Executive equity risk-taking incentives and audit pricing

Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman of the board. Collectively, our results suggest that audit firms incorporate executive risktaking incentives in the fees they charge for their services.

The effect of auditor quality on financing decisions

We present a model and provide empirical evidence showing that auditor quality affects the financing decisions of companies, and that higher audit quality reduces the impact of market conditions on client financial decisions and capital structure. Consistent with our analytical predictions, we find that companies audited by Big 6 firms are more likely to issue equity as opposed to debt than are those audited by small audit firms. We also find that companies audited by Big 6 auditors are able to make larger equity issues than are those audited by small auditors, but the difference narrows when market conditions improve. Additional results show that the debt ratios of companies decrease less in response to favorable market conditions when auditor quality is high, at least over the medium term.

Cost analysis error? Exploring issues relating to whole-life cost estimation in sustainable housing

Purpose: The main purpose of the study is to promote consideration of the issues and approaches available for costing sustainable buildings with a view to minimising cost overruns, occasioned by conservative whole-life cost estimates. The paper primarily looks at the impact of adopting continuity in whole-life cost models for zero carbon houses. Design/methodology/approach: The study embraces a mathematically based risk procedure based on the binomial theorem for analysing the cost implication of the Lighthouse zero-carbon house project. A practical application of the continuous whole-life cost model is developed and results are compared with existing whole-life cost techniques using finite element methods and Monte Carlo analysis. Findings: With standard whole-life costing, discounted present-value analysis tends to underestimate the cost of a project. Adopting continuity in whole-life cost models presents a clearer picture and profile of the economic realities and decision-choices confronting clients and policy-makers. It also expands the informative scope on the costs of zero-carbon housing projects. Research limitations/implications: A primary limitation in this work is its focus on just one property type as the unit of analysis. This research is also limited in its consideration of initial and running cost categories only. The capital cost figures for the Lighthouse are indicative rather than definitive. Practical implications: The continuous whole-life cost technique is a novel and innovative approach in financial appraisal [...] Benefits of an improved costing framework will be far-reaching in establishing effective policies aimed at client acceptance and optimally performing supply chain networks. Originality/value: The continuous whole-life costing pioneers an experimental departure from the stereo-typical discounting mechanism in standard whole-life costing procedures.

The client's complex decision-making environment on international mega projects

More than ever before, architectural, engineering and construction (AEC) firms are working on international mega projects. The mega project environment offers a range of opportunities for firms but is but is characterised by a high level of risk and uncertainty. International mega projects bring together networks of people with differing backgrounds and cultures to work in unfamiliar locations to integrate the social, economic, technical and political components of design and construction. Within such an intense environment there is a process of rapid relationship development at an unprecedented level. The interests and power relations on such projects are often very strong given the vast amount of money, jobs, environmental impacts, publicity and national prestige involved. Therefore in a field as costly or consequential as mega project design and construction there is an increased need to effectively manage these projects given the associated high risks of failure. Internationalisation is a relatively new field of research in the AEC sector and past research has tended to focus on explaining the attitudes and behaviour of the industry itself towards improving performance on such projects. To date there has been little research investigating the sophistication of the international client in terms of their regular business environment which is characterised by a set of social, economic and political responsibilities. The values that clients ascribe to their everyday practices and experiences inevitably condition how they act economically, which in turn impacts upon project decision-making. Clients establish the structural organisation of project teams through the procurement strategy and establish the context for effective decision-making. To a large extent they establish a unique culture that project team members need to work within and make decisions. Since clients establish the context within which firms operate the findings of past studies on the industry’s position and attitudes are more indicative than enlightening. Clients occupy a distinctly different position in the construction supply chain and therefore experience and respond to project matters based upon their environment and not the construction industry environment. Clients are confronted with uncertainties and need support to help them understand the critical role that they play in creating good decision-making environments. This theoretical paper seeks to develop a rationale for studying the client’s complex decision-making environment on international mega projects. Specifically it charts the quest for improved industry performance through client leadership as documented in various industry and government publications since the 1940s and highlights that there has been considerable attention to address industry problems through client leadership, however, with little evidence that the issues have been resolved. This paper is positioned within a PhD study, which seeks to move beyond the aspirations of policymakers and idealistic descriptions of how clients ought to behave to explain the reality of what really happens on mega project client decision-making based upon a critique of cultural political economy.

