Corporate governance structure and firm performance : empirical evidence from Brusa Malaysia, Kuala Lumper

The issue of corporate governance has been emerging as important phenomena that has been searched extensively both in developed countries due to its strategic impact on the monitoring of management activities and firms’ performance. Yet little attempt has been made in developing countries like Malaysia to ascertain what constitute corporate governance and its impact on firm's performance. Therefore, this study aims at examining the structure of the corporate governance and its impact on firm’s performance. This study is based on 100 firms, which are the component of the Composite Index (CI) serve as market barometer. This study employs cross-sectional annual multiple regression model to examine, what constitutes the corporate governance structure and its impact on performance of the firm. The analysis was based on annual regression over 5 years period from 1997 through 2001. Three different blend of surrogate for corporate governance were developed for good corporate governance structure. These are the independent non-executive (outside) directors, audit committee and remuneration committee. To isolate the size effect from the impact of corporate governance structure on firm’s performance, firm’s size was also included are variable in the model. The ratio of net income before tax to total asset is used as a surrogate for firm’s performance. Evidence from the study indicates that there is partial relation between corporate governance structure and corporate performance. The presence of both audit and remuneration committee serves as an important monitoring device to control management activities that lead to increase firm's performance. While on average, the presence of independent nonexecutive directors does not provide any significant explanation for the firm's performance. However, the firm size appears to have significant impact on corporate performance.

Invisible labour : home–school relations and the front office

When school front offices are mentioned in research on schools and their relations with the community, it is often to describe how parents/carers and the public are treated officiously and/or inappropriately. In professional development materials, schools are urged to improve communication, and occasionally directed to consider the practices of the front office staff. Yet when schools send out information to parents/carers, the school office is usually the place to which all queries are directed. However, there is almost no detailed research that looks at what actually happens in this place. In this paper we draw on a small-scale commissioned research project which began to fill this gap. In seeking to reread our data and push further on analysis, we have come to realize that those who work in school front offices are women whose physical and emotional labour is not only rendered largely invisible in a wide range of literatures relating to home-school relations but is also inadequately recognized through recruitment practices, professional development and remuneration. We suggest that there needs to be further research into the high energy, multitasking, nurturing work that goes on in school front offices.

The determination of CEO pay

This investigation demonstrates that board determination of CEO pay goes beyond financial performance to consider what is considered legitimate remuneration in the context of an informationally efficient CEO pay packet. These decisions are tested in a multi-layered institutionalised environment maintained by the core agency concept of shareholder primacy.

Executive compensation and corporate governance with special reference to Bangladesh; some emerging issues

This discussion paper considers corporate governance issues associated with executive compensation arrangements. An historical perspective is used to demonstrate the absence of a sound empirically-based understanding of good corporate governance practices in relation to share-based payment arrangements. The paper provides an overview of issues including the potential earnings dilution and volatility effects of the introduction of regulations affecting executive remuneration. Potential future research questions have been framed addressing each of the major issues identified in this paper. We conclude that corporate regulators should ensure they are familiar with and consider best practice models for corporate governance when developing new, or revising existing business regulation. It is proposed that further research to remedy this deficiency would enable a more accurate assessment of the impact of management on accounting regulation and the better design and implementation of regulation.

Corporate commitment to sustainability – is it all hot air? A review of the linkage between executive pay and sustainable performance

Across time, companies are increasingly making public commitments to sustainable development and to reducing their impacts on climate change. Management remuneration plans (MRPs) are a key mechanism to motivate managers to achieve corporate goals. We review the MRPs negotiated with key management personnel in a sample of large Australian carbon-intensive companies. Our results show that, as in past decades, the companies in our sample have MRPs in place that continue to fixate on financial performance. We argue that this provides evidence of a disconnection between the sustainability-related rhetoric of the sample companies, and their ‘real’ organisational priorities.

