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.

Legal liability, government intervention, and auditor behavior : evidence from structural reform of audit firms in China

This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP), which removes the cap on the liability exposure of negligent auditors. By adopting this natural experiment, we document the following findings: first, after audit firms reorganize as LLPs, auditors are more likely to (1) issue modified audit opinions and going-concern opinions, (2) constrain clients’ earnings management, and (3) charge a premium in audit fees, which suggest that exerting unlimited legal liability on negligent auditors improves both audit quality and audit fees. Second, the effect of the LLP adoption is more pronounced when auditors are from local audit firms, and clients are controlled by local governments. Further analyses suggest that the stock prices of clients positively react to the reform event, which indicates that LLP adoption improves the overall value of audits. In summary, our empirical findings are consistent with the argument that legal liability is able to effectively shape auditor behavior in emerging markets where the other institutional mechanisms are relatively weaker and government intervention is heavy.

Preventing tobacco use and harm: what is evidence based policy?

The majority of tobacco users commence in early to mid-adolescence. Tobacco smoking can be characterised as a chronic, relapsing disorder. While risk increases with amount smoked, there is no safe level of use (i.e., all use is risky). Duration of use is the most important predictor of premature death with the majority of excess morbidity and mortality avoidable if people quit before middle age. Investment in initiatives that reduce smoking among pregnant women and those at risk of cardiovascular disease provide quickest returns -in reduced health care episodes and expenditure.  Measures that successfully reduce smoking among parents probably reduce smoking uptake by children, and high levels of smoking among both children and parents appear to be associated with higher levels of illicit drug use.
The evidence base for pharmcotherapies in the treatment of tobacco dependence is very strong. Population-level initiatives such as tax increases, mass media-led campaigns and smoke-free policies are all highly cost-effective in reducing population-smoking levels, including among children and young people.
Australian tobacco control initiatives have been based on "social ecology" conceptualisations of the problem, which acknowledge the pivotal role of the media in shaping social values, and public and political opinion.
Broad social change, as well as more focused prevention and cessation initiatives, has drawn heavily on research findings from the behavioural sciences. Considerable effort (mainly, in Australian, in the NGO sector) has gone into documenting policy inputs and monitoring impact and outcome measures.
This chapter discusses why conceptualising tobacco-related harm from legal, economic and social policy perspectives should also help build support for tobacco control policy among academic and practising economists and lawyers, and in the business, welfare and government sectors.

Dimensions of evidence, the public understanding of science and science education

This paper explores the nature and type of evidence employed by participants in an issue of public concern. By examining documents and interviewing members of the public involved in the debate, the way in which evidence was used in the arguments for and against the issue was determined. Three dimensions of evidence emerged from the data: formal scientific evidence based on the data; informal evidence (e.g. common sense, personal experience) and wider issues which impinge on the evidence (e.g. environmental or legal concerns). In this particular controversy, it was the questioning of the formal evidence by local scientists which became the 'magic bullet' but pertinent questioning by local nonscientists also framed the debate. The authors suggest that school science curricula should include practice in questioning and manipulating different sorts of real data in a variety of ways so that pupils are equipped and empowered to tackle contemporary issues of this kind.

Technical efficiency in Australian textile and clothing firms: evidence from the business longitudinal survey

This paper estimates technical efficiency of Australian textile and clothing firms based on the data obtained from the Business Longitudinal Survey (BLS) conducted by the Australian Bureau of Statistics (ABS). Using a Cobb Douglas stochastic production frontier the paper examines firm level technical efficiency in the time varying inefficiency effect model with technical inefficiency effects assumed as an independently distributed truncated normal variable. Estimates of the production frontier revealed significant but small elasticities of labour and capital for textile and clothing firms, respectively, and a negative (but insignificant) Hicks neutral technical change for both. Estimated coefficients of the explanatory variables for inefficiency effects indicated that technical efficiency varied significantly according to firms’ age, size, capital intensity, proportion of non-production to total workers and type of legal status. Predicted firm specific efficiency varied from 16 per cent to 95 per cent and mean efficiency ranged between 30 to 70 per cent. In view of these results policies have been suggested to improve technical efficiency of the firms as well as productivity growth of the sub sectors.

Police officers' and legal professionals' perceptions regarding how children are, and should be, questioned about repeated abuse

This study explored the perceptions of police officers and legal professionals (i.e., prosecutors, defence lawyers and a judge) about (a) what particularisation is, (b) the type of information that is required for particularisation to occur, and (c) how particularisation is best achieved in cases of repeated child abuse. The professionals' perceptions (all experts in this area) were elicited via individual in-depth semi-structured interviews. While all participants acknowledged the importance of particularisation, the views of the police officers varied in several important ways to those of the other professionals. Overall, the police officers perceived that highly specific details (such as the location, date and time of the offence) are essential for particularisation to occur, and that maximising the number of separate offences and specific details about each offence increases the chance of successful prosecution. In contrast, the legal professionals perceived that the primacy goal of the police officers should be to elicit a free-narrative account of one or more offences. A high proportion of specific questions was perceived to negatively impact on the child's credibility by contaminating the evidence. The implications of these findings are discussed.

