Academic Roundup – September 2007

Manifest-I presents a summary of recently released academic papers on international corporate governance and corporate social responsibility issues.

Reputational Sanctions in China’s Securities Market
Benjamin Liebman and Curtis Milhaupt, Columbia Law School

Public criticism of listed companies by the Shanghai and Shenzen exchanges is having a significant effect on corporations and their executives, according to the findings of this paper.… Read the rest

Government under siege on climate change

Large companies would be forced to disclose their greenhouse gas emissions to a common standard under proposals by Conservative Party think tank the Quality of Life Policy Group. The Group, chaired by former environment minister John Gummer, was formed by David Cameron to provide independent input to the Conservatives on every aspect of the “quality of life” agenda.… Read the rest

LCH.Clearnet tests interoperability code

LCH.Clearnet, the clearing house, has issued formal requests to Deutsche Börse and Borsa Italiana for links allowing it to clear share trades executed on their platforms.

LCH.Clearnet said implementation of these links will allow users of those markets to consolidate clearing of cash equities traded on the London Stock Exchange, virt-x, Deutsche Börse and Borsa Italiana.… Read the rest

Academic Roundup – August 2007

Manifest-I presents a summary of recently released academic papers on international corporate governance and corporate social responsibility issues.

Do IFRS/UK-GAAP reconciliations convey new information?
Edward Lee and Martin Walker, University of Manchester – Division of Accounting & Finance; and Hans Christensen, Manchester Business School.Read the rest

Academic Roundup – July 2007

Manifest-I presents a summary of recently released academic papers on international corporate governance and corporate social responsibility issues.

The Special Interest Race to CEO Primacy and the End of Corporate Governance Law
Steven Ramirez, professor of law, Loyola University of Chicago School of Law

This paper argues that recent fears US corporate governance has moved towards a “dictatorship of the CEO” and away from shareholder primacy are well founded.… Read the rest

Academic Roundup – May 2007

Manifest-I presents a summary of recently released academic papers on international corporate governance and corporate social responsibility issues.

Law and the Market: The Impact of Enforcement

John Coffee, Columbia Law School. Columbia Law and Economics Working Paper No. 304.

The US is unique in both its expenditure on securities regulation enforcement and the amount and severity of the sentences it imposes.… Read the rest

Academic Roundup – April 2007

Manifest-I presents a summary of recently released academic papers on international corporate governance and corporate social responsibility issues.

Superstar CEOs

Ulrike Malmendier, University of California – Berkeley; and Geoffrey Tate, UCLA.

The firms of US chief executives who win high-profile awards from the business press or other organisations suffer declining performance, while the chief executives in question extract greater compensation, this paper has found.… Read the rest

US investors want pay and performance link

Most institutional investors believe there should be a stronger link between executive pay and performance at US companies, with 90% believing the current system has overpaid board members and 85% stating that it has damaged the image of corporate America, reported a survey by Watson Wyatt, the human capital consulting firm.… Read the rest

News in briefs …..

A European Group of Auditors’ Oversight Bodies has been set up by the European Commission. The group will ensure effective coordination of new public oversight systems of statutory auditors and audit firms within the European Union and may also provide technical input to the preparation of the Commission implement the 8th company law directive covering audits.… Read the rest

Australian pay vote: improvement needed

There were 43 Australian listed companies that failed to notify shareholders about the remuneration report vote that was introduced as part of other company law changes and applied to most firms for the first time in the 2005 AGM season, according to the Australian Securities & Investments Commission (ASIC).… Read the rest

Fund managers take note of IFRS

A survey of 75 fund managers has revealed that this year’s adoption of International Financial Reporting Standards (IFRS) has already begun to affect investment decisions according to PricewaterhouseCoopers (PwC). 

The results show that 47% said information reported under IFRS had direct influence on decisions, 29% that it had influenced their decisions to move their investment from a company, and 21% that it had been a factor in their deciding not to invest.… Read the rest

APB defers revision of auditor’s report standard

The UK’s Auditing Practices Board (APB) has decided to defer its revision of the International Standard on Auditing (UK and Ireland) 700 (ISA 700) on the auditor’s report on financial statements, which it published for consultation in December 2004.

It believes that forthcoming changes to UK company law, the revision of the EU’s 8th directive on company law and ongoing work by the International Auditing and Assurance Standards Board on clarifying the wording of ISAs mean that it is not the right time to adopt the latest version of ISA 700, which would have been effective for reports dated on or after 31 December 2006, when further changes are likely to be necessary.… Read the rest