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The objective of this thesis is to investigate earnings management within a structured sample design focusing upon a M&A context in the US by addressing three main empirical questions in three studies. The first study examines whether firms near M&A manage their earnings and whether this practice has changed after Sarbanes-Oxley Act (SOX). The second study investigates whether debt-financing has implications on event-specific earnings management. Finally, the third empirical study challenges the effectiveness of earnings management in a M&A context by proposing that acquirers’ pre-merger earnings management can be uncovered and adjusted by the transacting targets. The key findings of the first study in this research suggest a strong tendency on the acquirer’s side to manage their earnings upwards before completing non-cash deals, while weak evidence is reported on the target’s side. More importantly, pre-merger earnings management does not seem to be significantly different between pre- and post-SOX eras, despite the assertions that the enactment of SOX was aimed at improving the reporting quality and the containment of earnings management practices. Given that SOX led to stronger due diligence and a more intense use of advisors for M&A deals, it could be argued that the setting of M&A activity creates a greater opportunity to manage earnings, given that managers’ resourcefulness for planning and altering accounting numbers is exclusively much greater in the case of M&A after SOX. However, this finding could be a consequence of employing cross-sectional accruals’ models, by which earnings management is detected relatively to the average level of normal accruals in peer firms at the time of estimation, whilst peer firms’ in general have adopted conservative reporting policies since the enactment of SOX. The second study reports a strong inverse relation between the pre-merger income-increasing earnings management levels and the industry-adjusted leverage of the non-cash acquiring firms, which is consistent with Jensen’s (1986) control hypothesis. This evidence highlights the importance of the industry-adjustment for leverage proxies in earnings management studies and proposes the use of structured sampling designs that controls for the firms’ motivation to manage earnings. The second study’s contribution leads to a better understanding of how a firm makes an accounting choice when it does favour one choice for its economic incentives but at the same time it is under creditors’ monitoring pressures. The third empirical study provides robust evidence of a positive relation between acquirers’ pre-merger earnings management and the non-cash acquisition premia. This evidence contributes to the existing literature by suggesting that even if the managerial team has succeeded in manipulating what is reported on paper, it may actually fail to influence the users’ perceptions - especially the sophisticated ones. The evidence challenges the naive investors’ hypothesis of Sloan (1996), which has been repetitively assumed by several studies in contexts where equity shares are issued.

The increasing global concern for the environment, the demand for increased stakeholder reporting, and the importance of sound corporate governance structures have triggered the need for more research into the value creation of environmental disclosure for stakeholders and its integration within corporate governance structures. The main objective of the current study is to empirically examine the relationship between corporate governance and each of the quantity and the quality of corporate environmental disclosures in the UK, while controlling for some corporate characteristics as well as an in-depth exploration of quality identification and assessment issues. In doing so, the study distinguishes between the different categories or areas of activity to which environmental disclosure relates as well as between the different types of environmental information content. Based on stakeholders-agency theory, the study argues that the quantity and quality of corporate environmental disclosure directed to various stakeholders are enhanced when managers' opportunism is monitored by corporate governance mechanisms, thereby, reducing the information gap or asymmetry. Content analysis of a sample of UK companies' annual reports is undertaken to examine the quantity and quality of corporate environmental disclosure practices and their association with corporate governance mechanisms, over a period of four years. Hence, the annual reports of FTSE-All share companies are examined for years 2004-2007 inclusive. A checklist of environmental disclosure items and categories is developed and environmental disclosure indices are computed. The study suggests an extensive four-dimensional framework for assessing environmental disclosure quality. The metric developed attempts to capture the qualitative characteristics of information in a manner consistent with well-supported frameworks elaborated by professional accounting bodies and standard setting organizations. Although corporate environmental disclosure quantity in UK companies' annual reports is relatively low, corporate environmental disclosure quality is comparatively high. Results also revealed a significant association between environmental disclosure quantity and, to a lesser extent, environmental disclosure quality and most corporate governance mechanisms. In addition, it appears that other corporate governance mechanisms are significant at some categorical levels of environmental disclosure. The major strength of the current study is its practical implications and its usefulness in providing data for further extensive environmental disclosure quality development. The comprehensive framework developed in this study for identifying and assessing environmental disclosure quality, is an initial step in the direction of examining environmental disclosure from the stakeholder perspective, negating the traditional belief of quantity representation of quality and shifting disclosure quality perspective from volumetric measurement to semantic assessment.

