Managerial share ownership and operating performance : do independent and executive directors have different incentives?

We investigate the relationship between managerial share ownership (MSO) and earnings as a measure of operating performance in Australia. To mitigate potential earnings management, we also use discretionary accrual adjusted earnings as an alternative measure of performance. We document a negative relation between MSO and performance followed by a positive relation. We suggest that these unique results are an artefact of certain Australian institutional features and imply that the ownership–performance relation is context-specific, with the wider corporate governance systems influencing the theorised incentive effects. We also posit that executive directors and independent directors have different ownership–performance incentives. Our results are consistent with this proposition and suggest that independent directors may be immune to the theorised incentive alignment or entrenchment effects associated with share ownership.

Sharing ownership in multicultural music : a hands-on approach in teacher education in South Africa

South Africa prides itself in a rich and colorful array of the Arts where music plays a significant role in social regeneration, unity and reconciliation. Little research has been undertaken in teacher education courses in South Africa regarding the inclusion of African music within multicultural music practice. Using the theoretical frameworks of understanding multiculturalism, I report on the teaching and learning of multicultural music at Pretoria University. My narrative highlights what I had learned and reports on the interview data with the tertiary music educator in October 2010. Using Interpretative Phenomenological Analysis, two themes are discussed: the need for multicultural music and the inclusion of students as indigenous culture bearers. Lessons learnt at Pretoria University can be replicated elsewhere in Australia where the sharing of ownership in multicultural music as a hands-on approach is viewed positively, promoting understanding and respect in a shared space and place.

Secure mobile RFID ownership transfer protocol to cover all transfer scenarios

Existing business models require RFID tag to transfer its ownership during its life cycle. As a result, a RFID tags might have many owners during its life cycle. However, the transfer of ownership should ensure that previous owners have no information about current owner's data. Physical ownership does not ensure digital ownership transfer given the wireless nature of communication with RFID tags. Most of the proposed protocol in this nature is implacable to address aU existing RFID tag ownership transfer scenarios. Moreover, they have many security concerns and vulnerabilities. In this paper, we have investigated and discussed all existing business cases and their transfer scenarios. To cover all ownership transfer scenarios, we have presented an ownership transfer protocol. The proposed protocol has used modified DiffieHellman algorithm to perform ownership request validation and authentication of involved parties. Performance comparison shows that our protocol is practical to implement passive low-cost RFID tags, securely performs tag ownership transfer and can be used for all existing ownership transfer scenarios.

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.

Secure RFID tag ownership transfer based on quadratic residues

In this paper, we propose a novel approach to secure ownership transfer in RFID systems based on the quadratic residue property. We present two secure ownership transfer schemes-the closed loop and open loop schemes. An important property of our schemes is that ownership transfer is guaranteed to be atomic. Further, both our schemes are suited to the computational constraints of EPC Class-1 Gen-2 passive RFID tags as they only use operations that such passive RFID tags are capable of. We provide a detailed security analysis to show that our schemes achieve strong privacy and satisfy the required security properties of tag anonymity, tag location privacy, forward secrecy, and forward untraceability. We also show that the schemes are resistant to replay (both passive and algebraic), desynchronization, and server impersonation attacks. Performance comparisons demonstrate that our schemes are practical and can be implemented on low-cost passive RFID tags.

Institutional Ownership, Audit Committee and Risk Disclosure – Evidence from Australian Stock Market

This study investigates the influence of institutional ownership and audit committees corporate risk disclosures. Focusing on analysing firms’ risk disclosures make in their 2009 annual reports, our sample constitutes a sample of 66 Australian listed firms. We divide institutional shareholders into dedicated-type institutional block shareholders and transient-type institutional block shareholders. We find that while there is no significant relationship between dedicated-type institutional block shareholders and risk disclosure, there is a positive relationship between transient-type institutional block shareholders and risk disclosures. Our result is consistent with a principal that wields limited monitoring resources while achieving high resource dependency over management. We also find a significant and positive relationship between audit committee independence and risk disclosures, showing the positive role played by audit committee in improving the information transparency and reducing information asymmetry in capital market.