Volume 11 Number 01
Variation Of Australian Share Prices Due To Fundamental And Non-Fndemental Innovations
David* E. Allen and Wenling Yang**
This paper examines the deviation of Australian stock prices from their fundamentals by decomposing stock prices into four fundamental components and one non-fundamental component in three multivariate-moving-average models. The four components of stock prices, earnings, dividends, interest rates and excess stock returns are identified by the restrictions imposed on a Sims-Bernanke variance decomposition. Overall our findings suggest that, stock price variability is only partially explained by fundamental factors such as earnings and dividends, the rest may be due to time-varying interest rates and future excess stock returns. This conclusion, whilst largely consistent with fundamentals rejects the 'simple' present value model in determining Australian stock prices on the basis of results from a time series dynamic framework.
Keywords: Fundamentals; Sims-Bernanke Variance Decomposition; Trivariate Moving Average Representation
Jel codes: G12
Organizational Culture: Association with Commitment, Job Satisfaction, Propensity To Remain, And Information Sharing in Taiwan
Jill L. McKinnon*, Graeme L. Harrison**, Chee W. Chow*** and Anne Wu****
This study explores the association between organizational cultural values and employee responses in a major diversified manufacturing company in Taiwan. Strong positive associations are found between organizational cultural values of respect for people, innovation, stability and aggressiveness, and employee responses of organizational commitment, job satisfaction, propensity to remain with the organization, and information sharing behaviour. Some associations appear to be universal, cross-cultural tendencies, while others appear to reflect the specific national cultural context of Taiwan. The results also suggest that the organizational cultural values themselves may be more important influences on employee responses than the fit between culture and employee preferences for culture.
Keywords: Organizational culture, National culture, Employee attitudes in Taiwan, Job related attitudes, Information sharing
Performance Of High-Tech Firms' Resource And Capability-Based Development: Knowledge Acquisition, Organisational Utilisation And Management Involvement.
Dr. Yanni Yan* and Jing A. Zhang**
The paper presents the differences in knowledge acquisition, organizational utilization and management involvement between domestic and foreign high-tech firms in China. The scope of the study is to test explicitly how a high-tech firm's different resources and capabilities contribute to performance. Our study concerns a high-tech firm's resource determinants and consequences of its technological capability employed, as these have significant effects on the development of an holistic context-based typology that offers rich insights into a high-tech firm's performance. Utilization of a high-tech firm's resources and capabilities is identified as the critical conduit for deploying knowledge systems, technologies and innovations. Our research sheds light on the resource determinants of high-tech firms and the performance consequences of employing such resource capabilities.
Keywords: knowledge acquisition, organizational utilization, management involvement, a high-technology firm; performance
Determinants Of Environmental Reporting In Malaysia
Zauwiyah Ahmad*, Salleh Hassan** and Junaini Mohammad***
This study empirically examines the incentives that motivate Malaysian listed companies to disclose environmental information in their annual reports. The study attempts to explain the occurrence of the environmental information with reference to some company specific characteristics from the contracting and political cost perspectives. Six variables are hypothesised to influence companies' decision to voluntarily disclose environmental issues in their annual reports. The results reveal that only two out of the four hypotheses are supported; that is, the voluntary disclosure of environmental information in the annual reports is negatively related to firms' financial leverage and that their accounts were audited by Big-5 firms. Explanations are proffered for these findings.
Keywords: Environmental reporting, contracting theory, political cost theory, Malaysia.
Forecasting Credit Ratings Using An Ann And Statistical Techniques
Kuldeep Kumar* and John D Haynes**
In a liberal environment the conceptual importance of credit rating has increased significantly. The objective of this study is to explore and find out the effect of the financial performance data of a firm relative to the credit rating of a debt issue of that firm. The study also proposes to capture the relationship, if any, between financial performance data and credit rating given by experts in an appropriate model.
Financial data relevant to debt issue ratings are obtained from the publications of a premier credit rating agency in India. Data analysis involved the building of a model using conventional multiple linear discriminant analysis and Artificial Neural Network Systems. Artificial Neural Networks (ANN) model was found to be superior to the discriminant analysis model. The ANN model can be used to increase speed and efficiency of the rating process in practical applications. In addition, if experts provide better-input data, it can be relied upon to provide an automatic rating to a significant extent.
Keywords:Credit Rating, Rating Methodology, Discriminant Analysis, Artificial Neural Network, Experts System.
Choice Criteria Of Listed Australian Public Companies For Selecting An Auditor: An Exploratory Study
John Sands* and Janelle McPhail**
The purpose of this research is to determine the choice criteria companies use in the auditor selection process for listed Australian public companies. This is the first Australian study to investigate this issue. The study drawn on international literature and attempts to develop a more comprehensive study of these characteristics that minimise the limitations identified in these overseas studies. Eight constructs were identified from the literature and then empirically tested in a national survey. Factor analysis was used to analyse the data resulting in the establishment of nine choice criteria. The two most important choice criteria identified are Technical Competence and Client Orientation. Literature suggests that companies incur direct and indirect costs associated within an auditor change and such costs may impact on the importance of selection decision choice criteria. A comparison between companies that selected a new auditor and those that re-appointed the incumbent audit firm, suggests that seven of these choice criteria are of equal importance for the selection and re-appointment decisions. However, the results suggest that the other two criteria (Level of Audit Fee, and Effective Preparation and Communication of Audit Submission) are significantly more important to companies appointing a new auditor. The perceived difference in importance of these criteria on the selection decision process identified has implications for audit firms attempting to retain or obtain an audit appointment. These findings also should interest corporate and academic accountants***.
Keywords: Choice criteria; Auditor selection; Listed companies