Hadrian Geri Djajadikerta

Size, BM, and momentum effects and the robustness of the Fama‐French three‐factor model: Evidence from New Zealand

Purpose - This paper aims to confirm the existence of size, book to market (BM) and momentum effects in the New Zealand (NZ) stock market. It also aims to compare the performance of the CAPM, the Fama-French (FF) model, and Carharts model in explaining the variation of stock returns. Design/methodology/approach - The paper adapts the Fama and French methodology using a 2×3 size-BM ratio sort. It also forms three portfolios based on past returns to verify the momentum effect. Findings - The paper documents significant BM and momentum effects but a relatively weaker size effect. The paper finds some improvement in explanatory power provided by the FF model relative to the CAPM but it still leaves a large part of the variation in stock returns unexplained. The FF model is also unable to explain the strong momentum effect in New Zealand. Practical implications - The findings imply that: cost of capital estimates would be more accurate using Carharts model; portfolio managers can increase returns by investing in small and high BM firms that are recent winners; performance evaluation should take into account the size, BM, and momentum effects; and the existence of size and BM return premia appear to be rewards to risk bearing. Originality/value - The existing literature testing the robustness of the FF model in markets outside the USA is sparse, especially in emerging markets, with most of these studies suffering from data problems. The NZ stock market provides an interesting setting for such a study because of its unique characteristics.

Dysfunctional information system behaviors are not all created the same

We use a four-quadrant insider dysfunctional information system behavior taxonomy.We analyze intentions underlying behaviors among different dysfunctional behaviors.The intentions vary among dysfunctional information system behaviors.The causal links between behavioral intentions and their predictors vary.We address methodological concerns in the insider dysfunctional behaviors literature. Conflicting findings in the existing studies on insider dysfunctional information system (IS) behaviors have led some researchers to raise methodological concerns that samples in these studies are aggregated or disaggregated without sufficient attempt to differentiate their fundamental differences. Using a four-quadrant behavior taxonomy, this study investigates different types of dysfunctional information system behaviors to determine if, among them, there are any differences in behavioral intentions and in the causal links between these intentions and their predictor variables. The results show that both the intentions and the causal links between these intentions and their predictors vary among the four behavior categories.

Hard and soft sustainability disclosures: Australia’s resources industry

Purpose - While studies in corporate sustainability have been vastly growing, there has been an increasing demand for more industry-specific sustainability reporting studies to develop a greater understanding of industry differences in sustainability reporting practice. This study aims to measure the quality of sustainability disclosures in the current leading environmentally sensitive industry in Australia – the resources industry. Design/methodology/approach - A scoring index was developed to measure economic, social and environmental aspects of sustainability by integrating the fundamental principles of the hard and soft disclosure items from Clarkson et al.’s (2008) environmental index into the social and economic aspects of the GRI framework. Subsequently, the index was used to assess sustainability disclosures in the annual and sustainability reports of resources companies in Australia. Findings - The main findings show that companies report more soft than hard disclosure items. It is also found that companies report most sustainability information in the economic aspect rather than the social and the environmental aspects of sustainability. Most companies disclose sustainability information in their annual reports with few companies producing stand-alone sustainability reports. Originality/value - This study addresses the need for more industry-specific sustainability studies by focusing on Australia’s resources industry. It also contributes to the lack of an existing tool to measure disclosures based on companies’ true contributions to sustainability by developing a new scoring index for hard and soft sustainability disclosures which includes all three aspects of sustainability (i.e., economic, environmental and social).

PLS-SEM Approach to Second-order Factor of Deviant Behaviour: Constructing Perceived Behavioural Control

Abstract Partial least square structural equation modelling (PLS-SEM) provides researchers with a predictive tool for theory building. In an attempt to understand deviant behaviour which can potentially become a criminal offence, PLS-SEM opens up a valuable mean to analyse latent constructs are designed from a composite of indicators. At its basic, this is called a first-order variable. Using the first-order variable in a basic predictor-criterion research model illuminates in-depth structure on how each component of these variables affects each other. However, as an analysis moves to a more complex level, the first-order variable poses a great challenge to the researchers. This is especially true when the main focus of a study is to look at a general predisposition of a group of related first-order variables with the criterion. Nevertheless, driven by sufficient theories and validated by appropriate statistical tests, related first-order latent variables can be funnelled into a higher-order latent construct. This in turn, helps to reduce complexity of the overall research model allowing more interpretable output and concise discussions.

