Partner In Firm Research Articles

The Governance Implications From Presence of Long-Term Foreign Investment Partner in West African IPO Firms

The attraction of blue-chip listings in emerging stock markets is a major policy initiative common across much of the developing world. However in many cases the local blue-chip entities are the result of foreign multinational enterprises (MNEs) firms engaging with local partners to form international joint ventures (IJVs) with the local IPO (initial public offerings) listing the result of the necessity to indigenize ownership as well as political pressures to boost fledgling emerging stock markets, thereby attracting investment. Using a unique hand-collected sample of 51 IPO firms from a West African region which is characterised by both an abundance of natural resources as well as considerable variation in state-level institutional quality evidence is revealed of limited protection of minority outsider property rights from the implementation of board governance mechanisms such as higher proportions of independent nonexecutives and independent committees. In the light of weak state-level institutional quality and lower levels of nonexecutives with sufficient ownership rights to effectively question decisions by executives and management the evidence suggests outsider investors are at risk from expropriation by insiders. These results underscore the importance of institutional development at state level as a mechanism of ensuring good governance at firm-level.

Effect of Lateral Partners on Law Firm Performance

We examine how employee mobility influences firms’ performance by focusing on lateral partners in law firms. We also examined how the effect of lateral partner hiring on law firm performance would ...

Gender Gaps in Performance: Evidence from Young Lawyers

This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike other high-skilled professions, the legal profession assesses performance using transparent measures that are widely used and comparable across firms: the number of hours billed to clients and the amount of new client revenue generated. We find clear evidence of a gender gap in annual performance with respect to both measures. Male lawyers bill ten percent more hours and bring in more than twice the new client revenue than do female lawyers. We demonstrate that the differential impact across genders in the presence of young children and differences in aspirations to become a law firm partner account for a large share of the difference in performance. We also show that accounting for performance has important consequences for gender gaps in lawyers’ earnings and subsequent promotion. Whereas individual and firm characteristics explain up to 50 percent of the earnings gap, the inclusion of performance measures explains a substantial share of the remainder. Performance measures also explain a sizeable share of the gender gap in promotion.

Proposed Amendments to Special Taxation for Partnership Firms Regime upon Introduction of New Forms of Business Organizations ―With Reference to Partnership Taxation Regime of the US―

Proposed Amendments to Special Taxation for Partnership Firms Regime upon Introduction of New Forms of Business Organizations ―With Reference to Partnership Taxation Regime of the US―

Private Equity and the Concept of Brittle Trust

This paper focuses on private equity in the UK and is set in the context of debates about transformations in the City of London. The article focuses on a particular concept of trust as expressed by senior members of the private equity sector. The argument developed is based on interviews with five senior founding partners of private equity firms who talked to us about their background and education, their understanding of how private equity worked and the basis for successful money making and their relationships with those inside and outside the organization. All interviewees strongly asserted the need for absolute trust between senior partners as an essential condition for the successful operation of their business. At the same time, their description of trust in this context was that while it is deep, it is also easily broken, and that once broken, the breach cannot be forgiven. We call this ‘brittle trust’: asserted to be simultaneously strong while extremely fragile. The paper argues, drawing on Diego Gambetta's work on the Sicilian Mafia, that this concept of ‘trust’ reflects a particular understanding of the practice of private equity as a high risk, tough and unforgiving business that nevertheless requires high standards of personal integrity. The study allows us to understand something more about the social ideals that were built into this financial sector by its founders, which we argue formed a crucial part of the transformation of the financial sector.