This study consists of three main projects covering (i) the relationship between disclosure quality and earnings management and (ii) the relationship between corporate governance and disclosure quality. Disclosure quality is measures using the IR Magazine Award, the forward looking information in the annual report, and the analyst forecast accuracy. Match-paired samples comprised of the winners and non-winners of the IR Magazine Award during the years from 2005-2008 were employed in this study. Simultaneity bias in all projects was remedied by the use of a simultaneous system of equation, which was estimated using two-stage least square regression (2SLS). This study provides several interesting findings. With regard to the first project, disclosure quality and earnings management, it is shown that all disclosure quality proxies are consistently reported significant negative relationship with earnings management in the OLS regression. However, audit committee characteristics and board characteristics reveal insignificant relationship with earnings management, except audit committee meeting which reported positive association. Concerning the potential complementary and substitutive effect of internal governance and disclosure quality in deterring earnings management, result of the interaction terms revealed that there is a complementary relationship between audit committee quality and disclosure quality (measured using Investor Relation Magazine Award) in deterring earnings management. When disclosure quality and earnings management are treated as endogenous, this study reveals that there is a significant bi-directional relationship between disclosure quality and earnings management, highlighting that causality can run in both directions. This suggests that future research should control for disclosure quality factors when examining the impact of corporate governance and earnings management and that the potential simultaneity between disclosure quality and earnings management should be considered in future models. With respect to the second project, corporate governance and disclosure quality, this study reveals that audit committee effectiveness, board meeting and board independent are significantly positively related to disclosure quality (measured using IR Magazine Award and the number of forward looking items in the annual report). With regard to the potential complementary or substitutive effect between board and audit committee characteristics in improving firm disclosure quality, this study reveal that there is a substitutive effect between board quality and audit quality in enhancing disclosure quality (measured using analyst forecast accuracy). If disclosure quality and board independence are treated as endogenous, there is a significant positive bi-directional relationship between them when disclosure quality is measured using the number of forward looking items. However, there is a negative bi-directional relationship and an insignificant bi-directional relationship shown when disclosure quality is measured using analyst forecast accuracy and the IR Magazine Award respectively.

This thesis investigates the role and effect of different aspects of corporate governance, ownership structure and remuneration consultants on determining the level and the structure of CEO compensation. The main objective of this research is to better understand the impact of these aspects on compensation of Chief Executive Officers (CEOs) in UK firms. Two models are constructed and a set of hypotheses is developed. These models are tested using a sample consisting of the top 350 companies listed on the London Stock Exchange. Firms in the financial, investment and insurance industries are excluded due to the different nature of their accounting, governance, and compensation practices. The study covers the period of five financial years (2004-2008). Twenty-two hypotheses are derived from both models. These hypotheses are tested using multivariate techniques in order to determine to what extent corporate governance, ownership and remuneration consultants’ attributes play a role in monitoring managers and setting appropriate CEO compensation. Using a sample of 237 non-financial FTSE 350 firms during 2004-2008 (i.e. 851 firm-year observations), and after controlling for the standard economic and human capital determinants of compensation, this study finds that corporate governance, ownership and remuneration consultants’ characteristics play an important role in determining CEO compensation. However, the findings do not suggest that these attributes always play a positive role in constraining opportunistic managerial behaviour. Surprisingly, some of the governance attributes have been found to facilitate the executives’ needs rather than to attempt to monitor them. The findings of the thesis suggest that a number of theoretical perspectives can be used to explain the relationship between corporate governance, remuneration consultants and CEO compensation in the UK firms. For example, while the findings of board independence and CEO duality provide strong support to the stewardship theory, as firms enjoy better compensation governance when their boards contain more executive directors and are chaired by CEOs, the results of chairman independence and ownership, and remuneration committee independence, are found to be in line with both agency theory and the alignment of interests’ hypothesis of agency theory since we find these variables play a strong role in mitigating the agency problems and agency costs through setting appropriate CEO compensation. Conversely, the managerial power perspective receives great support from the findings of a number of governance, ownership, and consultants’ variables. That is, the analysis concludes that larger boards, well-compensated board and remuneration committee non-executive directors, CEOs with greater share ownership, CEOs sitting on the remuneration committee, less independent remuneration consultants, and the switch of remuneration consultants all play significant roles in increasing the level of CEO compensation and setting inappropriate designs for remuneration that are more favourable to the CEO (i.e. more fixed and less equity-based compensation). Overall, the findings of this thesis imply that shareholders, regulators, and practitioners should be concerned about the composition and the characteristics of a firm’s board of directors, remuneration committee, and external directors who comprise the firm’s internal control structure as this research finds that the quality of corporate and compensation governance varies depending on board and remuneration committee size and characteristics. Furthermore, it is advised that the relevant parties should pay attention to the remuneration consultants’ independence status and characteristics since this study finds that independent, specialized, and larger remuneration consultants play a significant role in enhancing the quality of compensation arrangements’. Therefore, this study offers new insights over the effect that corporate governance and remuneration consultants can exert over the design of CEO compensation contracts.

