Australian Journal of Management

Lý thuyết đại diện cho rằng lợi ích của cổ đông cần được bảo vệ bằng cách tách biệt các vai trò của chủ tịch hội đồng quản trị và CEO. Trong khi đó, lý thuyết quản lý lại cho rằng lợi ích của cổ đông sẽ được tối đa hóa khi có sự kết hợp vai trò này. Kết quả của một thử nghiệm thực nghiệm không hỗ trợ cho lý thuyết đại diện và hỗ trợ phần nào cho lý thuyết quản lý.

Direct tests between corporate social responsibility (CSR) and firm performance (FP) have been argued to be spurious. Following this line of argument, the present study tests a mediated model in understanding the CSR–FP relationship. Specifically, we posit that reputation and customer satisfaction mediate fully the CSR–FP relationship. Based on the results from a sample of 280 Australian firms, the findings suggest that CSR is linked with FP. However, the effect is indirect: while CSR is linked to both reputation and customer satisfaction, reputation alone mediates the CSR–FP relationship. The results are interesting, suggesting that to reduce ambiguity surrounding the CSR–FP relationship scholars need to significantly expand studies that address moderating and mediating variables. Discussion is given to these findings along with paths for future research.

We explore how competitive disadvantage affects firms' incentives to disclose or withhold infor Mation of common interest to competing firms within a Cournot duopoly. We establish the existence of a unique disclosure equilibrium to the problem of firms disclosing private infor Mation about aggregate demand, and show that firms choose to withhold infor Mation of either very high or very low demand. We also show that both the size of the disclosure interval and ex ante probability of disclosure decreases as the intensity of competition between firms increases.

The mental health and well-being of employees is an increasingly important issue, both in terms of the financial costs to the Australian economy and human costs to society. This review examines two major technology-driven trends in the workplace and presents evidence for their impact on mental health, both positive and negative. First, we consider how we work, with a focus on changes which have been driven by automation and advanced technology in the workplace. Next, we consider where and when we work, with a focus on flexible work arrangements afforded by changes in telecommunication technology. Finally, we look forward with a critical lens to examine the implications for future research and for industry, government and education.

JEL Classification: I31

In this paper we evaluate the performance of three alternate default-risk models, seeking to find that measure which performs best, using a comprehensive sample drawn from the Australian equities market. The first two models are option-based models and are derived from Merton's (1974) insight that equity can be viewed as a call option on a firm's assets. In the first model, equity is modelled as a standard call option. In the second model, equity is modelled as a path-dependent barrier option. The third model is created using accounting ratios and is similar to Altman's (1968) Z-Score. To assess which of the models is superior, we consider variations of each model and then rely on prediction-oriented tests that focus on whether a firm subsequently defaults. Our results show that the option-based models clearly outperform their accounting ratio counterparts. Furthermore, our analysis suggests that the option-based models are very successful at ranking firms by default probability. It is noteworthy that the performances of the option-based models are difficult to distinguish from each other.

The proposed tax on economic rents earned from Australian resources investments is examined from the viewpoint of the economist's neutrality criterion. Proposed by Garnaut and Clunies-Ross (1975, 1977), the Resources Rent Tax is alleged to be neutral in that it is alleged not to inhibit or distort investment behaviour. We show that the proposed tax effectively is a call option on the value created by every individual resources project. By adapting the Black-Scholes (1973) call option valuation formula, we then demonstrate that the effective incidence of the tax depends upon each project's risks, life and viability. Hence, under conditions of risk, the Resources Rent Tax fails the neutrality criterion.

The study of volatility inter-dependence provides useful insights into how information is transmitted and disseminated across markets. Research results in this area have implications for international diversification and market efficiency. This paper explores volatility spillovers between the Australian and New Zealand stock markets. The objective of the paper is to determine if volatility surprises in one market influence the volatility of returns in the other market. The existing literature in this area has typically focused on the US market's influence and employed standard ARCH class models to account for the time-variation in volatility. This paper focuses on the trans-Tasman markets and utilises more complex models which allow for an asymmetric response of volatility to past innovations. Time-zone differences in trading hours between Australia and New Zealand are analysed and four models are developed to test for spillover effects. The overnight return (& volatility) from the US market is used to account for the impact of international news. The results indicate that volatility surprises in the larger Australian market influence the subsequent conditional volatility of the smaller New Zealand market. Similarly, the Australian market also appears to be influenced by volatility surprises from the New Zealand market. However, this latter finding is also consistent with contemporaneous market reactions to international news which the daily data set used in this study is unable to isolate.

Debt financing plays an important role in corporate financial decisions. Therefore, the cost of debt is an interesting topic in corporate finance. Using a sample of 153,784 observations across 30 countries from 2003 to 2016, we find that creditor rights positively affect the cost of debt. In addition, the effect of shareholder rights is weaker in countries with stronger creditor protection.

JEL Classification: G32, G34