Rethinking agency theory in developing countries: A case study of Pakistan

We investigate if agency theory effectively explains agency conflict in the context of a developing country namely, Pakistan. Utilising data from 26 semi-structured interviews, we found that in Pakistan, there is no variation in risk preferences of principals (minority shareholders) and agents (majority shareholders). We also found that remuneration packages and board independence are not effective tools for governing owner managers in Pakistan. Thus, policy makers must shift their focus from soft internal governance mechanisms of appropriate remuneration and board independence. We propose for a rigorous external audit function, and appointment of independent directors and external audit firms by regulator.     

Consensual control through the articulation of technology and local culture: evidence from a textile factory in Turkey

This article focuses on the complex network of control and consent through the articulation of technology and local culture in the workplace. The dynamics of this network are embedded in the interplay of global and local markets. The article explores these dynamics by focusing on the distinctive characteristics of a Central Anatolian city, Çorum, based on a case study conducted in Turkey. We observe how globalised patterns of control and consent are reproduced through the articulation of new technologies and the conservative culture specific to this locality. During the negotiations between employers and employees, this interplay plays a significant role in the construction of work realities. The consensual control produced within the framework of conservative values leads to a consensual hegemony in the organisation of labour process.     

Business Students and Ethics: A Meta-Analysis

Given the proliferation of research regarding the ethical development of students in general, and business students in particular, it is difficult to draw conclusions from the contradictory results of many studies. In this meta-analysis of empirical studies from 1985 through 1994, the relationships of gender, age and undergraduate major to the ethical attitudes and behavior of business students are analyzed. The results indicate that female students exhibit stronger ethical attitudes than males. The same is also true for older versus younger students. However, the relationship with undergraduate major is still difficult to interpret.     

The effect of matching on perceived export barriers and performance in an era of globalization discontents: Empirical evidence from UK SMEs

In this study we examine the effect of matching, a comprehensive networking concept, on the perceived export barriers and export performance of small exporting firms. We introduce matching as a moderating variable affecting the link of perceived internal/external export barriers to export performance. Using a sample of 106 UK-based exporting small and medium enterprises (SMEs), we find that matching alleviates the negative impact of perceived internal export barriers on export performance. Furthermore, the empirical results show that export experience and export commitment reduce managers' perceived internal and external export barriers. The study shows that matching, as a networking-tool at multiple levels, can help to overcome export barriers, thus providing a mechanism to offset challenges opened up through nationalistic policies.     

Evaluation of a mining project under the joint effect of commodity price and exchange rate uncertainties using real options valuation

Cash flows generated by mining projects tend to be volatile and are extensively influenced by exogenous variables, notably commodity prices and exchange rates. The traditional discounted cash flow (DCF) method, which is normally used for economic feasibility studies and mining project evaluations, presents inconsistencies because the method fails to adequately address uncertainties and operational flexibilities and often ignores certain specific market conditions. Numerous studies have been carried out for mining project evaluations using the real options valuation (ROV) technique for assessing commodity price uncertainty, but there is no research on the combined effects of price and exchange rate uncertainties. Therefore, in order to assess the economic viability of a mining project more accurately, the commodity price and its inherent volatility, the exchange rate and its inherent volatility, and the correlation parameters between them have been incorporated into the model and used in the evaluation process. One of the interesting findings revealed in the study is that project values are overestimated if only commodity price uncertainty is considered in evaluating the project value instead of the joint effect of commodity price and exchange rate uncertainties. This new ROV technique will explore the opportunity to utilize an alternative methodology for approximating project values and to identify valuation opportunities to enhance economic gains or to mitigate economic losses, where the DCF valuation method does not.     

Does clean air matter in developing countries' megacities? A hedonic price analysis of the Jakarta housing market, Indonesia

Despite numerous hedonic studies on the value of clean air in developed countries, the lack of similar studies in less developed countries has raised the question as to whether clean air also matters in developing countries' megacities. As an attempt to fill this gap, we apply a hedonic property value analysis, the method commonly used to infer the value of clean air in developed countries, using the combination of data on housing rental prices and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result indicates that, in the cases of lead, total hydro carbon (THC), and SO₂, air pollutants have a negative association with property value; i.e., housing rental price. The relationship is at 5% level of significance for lead and 10% level for THC and SO₂. This paper estimates that per family value of clean air in Jakarta ranges from US$28 to US$85 per μg/m³.     

The ethical attitudes of students as a function of age,sex and experience

In this paper, we explore whether the ethical positions of students are firmly entrenched when they enter college, or do they change due to maturity, experience to ethical discussions in coursework, work experience, or a combination of factors. This study compared the ethical attitudes of freshmen and junior accounting majors, and graduate MBA students when confronted with two ethical dilemmas. Undergraduates were found to be more justice oriented than their MBA counterparts, who were more utilitarian in their ethical approach. While males tended to be more utilitarian, they were also more tentative and neutral in their responses. Females expressed more definite ethical positions than males when assessing specific ethical behaviors. Prior exposure to ethics via coursework or employment did not significantly affect ethical attitudes.Susan C. Borkowski is Assistant Professor at La Salle University. Her research interests are domestic and international transfer pricing, and the integration of ethics into business curriculum. She has published articles in theJournal of Management Accounting Research, Woman CPA, andAdvances in International Accounting (forthcoming).Yusuf J. Ugras is Assistant Professor at La Salle University, where he teaches M.B.A. and undergraduate managerial/cost accounting courses. His research interests include cost allocation, performance evaluation, and ethics in business.     

The Turkish wage curve: Evidence from the Household Labor Force Survey

This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey including 26 NUTS-2 regions over the period 2005-2008. We find an unemployment elasticity of −0.099, with a higher elasticity for younger, less educated, less experienced and female workers.     

Migration and its contribution to the size and value premiums: Australian evidence

This paper investigates how different types of migration contribute to the size and value premiums for Australian equities. We find that: (a) the majority of stocks that stay in the same portfolio during the next period contribute to both the size and value premiums, (b) small-cap neutral and small-cap growth stocks that move to a lower market-to-book type contribute moderately to the size premium, (c) value stocks that move to a higher market-to-book type contribute moderately to the value premium (d) small-cap stocks that grow to be big-cap stocks make minor contributions to the size premium and (e) value stocks that change size classification, make minor contributions to the value premium. Overall, small-cap value stocks that stay in the same group account for large portions of both the size and value premiums.