Stakeholder representation on the boards of Australian initial public offerings

This paper analyses the board composition of Australian initial public offerings (IPOs) over the period 1994 to 1997. The recent management literature identifies a wide range of stakeholders beyond the traditional shareholders. Evan and Freeman, and Jones and Goldberg suggest that the importance of stakeholders should be reflected in board representation. Luoma and Goodstein provide evidence of increased stakeholder representation on the boards of American companies. This paper studies Australian IPOs and finds that this is not the case. This suggests that capital raising by new lists in the Australian equity market does not require stakeholder representation on the board.

The costs of raising equity capital by Australian property trust initial public offerings

This paper reports some of the direct costs of raising equity capital by property trust initial public offerings (IPOs) in Australia from 1994 to 2004. It also documents the amount of underpricing by these IPOs. The results indicate the average fees paid to underwriters and/or stockbrokers in managing and marketing the issue was around 3.3% of the public equity capital raised. The average fees paid to legal firms, accounting firms and valuers for their professional involvement and expert reports were 0.4%, 0.2% and 0.1% respectively, totaling 0.7% of the equity raised. Other fees such as printing, listing fees, postage, distribution and advertising cost around 2.1%. The total average direct costs amounted to around 6.1% of the proceeds raised. The average underpricing by these property trust IPOs was 2.6%. This paper also investigates the hypotheses that the percentage direct capital raising costs are influenced by the size of the IPO and whether the IPO is underwritten. This study confirms that larger property trust equity capital raisings have lower percentage total direct cost;, however, it does not find that underwriting significantly influences the percentage of total direct costs for these property trust IPOs.

Southeast Asian perceptions of Australia's foreign policy

This article argues that while the US alliance remains at the forefront of Australian security policy, the deepening of ties between the United States and Australia has the potential to complicate Australia's relations with its Southeast asian neighbours. Moreover, the manner in which the Howard government has attempted to manage this shift in policy has only exacerbated the problem. Australian pronouncements of support for the US policy of pre-emption, the perceived preference of the Australian Prime Minister to take on the role of ‘Deputy Sheriff’, and the unwieldy approach taken by the Australian government in policy announcements pertaining to maritime and security policy have caused unnecessary tension and mistrust between Australia and some Southeast asian states.

Going public : a decade of Australian autobiography

Autobiography is based on a paradox. It is a generic representation of identity, but identity and genre appear to be antithetical. If we conventionally think of our identity as unique (singular, autonomous and self-made), how then can the presentation of that identity be generic? How, when narrating our lives, can we be both singular and understandable? Does narrating a life presuppose a way of writing (that is, a genre) that will make it recognisable as a story of a life? And how individual can we be, given that we are social animals? We live in families, form attachments and belong to institutions. How much is identity a case of identifying with others?

Can the use of foreign currency derivatives explain variations in foreign exchange exposure? Evidence from Australian companies

We investigate the role of foreign currency derivatives (FCD) in alleviating foreign exchange rate exposure of Australian firms. While there is some evidence that the use of FCD reduces the level of ex-post short-term exposure, such an effect is absent with regard to the degree of foreign operations. Our results support the view that FCDs are used to hedge existing exchange rate exposures and that Australian firms, generally, are extensively exposed to currency fluctuations in the long run. While monthly exposure appears to be a function of a firm's size and financial hedging, exchange rate exposure of shorter horizons (1 and 3 months) appears to be negatively related to a firm's price earnings ratio (proxying growth opportunities)—thereby supporting the ‘underinvestment’ hypothesis. Further, the exposure of longer horizons (12 and 24 months) is positively related to a firm's liquidity, supporting the view that liquidity is a substitute for hedging.

A comparative analysis of personal values of international postgraduate students from Asia studying in Australian universities: a cross cultural study

The rising expectations of university students with regard to quality, service and value for money, and the growing diversity of student populations have challenged universities to become increasingly student focused. Marketing theory suggests that a clear understanding of customer needs and expectations is central to being customer focused and to facilitate targeting of products and services to appropriate segments. The process requires the marketer to have insights into the cultural backgrounds of customers where the study of personal values becomes a critical component in understanding consumer needs and preferences. The results of this study indicate that personal values are useful in explaining differences amongst the student cohorts with regard to age, gender and nationality. Recommendations are made with regard to developing the educational product for the international student, based on underlying value domains of Self-efficacy and Hedonism.

Career progression, human capital and pay equity in Australian public sector labour markets

