Monitoring and incentives of executives in risky firms : a test of the association with firm performance

This study investigates the relationship between a firm's risk and the effectiveness of the firm's corporate governance practices. Previous research investigating the relationship between corporate controls and firm performance has been mixed and often weak. Therefore, this study sets out to determine the efficiency of monitoring and incentive contracts given certain characteristics of the firm. That is, the study sets out to determine whether risk firms with higher monitoring and levels of incentives are associated with higher firm performance.
The results of this study of 282 firms demonstrate how the relationship between firm risk and performance is associated with the monitoring and incentive contracts used by these firms. In particular, the results of this study showed that the negative association between risk and firm performance is weakened when firms have stronger monitoring and incentive mechanisms. The particular contribution of this study is to show that the role of corporate governance variables infirm performance should be evaluated in the context of the firm's risk.

Police stress : the role of psychological contract and perceptions of fairness

Purpose – The overall purpose of this paper is to examine the extent to which breaches in psychological contracts and perceptions of organizational fairness account for variations in job stress experienced by operational police officers (as measured by psychological distress and employee performance), after controlling for the variance associated with more established job stressors (i.e. job demands, job control and social support).

Design/methodology/approach – This study is based on data collected through a self-report survey involving operational members of a large Australian police force (n=582).

Findings – Results of hierarchical multiple regression analyses indicate that vast majority of explained variance in psychological distress and extra-role performance is attributed to the additive effects of demand, control, and support. Furthermore, only one of the social exchange dimensions (interpersonal fairness) is predictive of either target variable.

Research limitations/implications – The limitations that need to be taken into account are the cross-sectional nature of the study design and the focus on a single police service.

Practical implications – Despite the generally weak support for the social exchange variables, there are signs that dimensions of justice (particularly interpersonal justice) should be included in future police-stress investigations. The results also suggest that job characteristics such as job demand, job control and social support should be taken into account when developing strategies to prevent and/or reduce chronic job stress in policing services.

Originality/value – This is one of the first studies to examine the relationships between psychological contract breach, perceptions of fairness and police stress.

Motivational readiness for active commuting by university students : incentives and barriers

Issue addressed: Walking for transport can contribute significantly to health enhancing physical activity. We examined the associations of stages of motivational readiness for active transport with perceived barriers and incentives to walking to and from university among students. Methods: Mail-back surveys were completed by 781 students in a regional university in southeast Queensland. They identified one of eight options on motivational readiness for active commuting, which were then classified as: pre-contemplation; contemplation-preparation; or, action-maintenance. Open-ended questions were used to identify relevant barriers and incentives. Logistic regressions were used to examine the barriers and incentives that distinguished between those at different stages of motivational readiness. Results: Barriers most frequently reported were long travel distances, inconvenience and time constraints. Incentives most frequently reported were shorter travel distance, having more time, supportive infrastructure and better security. Those not considering active commuting (pre-contemplation) were significantly more likely to report shorter travel distance as an incentive compared to those in contemplation-preparation. Those in contemplation-preparation were significantly more likely to report lack of motivation, inadequate infrastructure, shorter travel distance and inconvenience as barriers; and, having more time, supportive infrastructure, social support and incentive programs as encouragement. Conclusions: Different barriers and incentives to walking to or from university exist for students in the different stages of motivational readiness for active commuting. Interventions targeted specifically to stage of motivational readiness may be potentially helpful in increasing activity levels, through active transport.

Emotions in education policy : a social contract analysis of asymmetrical dyads and emotion

Like other academic fields, educational policy is being reviewed for the affective component. Analysis is occurring in two forms: (a) the affects of education policy on education, school leaders, teachers and student learning outcomes and (b) text analysis of specific education policies. This chapter explores the representation of emotions in education policy texts, drawing on a theory of social contracts (Rawolle & Vadeboncoeur, 2003; Yeatman, 1996) as a way to explore what is being conveyed to administrators and teachers. This chapter considers the way in which emotions are represented in education policy, through social contract analysis. Social contracts are underpinned by three underlying conditions: consent to be a part of a contract, points of renegotiation through the duration of the contract and mutual accountability to those involved.

Information systems development contracts : An exploratory study of Australian legal pratitioners' and information systems professionals' perceptions

IS professionals are primarily concerned with the development of a project to meet the goals of a client. Unfortunately, IS professional do not always pay close attention to the contract or to its management and are often unaware of the legal implications of the contracts to which they are assenting. Legal advice can be sought during pre-contractual processes to help ensure that the contract meets the expectations of all the parties. If the project does not meet stakeholder’s expectations, thus causing a contract to come into dispute, lawyers may be called in to review the contract and to seek a settlement. This paper reports an exploratory study of the differences in perceptions of IS development contracts that exist between IS professionals and legal practitioners.

