The influence of regionalization and psychic distance on the direction of Australian exports

International business research has identified separately two distinct influences on the direction of firm internationalisation. One of those influences is psychic distance, the other is regionalisation. This paper sets out to test the influences of regionalisation and psychic distance on the direction of Australian merchandise exports. The paper applies a quantitative methodology using a multiple regression model on a large, purposively compiled data set. Unlike most previous outward internationalisation studies, which use the firm as the unit of analysis, this paper uses aggregated Australian export values by country destination and export category over an extended time period, 1990 to 2004. The findings show that regionalisation is the dominant influence on the direction of Australian merchandise exports. This has important trade policy implications for Australian state and federal governments, related export promotion agencies and for managers of Australian firms, as well as for international business researchers generally.

The impact of target board recommendations in Australian takeovers

This paper examines the impact of targe board recommendations on the probability of the bid being successful in the Australian takeovers context. Specifically, we model the success rate of the bid as a binary dependent variable and target board recommendations or the board hostility as our key independent variable by using logistic regression framework. Our model also includes bid structures and conditions variables (such as initial bid premium, bid conditions, toehold, and interlocking relationship) and bid events (such as panel and bid duration) as our control variables. Overall, we find board hostility has statistically significant negative effect on the success rate of the bid and almost all control variables (except for the initial bid premium) are statistically significant with the correct sign. That is, we find toehold, the percentage of share required to make the bid becomes successful, and the unconditional bid have positive impact on the success rate of the bid, at least as predictive determinants prior to the release of any hostile recommendation. Consistent with Craswell (2004), we also find the negative relation between interlocking relationship and the success rate of the bid. Our finding supports that from target investors’ point of view, interlock is consistent with the negative story of self interest by directors. Finally, like Walking (1985), we find that the initial bid premium does not have influence on the success rate of the bid. Hence our results reinstate Walking’s bid premium puzzle in Australian context.

Building business cases for maintenance improvement projects

Many maintenance managers find it difficult to justify investments in maintenance improvement initiatives. In part, this is due to a tendency by mine managers to regard maintenance purely as a cost centre, and not as a process able to influence productive capacity and profit. It is also hindered by a lack of alignment between commonly used maintenance performance measures and key business drivers, and the lack of formal business training amongst maintenance professionals. With this in mind, a model to assist maintenance managers in evaluating the benefits of maintenance improvement projects was recently formulated. The model considers four cost saving dimensions. These are: 1. reduction in the cost of unplanned repairs and maintenance, 2. increased or accelerated production and/or sales, 3. spares inventory reduction, and 4. reduction in over-investment in physical assets and operating costs. This paper discusses the application of this model and a number of numerical examples are given to justify investments in maintenance improvement projects having varying objectives.