Wealth holdings and portfolio allocation of the elderly : the role of marital history

This paper investigates the role of marital history in terms of explaining differences in wealth holdings and portfolio allocation of older individuals by studying data from the first wave of Health and Retirement Study which was conducted in 1992. The results generally suggest that both men and women suffer from the negative shocks of past marital dissolutions in terms of household wealth accumulation. The significance level, however, differs across currently married couples, single males, and single females. The examination of the asset components of net worth also indicates that both the probability of owning a particular asset and the fraction of wealth allocated to that asset might vary depending on the elderly individuals’ marital history.

Cash holdings and bond returns around takeovers

Using a large sample of 2712 unique U.S. domestic takeovers over the period 1993 to 2014, we show a negative relation between the level of cash holdings and post-announcement corporate bond returns. Our findings support the agency cost of cash holdings view and show that bondholders and shareholders share the same interests with respect to cash policy around takeovers. We further find that cash holdings are viewed less negatively by bondholders in firms with strong shareholders. This paper is the first to document the role of cash holdings on bondholder wealth around takeover announcements.

The effect of financial constraints, investment policy, product market competition and corporate governance on the value of cash holdings

This study empirically investigates the value shareholders place on excess cash holdings and how shareholders’ valuation of cash holdings is associated with financial constraints, firm growth, cash-flow uncertainty and product market competition for Australian firms from 1990 to 2007. Our results indicate that the marginal value of cash holdings to shareholders declines with larger cash holdings and higher leverage. However, firms that are more financially constrained, that have higher growth rates and that face greater uncertainty exhibit a higher marginal value of cash holdings. These findings are consistent with the explanation that excess cash holdings are not necessarily detrimental to firm value. Firms with costly external financing and that also save more cash for current operating and future investing needs find that the market values these cash hoarding policies favourably. Finally, there is limited evidence of an association between various corporate governance measures and the value of cash holdings for a shorter sample period.

Thinking through things: Patrick Pound and the Flinders University art museum collections

Patrick Pound is known for his singular approach to art production: compiling, collecting, combining and captioning things in ways that challenge the orthodoxy of museums and their taxonomies. Working with public holdings and his own esoteric compendia of ‘stuff’, Pound uses self-devised cues to give shape, form and meaning to his exhibits. Pound makes his debut in Adelaide with Flinders University Art Museum, mining the 6,500 works in our care to make unexpected and unprecedented connections

Scholarly journal output : a regional perspective

This paper presents the findings of an investigation designed to reveal the destination of the refereed journal research output of accounting and finance faculty members across their entire academic careers. A geographic approach was adopted with the intention of providing a historical data-set to inform the development of a region-centric model of academic research productivity. The study focuses on publication careers of accounting and finance academics from one particular geographic region, New Zealand. The data were collected through a detailed examination of electronic databases of journal holdings and research reports of tertiary institutions. The results of this study provide evidence that, across their careers, New Zealand's academics have published a significant number of papers in journals located in two regions, Australia-New Zealand and the United Kingdom, and that this academic community has attained publication success in international journals generally regarded as high quality.

Caste, land and livestock holdings in India: an analysis

A ban on grazing, particularly by small ruminants, forms an important component of the Forest Policy and Joint Forest Management arrangements in India. Some caste groups keep larger number of small ruminants than the others. It is considered as a social trait that is sought to be corrected through extension efforts. This paper analyses the livestock structure of households by using a model of household behaviour based on profit maximisation. It shows that landholding plays a crucial role in livestock structure of households and because certain caste groups have smaller landholding they tend to keep small ruminants that can feed on the common lands and forest areas. The policy of a ban or restriction on grazing adversely affects such caste groups who therefore come to resent it.

Family control and corporate cash holdings: Evidence from China

This study examines the effect of family control on the cash holding policy in China. We find that family firms with excess control rights tend to have high cash holdings that are tunneled rather than being invested or paid to shareholders. We further show that the incentive for controlling families to hold cash and for tunneling is exacerbated by the agency conflict between controlling and minority shareholders, i.e., it is weakened after the Chinese Non-tradable share (NTS) reform and strengthened by the presence of multiple large shareholders who probably play no monitoring role in Chinese family firms. Furthermore, family firms’ incentive to hold cash for tunneling is influenced by the unique characteristics of Chinese firms in the following ways: the incentive is stronger when the family founder has one child and face family succession problem, and when the founder has political connections and directly involves in firm’s management; while it is weakened by family founder’s social interpersonal trust with other entrepreneurs through their membership of Chambers of Commerce. Overall, we argue that family firms in China tend to hold high levels of cash for tunneling, which harms firm value, while the severe controlling-minority shareholder agency conflicts and unique Chinese family characteristics only make this situation worse.

