Tek Lama - Academia.edu (original) (raw)

Papers by Tek Lama

Research paper thumbnail of Available at:http://ro.uow.edu.au/aabfj/vol6/iss5/5 Empirical Evidence on the Link Between Compliance with Governance of Best Practice and Firms ' Operating Results

This study provides robust evidence in support of the agency theory argument that corporate gover... more This study provides robust evidence in support of the agency theory argument that corporate governance matters for a firm’s operating performance. Using the corporate governance ratings as the governance proxy from Horwath 2006 Corporate Governance Report (mid-sized Australian ASX companies) and Mid-Cap Corporate Governance Report 2007 (The University of Newcastle 2006; 2007), I examine 60 sample firms to reveal that a firm’s governance is positively and significantly related to firm performance as measured by return on equity, earning yield and return on assets. This study extends the findings of these two reports which found a disturbing trend in the corporate governance practice of Australian mid-cap companies – both a decrease in companies with excellent corporate governance, and an increase in companies with significant corporate governance deficiencies. The findings of this study suggest that those mid-size companies who have allowed corporate governance to deteriorate have ad...

Research paper thumbnail of Student Evaluation of Teaching surveys: do students provide accurate and reliable information?

AbstractPurpose- This paper explores patterns of students' response behaviour of internationa... more AbstractPurpose- This paper explores patterns of students' response behaviour of international students studying in an Australian university when filling out student surveys evaluating lecturers and courses. The study focuses on whether information obtained through the survey process can be relied upon to make management decisions.Design/methodology/approach- Data for this study was collected from the Student Evaluation of Teaching and Student Evaluation of Units surveys of 74 students across four different classes at a university campus in Australia which caters education solely to international students. The data was analysed using both descriptive and econometric analytical methods.Results / findings- The results of the study seem to suggest a reasonable level of diligence is lacking on the students' part in answering the surveys, raising a concern about the reliability of information. This tendency seems to be prevalent among all students irrespective of their gender and...

Research paper thumbnail of Company characteristics and compliance with ASX corporate governance principles

Pacific Accounting Review, 2015

Purpose – This study aims to examine whether company characteristics determine the structure and ... more Purpose – This study aims to examine whether company characteristics determine the structure and composition of a company’s board. In particular, it investigates the three board-design choices that Australian-listed companies make in the context of Australian Stock Exchange (ASX) corporate governance principles (published in 2003) where they are allowed to depart from the recommended best-practice board structure if the departure better serves their unique board and governance requirements. Design/methodology/approach – A logistic regression is performed on a cross-section of data for 258 ASX-listed companies averaged over the years 2004 to 2007, using the company variables size, age, leverage, ownership concentration, profitability, liquidity, price-earnings ratio, market-to-book ratio and cross-listing. Findings – The study finds that size has a strong, statistically significant impact on all three principles. Ownership concentration, price-earnings ratio and age have statisticall...

Research paper thumbnail of Casualization of Academics in the Australian Higher Education: Is Teaching Quality at Risk?

Research in Higher Education Journal, May 1, 2015

This article explores the issues casual academics face in Australia and whether these pose risks ... more This article explores the issues casual academics face in Australia and whether these pose risks to teaching quality. The logic of the rampant casualisation in Australian universities is exposed first (i.e., mainly flexibility and cost saving to offset drops in government funding), followed by a discussion on the theoretical risks casualisation generates to teaching quality. Among these, one can include: less skilled, less professionallyequipped and less secure teaching staff, fewer inputs from up-to-date research, compromised academic and professional integrity. Indeed, surveys indicate that casual academics in Australian higher education providers have to cope with, among other issues, inadequate working conditions, lack of job security, differences in treatment as compared to full-time faculty and little support to engage in research activities. These findings compose a grim outlook of Australian academia, one that can jeopardise the contribution of higher education to Australia's economy and export accounts. Debate on these matters cannot be postponed much further: strategies to mitigate the risks uncovered are required now.