Defining corporate citizenship : evidence from Australia

This study reports the results of a survey of the attitudes to corporate citizenship and practices of corporate citizenship of 93 of the largest private and publicly listed corporations in Australia. The results suggest there was considerable hesitation in positioning corporate citizenship as a proactive, long term, internal culture process. Instead, corporate emphasis was generally on short-term community activities. Also, there was little variation in these results when respondents were classified by industry, international involvement and legal structure. Clearly, significant links have yet to be made by corporate Australia to connect the financial, social and environmental bottom lines.

Issues in the implementation of cross-cultural management in Australia-evidence from a study of selected public and private sector organisations

This study examines the current status of cross-cultural management (CCM) in Australia.

The study is based on Reyes' (2004) Ph.D research of a qualitative nature in five organisations in the public and private sectors selected from a sample of organisations which appear to lead the field in Australia in respect of CCM. Literature is also surveyed to present a picture of the current legal and institutional setting of CCM in Australia and provide a context for the study.

Analysis of the findings highlights the gap between cross-cultural rhetoric and action in workplace situations. Problems are identified leading to incomplete and inadequate implementation of CCM in the respondent organisations. The study argues for the need for management to take a systems approach to the formulation and implementation of CCM. Some suggestions are made for improvements in the future.

Legal relations of collectives : belated insights from Hohfeld

Collectives and their interrelations are central to international law. Legal relations between collectives can be analysed with reference to the classic account of Hohfeld without reducing those collectives to mere aggregates of individuals and without recourse to the legal fiction of treating the collective, for example the state, as a quasi-individual. The rights of collectives have been widely if not conclusively explored within international law, but Hohfeld’s ‘field’ approach to legal relations enables the scrutiny of the range of relations, including immunities, liberties, powers, and disabilities, as well as claim-rights and the corresponding obligations in others. The main substantive topics for discussion are the legal relations of collective entities such as peoples and minorities, and closely related matters such as self-determination. Applying Hohfeldian analysis to international law highlights the centrality of international collective entities of which the state represents only one variety. The approach described here therefore takes account of the dethroning of the state within contemporary international law and contributes to the theorization of that development. Nearly one hundred years after its
first appearance, Hohfeld’s analytic scheme continues to generate insights for international law.

Australian legal regime on animal based bio-medical research

This thesis, by using evaluative criteria based on overseas law, scientific evidence, philosophy and ethics, concluded that the Australian legal regime regarding animal based bio-medical research for human benefit only partly met one of that regime's major objectives of adequately protecting research animals during the entire research process.

Cross-cultural assumptions about perception and identity in western socio-legal frameworks

Socio-legal analysis has relied heavily on Mnookin and Kornhauser's "bargaining in the shadow of the law" and Galanter's "litigotiation" concepts. These concepts provide a framework for examining the relationship between formal legal rules and other normative sources in out-of-court activity. In this paper we explore the extent to which these frameworks' Western assumptions about individualism, conflict and the rule of law would require adaptation if they were to be used to examine such phenomena in Chinese culture or in Australian-Chinese negotiations. In particular, we focus on the "difference" between: i) China and Confucian culture; and ii) Western society in terms of the Confucian principles relating to hierarchy, harmony, collectivism and face. These principles have fundamental implications for Chinese perceptions of appropriate dispute resolution behaviour. Western researchers who omit consideration of these perceptions and neglect the defining characteristics of Chinese identity will emerge with flawed projects.

Cross-cultural issues in the supervision of a Chinese socio-legal PhD student

The purpose of this co-authored paper is to explain how culturally specific features of Chinese students impact on the processes by which they commence their socio-legal research degrees by research candidature. The presentation by the co-authors of the paper will include a simulation of the first meeting between the candidate and the supervisor. This simulation will show how specific features of Chinese culture and the Chinese education system create a massive culture shock when Chinese research students are exposed to Anglo-Australian academic culture. We will explain how the underlying principles of Chinese culture impact on the candidate‘s expectations in relation to: the role of the supervisor; the requirement of original contribution; expectations in feedback on written work and communication more generally . We will then propose strategies for reducing the impact of culture shock and improving the experience of the candidature and the performance from each party to the relationship in terms of timely completions and reduced attrition. These strategies derive from the authors‘ experience in relation to doctoral research management and cross-cultural communication.