Perceived Importance of Corporate Sustainability Disclosure: Evidence from China

While effective sustainability reporting frameworks have become more important as sustainability disclosures have become integrated with the current economy, their complexity and users’ different expectations often deter the practice of sustainability reporting. This chapter offers an insight into users’ perceived importance of the indicators in the Global Reporting Initiative (GRI) reporting framework based on a study in China , which represents an Asian giant economy with differences from the Western developed countries that the reporting frame-works were mostly developed around. The findings show that Chinese users’ perceived the relative importance of the indicators differently, with issues such as the environment being emphasised. This understanding needs to be considered in the future development of sustainability reporting and policies.

Computerised Accounting Information Systems and Firm Performance: The Mediating Role of Transparency

Accounting information system (AIS) is central to an organisation, providing valuable data for decision-makers. While many studies look into the impact of technology fit and corporate governance (CG) on firm performance, this study investigates how a component of CG (transparency), capability of AIS, executive visions (EV) and information technology (IT) skill impact on firm performance. Using a resource-based view (RBV) framework, hypothesised relationships among variables of interest were examined based on data collected from 336 small and medium-sized enterprises (SMEs) in Malaysia. Results from partial least square (PLS) analysis suggest that effects of AIS on firm performance were partially moderated by information transparency, a component of CG, while a full moderation effect was found for EV and IT skill on firm performance. The results thus demonstrate the importance of transparency and AIS to a greater height, prompting SMEs to revisit their policies on AIS, staff training and largely transparency to better improve firm performance.

How system complexity and organizational culture affect AIS misuse

Abstract The demands for more studies on precarious practices in the AIS environment indicate that employees pose greater threats than outsiders. Addressing internally-bred security pandemonium with external-threat-oriented solutions further complicates the matter. The real issue is obscured rather than solved. Based on theory of planned behaviour (TPB), organisational culture and complexity of an accounting information system (AIS) were introduced to see how these factors affect employees’ mal-intention when working with an organisation AIS. Using partial-least-square structural equation modelling (PLS-SEM) approach, it was found that culture and complexity acting as pure moderating variables affecting certain forms of predictor-criterion relationship in TPB model. Within the context of this study, the results explain how culture and system complexity induce or reduce the predictors’ effects on intention to misbehave.

The Perceptions and Challenges of Corporate Sustainability Reporting in China

The connection between the respect of sustainable development and joint rules of conduct in international trade has increased dramatically in recent years. Many countries have promoted sustainability development and requirement with their trading partners both in the West and the East-Asian Region. This has led corporate sustainability disclosures to become a vital role that facilitates international trade. Although recently there have been numerous studies that investigate corporate sustainability disclosures in China, understanding the perceived importance of this form of disclosure cannot be ignored for analyses. Consequently, the purpose of this study is to provide exploratory evidence, showing the users’ perceived importance in corporate sustainability in China and addressing to what extent it is different from what was intended in the GRI guidelines. This study examines three sustainable aspects, which are corporate environmental, economic and social disclosures. The findings in this study provide an indication that what was intended in GRI may not be so important in China. Although there are indicators shown to be different from what was intended in the GRI guidelines, 50 % of the items remain to be significant when analysing CSD in China.

Executive Perceptions of Corporate Social and Environmental Disclosure

In the last four decades, the practice of corporate social and environmental disclosure (CSED) has been increasing in popularity and acceptance among business entities, scholars and practitioners. However, it has been found that the practice of CSED in developing countries is still very limited. This paper conducts in-depth semi-structured interviews to seek perceptions of Indonesian executives about CSED through the lens of stakeholder and legitimacy theories. Evidence from the interviews offers some indications about the level of managerial understanding regarding CSED, the motivations for CSED, and the preferred means for disclosure. The paper reflects on the managerial implications of the findings for future practices.

Australian women academics’ career advancement

In the lack of comprehensive empirical research that combines both personal and systemic perspectives of women academics’ career advancement, this paper provides some suggestions on the factors that affect career progression of women academics in Australia. Data were collected from women academics in Australia using a Web questionnaire designed to cover all four major workplace dimensions: individual, human capital, interpersonal, and organizational. Overall, human capital is found to be the reason for Australian women academics’ advancement to the Professorial classifications. The contribution of the interpersonal and organizational dimensions to that explanation is modest, and no explanation is obtained from the individual dimension.