Users' information requirements and narrative reporting : the case of Iranian companies

This paper investigates whether the narrative section of Iranian companies' annual reports satisfies the information requirements of financial analysts employed by institutional investors. Taking a group of stakeholders (i.e. financial analysts) as the sample, a questionnaire survey was conducted to identify their top three information needs from the narrative sections of company annual reports in each of three information categories: Present, Analytical and Prospective. Following this survey, a checklist was prepared to analyse whether Iranian companies are disclosing this information required by financial analysts. Overall, the results partially support stakeholder theory as there is a general lack of information flow on the part of Iranian listed companies in meeting their stakeholders' information needs.

The impact of political behaviours on internationalisation : the case of Australian companies internationalising to China

Purpose – The purpose of this paper is to test a model of cooperation between internationalising businesses and local and host country governments in the context of Australian companies internationalising to China.

Design/methodology/approach – The paper presents a model for the political dimensions of internationalising based on corporate political theory and the cooperative view of management. Data were collected from personal interviews with representatives from 40 Australian organisations with businesses or operations in China. The data were analysed using NVivo.

Findings – Assistance provided by the Australian government was often sought and was perceived to be beneficial. Most participants experienced policies and regulations which affected their entry modes. In ten cases they acted as barriers and significantly influenced entry mode choice. The majority of participants viewed the development of relationships with the Chinese government as important and employed a variety of relationship behaviours. Over half of the participants identified the need to understand and deal with the psychically distant government structures of the Chinese government, namely government intervention in business.

Practical implications – The model links the organisational objectives of businesses internationalising to China, understanding the political/regulatory environment, selecting an entry mode and developing/maintaining a successful business. To achieve these objectives corporate political behaviour must reflect the sovereign powers in place at the time.

Originality/value – The paper presents a model which develops the literature for the political dimensions of internationalisation. It also presents empirical data on the political dimensions of internationalising into China. These findings will assist businesses in understanding political factors when internationalising to China.

TQM and labour productivity in Jordanian industrial companies

Reports on research to determine the degree of application of total quality management (TQM) philosophy and practices in industrial corporations in Jordan. Uses primary and secondary empirical data to examine the link between TQM and labour productivity. Survey responses were classified into two groups: high-TQM implementation and low-TQM implementation. Found that mean labour productivity measurements for high-TQM companies were significantly higher than for low-TQM companies over the period 1993-1998. Also, mean growth rates of labour productivity measurements for companies with high-level TQM were higher than for those with low-level TQM during this period. Regression analysis demonstrated a statistically significant positive relationship between TQM and labour productivity.

Organisational determinants of employee turnover for multinational companies in Asia

High employee turnover rates among multinational companies (MNCs) in Asia have become an organisational issue, which cannot be sufficiently addressed at the individual level. In this paper, we examine the issue of employee turnover at the organisational level. A group of organisational variables (e.g., training, size, age, industry, percentage of expatriate managers and headquarters’ national base) were tested, using a sample of 529 MNCs in six Asian countries. The standard multiple regressions show that training, size, the length of operation in local subsidiary and nature of industry are significantly related to turnover. An effect of the percentage of expatriate managers present in the local subsidiary on employee turnover appears to be moderate. These results fill a research gap by identifying organisational variables (as opposed to individual characteristics) and contribute to better explanation of employee turnover at firm level. Implications to MNCs in the greater Chinese region and Asia are discussed.

People management challenges to multinational companies in Asia

This book discusses the contextual factors such as cultural and institutional settings that impact on effective people management practices in Asia. The challenges of multinational companies (MNCs) in the particular areas of attraction and retention, training and career development of the local skilled labour workforce are analyzed using the data of 529 MNCs in six Asian countries (namely Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand). The degree of challenges varies by country and sector. This book draws conclusions from the empirical research stating that cultural and institutional theories, as well as the convergence and divergence theses can explain at best, partially, reasons behind the different outcomes of people management or human resource management (HRM) practices across MNCs in different operations in the region.

Exploring training issues of multinational companies in Asia

Effective employee training is important to organisations as it improves quality of human resources, which in turn help achieve better organisational outcomes. The literature on education, training and other aspects of human resource development (HRD) among multinational companies (MNCs) in Asia is quite limited. This paper intends to explore training expenditure, training programs offered and training concerns indicated by companies, using a survey of 529 MNCs operating in six Asian countries (namely Indonesia, Malaysia, Philippines, Singapore, Thailand and Taiwan). The findings show that the majority of MNCs surveyed recognised the benefits of employee training and invested heavily on training different types of employees in local subsidiaries. Organisational variables such as size, industry, parent source and proportion of international activity also affected training practices of MNCs. The paper identified some quality and relevance issue related to formal and externally-conducted training programs.

Training practices of multinational companies in Asia

Purpose – The purpose of this study is to explore a range of training practices adopted by multinational companies (MNCs) operating in Asia. It investigated the level of training expenditure, the nature of training programs offered and the concerns about training in MNCs.

Design/methodology/approach – Data were obtained through a survey of 529 MNCs operating in six Asian countries to examine the average cost spent on training and the type of training programs offered to different groups of employees. The respondents were also asked to indicate their perceptions on the training provided and how effective the training has on firm performance.

Findings – It appears that MNCs invested significantly in training. Training was found to be more widespread in service organisations than manufacturing organisations operating in Asia. The majority of training emphasised managerial and professional staff development; and was generally conducted externally. Respondents were concerned mainly with the quality and relevance of training programs offered externally.

Originality/value – The results provide MNCs, especially those headquartered in European and other Western countries with insights into designing and offering more relevant and better quality training programs to their employees located in Asian subsidiaries.

Does accounting choice influence US investment in non-US companies? Evidence from US institutional investment in Australian companies

Previous research asserts that companies that choose accounting methods more familiar to investors reduce information asymmetry and increase credibility of their financial statements to those investors, thereby attracting higher levels of foreign investment. This study examines the variation in accounting policies associated with institutional investment in Australian equity. The results suggest that large US institutional holdings in Australian companies are associated with American Depositary Receipt listing and, incrementally, choice of accounting methods that conform to US Generally Accepted Accounting Principles (GAAP). Although making accounting choices in compliance with US GAAP is significantly associated with higher levels of institutional ownership in a statistical sense, examination of the specific differences in accounting choices suggests that the differences in informational content are relatively minor.