A Review of Dominant and Emerging Issues in Corporate Earnings Management

Samanthala Hettihewa, Ph.D., is a senior lecturer in finance, School of Business, University of Ballarat, Ballarat, Victoria, 3353, Australia. Christopher S. Wright, Ph.D., is a visiting researcher, Centre for Regional Innovation and Competitiveness, University of Ballarat, Victoria, 3353, Australia

An Extractive Sector Perspective of Risk Management and Its Influence on Corporate Sustainability: An Empirical Analysis

This study explores how risk management (RM), affects shareholder value (SV) and corporate sustainability (CS) in extractive-sector (ES) firms. Employees of Australia’s top 20 mining and oil-and-gas (O&G) firms were surveyed about their firm’s risk profile, risk attitudes, and RM practices. The survey drew 496 responses from 987 employees. The literature review raised several gaps: Does RM enhance SV and CS of ES firms; How similar is RM across ES firms; Are mining and O&G risks sufficiently different to warrant splitting them? The survey findings suggest that ES-firm risk profiles, risk attitudes, and RM practices are: Broader than in non-ES firms; Important to SV via CS; and Similar within and across mining and O&G. Survey responses suggest that ES employees recognize the nature of RM and of the importance of the ES sector via employment, investment, and raw-material flows. This study affirms that mining- and O&G-firmRM practices are converging and is a benchmark for future studies, as high-carbon energy (coal mining and O&G) is supplanted by nuclear and non-ES-renewable energy

The Impact of Macroeconomic Influence on Retirement Investments: A Case Study of New Zealand

This study investigates how aging populations affect stock prices in New Zealand, in particular, the effect of the 50-64 cohort moving from their peak investment decade into disinvestment from a dynamic perspective by considering fast- and slow-moving institutional changes for the period 1991-2017. A scientific LASSO approach is used to select macroeconomic variables which affect stock prices. The findings suggest that fast-moving institutional changes are mostly associated with unexpected market shocks rather than policy changes in terms of timing. Furthermore, there exists a long-run relationship between stock prices and aging population with the influence of other macroeconomic factors. However, aging population does not affect stock prices negatively, rejecting the predictions of LifeCycle and Permanent Income Hypotheses. The findings reveal that policies seeking to mitigate a stockmarket meltdown may be superfluous if the macroeconomic factors (such as real GDP and money supply) are ignore

Rapid onset of action of costus speciosus leaf extracts on insulin resistance in experimental wistar rats

Objectives: To evaluate the effect of Costus speciosusleaf methanol and water extracts on insulin resistance. Methods: Male rats were divided into five groups (n=6) and IR was induced by high fat diet (19.13% fats). CS leaf methanol extract (CSlmex) and water extract (CSlwex) were prepared using standard methods. Rats were treated daily for 30 days. Group1: 0.5% Carboxy methyl cellulose (CMC) 1ml, Group2: 500 mg/kg/day CSlmex in CMC, Group3: 500 mg/kg/day CSlwex, Group4: 1500 mg/kg/day CSlwex, Group5: Pioglitazone 10mg/kg/day. Serum was analysed for glucose, triglycerides and insulin at baseline and after one month. IR was calculated using indirect indices; HOMA, QUICKI and McAuley (McA). Results: All CS extracts significantly reduced the IR (p<0.05). 500mg/kg CSlmex reduced IR by HOMA, QUICKI, McA by 61.3%, 15.6%, 39.8% while 1500mg/kg CSlwex reduced HOMA by 66.6%, QUICKI by 16.1% and McA by 36.5% respectively. There was no significant change of IR in CMC group (p>0.05).IR had been reduced by pioglitazone (HOMA 32.4%, QUICKI 12.5%, McA 10%) after one month but not statistically significant (p>0.05). Conclusion: CS leaf water and methanol extracts are effective on reducing IR in rats. Pioglitazone was used as the positive control. Previous scientists had shown that pioglitazone needs minimum of three months to make a significant therapeutic effect on IR although pharmacological effect appears after one month. Our finding shows that CS may have a rapid onset of action on IR based on our biochemical evidence compared to pioglitazone. Therefore, pharmacodynamic studies are recommended to evaluate the dose response relationship.

