Your Governance or Mine?

Ferguson, A; Grosse, M; Kean, S; Scott, T

Your Governance or Mine?

Ferguson, A

Grosse, M

Kean, S Scott, T

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Publication Type:: Journal Article
Citation:: Australian Accounting Review, 2011, 21 (4), pp. 406 - 417
Issue Date:: 2011-12-01

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Field	Value	Language
dc.contributor.author	Ferguson, A https://orcid.org/0000-0003-0535-0643	en_US
dc.contributor.author	Grosse, M https://orcid.org/0000-0001-9156-4351	en_US
dc.contributor.author	Kean, S	en_US
dc.contributor.author	Scott, T https://orcid.org/0000-0002-8694-6344	en_US
dc.date.issued	2011-12-01	en_US
dc.identifier.citation	Australian Accounting Review, 2011, 21 (4), pp. 406 - 417	en_US
dc.identifier.issn	1035-6908	en_US
dc.identifier.uri	http://hdl.handle.net/10453/18893
dc.description.abstract	In response to criticism directed at the resource sector's corporate governance, this paper examines the corporate governance and underlying firm characteristics of resource development stage entities (DSEs) relative to a size-matched sample of non-resource firms. We find that resource DSEs have different governance characteristics in the measures of board independence, chair/CEO duality and CEO cash bonuses. Furthermore, there are differences in the information environment measures of analyst following, debt levels, stock market return and stock turnover. Considering we document substantial differences in underlying firm characteristics, corporate governance differences are likely appropriate to the mining industry and should not be uniformly labelled as 'bad'. Our results suggest that media rankings based on corporate governance scores may not accurately portray the resource sector. Overall, our results are of interest to Australian investors and regulators and contribute to a broader understanding of contextually contingent corporate governance. © 2011 CPA Australia.	en_US
dc.relation.ispartof	Australian Accounting Review	en_US
dc.relation.isbasedon	10.1111/j.1835-2561.2011.00147.x	en_US
dc.title	Your Governance or Mine?	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	21	en_US
utslib.for	150103 Financial Accounting	en_US
utslib.for	1499 Other Economics	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	21	en_US

Abstract:

In response to criticism directed at the resource sector's corporate governance, this paper examines the corporate governance and underlying firm characteristics of resource development stage entities (DSEs) relative to a size-matched sample of non-resource firms. We find that resource DSEs have different governance characteristics in the measures of board independence, chair/CEO duality and CEO cash bonuses. Furthermore, there are differences in the information environment measures of analyst following, debt levels, stock market return and stock turnover. Considering we document substantial differences in underlying firm characteristics, corporate governance differences are likely appropriate to the mining industry and should not be uniformly labelled as 'bad'. Our results suggest that media rankings based on corporate governance scores may not accurately portray the resource sector. Overall, our results are of interest to Australian investors and regulators and contribute to a broader understanding of contextually contingent corporate governance. © 2011 CPA Australia.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/18893