The Influence of Organizational and Code-Supporting Variables on the Effectiveness of a Code of Ethics

Prior findings on the effectiveness of the codeof ethics in promoting ethical behavior aremixed. Perhaps more is required to promoteethical behavior than the mere existence of thecode within the organization. The presentstudy proposes, first, that the extent to whichthe organization communicates, enforces andencourages reference to the code is importantto achieving the desired results. Second,organizational ethics variables (namely, topmanagement support for ethical behavior, theassociation between ethical behavior and careersuccess, and organizational ethical climate)can have a significant influence on ethicalbehavior of organizations over and above theimpact of the implementation and use of thecode. Both propositions are supported based onregression analyses of data from a survey of237 managers, the majority of whom hold middleand top level positions within organizations.     

An analysis of the factors affecting the turnover intention of non-managerial clerical staff: a Singapore study

This study examines the factors affecting turnover intention and attempts to construct a turnover prediction model. Sixteen demographic, job satisfaction and job attitude factors are considered in the study. From the three-hundred questionnaires administered, a usable response rate of 36 per cent (i.e., 108 usable questionnaires) was obtained.

Correlation analyses, t-tests and multiple regression were used to analyse the data. The results show that demographic and job attitude factors are not significantly associated with turnover intention. In contrast, job satisfaction factors affect turnover intention significantly. In particular, satisfaction with career future, company identity, kind of work and financial rewards were found to be statistically significant. These four variables are thus included in the final turnover prediction model.     

Effect of Foreign Shareholdings and Originating Countries on Banking Sector Efficiency

We analyze how foreign shareholdings affect the ASEAN-5’s banking sector efficiency using stochastic frontier analysis. Unlike most extant studies, which compare the performance of local and foreign banks, we assess how foreign shareholdings affect bank efficiencies. We also apply resource-based theory to analyze whether the foreign shareholdings’ countries of origin matter. We find that foreign shareholders from more developed countries enhance the bank’s resource base. Those from Asia have the greatest effect, perhaps because of their proximity and familiarity. Moreover, excessive regulation stifles the host countries’ profit efficiency potential. Finally, foreign shareholding concentration potentially enhances efficiencies by reducing agency costs.     

Seize the moment: Opportunism in Australian capital markets

This paper examines theories of capital structure using a dataset of listed Australian companies from 1993 to 2005. Companies appear to have target leverage but they take advantage of favorable firm characteristics to achieve these targets. Issuers issue debt when they are profitable. When firms are profitable and perform well in the market, they will issue both debt and equity.     

Growth and Renewal in the United States: Retooling America's Economic Engine*

New research by the McKinsey Global Institute (MGI) examines the growth challenge facing the United States and explores how U.S. business and government can contribute to the economy's renewal by reinvigorating their drive toward higher productivity. As baby boomers retire and the female participation rate plateaus, the U.S. economy will receive significantly less lift from increases in the labor force and will have to rely increasingly on productivity gains to fuel growth. The report finds that the United States needs a 34% acceleration in productivity growth if it is to match the GDP growth rates of the past 20 years—and that this is possible. Three‐quarters of the necessary productivity growth acceleration can come from the efforts of private‐sector companies operating within the current regulatory and business environment. Even the best‐performing companies and sectors still have headroom to boost productivity by emulating the best practice of others and tapping into new innovations, and coming up with new innovations of their own. The remaining one‐quarter—and more—can come from government and business working together to address barriers that now limit growth. MGI lays out a seven‐point agenda for action to spur productivity.     

Model Predictions and Auditor Assessments of Going Concern Status

This paper compares the predictions of a bankruptcy prediction model and the assessments of auditors on the going concern status of a sample of 165 bankrupt companies and 165 matched non-bankrupt companies. Data from US companies for the period 1978 to 1985 were used. Probit analysis (with the weighted exogenous sampling maximum likelihood procedure) was applied to estimate the model parameters. The Lachenbruch U method hold-out accuracy rates of the model are 85.45% for bankrupt firms, 100.00% for non-bankrupt firms, and 99.91% overall. The corresponding accuracy rates of the auditors based on their audit reports are 54.37% for bankrupt firms, 100.00% for non-bankrupt firms, and 99.73% overall. The sensitivity of optimal cut-off points to misclassification costs of Type I and Type II errors was also considered. Results of the study suggest that bankruptcy prediction models can be useful to auditors in making going concern assessments. Further, such models can serve as analytical tools and defensive devices.     

The demand for training and consultancy investment in SME-specific ERP systems implementation and operation

This research examines the demand for the level of investment in training and consultancy necessary to successfully implement and operate small and medium sized enterprises (SME)-specific enterprise resource planning (ERP) systems in SMEs. The extant literature on ERP, as well as established business practices adopted by the majority of ERP vendors and trainers, suggests that in order to implement and operate ERP systems effectively, a training model including an extensive training period, and often utilising external consultants, is a necessary condition. An in-depth case study has been conducted in this research on a UK-based SME-specific ERP systems vendor, which maintain that their SME-specific ERP systems can be implemented and operated effectively with only five days of formal training and no additional consultancy. This research evaluates the validity of this claim, and investigates the basis for the training model employed by the case company is, or is not, sufficient for users to successfully implement and operate SME-specific ERP systems.     

Interlocking of information systems for international supply and demand chains management

This paper is concerned with coordination aspects of supply chain management and, in particular, investigates setup coordination between two and three stages of a supply chain. The problem arises from a real application in the production chain of a kitchen furniture plant. In different stages of the plant, items are grouped according to different attributes. A setup is required in a stage when the new batch has a different level of attribute from the previous one. Two objectives are considered, i.e., minimizing the total number of setups and minimizing the maximum number of setups of the stages. The problem is to determine a sequence of batches in search for Pareto-optimal solutions with respect to the two objectives. Several metaheuristics, including genetic algorithm, simulated annealing, and iterated local search (ILS) have been proposed for the two-stage problem. In this paper, we develop a constructive heuristic, which combines a least flexibility first principle and a greedy search, for the two- and three-stage problems. Computational results show that the proposed heuristic performs significantly better than the genetic algorithm and simulated annealing. Although the proposed heuristic is inferior to the ILS, which employs two constructive initial solution heuristic, for the two-stage problem, it can be easily extended to the three-stage problem.     

Non-audit services and financial reporting quality: evidence from 1978 to 1980

We provide evidence on the long-standing concern about the potential conflicts of interest of auditors that provide clients with non-audit services using rarely explored non-audit services fee data from 1978 to 1980. In this setting, we find evidence of improved earnings quality when auditors provide non-audit services, especially those related to information services. This is consistent with better audit quality resulting from knowledge spillovers in the joint offering of audit and consulting services. Events related to the 1982 repeal of mandatory non-audit services disclosures are associated with a small positive stock price reaction, suggesting that the disclosure repeal has no adverse economic consequences. Furthermore, following the repeal we find no change in the earnings quality of client firms. In sum, our data suggest that non-audit services offered by audit firms can be associated with improved audit and reporting quality in client firms via auditors’ reputational incentives, synergies, and knowledge transfers.     

Does franchising help restaurant firm value?

A company's financial performance is of keen interest to many groups of people, including management, employees, shareholders, government, and so on. Although franchising has been one of the most common strategies to maximize a firm's financial performance in the restaurant industry, little research has been conducted regarding the relationship between the degree of franchising and the restaurant firm's financial performance. This study initially proposed a sigmoid relationship between the degree of franchising and the restaurant firm's financial performance based on the diversification theory. Findings, however, do not fully support the sigmoid relationship; rather a more quadratic or inverted U-shaped relationship was found.