Zealand Companies Research Articles

The Adoption and Use of the Balanced Scorecard in New Zealand: A Survey of the Top 40 Companies

This paper presents the results of a survey of the use of the balanced scorecard in New Zealand companies. The top 40 companies on the New Zealand Stock Exchange (NZSE40) were chosen as the survey population. A 62.5% response rate was achieved. One hundred percent of respondents indicated that they have knowledge of the balanced scorecard. Sixty‐one percent and 65% of the respondents reported that they use a balanced scorecard at organisational and divisional level, respectively. The results indicate that financial performance measures continue to dominate non‐financial measures in terms of importance. In addition to further developing the literature on the balanced scorecard, the research provides opportunities to investigate balanced scorecard implementations in New Zealand in more depth.

The adoption of strategic marketing and its contribution to the competitive success of New Zealand companies

The adoption of strategic marketing and its contribution to the competitive success of New Zealand companies

Improving service firm performance

Although there are a growing number of studies which have investigated links between market orientation and performance in service firms, there has been limited research which compares the market orientations of goods and service firms. The results of this study, based on a large multi‐industry sample of New Zealand companies, suggest that to improve business performance service firms should develop information systems to track profitable customers and products, develop a corporate culture which emphasises the needs of stakeholders, and develop policies to encourage ethical conduct. To improve marketing performance firms should improve their levels of market orientation, develop a corporate culture which emphasises the marketing concept and innovation, adopt more proficient new product development processes and explore the possibilities of electronic commerce.

Equity Issues in Work/Life Balance Programmes

In the past 10 years there has been an increasing number of works published detailing the positive impact of family-friendly and work/life balance programmes on workplace culture and performance. While this study does not attempt to refute this body of literature, it does address all issue which has been largely ignored thus far. That is, that work/life programmes with an emphasis on family-friendly initiatives can leave some staff members feeling disadvantaged and create a subculture of dissatisfaction. This paper examines whether these feelings exist ill a small sample of New Zealand companies. Staff from two groups within Auckland City Council were surveyed and an email questionnaire was sent to a non-random sample of childless employees from 10 other firms. These results of these surveys did notified evidence to support the idea that many childless staff feel disadvantaged by family-friendly initiatives especially where the programmes were flexible and could be used by anyone who needed them.

Forecast Accuracy and Bias in IPO Prospectuses: Recent New Zealand Evidence

This study examines the accuracy and bias of profit forecasts disclosed in prospectuses by New Zealand companies for initial public offerings during the period 1987 to 1994. The results show that profit forecasts in this period are, on average, more accurate titan those disclosed prior to 1987, which were examined in prior studies. However, the results reject the null hypothesis that profit forecasts are accurate. In examining forecast bias, the evidence shows that the forecasts are, on average, somewhat pessimistic, but not sufficiently to reject the hypothesis that profit forecasts are unbiased. Tests of the determinants of error show that larger companies make more accurate forecasts, and forecasts made in the year 1987 are less accurate than in other years. Tests of the determinants of bias show that forecasts made in 1987 are also more optimistic, and that companies with longer trading histories and pessimistic forecasts make less biased forecasts. Forecast period and industry type are not significantly related to error or bias.

Benchmarking manufacturing performance in Australia and New Zealand

This paper reports on the levels of performance and improvement rates in a number of manufacturing performance indicators being achieved by typical manufacturers around the world and then discusses how well Australian and New Zealand companies are doing in the light of the competition. That competition being a sample of companies which is perhaps more typical than some of the exemplars who are so widely quoted in the popular management literature. The findings are based on the results from the 1996 Global Manufacturing Futures Survey. The results are presented in two ways ‐ by country or region and by industry. Australian and New Zealand manufacturers still have room for improvement in a number of areas, particularly quality, inventory and delivery performance. For the industry comparisons, what is striking is the range between best and worst.

