Prior Payment Status and the Likelihood to Pay Dividends: International Evidence

By using the signaling model and the life‐cycle theory, I examine the importance of prior payment status in determining the likelihood to pay dividends. I categorize firms into those that paid dividends previously and those that did not. My results show that strong dividend stickiness exists and the determinants to pay differ significantly for the two groups of firms. High growth and low insider holdings make prior payers more likely to pay but prior nonpayers less likely to pay. Furthermore, prior payers are more sensitive to profitability and earned/contributed equity mix, while prior nonpayers are more sensitive to risk and dividend premiums. Finally, taking the prior payment status into account eliminates the problem of overestimating the portion of payers put forth by previous studies.     

DECENTRALIZATION, ACCOUNTING CONTROLS AND PERFORMANCE OF GOVERNMENT ORGANIZATIONS: A NEW ZEALAND EMPIRICAL STUDY

This paper reports the results of a study which was conducted in five departments of the New Zealand Government and investigated the relationships between (a) decentralization and the use of accounting control systems, (b) the use of accounting control systems and district office performance, and (c) the decentralization and district ofice performance. The performance was assessed using the managers' perception of their district office (unit's) performance. Data for the study were collected from 59 district office managers using a structured questionnaire. The results indicate that an increased decentralization is associated with a greater managerial use of accounting control systems which, in turn, is associated with improved district office performance.     

A game of thrones—Dynamics of internal CEO succession and outcome

We examine the implications of chief executive officer (CEO) succession methods for firm outcomes and executive incentives. Focusing on internal CEO successions, we find that the largest U.S. firms typically rely on two types of succession methods, namely, heir apparent and horse race successions. Although heir apparent and horse race CEO candidates have similar qualifications, the consequences of these two succession methods differ significantly. We find that horse race successions induce conflict and are detrimental to firm performance but not necessarily to the newly appointed CEOs. Our findings suggest succession method influences firm performance, executive incentives and CEO labour markets.     

The managerial prerogative and the employee's duty to work: a comparative study of functional flexibility in working life

This paper presents a discussion of the general reasons for conducting comparative research, the need for a socio-legal functional approach and the motives for subjecting Swedish, English and German labour law to study. Anna Christensen's theory of the normative field of law is discussed and applied to the field of comparative labour law research. The focus of the research is the legal regulation of the managerial prerogative (especially the employer's right to direct and allocate work) in the light of the increasing trend towards greater flexibility in employment.     

Hotel Employees' Perception of the Statutory Minimum Wage Policy in Hong Kong

Employee compensation is one of the largest expenses for businesses. Given the labor-intensive nature of the hotel industry, hotel employees' perceptions of the statutory minimum wage (SMW) policy have become a major concern for hotel operators since the introduction of the policy in Hong Kong. This exploratory study examines these perceptions, together with hotel employees' job and compensation satisfaction and intention to leave, since the introduction of the SMW policy. A survey of 161 hotel employees in Hong Kong was carried out. Respondents demonstrated high awareness of the SMW policy but viewed its effect on the hotel industry as limited. The largest gap between the perceived importance of, and satisfaction with, a factor related to job satisfaction was found for the benefits package. As well as making a contribution to the academic literature, this study provides practical implications of the SMW policy for the hotel industry in Hong Kong and other countries considering adopting a similar measure.     

Family Members' Projections of Each Other's Preference and Influence: A Two-Stage Conjoint Approach

Two important sources of error that may limit the accuracy of individual family members' projections of joint family preferences are: (i) misperceptions of other members' preferences, and (ii) misperceptions of other members' influence in joint family evaluations. We propose a two-stage conjoint approach to study these potential errors. Stage one compares family members' projections of each other's preferences to members' self-reported preferences. Stage two compares family members' projections of each other's influence to observed influence in joint family preferences. An empirical illustration shows that family members are relatively poor predictors of preference, but fairly accurate predictors of influence, in the area of family holiday preferences.     

Adapting to climate change: perceptions of vulnerability of down-hill ski area operators in Southern and Middle Finland

Climate change is likely to affect the tourism sector, particularly areas, such as snow-based tourism, that are directly dependent on climate and weather conditions. Especially vulnerable are low-lying ski areas. This study identifies the climatic factors that are crucial for economically successful operation of low-lying ski areas in Southern and Middle Finland and contemplates how these factors are seen to change with climate change. The study then analyses the preferences for and perceptions of adaptation strategies of downhill ski operators in terms of the adaptation measures they can implement or are willing to take. The findings indicate that climatic conditions set preconditions for the operation of the ski areas, but short-term operational prospects and inter-annual variability in weather conditions rather than foreseen changes in climatic conditions guide the operational decisions of the ski area operators. A key adaptation strategy to respond to uncertain snow conditions is artificial snowmaking, which lowers the vulnerability of the areas to the impacts of climate change too.     

A note on work-related values, budget emphasis and managers’ organisational commitment

Managers’ work-related values (WRVs) have important implications for designing appropriate management accounting systems (MAS) in organisations. This paper examines the effect of the interaction between managers’ WRV for innovation and budget emphasis (an integral part of MAS) on their organisational commitment. The sample consisted of 109 managers from production, marketing and support departments within Australian manufacturing firms. Hypotheses were tested using both quantitative and qualitative data collected by a questionnaire survey and post-survey interviews. The results indicate that the adoption of low budget emphasis led to high organisational commitment when managers’ WRV for innovation was high, but not when managers’ WRV for innovation was low. The results also indicate that marketing managers held higher WRV for innovation than production managers. The post-survey interviews provide further insight into how a more customer- and competitor-focused subculture of marketing managers and a more technical- and efficiency-focused subculture of production managers may promote the difference in their WRV for innovation, and affect their attitudes towards budget emphasis. The findings of the study have implications for design of performance evaluation systems for managers in functionally differentiated organisations.