The role of board independence in mitigating agency problem II in Australian family firms

We investigate the impact of board independence on earnings management on a sample of family controlled firms listed on the Australian Securities Exchange (ASX). Using panel data over the period 2000–2004, we find evidence of earnings management among family controlled firms in Australia, an environment of high investor protection and private benefits of control. Findings show that a higher proportion of independent directors on boards is effective in reducing earnings management, thereby mitigating agency problems associated with entrenchment and expropriation in family firms. We also find that managers of family firms are less aggressive in managing earnings via discretionary long-term accruals compared to non-family firms.

Do service and merchandise exporters behave and perform differently? : a New Zealand investigation

Research on export behaviour and the determinants of export performance of manufacturing firms abounds in the literature. By contrast relatively little research has been undertaken that focuses on service exporters despite the growing importance of service exports in most advanced industrialised countries. This paper compares the export behaviour and performance of service firms to those of manufacturing firms. The study is based on a survey of 155 small and medium size exporters from New Zealand. The results suggest that service exporters are distinctively unique in many respects and exhibit export behaviours that are different from exporters of merchandise. Generally, service firms have greater flexibility to adapt their products to the specific requirements of their customers, use direct export channels more often and are also more proactive than merchandise firms in the establishment of future export strategies. Overall, the size and commitment of service exporters have the greatest influence on their performance.

Relationships, the role of individuals and knowledge flows in the internationalization of service firms

This article develops a new conceptual model of knowledge flows within international service firms. Our model takes explicit account of the critical role of relationships and the individual as being central to the process of knowledge transfer for service firms. The model is then validated with data collected from five international service firms using critical event analysis techniques. The findings reinforce our contention that the individual plays a critical role in the process of knowledge transfer and that relationships form an integral part of this process. The implications of this finding are also discussed.

Real estate graduates’ employability skills : the perspective of human resource managers of surveying firms

Purpose – The purpose of this paper is to report further on research funded by the Centre for Education in the Built Environment (CEBE) into real estate programmes of study in UK universities (Poon and Hoxley). The aim of this paper is to identify human resource managers’ view on the employability skills of real estate graduates. It also compares the views on the employability skills of real estate graduates between human resource managers, a large sample of real estate employers and real estate course directors.

Design/methodology/approach – This paper presents the research findings of eight interviews with human resource managers who work in different types of surveying firms. The approach for collecting their view of the employability skills required by real estate graduates was through gathering their opinions on three charts. These charts compare what employers feel graduates require and what they feel graduates demonstrate in 31 knowledge areas, 20 skills and 21 attributes, alongside a list of additional competencies made by graduates and employers which was developed as part of an earlier study.

Findings – The human resource managers identified the key employability skills for real estate graduates as soft skills, in particular report writing skills, communication skills, presentation skills, client care and professional standards. The human resource managers of real estate consultancy firms also voiced their concern regarding graduates’ lack of commercial awareness, which echoed the same view from real estate employers and real estate course directors mentioned in the previous research (Poon, Hoxley and Fuchs). Therefore, it is necessary for universities to embed these soft skills, such as commercial awareness in the curriculum in order to enhance the employability of graduates.

Originality/value – This paper makes an original contribution to existing literature on the identification and discussion of employability skills for real estate graduates. It describes pioneering research focusing on the human resource managers’ perspective of the real estate graduate employability skills.

Sectoral analysis on capital structure determinants among the Malaysian listed firms

This study highlights the sensitivity of capital structure determinants in each sector within the ensembles of Malaysia Listed Companies. Based on pooled OLS, fixed effect and Generalized Method of Moments analysis, the findings revealed that capital structure determinants vary across sectors due to its nature or characteristics.

Nature, extent and antecedents of risk management in accounting, law and biotechnology firms in Australia

This paper provides empirical evidence on the nature and the extent of risks faced by small and medium-sized biotechnology and professional service firms (accounting and law) in Australia, as well as on the style of their adopted risk management methods and approaches. The findings of the study indicate that the top three risks faced by these firms are related to reputation, recruiting and retaining skilled staff, and cost management. The study also finds that more than half of the respondent firms manage risk in an integrated manner. The results of this study provide useful insights into the nature, extent and driving forces of risk management practices in these firms.

A study of voluntary disclosure of listed Chinese firms - a stakeholder perspective

Purpose – The aim of this paper is to investigate stakeholder power changes and their impact on firms' disclosure decisions in the Chinese stock market. Using legitimacy theory and stakeholder theory, the paper identifies newly emerged stakeholder groups for listed Chinese firms during three distinguished periods of the development of the Chinese stock market.

Design/methodology/approach – Panel data analysis was undertaken over a period from 1995-2006 with an aim to examine the influence of stakeholder power changes on voluntary disclosures made by 297 listed firms in their 12 years of annual reports. A voluntary disclosure checklist has been used for hand-collecting data from annual reports.

Findings – The finding shows that different stakeholder groups exert different degrees of influence on firms' decision-making in respect of information disclosure during different stages of the development of the Chinese stock market.

Research limitations/implications – The impact of a stakeholder power changes on corporate disclosure has not been well addressed and how listed Chinese firms respond to these changes is still a significant gap in the Chinese corporate disclosure literature. In this study, the paper uses proxies to represent each stakeholder group, discuss power changes of each group and predict the impact of power changes on firms' voluntary disclosure.

Originality/value – The paper identifies the new content of the “social contract” between listed firms and Chinese society and identifies various stakeholder groups of listed Chinese firms in the context of a new “social contract”. The paper predicts that voluntary corporate disclosure is the result of stakeholder pressures and firms use voluntary disclosure as one of their strategies to manage the firm-stakeholder relationship.