Financial Markets and Corporate Governance Conference

latrobe.edu.au

Financial Markets and Corporate Governance Conference Melbourne, Australia 2012

Contents and Overview

Welcome 3

Conference and Symposium Awards 4

FCGC Lifetime Outstanding Achievement Award 5

Plenary Speakers 6-7

PhD Symposium and Conference 8-10

Conference Academic Sessions 11-20

Practitioners Sessions 21

Members of the Executive Committee 22

2013 Conference 23

Overview

The 3rd Annual Conference on Financial Markets and Corporate Governance (FCGC) is the premier international conference in the area of Finance, Accounting and Corporate Governance. The Conference includes a PhD Symposium with students’ workshops, keynotes and presentations from renowned academics, and practitioners’ sessions on Funds Management and Bank Regulations. The practitioners’ session on Funds Management deals with issues related to appropriate fee structures for fund managers and performance, while the session on Bank Regulations deals with regulation and the role of the Government on the structure of the financial system.

Financial Markets and Corporate Governance Conference 2012

PhD Symposium 11 April 2012

Conference Academic Sessions 12th and 13th April 2012

Practitioners Sessions 13 April 2012

Venue: RACV Club, 501 Bourke Street, Melbourne, Australia

Keynote academic sessions include:

ff Biases in publishing in U.S. journals and what you can do about them;

ff What do we know about corporate governance?;

ff Boards, regulators and monkeys;

ff The role and consequences of CEO and CFO equity compensation;

ff Options on Options, Tradeoffs, Technology and Algorithms: My How Times Have Changed; and

ff Protection of convertible bonds against dividend payments.

Financial Markets and Corporate Governance Conference

La Trobe University

For more information | latrobe.edu.au

Contents and Overview

Welcome

It is with great pleasure that I welcome you to this 2012 conference on Financial Markets and Corporate Governance and associated PhD Symposium.

Over the last year or so the longer term consequences of the 2008 Global Financial Crisis have continued to reverberate around the globe, with the focus shifting to sovereign debt crises. It is against this backdrop that we hope to host another conference that will deliver a wide range of relevant and timely contributions to a number of important current debates.

The conference has been specifically designed to bring together practitioners, academics and doctoral students to facilitate and support dialogue and debate between these key groups.

At the conclusion of this conference I sincerely hope you will have developed new contacts, valuable insights and a heightened enthusiasm for the challenges which lie ahead for anyone working and researching in this field.

Finally, I would like to thank all our sponsors for their continued support in making this conference possible.

Professor Leigh Drake Executive Dean Faculty of Business, Economics and Law La Trobe University

It is with great pleasure that I, on behalf of the conference organising committee welcome you to the 3rd annual Financial Markets and Corporate Governance Conference and associated PhD Symposium. In opening, I would like to recognise at the outset the support of Queensland University of Technology, Victoria University of Wellington, Macquarie University, Curtin University of Technology, Auckland University of Technology, the ACFS, the AFAANZ, and the journals: ARJ and CGIR.

This year we are particularly fortunate in being able to offer several world renowned academics as our keynote speakers: Professors Renee Adams, Douglas Foster, Ferdinand Gul, Bruce Grundy and John Howe. I would like to take this opportunity to thank each of these speakers for agreeing to present at our conference this year.

Apart from these keynote addresses this conference includes presentation of academic papers; practitioners’ sessions on Funds Management and Bank Regulations; and a presentation from the ANZSFRC on dealing with Financial Institutions.

We hope you enjoy your stay and thank you all for contributing to this conference. We hope you find this conference inspiring, transformative and enjoyable. I look forward to seeing you all again in April 2013 at the 4th conference in Wellington, New Zealand.

Dr Balasingham Balachandran (Conference Chair)

On behalf of La Trobe Business School, I would like to welcome you all to this third conference on Financial Markets and Corporate Governance.

The Global Financial Crisis and the Euro crisis have highlighted the danger of pursuing short-term performance at the expense of the long term, not just for organisations but for national economies. The context in which capital markets operate is increasingly being called into question, and the Occupy Wall Street movement has questioned the flow of financial benefits to a small group of people at the expense of more equitable social responsibilities.

There is a clear need for greater balance between financial and economic performance and broader societal expectations – the difference between ‘value’ and ‘values’ needs to be recognised and reconciled.

I trust you will all have an excellent academic debate during the course of this conference and network with colleagues both new and old. It would be especially valuable if the academic debate addressed at least in part the social responsibility of those (including academics) who are key players in corporate governance and financial markets.

Professor Paul CollierHead, La Trobe Business School La Trobe University

3Financial Markets and Corporate Governance Conference

La Trobe University

Welcome

Awards Conference Awards

Symposium Awards

Stream 1: Overall Best Paper Award

Selection Committee Editors of Accounting Research JournalSponsor: ARJ Journal

Stream 2: Accounting

Selection Committee Professor Kamran Ahmed, La Trobe University Professor Andrew Ferguson, University of Technology, Sydney Professor Tony van Zijl, Victoria University of WellingtonSponsor: Department of Accounting, La Trobe University

Stream 3: Asset Pricing/Emerging Markets/Financial Markets/Market Microstructure

Selection Committee Professor Hendrick Berkman, University of Auckland Professor Alex Frino, University of Sydney Associate Professor Peter Pham, University of New South WalesSponsor: Department of Finance and Banking, Curtin University of Technology

Stream 4: Banking/Behavioural Finance/Corporate Finance/Financial Economics

Selection Committee Professor Robert Faff, University of Queensland Professor Michael Theobald, University of Birmingham Professor Terry Walter, University of Technology, SydneySponsor: Department of Finance, La Trobe University

Stream 5: Corporate Governance/ Social Responsibility

Selection Committee Professor Glenn Boyle, University of Canterbury Professor Ferdinand A. Gul, Monash University, Malaysia Associate Professor Patrick Verwijmeren, VU University AmsterdamSponsor: Departments of Accounting and Corporate Governance, and Applied Finance and Actuarial Studies, Macquarie University

Stream 6: Funds Management/ Derivatives/ Risk Management/Quantitative Finance

Selection Committee Professor Robert Brooks, Monash University Professor Philip Gray, Monash University Professor Michael McKenzie, University of SydneySponsor: School of Economics and Finance, Queensland University of Technology

Stream 7: Well developed papers from PhD students

Selection Committee Professor Robert Faff, University of Queensland Professor Janice How, Queensland University of Technology Professor Tom Smith, University of QueenslandSponsor: School of Accounting and Commercial Law, Victoria University of Wellington

Stream 1: Banking/Behavioural Finance/Corporate Finance/ Financial Economics

Selection CommitteeAaron Gilbert, Auckland University of TechnologyShams Pathan, University of QueenslandSponsor: School of Business and Law, Auckland University of Technology

Stream 2: Corporate Governance/Social Responsibility

Selection CommitteeChandra Krishnamurti, University of Southern QueenslandMadhu Veeraraghavan, Monash UniversitySponsor: School of Business and Law, Auckland University of Technology

Stream 3: Accounting Information/Accounting Disclosure Practices/Financial Reporting

Selection CommitteeSue Wright, Macquarie UniversityTony van Zijl, Victoria University of WellingtonSponsor: School of Business and Law, Auckland University of Technology

Stream 4: Asset Pricing/Emerging Markets/Financial Markets/Market Microstructure

Selection CommitteeRobert Durand, Curtin University of TechnologyHuu Duong, Monash UniversitySponsor: School of Business and Law, Auckland University of Technology

Stream 5: Funds Management/ Derivatives/ Risk Management/Quantitative Finance

Selection CommitteeJanice How, Queensland University of TechnologyShams Pathan, University of QueenslandSponsor: School of Business and Law, Auckland University of Technology

4 Financial Markets and Corporate Governance Conference

La Trobe University


Conference and Symposium Awards


La Trobe University


The Award will be presented at the Conference Dinner of the 2012 FCGC Conference, to be held on 12 April 2012, at RACV Club in Melbourne, Australia.