Research paper thumbnail of Is There Economic Rationale for Governance of Best Practices: Evidence from Australian ‘Mid Size’ Listed Companies

SSRN Electronic Journal, 2012

This study investigates whether there is economic rationale for governance of best practices part... more This study investigates whether there is economic rationale for governance of best practices particularly as stipulated in the Australian Stock Exchange’s (ASX) corporate governance guidelines. This study extends the findings of the 2006 Horwath Mid-Cap Corporate Governance Report that found relatively weak corporate governance practices among Australian listed ‘mid size’ companies. The analysis of 126 companies, included in the report based on the availability of necessary data, shows that the firm’s level of compliance with governance of best practice is associated with its performance but the association appears tentative only. However, the findings of the study do not support the suggestion that the effect of governance flows through over the time. This is consistent with efficient market hypothesis and Australia’s continuous disclosure rule which requires companies to make timely disclosure of market-sensitive information.

Research paper thumbnail of Mandatory Audit Committees in Australia: Are There Economic Justifications?

SSRN Electronic Journal, 2010

The introduction of the ASX guidelines and the subsequent introduction of the Listing Rule 12.70 ... more The introduction of the ASX guidelines and the subsequent introduction of the Listing Rule 12.70 resulted in mandatory audit committees for the top 500 ASX listed companies effective from 1 January 2003. Non-top 500 firms, therefore, do not have to have audit committees as they are not subject to the Listing Rule 12.70. However, these firms are subject to Listing Rule 4.10.3 and therefore, either must have audit committee or explain why not. This provided the unique opportunity for a comparative study between the firms that have audit committees and those that do not. Taking an advantage of the opportunity, this paper investigated whether the new regulation mandating an audit committee is economically justified or simply window dressing. Each firm's beta (β) and return on assets (ROA) are used as surrogates for economic benefits. After controlling for firm size, financial leverage, board size, CEO duality and industry sector, the empirical results of 100 sampled firms showed conflicting evidence in support of the hypothesises that firms with an audit committee are better able to manage risk and they also utilized firms' resources more effectively than those without audit committees.

Research paper thumbnail of Board Subcommittees: If Not, Why Not?

Accounting and Finance Research, 2014

This study examines factors that may influence a company's decision to comply or (depart) from ce... more This study examines factors that may influence a company's decision to comply or (depart) from certain ASX recommended governance of best practice under the ASXCGC's 'if not, why not' corporate governance framework. In particular, it investigates 2 recommended practices relating to the board subcommittees and whether any particular factors determine a company's decision to comply with those practices. The investigation of 268 Australian Stock Exchange (ASX) listed companies using panel data between 2004 and 2007 provides statistically convincing evidence that certain factors are likely to influence the company's responses with respect to board subcommittee related best practices. This finding is consistent with the underlying philosophy of the 'if not, why not' corporate governance framework and generally accepted view that when it comes to corporate governance; one-size-does-not-fit-all.

Research paper thumbnail of “If not, why not” form of governance: Do firm-specific variables explain the nature of justification?

Accounting Research Journal, Jul 1, 2019

Purpose Are the explanations that companies provide when deviating from two board structure-relat... more Purpose Are the explanations that companies provide when deviating from two board structure-related best practices under the Australian Stock Exchange’s “If not, why not” regulatory regime systematically influenced by company characteristics? Design/methodology/approach Multinomial logistic regressions are performed on a sample of 258 ASX-listed firms in the period 2004-2007. The dependent variable is the level of response to the “why not” pillar of the regime which requires companies to provide an explanation where they deviate from the recommended governance practice or practices. The variable is categorised into three levels: zero response, inadequate explanation and adequate explanation. This variable takes on a fourth possible level (full compliance) if both pillars of the regime are considered jointly. The independent variables are company size, ownership concentration, profitability, liquidity, age and the market-to-book ratio. Findings The regime appears to be well specified, but size is positively correlated to the quality of explanations given for the deviation. Other company characteristics have no important systematic effect. Practical implications Small firms, while availing of the regulatory flexibility that enables them to adopt governance systems that suit their corporate governance requirements, tend not to meet the reporting requirements that go with that flexibility. Originality/value To the best of the authors’ knowledge, this paper is one of the first to explore the justifications given for deviations from full compliance in the “if not why not” regime and covers new ground with respect to explanations given for non-adoption of board structure recommendations.

