International work in domestic jobs: an individual explanation

Australian firms are attempting to internationalize and to become global companies. One way of staffing the forays into international business is by incorporating international work into domestic jobs. This study sought to understand the factors related to the amount of international work Australians perform in their domestic jobs. Alumni from an Australian university were surveyed, providing 1,046 full-time domestic employees working in a range of industries. Regression analysis showed that, beyond individual and organizational controls, employees performed more international work in domestic jobs when they worked in organizations at higher than at lower international levels with human resource support, worked in jobs at higher rather than at lower managerial levels and had international skills. However, there was no or little link with employees' international attitudes or family situation. As predicted, the managerial level of the job made a difference to the effects of the work environment. Working in MNCs and domestic organizations with operations abroad was related to the amount of international work in domestic jobs performed by senior managers and executives more than by lower and middle managers or subordinates and supervisors. Analysis of open-ended responses shows the major reasons Australians take up domestic international work are money, professional development and challenging content. The major reasons they would not are family commitments and disruption, in contrast to the quantitative results in which family factors are unimportant. The difference between the quantitative and qualitative results and the importance of family factors, international skills versus attitudes and human resource support are discussed.     

A Political–economic Analysis of Auditor Reporting and Auditor Switches

This study examines whether auditor opinions are affected by political and economic influences from governments. We use auditor locality (local versus non-local) to capture such influences from local governments in China. Based on data from China’s stock markets for the period 1996–2002, we find that local auditors, who have greater economic dependence on local clients and are subject to more political influence from local governments than non-local auditors, are inclined to report favorably on local government-owned companies to mitigate probable economic losses. Moreover, companies with qualified opinions are more likely to switch from a non-local auditor to a local auditor than companies with unqualified opinions. Contrary to some prior studies, we find that in China’s political environment, local government-owned companies that switched from a non-local auditor to a local auditor after receiving a qualified opinion can succeed in opinion shopping.

Corporate governance in South Korea: the chaebol experience

Utilizing a large sample of South Korean firms, this paper explores the impact of corporate governance in an emerging market country dominated by a few large business groups. Firms affiliated with the top five groups (chaebol) exhibit significantly lower performance and significantly higher sales growth relative to other firms. Furthermore, top executive turnover is unrelated to performance for top chaebol firms, indicating a breakdown of internal corporate governance for the largest business groups. Internal corporate governance appears much more effective for firms unrelated to the top chaebol as managers at poorly performing firms are significantly more likely to lose their job. These results imply that the lack of properly functioning internal corporate governance among the top chaebol, which dominate the Korean economy, may have increased the severity of the recent financial crisis.     

Lack of early engagement: a pre‐eminent barrier to Australian university bequest giving?

• Decreased government funding has placed increasing financial pressure on Australian universities. Currently Australian universities receive 6.6% of all donations to nonprofit organisations in Australia while universities in the United States attract 14%. These figures suggest there is considerable room for improvement for Australian universities. Efforts directed towards adding to knowledge of philanthropy to universities in Australia are, therefore, very topical at present. Despite acknowledged differences between the types of literature on gift‐giving it predominately centres on the motivation to donate to nonprofit organisations during an individual's lifetime (in vivo giving) with less focus on bequests. This exploratory study sought to gain insight into barriers to Australian University bequests. Lack of alumni engagement in Australian Universities was identified as a primary bequest barrier. Barriers identified previously in the literature (e.g. communications quality, performance, insensitive marketing) were considered secondary barriers to bequests. The results suggest a long term strategy is needed for Australian Universities seeking to improve donations. Universities need to engage students from the start of their academic tenure in order to be considered for a bequest. This paper proposes a model which highlights the consequences of this lack of early engagement and identifies key points in the academic and post‐academic process where successive challenges increasingly diverge the student from the university's bequest prospects.

Copyright © 2009 John Wiley & Sons, Ltd.     

The comparative effectiveness of dialectical inquiry and Devil's advocacy: The impact of task biases on previous research findings

Considerable debate has recently emerged concerning the comparative effectiveness of two methods of inquiry recommended for use in strategic decision making: dialectical inquiry (DI) and devil's advocacy (DA). Much of the comparative research surrounding this debate has made use of the Multiple Cue Probability Learning Paradigm (MCPLP). The equivocal nature of previous research findings using this paradigm and others, along with results from the present research indicating potential order of presentation effects, raises serious questions concerning previous operationalizations of these two methods.     

Financial Statement Frauds and Auditor Sanctions: An Analysis of Enforcement Actions in China

The rising tide of corporate scandals and audit failures has shocked the public, and the integrity of auditors is being increasingly questioned. It is crucial for auditors and regulators to understand the main causes of audit failure and devise preventive measures accordingly. This study analyzes enforcement actions issued by the China Securities Regulatory Commission against auditors in respect of fraudulent financial reporting committed by listed companies in China. We find that auditors are more likely to be sanctioned by the regulators for failing to detect and report material misstatement frauds rather than disclosure frauds. Further analysis of the material misstatements indicates that auditors are more likely to be sanctioned for failing to detect and report revenue-related frauds rather than assets-related frauds. In sum, our results suggest that regulators believe auditors have the responsibility to detect and report frauds that are egregious, transaction-based, and related to accounting earnings. The results contribute to our knowledge of auditors’ responsibilities for detecting frauds as perceived by regulators.     

Virtual communication,transformational leadership,and implicit leadership

This research was designed to test the theoretical relationship among personality, implicit leadership, and transformational leadership in a setting devoid of face‐to‐face communication, which we entitled virtual communication. Specifically, the study was designed to link, by using the International Personality Item Pool (IPIP), traits from the 5‐factor model of personality (the Big 5) to followers' perception of the leadership style of a virtual leader on the basis of Bass and Avolio's MLQ‐5X (1994). A voluntary sample consisted of undergraduate and graduate students from two universities in the south Texas area (N = 306). Respondents to the virtual communication rated Leader 1's communication, which used previously identified transformational language (Salter, Carmody‐Bubb, Duncan, & Green, 2007), as significantly more transformational than Leader 2's communication, using words not associated with transformational leaders. Participants who scored high in the Big 5 personality traits of agreeableness, openness to experience, conscientiousness, and extraversion rated the leader as more transformational while those high in neuroticism rated the leader as less transformational.     

High-frequency financial data modeling using Hawkes processes

Intraday Value-at-Risk (VaR) is one of the risk measures used by market participants involved in high-frequency trading. High-frequency log-returns feature important kurtosis (fat tails) and volatility clustering (extreme log-returns appear in clusters) that VaR models should take into account. We propose a marked point process model for the excesses of the time series over a high threshold that combines Hawkes processes for the exceedances with a generalized Pareto distribution model for the marks (exceedance sizes). The conditional approach features intraday clustering of extremes and is used to calculate instantaneous conditional VaR. The models are backtested on real data and compared to a competitor approach that proposes a nonparametric extension of the classical peaks-over-threshold method. Maximum likelihood estimation is computationally intensive; we use a differential evolution genetic algorithm to find adequate starting values for the optimization process.