An analysis of the timeliness and nature of profit warnings in the aftermath of the Global Financial Crisis

The global financial crisis (GFC) has severely impacted the financial position and performance of many companies internationally. Because of its severity and associated increase in uncertainty it challenges the effectiveness of existing disclosure regulation. Australia provides a unique environment in which to test the effects of the GFC on corporate disclosure because statutory rules mandate the timely disclosure of ‘price-sensitive’ information (ASX Rule 3.1) by listed entities. Exploiting this institutional setting we investigate the determinants and timeliness of profit warnings issued by the top 500 ASX-listed firms with profit declines in the 2009 fiscal year. Our findings show that firms behave differently with regard to the issuance of profit warnings: larger and more indebted firms are more likely to issue a profit warning and tend to be timelier; surprisingly, poorer performing firms tend to release the news more quickly and this might be attributed to an increasing threat of litigation. Our analysis of profit warning determinants shows interesting results with the presence of asset impairments hindering the early disclosure of profit warnings. Our findings are novel for two main reasons: first, we provide insights into the impact of global financial crisis on profit warning behaviour; second, we are the first to examine the differential impact of alternative features of profit warnings on disclosure timeliness. The findings have implications for regulators in determining compliance with continuous disclosure rules and more broadly, for market participants in interpreting profit warnings.

Financial Reserves : A Necessary Condition for Not-for-Profit Sustainability?

Should not-for-profit (NFP) organisations hold reserves to hedge uncertainty and protect mission delivery? This chapter outlines the nature and contxt of NFP reserves. many would accept that actors within NFP organisations have a broad accountability to ensure sustinability where an appropriate mission exists, and that sustinability is assisted or ensured through the purposeful accumulation of reserves. This chapter examins current relevant literature on reserves, reviews various approaches to reserves accumulation across jurisdictions and reports what is known about practice. We highlight the tension faced by NFP organisations, balancing mission spending against the need to hedge uncertainty. We investigate the role of reserves, and how an appropriate level is determined to ensure a NFP board's accountability for organisational sustinability. This issue is particularly significant in the period following the global financial crisis, and while practitioner interest is evident, there has been little academic attention paid to the topic of NFP reserves, and 'very few [articles] have even forcused on related topics' (Calabrese, 2011, p. 282).

Constraints and characteristics of flexible work arrangements in small not-for-profit firms

There is a great deal of research that examines flexible working arrangements, but this work tends to be concentrated in large organisations. This research examines the approach taken to flexible working arrangements in five small community based, not for profit organisations. We present three propositions that aim to understand the constraints and the characteristics of flexible work in this rarely studied sector.

Applying design-led innovation in a not-for-profit aged care provider to create shared value

This study examines the role of Design-Led Innovation in creating shared value; sustainable competitive advantage for an organisation and social value for the communities in which it operates. A case study analysed an undertaking by a not-for-profit aged care organisation to create a sustainable competitive advantage in the market by reinventing the experience of ageing and defining an innovative future business model. This paper reflects on the role of Design-Led Innovation in facilitating this change agenda and explores the particular relevance of the associated techniques in a not-for-profit, human services context. It was found that the Design-Led Innovation approach was effective in achieving the goal of defining a way for the organisation to create shared value.

Not so not-for-profit

To address the sub-theme of the journal: Artistic Practices in a Time of Crisis, the author discusses the context of economic cuts and recent international crises on his PhD interactive and visual design research project undertaken in Australia. Identifying an apparent root-cause of current global crises, the author in reply, has structured a research plan and created a suite of new media, interactive, technology artworks, and installation art. Notions of Zen Buddhism, and stillness through meditation, are applied in the research and context of the artworks to support awareness of wellbeing, in response to the root-cause condition. The discussion will focus on the overarching question: how can one obtain value through the arts during current times of economic reduction conditioning?

Using global formulary apportionment for international profit allocation: The case of Indonesia's mining industry

My thesis examined an alternative approach, referred to as the unitary taxation approach to the allocation of profit, which arises from the notion that as a multinational group exists as a single economic entity, it should be taxed as one taxable unit. The plausibility of a unitary taxation regime achieving international acceptance and agreement is highly contestable due to its implementation issues, and economic and political feasibility. Using a case-study approach focusing on Freeport-McMoRan and Rio Tinto's mining operations in Indonesia, this thesis compares both tax regimes against the criteria for a good tax system - equity, efficiency, neutrality and simplicity. This thesis evaluates key issues that arise when implementing a unitary taxation approach with formulary apportionment based on the context of mining multinational firms in Indonesia.