Creating communities that lead to retention : the social worlds and communities of umpires

Umpires (referees) are essential for sport competition, yet many sports report difficulty in recruiting and retaining umpires. Therefore, this research sought to better understand what experiences will ensure continued participation in umpiring. Previous literature suggests that the communities created are vital to umpire retention. Thus, the aim of this research was to identify the factors that lead to, or detract from sense of community for umpires. Twenty-two Australian Rules football umpires were interviewed using a semi-structured approach. This study revealed that Lack of Administration Consideration, Inequity (specifically related to remuneration and resources), Competition, Common Interest (specifically in the sport, interactions within football community, and/or within social spaces) impacted the development of sense of community for umpires. This study demonstrates that as umpires move through their careers, the outcome of the noted factors to enhance or detract from sense of community change. Implications for umpire education, accreditation, and management aimed at retaining umpires are discussed.

Using information and communication technologies to consult with patients in Victorian primary care : the views of general practitioners

Information and communication technologies such as email, text messaging and video messaging are commonly used by the general population. However, international research has shown that they are not used routinely by GPs to communicate or consult with patients. Investigating Victorian GPs’ perceptions of doing so is timely given Australia’s new National Broadband Network, which may facilitate web-based modes of doctor-patient interaction. This study therefore aimed to explore Victorian GPs’ experiences of, and attitudes toward, using information and communication technologies to consult with patients. Qualitative telephone interviews were carried out with a maximum variation sample of 36 GPs from across Victoria. GPs reported a range of perspectives on using new consultation technologies within their practice. Common concerns included medico-legal and remuneration issues and perceived patient information technology literacy. Policy makers should incorporate GPs’ perspectives into primary care service delivery planning to promote the effective use of information and communication technologies in improving accessibility and quality of general practice care.

The value of executive director share ownership and discretionary accruals

Purpose – The purpose of this paper is to investigate the relation between the value of executive director share ownership and discretionary accruals.

Design/methodology/approach – This study uses a dataset of 1,173 firm-year observations drawn from 188 Australian listed companies for the period 2000-2006. The analysis is based on multivariate regression analysis and ordinary least square models were used to investigate the relation between the value of managerial ownership and discretionary accruals. The issue of potential endogeneity is addressed by using a simultaneous equation system.

Findings – A negative relation is found between value of managerial share ownership and discretionary accruals at lower levels of value of ownership, which is consistent with the theorised incentive alignment that as the managers commit more resources to their firms, stakeholders impose less contractual constraints specified in terms of accounting numbers and managers make lower accrual adjustments. After a certain level of value of ownership is attained, a positive relations seen, consistent with increased discretionary accrual adjustments associated with stakeholders anticipating managerial entrenchment. Also, it is found that these results are driven by firms with income increasing, as opposed to income decreasing, discretionary accruals.

Practical implications – Shares and options are forming an increasing proportion of executive remuneration that continues to be the subject of much debate amongst regulators and in the media. Showing that the value of share ownership may be an effective internal governance mechanism to help align incentives adds to the debate and has policy implications.

Originality/value – The paper's primary contribution is finding that the value (as opposed to proportion) of share ownership, typically representing a sizeable proportion of managers' undiversified wealth, is a potentially direct driver of theorised incentive alignment and entrenchment effects associated with share ownership.

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.

Principles of contemporary corporate governance

Now in its third edition, Principles of Contemporary Corporate Governance offers comprehensive coverage of the key topics and emerging themes in corporate governance in the private sector. It explains both the principles of corporate governance systems and their real-world application in an authoritative and engaging manner. This fully updated edition includes a new chapter on shareholder activism and covers developments in the areas of corporate governance in the European Union, reporting, credit rating agencies, executive remuneration and board diversity. It addresses the impact of the GFC on corporate governance and the theoretical and economic aspects of governance, and further includes comparative sections, written by specialist contributors, on corporate governance in China, Indonesia, Japan and South Africa. Principles of Contemporary Corporate Governance is an indispensable resource for academic researchers, practitioners wanting a deeper understanding of the underlying principles of corporate governance and students of business and law studying corporate governance.