The Emerging Urban Co-Operative Banks (Ucbs) In India: Problems and Prospects

Urban Co-operative banking Sector is an important constituent of Multi Agency banking system operation in the country. These institutions play an important role in the economic enlistment of lower and middle-income group of persons. The Reserve Bank of India in its annual report on trends and progress in banking states that urban banks are important purveyors of credit to small borrowers and to weak sections of the society but is not coming out with any supportive policies that will strengthen the role of UCBs. I. Introduction: Urban Co-operative Banks The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary co- operative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, work place groups. They essentially lend to small borrowers and businesses. Today, their scope of operations has widened considerably. Urban cooperative banks were set up with the objective of promoting sustainable banking practices amongst relatively specific target clientele viz., the middle income strata of the urban population. They were brought under the regulatory ambit of the Reserve bank by extending certain provisions of the banking regulation act, 1949, effective from march 1, 1966. Background of UCBs The origins of the urban co-operative banking movement in India can be traced to the close of nineteenth century. Inspired by the success of the experiments related to the cooperative movement in Britain and the co-operative credit movement in Germany, such societies were set up in India. Co-operative societies are based on the principles of cooperation, mutual help, democratic decision making, and open membership. Cooperatives represented new and alternative approach to organization as against proprietary firms, partnership firms, and joint stock companies which represent the dominant form of commercial organization. They mainly rely upon deposits from members and non-members and in case of need, they get finance from either the district central co-operative bank to which they are affiliated or from the apex co-operative bank if they work in big cities where the apex bank has its Head Office. They provide credit to small scale industrialists, salaried employees, and other urban and semi-urban residents. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. A co-operative bank is defined as a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. The term Urban Cooperative Banks (UCBs), although not formally defined, refers to the primary cooperative banks located in urban and semi-urban areas. These banks, until 1996, were allowed to lend money only to non-agricultural purposes. This distinction remains today. These banks have traditionally been around communities, localities working out in essence, loans to small borrowers and businesses. Today their scope of operation has expanded considerably. Status of UCBs in India: Indian Banking system is on its sound footing UCBs in India are playing major role in servicing rural

Gender Gaps in Performance: Evidence from Young Lawyers

This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike other high-skilled professions, the legal profession assesses performance using transparent measures that are widely used and comparable across firms: the number of hours billed to clients and the amount of new client revenue generated. We find clear evidence of a gender gap in annual performance with respect to both measures. Male lawyers bill ten percent more hours and bring in more than twice the new client revenue than do female lawyers. We demonstrate that the differential impact across genders in the presence of young children and differences in aspirations to become a law firm partner account for a large share of the difference in performance. We also show that accounting for performance has important consequences for gender gaps in lawyers' earnings and subsequent promotion. Whereas individual and firm characteristics explain up to 50 percent of the earnings gap, the inclusion of performance measures explains a substantial share of the remainder. Performance measures also explain a sizeable share of the gender gap in promotion.

Developmental Practices, Organizational Culture, and Minority Representation in Organizational Leadership

Explanations of minority underrepresentation among organizational managers have focused primarily on either employee deficits in human and social capital or employer discrimination. To date, research has paid little attention to the role of developmental practices and related cultural values within organizations. Using data on large U.S. law firms, the authors investigate the role of formal developmental practices and cultural values in the representation of three minority groups among firm partners: African Americans, Latinos, and Asian Americans. The authors find that formal practices and cultural values intended to aid employee growth and development do not “level the playing field” for minorities. Formal training and mentoring programs do not increase minority presence, while a longer time period to promotion, a cultural commitment to professional development, and a cultural norm of early responsibility are all negatively associated with minority representation. Although the pattern is broadly similar across all three groups, some effects vary in interesting ways.

General commentary on European Union corporate governance proposals

is a lawyer, certifi ed management consultant and Associate Professor of Law, Governance & Ethics at York University. He holds a PhD focusing on board of director effectiveness. He has published in leading academic and practitioner journals, advised regulators on corporate governance guidelines, and, as part of his external professional activities, has served as an external board evaluator and governance advisor for ASX, LSE, NYSE, NZ, NASDAQ and TSX companies, as well as in an expert witness capacity in litigation concerning corporate governance reforms. is Managing Director and owner of Artemis Management Group, a company specializing in investment banking services to small and emerging growth enterprises. Previously, John was a partner in a Toronto law fi rm and an investment banker with major investment fi rms in the United States and Canada. Bankes is a director of a number of listed companies, private companies and non-profi t enterprises. He is a graduate of Queen ’ s, York and Harvard Universities and has been an adjunct professor in corporate law at Osgoode Hall Law School. is a consultant to the fi nancial services industry. Among other clients, he has advised the Task Force to Modernize Securities Legislation in Canada and the Investment Industry Regulatory Organization of Canada (IIROC) as well as fund managers and dealers. He has developed several courses for the IFSE Institute, the educational services arm of the Investment Funds Institute of Canada. He was previously an investment director at a major institutional investor where he acquired fi rst-hand experience of investment products. Fok Kam holds a BSc (Economics) with First Class Honours from the London School of Economics and an MBA from McGill University.