Debt management is of high importance for financial professionals and is a complex managerial decision, since the uncertainty of business cashflows may undermine the availability of financing, stress business operations and diminish future growth prospects. Whilst the management of corporate debt has sparked much interest and been widely discussed in the academic literature, none of the existing theories address this problem comprehensively. This thesis considers debt management decisions in non- financial corporations; it tests empirically various existing theories, establishes several stylised facts regarding funding decisions and contributes to the current research by exploring the influence of industry specific factors, financial intermediates and market conditions on debt management. Using U.S. data at the company level, the first study explores the variation of debt maturity across industry. Also, using both European bond and loan aggregate data, the second and third studies are the first ones, which highlight the impact of financial intermediates on both debt issuance and debt maturity timing strategies. The present work therefore offers both a cross-sectional overview of debt management and an analysis of its dynamics over time. The results indicate that (i) in addition to firm's characteristics, the cross-sectional variation of debt maturity can be explained by industry specific factors, which are not captured in the existing literature, (ii) that the agency cost hypothesis appears to be irrelevant for large cap firms, therefore giving more weight to the maturity-matching principle and the signaling hypothesis in explaining debt maturity structure, (iii) that managers tend to time their credit borrowing spread when they issue bonds and switch to the loan market during high interest rate periods, therefore contradicting earlier claims that interest rate timing explains time-series variations of debt issuance and (iv) that while corporates debt maturity mirror government debt maturity when directly placed debt is considered, financial intermediates act as a barrier to corporate debt maturity timing strategy.

Credit ratings have become a widely accepted measure of firms’ creditworthiness in financial markets. Despite the significant growth of rating agencies, with a continuous reliance on credit ratings by regulators, investors and firms, prior academic literature generally tends to underestimate the relevance of credit ratings in firms’ financial decision-making. This thesis, therefore, provides a comprehensive analysis, which aims to examine the impact of external credit ratings on the financial structure decision-making of UK firms. The thesis has three empirical chapters. The first empirical chapter examines whether there are any systematic differences in firms’ levels of leverage across the rating levels which would suggest that the cost and benefits of credit ratings are material for such firms. The study finds that credit ratings are an important determinant of the capital structures of firms and that there is a strong non-linear inverted U-shaped relationship between credit ratings and capital structures. It is noted that rated firms have higher leverage than non-rated firms, but within the rated firms, leverage varies across the rating levels. High and low rated firms are found to have low leverage in their capital structures, and mid rated firms generally have higher leverage. Low gearing ratios may suggest that such firms have higher incentive to maintain their current ratings or to achieve upgrades, given the cost and benefits offered by credit ratings, than firms with high gearing ratios. The second empirical chapter investigates whether costs and benefits of credit ratings are material enough for potential and actual credit ratings changes to matter in the financial decision making of the firms. It does not appear from the empirical evidence that marginal changes in credit ratings possibly impose any serious costs on the rated UK firms. Whether credit ratings changes are potential or actual, they do not lead firms to follow any specific pattern with regards to their capital structure, which would suggest that firms are concerned about the marginal rating changes. Within the rating scale, however, some differences are noted among high and low rated firms. High (low) rated firms tend to issue (reduce) debt when they have a higher likelihood of upgrades. Similarly, high rated firms issue debt when they are actually upgraded or downgraded, while low rated firms are found only to reduce debt when they are upgraded indicating their efforts towards maintaining or achieving higher credit ratings. The third empirical chapter examines the influence of credit ratings on the debt maturity structure of UK firms by testing Diamond’s (1991) liquidity hypothesis. Consistent with the predictions, the results indicate that firms’ debt maturity structures are significantly influenced by their levels of refinancing risk, and that this refinancing risk induces a strong non-linear relationship between credit ratings and debt maturity structures. It appears that high rated firms possibly have low levels of refinancing risk, which allows them to select debt with short maturity. Low rated and non-rated firms are also found to have shorter debt maturities, despite being exposed to high levels of refinancing risk. It appears that these firms may have constrained access to long-term debt markets and, therefore, they have to rely mostly on short-term debt. Mid rated firms, however, have more long-term debt, which appears to be due to their better access to debt markets as well as their exposure to some degree of refinancing risk.

