The paradox of transparency : short-termism and the institutionalisation of Australian capital markets

As the ultimate corporate decision-makers, directors have an impact on the investment time horizons of the corporations they govern. How they make investment decisions has been profoundly influenced by the expansion of the investment chain and the increasing concentration of share ownership in institutional hands. By examining agency in light of legal theory, we highlight that the board is in fact sui generis and not an agent of shareholders. Consequently, transparency can lead to directors being 'captured' by institutional investor objectives and timeframes, potentially to the detriment of the corporation as a whole. The counter-intuitive conclusion is that transparency may, under certain conditions, undermine good corporate governance and lead to excessive short-termism.

The effect of national governance codes on firm disclosure practices : evidence from analyst earnings forecasts

This study examines whether voluntary national governance codes have a significant effect on company disclosure practices. Two direct effects of the codes are expected: 1) an overall improvement in company disclosure practices, which is greater when the codes have a greater emphasis on disclosure; and 2) a leveling out of disclosure practices across companies (i.e., larger improvements in companies that were previously poorer disclosers) due to the codes new comply-or-explain requirements. The codes are also expected to have an indirect effect on disclosure practices through their effect on company governance practices. The results show that the introduction of the codes in eight East Asian countries has been associated with lower analyst forecast error and a leveling out of disclosure practices across companies. The codes are also found to have an indirect effect on company disclosure practices through their effect on board independence. This study shows that a regulatory approach to improving disclosure practices is not always necessary. Voluntary national governance codes are found to have both a significant direct effect and a significant indirect effect on company disclosure practices. In addition, the results indicate that analysts in Asia do react to changes in disclosure practices, so there is an incentive for small companies and family-owned companies to further improve their disclosure practices.

Service staff attitudes, organisational practices and performance drivers

We provide conceptual and empirical insights elucidating how organizational practices influence service staff attitudes and behaviors and how the latter set affects organizational performance drivers. Our analyses suggest that service organizations can enhance their performance by putting in place strategies and practices that strengthen the service-oriented behaviors of their employees and reduce their intentions to leave the organization. Improved performance is accomplished through both the delivery of high quality services (enhancing organizational effectiveness) and the maintenance of frontline staff(increasing organizational efficiency). Specifically, service-oriented business strategies in the form of organizational-level service orientation and practices in the form of training directly influence the manifest service-oriented behaviors of staff. Training also indirectly affects the intention of frontline staff to leave the organization; it increases job satisfaction, which, in turn has an impact on affective commitment. Both affective and instrumental commitment were hypothesized to reduce the intentions of frontline staff to leave the organization, however only affective commitment had a significant effect.