Marion R. Hutchinson, Majella Percy and Leyal Erkurtoglu
The purpose of this study is to examine the impact of recent corporate governance reforms on the association between governance practices and earnings management.
Abstract
Purpose
The purpose of this study is to examine the impact of recent corporate governance reforms on the association between governance practices and earnings management.
Design/methodology/approach
This study examines the impact of corporate governance reforms by using a firm fixed‐effect, cross‐sectional analysis of 200 firms listed on the Australian Stock Exchange (ASX) for the financial years ending in 2000 and 2005. This paper examines the association between firms' corporate governance practices and the quality of financial reports as measured by the magnitude of earnings management pre‐ and post‐the governance reforms (CLERP 9 and ASX Corporate Governance Council (CGC)).
Findings
The results of this study indicate that certain governance practices are important in limiting earnings management. In particular, board independence and audit committee (AC) independence, are associated with lower performance‐adjusted discretionary accruals, one commonly used measure of earnings management. However, increasing executive shareholdings provides incentives to manage earnings.
Practical implications
This study is important to investors, academics and policy makers as it demonstrates that governance reforms that encourage firms to adopt better governance practices reduces the likelihood of earnings management.
Originality/value
There is limited research on the association between corporate governance practices or the recent corporate governance reforms (ASX CGC Recommendations and CLERP 9) on earnings management in Australia. This study extends the literature by demonstrating the impact of recent corporate governance reforms on board independence, AC effectiveness and executive directors' shareholding and the association with earnings management.
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Marc Verschueren, Johan Kips and Martin Euwema
The purpose of the study was to explore in literature what different leadership styles and behaviors of head nurses have a positive influence on the outcomes of patient safety or…
Abstract
Purpose
The purpose of the study was to explore in literature what different leadership styles and behaviors of head nurses have a positive influence on the outcomes of patient safety or quality of care.
Design/methodology/approach
We reviewed the literature from January 2000 until September 2011. We searched Pubmed, Embase, Cinahl, Psychlit, and Econlit.
Findings
We found 10 studies addressing the relationship between head nurse leadership and safety and quality. A wide array of styles and practices were associated with different patient outcomes. Transformational leadership was the most used concept in the studies. A trend can be observed over these studies suggesting that a trustful relationship between the head nurse and subordinates is an important driving force for the achievement of positive patient outcomes. Furthermore, the effects of these trustful relationships seem to be amplified by supporting mechanisms, often objective conditions like clinical pathways and, especially, staffing level.
Value/originality
This study offers an up-to-date review of the limited number of studies on the relationship between nurse leadership and patient outcomes. Although mostly transformational leadership was found to be responsible for positive associations with outcomes, also contingent reward had positive influence on outcomes. We formulated some comments on the predominance of the transformational leadership concept and suggested the application of complexity theory and political leadership for the current context of care. We formulated some implications for practice and further research, mainly the need for more systematic empirical and cross cultural studies and the urgent need for the development of a validated set of nurse-sensitive patient outcome indicators.
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AN ESTEEMED correspondent points out that there are about two dozen library magazines of all sorts and sizes in circulation, whereas when he started his career there were no more…
Abstract
AN ESTEEMED correspondent points out that there are about two dozen library magazines of all sorts and sizes in circulation, whereas when he started his career there were no more than three. Our correspondent has himself had considerable editorial experience, and it may be that he is still in harness in that regard. One of his earliest efforts was in running the magazine of the old Library Assistants' Association, and it is not likely that that magazine has ever reached the same heights of excellence as it attained in his day. He observes that there are far too many library magazines now in circulation. We agree.
SEPTEMBER, as always, sees us contemplating our activities for the winter months. Exigencies of publishing compel us to write these notes a short time before that month begins…
Abstract
SEPTEMBER, as always, sees us contemplating our activities for the winter months. Exigencies of publishing compel us to write these notes a short time before that month begins, and our contemplation of things this year is coloured by the now rather remote possibility that September may bring the invasion that has been the shadow ahead for a year or more. To plan in a twilight time, as it were, is more than ordinarily difficult, and yet it is a commonsense and correct course to go on, not as if nothing could happen, but to the full extent of our means as they exist. Otherwise general paralysis would occur every time our statesmen warned us of possible attacks. There is no fear of such premature paralysis, however, as our people only want to be up and doing “with a heart for any date.”