Large-scale cases involving multi-national corporations such as the BAE Systems and Siemens bribery scandals illustrate the complex organisation of such serious trans-national and multi-jurisdictional crimes. Sovereign states that do not have an active enforcement stance against transnational bribery are facing intense criticism from ‘moral entrepreneurs’ such as international and intergovernmental anti-corruption bodies. However, the regulation of such crimes faces a key contradiction: as business transactions become more global, enforcement and regulation remain at the local and national level. In short, national authorities are pressured to respond to trans-national corporate bribery using inter-national frameworks for enforcement. This thesis imports regulatory concepts to understand the variety of enforcement (e.g. criminal prosecution, civil sanctioning) and non-enforcement (e.g. self-regulation, accommodation) practices that help explain policy responses to transnational bribery. Comparing these responses in Germany and the UK is a useful empirical focus for examining the strengths and limitations of national enforcement approaches given both jurisdictions inhabit similar institutional contexts for corporate bribery e.g. relatively strong western European economies, fellow members of the EU/G8, subject to international conventions. The research incorporated a qualitative, comparative research strategy that involved semi-structured interviews, participant observation and bilingual document analysis. The research found that despite significant differences (e.g. centralised or decentralised systems, existence of corporate criminal liability, legal cultures), both UK and German anti-corruption authorities (i) face similar difficulties in enforcement as they are limited by their national jurisdictional boundaries and face several procedural, evidential, legal, financial and structural obstacles but (ii) are converging towards similar prosecution policies (e.g. negotiation of civil settlements for corporations). However, in both cases, evidence suggests enforcement and emerging self-regulatory practices are limited in relation to the anti-corruption actors’ own estimation of the problem. Therefore, (iii) the default position of the response is an accommodation of corporate bribery, even where the will to enforce is high.

Directors’ remuneration has been subjected to continuous study by researchers in different fields such as accounting, management, human resource and psychology. Accounting scholars primarily based their research on agency theory. Recent papers focused on the affect of corporate governance on the determination of directors’ remuneration. This study aims to investigate the effect of three main variables on directors’ remuneration – corporate governance variables, human capital attributes and firm performance. The study controls the effect of firm size, type of industry, leverage, diversification and location. 417 (50%) Malaysian public listed companies were selected using stratified random sampling for three years period from 2004 to 2006. Only non-financial companies are included in the sample because financial companies are subjected to different set of regulations in Malaysia. Using multiple regression method, it is found that seven corporate governance variables are significantly related to directors’ remuneration. The study shows that board size, CEO-chairman duality role, proportion of independent directors and proportion of interlocking directors in the board are significantly related to directors’ remuneration. Proportion of non-executive directors in the board, percentage of indirect directors’ shareholding and percentage of block holders’ shareholdings are found to be negatively related to directors’ remuneration. Of the three human capital attributes studied, only executive directors’ average age and tenure are found to be significantly related to the level of directors’ remuneration. No evidence was found to conclude the role of qualification towards level of directors’ remuneration. The model used was tested for its robustness using different set of alternative measures for some of its key variables. Corrections were also made to address other common problems associated with multiple regression such as outliers, non-normality of residuals, heteroscedasticity and multicollinearity. Finally, the study extends the analysis by running fixed effect model in order to control for firm specific effects. There are few discrepancies between the pooled regression model and fixed effect model result but this may be caused by little variation over time among governance variables. Finally, the findings further supports the agency theory by showing that, among Malaysian companies, performance still plays significant role in determining rewards for its directors

