Journal of Law and Financial Management - Volume 11 (2) December 2012
Fund Governance, Fees and Performance in Australian Corporate Superannuation Funds: A Non-Parametric Analysis
by Thi Thuy Chi Nguyen, Monica Tan and Marie-Anne Cam
We investigate the governance structure and practices of Australian corporate superannuation funds and explore the link between a fund's governance, fees and performance. Overall, it appears that the funds have governance structures that are prone to agency conflicts, lack of transparency and that trail behind overall corporate governance standards. We find that a fund's governance practices do not affect performance, but they do affect fees. In addition, the international subsidiary and listing status of the sponsoring firms are found to affect fund fees. As a fund's board size increases, so do the number of asset consultants being hired, and fund fees grow. The relationships between fund governance, management and fees are significantly influenced by fund size and are non-linear. We also found a potential link in the governance practices between the sponsoring firms and their funds. Our study provides important insight into how, although trustee structure does not have a direct impact, their strategic decisions affect how funds operate and agency problems can be controlled. Furthermore, adequate trustee competency that addresses the specific needs and nature of each fund must accompany fund governance structures; a prescriptive governance framework does not fit all.
Accounting for Process Cost Systems in New Zealand
by John Parkinson
Skinner (1978) observed a gap between process costing as described in the textbooks and process costing as carried out in Australian and UK companies. Very little research has been published on this topic since that date. Skinner's study is replicated in this paper in a New Zealand environment. It found that the equivalent units calculation is now more common than it used to be, one reason being the adoption of Enterprise Resource Management systems, which provide fuller information than the periodic inventory systems they replaced.
Insider Trading in Globalisation and Cyberspace
by Georgios Zekos
Insider trading involves persons in positions of power who use non-public information and permit this information to be promptly incorporated into stock prices. Cyberspace is characterised as 'a-territorial' and can be used in practice as a tool for hegemonic exercise of control by challenging the law's traditional dependence on territorial borders. The regulation of insider trading has contributed to the success of the securities markets. Law and economics in tandem will secure the market against insider trading.