Research paper thumbnail of An examination of the application of the 'if not, why not' form of corporate governance in Australia

This thesis provides a greater understanding of the dynamics of the application of the 'if not, w... more This thesis provides a greater understanding of the dynamics of the application of the 'if not, why not' model to corporate governance both in terms of impact on stock return volatility and on understanding the factors which influences corporate governance. This insight would not have been possible if all companies were forced to comply regardless of their circumstances.

Research paper thumbnail of The impact of the Australian Stock Exchange's corporate governance codes on investor confidence

Research paper thumbnail of The role of organisational culture in organisational change towards sustainability: evidence from the garment manufacturing industry

Production Planning & Control

This paper explores the competing role of organisational culture in organisational change towards... more This paper explores the competing role of organisational culture in organisational change towards sustainability. Drawing on the competing values framework, data was collected by interviewing senior executives and sustainability managers of a leading multinational garment manufacturing organisation based in Sri Lanka. The study finds that organisational culture tends to play a proactive role by going beyond the compliances and regulatory requirements in organisational change towards sustainability. Four competing cultural values appear to shape their corporate sustainability approach, namely (i) people-oriented changes (e.g. empowerment, training, development, team orientation, leadership), (ii) growth-oriented changes (e.g. sustainability innovations, continuous improvements, community engagement), (iii) productivity-and efficiency-oriented changes (e.g. use of professional recommendations, open communication), and (iv) stability-and control-oriented changes (e.g. sustainability budgeting, investment appraisal, life-cycle assessment). The case organisation is more likely to be driven by an integrated approach of the four competing cultural values rather than by one dominant approach. The study contributes to the organisational culture and sustainability literature by highlighting the importance of aligning competing cultural values as a means of addressing sustainability challenges, in the much-debated garment manufacturing industry in the South Asian context. Finally, a framework for sustainability organisational culture is proposed.

Research paper thumbnail of If Not, Why Not' Form of Governance: Do Firm-specific Variables explain the Nature of Justification?

Accounting Research Journal

Purpose Are the explanations that companies provide when deviating from two board structure-relat... more Purpose Are the explanations that companies provide when deviating from two board structure-related best practices under the Australian Stock Exchange’s “If not, why not” regulatory regime systematically influenced by company characteristics? Design/methodology/approach Multinomial logistic regressions are performed on a sample of 258 ASX-listed firms in the period 2004-2007. The dependent variable is the level of response to the “why not” pillar of the regime which requires companies to provide an explanation where they deviate from the recommended governance practice or practices. The variable is categorised into three levels: zero response, inadequate explanation and adequate explanation. This variable takes on a fourth possible level (full compliance) if both pillars of the regime are considered jointly. The independent variables are company size, ownership concentration, profitability, liquidity, age and the market-to-book ratio. Findings The regime appears to be well specified...

Research paper thumbnail of Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure

Business Strategy and the Environment

Research paper thumbnail of Empirical Evidence on the Link Between Compliance with Governance of Best Practice and Firms' Operating Results

Australasian Accounting Business and Finance Journal, 2013

This study provides robust evidence in support of the agency theory argument that corporate gover... more This study provides robust evidence in support of the agency theory argument that corporate governance matters for a firm's operating performance. Using the corporate governance ratings as the governance proxy from Horwath 2006 Corporate Governance Report (mid-sized Australian ASX companies) and Mid-Cap Corporate Governance Report 2007 (The University of Newcastle 2006; 2007), I examine 60 sample firms to reveal that a firm's governance is positively and significantly related to firm performance as measured by return on equity, earning yield and return on assets. This study extends the findings of these two reports which found a disturbing trend in the corporate governance practice of Australian mid-cap companies-both a decrease in companies with excellent corporate governance, and an increase in companies with significant corporate governance deficiencies. The findings of this study suggest that those mid-size companies who have allowed corporate governance to deteriorate have adversely affected their shareholder returns.

