Exploring the moderating role of growth options on the relation between board characteristics and management earnings forecasts

Manuscript Type
Empirical
Research Question/Issue
This study examines whether director independence, reputation, and financial expertise are related to management earnings forecast (MEF) activity. In particular, we examine whether such a relationship is moderated by firms’ growth options.
Research Findings/Insights
Using Australian archival data for 1,928 firm-years between 1999 and 2006, we find several board characteristics have a significant positive relationship with: (1) the likelihood of firms issuing MEFs; (2) their specificity; (3) their accuracy; and (4) a negative relationship with their bias. For (1), (2), and (3) we show that these relationships are accentuated for firms with high growth options.
Theoretical/Academic Implications
While the theory of voluntary disclosure suggests firms will disclose information that is favorable to them or their managers, well-governed firms issue informative MEFs that potentially reduce information asymmetries in capital markets. We extend the prior literature by showing that such a relation is enhanced in the presence of information asymmetry and moral hazard associated with growth options.
Practitioner/Policy Implications
Our results have strategic implications for nomination committees by showing that independent directors and those with strong reputations and financial expertise enhance the governance of high growth firms. We also inform the regulatory debate by showing that good corporate governance enhancing disclosure quality is context-specific – it is not a case of “one size fits all”.

Information disclosure and corporate governance in listed companies in China: from Yinguangxia to Enron

China's path to the development of a modern securities market has not been a smooth one. This article argues that efforts to impose Western securities market models on China have been fraught with difficulty. This is especially clear from the adoption of information disclosure principles and practices. While the integrity of disclosure practices is a fundamental element in maintaining investors' confidence in securities markets, disclosure practices need to be attuned to China '5 systemic features, especially in regard to its legal structure and rules. Market failures, such as the collapse of Enron in the United States, have led to a realisation that US disclosure models have their own difficulties and that these should not be uncritically used. This article reviews recent Chinese law andpractice (using the Yinguangxia false disclosure scandal as an example) in this area and calls for the adoption of a more critical approach towards the use of Western models with particular regard to China's own distinctive pathways of reform.

WikiLeaks and Information Disclosure: The Bradley Manning Case

We live in an age where information is a fluid resource, shared across the globe in real time. A continued concern is whether all infmmation, including sensitive information should be disclosed to a global audience. This issue has been brought to prominence because of groups such as WikiLeaks who believe that information protected by governments should be made available (often via whistleblowers) to the general public through sites such as theirs in order to promote open government and transparency.

This paper will focus on the issue of information disclosure and whistleblowing. In particular the paper will centre on the case of Bradley Manning and his disclosure of sensitive militmy information to WikiLeaks and the related events and subsequent effects on our global digital environment.

Evaluating Australian social media policies in relation to the issue of information disclosure

Information disclosure is a key concern for many organisations especially in the era of social media. Social media allows for information disclosure to occur easily due to the ubiquitous usage of technology such as mobile devices. Acceptable social media policies can be used by organisations and their employees to improve their decision making behaviours as well as being used as a controlling mechanism to mitigate the issue of information disclosure. Through a review of related research literature along with a content analysis of publicly available Australian social media policies, this paper identifies a perceived gap pertaining to the issue of information disclosure in current Australian social media use policies. To fill this gap, we have highlighted the key components when developing an organisational social media policy. An evaluation criteria is also proposed by the paper that organisations can use to assist in mitigating the information disclosure.

Understanding the management of doctoral studies in Australia as risk management

This paper discusses and analyses theoretical explanations of risk and risk management in terms of the management of doctoral studies. It deals with the ways in which Government policy, together with contemporary approaches to the bureaucratisation of risk management and the development and imposition of rationalities of risk, are shaping the practices of universities concerning the selection, supervision, support and assessment of doctoral candidates. In particular, the impact of the Research Training Scheme on doctoral studies is discussed as a particular context in which the institutionalisation of risk management occurs.

The multifaceted and ever-changing directions of information security - Australia get ready!

In recent years, we have witnessed many information security developmental trends. As a consequence, the dimensions of information security - once single disciplinary area - have become multifaceted and convoluted. This paper aims to (1) recapitulate these key developments: (2) argue that the emergence of many complex information security dimensions are the result of 'constant change agents' (CCAs); (3) discuss the implications on Australia's society, i. e. government, companies and individuals; and (4) propose key consideration areas and possible solutions thereof. We hope that the discussion presented here will position Australia to make better aligned information security and strategic plans, such as choosing appropriate investments and adopting effective solutions to strengthen and secure Australia's national information security posture.

Ecological and human dimensions of management of feral horses in Australia: a review

In Australia, the management of feral horse populations is a contentious issue, owing to their pluralistic status as an introduced pest and a national icon. In this review, we synthesise current knowledge of the ecological effects of feral horses and the human dimensions of feral horse management, using case studies from around the world to illustrate contentious and successful management practices. We highlight gaps in the literature and suggest that more peer-reviewed research would be beneficial in reducing the current public controversy surrounding management of feral horses.

Place-based knowledge networks : the case of water management in South-West Victoria, Australia

This article aims to investigate the need for effective exchanges between knowledge generators and knowledge users in water management. Firstly, we explore the use of adaptive management for water governance and then outline the communication issues of water-management knowledge at a regional scale. Central to this approach is the need to harness 'local' knowledge that can be used to develop community participation in local water governance. Accordingly, we propose a three-network communication model to illustrate the process and identify the issues of concern for developing place-based strategies. Since research plays a central role in knowledge generation, one of the first ways to proceed is to recognise local research and incorporate it into an inclusive decision-making process. One way to achieve this is through the development of regional networks that are openly available to all, and we explore this by focusing on the place of 'network thinking' at local scale using a newly developed regional network for local knowledge dissemination in south-west Victoria, Australia. We conclude that so far this new network is too heavily reliant upon one web-based tool and outline a broader range of strategies that can be used to achieve its aims.