Philip Brown has made many fundamental and long lasting contributions to the field of accounting and finance, most notably his co-authored work (with Ray Ball) ‘An empirical evaluation of accounting income numbers’, published in the prestigious Journal of Accounting Research in 1968. His work is the most influential piece of accounting research and has been cited by more than 3600 research papers. It is widely acknowledged as representing the beginning of modern capital markets-based accounting research.

Phillp Brown received his PhD (economics, accounting, finance) from the University of Chicago in 1968. He is currently a Professor at the Australian School of Business at the University of New South Wales and an Emeritus Professor at the University of Western Australia. He is honorary Visiting Professor at the Lancaster University Management School, and has been Visiting Professor at the University of Chicago and Stanford University on numerous occasions.

He is a Fellow of CPA Australia, Life Member of the Accounting and Finance Association of Australia and New Zealand, Fellow of the Academy of the Social Sciences in Australia, one of five inaugural inductees of the Australia’s Accounting Hall of Fame, Presidential Scholar for 2012 by the American Accounting Association, and Member of the Order of Australia for his service to education in the disciplines of accounting and finance, and to professional associations.

Highlights – Honours and Awards:

ff University Medallist, the University of New South Wales (1962);

ff Fulbright Scholar (1963);

ff Fellow, the Academy of the Social Sciences in Australia (1978);

ff Recipient (with Ray Ball), the inaugural American Accounting Association’s Seminal Contribution to Accounting Literature Award (1986);

ff Recipient (with RJ Chambers), the inaugural Accounting Association of Australia and New Zealand’s Outstanding Contribution to the Accounting Research Literature Award (1996);

ff Life Member, the Accounting Association of Australia and New Zealand (2000);

ff Emeritus Professor, the University of Western Australia (2001);

ff Member, the Australian Accounting Hall of Fame (2010);

ff Presidential Scholar, the American Accounting Association (2012); and

ff Member, Order of Australia (2012).


The Award will be presented at the Conference Dinner of the 2012 FCGC Conference, to be held on 12 April 2012, at the RACV Club in Melbourne, Australia.

Plenary Speakers

Professor Renée B. Adams University of New South Wales

Renée B. Adams joined the University of New South Wales as Professor and Commonwealth Bank Chair in Finance in 2011 after previous appointments at the Federal Reserve Bank of New York, the Stockholm School of Economics and the University of Queensland. She was appointed the convenor of the Financial Integrity Research Network (FIRN) in 2010. She is also a Research Associate at the European Corporate Governance Institute (ECGI) and a Financial Market Group Affiliate at the London School of Economics.

Professor Adams’ research focuses on the organisation of corporate boards. She has published in top accounting, economics, finance and management journals including the Journal of Accounting and Economics, the Journal of Finance, the Journal of Financial Economics, Management Science, the Review of Economic Studies and Strategic Management Journal.

Professor Adams’ work has been featured in newspapers such as the Financial Times, the Economist, the Daily Telegraph, Daily Express, Boston Globe, Australian Associated Press, Courier Mail, The Australian, Irish Herald, Scotland on Sunday, Board IQ, Management Issues, Management Today, Human Resources Magazine, Press Trust of India, The New Zealand Herald, Berlingske Nyhedsmagasin, NK (Norway), Politiken (Denmark), DN (Norway) and many others.

“Boards, Regulators and Monkeys” at the conference dinner on 12 April 2012

Professor F. Douglas Foster Australian National University

F. Douglas Foster is a Professor of Finance at The School of Finance, Actuarial Studies and Applied Statistics at The Australian National University. He has held faculty positions at the University of New South Wales, The Tippie College of Business at the University of Iowa, and The Fuqua School of Business, Duke University. He was awarded the PhD. degree from Cornell University in 1987. His research interests include the use of information-based techniques in market design, investment banking, corporate finance, and risk management. He has also studied experimental and qualitative topics in behavioural finance.

“Options on Options, Tradeoffs, Technology and Algorithms: My How Times Have Changed” 12 April 2012 at 10.30 AM to 11.15 AM

Professor Bruce D. Grundy University of Melbourne

Bruce D. Grundy is a Professor and Head of the Department of Finance at the University of Melbourne. Bruce received his PhD in Finance from the University of Chicago and was previously a faculty member at Stanford and Wharton and a visiting Professor at Chicago, Goethe-Universität Frankfurt am Main and Singapore Management University. Bruce teaches subjects in Derivatives, Real Options, Corporate Governance, Corporate Finance and Financial Management for Executives. Bruce is a founding member of FIRN and has served as Managing Editor of the IRF and as an Associate Editor of JF, RFS, JFQA, JFR and Accounting & Finance. Bruce has published on option pricing, momentum trading strategies, dividend policy, convertible bonds and noisy rational expectations models. Bruce has consulted for investment banks, corporations, mutual funds and regulators in the US, Australia and Europe.

“The protection of convertible bonds against dividend payments and the disappearance of call delay” 12 April 2012 at 11.15 AM to 12 Noon


La Trobe University


Plenary Speakers

Professor Ferdinand A. Gul PhD, FCA (Australia); FCPA (Australia); FCPA (Hong Kong) Professor of Accounting and Corporate Governance and Head, Director of Research, Monash University

Professor Gul is Professor of Accounting, Deputy Head of School (Research) and Head of the Accounting and Finance Discipline at the School of Business, Monash University, Sunway campus. Professor Gul has wide practical and academic experience having held several senior positions in various universities in Australia and Hong Kong. He has provided consulting services on corporate governance reform to the Hong Kong Special Administrative Region Government and held various visiting / honorary professorships in various universities in China such as Shanghai University of Finance and Economics, Zhongshan University and Xiamen University. Professor Gul has supervised more than 25 PhD students and published in journals such as the Journal of Accounting and Economics, Journal of Accounting Research, The Accounting Review, The Journal of Financial and Economics, Contemporary Accounting Research and Journal of Corporate Finance.

“The Role and Consequences of Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Equity Compensation” 13 April 2012 at 10.30 AM to 11.15 AM

Professor John S. Howe University of Missouri, Columbia

John S. Howe holds the Missouri Bankers Chair and is Professor of Finance at the University of Missouri (USA) where he has been a faculty member since 1994. He has also held faculty positions at the University of Kansas and Louisiana State University. He received his undergraduate degree from The Colorado College and his Master’s and PhD. degrees from Purdue University. He earned the Chartered Financial Analyst (CFA) certification in 1993.

John is an acclaimed teacher and has won teaching awards throughout his career. He has taught in the orientation program for MPhil students in real estate finance at the University of Cambridge. John serves on the board of directors of Midwest Independent Bank, and is on the audit committee there. John’s research interests are in behavioural finance, banking, corporate finance, and corporate governance. He has published extensively in the top finance and accounting journals, as well as in elite practitioner journals. He has been a member of the Editorial Board of the CFA Digest since 1995.

“What Do We Know about Corporate Governance?” 13 April 2012 at 11.15 AM to 12 Noon


La Trobe University

Plenary Speakers

PhD Symposium and Conference

CONCURRENt SESSION ONE: 8.30 AM – 10.00 AM

Session 1.1: Corporate Governance – Bourke Room 1

Convener: Peter Lam (University of Technology, Sydney)

The Moderating Role of Non-executive Directors: Their influence on CEO Dismissal Decisions in the Context of Poor Company Performance

Presenter: Sharaf Alajmi (Macquarie University)

Discussant: Peter Lam (University of Technology, Sydney)

The Independent Director Expectation Gap and the Effects of Hindsight Bias

Presenter: Mitchell Bryce (La Trobe University)

Discussant: Robert Durand (Curtin University of Technology)

Session 1.2: Accounting – Bourke Room 2

Convener: Sue Wright (Macquarie University)

Non-financial Information, What Role Accountants Played in the Process of Reporting?

