No abstract

No abstract

No abstract

No abstract

PurposeThe purpose of the current study is to examine audit committee reports of a sample of companies listed on the NYSE to determine the extent to which these reports contain voluntary disclosures that would indicate compliance with the relevant requirements of the Sarbanes‐Oxley Act (SOX) and the rules imposed by the SEC and NYSE.Design/methodology/approachReviewed the contents of the audit committee reports from the 2004 proxy statements of a random sample of one hundred companies from those listed on the NYSE. These companies were drawn from a variety of industries and represented a wide cross‐section of the total market. The content of audit committee reports was examined to see if the committees voluntarily disclosed, within the body of the report, compliance with the requirements of SOX.FindingsThe results reveal that there is a significant diversity in the form and content of the audit committee reports published in the sample. It appears that while some audit committees treat their report as more than just a regulatory requirement and provide more voluntary disclosure, many others continue to provide only the minimum required information in their report.Research limitations/implicationsThe study focused on the actual body of the audit committee reports to examine disclosures about the compliance with SOX. It is likely that in many cases, the disclosures that did not appear within the audit committee reports may appear elsewhere in the proxy statement. Also, the study only examined audit committee reports of a sample of NYSE companies. Future research might include audit committee reports of those companies in the NASDAQ system.Practical implicationsReaders of audit committee reports might view more favorably the performance of those audit committees whose reports contain more extensive disclosures of the compliance with the SOX requirements.Originality/valueThis paper fulfills a need to know if audit committees are meeting the requirement of SOX and disclosing it. It warns readers that in order to obtain complete information as to the functioning of audit committees, they might need to conduct a complete search of the proxy statements and not only the section relating to the audit committee report.

Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment (FDI). Yet, China has received substantially more FDI. The literature comparing FDI in these two countries is small, and does not provide conclusive evidence to explain this puzzle. Applying the Porterian framework of the competitiveness of nations to compare China and India, we garner evidence that differences in demand, factor conditions and firm strategy, structure and rivalry are not sufficient to explain the differential in the two countries' FDI flows. Differences in related and supporting industries, as well as Porter's other two factors-government and chance factors-are more compelling. We identify China's early entry into East Asian production networks in the 1980s as a key factor pushing China ahead of India in terms of FDI. We argue that this coincidental mix of timing and geography (Porter's 'chance' factor), pushed forward in China by establishing special economic zones, gave China a sustainable competitive advantage for the following two decades. What is implied from these findings is that China's FDI sources have been much larger and heavily slanted towards East Asia and manufacturing, while India, having missed this particular historical phase, needed to find an alternate route to development and global competitiveness. 2Competitiveness in India and China: The FDI puzzle

This paper examines the impact of liberalization on initial public offering (IPO) performance in postapartheid South Africa. Results indicate a significant reduction in IPO underpricing in the postapartheid period relative to the level reported for IPO offerings in the apartheid period. Significant long-term underpricing for periods of up to two years following the IPO is noted. Many IPO offerings in South Africa are delisted and acquired or merged within three to five years of the IPO offering. Subsequently acquired IPOs are found to be more underpriced than are nonacquired IPOs, a result consistent with the use of IPOs as a means of facilitating acquisitions and mergers.

We investigate if CEO characteristics determine the choice of Political Action Committee (PAC) contributions by firms and if such participation leads to better firm performance. Using a unique, hand‐collected database, we also focus on the identity of the politicians receiving PAC contributions to examine the impact of the value‐relevance of such contributions. Examining data on corporate contributions made to candidates seeking federal office during the 2002, 2004, and 2006 election cycles, we find that CEO dominance and interest alignment influence strategic choices of firms with regards to establishing PACs. Our analysis of value‐relevant contributions shows that firms prefer to donate to politicians representing the state of a firm's headquarters, validating the truth to the adage that all politics is local. However, these targeted political contributions do not have a discernible impact on firm performance.