Developing a better measure of market orientation

While academics have been attempting to establish empirical support for the marketing concept, managers have been facing a complementary challenge to implement this cornerstone of marketing theory. Both groups appear to have had limited success. Part of the problem may lie in a failure to establish a generalisable model of market orientation. There is also a lack of a parsimonious measure which managers can use to pinpoint organisational short‐comings. This study addresses both those problems by replicating and extending the market orientation research of both Jaworski and Kohli and Narver and Slater using a large multi‐industry sample of New Zealand companies. The result is a parsimonious and managerially useful 20‐item scale for measuring the market orientation of New Zealand companies. It is likely this scale could be generalisable to other country‐market contexts. The findings also indicate that the successful implementation of the marketing concept should produce improved customer and organisational benefits, particularly if performance is measured in terms of improved profitability, brand awareness, customer satisfaction and customer loyalty.

Boards of Directors and Board Committees in New Zealand: International Comparisons

Abstract [extract] Before 1995, little was known about boards of directors of New Zealand companies. This is not thecase in 1998. We have build up a picture of boards that encapsulates several elements: board size (the numberof directors on any given board), representation by outsiders (non-executive directors on boards) and boardleadership (whether or not the board chair is also an executive director). We also know something aboutboard committees in New Zealand. These matters are important because they indicate the ability of boards tofulfil their corporate governance functions. Boards of directors fulfil three interrelated governance functions:compliance (ensuring the fulfilment of legal requirements); directing (determining the overall direction oforganisations), and, monitoring (overseeing management). Studies of boards of directors suggest that muchof the work of boards is carried out in committees, especially in larger boards. In Part II of this article wediscuss debates concerning board size, CEO duality, and, non-executive representation on boards and boardcommittees. Part III then proceeds to compare this data with other jurisdictions. In Part IV some conclusionsare drawn.

New Zealand Court of Appeal: Judgment in Controller and Auditor–General V. Sir Ronald Dawson

On February 16, 1996 the New Zealand Court of Appeal rendered judgment on three applications for judicial review arising out of what had come to be known in New Zealand as the “Winebox Inquiry”. The Inquiry began as the result of certain documents being tabled (in a winebox) before the New Zealand House of Representatives. It was alleged that the documents implicated several New Zealand companies in the evasion of New Zealand income tax by the use of the Cook Islands as a tax haven, and that the New Zealand Inland Revenue Department and Serious Fraud Office had been incompetent at the least in failing to detect and prevent the abuse.

The Trasformation of New Zealand's Occupational Safety and Health (OSH) Legislation and Administration From 1981 to 1992: A Case of Reactionary Politics

From 1981 to 1992 New Zealand's occupational safety and health (OSH) legislation and administration has undergone a significant transformation. At the beginning of the period the situation can be described as a system of "Government Management", by 1990 a system of "Tripartite Management" had been partially introduced, in 1992 a new system of "Employer Hazard Management" had replaced existing arrangements. How did this transformation occur, why did it occur, and how does it compare with overseas examples? The transformation represents a case of reactionary politics. At the social level, change was a reaction to fears in the community about the dangers associated with the advent in New Zealand of large complex industrial plants, and the introduction of new chemicals. At the institutional level of organised actors, change was the result of reaction against perceived inadequacies in the existing legislative and administrative arrangements, and responses to positions adopted by competing actors. At the individual level change came about as organisations responded to the initiatives of certain individuals. By 1992, the colonial reliance upon overseas policy examples had been replaced with policy initiatives that reflected the level of knowledge amongst government officials, and the dominant forms of OSH management practiced by large New Zealand companies.

Market reaction to the introduction of a foreign investor tax credit regime in New Zealand

This study examines the stock market reaction to the announcement of a new foreign investor dividend tax credit system in New Zealand. The new tax system provides foreign investors, who own less than a 10% stake in a New Zealand company, with supplementary dividends. These additional dividend payments substantially offset any liability for New Zealand non-resident withholding tax. The new tax regime effectively increased the amount of after-tax cash dividends received by foreign shareholders of New Zealand companies. The empirical results indicate that significant and positive abnormal returns were concentrated predominantly on companies with fully imputed high dividend yields and high corporate tax rates. The evidence is consistent with the hypothesis that tax policy affects stock market behavior.