Exploring profit - Sustainability trade-offs in cropping systems using evolutionary algorithms

Models that implement the bio-physical components of agro-ecosystems are ideally suited for exploring sustainability issues in cropping systems. Sustainability may be represented as a number of objectives to be maximised or minimised. However, the full decision space of these objectives is usually very large and simplifications are necessary to safeguard computational feasibility. Different optimisation approaches have been proposed in the literature, usually based on mathematical programming techniques. Here, we present a search approach based on a multiobjective evaluation technique within an evolutionary algorithm (EA), linked to the APSIM cropping systems model. A simple case study addressing crop choice and sowing rules in North-East Australian cropping systems is used to illustrate the methodology. Sustainability of these systems is evaluated in terms of economic performance and resource use. Due to the limited size of this sample problem, the quality of the EA optimisation can be assessed by comparison to the full problem domain. Results demonstrate that the EA procedure, parameterised with generic parameters from the literature, converges to a useable solution set within a reasonable amount of time. Frontier ‘‘peels’’ or Pareto-optimal solutions as described by the multiobjective evaluation procedure provide useful information for discussion on trade-offs between conflicting objectives.

Probabilistic forecasts of the onset of the north Australian wet season

The amount and timing of early wet-season rainfall are important for the management of many agricultural industries in north Australia. With this in mind, a wet-season onset date is defined based on the accumulation of rainfall to a predefined threshold, starting from 1 September, for each square of a 1° gridded analysis of daily rainfall across the region. Consistent with earlier studies, the interannual variability of the onset dates is shown to be well related to the immediately preceding July-August Southern Oscillation index (SOI). Based on this relationship, a forecast method using logistic regression is developed to predict the probability that onset will occur later than the climatological mean date. This method is expanded to also predict the probabilities that onset will be later than any of a range of threshold dates around the climatological mean. When assessed using cross-validated hindcasts, the skill of the predictions exceeds that of climatological forecasts in the majority of locations in north Australia, especially in the Top End region, Cape York, and central Queensland. At times of strong anomalies in the July-August SOI, the forecasts are reliably emphatic. Furthermore, predictions using tropical Pacific sea surface temperatures (SSTs) as the predictor are also tested. While short-lead (July-August predictor) forecasts are more skillful using the SOI, long-lead (May-June predictor) forecasts are more skillful using Pacific SSTs, indicative of the longer-term memory present in the ocean.

How CBO Forecasts Income

[Excerpt] Because federal receipts are determined to a great extent by taxes collected on individual and business income, this background paper focuses on how CBO projects income earned by individuals and businesses. It concentrates primarily on CBO's methodology as it pertains to those categories of individual and business income that are encompassed within the framework of the national income and product accounts, or NIPAs (see Appendix A for explanations). Using that framework for projecting income helps to ensure consistency with CBO's projections of the overall economy.

Australian Prawn Farming Manual: Health Management for profit

The Manual is an easy to read guide for running a low disease risk prawn farm in Australia. Using the combined knowledge of Australia's leading scientists, prawn farmers, extensionists and prawn health specialists, this manual captures what is known about the diseases that threaten the Australian prawn farming industry and how the of disease outbreak can be minimised. Funded by ACIAR and developed in collaboration with the Australian Prawn Farmers' Association, the Queensland Department of Primary Industries and Fisheries and the New South Wales Department of Primary Industries, the manual draws on five years of research conducted across the Australiasia region. The contents reflect the knowledge of a wide array of internationally recognised researchers and the wisdom and research gained through the efforts of the Australian prawn farming industry.

Optimising growth paths of beef cattle in northern Australia for increased profit

Strategies for increasing growth of cattle using different growth paths.

Late Autumn Winter Spring strawberries for profit and consumer appeal

Improved cultivar.

Managing flexible work arrangements in small not-for-profit firms: The influence of organisational size, financial constraints and workforce characteristics

Small, not-for-profit organisations fulfil a need in the economy that is typically not satisfied by for-profit firms. They also operate in ways that are distinct from larger organisations. While such firms employ a substantial proportion of the workforce, research addressing human resource management (HRM) practices in these settings is limited. This article used data collected from five small not-for-profit firms in Australia to examine the way one significant HRM practice – the provision and utilisation of flexible work arrangements – operates in the sector. Drawing on research from several scholarly fields, the article firstly develops a framework comprising three tensions in not-for-profits that have implications for HRM. These tensions are: (1) contradictions between an informal approach to HRM vs. a formal regulatory system; (2) employee values that favour social justice vs. external market forces; and (3) a commitment to service vs. external financial expectations. The article then empirically examines how these tensions are managed in relation to the specific case of flexible work arrangements. The study reveals that tensions around providing and accessing flexible work arrangements are managed in three ways: discretion, leadership style and distancing. These findings more broadly inform the way HRM is operationalised in this under-examined sector.

G20 host Australia faces hard truths of multinational profit shifting

The G20 Finance Ministers have the opportunity this weekend to endorse the initial recommendations of the OECD on how to address the global problem of multinational tax avoidance. The work of the OECD on the issue to date is substantial. Most notable is the adoption by many nations, including Australia, of the Common Reporting Standard for the automatic exchange of tax information. This standard will allow significant inroads to be made into tax avoidance, particularly by individuals sheltering money offshore. This is the first step in an ambitious tax reform program. There is a long way to go if we are to end the issue now known as Base Erosion and Profit Shifting (BEPS). This week’s release of the first of the OECD recommendations contains some positive signs that further advances will be made. It also recognises some hard truths.