A Comparison Of Educators And CPA Practitioners Views On Communication Training In The Accounting Curriculum

Educators, practitioners and others have criticized the universities for not providing adequate communication training to their accounting students. Gingras (1987) conducted a survey of CPAs concerning the importance and overage of written communication skills in business schools. This study compares the perceptions of educators and CPAs regarding the importance of written communication skills to a CPA, the coverage of written communication skills in the accounting curriculum and the relative importance of a list of writing activities performed by a CPA. The focus groups include university professors, and staff assistants, senior, managers and partners of public accounting firms. The responses analyzed using the ANOVA technique, indicate that coverage of communication skills is relatively low and most accounting students take only one writing course in their college curriculum. Educators and practitioners recommend general writing related courses as the appropriate instruction in the accounting curriculum. Many respondents believe that to be successful in the profession, accounting students should increase their writing skills by studying grammar, punctuation and spelling and by taking more courses than are currently required in most business curricula. In addition, significant differences between educators and CPAs responses are analyzed and discussed.

Financial Incentives For Graduate Tax Education Offered By Public Accounting Firms

Partners in public accounting firms recognize the benefit of a graduate degree for future advancement in the tax service area. To study if firms are offering financial incentives to encourage and reward individuals in the tax service area who seek graduate degrees, a questionnaire was sent to 592 personnel partners in public accounting firms. The results indicate the types of support that public account firms are willing to provide for graduate tax education.

Gender-Based Differences Of Partners In CPA Firms: Evidence From Kentucky

This paper investigates whether a relationship exists between situation-centered factors and the holding of partner status in a public accounting firm, and to determine if gender differences exist in the relationship between these variables. From a sample of 1227 Kentucky public accountants, it was found that the population of a county, number of other partners and associates in a firm, and years of experience are significantly related to the holding of partner status. However, women are less likely to be a partner in a firm with a larger number of associates and population does not appear to influence a womans chances of being a partner. The authors discuss the implications of these findings for practicing public accountants and provide suggestions for future research.

Overcoming Relational Inertia

This paper examines how organizational members overcome relational inertia and contribute to integration and value creation following an acquisition, through an analysis of a large law firm’s acquisition of two smaller firms. When merging law firm partners share clients with one another, both within and across the boundaries of the formerly separate firms, they create new relationships that connect the organizational units together. We examine both the antecedents and consequences of post-acquisition integration through client sharing. Drawing on network theory, we consider how the configuration of prior referral relationships influences new sharing of clients undertaken by individual partners. We also use the prior referral-network structure to predict which partners will cut their former intraunit client-sharing ties. To ascertain how client sharing creates value for the combined organization, we analyze the effects of client sharing on revenue generation and human capital development. Our findings uncover a paradox in integration behavior: the same referral-network structures that contribute to integration by increasing interunit sharing also tend to detract from integration because they are associated with cutting existing intraunit ties. We also find that interunit client sharing is positively associated with revenue generation but negatively associated with human capital development. Overall, this research advances a relational perspective on post-acquisition integration and sheds new light on how networks are formed and become reconfigured inside organizations.

Women, Private Practice and Billable Hours

Women have been entering law schools in record numbers over the past two decades. In fact, they currently outnumber men in many law schools in the United States and Canada. However, they face several barriers to full integration in law firms. As a result, many of them are leaving in droves. In this article, the authors examine one of the issues—the billable hours pay system—that prevents them from becoming partners in law firms. After critically examining the role and impact of the billable hours’ culture on women lawyers, and drawing on the total rewards strategy used in some organizations, the authors offer modest recommendations for changing the pay system.

Auditors’ Organizational Form, Legal Liability, and Reporting Conservatism: Evidence from China*

This study uses a unique institutional setting in China to investigate empirically the association between the organizational form of CPA firms (unlimited liability versus limited liability) and the reporting conservatism of auditors. Based on a sample of 5,007 audits of Chinese listed companies from the period of 2000 to 2004, we find that auditors in unlimited liability partnership firms are more likely to issue modified audit opinions than are auditors in limited liability CPA firms. This auditor conservatism stems from distressed firms with going-concern opinions, and we find no statistical evidence that partnerships give more modified opinions for non-distressed firms. In addition, auditors are less likely to issue modified reports after they incorporated the firm in the limited liability form. These analyses support our hypothesis that a limited liability regime induces lower auditor reporting conservatism. Our study contributes to the broader debate on liability reform in the auditing profession.