Client leadership capacity on international projects : exploring the client's complex decision-making environment through a critical cultural political economy lens

The global construction environment offers stakeholders a range of opportunities but is characterised by a high level of risks and uncertainty. Internationalisation is a relatively new field of research in the AEC sector and past research has largely focused on explaining the behaviour of the industry itself. To date there has been little research investigating the client's leadership role. Much effort has been placed on positioning clients towards overall industry performance improvement, however, with little emphasis on the client's capacity to undertake their role. Clients establish the decision-making environment through key early critical decisions including procurement strategy and team membership. To a large extent they establish a unique culture that project team members need to work within and make decisions, which is the social and cultural embedding of the economic activities on projects. This theoretical paper is positioned within a PhD study which undertakes a cultural political economy perspective to investigate the client's central role in setting the boundaries within which decisions affecting budgets, quality, design, project organisational structure and team membership throughout the project lifecycle come to be made. A conceptual model for client leadership on international projects is developed based upon two contextual indicators which seeks to describe and explain the economic decisions clients make, which are deeply embedded in social relationships, shared meanings and cultural norms and the associated power and influence clients have on the political economy of international design and construction practice. This paper also seeks to develop a research question for future empirical testing.

Automatic acceptance test case generation from essential use cases

Requirements validation is a crucial process to determine whether client-stakeholders' needs and expectations of a product are sufficiently correct and complete. Various requirements validation techniques have been used to evaluate the correctness and quality of requirements, but most of these techniques are tedious, expensive and time consuming. Accordingly, most project members are reluctant to invest their time and efforts in the requirements validation process. Moreover, automated tool supports that promote effective collaboration between the client-stakeholders and the engineers are still lacking. In this paper, we describe a novel approach that combines prototyping and test-based requirements techniques to improve the requirements validation process and promote better communication and collaboration between requirements engineers and clientstakeholders. To justify the potential of this prototype tool, we also present three types of evaluation conducted on the prototpye tool, which are the usability survey, 3-tool comparison analysis and expert reviews.

Client experience of brief lifestyle intervention by community nurses

Lifestyle modification interventions in primary health care settings are an important means of addressing lifestyle risk factors. An essential factor for the success of lifestyle advice is the client’s acceptance. Lifestyle interventions offered in general practice are well accepted by clients. However, little is known about how lifestyle interventions are accepted if offered by community nurses in the client’s home. This study investigates the experience and perspectives of clients who were offered brief lifestyle interventions from community nurses, based on the 5As model. Semi-structured interviews were conducted with 20 clients who had received brief lifestyle interventions from community nurses as part of a larger intervention trial. All clients perceived the provision of lifestyle interventions to be an appropriate part of the community nurses’ role. The advice and support offered was useful only to some, depending on personal preferences, experiences, perceived lifestyle risk and self-rated health. Offering brief lifestyle interventions did not affect the rapport between client and nurse and this puts community nurses in an ideal place to address lifestyle issues that can sometimes be sensitive. However, client-centredness must be emphasised to improve clients’ uptake of lifestyle advice and support.

The association between the investment opportunity set and corporate financing and dividend decisions: some Australian evidence

Summarizes previous research on the investment opportunity set (IOS) using price-based and investment-based proxies and variance measures; and develops hypotheses on the relationship between IOS, debt/equity ratios and dividend policies. Tests them on 1990-1998 data from listed Australian companies and explains the methodology, which builds on Gover and Gover (1993) by including more recent proxy variables. Finds no significant results from low growth firms, although some high growth firms show lower debt/equity ratios and dividends. Questions the robustness of existing IOS proxies in the Australian context and calls for further research.

Acceptance and leadership-hegemonies of e-commerce policy perspectives

This paper presents an analysis of the e-Commerce policies developed and implemented in the USA, Canada, Australia, Victoria, Finland, Norway, the UK, Ireland, the EU (by the OECD), Singapore, Japan, Malaysia, Thailand and Hong Kong (Special Administrative Region). The paper shows that e-Commerce policy adopted is generally trying to achieve two fundamental aims:

1. to minimize regulatory environments for e-Commerce; and
2. to ease logistical problems in doing e-Commerce—i.e. in paying electronically, in deliver y of goods and in customs, tariffs and duties.