Feminizing the boardroom: a study of the effects of corporatization on the number and status of women directors in New Zealand companies

Changes to government policy, deregulation and corporatization in New Zealand have influenced the number and status of women on boards of directors. Using company records, archival material and interviews, examines gender equity on boards of directors in New Zealand and compares the progress of women on the boards of corporate companies in the private sector with those on crown company boards in the public sector. While increasing numbers of New Zealand women are entering the business arena, they continue to be underrepresented in the boardrooms and there exists a clear disparity between gender representation on the boards of crown and corporate companies with women being disadvantaged in the private sector. Includes interview material from women who have successfully achieved directorships and examines the approaches they adopted. Outlines some positive steps to assist women in the bid for corporate directorship, but suggests that the challenge of changing corporate and societal attitudes remains.

Some determinants of social and environmental disclosures in New Zealand companies

Reports the results of a study on the social and environmental disclosure practices of New Zealand companies. In addition to providing an up‐to‐date description of such practices, and placing them in an international context, examines some potential determinants of these practices. Replicates and extends a recent US study (Patten, 1991). Makes improvements on Patten’s study by measuring the amount of disclosure as a continuous variable using both page amount and the number of sentences. The results indicate both measures are highly correlated. Consistent with Patten (1991) and other studies, reports that both company size and industry are significantly associated with social and environmental disclosures, and that profitability (both current and lagged) is not. In addition to these variables, provides some tentative evidence that New Zealand companies with dual (overseas) stock exchange listings are greater disclosers of social and environmental information.

A Review of Accountant and Corporate Involvement in Environmental Accounting in New Zealand

There is considerable emphasis in the literature upon the development of environmental accounting and some focus upon theoretical perspectives on their regulation, but there is much less evidence of an actual involvement in environmental accounting practices by accountants. This paper considers the response of NZ organisations and accountants to environmental accounting. A questionnaire survey of the top 200 New Zealand companies, State Owned Enterprises and government departments confirmed the low level of environmental accounting in NZ business. Even where these activities were undertaken, accountants did not seem to be to the forefront.

Family Friendly Policies: The Experiences of Three New Zealand Companies

This paper reports the implementation of family friendly policies in three pro gressive New Zealand companies. 'Family friendly' policies and practices aim to make work and family responsibilities easier to manage. Policies that were being implemented in the companies went little further than statutory obli gations. Childcare was a major need of employees which was not provided by the companies. Information about available policies was not well communi cated through all levels in the organizations. Supervisor knowledge and understanding was key in effective implementation for employees. Major bar riers to implementation were senior management attitudes, issues of equity and organizational culture. Recommendations are made on how to improve access to policies throughout the companies.

AN EMPIRICAL INVESTIGATION OF THE EXTENT AND NATURE OF BRAND VALUATION ACTIVITY IN NEW ZEALAND

AbstractAn empirical study concerned with investigating the prevalence and nature of brand valuation activity in strongly‐branded New Zealand based companies is reported. Analysis of data provided by 60 companies responding to a questionnaire mailed to all New Zealand companies identified as owning recognisable brand names revealed that 15 (25%) had been involved in brand valuation activity. Support for a hypothesised relationship between the acquisitive orientation of companies and the propensity to value brands has been provided. The extent to which brand valuation is conducted as an information service to management suggests that the financial accounting orientation that has characterised much of the brand valuation debate may be somewhat inappropriate.