Legal Discrimination? Alternatives to Traditional Linear Equity Partnerships and Flexible Employment for Female Attorneys at U.S. Law Firms

As the legal profession gradually reaches equality in numbers among male and female practitioners, the percentage of female law firm partners remains at relatively low levels. Equity partnership in a law firm remains the last bastion of male dominance, shutting the door on sharing the wealth within the profession. As stated by Reichman and Sterling, compensation disparity is clearly the foundation of gender disparity. However, the increase in female attorneys during the post-feminist era has also brought about a critical mass of women who do not want to participate in the years of long hours and high billable hours that many firms require on the partnership track. In an attempt to keep institutional knowledge, many law firms have designed retention programs for young female lawyers that include part-time work that allows time for raising small children, and non-equity partnership tracks that do not require the arduous hours required for an equity partnership. But does this solve the problem of low levels of female partnerships? This article looks at historical basis and current trends of law firm partnerships, the use of two-tier partnership structures, and gives suggestions on how to increase levels of female partnerships.

Tampa Bay Sporting Goods Inc. Case

Providing accounting services is a business. Since business functions in a world of competition and opportunities, accountants must be willing to compete and to seize opportunities. Wrapped around a traditional core of year-end accrual accounting issues and procedures, Tampa Bay Sporting Goods Inc. case makes students experience accounting as a people business. Accounting firm partners compete for clients. Staff accountants compete to get noticed by partners. When a retail business booms so rapidly that it outgrows current accounting services, an opportunity exists for an aggressive accounting firm to prove the value that it can provide to its clients. Accounting firms must foster professional relationships both at the management and staff levels of a client's business in order to deliver successfully its services. And as the firm prospers so does the individual professional who facilitated the accomplishment. As a result of this dynamic, tasks such as preparing adjusting entries and relevant financial statements take on a new importance and urgency.

Complementarities Between Universities and Technology Institutes: New Empirical Lessons and Perspectives

This paper investigates the different roles played by universities and technology institutes (TIs) as innovation partners of firms. Comparing the characteristics of Spanish firms collaborating with these agents allows us to better define complementarities among the target groups of these organizations. Our findings show that those firms collaborating with universities are bigger, have higher internal capabilities and are less dependent on their external relationships while firms collaborating with TIs are smaller, have weaker internal capabilities but are more open to their environment and thus more reliant on external sources. We point to the implications of these findings for regional development. Universities have a role as partners of more technologically advanced firms. TIs, on the other hand, partner those firms, which though also quite advanced, require more external help in their innovation processes. These results should help policy-makers in the definition of more complex regional strategies and the provision of tools aimed at different goals. Managers of universities, TIs and client firms should find these results of help in developing more positive collaborations with one another.

Experiencing Discrimination: Race and Retention in America's Largest Law Firms

Although the number of racial and ethnic minority lawyers in the legal profession has greatly increased, concern remains about their low percentage among partners in elite law firms. Using a nationally representative sample of young American lawyers, we compare a human capital–based theory, which emphasizes measures of merit, and an institutional discrimination–based theory, which focuses on differences in partner contact and mentoring. The results indicate that institutional discrimination theory is the better way of understanding racial and ethnic differences in lawyer retention. Future affirmative action programs need to focus not just on access but also the processes within large firms if minority presence is to be increased.

Benefits Expected by Accounting Firm Partners Selling their Firms to Publicly Listed Companies

In the 1990s and 2000s publicly quoted companies acquired thousands of accounting partnerships in Australia, the United Kingdom (UK) and the United States (US). Little is known of why the partners sold. This study examines the benefits expected by partners who sold their practices to two Australian publicly listed accounting companies. The findings suggest that there were many reasons for selling and a range of expected benefits, with some partners seeing the sale as a ‘silver bullet’ solution to all of the challenges of operating a small to medium‐sized accounting practice.