Marion Hutchinson and Ferdinand A. Gul
Refers to previous research on investment opportunity sets, financing policies, board monitoring and directors’ shareholdings and the proportion of non‐executive directors (NEDs…
Abstract
Refers to previous research on investment opportunity sets, financing policies, board monitoring and directors’ shareholdings and the proportion of non‐executive directors (NEDs) on the board on the negative relationship between investment opportunities and leverage. Tests them on 1998 data from 437 top Australian companies, explains the methodology and presents the results, which suggest that the negative relationship (i.e. asset substitution or underinvestment) decreases with higher levels of executive director shareholdings or higher proportions of NEDs; and that underinvestment is greatest for firms with low management share ownership. Recognizes the limitations of the study and suggests some avenues for further research.
Marion Johnson and Scott Weich
Young men of African‐Caribbean origin are over‐represented in mental health services (MHSs), often entering these services by coercive routes, such as under the Mental Health Act…
Abstract
Young men of African‐Caribbean origin are over‐represented in mental health services (MHSs), often entering these services by coercive routes, such as under the Mental Health Act or via the criminal justice system. This pilot study focused on patients' narratives of their journey from first contact with primary care services. Our principal aim was to describe and compare early experiences of help‐seeking for serious mental health problems among young men of white and black ethnicity.In‐depth interviews were conducted (using a topic guide) with black and white men aged 18‐30 years old and who were accessing secondary care mental health services for the first time for a psychotic illness. Participants were recruited from the early intervention services serving inner‐city Birmingham. Seven participants were interviewed, and 12 themes were identified from transcripts. Six of these individuals had consulted their GP prior to accessing the early intervention service. Only one attendee received medication at initial consultation, and none were referred to specialist mental health services. Participants described the manner in which family or friends interceded on their behalf to advocate for and secure specialist help ‐ either by accompanying them to see their GP, contacting mental health services directly or taking them to the local accident and emergency department. The latter route was accessed by black but not white participants. Three out of four black participants and one out of three white participants were subsequently admitted to hospital. None of the participants were particularly satisfied with their experience of primary care. Communication was less than ideal, and participants were able to reflect on their own failure to disclose critical information to their doctor. By contrast, all participants confided in family or in their trusted friends that they were becoming aware that they were experiencing mental distress.Our findings confirm the difficulties faced by GPs and those who consult them in the early stages of first onset psychotic episodes, and the importance of having family or friends who are able to advocate on other people's behalf at times of crisis. Despite the advent of universal early intervention services across the UK, those most in need may still not be receiving the help that they need in the timeliest manner.
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Russell Cropanzano, Marion Fortin and Jessica F. Kirk
Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom…
Abstract
Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom been the subject of analysis in their own right. To address this limitation, we first consider three meta-theoretical dualities that are highlighted by justice rules – the distinction between justice versus fairness, indirect versus direct measurement, and normative versus descriptive paradigms. Second, we review existing justice rules and organize them into four types of justice: distributive (e.g., equity, equality), procedural (e.g., voice, consistent treatment), interpersonal (e.g., politeness, respectfulness), and informational (e.g., candor, timeliness). We also emphasize emergent rules that have not received sufficient research attention. Third, we consider various computation models purporting to explain how justice rules are assessed and aggregated to form fairness judgments. Fourth and last, we conclude by reviewing research that enriches our understanding of justice rules by showing how they are cognitively processed. We observe that there are a number of influences on fairness judgments, and situations exist in which individuals do not systematically consider justice rules.
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This paper examines whether the financial performance of the firm is associated with the risk‐taking propensity of executives, which is inferred from the structure of their share…
Abstract
This paper examines whether the financial performance of the firm is associated with the risk‐taking propensity of executives, which is inferred from the structure of their share option portfolio. The objective of this paper is to determine if executives have greater risk bearing preferences when they have more share options than shares in their firm. In turn, executives' risk‐taking preferences suggest that these decision‐makers adopt value‐increasing strategies. The results of this study support this notion. The results of the study of 182 Australian firms demonstrate that the negative relationship between firm risk and firm performance is weaker when executives hold a higher proportion of share options than shares in their investment in the firm. These results hold implications for executives' compensation contracts. That is, executives who share in their firms' risk via share options are more likely to undertake risky activities with high‐expected performance outcome.
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Communications regarding this column should be addressed to Mrs. Cheney, Peabody Library School, Nashville, Term. 37203. Mrs. Cheney does not sell the books listed here. They are…
Abstract
Communications regarding this column should be addressed to Mrs. Cheney, Peabody Library School, Nashville, Term. 37203. Mrs. Cheney does not sell the books listed here. They are available through normal trade sources. Mrs. Cheney, being a member of the editorial board of Pierian Press, will not review Pierian Press reference books in this column. Descriptions of Pierian Press reference books will be included elsewhere in this publication.