Managerial Equity Ownership and the Demand for Outside Directors

This paper examines the linkage between the use of outside directors and managerial ownership. We conjecture there are two linkages: the standard incentive‐alignment demand for monitoring when managers own little stock and an entrenchment‐amelioration demand when managerial stock ownership is high. As a consequence, we predict the association between managerial ownership and board composition will be nonlinear (U‐shaped if the entrenchment effect is sufficiently pronounced). Using UK data, we find that both quadratic and logarithmic models outperform the simple linear relationship assumed in prior research and that the substitution between managerial ownership and board composition is stronger than hitherto supposed.     

Estimating the Size of a Criminal Population from Police Records Using the Truncated Poisson Regression Model

The truncated Poisson regression model is used to arrive at point and interval estimates of the size of two offender populations, i.e. drunk drivers and persons who illegally possess firearms. The dependent capture–recapture variables are constructed from Dutch police records and are counts of individual arrests for both violations. The population size estimates are derived assuming that each count is a realization of a Poisson distribution, and that the Poisson parameters are related to covariates through the truncated Poisson regression model. These assumptions are discussed in detail, and the tenability of the second assumption is assessed by evaluating the marginal residuals and performing tests on overdispersion. For the firearms example, the second assumption seems to hold well, but for the drunk drivers example there is some overdispersion. It is concluded that the method is useful, provided it is used with care.     

Professorial Rankings of Australian Accounting Departments

This article presents the results of a survey of professors in accounting departments in Australia. Professors ranked Australian accounting departments on a variety of research, teaching and staffing attributes, on contributions to the accounting profession and provided an overall ranking of the departments. Overall rankings placed the University of Queensland and the University of New South Wales a close first and second, followed by the University of Sydney, the University of Melbourne, the University of Western Australia, and Monash University. Analysis of the separate sub-dimensions of performance shows that it is variations in respondents' perceptions of research-related performance of departments which accounts for variation in the overall ranking. We also asked the professors for their views on several issues facing accounting educators and those who recruit accounting graduates. Most believed that there should be more breadth in undergraduate accounting courses than is currently the case. However, most felt that recruiters would prefer degree structures to remain as they are. There was overwhelming consensus that it was reasonable to expect ethics to be taught in accounting programs; that the Australian Securities Commission should not replace corporate management in the appointment of auditors; and that accounting standards should not be written to force very conservative depictions of profitability and financial position. There was disparity of opinions on whether auditors ought to be expected to foreshadow financial distress; whether the audit role should be expanded to explicitly embrace fraud detection; and whether financial reports should be understandable to the lay person.     

INDEPENDENT EXPERT'S REPORTS IN TAKEOVER BIDS

This paper reports an empirical examination of independent expert reports in takeover bids using the 170 reports that were issued in the 364 cash-based bids that occurred between January 1988 and December 1991. It was found that bid premia offered in takeover bids where an expert's report was issued were not significantly lower than bid premia in other bids. This may be attributable to independent experts acting as a countervailing influence on bidders holding a superior pre-bid bargaining position. Next, some dimensions of the “fair and reasonable” criterion that experts are required to use are examined. These are the single-test and dual-test interpretations of the phrase, the relation between offer price, market price and the expert's valuation of the target, the cost and length of expert's reports and, finally, the influence an expert has on the outcome of a bid.     

Production restructuring in the textiles and clothing industries

This article analyses the processes of restructuring in the textiles and clothing industries in a locality. Particular attention here is focused on new technology, labour flexibility, sub-contracting patterns and skill factors. The extent to which the process of restructuring involves a conscious and deliberate move to new patterns of work organization is considered.     

Development and the mystification of ‘cultural factors’: One destiny: Our common future in Africa,by A S van Niekerk

In One destiny: Our common future in Africa the author relates, in popular fashion, a series of incidents which convinced him that the basic difference between black and white in South Africa is cultural deep‐seated and the cause of underdevelopment and conflict He develops a circular argument in which world‐view is taken as the root of perceptions, values and activities. The effects of experience and economic and political factors are given secondary importance. This argument cannot accommodate social change and differentiation, and the author tends to concentrate on perceptions and events which he finds morally unacceptable. He gives an unbalanced assessment and an ethnocentric interpretation of African life. Possible reasons for this type of argument are explored and an alternative which takes its departure from the interaction between experience and perception is offered     

There's something about saving …

The paper considers how people should plan their saving, given certain assumptions about inheritance and changes in household circumstances. The results are produced by a model that takes into account tax and state benefits as well as various private savings vehicles. It concludes that, for many households, saving for retirement through a ‘pension’ might not be optimum and that the best strategy is to vary the incidence and allocation of saving in response to changes in household circumstances.     

Auditor conservatism and voluntary disclosure: Evidence from the Year 2000 systems issue

This study further examines the phenomenon of conservative auditor behaviour by considering the level of voluntary disclosure of Year 2000 remediation information in company annual reports. Previous studies have provided evidence of conservative auditor behaviour by examining the link between Big 6 auditor choice and accruals (Francis and Krishnan 1999; Becker et al ., 1998; Defond and Subramanyam 1998). Protecting their reputation capital increases Big 6 auditor incentives to act conservatively to avoid litigation risk. We propose and find that Big 6 auditor clients disclose more Year 2000 remediation information than non–Big 6 auditor clients.     

Talk as Technique – A Critique of the Words and Deeds Distinction in the Diffusion of Customer Service Cultures in Call Centres

ABSTRACT   This paper critically explores the common distinction made between words and deeds (or ideas and techniques) in the diffusion of management knowledge literature. The concern with whether management ideas are really being implemented in an organizational context intuitively points to the possibility of a contrast between simply talking about a practice or 'hype' and practical implementation. Drawing on empirical research on the diffusion of customer service culture in two call centres where 'verbal labour' predominates, it is argued that this distinction is important, but overdrawn. Eschewing discursive reductionism, the concepts of 'talk in work' and 'talk about work' are developed to illustrate how talk can be a technique of implementation in its own right.