Student peer and self assessment in the context of work integrated learning : making it work

Students are now experiencing opportunities in practice education where their learning is facilitated by professionals of varied backgrounds thus leading to issues of how to assess student performance while on placement. Educators have had to re-think the way in which students’ performance is assessed and to integrate the key graduate attributes of critical reflection, self and peer assessments and feedback. Using recommendations by Mason (1999) in relation to a collaborative group model for workplace learning and ‘The Self-Directed Learning Model’ by Gaiptman and Anthony (1989) the Occupational Wellness and Life Satisfaction (OWLS) program encourages students to reflect on their experiences in an environment of self and peer evaluation, focussing on the process of learning rather than purely on outcomes. Students are required to complete a self and peer assessment of their learning using a nationally recognised fieldwork evaluation instrument and develop a practice portfolio consisting of learning contract and supporting evidence for their self-assessment. Qualitative and quantitative data was collected via a questionnaire to alumni. The most frequently identified skills that were valued by respondents were autonomy and independence. Other benefits identified were facilitation of self directed learning, and ability to problem solve with colleagues and to share learning. In a higher education environment where lifelong learning and the ability to work collaboratively are valued graduate attributes, a focus on peer and self assessment within the context of work integrated learning contributes to graduates who are well placed to work in both traditional and newer and emerging areas of practice.

Hyaluronic acid–collagen network interactions during the dynamic compression and recovery of cartilage

A compression cell designed to fit inside an NMR spectrometer was used to investigate (i) the in situ dynamic strain response and structural changes of the internal pore network, and (ii) the diffusion and flow of interstitial water, in full thickness cartilage samples as they were mechanically deformed under a constant compressive load (pressure) and then allowed to recover (swell again) when the load was removed. Selective enzymatic digestion of the collagen fibril network and the glycopolysaccharide hyaluronic acid (HA) was performed to mimic some of the structural and compositional changes associated with osteoarthritis. Digestion of collagen gave rise to mechanical ‘dynamic softening’ and—perhaps more importantly—nearly complete loss in the ability to recover through swelling, both effects due to the disruption of the hierarchical structure and fibril interconnectivity in the collagen network which adversely affects its ability to deform reversibly and to properly regulate the pressurization and resulting rate and direction of interstitial fluid flow. In contrast, digestion of HA inside the collagen pore network caused the cartilage to ‘dynamically stiffen’ which is attributed to the decrease in the osmotic (entropic) pressure of the digested HA molecules confined in the cartilage pores that causes the network to contract and thereby become less permeable to flow. These digestioninduced changes in cartilage’s properties reveal a complex relationship between the molecular weight and concentration of the HA in the interstitial fluid, and the structure and properties of the collagen fibril pore network, and provide new insights into how changes in either could influence the onset and progression of osteoarthritis.

Psychological contract development: An integration of existing knowledge to form a temporal model

The psychological contract has received substantial theoretical attention over the past two decades as a popular framework within which to examine contemporary employment relationships. Previous research mostly examines breach and violation of the psychological contract and its impact on employee organization outcomes. Few studies have employed longitudinal, prospective research designs to investigate the psychological contract and as a result, psychological contract content and formation are incompletely understood. It is argued that employment relationships may be better proactively managed with greater understanding of formation and changes in the psychological contract. We examine existing psychological contract literature to identify five key factors proposed to contribute to the formation of psychological contracts. We extend the current research by integrating these factors for the first time into a temporal model of psychological contract development.

Consumer perceptions of bundles and time-limited promotion deals: Do contracts matter?

Marketers use various types of deals to positively influence consumers' product evaluations. Across two experiments, we manipulated print advertisements to examine whether the commonly used deal content of both bundling and time-limited promotions affect consumers' perceived confusion, risk and value. In study 1, the influence of this content was tested in the context of a 2-year telecommunications (telco) contract. Here, consumers associated a three-item bundle with greater perceived value than a single item, but perceived value was reduced and risk heightened when it was only available for a limited time. We speculate that this is because of the long-term nature of the contract. Study 2 removed the contract restriction, examining the bundling of a video game console and game(s), again with a time-limited promotion. However, in this context, we failed to locate any interaction effects. It appears that consumers further appraise the drawbacks of a long-term telco contract when accompanied by a time-limited promotion and may perceive the switching costs for study 1 three-item telco bundle to be particularly risky. Our studies represent the first empirical investigation of the effect on consumers' perceptions of offering a bundle in conjunction with a time-limited promotion. Testing these effects in contract and no contract conditions adds to the contribution of our studies by delineating a boundary condition. From a managerial perspective, our findings are thought-provoking in respect to information integration, or how consumers process different deal content together.

