Further evidence on the corporate use of derivatives in Australia : the case of foreign currency and interest rate instruments

In a recent issue of this journal Nguyen and Faff (2002) reported on an empirical exploration of the motives behind the aggregate use of financial derivatives by Australian companies. Employing the same sample of firms, the current paper extends their analysis to investigate similar issues, this time focussing separately on foreign currency and interest rate derivatives. At a specific level, our results reveal the following. A firm is more likely to use foreign currency derivatives if it is large and has more debt in its capital structure. Interest rate derivatives, on the other hand, are more likely to be used if a firm is larger, more levered, more liquid and pays higher dividends. These results are consistent with existing hedging theories. Market to book value (proxying growth opportunities), however, portrays an inconsistent relationship with the likelihood of interest rate derivative usage. When it comes to the extent of usage, a firm uses foreign currency derivatives more extensively if it is smaller, pays higher dividends and has more debt. Similarly, interest rate derivatives are used more extensively to address a high level of debt and a high dividend payout policy. At a general level, the current study confirms the core finding of Nguyen and Faff (2002), namely, that Australian companies use derivatives with a view to value maximisation.

The use of codes of ethics in the marketplace in corporate Australia : a longitudinal study

The stock market crash of 1987 was a defining moment in Australian corporate life. As a nation, we became acutely aware of the ‘moral bankruptcy’ that had come to permeate our corporate world. The focus on business ethics or the lack of it, in corporate Australia in the late 1980s, prompted this research.

The research for this paper that was first conducted in 1995 and replicated in 2001 focussed on the top 500 companies in Australia. These companies were surveyed on a raft of issues, one of which was their use of their codes of ethics in the marketplace. This paper examines the data sets from 1995 and 2001 and concludes that many of Australia’s largest enterprises have recognised the need for business ethics. As perceived by them, they can and do use their codes of ethics in a positive manner in the marketplace and attribute benefits to this interaction.

Corporate ethics and new technology: an exploratory investigation of advertising activity and world wide web usage

This study explores the ethical standards and behaviour of Australian advertisers and their usage of new technologies. Although corporate ethics has been an issue in the established media of television advertising for some time, there is little research about how companies are adapting in terms of ethics to the new communication technologies. The consumers’ “right to know” was used as a device to assess the ethical standards and behaviour of companies. Findings suggest that the WWW is not used as a means of communicating corporate ethical standards. Results indicate that the method of communicating requests for information does not influence the likelihood of receiving a response from a company. The results also show differences between the ethical standards and the ethical behaviour of those companies who do use the WWW to communicate ethical statements.

A conformity test of corporate financial disclosures in Asian and Middle East countries

This paper investigates the financial disclosure practices of corporate annual reports published in Asian countries including Bangladesh, Indonesian, Malaysia and the Middle East countries including Bahrain, Iran, Jordan, Kuwait, Oman, Pakistan, Qatar, Saudi Arabia and Turkey. The purpose of the study is to measure the financial disclosure diversity in these countries, with a view to developing a classification of their similarities and differences in respect to their compliance with International Accounting Standards (IASs). Annual reports of 132 public companies listed on the relevant countries stock exchanges are the central data source, supplemented with other reliable information about financial disclosure practices in each country. A disclosure checklist adopted from all IASs and summarised in 306 individual items of financial disclosures is used as a means of extending an understanding of financial reporting literature. Additionally, it provides an indication of voluntary progress towards harmonisation of international accounting practices in several Asian and Middle Eastern countries. Results show the degree of conformity with IASs from less to high conformity is: Saudi Arabia, Qatar, Bangladesh, Iran, Bahrain, Jordan, Pakistan, Oman, Turkey, Malaysia, Kuwait and Indonesia.

From product centricism to systems-wide education design: making corporate technology systems work for the learning organisation

Deakin University has established a major integrated corporate technology infrastructure in the last two years to enhance and bring together its distance education and on-campus education. This environment has been called Deakin Online. With Deakin Online rapidly developing, efforts are beginning to focus more fundamentally on how the potentials of the environment can be realised to create enduring teaching and learning value. This search must be understood in the context of the University’s commitment to the values of relevance, responsiveness and innovation. The question is: how can these values be realised in the digitally-based evolving educational enterprise using the new corporate technologies and new concepts of organisational structure and function? We argue for the transforming role of the academic teacher and new forms of open academic collegiality as being critical to realise strategic and enduring educational value. Moreover, change in role and process needs to be grounded in more systemic organisation and program-wide approaches to designing and working within the new contemporary learning environments. We believe the shift from the dangers of product centricism to system-wide education design modelling situating e-learning within broader curricular and pedagogical concerns represents the best strategy to create enduring educational benefits for all stakeholder groups (notably academic teachers and their learners) while preserving teachers’ sense of agency in the changing learning environments of higher education.