Presenter: Zuraida Zuraida (Victoria University of Wellington)

Discussant: Sue Wright (Macquarie University)

Volatility, Value Relevance and Predictive Power of Comprehensive Income

Presenter: Shahwali Khan (Massey University)

Discussant: Andrew Ferguson (University of Technology, Sydney)

Session 1.3: Investments – Bourke Room 3

Convener: Chandra Krishnamurti (University of Southern Queensland)

Risk Premium and the Term Structure of Risk Premium in the Currency Futures Market

Presenter: Satish Kumar (IFHE University)

Discussant: Chandra Krishnamurti (University of Southern Queensland)

Oil Price and Sectoral Returns

Presenter: Dinh Hoang Bach Phan (Deakin University)

Discussant: Lily Nguyen (La Trobe University)

Session 1.4: Corporate Finance – theatrette

Convener: Philip Gharghori (Monash University)

Stock Price Synchronicity and Corporate Governance: A Cross Country Study

Presenter: Adnan Khattak (Massey University)

Discussant: Philip Gharghori (Monash University)

A Reconsideration of the Meese and Rogoff Puzzle

Presenter: Kelly Burns (RMIT University)

Discussant: Jae Kim (La Trobe University)

Members of PhD SYMPOSIUM COMMIttEE

ff Professor Kamran Ahmed (La Trobe University)

ff Associate Professor Balasingham Balachandran (La Trobe University)

ff Associate Professor Michael Dempsey (Monash University)

ff Dr Huu Duong (Monash University)

ff Professor Robert Durand (Curtin University of Technology)

ff Professor Robert Faff (University of Queensland)

ff Professor Andrew Ferguson (University of Technology, Sydney)

ff Dr. Aaron Gilbert (Auckland University of Technology)

ff Dr Philip Gharghori (Monash University)

ff Associate Professor Darren Henry (La Trobe University)

ff Dr Kumudini Heenetigala (Victoria University, Australia)

ff Professor Janice How (Queensland University of Technology)

ff Professor Jae Kim (La Trobe University)

ff Professor Chandra Krishnamurti (University of Southern Queensland)

ff Dr Peter Lam (University of Technology, Sydney)

ff Professor Paul Mather (La Trobe University)

ff Dr Lily Nguyen (La Trobe University)

ff Dr Shams Pathan (University of Queensland)

ff Associate Professor Peter Pham (University of New South Wales)

ff Professor Alireza Tourani-Rad (Auckland University of Technology)

ff Professor Tony van Zijl (Victoria University of Wellington)

ff Professor Madhu Veeraraghavan (Monash University)

ff Associate Professor Peter Verhoeven (Queensland University of Technology)

ff Associate Professor Barry Williams (Bond University)

ff Associate Professor Sue Wright (Macquarie University)

ff Dr Jing Zhao (La Trobe University)


La Trobe University




MORNING tEA (PRE-FUNCtION BREAKOUt AREA): 10.00 AM – 10.30 AM

Welcome Address: 10.30 AM – 10.45 AM in Bourke Room 1

Professor Leigh Drake (Executive Dean – Faculty of Business, Economics and Law)

Chairperson: Associate Professor Balasingham Balachandran

PhD Symposium Keynote address: 10.45 AM – 11.30 AM in Bourke Room 1

Biases in Publishing in U.S. Journals and What You Can Do about Them

Professor John Howe (University of Missouri-Columbia)

Chairperson: Professor Janice How (Queensland University of Technology)

Panel Session – Session with Experts: 11.30 AM – 1.00 PM in Bourke Room 1 (Strictly limited to PhD students)

Panellists:

Professor Renée Adams (University of New South Wales)

Professor Leigh Drake (La Trobe University)

Professor Doug Foster (Australian National University)

Professor Bruce Grundy (University of Melbourne)

Chairperson: Professor Leigh Drake (La Trobe University)

LUNCH (PRE-FUNCtION BREAKOUt AREA): 1.00 PM – 2.00 PMCONCURRENt SESSION tWO: 2.00 PM – 3.30 PM

Session 2.1: Banking – Bourke Room 1

Convener: Barry Williams (Bond University)

Two Stage DEA with Tobit Estimation: Evidence from Malaysia and Bahrain

Presenter: Wahida Ahmad (La Trobe University)

Discussant: Barry Williams (Bond University)

The Effects of Financing Structures and Bank Specific Variables on Credit Risk: A Case of Malaysia Islamic Banks

Presenter: Faridah Najuna Misman (La Trobe University)

Discussant: Shams Pathan (University of Queensland)

Session 2.2: Market Microstructure – Bourke Room 2

Convener: Huu Duong (Monash University)

A Toe in the Water: Evidence from the Introduction of a Dark Pool

Presenter: Sean Foley (University of Sydney)

Discussant: Huu Duong (Monash University)

Seasoned Equity Offerings, Market Reaction, and Liquidity: Evidence from Malaysia

Presenter: Nor Farradila Abdul Aziz (La Trobe University)

Discussant: Michael Dempsey (Monash University)


Convener: Darren Henry (La Trobe University)

Corporate Social Responsibility, Visibility and Idiosyncratic Risk

Presenter: Christo Ferreira (Massey University)

Discussant: Darren Henry (La Trobe University)

A Study of Board Structure, Processes and the Monitoring Role of the Board of Directors in the Context of Earnings Benchmarks and Debt Covenant Violations

Presenter: Dinithi Ranasinghe (La Trobe University)

Discussant: Kumudini Heenetigala (Victoria University, Australia)


La Trobe University



AFtERNOON tEA (PRE-FUNCtION BREAKOUt AREA): 3.30 PM – 4.00 PMCONCURRENt SESSION tHREE: 4.00 PM – 5.30 PM


Convener: Paul Mather (La Trobe University)

The Relative Importance of Corporate Governance Attributes: Evidence from Corporate Stakeholders

Presenter: Christofer Adrian (Macquarie University)

Discussant: Paul Mather (La Trobe University)

How Long Should Bank CEOs Continue?: Evidence from Nigeria

Presenter: Toni Uhomoibhi Aburime (Deakin University)

Discussant: Peter Verhoeven (Queensland University of Technology)

Session 3.2: Investments – Bourke Room 2

Convener: Jing Zhao (La Trobe University)

Three Essays on the Sri Lankan Stock Market

Presenter: Neluka Devpura (Deakin University)

Discussant: Jing Zhao (La Trobe University)

The Emerging Carbon Markets and Design Standards for Greenhouse Gas Emission Trading Schemes

Presenter: Neale Wardley (Victoria University, Australia)

Discussant: Madhu Veeraraghavan (Monash University)

Session 3.3: Accounting – Bourke Room 3

Convener: Kamran Ahmed (La Trobe University)

The Impact of Intellectual Capital on Firm’s Performance in R&D Engaging Firms

Presenter: Arifatul Husna Mohd Ariff (Victoria University of Wellington)

Discussant: Kamran Ahmed (La Trobe University)

Distress Risk and Stock Returns – Evidence from Earnings Announcements

Presenter: Tze Ang (University of Melbourne)

Discussant: Tony van Zijl (Victoria University of Wellington)

Session 3.4: Corporate Finance – theatrette

Convener: Janice How (Queensland University of Technology)

The Determinants of Institutional Shareholder Activism in Malaysia

Presenter: Maizatul Musa (Victoria University, Australia)

Discussant: Janice How (Queensland University of Technology)

