MaryAnne M. Hyland and Daniel A. Verreault
Presents a model for analyzing the potential for value creation of the internal audit (IA) function, the human resource management (HRM) function, and the IA‐HRM pairing. A survey…
Abstract
Presents a model for analyzing the potential for value creation of the internal audit (IA) function, the human resource management (HRM) function, and the IA‐HRM pairing. A survey of 161 chief audit executives indicated that virtually all IA functions are risk managing in their audit approaches, while a great majority of HRM clients are also moderately or strongly strategic in their outlook. Findings included that a productive working relationship was strongest when a risk m anaging IA function is paired with a strategic HRM function. Also, the IA planning process was found to be more strategic in the presence of the same pairing. Analysis of written examples of strategic findings related to HRM supplied by the respondents suggested that there may be a significant gap between auditors’ knowledge of strategic HRM practices as developed in the literature and their self‐reported examples. Future research should use both HRM and IA responses to reduce bias. Additonally, there is a need for case studies of the IA‐HRM partnership.
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Daniel A. Verreault and MaryAnne Hyland
To communicate the development and results of strategic human resource management (HRM) research to the audit research community in order to stimulate audit research specific to…
Abstract
Purpose
To communicate the development and results of strategic human resource management (HRM) research to the audit research community in order to stimulate audit research specific to HRM audits.
Design/methodology/approach
Prior research that served as impetus for this paper is discussed. The findings of other studies are presented to make a case for the business impact of strategic human resource management practices.
Findings
Studies on the competitive environment of firms, theoretical development in HRM, empirical work on the link between HRM practice and firm performance, and emerging models based on intellectual capital, suggest that there are compelling reasons for internal audit to devote substantial resources to the evaluation of strategic risk in HRM audits.
Research limitations/implications
The literature is still developing. The literature presented here is not an exhaustive list and does not include all findings, but rather what we perceive to be the most important findings.
Practical implications
Both “high performance work systems” and “strategic fit” should guide internal audit in planning, designing audit programs, and executing strategic audits of human resources consistent with the risk management paradigm.
Originality/value
This paper bridges a gap between the human resource management literature and the internal auditing literature.
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Teresa M. Pergola and Daniel A. Verreault
The purpose of the paper is to synthesize and evaluate the stream of research that links large shareholders to the production of shared corporate benefits.
Abstract
Purpose
The purpose of the paper is to synthesize and evaluate the stream of research that links large shareholders to the production of shared corporate benefits.
Design/methodology/approach
The methodology is to review the literature with an emphasis on the development of findings.
Findings
The presence of large shareholders is positive only if their incentives are aligned with other owners and they have the power to exert influence. The presence of large shareholders, even those whose interests are aligned with owners, does not always result in stronger governance structures.
Research limitations/implications
The research is limited by the existing stream of literature and the completeness of our search process.
Practical implications
A synthesis and evaluative summary of the research is presented that may be used by researchers, executives, and board members.
Originality/value
From a research viewpoint, effective research designs should incorporate both incentive and power when assessing the monitoring role of large shareholders to aid in the validity and comparability of research results. From a practice viewpoint, managers and board members may use our summary figure to evaluate power relationships and likely reactions to strategic and tactical decisions in their firm's governance structure.
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In today’s business world, organizations must be constantly alert to new ways of gaining the upper hand over rivals. Astute operators look beyond the obvious to areas previously…
Abstract
In today’s business world, organizations must be constantly alert to new ways of gaining the upper hand over rivals. Astute operators look beyond the obvious to areas previously unconsidered as potential sources of competitive advantage. Internal auditing and human resource management are two such areas, and when the two form a strategic partnership, the potential exists for a considerable impact upon the financial performance of the organization.
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Sugumar Mariappanadar and Alma Kairouz
The purpose of this paper is to apply the strategic human resource management (HRM) perspective to investigate the schematic relationship between the dimensions of human resource…
Abstract
Purpose
The purpose of this paper is to apply the strategic human resource management (HRM) perspective to investigate the schematic relationship between the dimensions of human resource (HR) capital information and intentions to use such information in individual investors’ decisions relating to investing equities in the banking industry.
Design/methodology/approach
A two-stage empirical study was conducted in 2010 using a four-part HR capital disclosure questionnaire, which was developed and validated in stage 1 (n=145) of the study. In stage 2 (n=157), current or previous shareholders in one of the Australian banking sector corporations participated in the study. The collected data were analyzed using confirmatory factor and logistic regression analyses.
Findings
The findings of this explorative study highlight that the individual investors’ perception on the importance of performance management dimension of HR capital information has varied impacts on their intentions to use such information in investment decisions to buy, hold on to, or sell stocks.
Practical implications
This study has made an important contribution to the strategic HRM and behavioral finance literature that the human capital information facilitates the propensity to avoid regrets in selling shares too early (dispositional effect bias) to achieve utility benefits in future which is different from the findings of financial information disclosure study.
Originality/value
A recent critical review of HR disclosure indicated that most of the published articles on HR capital have used company annual reports for data source. However, this is the first study that attempts to understand the impact of HR capital disclosure information on investment intentions from individual investors’ schema rather than drawing data from company annual reports.
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The purpose of this paper is to complement existing research of the relationship between concentrated ownership and firm performance by theoretically exploring the impact of…
Abstract
Purpose
The purpose of this paper is to complement existing research of the relationship between concentrated ownership and firm performance by theoretically exploring the impact of outside blockholders on the firm, primarily from the perspective of voting power.
Design/methodology/approach
This paper proposes theoretical propositions based on analyses and logical extension of results of the existing theoretical and empirical studies.
Findings
This paper proposes three theoretical predictions: First, voting power provides outside blockholders a necessary condition to pursue shared and private benefits of control, and it is positively correlated with blockholders’ capability of influencing firm value. Second, everything else being equal, an outside blockholder is more (less) likely to pursue private benefits than shared benefits when the equity market is efficient and when the blockholder’s voting power is less (more) than 50 per cent. Third, controlling outside blockholders can capitalize on their voting power to appoint managerial delegates and board representatives to the invested firms for the purpose of pursuing private benefits of control.
Originality/value
This paper tries to make two contributions to the corporate governance literature. First, this research relies on a new perspective to explore the relationship between ownership structure and firm value. Second, this paper presents the first theoretical argument which states that controlling outside blockholders rely on their managerial delegates and board representatives to pursue their private benefits of control.