These strategies are designed to create an environment where e-Commerce is adopted by business and government in these countries to achieve ‘best practice’, to become ‘modern’, to gain ‘efficiencies’, because ‘it is the way to go’, because ‘we must have it, because everybody has it’, and because they ‘perceive the benefits of it’. In essence it is being used to gain hegemony in the economic competitiveness of the geopolitical environment created by the Internet. This paper argues that differentiating types of policy is related to ideology and hegemony in the various countries.

Factors that influence employer decisions in hiring and retaining an employee with a disability

This paper is based on results of a national study in Australia. Questionnaires were completed by 643 employers, each of whom had employed a person with a disability between 1996--1998. Employers rated the importance of several factors relevant to decisions to hire and retain a person with a disability. Individual factors were rated most important, with grooming/hygiene and work-performance factors rated highest. Management factors and cost factors were rated moderately important. Social factors were rated least important. Analyses of variance were conducted, identifying several employer differences in ratings. The paper discusses employer values as well as the need to include employers in a partnership approach.

Acknowledgement of client diversity and oppression in social work student supervision

An enduring theme of social work literature and education has been the need for workers to recognise and challenge oppressive structures and develop competence in working with diverse client groups. This paper reports the findings of a qualitative research project where student and field educator supervision sessions were recorded, with the view to examining how oppression and diversity were addressed in these sessions. The authors have used the term 'difference' to describe the breach between the student and client experiences. Examples of anti-discriminatory practice were identified in the recordings, however on occasions supervisors had difficulty in assisting students to acknowledge diversity and oppression in supervision. Four factors that related to addressing diversity emerged from the supervision material. These were: the struggle to unmask subtle themes of oppression; the use of questioning to raise student awareness and development of self-knowledge; using student biography to facilitate learning on 'difference'; and field educator use of self-disclosure during discussions on diversity. Successful approaches to anti-oppressive practice and responding to diversity are outlined.

Predicting IHRM strategy and practice decisions : development of the IHRM orientation typology

International human resource management (IHRM) is becoming increasingly fundamental to organisational success, as globalisation forces demand organisations to design and implement a global strategy. One of the most critical choices faced by IHRM practitioners is whether and when an organisation should adapt its human resource policies and practices to the local context (localisation). A typology of International Human Resource Management Orientations (IHRMO) that clarifies what IHRMO’s are and what they entail is developed from a review of the literature on localisation and globalisation, convergence and divergence and Perlmutter’s management typology. Additionally, two theoretical models are developed that predict which IHRM orientation identified in the typology should be adopted. The article takes a step towards elucidating effective IHRM strategy and practice decision-making by showing that culture and institutional pressures, amongst other tings, do make a difference.

Application of the fair-value concept : evidence from Australian legal decisions

The concept of "fair value" is increasingly being incorporated into Australian and international accounting standards and pronouncements. The fair-value concept has also been established and developed in Australian legal cases, and an examination of pertinent court decisions is of interest to accountants. By examining and analysing relevant cases, the paper highlights some of the principles and difficulties involved in operationalising the fair-value concept for accounting and legal purposes, particularly in situations where the asset being valued is subject to imperfect or incomplete markets.

Well-being and menopause: an investigation of purpose in life, self-acceptance and social role in premenopausal, perimenopausal and postmenopausal women

Objectives: Many studies have investigated anxiety and depression during the menopausal transition. However, there is little understanding of positive aspects of well-being among menopausal women. This paper reports on two studies which investigated how menopausal stage and age accounted for how women felt about their purpose in life, self-acceptance and social role. Method: In Study One, 304 women from a community sample completed structured questionnaires which included questions relating to demographic background and two subscales of the Psychological Well-being Inventory: purpose in life and self-acceptance. In Study Two, 203 participants from Study One returned a follow-up structured questionnaire related to purpose in life and social role. Results: Study One found that the effects of age group and menopausal group could not be separated: All women felt they would be more positive about these well-being measures in the future than they had been in the past and at present. Study Two found that women who were perimenopausal and postmenopausal did not feel as positive about their role/s in life as premenopausal women, regardless of their age. Conclusions: The results suggest that the menopause may indicate to women that their role/purpose in life is changing. It is important that any understanding of the menopause incorporate psychosocial aspects of women''s lives. Further longitudinal studies are needed to explore well-being factors and the menopause.