The Influence of Diversification Versus Specialisation and Ownership Structure on Bidder Long-Term Performance

Presenter: Hasimi Yaacob (La Trobe University)

Discussant: Aaron Gilbert (Auckland University of Technology)

CLOSING MOMENtS (PRE-FUNCtION BREAKOUt AREA): 5.30 PM – 6.30 PM

Professor Paul Collier (Head, La Trobe Business School)

Presentation of Awards

Thanking note: Associate Professor Peter Verhoeven (Queensland University of Technology)

Light meal

Chairperson: Professor Xiangkang Yin (Head, Department of Finance, La Trobe University)


La Trobe University



tHURSDAY 12tH APRIL 2012ARRIVAL tEA AND REGIStRAtION (PRE-FUNCtION BREAKOUt AREA): 8.00 AMCONCURRENt SESSION ONE: 8.30 AM – 10.00 AM

Session 1.1: Accounting – theatrette

Session Chair: Paul Mather (La Trobe University)

8.30 AM – 9.00 AM Mandatory Adoption of International Financial Reporting Standards (IFRS) by EU Listed Firms: Comparability and Analysts ForecastsPaul Andre, Dionysia Dionysiou, Ioannis Tsalavoutas (University of Stirling)Discussant: Nurul Houqe (Victoria University of Wellington)

9.00 AM – 9.30 AM The Impact of Corporate Governance on the Restrictiveness of Covenants Used in Private Debt ContractsIntan Suryani Abu Bakar (Monash University) Paul Mather (La Trobe University), George Tanewski (Deakin University)Discussant: Andrew Ferguson (University of Technology, Sydney)

9.30 AM – 10.00 AM Government Quality, the Adoption of IFRS and Auditor Choice: A Cross Country AnalysisNurul Houqe, Tony van Zijl (Victoria University of Wellington), Reza M. Monem (Griffith University)Discussant: Dionysia Dionysiou (University of Stirling)


Session Chair: Darren Henry (La Trobe University)

8.30 AM – 9.00 AM Controlling Shareholder, Split-Share Structure Reform and Cash Dividend Payments in ChinaChunyan Liu, Konari Uchida (Kyushu University), Yufeng Yang (China University of Mining and Technology)Discussant: Shams Pathan (University of Queensland)

9.00 AM – 9.30 AM The Effects of Accounting Conservatism on Executive Compensation(Michael) Hui Li, Darren Henry (La Trobe University)Discussant: Dane Rees Etheridge (Curtin University of Technology)

9.30 AM – 10.00 AM A Proclivity to Cheat: How Culture Influences Illegal Insider TradingAlireza Tourani-Rad, Bart Frijns, Aaron B. Gilbert (Auckland University of Technology)Discussant: Yiwen (Paul) Dou (Macquarie University)

Session 1.3: Corporate Finance – Bourke Room 2

Session Chair: Barry Williams (Bond University)

8.30 AM – 9.00 AM The Impact of Non Interest Income on Bank Risk in AustraliaBarry Williams (Bond University)Discussant: Robert Durand (Curtin University of Technology)

9.00 AM – 9.30 AM Leverage Adjustment in Extremis: The Case of AcquisitionsRobert Durand, Joye Khoo, Subhrendu Rath (Curtin University of Technology)Discussant: Ning Gong (University of Melbourne)

9.30 AM – 10.00 AM New Evidence of Short-Run Underpricing in Australian IPOsWasantha Perera, Nada Kulendran (Victoria University, Australia)Discussant: Chandrasekhar Krishnamurti (University of Southern Queensland)

Session 1.4: Emerging Markets – Bourke Room 3

Session Chair: Lakshman Alles (Curtin University of Technology)

8.30 AM – 9.00 AM Testing the Validity of CAPM and APT in the Oil, Gas and Fertiliser Companies Listed on the Karachi Stock ExchangeHamid Zubairi, Shazia Farooq (Institute of Business Management, Pakistan)Discussant: Phiboon Chatupromwong (Thammasat University)

9.00 AM – 9.30 AM Explanatory Variables of Abnormal Stock Returns in Emerging Markets: The Case of Thai Stock MarketPhiboon Chatupromwong, Seksak Jumroenvong (Thammasat University), Pailin TrongmateerutDiscussant: Hamid Zubairi, (Institute of Business Management, Pakistan)

9.30 AM – 10.00 AM Capital Market Integration of ASEAN CountriesHung Do Quang (La Trobe University)Discussant: Lakshman Alles (Curtin University of Technology)

Conference Academic Sessions

11Conference Academic Sessions

La Trobe University



tHURSDAY 12tH APRIL 2012ARRIVAL tEA AND REGIStRAtION (PRE-FUNCtION BREAKOUt AREA): 8.00 AMCONCURRENt SESSION ONE: 8.30 AM – 10.00 AM

Session 1.5: Asset Pricing/Funds Management – Bayside Room 5

Session Chair: Janice How (Queensland University of Technology)

8.30 AM – 9.00 AM Understanding the Distress Puzzle: Surprises in the Pre-Delisting PeriodTze Chuan Ang (University of Melbourne)Discussant: Mamunur Rashid (Curtin University of Technology)

9.00 AM – 9.30 AM Do Fund Managers Keep Their Promises?: The Case of Shari’ah Equity FundsYunieta Nainggolan, Janice How, Peter Verhoeven (Queensland University of Technology)Discussant: Robert Faff (University of Queensland)

9.30 AM – 10.00 AM Are Firm Size and Book-to-Market Priced Risk Factors? Chinese EvidenceMichael J. Dempsey (Monash University)Discussant: Michael Hui Li (La Trobe University)

Session 1.6: Risk Management – Bayside Room 6

Session Chair: Jing Zhao (La Trobe University)

8.30 AM – 9.00 AM Estimating Optimal Hedge Ratio and Hedge Effectiveness via Fitting the Multivariate Skewed DistributionsWei-Han Liu (La Trobe University)Discussant: Xin Zheng (University of Sydney)

9.00 AM – 9.30 AM Cointegration and Stochastic Correlations: Application to the Pricing of Commodity DerivativesMei Choi Chiu (Hong Kong University of Science and Technology), Hoi Ying Wong (Chinese University of Hong Kong), Jing Zhao (La Trobe University)Discussant: Sean Foley (University of Sydney)

9.30 AM – 10.00 AM Stock Return Distribution Assumptions. Impacts upon Market Volatility Forecasting: Experiences from Australian Securities ExchangeXin Zheng (University of Sydney)Discussant: Wei-Han Liu (La Trobe University)

10.00 AM – 10.30 AM Morning Tea: Pre-function Area

SESSION tWO: PLENARY I & II – BOURKE ROOM 1

Plenary Speech I: Bourke Room 1 – 10.30 AM – 11.15 AM

Professor Douglas Foster (Australian National University)Options on Options, Tradeoffs, Technology and Algorithms: My How Times Have ChangedSession Chair: Robert Durand (Curtin University of Technology)

Plenary Speech II: Bourke Room 1 – 11.15 AM – 12.00 NOON

Professor Bruce Grundy (University of Melbourne)The protection of convertible bonds against dividend payments and the disappearance of call delaySession Chair: Peter Verhoeven (Queensland University of Technology)


La Trobe University



CONCURRENt SESSION tHREE: 12.00 NOON – 1.00 PM


Session Chair: Kamran Ahmed (La Trobe University)

12 NOON – 12.30 PM The Informativeness of Dividends and Franking CreditsJeffrey Coulton, Caitlin Ruddock (University of New South Wales), Stephen Taylor (University of Technology, Sydney)Discussant: Susan Young (Fordham University)

12.30 PM – 1.00 PM Board Characteristics, Management Earnings Forecasts and Growth OptionsHoward Chan (University of Melbourne), Robert Faff (Queensland University of Technology), Arifur Khan (Deakin University), Paul Mather (La Trobe University)Discussant: Ioannis Tsalavoutas (University of Stirling)