Does an aging population influence stock markets? Evidence from New Zealand

The effect of the aging baby-boom-cohort on asset values is extensively studied. While that effect varies by country, there are likely to be commonalities. Thus, research on a relatively small advanced open economy like New Zealand can provide insight into the general effect. In this study monthly data from 1991 to 2017 is used to examine how aging population in New Zealand affects its stock market considering key demographic and non-demographic macroeconomic variables and a new focus on fast-and-slow-moving institutional change. The results suggest that the net effect of an aging population on stock markets is insignificant. However, real GDP and foreign portfolio investment (FPI) show a positive relationship with the stock market. The findings reveal that FPI can mitigate possible negative effects from aging in an open economy. Moreover, the policy implications of the study suggest that international-factor mobility, skilled-migration policies, and technology-based productivity growth can boost stock markets

Regional small business as an underappreciated response to globalisation-induced socio-economic instabilities

The realities of subgroups of regional small businesses (regional-SBs) are essential for proper policy process but are under-researched. This study explores and seeks to reduce the aforementioned gap. Firm-and-manager-specific attributes of regional-SBs (drawn from a sample of 500 Australian regional-SBs) are evaluated to determine if they differ from common perceptions of small businesses (SBs) and have predictive power in terms of regional-SBs. It was found that regional-SBs: Differ significantly from urban-SBs; Contribute significantly to regional socio-economic stability; Are far more robust and credit-worthy than generally perceived; and are influenced by the gender of their entrepreneurs. These findings can greatly serve the national interests of Australia and other countries. Specifically, as globalisation and technological change compel primary and secondary sectors to shed labour, regional-SBs sustain the socio-political stability of their regions by providing a means to soak-up redundant labour

Value Relevance of Accounting and Other Variables in the Junior-Mining Sector

Unique fundamentals and severe uncertainty in the junior-mining-sector (JMS) make valuing JMS ventures problematic. However, potentially enormous returns draw many investors into the JMS. While financialinstrument- pricing theory suggests that accounting values/ratios should have little influence on JMS-firm outcomes, this study’s simple OLS and Panel-data findings show strong correlation between those variables and JMS-firm-share prices. After discounting market failure, it is conjectured that JMS nonfinancial factors, share prices and accounting values are co-determined in a simultaneous relationship that is obscurely linked to outcomes. The notions uncovered in this study should greatly interest academics and business sector participants

Empowering Domestic Artisanal Fishers as Environmentally and Financially Sound Alternatives to Distant-water Fishing Vessels

In recent decades, distant-water fishing vessels (DWFVs) have drawn increasing criticism for exacerbating misery in developing nations. As part of a resolution to this issue, a coalition of academics, fishers, processors and others developing nations are field-testing new technologies to extend the fishing power and reach of local small-to-medium-boat artisanal fishers to empower them to displace DWFVs. In the preliminary field trials, the technology raised the fishing power of small-vessels by over seven-fold and quadrupled their maximum-effective-fishing depth to 400 meters. The second testing round will occur in Spring 2016 and will seek to increase the number of tests (and parallel controls) from ten-fold and expand the maximum effective fishing depth to 1,600 meters. Such capabilities will strengthen the ability of the governments of coastal developing countries to either exclude DWFVs from their exclusive economic zones (EEZs) or negotiate and enforce better agreements. Recognizing that new technology outcomes are often a mixed blessing, a vital part of this endeavor is to establish the best approach to release and use the innovations. Thus, at this point, the coalition is unwilling to release details on the new technologies. Instead, this paper documents the project’s intent, its field-test design/methodology, results and a vision for how its innovations might best be introduced to developing-nation fishers. This article should interest fisheries policy makers, processors, academics, artisanal fishers and diplomats.Keywords: Fisheries Economics, Fisheries Management and Development, Small-Scale Fisherie