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.     

Pattern of road traffic injuries in Ghana: Implications for control

Road traffic injuries and fatalities are increasing in Ghana. Police-collected crash and injury data for the period 1994-1998 were aggregated and analyzed using the MAAP5 accident analysis package developed by the Transport Research Laboratory, U.K. Published results of recent transport-related epidemiological and other surveys provided an additional data source. According to the 1994-1998 police data, road traffic crashes were a leading cause of death and injuries in Ghana. The other leading causes of death and injuries are occupational injuries which involve nonmechanized farming and tribal conflicts. The majority of road traffic fatalities (61.2%) and injuries (52.3%) occurred on roads in rural areas. About 58% more people died on roads in the rural areas than in urban areas, and generally more severe crashes occurred on rural roads compared with urban areas. Pedestrians accounted for 46.2% of all road traffic fatalities. The majority of these (66.8%) occurred in urban areas. The second leading population of road users affected was riders in passenger-ferrying buses, minibuses and trucks. The majority of these (42.8%) were killed on roads that pass through rural areas. Pedestrian casualties were overrepresented (nearly 90%) in five regions located in the southern half of the country. Efforts to tackle pedestrian safety should focus on the five regions of the country where most pedestrian fatalities occur in urban areas. Policies are also needed to protect passengers in commercially operated passenger-ferrying buses, minibuses and trucks because these vehicles carry a higher risk of being involved in fatal crashes.     

Development aid and employment in the Federal Republic of Germany

The discussion on an increase of development aid is overshadowed by uneasiness about job opportunities at home. Against the demands for a sizeable increase of development aid funds it is often argued that such aid draws purchasing power away from the internal market if it is not tied to deliveries by the Federal Republic of Germany. Recent data show however that, since these “ties” were largely abolished in 1973, most funds allocated to development aid have still been flowing back into the Federal Republic in the shape of export orders.     

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.     

Imports from developing countries: Reasons for protection and proposals for liberalization

Protectionism in international trade, in particular with regard to imports from developing countries, has increased rapidly since the beginning of the 1970s. Dieter Schumacher analyses the reasons for this development and makes some proposals for a liberalization of trade which take the conflicts between domestic objectives in the industrialised countries and the international division of labour into account.     

A Note on Job Mobility Among Workers with Disabilities

This article uses data from the 1990 and 1993 panels of the Survey of Income and Program Participation to analyze relationships between disability status and job mobility. We identify individuals who experienced voluntary or involuntary job separations over a 20-month period and examine the effect of disability status on rates of job change and wage growth following a job change. The results show that disabled workers are more likely to experience involuntary job changes than are nondisabled workers, but there is little difference in the wage effects of job changes by disability status.     

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.     

A Survey of Ethics Officers in Large Organizations

Corporations in the United States have been starting ethics programs for a variety of reasons both active and passive. Ethics officers are being charged with improving both company image and the level of ethical decision-making by employees. Thirty ethics officers from Fortune 500 firms were surveyed to develop a database of their duties and the companies' commitment to ethical standards. The results suggest much is being done, both in the diversity of responses and the similarities of commitment and duties.