Session Chair: Chandrasekhar Krishnamurti (University of Southern Queensland)

12 NOON – 12.30 PM Blockholders, Corporate Governance and the Value of the Firm: A Panel Data Analysis of Malaysian Non-Financial CompaniesAhmad Ibn Ibrahimy, Rubi Ahmad (University of Malaya)Discussant: Trish Keeper (Victoria University of Wellington)

12.30 PM – 1.00 PM Is Corporate Governance Relevant During the Financial Crisis?Kartick Gupta (Auckland University of Technology), Chandrasekhar Krishnamurti (University of Southern Queensland), Alireza Tourani-Rad (Auckland University of Technology)Discussant: Joye Khoo (Curtin University of Technology)

Session 3.3: Corporate Finance – Bourke Room 2

Session Chair: Chandrasekhar Krishnamurti (Queensland University of Technology)

12 NOON – 12.30 PM Dividends: Relevance, Rigidity, and SignalingSigitas Karpavicius (Flinders University)Discussant: Afrasiab Mirza (Queen’s University)

12.30 PM – 1.00 PM Illiquidity, Fire-Sales and Capital StructureAfrasiab Mirza (Queen’s University)Discussant: Sigitas Karpavicius (Flinders University)

Session 3.4: Governance/Social Responsibility – Bourke Room 3

Session Chair: Anona Armstrong (Victoria University, Australia)

12 NOON – 12.30 PM Aiming for Average: The Effect of Peer Standing on the Dynamic Process of Corporate Social ResponsibilityDavid K. Ding, Christoffel Jacobus Ferrreira, Udomsak Wongchoti (Massey University)Discussant: Anona Armstrong (Victoria University, Australia)

12.30 PM – 1.00 PM Determination of Small Business Churn in Australia Yongqiang Li (Victoria University, Australia)Discussant: Shann Turnbull (International Institute for Self-Governance)

Session 3.5: Risk Management – Bayside Room 5

Session Chair: Paul Tacon (University of Queensland)

12 NOON – 12.30 PM Risk Premia in the Currency Futures Market: Evidence from IndiaSatish Kumar (The Institute of Chartered Financial Analysts of India University)Discussant: Paul Tacon (University of Queensland)

12.30 PM – 1.00 PM Forecasting Stock Returns Using Investor Flows Under Short-Sales ConstraintsPaul Tacon, Jason Hall (University of Queensland)Discussant: Satish Kumar (The Institute of Chartered Financial Analysts of India University)

Session 3.6: Banking – Bayside Room 6

Session Chair: Angela Lou (La Trobe University)

12 NOON – 12.30 PM Government Guarantees and Contingent Capital: Choosing Good Shock AbsorbersDavid G. Mayes (University of Auckland)Discussant: Rowan Trayler (University of Technology, Sydney)

12.30 PM – 1.00 PM Identifying Interdependency Among Monetary Policy, Exchange Rates, Reits and Stock Markets During the Period of Global Financial Crisis in OECD CountriesFarhan Akbar, Hakim Zadi Wagan, Irfan Akbar Kazi (Université Paris I Panthéon-Sorbonne). Discussant: Angela Lou (La Trobe University)



La Trobe University


LUNCH (PRE-FUNCtION BREAKOUt AREA): 1.00 PM – 2.00 PMCONCURRENt SESSION FOUR: 2.00 PM – 3.30 PM


Session Chair: Sue Wright (Macquarie University)

2.00 PM – 2.30 PM The Information Perspective and Usefulness of Accounting InformationSamithamby Senthilnathan (Eastern University, Sri Lanka)Discussant: Kamran Ahmed (La Trobe University)

2.30 PM – 3.00 PM Economic Consequences of Adoption of Fair Value Accounting in ChinaXu-Dong Ji (La Trobe University)Discussant: Sue Wright (Macquarie University)

3.00 PM – 3.30 PM Accelerated Share Repurchases, Bonus Compensation, and CEO HorizonsCarol Marquardt (CUNY – Baruch College), Christine Tan, Susan Young (Fordham)Discussant: Stephen Taylor (University of Technology, Sydney)

Session 4.2: Corporate Governance I – Bourke Room 1

Session Chair: Peter Verhoeven (Queensland University of Technology)

2.00 PM – 2.30 PM Do Criminal Sanctions Deter Insider TradingBart Frijns, Aaron B. Gilbert, Alireza Tourani-Rad (Auckland University of Technology)Discussant: Paul Griffin (University of California)

2.30 PM – 3.00 PM Board gender diversity and its effect on firm financial performance: a panel study of top 500 ASX listed firmsKamran Ahmed, Paul Mather, Alireza Vafaei (La Trobe University)Discussant: Ngoc Tao (Queensland University of Technology)

3.00 PM – 3.30 PM TBA

Session 4.3: Banking – Bourke Room 2

Session Chair: David Mayes (University of Auckland)

2.00 PM – 2.30 PM Does Board Structure in Banks Really Affect Their Performance?Shams Pathan, Mamiza Haq (University of Queensland), Philip Gray (Monash University)Discussant: Chunyan Liu (Kyushu University)

2.30 PM – 3.00 PM Rules versus Practice: Governance in the Financial Services SectorChristopher Bajada, Rowan M. Trayler (University of Technology, Sydney)Discussant: David Mayes (University of Auckland)

3.00 PM – 3.30 PM Impact of Bank Capital, Charter Value and Market Discipline on Bank Risk Exposure: Evidence from Asia PacificMamiza Haq (University of Queensland), Sunil Mohanty (University of Saint Thomas), Rama SethDiscussant: Barry Williams (Bond University)

Session 4.4: Corporate Governance II – Bourke Room 3

Session Chair: Kumi Heenetigala (Victoria University, Australia)

2.00 PM – 2.30 PM Corporate Governance: Exploring the Changing Governance Control Paradigm and its Implications for Internal AuditingJoe Christopher (Curtin University of Technology)Discussant: Kumi Heenetigala (Victoria University, Australia)

2.30 PM – 3.00 PM The Impact of Corporate Governance on Firm Performance in an Unstable Economic and Political Environment: Evidence from Sri LankaKumi Heenetigala, Anona Fern Armstrong (Victoria University, Australia)Discussant: Christoffel Jacobus Ferrreira (Massey University)

3.00 PM – 3.30 PM Can Internal Governance Mechanisms Prevent Asset Appropriation? Examination of Type I Tunnelling in ChinaYuan George Shan (University of Adelaide)Discussant: Yongqiang Li (Victoria University, Australia)



La Trobe University




CONCURRENt SESSION FOUR: 2.00 PM – 3.30 PM

Session 4.5: Financial Markets – Bayside Room 5

Session Chair: Lily Nguyen (La Trobe University)

2.00 PM – 2.30 PM Order Imbalance, Market Returns and Macroeconomic News: Evidence from the Australian Interest Rate Futures MarketLee Smales (University of New South Wales)Discussant: Lily Nguyen (La Trobe University)

2.30 PM – 3.00 PM Optimal Trading Strategy on News Releases for Financial InstitutionsEdward Sun, Timm Kruse (BEM Bordeaux Management School)Discussant: Thomas Henker (Bond University)

3.00 PM – 3.30 PM How the Australian Ban on Short Selling During the GFC Affected Market Quality and VolatilityThomas Henker, Julia Henker (Bond University), Uwe Helmes (University of New South Wales)Discussant: Edward Sun (BEM Bordeaux Management School)

Session 4.6: Corporate Finance – Bayside Room 5

Session Chair: Madhu Veeraraghavan (Monash University)