Research paper thumbnail of Available at:http://ro.uow.edu.au/aabfj/vol6/iss5/5 Empirical Evidence on the Link Between Compliance with Governance of Best Practice and Firms ' Operating Results

This study provides robust evidence in support of the agency theory argument that corporate gover... more This study provides robust evidence in support of the agency theory argument that corporate governance matters for a firm’s operating performance. Using the corporate governance ratings as the governance proxy from Horwath 2006 Corporate Governance Report (mid-sized Australian ASX companies) and Mid-Cap Corporate Governance Report 2007 (The University of Newcastle 2006; 2007), I examine 60 sample firms to reveal that a firm’s governance is positively and significantly related to firm performance as measured by return on equity, earning yield and return on assets. This study extends the findings of these two reports which found a disturbing trend in the corporate governance practice of Australian mid-cap companies – both a decrease in companies with excellent corporate governance, and an increase in companies with significant corporate governance deficiencies. The findings of this study suggest that those mid-size companies who have allowed corporate governance to deteriorate have ad...

Research paper thumbnail of Student Evaluation of Teaching surveys: do students provide accurate and reliable information?

AbstractPurpose- This paper explores patterns of students' response behaviour of internationa... more AbstractPurpose- This paper explores patterns of students' response behaviour of international students studying in an Australian university when filling out student surveys evaluating lecturers and courses. The study focuses on whether information obtained through the survey process can be relied upon to make management decisions.Design/methodology/approach- Data for this study was collected from the Student Evaluation of Teaching and Student Evaluation of Units surveys of 74 students across four different classes at a university campus in Australia which caters education solely to international students. The data was analysed using both descriptive and econometric analytical methods.Results / findings- The results of the study seem to suggest a reasonable level of diligence is lacking on the students' part in answering the surveys, raising a concern about the reliability of information. This tendency seems to be prevalent among all students irrespective of their gender and...

Research paper thumbnail of Company characteristics and compliance with ASX corporate governance principles

Pacific Accounting Review, 2015

Purpose – This study aims to examine whether company characteristics determine the structure and ... more Purpose – This study aims to examine whether company characteristics determine the structure and composition of a company’s board. In particular, it investigates the three board-design choices that Australian-listed companies make in the context of Australian Stock Exchange (ASX) corporate governance principles (published in 2003) where they are allowed to depart from the recommended best-practice board structure if the departure better serves their unique board and governance requirements. Design/methodology/approach – A logistic regression is performed on a cross-section of data for 258 ASX-listed companies averaged over the years 2004 to 2007, using the company variables size, age, leverage, ownership concentration, profitability, liquidity, price-earnings ratio, market-to-book ratio and cross-listing. Findings – The study finds that size has a strong, statistically significant impact on all three principles. Ownership concentration, price-earnings ratio and age have statisticall...

Research paper thumbnail of Casualization of Academics in the Australian Higher Education: Is Teaching Quality at Risk?

Research in Higher Education Journal, May 1, 2015

This article explores the issues casual academics face in Australia and whether these pose risks ... more This article explores the issues casual academics face in Australia and whether these pose risks to teaching quality. The logic of the rampant casualisation in Australian universities is exposed first (i.e., mainly flexibility and cost saving to offset drops in government funding), followed by a discussion on the theoretical risks casualisation generates to teaching quality. Among these, one can include: less skilled, less professionallyequipped and less secure teaching staff, fewer inputs from up-to-date research, compromised academic and professional integrity. Indeed, surveys indicate that casual academics in Australian higher education providers have to cope with, among other issues, inadequate working conditions, lack of job security, differences in treatment as compared to full-time faculty and little support to engage in research activities. These findings compose a grim outlook of Australian academia, one that can jeopardise the contribution of higher education to Australia's economy and export accounts. Debate on these matters cannot be postponed much further: strategies to mitigate the risks uncovered are required now.