Management of lipids in rural Australia : are the guidelines being followed?

Background: Hypercholesterolaemia is ranked seventh among the major factors contributing to the overall burden of disease in Australia. Guidelines for evidence-based lipid management were released in 2001 and updated in 2005, however little population level data has been published on the current gap between recommended management and actual practice in Australia.

Method: Three population stratified surveys were undertaken in the Greater Green Triangle. Three thousand three hundred and twenty adults aged 25–74 years were randomly selected, stratified by gender and 10-year age groups. Anthropometric, clinical and self-administered questionnaire data relating to cardiovascular disease risk were collected in accordance with the WHO MONICA protocol. Blood samples were collected for lipid profile analysis. Participants were divided into four groups—Group 1: treated, high CVD risk; Group 2: treated, primary prevention; Group 3: untreated, high CVD risk; Group 4: untreated, low CVD risk. For each of these groups we compared cholesterol, HDL cholesterol, triglyceride and LDL cholesterol with targets recommended by the National Heart Foundation's 2005 guidelines.

Results: All lipids were at target in 39.4% of the study population with marked differences between groups: Group 1, 11.2%; Group 2, 38.5%; Group 3, 1.8%; Group 4, 47.6%.

Only 50.8% of the untreated high CVD risk group reported having blood cholesterol measured within the last 12 months.

Conclusion: Current rates of detection and treatment practices in rural Australia are suboptimal. Although one-third of the study population age 25–74 years are at sufficiently high risk to warrant consideration of lipid lowering medication only just over half of these were on treatment at the time of the study. These results suggest that an intensive implementation plan is required for the management of hyperlipidaemia in rural Australia.

Development of a universal approach to estuarine planning and management, with special reference to Australia

The study develops a universal management framework for estuaries. Based on the identified problems, policy makers' inputs and characteristics of effective management models, the study proposes a universal planning and management framework, which consists of four elements. On the basis of the elements the study outlines a detailed planning and management framework for estuaries.

Controlling and developing native people : anthropology, government and the management of indigenous peoples in Australia and its territories 1920 to 1950

Examines the relationship between anthropology and native administration in the Australian territories of Papua and New Guinea and the Northwest of Australia between 1920 and 1950. Is is argued that anthropology needed colonialism rather than colonialism needing anthropology.

Integrating knowledge systems in local coastal management; the case of an estuary entrance management support system (EEMSS) in Australia

The management of social, economic, and ecological assets in coastal zones is fundamental to the maintenance and sustainability of coastal resources. A significant issue in this discussion is the role of governance structures. In Australia the governance of the coastal zone includes a range of institutional authorities, processes, and procedures that set the context for decision making about coastal management. As well as the formal institutional arrangements there is also a maze of other interests such as development commissions, NGOs, Indigenous Native Title holders and other stakeholders including recreational interests. A major issue for governance arrangements is the considerable gap that often exists between how those interests interpret and develop their positions especially when the knowledge is derived from different systems – scientific, managerial, lay and indigenous. This paper will explore the development of an Estuary Entrance Management Support System (EEMSS) in south west Victoria Australia. The EEMSS is a decision support tool to assist estuary managers in determining whether to artificially open a river mouth. A significant part of the process adopted was community participation which involved a ‘steps’ approach to engage local community groups and landholders. It is the process of engaging different knowledge systems in a meaningful conversation that has led to a system that now gains support from all of the stakeholders in the management of different estuaries. The paper will discuss the processes that surround the EEMSS and outline some lessons that arise in context of the ‘project state’.

Attitudinal and behavioural approaches to improving waste management on construction projects in Australia: Benefits and limitations

This research aims to understand the attitudes and behaviours of stakeholders towards waste management and consequently identify ways of improving waste management practices in construction projects. Semi-structured interviews were conducted. The findings reveal that most of the decisions in construction projects are based on their financial returns unless there is a special requirement to comply with Green Star or any other sustainable building rating system. Even though there is a trend towards environment-friendly construction, contractors are favourable towards methods involving financial incentives. Results also indicate that private developers are more price-driven compared with government clients. Findings reveal the necessity of enforcing legislation to improve waste management practices until such practices become culturally embedded in organizations across the supply chain. Similarly, end users' motivation towards waste management was also identified as a key to encouraging stakeholders of construction projects and improving their attitudes and behaviours towards waste management practices.

Problem gambling among international and domestic university students in Australia : who is at risk?

Young people are a high risk group for gambling problems and university (college) students fall into that category. Given the high accessibility of gambling in Australia and its association with entertainment, students from overseas countries, particularly those where gambling is restricted or illegal, may be particularly vulnerable. This study examines problem gambling and its correlates among international and domestic university students using a sample of 836 domestic students (286 males; 546 females); and 764 international students (369 males; 396 females) at three Australian universities. Our findings indicate that although most students gamble infrequently, around 5 % of students are problem gamblers, a proportion higher than that in the general adult population. Popular gambling choices include games known to be associated with risk (cards, horse races, sports betting, casino games, and gaming machines) as well as lotto/scratch tickets. Males are more likely to be problem gamblers than females, and almost 10 % of male international students could be classified as problem gamblers. Hierarchical regression analysis showed that male gender, international student status, financial stress, negative affect and frequency of gambling on sports, horses/dogs, table games, casino gaming machines, internet casino games and bingo all significantly predicted problem gambling. Results from this study could inform gambling-education programs in universities as they indicate which groups are more vulnerable and specify which games pose more risk of problem gambling.