Globalisation and manufacturing strategy in the TCF industry

Purpose – The textiles, clothing, and footwear (TCF) industry has struggled in Australia since the government commenced dismantling tariffs. By sourcing from Asia, middlemen undercut established suppliers, and retail chains set benchmark low prices with their imported “house” labels. The policy-makers predicted that local producers would become more efficient, and export to make up for lost sales, but the media paints a picture of rising imports, retrenchments, and factory closures. The research objective was to discover what strategies the survivors (actually) employ in adapting to the pressures of globalisation.

Design/methodology/approach – More than 30 companies were involved in the study, ranging from small family businesses to subsidiaries of big multinationals. Each case study was based on an interview with a senior executive, normally followed by a plant tour. This methodology suits a fresh topic, as it avoids preconceptions and imposes no bounds.

Findings – Results show that the policy change was based on “pie in the sky” forecasts. Increasingly, TCF production is transferred to cheap offshore locations, generally via subcontracting plus the “badging” of foreign designs. To survive, local factories should focus on quality and customer service, preferably in niche markets (like uniforms), or for specific customer groups, and develop technologically advanced products. A move down the supply chain into retailing can also assist. Large multinational corporations that engage in foreign direct investment dominate the management literature.

Originality/value – This paper presents a different perspective, neglected in international operations management, whereby domestically oriented businesses attempt to defend themselves against the adverse consequences of globalisation.

Micro-credit programs and land distribution: a note

"Micro-credit" has come to refer to a popular extension strategy---usually in the agricultural sector---whereby a government or NGO extends credit at favorable rates to poorer borrowers, with repayment being supported by some kind of mortgage on the borrower's social capital. In the commonest case, eligibility is determined by the borrower's wealth, as indexed by his/her landholding. This note shows that, with an imperfect land market, the response to such a program will be to fragment landholdings which are smaller than a certain threshold, while larger holdings remain unaffected. Thus the pattern of landholding will tend to become more polarized.

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.

Interpersonal trust and formal controls in low systemic trust societies

This study is concerned with the role of interpersonal trust in management control. On the basis of a questionnaire survey and interviews of senior managers from business organisations in sri lanka, the study explores the control behaviour of superior managers when they trust or distrust their subordinates. Sri lanka, a society in which the dependence on interpersonal trust is high, was chosen for the study to maximise the effect of interpersonal trust.

The findings of this study indicate that a superior's high trust in a subordinate is associated with a low level of monitoring, a high level of social interactions, and a low reliance on formal controls. In contrast, a superior's low level of trust in a subordinate is associated with a high level of monitoring, a low level of social interactions, and a high reliance on formal controls. Because the data emanate from experienced senior managers, these findings are at least indicative of control behaviour of superior managers in sri lanka and possibly of similar countries in asia. An understanding of the control behaviour of managers in this region is particularly important for designing and implementing effective controls systems for firms, subsidiaries, branches or joint-ventures operating in the region.

External monitoring, managerial ownership and form performance in Malaysian capital market: a GMM based panel data approach

This study re-examines whether the structure of share ownership by both directors and institutional ownership provides explanation for firm performances. These relationships are modelled and estimated using GMM based dynamic panel data over a period from 1997 to 2001 with a sample of 100 CI components companies listed on Main Board of Malaysia. The findings provide strong evidence of simultaneity between firm performance and managerial ownership. Although an insignificant relationship between firm performance and institutional ownership is~ observed, the institutional holdings provide strong substitute for managerial ownership with a strong negative relationship between managerial ownership and institutional ownership. This is in line with the managerial incentive hypothesis, which suggests that manager's share in the firm's ownership leads to better performance and the monitoring substitute hypothesis, which suggests that managerial ownership could be effectively replaced by institutional ownership.

Recruitment and retention of ICT skills among MNCs in Taiwan

Purpose – The existing research on multinational companies (MNCs) tends to emphasise the diffusion of knowledge and skills in information, communication and technology (ICT) from the more advanced industrialised nations to less-developed or latecomer countries. Few studies have examined the ICT work force supply and development of local ICT skills among MNCs' overseas subsidiaries. This paper aims to fill the gap by evaluating the issues relating to the host country's ICT work force planning and supply and the recruitment and retention of ICT skills among MNCs at their local subsidiary.

Design/methodology/approach – A survey of 100 MNCs in Taiwan, Republic of China was used for analysis. The self-administered questionnaire was designed to examine the extent of difficulty experienced by MNCs in recruiting high, medium and low levels of ICT skills in the manufacturing and service sector. Attrition rate of the ICT skilled workers in Taiwan was also examined.

Findings – The results suggest some degree of ICT skill deficiency at the firm level, despite many efforts attempted by the Taiwanese government to develop and supply ICT skills at the national level. A gap between national advancement in technology and firm level of skills deficiency exists. These findings lead to consideration of a better alignment in providing local government support programs to meet MNCs specific skill requirements.

Originality/value – The study provides some insights especially for the emerging economy of China, which tends to heavily impose government intervention in developing strategic industries.