This study uses data from the Victorian Public Sector Census 2004 to identify the extent of equity in pay and career progression (promotion). A system of three equations is developed to capture the endogeneity between human capital and promotion and the interdependence between promotion, pay and human capital. The results indicate that there are substantial differences in the average wages earned by public sector employees in different Equal Employment Opportunity (EEO) groups. While some of these differences arise from factors beyond the control of the public sector employers, others arise from bias in the public sector employment system and procedures. The earnings of individual employees in the public sector are determined in a systematic way by the wage structures in the different sub-sectors, the skill base of the employee on recruitment, sub-sector specific promotion rates, acquisition of formal and informal training and the apparent bias within recruitment and promotion systems in dealing with particular groups. The apparent bias of recruitment and promotion systems is complex in makeup and varies within EEO groups as well as between EEO groups. Most of the difference in pay across employees can be explained as an outcome of individual choice and labour market conditions external to the public sector. After adjusting for sectoral wage differences, skill base when recruited, sectoral promotion rate differences, experience in the public sector, whether individuals are employed on a full-time or part-time basis and individual training decisions, the statistical evidence is consistent with the finding that public sector recruitment and promotion systems tends to be biased, on average, against females and those from culturally diverse backgrounds. Achievements in formal education are important for salary progression. This is particularly the case for women. The main drivers of participation in formal education were employer support in both financial and non-financial terms. Promotion rates were important factors in explaining wage differences. Women tended to receive slightly fewer promotions than men, but women received, on average, greater rewards for each promotion.

Gardner; re BWW: Victorian Supreme Court makes landmark Australian ruling on tube feeding

• The Victorian Supreme Court has decided that artificial nutrition and hydration provided through a percutaneous gastrostomy tube to a woman in a persistent vegetative state may be withdrawn.
• The judge ruled, in line with a substantial body of international medical, ethical and legal opinion, that any form of artificial nutrition and hydration is a medical procedure, not part of palliative care, and that it is a procedure to sustain life, not to manage the dying process.
• Thus, the law does not impose a rigid obligation to administer artificial nutrition or hydration to people who are dying, without due regard to their clinical condition. The definition of key terms such as “medical treatment”, “palliative care”, and “reasonable provision of food and water” in this case will serve as guidance for end-of-life decisions in other states and territories.
• The case also reiterates the right of patients, and, when incompetent, their validly appointed agents or guardians, to refuse medical treatment.
• Where an incompetent patient has not executed a binding advance directive and no agent or guardian has been appointed, physicians, in consultation with the family, may decide to withdraw medical treatment, including artificial nutrition or hydration, on the basis that continuation of treatment is inappropriate and not in the patient’s best interests. However, Victoria and other jurisdictions would benefit from clarification of this area of the law

Power plays : Australian theatre and the public agenda

Power Plays capitalises on this moment of renewed and heightened interest by investigating the why and the how of eight contemporary Australian playwrights: Andrew Bovell, Patricia Cornelius, Reg Cribb, Ben Ellis, Wesley Enoch, Hannie Rayson, Stephen Sewell and Katherine Thomson. These writers are passionate about the theatre as a forum for public discussion and they interrogate current issues in their work. Their plays reflect the passing show of cultural, political and economic life in Australia, telling audiences something critical about what is going on: this is the state of play, this is what we are.

The author has conducted extensive interviews with these writers and offers an extended analysis of some of their recent plays.

Why invest in a national public health program for stroke? An example using Australian data to estimate the potential benefits and cost implications

Objectives: Stroke is the world’s second leading cause of death in people aged over 60 years. Approximately 50,000 strokes occur annually in Australia with numbers predicted to increase by about one third over 10-years. Our objectives were to assess the economic implications of a public health program for stroke by: (1) predicting what potential health-gains and cost-offsets could be achieved; and (2) determining the net level of annual investment that would offer value-for-money.

Methods: Lifetime costs and outcomes were calculated for additional cases that would benefit if ‘current practice’ was feasibly improved, estimated for one indicative year using: (i) local epidemiological data, coverage rates and costs; and (ii) pooled effect sizes from systematic reviews.

Interventions: blood pressure lowering; warfarin for atrial fibrillation; increased access to stroke units; intravenous thrombolysis and aspirin for ischemic events; and carotid endarterectomy. Value-for-money threshold: AUD$30,000/DALY recovered.

Results: Improved, prevention and management could prevent about 27,000 (38%) strokes in 2015. In present terms (2004), about 85,000 DALYs and AUD$1.06 billion in lifetime cost-offsets could be recovered. The net level of annual warranted investment was AUD$3.63 billion.

Conclusions: Primary prevention, in particular blood pressure lowering, was most effective. A public health program for stroke
is warranted

Understanding public involvement with Australian heritage : a qualitative study using repertory grid analysis

Attempts to increase public participation in heritage related activities have had mixed success. Tourism to heritage sites remains an overt activity that many engage in, but other heritage related activities, such as nominating objects for formal heritage listing, are much rarer. Through a series of qualitative research activities, we examine the public perceptions of what constitutes "heritage" and "heritage - related" behaviours, in order to examine barriers to greater involvement. The findings are that heritage is important to many people, particularly on a personal level. Although initially uncertain about the validity of their views, our respondents defined heritage broadly, believing it to encompass a wide range of objects, places and experiences. Most respondents were undertaking the type of heritage-related behaviours that heritage managers would encourage, however the respondents did not recognise them as being heritage-related. Barriers to greater involvement include this uncertainty over the definition of heritage and a lack of confidence in their ability to effectively recognise and protect heritage. In addition to feeling uncertain about the heritage significance of their own actions and beliefs, the respondents felt even more uncertain about prescribing things of "national heritage value". This uncertainty stifles discussion and action. The solution appears to lay in celebrations of both individual and national heritage, to foster discussions and understanding of communalities across different cultural groups within the nation.