This thesis establishes a framework for understanding the role of a supplier within the context of a business ecosystem. Suppliers typically define their business in terms of capturing value by meeting the demands of direct customers. However, the framework recognises the importance of understanding how a supplier captures indirect value by meeting the demands of indirect customers. These indirect customers increasingly use a supplier’s products and services over time in combination with those of other suppliers. This type of indirect demand is difficult for the supplier to anticipate because it is asymmetric to their own definition of demand. Customers pay the costs of aligning products and services to their particular needs by expending time and effort, for example, to link disparate social technologies or to coordinate healthcare services to address their particular condition. The accelerating tempo of variation in individual needs increases the costs of aligning products and services for customers. A supplier’s ability to reduce its indirect customers’ costs of alignment represents an opportunity to capture indirect value. The hypothesis is that modelling the supplier's relationship to indirect demands improves the supplier’s ability to identify opportunities for capturing indirect value. The framework supports the construction and analysis of such models. It enables the description of the distinct forms of competitive advantage that satisfy a given variety of indirect demands, and of the agility of business platforms supporting that variety of indirect demands. Models constructed using this framework are ‘triply-articulated’ in that they articulate the relationships among three sub-models: (i) the technical behaviours generating products and services, (ii) the social entities managing their supply, and (iii) the organisation of value defined by indirect customers’ demands. The framework enables the derivation from such a model of a layered analysis of the risks to which the capture of indirect value exposes the supplier, and provides the basis for an economic valuation of the agility of the supporting platform architectures. The interdisciplinary research underlying the thesis is based on the use of tools and methods developed by the author in support of his consulting practice within large and complex organisations. The hypothesis is tested by an implementation of the modeling approach applied to suppliers within their ecosystems in three cases: (a) UK Unmanned Airborne Systems, (b) NATO Airborne Warning and Control Systems, both within their respective theatres of operation, and (c) Orthotics Services within the UK's National Health Service. These cases use this implementation of the modeling approach to analyse the value of platforms, their architectural design choices, and the risks suppliers face in their use. The thesis has implications for the forms of leadership involved in managing such platform-based strategies, and for the economic impact such strategies can have on their larger ecosystem. It informs the design of suppliers’ platforms as system-of-system infrastructures supporting collaborations within larger ecosystems. And the ‘triple-articulation’ of the modelling approach makes new demands on the mathematics of systems modeling.

A firm is defined as financially constrained when its access to external source of financing is limited, resulting in difficulties with maintenance of efficient investment levels due to possible cash shortages. Such firms' investment levels are generally believed to be sensitive to their cash flows. However, two characteristics of the information asymmetry ('agency problem' and 'adverse selection problem') between firms' insiders and outsiders, can introduce some discrepancies to this financial constraint problems. Moreover, the above informational asymmetry characteristics can also depend on financial market behaviour. This thesis analyses the aforementioned financial constraint feedback mechanism. Specifically, in Chapter 2 we perform a comparative analysis of the firms in five leading G20 countries, and how the dynamics of their investment behaviour respond to financial market type. Two markets are considered - Anglo-Saxon market (present in the US and the UK), and bank-based market (present in Japan, Germany, and Korea). In addition, the investigation looks at the firm-specific attribute, banking affiliation, which is present in Japan, Germany and Korea. Our comparative analysis reveals that, on average, firms in the bank-based market are less likely to suffer from financial constraint problems. Moreover, the banking affiliation characteristic is found to play a significant role in firm financial constraint problem mitigation. In Chapter 3 we separately investigate the relationships between the US firms' financial constraints and two informational asymmetry problems, namely, agency problems involving the manager's over-investment incentives and the adverse selection problem originating from stock return volatility. Our empirical analysis identifies that the manager's over-investment incentive negatively impacts the firms' financial constraint status, moreover, the firms exhibiting higher stock return volatilities are more likely to be financially constrained.

