Family Ownership Type and the Intemational Involvement of SMEs： Empirical Study of Agency Theory in East Java Indonesia

This paper briefly draws the dimension of small, micro and medium enterprises＇ （SMEs） behavior in terms of internationalization strategy based on the ownership structure among SMEs in East Java. The finding is very interesting when there is no ownership structure variation, so the decision to choose international involvement could not be supported. Also, the scale determination is not becoming constraint of SMEs in East Java to involve internationally, especially thought export strategy. However, several aspects are considered to control the export behavioral dimension which is research and development （R＆D） and sales, significantly. The result shows that there still are other elements except ownership type could impact internationalization strategy choices of SMEs in East Java.

LBOs in Theory and Practice, Learning Outcomes of a Crisis

The purpose of this paper is to examine whether or not a financial crisis has an impact on the use of financial tools like MBO （management buy-outs）. For a long time LBO （leveraged buyout） has being considered as an easy and tax saving way to transfer the property rights of SMEs companies. Financial markets speculation on the same time used this tool in a non reasonable way and transformed it on a bubble increasing furthermore the financial crisis. In a certain extend this paper proves that what happened is a remake of what happened in the late 1990. From a theoretical point of view the article proves that the LBO＇s are just a partial answer to the agency problems very present to the literature.

Franchise ownership redirection:real options perspective

Background:For over 40 years,the franchise ownership redirection hypothesis has attracted the attention of many scholars.This study,differing from previous ones,proposes an alternative approach for this hypothesis using a real options framework with the extension of agency theory.Method:The real options model is built using the least square Monte Carlo method,where the franchisor’s decision to franchise is perceived as a deferred investment while maintaining the right of future acquisition.Result:Tested using monte carlo simulation based hypothetical case,the model shows a different result from classical real options call model.This is mainly due to franchise contractual arrangement,where royalty fee lower the threshold of acquisition cost in converting the franchise outlet to company owned.Conclusion:The aim of this study is to create an analytical framework that helps a franchisor decide whether or not toacquire and convert a franchise unit to a company-owned unit at a certain point in time,analyzing the choice as a deferment of investment.The franchisors that faces the opportunity to optimize profit by converting the franchise unit to a company-owned unit should acknowledge it as real options thus negotiate the terms with their franchisees.

The ＂Production＂ of Accounting Information Between Regulatory and Free Market Approach： An （Eternally） Open Issue

Accounting information has gained utmost importance over the years, and it now plays a vital role in our society. Indeed, the trends of a global economy, especially one relying on a capital market-based financial system, are greatly influenced by reliable accounting information. However, it is sometimes difficult to assess the ＂reliability＂ of such information, given the clear differences in the needs and goals of its different users. In this respect, the possible ways to guarantee the appropriateness of the accounting information provided to users doubtlessly deserve a careful investigation. The second half of the 1970s can be considered as the starting point of a debate, within the Anglo-Saxon accounting literature, concerning the most effective methods to provide users with accounting data effectively meeting their very specific needs. In this context, two antithetical schools of thought developed： （1） free market approach; and （2） regulatory approach. Although it is possible to state that accounting regulation has now become a concrete reality both inside and outside the Anglo-Saxon accounting context, after more than halfa century, its efficacy is still an open issue.

Financial Reporting Dilemmas for the Maltese Local Government

Maltese Local Councils are required to prepare financial reports compliant with International Financial Reporting Standards （IFRS）. Through documentary research, this study examined the suitability of this requirement and implications for institutional relationships. This study showed that IFRS statements are problematic to produce and interpret at the local level of government, and that, on their own, they are undermining the control needs of the Central Government. This study highlighted the important role of financial reporting for accountability by showing that the use of financial reporting systems that do not fit the reporting entity may actually lead to avoidance of accountability by mystifying reality.

Do Company Directors Underestimate the Adoption of Corporate Governance Provisions？ A Survey Approach

This paper examines whether company directors underestimate the adoption of corporate governance provisions within Ghanaian listed firms. Using a survey approach, the respondents, who were company executives and non-executive directors with knowledge of the Ghanaian Code and its provisions, regard the code as a benchmark for good corporate governance practices within Ghanaian listed firms. They also report some improvement in the standard of corporate governance in their companies since the introduction of the Code. Many of the company directors indicated their preparedness to comply with further corporate governance requirements, such as the adoption of a formal nomination committee something not been currently included in the Ghanaian Code. However, the directors noted that they receive inadequate support from the regulatory and institutional bodies for the implementation of the Ghanaian Code provisions. Many of the directors also supported the review of the Ghanaian Code by an independent committee. With regard to the adoption of the Ghanaian Code and its influence on firm performance, the respondents indicated that the adoption of the specific governance provisions in the area of chief executive officer （CEO）/chairman roles separation, having a balance of executive and non-executive directors on the board, the establishment of audit and remuneration committees, and the full adoption of the Ghanaian Code provisions were all influential in determining firm performance. They, however, did not support the adoption of the board size provision as influential to firm performance. This raises questions about the usefulness of the range of board size as recommended by the Ghanaian Code.

