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This paper investigates the influence of tournament incentives, measured by Chief Executive Officer (CEO) pay slice (CPS), on the acquisition decisions of Australian firms.

This study applies ordinary least squares regression analyses to a sample of 1,429 acquisition observations announced by 986 unique Australian firms spanning the 2001–2015 period. Event study methodology was employed to capture the market reaction to acquisition announcements. Multinomial logit models, a two-stage least squares instrumental variable (IV) approach and propensity score matching (PSM) technique were performed for robustness and endogeneity correction purposes.

The results suggest that CPS has a positive and significant relationship with the announcement period abnormal return realised by acquirers, implying that executives are motivated to exert best efforts and support the CEO in making value-creating acquisitions. Further analyses reveal that management teams of high CPS firms demonstrate efficiencies in executing acquisitions. The positive relationship between the CPS and abnormal return is more pronounced in acquisitions of private targets, domestic targets and bidders with high-quality CEOs. These acquisitions make a significant contribution to the long-run performance of the firm, which provides support for the effort inducement hypothesis.

The study's empirical evidence implies that the strong governance environment in Australia and a highly monitored acquisition market and compensation contracts motivates executives to exert their efforts to make value-enhancing acquisitions.

This paper appears to be the first investigation that makes a link between CPS in different components (i.e. short-term, long-term and total pay) as proxy for tournament incentives and the outcomes of both public and non-public acquisitions in the Australian setting.

Describes a survey, undertaken by the Nolan Norton Institute in mid‐1995, of Australia’s senior IT (information technology) ranks. The objective of the survey was to gain a better understanding of the continent’s senior IT executives. The results show a grim reality for many of the region’s chief information officers. Australian IT executives are striving for recognition. Compared to their overseas counterparts, they rank lower in their respective organizations, do not report directly to their chief executive officers and are not members of their executive committees. Given these factors, the “senior executive” label seen as most descriptive of the role may be a bit of wishful thinking. Concludes that Australian IT executives’ roles are evolving from a traditional project‐oriented focus to a strategic decision‐making responsibility. IT executives would like to see their role in the organization elevated, giving them more “clout”, stature and visibility, as has increasingly been the case in North America and the UK. Once these issues have been addressed, the Australian IT executive can concentrate on building the management practices and focusing on strategic goals.

As a result of the Australian Government Productivity Commission's recommendation to mandate remuneration committee independence for ASX300 companies, this study aims to investigate whether voluntary remuneration committee independence aligns chief executive officer (CEO) total pay and bonuses with firm financial performance.

A series of hypotheses test the research question using multiple regressions for a sample of 143 ASX300 companies during 2001. This time was prior to strengthen corporate governance regulation, but after mandated executive remuneration disclosure, thus capturing varying levels of voluntary remuneration committee independence.

This study shows firm size is an influential factor in the relationship under investigation. ASX300 large firm remuneration committees link CEO total remuneration and bonuses to firm financial performance. Smaller ASX firm remuneration committees do not link either type of CEO remuneration to performance despite remuneration committee independence. Findings are mixed for medium-sized ASX300 firms.

Limitations include the necessary time restriction to 2001 for sampling the ASX300 firms. The implication of this study's findings is that the proposed public policy for mandatory remuneration committee independence is not universally effective in linking CEO remuneration to firm financial performance for ASX300 firms.

This study contributes to the limited research on voluntary remuneration committee independence in relation to CEO remuneration and firm financial performance in the Australian context.

Recent high profile U.S. corporate collapses have their counterparts in other international markets, such as Australia. The corporate governance failures that led to major corporate collapses in both countries are strikingly similar, despite differences in their respective corporate governance systems. In this paper, I present an examination of the corporate governance failures that led to the demise of three prominent Australian firms in 2001 and illustrate that the corporate governance failures are not limited to the existing corporate governance system in the United States. I will also outline the various corporate governance reforms that were established to restore investor confidence.

Moral agents have moral choice. This chapter argues that moral choice denies historical inevitability when moral choice is informed by both moral imagination and historical imagination. I explore this by way of one specific historical example which should be used, as the philosopher Bernard Mayo argued, as a moral exemplar. In pursuing my arguments I utilise work by Sir Isaiah Berlin, amongst others. I do though take issue with Berlin, whom I argue has confused not the nature but the role of historical imagination, claiming dominance for it where it cannot dominate. I conclude with historical inevitability being refuted by moral choice, informed by both moral imagination and historical imagination.I argue that the refutation of historical inevitability has implications for Australian businesses in their current dealings with the People’s Republic of China. Australia escaped the Global Financial Crisis because of Chinese purchases of Australian commodities. But Australian business in trading with China is trading with an unjust regime. Hoffman and McNulty (2009) argue that regarding a regime such as China we can ‘learn from our past’. Regarding the past I argue that Australian business executives dealing with China would benefit by studying the historical example of Churchill’s May 1940 decision and should use that as a moral exemplar. Earlier generations of Australian managers contemptuously dismissed Chinese workers. The current generation of Australian managers, who fail to morally acknowledge China’s workers and citizens, risks being equally contemptuous, dismissive and racist.

