Corporate governance and incidences of listing suspension by the JSE Securities Exchange of South Africa: An empirical analysis

We examine the association between corporate governance structures and incidences of listing suspension from the JSE Securities Exchange of South Africa. Using a matched-pairs research design, we compare 81 firms suspended between 1999 and 2005 to an equal number of control firms matched in terms of time, size and industry. Employing a conditional logistic model, we find that the likelihood of suspension is higher in firms with a smaller proportion of non-executive directors, without an audit committee, and with greater block-share ownership and higher gearing (i.e. leverage). Further analysis splitting block-share ownership into institutional and non-institutional investors provides mixed results. While we find a positive association between suspension and non-institutional investors, we observe no association with institutional investors. No association is detected for board size, role duality, directors' share ownership, auditor quality and return on assets. Given the paucity of studies examining listing suspension from stock exchanges and corporate governance mechanisms, these findings contribute to the literature. Additionally, the dearth of research on corporate governance in developing countries suggests that our findings have important implications for policy makers in these countries as they endeavor to improve corporate governance.     

Corporate Compliance with Non-Mandatory Statements of Best Practice: The Case of the ASB Statement on Interim Reports

ABSTRACT

This paper contributes to our understanding of compliance with non-mandatory statements of best practice. Specifically, we examine the efficacy of agency-related mechanisms on the degree of disclosure compliance with the ASB Statement on interim reports. Using data drawn from a sample of 259 UK companies listed on the London Stock Exchange, we show that although overall disclosure compliance is high (74.5% of the items of information being disclosed), companies do not fully comply with the ASB Statement on interim reports. We employ an ordinary least square (OLS) regression model to establish whether selected company-specific and corporate governance characteristics (proxying for agency-related mechanisms) are related to the degree of disclosure compliance. Our results indicate that multiple listing, company size, interim dividend and new share issuance are positively associated with the degree of compliance. We also find that the degree of disclosure compliance is positively associated with auditor involvement, audit committee independence and audit committee financial expertise. These results have important implications for policy because they suggest that whilst agency-related mechanisms may motivate compliance with best practice non-mandatory statements, full compliance may be unattainable without regulations.     

Identifying risk issues and research advancements in supply chain risk management

The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some research gaps. Even though there is a pressing need and awareness of SCRM from industrial aspect, quantitative models in the field are relatively lacking and information flow risk has received less attention. It is also interesting to observe the evolutions and advancements of SCRM discipline. One finding is that the intellectual structure of the field made statistically significant increase during 2000-2005 and evolved from passively reacting to vague general issues of disruptions towards more proactively managing supply chain risk from system perspectives.     

Disclosure, Corporate Governance and Foreign Share Ownership on the Zimbabwe Stock Exchange

We investigate the association of foreign share ownership with firm‐level disclosure and corporate governance structures in Zimbabwe, a developing country in Southern Africa. Our motivation for the study derives from the literature, which suggests that foreign investors: (1) generally have a preference for companies in which they are well informed and where their investments are more likely to be protected, and (2) avoid companies in developing countries because of weak corporate governance structures and low disclosure. Using data drawn from companies listed on the Zimbabwe Stock Exchange, we examine the effect of disclosure and corporate governance on foreign share ownership. We find that disclosure, proportion of non‐executive directors, institutional share ownership and audit committee independence are all positively and significantly associated with foreign share ownership. Our results also demonstrate that market capitalization, return on equity and liquidity ratios are significantly associated with foreign share ownership. These results are consistent with the notion that foreign investors have a preference for companies with effective corporate governance structures, companies with less information asymmetry, as well as companies with healthy cash positions. The results have implications for policy‐makers in developing countries in their endeavour to improve liquidity on stock markets through the participation of foreign investors. The results are also useful to managers in developing countries who are keen to increase the market value of their company, thereby reducing their cost of capital.     

Chili Growers' Experience with Contract Farming in Malaysia

The objectives of the study were (a) to examine the perception of chili growers toward contract farming (CF) and (b) to ascertain the factors that motivate the growers to participate in CF. A total of 190 chili growers within East Coast Economic Region (ECER) were interviewed. The data were analyzed using SPSS to describe the respondents' profile and CF practices. At the present moment, the chili growers have a contract agreement with the Farmers' Organization Authority of Malaysia (FOAM) and FOAM, in turn, has a contract agreement with Nestle. Factor analysis was carried out to identify latent factors that influenced chili growers in their participation in CF. These factors are extension services, access to new markets, market assurance, protection for growers, skills transfer, and indirect benefits.     

