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.

The value of circles and the dangers of straight lines

This article focuses on how respectful learning relationships based on reciprocity between a Anglo-western raised educator and South Sudanese Australian students and graduates in social work and welfare courses in a regional location have (re)shaped the development of a research process. A reflective critique is intertwined with a description of my search (as an experienced practitioner but new researcher) for an appropriate ethical cross cultural framework for researching and advocating with a small ethnic population in a regional location. This includes a description of the process of exploring the need for, and positioning of, changing and re-creating relationships between the ‘researcher(s)’ and the ‘researched’ as co-authors; co-researchers; collaborators and participants to address issues of selfdetermination and power in the context of cross cultural research, education and human rights. The motivation to research seems a pivotal part of ethics in cross cultural research. As an educator I became concerned that the courses I taught in, and my own teaching practices, were (unintentionally) discriminatory. There appeared to be a lack of acknowledgement and/or action regarding the ingrained Western whiteness permeated and privileged knowledge and approaches in the construction and delivery of courses. I did not think I was adequately responding to, recognising or incorporating the different knowledge’s, strengths and needs of South Sudanese Australian students and graduates. There was a lack of fit between the academic rhetoric of human rights and diversity and my/our educator practice. This article explores the ‘corralling’ effect of mainstream research culture with attention to its potential for seduction and corruption that tends to separate the passion from the researcher, the researcher from the researched, and the actual issue(s) of concern ….from everyone.

Improving the value of the national curriculum through ethics and the religious

Ethics and religion are currently being considered for inclusion into Australia's national curriculum. This paper argues that such a consideration ought to be founded upon an education for democracy, where students are encouraged to become critical inquirers. It is also contended here that an engagement with ethics and the religious has a lot of potential for enhancing the educative value of our national curriculum because currently ACARA lacks any aspirational purposes for education and is merely focused upon the technical concerns regarding teaching and learning.

The value of weeds for wildlife and implications for management

This research found that weeds provided valuable habitat for some wildlife, but that current weed management does not adequately account for such interactions. By retaining weed structure during weed management this study showed that wildlife could remain unaffected by considered weed management.

The value of guided operating theatre experience for undergradaute nurses

Not all undergraduate nurses visit the operating theatre. Does this impact on care provided pre and post-operatively? Knowledge testing revealed a 76% pass rate for guided compared to 56% for non-guided learners at graduation and a 100% pass rate for guided compared to 53% of non-guided after their Graduate Nurse Year.

Navigating the terrain of lived experiences: the value of lifeworld existentials for reflective analysis

In qualitative research we are often presented with a tension between having open and fluid interviews to support staying true to the lived experiences of participants and achieving a level of abstraction from the data in order to uncover the essential structures and meanings of that particular lived experience. A way of resolving this tension is through the application of theoretical frameworks. Van Manen’s four lifeworld existentials offer a lens through which to explore and navigate disparate interview data and uncover the essences of lived experience, without imposing categories upon the data itself. Drawing on a study exploring the lived experiences of childless women, we explore the process and principles in operationalising the existentials and discuss the potential implications for analysis and findings. The article demonstrates how Van Manen’s lifeworld existentials present us with a holistic and valuable method for reflective practice, in coming to understand lived experience.