2.00 PM – 2.30 PM Divergence of Opinion, Short-Sale Constraints and the Weekend EffectYiwen (Paul) Dou (Macquarie University)Discussant: Subhrendu Rath (Curtin University of Technology)

2.30 PM – 3.00 PM Does Leverage Matter?Robert B. Durand, Subhrendu Rath (Curtin University of Technology)Discussant: Edward J. Podolski (Monash University)

3.00 PM – 3.30 PM National Culture and Cash Holdings Around the WorldCameron Truong, Yangyang Chen (Monash University), Yiwen (Paul) Dou (Macquarie University), Ghon Rhee (University of Hawaii), Madhu Veeraraghavan (Monash University). Discussant: Darren Henry (La Trobe University)


La Trobe University


CONCURRENt SESSION FIVE: 4.00 PM – 5.30 PM


Session Chair: Peter Lam (University of Technology, Sydney)

4.00 PM– 4.30 PM Price Discovery in the Corporate Bond Market: The Informational Role of Short InterestPaul A. Griffin (University of California), Hyun Hong (University of Memphis)Discussant: Huu Nhan Duong (Monash University)

4.30 PM– 5.00 PM Audit Firm Rotation in the Public Sector: Implications for Earnings QualityChristofer Adrian, Sue Wright, Kym Cherie Butcher (Macquarie University)Discussant: Arifur Khan (Deakin University)

5.00 PM– 5.30 PM Market Reaction to Resource and Reserve Disclosures by Development Stage Mining CompaniesGabriel Pereira Pundrich, Andrew Ferguson, Robert M. J. Czernkowski (University of Technology, Sydney)Discussant: Mamiza Haq (University of Queensland)


Session Chair: James Routledge (Bond University)

4.00 PM– 4.30 PM Board Gender Diversity and Going Concern Audit OpinionsLarelle Law Chapple (Queensland University of Technology), Pamela Kent (Bond University), James Routledge (Bond University)Discussant: Nigar Sultana (Curtin University of Technology)

4.30 PM– 5.00 PM The Value Relevance of Board Gender Diversity for NZX Listed Firms and its Association with Growth OptionsKeitha Dunstan (Bond University), Trish Keeper, Thu Phuong Truong, Tony van Zijl (Victoria University of Wellington)Discussant: Ray McNamara (Bond University)

5.00 PM– 5.30 PM Performance of Family Firms During the Global Financial Crisis: Does Governance Matter?Husam Alderman, Keith Duncan, Simone Kelly, Ray McNamara (Bond University)Discussant: Yuan George Shan (University of Adelaide)

Session 5.3: Social Responsibility – Bourke Room 2

Session Chair: Joe Christopher (Curtin University of Technology)

4.00 PM – 4.30 PM Rethinking Directors’ Duties, Governance and RegulationShann Turnbull (International Institute for Self-Governance)Discussant: Ahmad Ibn Ibrahimy (University of Malaya)

4.30 PM – 5.00 PM The Determinants of Regulatory Compliance Costs of Non-Listed Small Corporations in AustraliaYongqiang Li, Anona Armstrong, Andrew Clarke (Victoria University, Australia)Discussant: Ebenezer Bennet (Bharathidasan University)

5.00 PM – 5.30 PM Implementing Corporate Responsibility Through Stakeholder EngagementChristopher Deeley and Elizabeth Dunlop (Charles Sturt University)Discussant: Joe Christopher (Curtin University of Technology)

Session 5.4: Financial Markets – Bourke Room 3

Session Chair: Lily Nguyen (La Trobe University)

4.00 PM – 4.30 PM Institutional Investors, Private Information, and the Cost of CapitalLily Nguyen, Xiangkang Yin (La Trobe University), Hoang Luong (University of New South Wales)Discussant: Mark Humphery-Jenner (University of New South Wales)

4.30 PM – 5.00 PM High Frequency Trading, Information, and TakeoversMark Humphery-Jenner (University of New South Wales)Discussant: Huu Nhan Duong (Monash University)

5.00 PM – 5.30 PM The Impact of Disclosure Reform and Alternative Sources of Earnings-Related Information on the Market Reaction to Firm-Based Earnings-Related DisclosuresKeitha Dunstan (Bond University), Thu Phuong Truong (Victoria University of Wellington)Discussant: Gabriel Pereira Pundrich (University of Technology, Sydney)



La Trobe University




CONCURRENt SESSION FIVE: 4.00 PM – 5.30 PM

Session 5.5: Corporate Governance II – Bayside Room 5

Session Chair: Hardjo Koerniadi (Auckland University of Technology)

4.00 PM – 4.30 PM Corporate Governance, Financing Patterns and the Cost of Capital: Evidence from New Zealand CompaniesHardjo Koerniadi, Alireza Tourani-Rad (Auckland University of Technology)Discussant: Guanming He (Nanyang Technological University)

4.30 PM – 5.00 PM Boards of a Feather Flock Together: Board Networks Among ASX FirmsDane Rees Etheridge (Curtin University of Technology)Discussant: Meinanda Kurniawan (Queensland University of Technology)

5.00 PM – 5.30 PM Effect of Managerial Ownership of Debt on Financial Reporting Quality and Stock Price Crash RiskGuanming He (Nanyang Technological University)Discussant: Hardjo Koerniadi (Auckland University of Technology)

Session 5.6: Accounting/Corporate Finance – Bayside Room 6

Session Chair: Aaron Gilbert (Auckland University of Technology)

4.00 PM – 4.30 PM Appointment of Politically Connected Top Executives and Subsequent Firm Performance and Corporate Governance: Evidence from China’s Listed SOEsFang Hu (Griffith University), Sidney Leung (City University of Hong Kong)Discussant: Liu Qigui (University of Wollongong)

4.30 PM – 5.00 PM Auditor Industry Specialisation and Market Segmentation: Evidence from the Perth Mining Cash-Box MarketAndrew Ferguson, Gabriel Pereira Pundrich, Adrian Michael Raftery (University of Technology, Sydney)Discussant: Xu-Dong Ji (La Trobe University)

5.00 PM – 5.30 PM State Individualism, CEO Overconfidence and Corporate TakeoversYangyang Chen, Edward J. Podolski (Monash University), Ghon Rhee (University of Hawaii) , Cameron Truong, Madhu Veeraraghavan (Monash University)Discussant: Aaron Gilbert (Auckland University of Technology)

FRIDAY 13tH APRIL 2012ARRIVAL tEA AND REGIStRAtION (PRE-FUNCtION BREAKOUt AREA): 8.00 AMCONCURRENt SESSION SEVEN: 8.30 AM – 10.00 AM SESSION


Session Chair: Thu Phuong Truong (Victoria University of Wellington)

8.30 AM – 9.00 AM Comparative Prediction Relative to Reporting of Operating Cash Flows for Tehran Stock Exchange – Listed CompaniesDaruosh Foroghi, Alireza Vafaei (La Trobe University), Afshar Afshe DarvishiDiscussant: Thu Phuong Truong (Victoria University of Wellington)

9.00 AM – 9.30 AM Does an End of Period’s Accounting Variable Assessed have Relevance for the Particular Period?Samithamby Senthilnathan (Eastern University, Sri Lanka)Discussant: Alireza Vafaei (La Trobe University)

9.30 AM – 10.00 AM Volatility and Risk-Relevance of Comprehensive IncomeShahwali Khan (Massey University)Discussant: Samithamby Senthilnathan (Eastern University, Sri Lanka)

SESSION SIX: CONFERENCE DINNER – LEVEL 17. 7.30 PM – 11.00 PM

Welcome Address – Geoff Durden (La Trobe University)

Address by 2013 Conference Chair – Tony van Zijl (Victoria University of Wellington)

FCGC Lifetime Outstanding Achievement Award 2012 to Professor Philip Brown – Robert Faff (University of Queensland)