Research paper thumbnail of Is There Economic Rationale for Governance of Best Practices: Evidence from Australian ‘Mid Size’ Listed Companies

SSRN Electronic Journal, 2012

This study investigates whether there is economic rationale for governance of best practices part... more This study investigates whether there is economic rationale for governance of best practices particularly as stipulated in the Australian Stock Exchange’s (ASX) corporate governance guidelines. This study extends the findings of the 2006 Horwath Mid-Cap Corporate Governance Report that found relatively weak corporate governance practices among Australian listed ‘mid size’ companies. The analysis of 126 companies, included in the report based on the availability of necessary data, shows that the firm’s level of compliance with governance of best practice is associated with its performance but the association appears tentative only. However, the findings of the study do not support the suggestion that the effect of governance flows through over the time. This is consistent with efficient market hypothesis and Australia’s continuous disclosure rule which requires companies to make timely disclosure of market-sensitive information.

Research paper thumbnail of Mandatory Audit Committees in Australia: Are There Economic Justifications?

SSRN Electronic Journal, 2010

The introduction of the ASX guidelines and the subsequent introduction of the Listing Rule 12.70 ... more The introduction of the ASX guidelines and the subsequent introduction of the Listing Rule 12.70 resulted in mandatory audit committees for the top 500 ASX listed companies effective from 1 January 2003. Non-top 500 firms, therefore, do not have to have audit committees as they are not subject to the Listing Rule 12.70. However, these firms are subject to Listing Rule 4.10.3 and therefore, either must have audit committee or explain why not. This provided the unique opportunity for a comparative study between the firms that have audit committees and those that do not. Taking an advantage of the opportunity, this paper investigated whether the new regulation mandating an audit committee is economically justified or simply window dressing. Each firm's beta (β) and return on assets (ROA) are used as surrogates for economic benefits. After controlling for firm size, financial leverage, board size, CEO duality and industry sector, the empirical results of 100 sampled firms showed conflicting evidence in support of the hypothesises that firms with an audit committee are better able to manage risk and they also utilized firms' resources more effectively than those without audit committees.

Research paper thumbnail of Board Subcommittees: If Not, Why Not?

Accounting and Finance Research, 2014

This study examines factors that may influence a company's decision to comply or (depart) from ce... more This study examines factors that may influence a company's decision to comply or (depart) from certain ASX recommended governance of best practice under the ASXCGC's 'if not, why not' corporate governance framework. In particular, it investigates 2 recommended practices relating to the board subcommittees and whether any particular factors determine a company's decision to comply with those practices. The investigation of 268 Australian Stock Exchange (ASX) listed companies using panel data between 2004 and 2007 provides statistically convincing evidence that certain factors are likely to influence the company's responses with respect to board subcommittee related best practices. This finding is consistent with the underlying philosophy of the 'if not, why not' corporate governance framework and generally accepted view that when it comes to corporate governance; one-size-does-not-fit-all.

Research paper thumbnail of “If not, why not” form of governance: Do firm-specific variables explain the nature of justification?

Accounting Research Journal, Jul 1, 2019

Purpose Are the explanations that companies provide when deviating from two board structure-relat... more Purpose Are the explanations that companies provide when deviating from two board structure-related best practices under the Australian Stock Exchange’s “If not, why not” regulatory regime systematically influenced by company characteristics? Design/methodology/approach Multinomial logistic regressions are performed on a sample of 258 ASX-listed firms in the period 2004-2007. The dependent variable is the level of response to the “why not” pillar of the regime which requires companies to provide an explanation where they deviate from the recommended governance practice or practices. The variable is categorised into three levels: zero response, inadequate explanation and adequate explanation. This variable takes on a fourth possible level (full compliance) if both pillars of the regime are considered jointly. The independent variables are company size, ownership concentration, profitability, liquidity, age and the market-to-book ratio. Findings The regime appears to be well specified, but size is positively correlated to the quality of explanations given for the deviation. Other company characteristics have no important systematic effect. Practical implications Small firms, while availing of the regulatory flexibility that enables them to adopt governance systems that suit their corporate governance requirements, tend not to meet the reporting requirements that go with that flexibility. Originality/value To the best of the authors’ knowledge, this paper is one of the first to explore the justifications given for deviations from full compliance in the “if not why not” regime and covers new ground with respect to explanations given for non-adoption of board structure recommendations.

