Political competition and environmental reporting: evidence from New Zealand local governments

Purpose - The purpose of this paper is to investigate the relationship between "political competition" and "environmental reporting" by New Zealand local governments. Design/methodology/approach - The research method includes a longitudinal analysis of environmental reporting by New Zealand local governments in their annual reports for the financial years 2005-2006 to 2009-2010. "Content analysis" was used to attach scores to the extent of environmental reporting. The "number of candidates divided by the number of available positions at the previous election" was used as the proxy for "political competition". Findings - The study reports a positive relationship between "political competition" and "environmental reporting" in 2007-2008. The number of local governments reporting voluntary environmental information increased in 2006-2007 and 2007-2008 compared to 2005-2006, followed by a reduction in such numbers following the 2007-2008 financial year. This trend in disclosure can be attributed to the local government elections in October 2007. This finding is consistent with the expectation of "agency theory" and provides insight into the pattern of perceived agency costs. The study also finds a dearth in reporting "monetary" and "bad" news. Originality/value - The study contributes towards the previous literature on environmental reporting by concentrating on the public sector and New Zealand, together with investigating the relationship of such reporting with "political competition" through a longitudinal analysis. The theoretical contribution of this study is the adoption of "agency theory" in the context of public sector voluntary reporting and investigating the significance attached by agents to environmental reporting to minimise agency cost. The practical contribution of the study is in the area of future development of reporting standards in regards to environmental reporting.

Evaluating young adult voter decision-making involvement within a compulsory political system

Purpose - This study aims to specifically focus on the lower-involvement young adult voters within the Australian compulsory voting context. It explores voters’ political decision-making by considering the influence of the consumer behaviour theory of involvement. Design/methodology/approach - A thematic analysis was conducted to analyse the interviews within the two research questions: information seeking and decision-making. Findings - Key themes within information seeking are the reach of the information available, the frequency of the information presented, the creativity of the message and one-way versus two-way communication. Key themes within evaluation are promise keeping/trust, achievements or performance and policies. Lower-involvement decision-making has the potential to be a habitual, limited evaluation decision. However, issues of trust, performance and policies may encourage evaluation, thereby reducing the chances of habitually voting for the same party as before. Practical implications - This new area of research has implications for the application of marketing for organisations and political marketing theory. Considering voting decision-making as a lower-involvement decision has implications for assisting the creation and adaptation of strategies to focus on this group of the population. Originality/value - The compulsory voting environment creates a unique situation to study lower-involvement decision-making, as these young adults are less likely to opt out of the voting process. Previous research in political marketing has not specifically explored the application of involvement to young adult voting within a compulsory voting environment.

Does political capital create value in the IPO market? Evidence from China

This study examines the value of political capital in the Chinese IPO market. We find a positive relationship between a politically connected executive and the probability of IPO approval of entrepreneurial firms. We further identify that shareholders value those connections and give a market premium to connected firms after the firms go public. We provide evidence that other types of political capital gained through external sources, such as politically connected sponsors and PE investors, also bring benefits to the firms in their IPO approval, and these connections substitute for the effect of the executive's political connections on IPO approval. We argue that in emerging markets where government intervention is still prevalent, political capital does create value and entrepreneurial firms usually build political capital to facilitate their access to the IPO market, although other types of political capital do not bring further benefits into the post-IPO market.

Political connections, founder-managers, and their impact on tunneling in China’s listed firms

We investigate the impact of manager political connection and founder status on tunneling in China's listed firms from 2004 to 2010. By classifying the political connections into three dimensions with two categories of controlling ownerships, we find that overall manager political connection is negatively related to tunneling in private firms but positively related to tunneling in SOEs. The CPC/CPPCC-type connection is likely to protect firms from tunneling, while the official-type connection facilitates tunneling from firms. The impact of these two types of political connection on tunneling is stronger at the central level than the local level. A chairman's political connection has significantly greater influence on tunneling than a CEO's connection. We also find that firms with founder-managers have a stronger resistance to tunneling than those with non-founder-managers, which is still observed in firms with politically connected founder-managers. Our results show that the incentives of various managers towards tunneling depend on their motivation for establishing relevant political connections.

Postmodern psychologies, societal practice, and political life

First published in 2000. Routledge is an imprint of Taylor & Francis, an informa company.