Private protected areas in Australia: current status and future directions

Despite the recognised importance of private land for biodiversity conservation, there has been little research into systems of private protected areas at a country-wide level. Here I look at definitions, legislation, ownership, management approaches and effectiveness, distribution and incentives provided to private protected areas in Australia. The term 'private protected areas', although increasingly used, still suffers from a lack of a clear and concise definition in Australia. Australian states and territories have legislation enabling the application of conservation covenants over private land; covenants being the primary mechanism to secure conservation intent on the title of the land in perpetuity. If considering all 'in perpetuity' conservation covenants under a dedicated program to be private protected areas and land owned by non-government organisations and managed for the purpose of biodiversity conservation, there were approximately 5,000 terrestrial properties that could be considered private protected areas in Australia covering 8,913,000 ha as at September 2013. This comprises almost 4,900 conservation covenants covering over 4,450,000 ha and approximately 140 properties owned by private land trusts covering approximately 4,594,120 ha. Most conservation covenanting programs now seek to complement the comprehensiveness, adequacy and representativeness of the public reserve system, either stating so explicitly or by aiming to protect the highest priority ecosystems on private land. There are a range of incentives offered for private land conservation and requirements of owners of private protected areas to report on their activities vary in Australia. However, there are a number of key policy challenges that need to be addressed if private protected areas are to achieve their full potential in Australia, including managing broad-scale ecosystem processes, protection and tenure reform, improved financial incentives, and access to emerging ecosystem service markets.

Non-uniform bird assemblages in urban environments : the influence of streetscape vegetation

The urban landscape encompasses a broad spectrum of variable environments ranging from remnant patches to highly modified streetscapes. Despite the expansion of urban environments, few studies have examined the influence of urbanization on faunal diversity, particularly in the Southern Hemisphere. In this study, four broad habitat types were recognized in the urban environment, representing a continuum of modification ranging from parks with remnant vegetation to streetscapes dominated by native vegetation and those dominated by exotic vegetation to recently developed streetscapes. Bird censuses were conducted at 36 sites throughout urban Melbourne, with nine sites surveyed in each habitat type. The four habitat types supported significantly different bird communities based on species richness, abundance and composition suggesting that bird assemblages of urban environments are non-uniform. Parks and native streetscapes generally supported fewer introduced species than exotic and recently developed streetscapes. Overall abundance and richness of species were lower in the exotic and recently developed streetscapes than in parks and native streetscapes. Significant differences were also observed in foraging guilds within the four habitat types, with parks having the most foraging guilds and recently developed streetscapes having the fewest. The transition from native to exotic streetscapes saw the progressive loss of insectivorous and nectarivorous species reflecting a reliance by these species on structurally diverse and/or native vegetation for both shelter and food resources. The implementation of effective strategies and incentives which encourage the planting of structurally diverse native vegetation in streetscapes and gardens should be paramount if avian biodiversity is to be retained and enhanced in urban environments. It is also critical to encourage the maintenance of the existing remnant vegetation in the urban environment.

Community valuations of historic pocket parks: a Melbourne study

The internal reserve, an historic form of planned open space creating semi-private parks at the rear of residential allotments and without street frontages, can be found in Australian suburban areas of diverse socio-economic status. Internal reserves commonly express the idealism of the early town planning movement, which envisaged the internal reserve as an embedded community-building mechanism with multiple potential uses. En vogue from 1910-1930, the internal reserve concept proved problematical from the outset. Even today, while many residents agree that their reserves are responsible for the special nature of their domestic environment, others are apprehensive about safety, maintenance and custodianship. Two surveys of residents living around internal reserves in four Melbourne suburbs, conducted in 1979 and 2002, reveal a variety of opinions on the potential and importance of these spaces. Local communities were found for the most part to have negative and ambiguous perceptions of these reserves. With one exception, residents did not value the parks highly as community spaces and alternative uses may need to be explored. The results suggest that a more innovative set of tools and incentives may be needed to reinvigorate the internal reserve as a significant recreation resource for local communities.

Solving the halloween indictor puzzle : market efficiency still reigns

Prior research by Bouman and Jacobsen (2002) document unusually high monthly returns over the period November-April for both United States (U.S.) and foreign stock markets and label this phenomenon the Halloween effect. The implication is that the Halloween effect represents an exploitable anomaly, which has negative implications for stock market efficiency. We extend this research to the S&P 500 futures contract and find no evidence of an exploitable Halloween effect over the period April 1982 through April 2003. Re-examining Bouman and Jacobsen’s empirical results for the U.S., we find that two outliers drive their results. These two outliers are associated with the “Crash” in October 1987 and collapse of the hedge fund Long-Term Capital Management in August 1998. After inserting a dummy variable to account for the impact of the two identified outliers, the Halloween effect disappears.