Research paper thumbnail of An examination of the application of the 'if not, why not' form of corporate governance in Australia

This thesis provides a greater understanding of the dynamics of the application of the 'if not, w... more This thesis provides a greater understanding of the dynamics of the application of the 'if not, why not' model to corporate governance both in terms of impact on stock return volatility and on understanding the factors which influences corporate governance. This insight would not have been possible if all companies were forced to comply regardless of their circumstances.

Research paper thumbnail of The impact of the Australian Stock Exchange's corporate governance codes on investor confidence

Research paper thumbnail of The role of organisational culture in organisational change towards sustainability: evidence from the garment manufacturing industry

Production Planning & Control

This paper explores the competing role of organisational culture in organisational change towards... more This paper explores the competing role of organisational culture in organisational change towards sustainability. Drawing on the competing values framework, data was collected by interviewing senior executives and sustainability managers of a leading multinational garment manufacturing organisation based in Sri Lanka. The study finds that organisational culture tends to play a proactive role by going beyond the compliances and regulatory requirements in organisational change towards sustainability. Four competing cultural values appear to shape their corporate sustainability approach, namely (i) people-oriented changes (e.g. empowerment, training, development, team orientation, leadership), (ii) growth-oriented changes (e.g. sustainability innovations, continuous improvements, community engagement), (iii) productivity-and efficiency-oriented changes (e.g. use of professional recommendations, open communication), and (iv) stability-and control-oriented changes (e.g. sustainability budgeting, investment appraisal, life-cycle assessment). The case organisation is more likely to be driven by an integrated approach of the four competing cultural values rather than by one dominant approach. The study contributes to the organisational culture and sustainability literature by highlighting the importance of aligning competing cultural values as a means of addressing sustainability challenges, in the much-debated garment manufacturing industry in the South Asian context. Finally, a framework for sustainability organisational culture is proposed.

Research paper thumbnail of If Not, Why Not' Form of Governance: Do Firm-specific Variables explain the Nature of Justification?

Accounting Research Journal

Purpose Are the explanations that companies provide when deviating from two board structure-relat... more Purpose Are the explanations that companies provide when deviating from two board structure-related best practices under the Australian Stock Exchange’s “If not, why not” regulatory regime systematically influenced by company characteristics? Design/methodology/approach Multinomial logistic regressions are performed on a sample of 258 ASX-listed firms in the period 2004-2007. The dependent variable is the level of response to the “why not” pillar of the regime which requires companies to provide an explanation where they deviate from the recommended governance practice or practices. The variable is categorised into three levels: zero response, inadequate explanation and adequate explanation. This variable takes on a fourth possible level (full compliance) if both pillars of the regime are considered jointly. The independent variables are company size, ownership concentration, profitability, liquidity, age and the market-to-book ratio. Findings The regime appears to be well specified...

Research paper thumbnail of Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure

Business Strategy and the Environment

Research paper thumbnail of Empirical Evidence on the Link Between Compliance with Governance of Best Practice and Firms' Operating Results

Australasian Accounting Business and Finance Journal, 2013

This study provides robust evidence in support of the agency theory argument that corporate gover... more This study provides robust evidence in support of the agency theory argument that corporate governance matters for a firm's operating performance. Using the corporate governance ratings as the governance proxy from Horwath 2006 Corporate Governance Report (mid-sized Australian ASX companies) and Mid-Cap Corporate Governance Report 2007 (The University of Newcastle 2006; 2007), I examine 60 sample firms to reveal that a firm's governance is positively and significantly related to firm performance as measured by return on equity, earning yield and return on assets. This study extends the findings of these two reports which found a disturbing trend in the corporate governance practice of Australian mid-cap companies-both a decrease in companies with excellent corporate governance, and an increase in companies with significant corporate governance deficiencies. The findings of this study suggest that those mid-size companies who have allowed corporate governance to deteriorate have adversely affected their shareholder returns.