The Australia–China business relationship is immensely important for the economic prosperity and living standards of both the countries. There are major differences in business culture between the two countries – Australia from the Global South with Anglo Imperial business traditions and practices, compared with the fast-developing economic might of China, the largest country by population and economic scale in the Far East. China is currently experiencing a crackdown on corruption under President Xi Jinping which started in 2012. Gift giving, guanxi (significant relationships), bribery and corruption are some of the biggest business relationship management issues between Australia and China. Appropriate gift giving and guanxi are distinguished here from bribery and corruption. Guanxi has been associated in the business and academic literature with deterioration in business ethics practices, including bribery and corruption – however, the literature also notes that this does not need to be the case. Following a review of the institutional setting and the literature here, a series of research propositions are developed that provides a framework within the whole ethics of governance regime for a corporation to manage bribery and corruption challenges for corporations. This framework can be used for Australian Stock Exchange, Hong Kong Stock Exchange listed companies which have legal systems parented in the United Kingdom; elements of the model may be useful in the China business setting.

The power of the executive to refer cases involving criminal conviction back to an appellate court is a mechanism for guarding against miscarriages of justice and regulating the inherent fallibility of the criminal justice system. These cases typically come before the executive by way of a petition that claims a person has been wrongfully convicted. In Australia, however, there are few guidelines and little information as to the criteria and standards by which the executive decides whether to refer a petitioned case. The test the petitioner must meet is not clear. This chapter therefore has two purposes. The first is to examine the types of petitions most likely to be referred to the appellate court by the executive. These cases are shown to fall into particular categories. The second is to argue that, from these categories, inferences may be drawn about the test the executive uses in deciding whether to refer a petition. These inferences follow from the common principles and links between the cases in each category. The chapter identifies the test the petition should meet to have optimal chance of referral.

The purpose of this paper is to address gaps in the knowledge about human resource (HR) professional involvement in strategic decision-making in China compared with that in Australia.

First, the authors compare the strategic involvement of Chinese and Australian HR professionals. Second, based on the upper echelon theory, the authors compare the impact of chief executive officer (CEO) and top management team (TMT) between both countries on HR involvement in strategic decision-making. Data were collected from matched pairs of HR and TMT executives in China (n = 168) and in Australia (n = 102).

Results indicate a difference, despite of no statistical significance, in HR involvement in strategic decision-making between Chinese and Australian samples. TMT behavioural integration was positively related to HR involvement in strategic decision-making in a collectivistic culture (i.e. in China), but not in an individualistic culture (i.e. in Australia). However, CEO support for HRM was positively related to HR involvement in strategic decision-making in Australia, whereas it is not related in China.

The paper conducts a comparative study and practical, and research implications are discussed at the end.

States that more firms are locating operations in Australia to serve the domestic market and as a base for entering other Asian markets. Many of these firms will outsource at least part of their logistics function and this is a growing trend throughout the world. Describes how a mail survey of the major operating units at the largest firms in Australia was conducted to determine the current extent of logistics outsourcing in Australia. Provides the results from this survey together with responses from earlier studies on the usage of contract logistics services in the USA and Western Europe for comparative purposes.

The executives, just below the chief executive officers represent an important but rarely investigated senior executives. The purpose of this paper is to investigate their need for social acceptance and the impact of culture on the perceived use of transformational and transactional leadership behaviors.

A cross-sectional, multi-instrument design was used to investigate 439 Australian executives at the apex of their organization.

The results suggest that these executives identified a prominent need to self-deceive themselves when assessing their perceived use of transformational and transactional leadership behaviors. In addition, the cultural dimensions, such as supportiveness and performance orientation, were identified as influencing specific leadership behaviors, in order to produce competitive advantages. However, the cultural dimension of emphasis on rewards uniquely decreased the perceived use of several leadership behaviors (i.e. articulates vision, fosters the acceptance of group goals, and provides an appropriate role model).

The study provides further evidence of how the social context impacts on leadership behaviors and thinking

The development of executive requires insights into how their personal need for social acceptance and culture alter their use of leadership.

Social desirability and specific culture dimensions do not uniformly influence the perceived use of transformational and transactional leadership behaviors.