The contract,accounting and trust: A case study of an international joint venture (IJV) in the United Arab Emirates (UAE)

This paper reports on the results of a case study that examines the effect of the contract and accounting on inter-organisational trust in an international joint venture (IJV). The empirical setting of the research was an IJV relation between a United Arab Emirates (UAE) firm and its western partner. Data were gathered from multiple sources, including documents, observations, interviews and discussions with managers. The paper aims to explore the process of trust development and the role of the contract and accounting in this. We find that trust developed differently for the partners. Moreover the trust concerns of the partners were not the same. Based on this we conclude that trust was not automatically reciprocated. Instead it needs relating to other items such as the contract, accounting and also the institutional environment. The open-book accounting we observed could only be termed ‘partial’ because the western partner had access to the local partner's books but not the vice versa. But this partial open-book accounting created conflicts between the partners. We argue that developing one kind of trust through one particular medium may help one party but may damage the relationship between the partners.     

Financial development and the cost of equity capital:Evidence from China

This study examines the relation between province-level financial development and the cost of equity in China.Our main findings are that(1)stock market developm...     

The Economic Dimension of Quality in Tourism: Perceptions of Portuguese Public Decision Makers at the Local Level

A quality assessment scale in tourism was constructed in five dimensions: economic, development, human resources, marketing and product. We presents the research findings for the economic dimension, aiming to understand the perception of Portuguese public decision makers at the local level. Using survey methodology, a sample of Portuguese municipalities was used for data collection. Exploratory and confirmatory factor analyses were performed, and three factors supported quality assessment regarding economics: development strategy (F1), economic factors of demand (F2), and financial incentives (F3). Results focus on the validation of the psychometric properties of this measuring instrument, identifying key issues for future research.     

Community-Based Destination Governance in a Developing Economy: The Jamaican Experience

Utilizing a destination governance and social capital conceptual framework, the research examines opinions concerning goals and outcomes in regards to the Jamaican Ministry of Tourism's Ten-Year Master Plan to enhance tourism and increase shared governance. In addition to secondary sources of information, researchers use primary data obtained through an email survey sent to 540 Jamaican managers and executives, 18.3% of whom (n?=?99) completed the survey. Study findings may be deemed contrary to destination governance theory and best practices. However, upon closer examination, they are wholly consistent with theory and models that examine governance issues in developing nations. Arguably, Jamaica tourism may not be ready to fully embrace a network-based model of destination governance, but instead is in the process of evolving toward that model. The findings should be useful for the Jamaican and other developing nation's tourism industries. Further, it should spark discussion regarding governance differences between developing versus developed destinations.     

Valuing quality attributes of Australian merino wool

We measure the relationship between clean prices of individual lots of wool sold at auction and a range of characteristics of the raw wool. Based on the data for 111,440 fleece lots sold in the 2008–2009 auction season, five hedonic models are estimated to determine the premiums and discounts associated with each wool characteristic in five micron categories. Several wool characteristics exhibited significant nonlinear relationships, and therefore, joint density functions were assessed where appropriate. The results indicate that fibre diameter has the greatest influence on price in all markets. Brand contamination, higher levels of unscourable colour and vegetable matter contamination were found to negatively influence price.     

Assessing the nonlinear nature of the effects of R&D intensity on growth of SMEs: a dynamic panel data approach

Based on a sample of Portuguese SMEs for the period 1999–2006 and using two step estimation, namely probit regressions and dynamic estimators, this study makes two important contributions to the literature: (i) identification of a quadratic relationship between R&D intensity and SME growth that takes the form of a U, and so R&D intensity is a stimulating factor of SME growth for high levels of R&D intensity; being a restrictive factor of SME growth for low levels of R&D intensity; and (ii) the growth of SMEs seems to be dependent on the nonlinear effects associated with distinct levels of R&D intensity. The nonlinear effects identified suggest that Portuguese SMEs with high levels of R&D intensity more easily find an efficiency scale and are more dependent on internal financing and short-term debt as sources for funding growth, compared to the case of Portuguese SMEs with lower levels of R&D intensity.     

Trends in management accounting in the Asian pacific region

Summary and conclusions The results of this study indicate that the manufacturing firms in Asia responding to this questionnaire are adopting some of the changes in advocated in the "new" managerial accounting. Respondents see increasingly important roles in their organizations for activity based costing, evaluation of value added activities, quality control, and production and inventory control systems, while retaining some of the traditional techniques appropriate for their more labor oriented manufacturing environment. The integration of accounting controls with strategic measures and the use of non-financial performance measures will become more important in the future. Respondents also considered their cost/managerial information to be useful in a wide variety of management decisions. Managerial accounting techniques and practices have changed in response to the challenges of global competition, international markets, technological advances, and complexity of business. Adoption of these innovations by Asian manufacturers suggest a changing role for the managerial/cost accountant. The future management accountant will need to be knowledgeable of production, quality control, marketing, and management strategy. The results also indicate a broadening of management accounting and a trend toward the integration of management accounting information with strategic planning, suggesting the emergence of the integrative area of cost management. This evidence of changes in the practice of management accounting in Asia will also have significant implications for American universities and manufactures regarding the common body of knowledge required for domestic and international management accounting and the future direction of management accounting education.     

Sovereign default and debt renegotiation

This paper develops a small open economy model to study sovereign default and debt renegotiation for emerging economies. The model features both endogenous default and endogenous debt recovery rates. Sovereign bonds are priced to compensate creditors for the risk of default and the risk of debt restructuring. The model captures the interaction between sovereign default and ex post debt renegotiation. We find that both debt recovery rates and sovereign bond prices decrease with the level of debt. In a quantitative analysis, the model accounts for the debt reduction, volatile and countercyclical bond spreads, countercyclical trade balance, and other empirical regularities of the Argentine economy. The model also replicates the dynamics of bond spreads during the debt crisis in Argentina.     

Climate change and Australia's comparative advantage in broadacre agriculture1

Australia has long been a major exporter of the products of broadacre agriculture, a production system well suited to the economic and climatic conditions of the country. Presumably, it holds a comparative advantage in these products, among which grain crops and grazing livestock predominate. However, the future plausibility of this proposition is sensitive to the projected impacts of climate change. This article develops a framework to quantify the future patterns of comparative advantage in broadacre agriculture, given the projections of several global climate models. We find empirical support for the conventional wisdom, and note substantial resilience and robustness in Australia's comparative advantage under a number of scenarios.     

Constant market shares analysis: uses,limitations and prospects*

In this paper, we generalise the constant market shares (CMS) framework, with particular attention to the underlying theoretical conditions required for diagnostic interpretation. The approach is applied to the analysis of the export performance of the Australian processed food sector in South‐East Asia over the period 1980–2003. We conclude that the usefulness of CMS analysis for evaluating a country's international trade performance depends upon the empirical validity of the aggregation assumptions implicit in the diagnostic interpretation.