Agency theory predicts that corporate governance mechanisms and external audit play an important role in enhancing financial reporting, while institutional theory views these mechanisms as practices or regulations which result from coercion by legislators who impose certain practices in order to improve organizational effectiveness, or as a result of imitation. In terms of earnings management practices, both theories provide an appropriate theoretical framework. Taking agency theory and institutional theory as points of departure, the primary purpose of this study is to: (1) investigate the motivations and techniques of earnings management and; (2) to what extent corporate governance and external audit can affect earnings management practices in Saudi Arabia. To achieve this aim, the questionnaire survey is mainly used to explore the motivations and techniques of earnings management in Saudi Arabia by obtaining the different perceptions of respondents. In terms of the role of corporate governance and external audit in reducing earnings management practices, two models are constructed and a set of hypotheses are formulated. These models are examined, by a logistic regression, using a sample consisting of all companies listed on the Saudi Stock Exchange with the exception of financial and insurance companies which have different practices. In addition, semi-structured interviews are employed in order to provide a better understanding of the research questions, confirming and elaborating on the questionnaire survey and models’ findings and supporting the development of the hypotheses. They were subsequently undertaken, after the questionnaire survey, with 15 individuals including board members, audit committee members, external auditors and academic staff. Although there were significant differences among respondents, the findings reveal that the four main incentives for Saudi managers to manage earnings are ‘to increase the amount of remuneration’, ‘to report a reasonable profit and avoid loss’, ‘to obtain a bank loan’ and ‘to increase share prices’. The findings also indicate that only seven statements relating to earnings management that received support from respondents were techniques of earnings management in Saudi companies. Agency and institutional theory may provide a sensible explanation for previous earnings management practices in Saudi Arabia. Moreover, the expectation of beneficial corporate governance practices and external audit constraining opportunistic earnings management activities was, to a large extent, found to be inaccurate in Saudi Arabia. That is, no internal corporate governance variables, apart from outside director, board size and board meetings, examined in this research are shown to have any significant effect on earnings management. With the exception of auditor opinion, none of the external audit factors and ownership structure affects earnings management. Moreover, the interview survey shows many issues and interesting findings related to previous investigation such as nepotism, illegal competition, and lack of independence. Generally, the findings are not consistent with agency theory that ownership concentration, audit committee, and external audit might mitigate agency problems leading to reduced agency cost by aligning the interests of controlling owners with those of the company. However, previous finding can be interpreted by Institutional theory which views these mechanisms as practices or regulations resulting from coercion by legislators who impose certain practices in order to improve organizational effectiveness, or as a result of imitation. It should be noted that the findings established in this study could be useful to external auditors and regulators and legislators in their attempts to constrain the incidence of earnings management and enhance the quality of monitoring mechanisms.

This is an exploratory mixed methods case study which investigates a number of critical issues regarding the teaching and learning of an English Language and Literature Department (henceforth the ELLD) in a Chinese university, including curriculum development, content-based instruction, and teachers’ cultural, professional and disciplinary identities etc. It originally aimed to examine three university teachers’ codeswitching behaviours. Classroom observation, interview and stimulated recall were employed to collect data for the Phase I of the study. However, analysis of codeswitching categories identified a predominance of extended expositions of Western and Chinese literature, culture and philosophy etc., which prompted the follow-up interviews (Phase II) further exploring the relevant issues concerning the disciplinary construction of ELLD in China. Findings from follow-up interviews suggested that teachers’ classroom practice was influenced by their cultural, professional and disciplinary identities. It also became clear that in the ELLD context, approaching literature, culture and philosophy from both the Chinese and Western perspectives reflected a cross-cultural view of the content-based teaching for the teachers. Moreover it highlighted the current lack of courses on liberal arts and excessive emphasis on English language skills in the national curriculum for the English majors. This study reveals a fundamental problem of the development of the ELLD in Chinese universities. It is suggested that awareness should be raised of target language use in both skills-based and content-based courses in the EFL context in China. In addition, it recommends further research to explore ways in which the national curriculum might be reformed to reflect the humanities characteristics of ELLD and universities should be given more space and freedom to address their specific requirements within the national curriculum.