Travel behaviour among inbound medical tourists in Kuala Lumpur

Despite recording the highest growth among tourism sub-sectors [Dhesi, D. (2009, March 25). Medical tourism rises in Malaysia despite economic downturn. The Star Online. Retrieved from http://www.malaysiahealthcare.com/; Leonard, T. (2009, July 24). Medical tourists to bring in RM 540 million by 2010. Retrieved from http://www.malaysiahealthcare.com/; Tourism Malaysia. (2008). Profile of tourist by selected markets 2008. Kuala Lumpur: Tourism Malaysia], little is known empirically with regard to travel behaviour among inbound medical tourists in Malaysia. This study examined the demographic profile, travel motivation, healthcare consumption, and expenditure behaviour among them in Kuala Lumpur. Using the combination of purposeful and convenience sampling, a total of 138 questionnaires were completed, returned, and analysed. The majority of the respondents were female, middle aged, travelling with two others and Indonesians. Their main travel motivation factors were ‘value for money’, ‘excellent medical services’, ‘supporting services’, ‘cultural similarity’, and ‘religious factor’ in descending order of importance. Medical treatment, cosmetic procedure, surgical procedure, and medical check-up were important healthcare services sought after by the respondents. On average, medical tourists spent MYR 26,844.19 per visit, with females and tourists of European descent contributing significantly more. Tourists from ASEAN had stronger motivation of ‘cultural similarity’ compared with other tourists. This paper is unique in providing the empirical evidence of the city's unique selling points (pull factors) in attracting inbound medical tourists. It also highlights the potential economic contribution and some managerial implications in terms of marketing and product development.     

An Empirical Analysis of Analysts' Capital Expenditure Forecasts: Evidence from Corporate Investment Efficiency*

We examine whether the information conveyed in a relatively new analyst research output—capital expenditure (capex) forecasts—affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities—positive-growth signals are more effective in reducing underinvestment, while negative-growth signals are more effective in reducing overinvestment. Cross-sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts' capex forecasts convey useful information about firms' growth opportunities to managers and investors, which can facilitate efficient investment.     

Disclosure of provisions for decommissioning costs in annual reports of oil and gas companies: A content analysis and stakeholder views

This study examines the extent of compliance with accounting disclosure requirements relating to provisions for decommissioning costs by oil and gas companies. We also investigate the views of stakeholders on the reporting practices of these companies. Using a content analysis approach, our findings reveal that compliance is substantially high, but companies tend to take a tick-box approach providing only minimum disclosure requirements. In semi-structured interviews, we find that disclosure decisions were driven by concerns about the credibility of information due to complexities in the accounting processes, regulatory requirements, lack of information demand and proprietary costs. These findings have policy implications.     

Gender diversity in the hospitality industry: An empirical study in Turkey

This paper, an investigation of gender diversity in the Turkish hospitality industry, focuses on two primary objectives: (a) exploring the potential relationships between gender and several demographic factors, and (b) examining the possible existence of a gender effect regarding employees’ perceptions of recruitment and earning potential decisions. Results, based on 682 surveys, show that, in the male-dominated Turkish hospitality industry, there is a significant gender effect for two of four demographic variables and with respect to recruiting efforts and earning potential. These findings could have some important managerial implications for addressing gender diversity in the (Turkish) hospitality industry.     

How Satisfied are Inbound Medical Tourists in Malaysia? A Study on Private Hospitals in Kuala Lumpur

The study explores inbound medical tourists' satisfaction from 137 respondents sampled using the combination of purposeful and convenience samplings in five private hospitals in Kuala Lumpur. In descending order of scores, medical tourists are most satisfied with doctors, nurses, hospital services, hospital atmosphere, and hospital facilities. Hospital facilities and doctors are the two most important dimensions in influencing the overall satisfaction. There are significant differences in the levels of satisfaction within demographic profiles. The article contributes to knowledge on the establishment of dimensions and items pertinent to measuring medical tourists' satisfaction and the results provide insights into managerial and marketing implications.