International income-shifting regulations: Empirical evidence from Australia and Canada

This study examines market reactions to two different approaches to reduce income shifting in an international setting. The two methods are described and event studies are performed using stock market data from Canada and Australia. Samples of companies from both countries are partitioned into firms predicted to be affected versus unaffected by each country's event. Australia's regulation taxes profits arising in low-tax subsidiaries at Australian rates. Canada's method defines acceptable transfer prices (arm's-length transactions) and describes enforcement and audit policies. We find evidence of stock market reactions on some of the event dates for Australian and Canadian firms affected by these two approaches.     

Political Risk and Irreversible Investment

The objective of this article is two-fold. First, we developa theoretical model to investigate the impact of political riskon irreversible investment. Second, we apply our model to ananalysis of the effects of risk of separation of the provinceof Quebec from the Canadian federation. We model the probabilityof a regime switch using the properties of the electoral processand examine the response of investment to changes in the riskof separation. We consider the impact of investors' perceptionof the risk of separation and financial market volatility separately.We show that political risk has a depressing impact on investmenteven if the "bad" regime has never been observed in the sample.(JEL Codes: E22, D92, O16, O11)     

Public Pension Fund Management: Best Practice and International Experience

As Japan's policymakers strive to reform the Government Pension Investment Fund, this paper reviews the core principles and best practices of public pension fund management, with a particular focus on governance and investment philosophy, as distilled from the experience of some of the largest and most advanced institutional investors. It proceeds to compare and contrast three distinct models of institutional fund management: the Norway model, the Yale/Australia Future Fund model, and the Canada model. The paper concludes by making some preliminary recommendations for the Government Pension Investment Fund reform.     

Occupational differentiation and exclusion in early Canadian accountancy

Canada’s 1881 census enumerators posed a range of questions that provide scope for an in–depth investigation of the identity of its accounting functionaries (accountants and bookkeepers) in that year. The significance of our findings is explained by applying the concept of closure through exclusion and occupational differentiation. We discover that Canada’s accounting community, at the dawn of professional organisation, was dominated by people originating from Great Britain & Ireland. The rural/urban divide for Canada’s accountants is the inverse of that for the population as a whole and, as in Britain, congregation occurs around the major commercial ports. Significant differentiation exists between the demographic profile of Canada’s accounting functionaries compared with its entire population and between that of accountants compared with bookkeepers. Strong evidence of exclusionary closure is revealed through an analysis of the demographic characteristics of the initial leaderships of Canada’s early accounting associations. The paper concludes by identifying opportunities for further research.     

Surf Tourism and Sustainable Development in Indo-Pacific Islands. II. Recreational Capacity Management and Case Study

Recreational capacity is a function of the natural and social environment, the activity concerned, and the management regime. Indo-Pacific surf destinations with cheap and open access and no capacity management have experienced crowding, crime, pollution and price collapses. Many island surf breaks can handle only a few surfers at once because of the shape of the reefs. A crowding factor may be conceptualised as the proportion of rideable waves each surfer is forced to cede to another boardrider. Quota management systems using operator permits need to incorporate the complexity of the environment and the industry, but be equitable enough to gain general acceptance, and simple enough to enforce without dispute. Siberut Island in the Mentawai chain near West Sumatra, Indonesia, is covered by dense tropical rainforest which supports a number of endangered species and has been proposed as a Biosphere Reserve. It is also home to indigenous village communities with traditional social and religious practices. This island is subject to commercial logging and plantation agriculture, and tourism seems to be the only politically realistic economic alternative at present. To provide infrastructure for long-term growth in nature and cultural tourism, an immediate source of tourism revenue is needed. The most immediate option seems to be surf lodges on some of the smaller Mentawai Islands, which have already been largely cleared and are already visited by boat-based surf tour operators. Operators will only invest in lodges if they can acquire preferential rights to particular surf breaks. Hence the recreational capacity of the islands for surf tourism must be determined, and allocated between operators through a management system. Relevant data and one management option are presented here.     

Evaluating government export promotion: some conceptual and empirical approaches

This article addresses an important aspect of marketing that has not received its due place in the research and academic literature devoted to international trade: It endeavors to provide an authoritative analysis of how to tackle the evaluation of government-funded export programs for companies participating in, for example, trade fairs, missions, symposia, or “weeks.” The article distinguishes particularly export promotion at the macro (government) level and the micro (firm) levels—this distinction is often blurred in the sparse literature on the subject. A general “a priori” analysis from first principles is followed by a specific, quantified approach of a cost / benefit nature; this is applied on a multiyear basis to produce the outcome needed to identify incremental revenues accruing to exporting and participating companies. Another specific approach using return on investment is also explored. The article concludes with some observations about current research and indicates further issues on which work is still needed.     

Canada-Chile Free Trade Agreement: An Analysis

ABSTRACT

The Canada-Chile Free Trade Agreement (FTA) came into effect in June 1997. This paper examines the rationale for free trade negotiations between Canada and Chile. Key trade and investment issues in the Canada-Chile FTA are also discussed. Although it is only a few years since the Canada-Chile FTA entered into force, the preliminary results indicate impressive growth in trade and investment between the two countries.

RESUMEN. El Acuerdo de Libre Comercio Canadá-Chile (ALC) entró en vigor en junio 1997. Este documento examina el razonamiento que respalda las negociaciones entre Canadá y Chile sobre el Acuerdo de libre comercio. También abraca los temas más importantes sobre el comercio e inversiones entre Canadá-Chile. A pesar del poco tiempo transcurrido desde que se implantó el acuerdo de ALC entre Canadá y Chile, los resultados preliminarios indican una impresionante tasa de crecimiento entre las inversiones realizadas entre ambos países.

RESUMO. O Acordo de Livre Comércio (ALC) Canadá-Chile entrou em vigor em junho de 1997. Este estudo investiga os fundamentos das livres negociaç[otilde]es comerciais entre o Canadá e o Chile. São abordados, também, o comércio principal e os investimentos realizados no ALC Canadá-Chile. Apesar de estar em vigor há poucos anos, os resultados preliminares deste acordo indicam um crescimento impressionante no comércio e nos investimentos entre os dois países.     

Due Process and Standard-setting: An Analysis of Due Process in Three Canadian Accounting and Auditing Standard-setting Bodies

Due process is the means by which ethical constraints are placed on administrative decision-making. I have developed a model of variation in due process and use this model to explore the implementation of “due process” norms by three standard-setting bodies that are created, funded, and overseen by the Canadian Institute of Chartered Accountants – the Accounting Standards Board, the Auditing and Assurance Standards Board, and the Public Sector Accounting Standards Board. I conducted two analyses: a comparative analysis of the implementation of due process norms based on differences among the three cases; and, a critique of the due process norms followed by these boards based on their internal logic and a set of best practices identified in other contexts for due process by standard setters. I have presented evidence that due process norms are more fully developed, where standards are enforced by the state and the heterogeneity of users is greatest.     

What Do Employers Want？ Views of Chinese and Canadian Job Seekers

I. Introduction Countries differ significantly in culture, and cultural differences affect businesses operation (Hofstede, 1980). East–West cultural differences can lead to confusion and misunderstanding. In order to obtain a better understanding of these issues, many studies have been conducted in the past two decades. In general, Chinese have been found to be more oriented towards collectivism, uncertainty avoidance, and power distance than Canadians (Hofstede, 1980, 2001; Ralston et al,…