Dividends and family ownership: evidence from Indonesia

The thesis finds a significant negative association between family ownership and dividend payout in the Indonesian market. . It is revealed that the market does not disregard the existence of family ownership in reacting to dividend announcements. It documents dividend-paying family firms are associated with lower abnormal accruals as as a proxy of earnings management.

Dividends, leverage, and family ownership in the emerging Indonesian market

We examine the roles of dividends and leverage to mitigate agency problems within familyfirms in Indonesia. Using simultaneous equations, we find a significant negative associationbetween family ownership and dividend payout and a two-way negative relation betweendividend payout and leverage. Our analysis reveals that, compared to non-family firms,family firms tend to maintain a lower dividend pay-out and higher leverage. The presenceof large non-family ownership appears to have an impact on determining levels of privatebenefit control. During the Asian and global financial crisis, family firms changed theirdividend pay-out more than non-family firms did.

Integrating insurance services, trust and risk mechanisms into multi-agent systems

In multi-agent systems, there is often the need for an agent to cooperate with others so as to ensure that a given task is achieved timely and cost effectively. Currently multi-agent systems maximize this through mechanisms such as coalition formation, trust and risk assessments, etc. In this paper, we incorporate the concept of insurance with trust and risk mechanisms in multi-agent systems. The novelty of this proposal is that it ensures continuous sharing of resources while encouraging expected utility to be maximized in a dynamic environment. Our experimental results confirm the feasibility of our approach.

The human nexus – a practical framework for inspiring trust and making ethical decisions

This overview of David Hume’s wide-ranging observations is a matrix portraying the key elements of a pragmatic pathway to a moral decision that can be applied in any situation where organisational decisions need to be made. 

Trading in open marketplace using trust and risk

In this paper, we propose buying and selling models for agents to trade in the open multi-agent marketplace. Unlike auctions, we take into account of the fact that agents trading in such open environments has to maximize their profits and at the same time, protect themselves from fraud and deception. We attempt to address this issue by incorporating the element of trust and risk management into our proposed buying and selling model. During buying, agents learn to select their partners based on the trustworthiness of the potential partner as well as its personal risk attitude. During selling, agents learn to increase the chances of winning a deal by adjusting their profit rate, which is a measure that considers both trust and risk. The novelty of this proposal is that it ensures agents continuing to seek maximum expected utility in a dynamic trading environment. Our experimental results confirm the feasibility of our approach.

Review of trust and machine ethics research: towards a bio-inspired computational model of ethical trust (CMET)

Recent advances in the fields of robotics, cyborg development, moral psychology, trust, multi agent-based systems and socionics have raised the need for a better understanding of ethics, moral reasoning, judgment and decision-making within the system of man and machines. Here we seek to understand key research questions concerning the interplay of ethical trust at the individual level and the social moral norms at the collective end. We review salient works in the fields of trust and machine ethics research, underscore the importance and the need for a deeper understanding of ethical trust at the individual level and the development of collective social moral norms. Drawing upon the recent findings from neural sciences on mirror-neuron system (MNS) and social cognition, we present a bio-inspired Computational Model of Ethical Trust (CMET) to allow investigations of the interplay of ethical trust and social moral norms.

Brand trust and avoidance following brand crisis : a quasi-experiment on the effect of franchisor statements

Although franchising has become an important growth strategy in severalindustries over the last few decades, there are few empirical studies about the effects of franchisor communication strategy on customer responses in the context of franchise brand crisis. Two quasi-experimental studies were conducted to test the effect ofa franchisor ownership separation statement on brand trust and brand avoidance following a brand crisis situation. Results show that a franchisor’s explicit communication of the franchise brand’s individual ownership business structure is useful in preventing further negative spillover effect throughout the franchised chain when thebrand crisis occurs at a single franchise location. The authors also investigate the mechanism through which such communication influences customer behavior and the moderating effect of the brand crisis severity in affecting brand evaluation. These results offer guidance to franchise brand managers by providing insight into how to overcome a franchise brand crisis and by suggesting franchise context-specific managerial recommendations

