account of the contradictory rise of e-government without e-governance, and examines the potential for media-based participatory engagement to complement e-government. It presents two models of the future of electronically mediated citizen engagement: the first involving agonistic relations between government and citizenry, with civic participation occurring outside of government-approved forums; the second involving the intimate linking of governmental transactions to participation by those citizens engaged in them. Finally it will outline mechanisms for researching the capacity of either or both models to sustain effective participation.

The politics of coastal policy, planning and governance in Canada and Australia : business as usual, at a distance, or collaborative?

Canada and Australia are countries with substantial coastal zones which provide significant economic, social and environmental benefits and opportunities. The coastal zones of Canada and Australia also share significant threats such as, pollution, loss of biodiversity, and climate change, while also facing different challenges that are unique to their particular contexts. Effective management of such zones therefore represents a considerable challenge because of the: complexity of biophysical processes; multiple threats faced; uncertainties associated with understandings of such processes and threats, and the multiple jurisdictions and stakeholder viewpoints as to how such environments should be managed. Further, coasts and the sustainability of coastal resources and ecosystems have been argued to represent ‘wicked problems’ such that their governability is called into question. Therefore drawing on recent experiences in coastal policy, planning and governance in Newfoundland, Canada, and Victoria, Australia, this paper assesses the adequacy of current approaches to coastal governance in the two jurisdictions. In doing so we draw on recent policy and governance literature to consider whether coastal policy, planning and governance in Newfoundland and Victoria, reflect a collaborative, neoliberal, or business as usual (ad hoc, top down) approach. Based on such an assessment we consider the prospects for more integrated coastal zone management in each jurisdiction, as well as broader implications for governance and the resilience of coastal systems. It is argued that while both jurisdictions would benefit from a more collaborative approach, the mechanisms for bringing about such an approach would vary and will not come easily in light of institutional and historic barriers.

Surveillance, Governance and Professional Sport

The surveillance capacities of professional sports clubs and Leagues are directly related to their modes of governance. This paper identifies how private sports clubs enact surveillance through processes of inclusion and exclusion. Using three examples to demonstrate these processes, we argue that the surveillance mechanisms associated with sports governance at times replicate, at other times contradict, and at other times influence those associated with broader law enforcement and security developments. These examples also suggest potential increases in surveillance activities that emerge in club governance often flow from external concerns regarding allegations of crime, national security breaches and corruption. These context-specific case studies (Flyvbjerg 2001) demonstrate how surveillance and identity authentication are closely tied to the complex, multi-tiered governance structures and practices in three distinct sports. We then explore how these patterns can be interpreted as either connected to or distinct from equivalent developments involving the surveillance surge (Murakami Wood 2009) and concepts of inclusion and exclusion under the criminal law. We conclude by discussing how both internal and external regulatory forces can shape interrelated facets of surveillance, governance and exclusion in elite sports.