Plenary speech III – Renée Adams (University of New South Wales). Boards, Regulators and MonkeysPresentation of Awards

thanking Note – Balasingham Balachandran (La Trobe University)


La Trobe University


CONCURRENt SESSION SEVEN: 8.30 AM – 10.00 AM


Session Chair: Peter Kien Pham (University of New South Wales)

8.30 AM – 9.00 AM Why Do Foreigners Become Blockholders? Theory and Evidence Jason Zein, Peter Kien Pham, Fariborz Moshirian (University of New South Wales)Discussant: Moez Bennouri (Rouen Business School, France)

9.00 AM – 9.30 AM Does Auditors’ Reputation Discourage Related Party Transactions? The French CaseMoez Bennouri (Rouen Business School), Mehdi Nekhili (Université de Reims), Philippe Touron (Université Paris Panthéon-Sorbonne)Discussant: Peter Kien Pham (University of New South Wales)

9.30 AM – 10.00 AM Can Socially Responsible Firms Survive Competition? An Analysis of Corporate Employee Matching GrantsNing Gong (University of Melbourne)Discussant: Yunieta Nainggolan (Auckland University of Technology)

Session 7.3: Corporate Governance II – Bourke Room 2

Session Chair: Richard Heaney (University of Western Australia)

8.30 AM – 9.00 AM Corporate Governance Legal Reforms and Equity Prices in MalaysiaBee-Wah Grace Ooi, Nuttawat Visaltanachoti (University of Auckland)Discussant: Pascal Nguyen (University of Technology, Sydney)

9.00 AM – 9.30 AM Are Busy Directors Good for BusinessRichard Heaney (University of Western Australia), Larry Li, Monica Tan (RMIT University)Discussant: Michaela Rankin (Monash University)

9.30 AM – 10.00 AM Monitoring Style Drift: Evidence from Equity FundsMeinanda Kurniawan, Janice C. Y. How, Peter Verhoeven (Queensland University of Technology)Discussant: Alireza Tourani-Rad (Auckland University of Technology)

Session 7.4: Corporate Governance III – Bourke Room 3

Session Chair: Keith Duncan (Bond University)

8.30 AM – 9.00 AM Disproportional Ownership Structure and Stock Market Liquidity in ChinaGary Tian (University of Wollongong), Xiaojun Chu (Nanjing University of Science and Technology), Liu Qigui (University of Wollongong)Discussant: Fang Hu (Griffith University)

9.00 AM – 9.30 AM Corporate Governance and Risk Management: The Role of Risk Management and Compensation CommitteesMarion Hutchison, Ngoc Tao (Queensland University of Technology)Discussant: Keith Duncan (Bond University)

9.30 AM – 10.00 AM Why Do Firms Go Private in Australia?Subhrendu Rath, Mamunur Rashid (Curtin University of Technology)Discussant: Hung Do Quang (La Trobe University)

Session 7.5: Financial Markets – Bayside Room 5

Session Chair: Eliza Wu (University of Technology, Sydney)

8.30 AM – 9.00 AM The Home Stigma: Adverse Selection in ADRs and the Home Capital Market EnvironmentQiaoqiao Zhu (Australian National University)Discussant: Eliza Wu (University of Technology, Sydney)

9.00 AM – 9.30 AM Exchange Trading Rules, Governance, and Trading Location of Cross-Listed StocksDouglas J. Cumming (York University), Mark Humphery-Jenner (University of New South Wales), Eliza Wu (University of Technology, Sydney)Discussant: Qiaoqiao Zhu (Australian National University)

9.30 AM – 10.00 AM Pre-Trade Transparency and the Information Content of the Limit-Order BookHuu Nhan Duong (Monash University), Petko Kalev (University of South Australia), Yang SunDiscussant: Lee Smales (University of New South Wales)



La Trobe University



CONCURRENt SESSION SEVEN: 8.30 AM – 10.00 AM

Session 7.6: Corporate Finance – Bayside Room 6

Session Chair: Peter Lam (University of Technology, Sydney)

8.30 AM – 9.00 AM Natural Disasters – Blessings in Disguise?Hardjo Koerniadi (Auckland University of Technology), Chandrasekhar Krishnamurti (University of Southern Queensland), Alireza Tourani-Rad (Auckland University of Technology)Discussant: Tze Chuan Ang (University of Melbourne)

9.00 AM – 9.30 AM Stock-Specific Factors and its Influence on Investors. Sentiment: Evidence from Indian Stock MarketEbenezer Bennet (Bharathidasan University)Discussant: Chandrasekhar Krishnamurti (University of Southern Queensland)

9.30 AM – 10.00 AM Is High Cash Flow a Blessing or a Curse? Evidence from Bidders. Long-Run PerformancePeter Lam (University of Technology, Sydney), Lin (Jack) Li, Wilson H.S. Tong (Hong Kong Polytechnic University)Discussant: Madhu Veeraraghavan (Monash University)


LUNCH (PRE-FUNCtION BREAKOUt AREA): 1.00 PM – 2.00 PM CONCURRENt SESSION tEN: 2.00 PM – 3.30 PM

Session 10.1: Corporate Governance – theatrette

Session Chair: Jerry Bowman (University of Auckland)

2.00 PM – 2.30 PM Firm-Level Corporate Governance, Multinationality, and the Foreign Exchange Exposure of Us CorporationsElaine Hutson (Monash University), Elaine LaingDiscussant: Jerry Bowman (University of Auckland)

2.30 PM – 3.00 PM The Positive Impact of Corporate Governance on Foreign Equity Ownership: Evidence from KoreaRobert G. Bowman (University of Auckland), Byung Min (Griffith University)Discussant: Elaine Hutson (Monash University)

3.00 PM – 3.30 PM Multiple Large Shareholders and Corporate Risk-Taking: Evidence from FranceSabri Boubaker (Champagne School of Management), Pascal Nguyen (University of Technology, Sydney), Wael Rouatbi (EFI, ESSEC Tunis)Discussant: Bee-Wah Grace Ooi (University of Auckland)

MORNING tEA (PRE-FUNCtION BREAKOUt AREA): 10.00 AM – 10.30 AMSESSION EIGHt: PLENARY IV & V – BOURKE ROOM 1

Plenary Speech IV: Bourke Room 1 – 10.30 AM – 11.15 AM – Professor Ferdinand A. Gul (Monash University, Sunway campus)The Role and Consequences of Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Equity Compensation

Session Chair: Kamran Ahmed (La Trobe University)

Plenary Speech V: Bourke Room 1 – 11.15 AM – 12.00 NOON – Professor John S. Howe (University of Missouri-Columbia)What Do We Know about Corporate Governance?