Investment opportunities and leverage: some Australian evidence on the role of board monitoring and director equity ownership

This paper tests the hypothesis that the negative relationship between investment opportunity set (IOS) and debt is moderated by board monitoring and director equity ownership. According to contracting theory, firms with high growth opportunities (high IOS) are associated with lower levels of debt as a result of the asset substitution and the under-investment problem. However, our hypotheses test the conjecture that the negative debt / IOS relationship will be moderated by the proportion of non-executive directors (NEDs) on the board and director equity ownership. NEDs provide higher monitoring which reduces management discretion while director equity ownership provides incentives for managers to maximize the value of the firm. More specifically, we expect that high growth firms with a higher proportion of non-executive directors and director equity ownership are less likely to be associated with asset substitution and under investment. Thus, the negative investment opportunity set / debt relationship will be weaker for firms with higher levels of non-executive directors and high director equity ownership. Data collected from Australian companies support both these two hypotheses. Results have significant implications for corporate finance theory.

Trust and e-commerce: a study of consumer perceptions

Increasing use of the World Wide Web as a B2C commercial tool raises interest in understanding the key issues in building relationships with customers on the Internet. Trust is believed to be the key to these relationships. Given the differences between a virtual and a conventional marketplace, antecedents and consequences of trust merit re-examination. This research identifies a number of key factors related to trust in the B2C context and proposes a framework based on a series of underpinning relationships among these factors.

Interpersonal trust and formal controls in hierarchical relationships

This paper examines the influence of the level of interpersonal trust between superior and subordinate managers on the control behaviour of the former. On the basis of a questionnaire survey and interviews of senior managers from business organisations in Sri Lanka, and a survey of managers in Beijing-China the study explores the control behaviour of superior managers when their trust in a subordinate is high or low. Sri Lanka and China, societies in which the dependence on interpersonal trust is believed to be high, were chosen for the study to maximise the effect of interpersonal trust.

The findings of this study indicate that a superior’s high (low) trust in a subordinate is associated with a low (high) level of monitoring and a high (low) level of social interactions. The hypothesis that a superior’s high (low) level of trust is associated with a low (high) level of reliance on formal control was supported only in the Sri Lankan sample. These findings are at least indicative of control behaviour of superior managers in Sri Lanka and China and possibly of other countries in Asia. An understanding of the trust-sensitive control behaviour of managers in this region is particularly important for designing and implementing effective control systems for international organizations operating in the region.

Interpersonal trust and control behaviour of Chinese managers

Interpersonal trust is believed to influence the management and control of organisations in China. China's importance as a host country for foreign direct investments (FDIs) through multinational company subsidiaries (MNCs) and international joint ventures (IJVs) is growing rapidly. MNCs and INs located in China often employ local Chinese managers to control their subsidiaries or ventures. This makes it essential for designers of management control systems to have an understanding of the interpersonal trust-sensitive control behaviour of Chinese managers. One of the important aspects of control behaviour is how managers control their subordinates.

This paper examines the relationship between Chinese managers' trust in subordinates and their (Chinese managers') control behaviour towards the subordinates. On the basis of a questionnaire survey of a cohort of managers from Beijing, the study explores the effects of trust on the use of social controls, formal controls, and monitoring.

The findings of this study indicate that a manager's high (low) trust in a subordinate is associated with a low (high) level of monitoring, a high (high) level of social control and a high (low) level of perceived performance. The hypothesis that a superior's high (low) level of trust is associated with a low (high) level of reliance on formal controls was not supported. These findings, while indicative of control behaviour of Chinese managers in particular, also add to the growing academic literature on trust and control in general. In a practical sense, an
understanding of the trust-sensitive control behaviour of Chinese managers is particularly useful in designing and implementing effective control systems for international organisations operating in China.