An application of an extended effort-reward imbalance model to police absenteeism behaviour

Purpose – Frequent absences from work can be highly disruptive, whilst also potentially indicating problematic working conditions that can lead to increased withdrawal behaviour. The purpose of this paper is to test the predictive capability of an expanded effort-reward imbalance model on employee absenteeism within the context of policing.

Design/methodology/approach – Three separate reward systems are identified by the effort-reward imbalance model. In this study, the authors assessed these individual components for their contribution to officer withdrawal behaviour in the form of absenteeism frequency. Data were gathered from a sample of operational officers (n=553) within a large Australian police agency.

Findings – Findings indicate that there was a strong influence of social rewards such as social support and recognition in the workplace on officer absenteeism rates. Low workload was associated with a higher frequency of absenteeism suggesting a potential underloading effect. There were a number of significant interactions providing support for the effort-reward imbalance mechanism and the separation of the reward construct. Security rewards were particularly influential and significantly moderated the relationship between effort and absenteeism.

Research limitations/implications – Differential effects of occupational rewards were identified in the study, indicating that there are significant opportunities for expansion of the effort-reward imbalance model along with opportunities for HRM practitioners in terms of employee recognition and remuneration programmes. This research was focused on a specific sample of operational officers, therefore should be expanded to include multiple occupational groups.

Originality/value – This paper considers and expanded model of worker strain and contributes a longitudinal assessment of the association between perceived effort and reward systems and worker absenteeism.

Enhanced primary care : a rural perspective

BACKGROUND: The Enhanced Primary Care (EPC) program is designed to promote better management of and improved health outcomes for people with chronic illness. Specific Medicare item numbers provide government funding to encourage general practitioners to take up health assessments, care plans and case conferences. AIM: We investigated elements of the EPC program from a rural general practice perspective.

METHOD: Questionnaires summarising experience of EPC for patients and health care providers, undertaken over four weeks at three rural general practices, and observation.

RESULTS: The EPC program assisted the management and coordination of care for patients with multidisciplinary care needs. General practitioners were generally positive about the EPC program. The main barrier was the extra time required. The main concern of allied health workers was the lack of appropriate remuneration for their participation. Patients were positive in their responses, but many appeared to lack the motivation and self management skills to take full advantage of the program.

DISCUSSION: Strategies seeking to increase the uptake of EPC items need to address efficiency and accessibility, and funding for participating health professionals.

Practitioner perspectives on extended clinical placement programs in optometry

.Background: Some universities are looking to provide a more diverse range of clinical learning experiences through extended clinical placement programs. This approach will potentially have a significant impact on practitioners. The aim of this study was to conduct a national survey of optometrists to ascertain their perspectives on participating in extended clinical placement programs. Methods: Members of Optometry Australia were invited to participate in a survey conducted during June and July 2014. Results: A total of 268 practitioners participated (six per cent of registered Australian optometrists): 159 were predominantly employees or locums and 109 were owners or managers who identified as the key representative of a practice or organisation for the purpose of this survey. Almost two-thirds (65 per cent) of participants, who were employees or locums were supportive of extended clinical placement programs. Among this group, females were more likely to be supportive than males (p=0.033). In comparison, just over one-third (34 per cent) of participants who were key decision-makers were supportive, with 30 per cent possibly supportive and 36 per cent not supportive. Among key decision-makers, males were more likely to be supportive (p=0.009). The top three perceived advantages of supervising a student were: opportunity to mentor early career development, opportunity to give back to the profession and future recruitment. The top three perceived disadvantages were: burden on time, decrease in number of patients examined and burden on support staff. Suggested incentives for supervising students were credit for continuing professional development and financial remuneration. Conclusion: There appears to be moderate support for extended clinical placement programs; however, there are incentives that might engage a larger proportion of the profession in the future. These findings can inform the development of effective and sustainable clinical training programs for optometry students. Additionally, the findings might be used as evidence to seek Government support for clinical placement training in optometry.