Session Chair: Janice How (Queensland University of Technology)

SESSION NINE: BOURKE ROOM 1 – 12.15 PM – 1.00 PM

Representative from the Australia-New Zealand Shadow Financial Regulatory Committee – Professor Kevin Davis (Australian Centre for Financial Studies)Dealing with Systemically Important Financial Institutions

Session Chair: Alireza Tourani-Rad (Auckland University of Technology)


La Trobe University


CONCURRENt SESSION tEN: 2.00 PM – 3.30 PM

Session 10.2: Financial Markets – Bourke Room 2

Session Chair: Stefan Petry (University of Melbourne)

2.00 PM – 2.30 PM Counterparty Risk in Retail Markets During the 2007-2009 Financial CrisisStefan Petry (University of Melbourne)Discussant: Jing Zhao (La Trobe University)

2.30 PM – 3.00 PM Whats in a Price? Measuring the Value of Exchange Data FeesSean Foley (University of Sydney)Discussant: Stefan Petry (University of Melbourne)

3.00 PM – 3.30 PM TBA

Session 10.3: Banking/Finance – Bourke Room 3

Session Chair: Michael Dempsey (Monash University)

2.00 PM – 2.30 PM The Determinants of Target Cash Holdings and Adjustment Speeds: An Empirical Analysis of Chinese FirmsLakshman Alles (Curtin University of Technology), Yujun Lian (Sun Yat-sen University), Claire Y Xu (Zhejiang Gongshang University)Discussant: Michael Dempsey (Monash University)

2.30 PM – 3.00 PM Grey Market for Indian IPOs: Investor Sentiment and After-Market PerformanceChandrasekhar Krishnamurti (University of Southern Queensland), Tiong Yang Thong (SMU), Vishwanath Ramanna (T A Pai Management Institute)Discussant: Wasantha Perera (Victoria University, Australia)

3.00 PM – 3.30 PM The Impact of Global Financial Crisis on Mortgage Pricing and Credit SupplyAngela Lou, Xiangkang Yin (La Trobe University)Discussant: Irfan Akbar Kazi (Université Paris / Panthéon-Sorbonne)

Session 10.4: Corporate Governance and Finance – Bayside Room 5

Session Chair: Adrian Lee (University of Technology, Sydney)

2.00 PM – 2.30 PM Top Executive Team Remuneration, Performance and Governance in the Australian Finance SectorMichaela Rankin, (Monash University)Discussant: Richard Heaney (University of Western Australia)

2.30 PM – 3.00 PM Does the Carbon Market Help or Hurt the Stock Price of Electricity Companies? Further Evidence from the European ContextYuan Tian, Alexandr Akimov, Eduardo Roca, Victor Wong (Griffith University)Discussant: Adrian Lee (University of Technology, Sydney)

3.00 PM – 3.30 PM Contracts for Dummies? The Performance of Individual Investors in Contracts for DifferenceAdrian Lee, Shan Choy (University of Technology, Sydney)Discussant: Yuan Tian (Griffith University)

Session 10.5: Accounting – Bayside Room 6

Session Chair: Nava Subramaniam (Deakin University)

2.00 PM – 2.30 PM The Voluntary Formation of an Audit CommitteeYige Ma, Alan Kilgore, Sue Wright (Macquaire University)Discussant: Nava Subramaniam (Deakin University)

2.30 PM – 3.00 PM Family Firm, Audit Fee and Auditor Choice: Australian EvidenceArifur Khan, Nava Subramaniam (Monash University)Discussant: Alireza Vafaei (La Trobe University)

3.00 PM – 3.30 PM Earnings Conservatism and the Influence of Audit Committee Effectiveness ComponentsNigar Sultana (Curtin University of Technology)Discussant: James Routledge (Bond University)



La Trobe University



FRIDAY 13 APRIL, 2012VENUE – RACV CLUB, BOURKE ROOM 1, 501 BOURKE StREEt, MELBOURNE

Panel Session 1: Bank Regulation and Performance – Bourke Room 1 (2.00 PM – 3.30 PM)

Session Chair: Professor Kevin Davis, Research Director, Australian Centre for Financial Studies

Panellists:• RobertJohanson (Chairman, Bendigo and Adelaide Bank Limited)• Sarah Lowe (Banking Partner, Ernst & Young)• Rod Maddock (Executive General Manager, Strategy, Commonwealth Bank of Australia) • Craig Williams (Director Banks, Citi Investment Research).

The session will cover issues such as the following:• Areweatriskofover-regulatingbanks,andifsowhataretheconsequences?• Whatparticularaspectsofcurrentregulatorymeasures/proposals/trendsareofmostconcern,andwhichseemtohavethemostmerit?• InwhatwaysisthedevelopmentofAustralianfinancialregulationsimplyadheringtointernationaltrendsordeviatingfromthat–andwhy?• Aretherefeaturesofactual/contemplatedregulationinothermajornationswhichwemightconsideradoptinghere(e.g.VolckerrulefromUS,

retail ring fencing from UK, financial transactions tax from EU) Do the major banks need special regulatory treatment by virtue of being SIFI’s? • AreAustralianbanksexcessivelyprofitableandifsowhy?• ShouldtheGovernmentbeseekingtoinfluencethestructureofthefinancialsystem(e.g.lessconcentrationinbanking,lesserroleforbanks

in ‘non-banking’ activities etc.)?

Panel Session 2: Funds Management: Fees and Performance – Bourke Room 1 (4.00 PM – 5.30 PM)

Session Chair: Prof Deborah Ralston, Executive Director, Australian Centre for Financial Studies

Panellists: • JohnBeggs (Chief Executive Officer, MIR Investment Management (Pty) Ltd)• Bill Buttler (Principal, Rice Warner Actuaries)• Kristian Fok (Deputy Director of Consulting, Frontier Investment Consulting Pty Ltd) • Maria Wilton (Managing Director, Franklin Templeton).

This session will consider issues related to the determination of fee structures for fund managers, their relationship to performance, and measures of performance.

Potential questions which can be addressed include:• Howarefeescurrentlygenerallystructured,andarethereanytrendsemerginginfeesettingarrangements?• Whataretherisksintherelationshipbetweeninvestorsandfundmanagers(e.g.terminationofmandates)andhowaretheseshared?• Doactivemanagersaddvalue?• Arecurrentlyusedmeasuresofrisk-adjustedperformanceadequate?• Isthereadequatecompetition/contestabilityinthefundsmanagementsector(forvariousassetclasses)andhowmuchentry/exit/

merger activity occurs? • Howimportantisscaleinthefundsmanagementindustry?• Inwhatways,ifany,(otherthanthemandateterms)isthenatureoftheclientinvestor(superfund,highnetworth,institutional)ofparticular

concern to the fund manager? • Howwelldoinvestorsknowwhatrangeoffeestructuresandlevelsarecurrentlyprevailinginthemarketplace?• Whatcriteriadoinvestorsuseinselectingfundmanagers(e.g.relevanceofpastperformance,personneletc.)?• Whensuperfundstakethefundsmanagementfunctioninternally,whatfeestructuresshouldtheybeapplyingintheirinternalcostallocations?• Isthereacapacityconstraintinassetmanagement?• Howdoesitworkandhowshoulditaffectfees?

Practitioners Sessions

21Practitioners Sessions

La Trobe University


Members of the Executive Committee


Members of the Executive Committee

•AssociateProfessorBalasinghamBalachandran(LaTrobeUniversity)

•ProfessorGlennBoyle(UniversityofCanterbury)

•ProfessorLeighDrake(LaTrobeUniversity)

•ProfessorRobertDurand(CurtinUniversityofTechnology)

•ProfessorRobertFaff(UniversityofQueensland)

•ProfessorJaeKim(LaTrobeUniversity)

•ProfessorPaulMather(LaTrobeUniversity)

•ProfessorDeborahRalston(AustralianCentreforFinancialStudies)

•ProfessorMichaelTheobald(UniversityofBirmingham)

•ProfessorTonyvanZijl(VictoriaUniversityofWellington)

•AssociateProfessorPeterVerhoeven(QueenslandUniversityofTechnology)

•AssociateProfessorSueWright(MacquarieUniversity)

Conference Chair

Associate Professor Balasingham Balachandran (La trobe University)

PhD Symposium Chair

Associate Professor Peter Verhoeven (Queensland University of technology)

22 Members of the Executive Committee

La Trobe University



2013 Conference

4th Conference on Financial Markets and Corporate Governance

3 – 5 April 2013

Hosted by: Centre for Accounting, Governance and taxation Research

School of Accounting and Commercial LawSchool of Economics and Finance

Victoria University of Wellington

For further information, please visit the following link: www.victoria.ac.nz/fcgc

Major Sponsors:

Prize sponsors:

Other sponsors:

Documents

Financial Markets and Corporate Governance Conference