Voluntary Disclosure in the Annual Reports of New Zealand Companies

AbstractNew Zealand is currently experiencing a liberal and competitive economic environment which has led to a greater investment interest in corporate securities. Likewise, New Zealand firms are also developing strategies to attract investors, for example, through voluntary disclosure of information. Therefore, the level of information voluntarily disclosed by New Zealand companies is of interest to prospective investors. The purpose of this study is to examine empirically the relationship between five firm‐specific characteristics and the general level of accounting information voluntarily disclosed by companies listed on New Zealand Stock Exchange (NZSE). In this study the a priori expectations are based on agency theory. The five firm‐specific characteristics examined are: firm size, leverage, assets‐in‐place, type of auditor, and foreign listing status. The results obtained from cross‐sectional regression show that firm size, foreign listing status and leverage are significantly related to the extent of voluntary disclosure. In contrast assets‐in‐place and type of auditor are not significant explanatory variables. A study of this type would be of particular relevance to accounting policy makers because, inter alia, it helps them in (a) understanding corporate disclosure behaviour, (b) explaining why firms adopt certain disclosure strategies, and (c) developing a coherent and acceptable set of mandatory disclosure requirements.

Internationalization in Small, Commodity Based Economies: The New Zealand Example

Many studies have dealt with internationalization of business firms in the past years, few, however, have explored the pattern and process of internationalization in small, commodity based economies. In this study, the situation in New Zealand is considered, in part because it is a small, export and commodity based economy, unlike most countries previously studied. Five different clusters of New Zealand companies were found as related to the stages of internationalization. These include “Worried Beginners”, “Half‐hearted Domestics”, “Maturing Adapters”, “Conservative Exporters”, and “Experienced Succeeders”. Variables which appear to reflect stages of internationalization are also explored and presented in this study.

The rise and fall of the Judge and Renouf Corporations: extravagant reporting and publicity

In this paper, we examine the role of financial reporting in the rise and fall of Renouf Corporation and of Judge Corporation. These two New Zealand companies were nominated by The Wall Street Journal as the two worst performing shares on the Australasian sharemarket of 1987. To explain the sudden rise and fall of the Renouf and Judge Corporations, we discuss some significant structural features of the 1980s’ share market. We seek to explain the conditions that made such a dramatic rise and fall possible. In particular, we examine how key directors presented themselves as financial experts and created favourable impressions of profit and growth. Second, we focus on the use of creative accounting strategies and the manipulation of accounting information. Third, we analyse the contribution of financial institutions and regulatory bodies in permitting breaches of financial ratios and market rules. We conclude by noting the recurrence of sharemarket collapses and the concurrent examples of investor beguilement that often accompany such collapses. Spectacular rises and falls in company perfomance, we suspect, may be repeated because the elements of rhetoric/discourse which bring particular companies to sudden prominence create such a persuasive and an often irresistible version of ‘truth’.

New Zealand Research on Skills Formation and the 'Learning Organisation': Critical Analysis of the Case Study Methodology

In recent years there has been continuing debate about what skills are needed for New Zealand's competitive business environment. Many commentators talk of a skills crisis, while some academics argue that the skills crisis is a myth. Recent research on workplace reform in seven 'leading edge' New Zealand companies highlights six crucial limitations of the debate. These are a focus on: i) individual skills rather than organisational culture, work design and employment relationships; ii) formal training rather than work-based learning; iii) the skills of school leavers rather than those of managers, supervisors and workers; and iv) technical, rather than organisational and team, skills. The debate also pays inadequate attention to v) how people learn in teams; and vi) the complexity of the current business and policy environment. In November 1993, N7JSR &D commenced a FRST -funded, three-year project on 'Economic Restructuring and Skills Formation' to address these limitations. Based on jive case studies in a range of sectors, the project examines characteristics of enterprises seeking sustainable competitive advantage by operating as a 'learning organisation'; one where the organisational structure itself is an environment for continuing education. Case study analysis is also used to understand the relationship between the company's corporate strategy and skilling process; the core skills required by managers, supervisors and workers, and how these are formed. The purpose of this paper is to outline the project's case study design, explain why this methodology has been selected and examine debates about its validity and utility.