Addressing On-board Assaults and Driver Health and Well-Being： A Voluntary Professional Association＇s Approach

This paper provides an account of how a voluntary professional association （or industry representative body） in Victoria, Australia, led a whole-of-industry response to an alarming increase in on-board assaults on bus drivers by passengers, and the resulting impact on drivers＇ health and well-being. Influenced by literature and guided by the results from two commissioned research pieces, the association developed and implemented a five pillar strategy to address these issues. A stakeholder perspective was adopted to develop the strategy in order to ensure high relevance and value by being as inclusive as possible across the entire industry, and agency theory underpinned the association＇s implementation of the strategy. It is hoped that this case study exemplar will assist increase the productivity and social capital of an industry. others in utflising theory for policy change with a view to

The Impact of Incentives on the Number of Suppliers

In the context of adulteration by suppliers,downstream firms need to choose between incentives and regulation to ensure product quality.Studies have shown that the adulteration behavior of suppliers increases with the degree of dispersion of suppliers,that is,the number of suppliers increases.Therefore,based on the assumption that the number of suppliers impacts quality uncertainty,this paper further introduces the number of suppliers into the incentive model to investigate the relationship between supply chain dispersion,that is,the number of suppliers,social integrity,and incentive strength.The study finds that the optimal number of suppliers depends on social integrity,regulatory cost,and incentive strength.There is a positive correlation between social integrity and the number of suppliers,while regulatory costs and incentive strength have a negative correlation with the number of suppliers.That means,the higher the social integrity,the lower the regulatory cost;and the lower the incentive intensity,the more optimal suppliers can be selected.

Corporate Governance and Firm Performance: A Sociological Analysis Based on Chinese Experience

Based on the 1997-2007 panel data of 676 listed companies and in-depth interviews with the senior executives, independent directors, fund managers and securities analysts of these companies, this paper tries to analyze the relationship between corporate govemance and firm performance from a sociological perspective. The results show that the relationship between corporate governance and firm performance in the Chinese institutional environment is sharply different from the predictions of the agency theory. The empirical findings from China lend strong support to the new institutional argument that ＂besf＇ corporate governance practices are socially ＂constructed＂ by various social forces and interests groups in specific social, political and cultural contexts, and how ＂good＂ a corporate governance practice is depends to a large extent on whether it fits in with the institutional environment in which it is embedded. There exists no universally ＂best＂ model of corporate governance across the world. Our empirical sociological study based on Chinese experience offers new perspectives and evidence for deconstructing the global myth ofcoroorate ~ovemance.

Performance Measurement and Faculty Pay

In classic agency models, first best efficiency can′t be achieved due to the trade-off between risk and incentives except that agency is risk neutral. Whereas if the principal′s objective is not contractible, an alternative objective performance measurement which is contractible is always proposed. However, if the reaction of this objective performance measurement to agency′s effort differs from that of the principal′s objective, the agent would game performance measures, which leads to loss of efficiency, even if agency is risk neutral. By adding subjective weights on objective measures, or combination of subjective performance measurement with objective performance measurement, efficiency can be regained. Implications for faculty pay are also discussed.

High ownership concentration and exporting of emerging market firms： evidence from Peru

Despite the extraordinarily high ownership concentration widely observed in emerging market firms as a result of institutional voids, there is little research on how this high ownership concentration affects the exporting behavior of emerging market firms. From principal-agent and institutional perspectives, we hypothesize that high ownership concentration has a negative relationship with export intensity, because, in emerging markets, highly concentrated ownership bridges the interests of owners （principals） and managers （agents） so that principals must be prudent in exploring risky international markets. Moreover, we hypothesize that export country diversification strengthens the relationship between ownership concentration and export intensity, because broad geographic dispersion increases risk exposure and principal-agent problems. Empirical analysis based on a panel dataset for publicly listed firms in Peru from 2005 to 2014 supports the hypotheses. The study highlights the risk aversion attitude activated by ownership concentration, an attitude that protects emerging market firms from overconfidently exploring international business opportunities. The study extends the conventional literature on the interface between ownership concentration and international business in an emerging market context. We also discuss the generalizability of the findings to other emerging markets, e.g. China.