Investor heterogeneity and the cross-sectional stock returns in China

We examine the relationship between divergence of opinion and the cross-sectional stock returns in Chinese A share market where short-selling of stocks is prohibited by law. Using a proxy for divergence of opinion among the entire investor base, we document a positive relationship between divergent beliefs and future stock returns. This is in sharp contrast to Miller's (1977) prediction of a negative relationship between the two. The result is likely to be driven by the dominance of individual investors and their speculative trading behaviors in China. Miller's prediction is confirmed when divergence of opinion is measured using data on mutual fund holdings. Our results are robust to a number of common return predictors. We also find a significantly negative relationship between the fraction of tradable shares in listed Chinese companies and future stock returns. Increase in the fraction of tradable shares tends to reduce the predictability of stock returns using divergence of opinion.

Why do companies not produce sustainability reports?

Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice.

Reluctant relaxation: The end of the iron ore export embargo and the origins of Australia's mining boom, 1960-1966

The Australian government embargoed any export of iron ore between 1938 and 1960. Joseph Lyons’s government imposed the ban on the eve of World War II for a strategic reason: to prevent the Japanese from importing ore from Yampi Sound in Western Australia. Another consideration, which underpinned the retention of the ban for more than two decades, was the Commonwealth of Australia's perception that Australia's iron ore reserves were limited. In the space of a few years after the partial lifting of the embargo in 1960, world-class reserves of iron ore, mainly in Western Australia, were discovered. Mined and exported from the mid-1960s, iron ore would become, in time, Australia’s best export earner. This article explores the reasons behind the lifting of the ban and how the relaxation of the embargo in stages between 1960 and 1966 shaped the emerging iron ore industry and therefore Australia’s mining boom.

Board committee meetings and firm financial performance : an investigation of Australian companies

This article examines how the frequency of board committee meetings impacts on Australian firms’ financial performance. Data were collected from 118 Australian listed companies – including 26 financial firms and 92 nonfinancial firms – for the period 1999–2007. Analysis of that data shows that the frequencies of audit committee meetings and remuneration committee meetings are positively and significantly associated with return on equity and return on assets. The frequencies of risk committee meetings do not show any significant effects on the financial performance of Australian firms. Estimated results are found to be robust after controlling for internal as well as external governance mechanisms that might affect Australian firm performance.

Sustainability reporting and non-reporters : understanding why companies do not produce sustainability reports

 This report explores the social and organisational factors that help to explain why some ASX200 listed companies, in selected industries, do not provide detailed and comprehensive stand-alone sustainabilty reports. 

Application of the reporting entity concept and lodgement of special purpose financial statements

This Research Report analyses the application of the reporting entity concept and the adoption of special purpose financial reporting, particularly by entities lodging financial statements with the Australian Securities and Investments Commission (ASIC) and with state-based regulators in Australia’s three most populous states, namely, Consumer Affairs Victoria, NSW Fair Trading and Queensland Office of Fair Trading. This Report does not cover entities that have their equity interests traded in a public market, such as listed companies, and some other entities with ‘public accountability’.

What do indigenous communities think of the CSR practices of mining companies?

This paper examines how one indigenous community in the Western Province of Papua New Guinea (PNG) views the social responsibility initiatives of OK Tedi Mining Ltd (OTML). This mining operation has been controversial since its inception, and various operators of the mine have sought to engage the community and to undertake a number of CSR-related projects. Insights gained from four focus groups amongst the Ok Tedi River indigenous communities show that while some members of the community are satisfied with the company’s efforts at the macro level, many have reservations about the effectiveness of the programs at the micro level on the village and family unit. The implementation of CSR activities are slow and in many instances do not effectively address stakeholder concerns.

Real and substantial connections : Enforcing Canadian privacy laws against American social networking companies

Any organisation that captures personal data in Canada for processing is deemed tohave a ‘real and substantial connection’ to Canada and thus fall within thejurisdiction of the Personal Information Protection and Electronic Documents Act(PIPEDA) and of the Office of the Privacy Commissioner of Canada (OPC). Whathas been the experience of enforcing Canadian privacy protection law on US-basedsocial networking services? We analyse some of the high-profile enforcement actionsby the Privacy Commissioner. We also test compliance through an analysis of theprivacy policies of the top 23 SNSs operating in Canada and through the use of accessto personal information requests. Our analysis suggests that non-compliance iswidespread, and is explained by the countervailing conceptions of jurisdictioninherent in corporate policy and technical system design.