A critique of the political theology of Slavoj Zizek

This chapter critiques the political theology of Slavoj Zizek as beset by social theoretical and strategic political problems. Political theology here is a privileged intellectual terrain on which to simultaneously resolve questions about liberating forms of social cohesion in a post-revolutionary political community and about cultural strategy in the radical program. In connection with the Marxist critique of religious ideology, Zizek’s work represents an important contribution to the research program that emerged from the Althusserian approaches to social theory. But although Zizek has the conceptual resources to generate a dialectical theory of the connection between religious ideology and political strategy, he instead opts for a theory of radical rupture with existing forms of life. Detoured through the encounter with Carl Schmitt, Zizek’s doctrine of radical rupture quickly becomes an inverted Schmittianism, freighted with the problems of the militarisation of politics and the arbitrary designation of enemies that he diagnoses in Schmitt, but does not transcend in his own response. Zizek’s figure of the “religious suspension of the ethical” brings the politics of rupture to its most problematic (and baroque) formulations, revealing the fundamental problem of the ideological representation of political structures.

Corporate political connections and the 2008 Malaysian election

We examine whether the relationship between political connections and firm value is moderated by the length of time firms have been politically connected. We find that compared to firms with political connections for a short period, firms with political connections for a long period have a smaller magnitude of negative stock price reaction to the 2008 General Election loss of the supermajority by the ruling party in Malaysia. We also find that the smaller magnitude of negative stock price reaction is, in part, attributable to improvements in board of director characteristics. Furthermore, we find that while the performance subsequent to the General Election of politically connected firms is worse than that of non-politically connected firms, firms with political connections for a long period exhibit better performance than those connected for short periods. Collectively, the evidence shows that the length of political connections is an important factor that moderates economic value.

The political economy of markets and development: a case study of health care consumption in the State of Kerala, India

Marketing theory has largely ignored the issue of power in influencing exchanges. Most of the studies either disregard the role of power, or resource power is the only dimension taken into account. In this study, we expand the existing understanding by centrally situating the role of socio-political power in the consumption process. We examine the health care system in the Indian state of Kerala and highlight that socio-political power is a crucial determinant of consumption levels. In the process, we argue that in a resource—constrained Third World society socio-political empowerment is critical to the development process.

Political connection and leverage: Some Malaysian evidence

This paper extends prior work on the linkage between politically connected (PCON) firms and capital structure in developing countries. Specifically, this paper focuses on the association between Malaysian PCON firms and leverage, and is motivated by the results of Fraser et al. (2006) who report a positive association between leverage and political patronage. Controlling for a potential misspecification in that paper, this study documents that a significant proportion (almost 12%) of the Malaysian PCON firms have negative equity, and builds on the previous paper by providing fresh evidence that market to book ratio is positively associated with leverage, and that borrowing PCON firms have significantly lower ROA compared to non-PCON firms. © 2012.

Political connection and cost of debt: Some Malaysian evidence

This paper investigates the association between Malaysian politically connected (PCON) firms and the cost of debt. We extend previous research that finds Malaysian PCON firms are perceived as being of higher risk by the market, and by audit firms, by providing evidence that lenders also perceive these firms as being of higher risk. We also find that PCON firms have a significantly (1) higher extent of leverage, (2) higher likelihood of reporting a loss, (3) higher likelihood of having negative equity, and (4) higher likelihood of being audited by a big audit firm. We suggest that PCON firms are charged higher interest rates by lenders as a result of efficient contracting given their higher inherent risks. Additionally, we find that CEO duality present in PCON firms is perceived by lenders as being more risky, and that a higher proportion of independent directors on the audit committee mitigate this perceived risk. © 2012.

Auditor industry specialization, political economy and earnings quality: some cross-country evidence

Using cross-country data, we evaluate the impact of investor protection on the association between earnings quality and audits by industry specialists. Our findings show that the positive association between industry specialist auditors and earnings quality as documented in the literature is affected by the political electoral system, which reflects investor protection rights in a country. We document that audits by industry specialists are associated with higher earnings quality in countries with the proportional electoral system, reflecting weak investor protection. Our results also confirm Kwon et al.'s findings that overall there is a positive association between earnings quality and audits by industry specialists in countries with weak legal enforcement. Our findings, however, indicate that Kwon et al.'s results are valid only for countries with weak investor protection reflected by the proportional electoral system and not for countries with strong investor protection reflected by the majoritarian electoral system. These findings thus suggest that higher earnings quality of firms audited by industry specialists across countries can especially be expected when investor protection is low and legal enforcement is also weak. In addition, our research suggests that future cross-country studies could explicitly consider the role of the political electoral system of a country in evaluating corporate governance, management and accounting issues.