There is a widespread presumption in the strategy literature that firms enjoying a competitive advantage in commodity-producing industries do so as a result of following cost leadership strategies. This thesis as monograph re-evaluates that presumption by a detailed exploration of the bases for competitive advantage in the plasterboard industry, one of the most important materials used by the construction industry. It explores price and non-price based methods of competition, plant scale economies, and the influence of order of entry on firm performance. The thesis draws upon detailed industry-, firm- and plant level data collected by the author. These data include time series price, demand and capacity figures for the US and UK, plant factor usage data for 50 plants covering four years, and data relating to 56 attempted entries to the European plasterboard industry. Analytical methods include time series regression methods with ADF and Engle Granger tests. Panel data methods include OLS regression with fixed and variable models. Dummy variable methods are also employed with these approaches. The nature of the relationship between price and supply and demand is used to indicate the character of competition. Price would be expected to reflect the relationship between supply and demand. The study finds that this does occur in the USA where non-price based methods of competition are rarely applied. The UK Industry makes extensive use of bundling methods which result in no discernible relationship between price and supply and demand. The influence of the respective competitive environments is also considered. The study also finds that prices are upwards sticky' In the USA, which has implications for the theories of Means (1935) and Sweezy (1939). A novel theoretical analysis is provided to explain this finding. The study identifies Edgeworth (Maskin and Tirolle, 1988) price cycle behaviour in the UK plasterboard industry. Novel conclusions are drawn regarding the sources and environment which instigate this behaviour. The findings are important as previous empirical work has been confined to the gasoline industry. Panel data methods are used with a uniquely detailed database to identify and quantify manufacturing plant scale economies in labour and energy by functional use. This level of detail has not previously been available to researchers. Evidence of management diseconomies of scale is identified, and also learning effects for new plants. Initial investment costs are examined and found to yield scale economies in both equipment and civil engineering categories of expenditure. These are discussed in the context of scale economy sources. Finally, historical methods (Golder, 2000) are used to study the 56 attempted entries to the 21 industries which comprise the European plasterboard industry. A model is devised to predict the prospect of entry success in relation to factors including order of entry, country regime, resource endowment and demand. A link between order of entry and long-term market share advantage is identified. Evidence is identified to support the proposition that second movers select a cost base to compete with the first mover. The relevance of resource endowment is discussed and the concept of `dominant process' emerges as important factors in the likelihood of entry success.

Computer and telecommunications technologies are commonly thought to provide solutions to the quantitative and qualitative demands on modern financial reporting. Extensible Business Reporting Language (‘XBRL’) is an emergent technology that is purported to ‘democratise’ financial reporting. This investigation of whether XBRL democratises financial reporting is undertaken from a constructivist perspective. An interpretive research framework is regarded as appropriate to the current maturity XBRL. XBRL-knowledgeable individuals are asked whether they agree with the assertion that 'XBRL democratises financial reporting'. In addition, their perceptions of each of 'XBRL', 'financial reporting' and 'democratisation' are elicited in order to assess whether they have a common interpretation of the assertion. Sixty-seven percent of survey respondents profess to agree with the assertion, 13% explicitly disagree and 20% are non-committal. However, interpretation and analysis of each of the concepts reveal statistically significant relationships between responses to the assertion and interpretations of its constituent concepts. It is concluded that respondents are not agreeing and disagreeing about the same phenomena. This thesis illustrates that the rhetoric of technological determinism does not yet describe the reality of the relationship between financial reporting and XBRL. However, as XBRL matures, the approach adopted in this thesis may be re-applied to monitor perceptions of XBRL over time.

This thesis employed a case study approach to explore the rules and routines that have evolved within the Investor Relations (IR) functions of a large Canadian public company (ABC) from the inception of their IR website in 1997 to 2010. Utilizing weblog analysis, institutional theory (specifically, the Burns and Scapens (2000) institutional framework), and a detailed case study analysis of the interviews undertaken, the findings of this study illustrate that rules and routines of operation within an IR web team are likely to be dynamic and will evolve at a quick pace if the business is actively seeking to employ best practice in its IR website strategy. The results also show how both internal and various external influences are likely to play key roles in altering the rules and routines of IR websites operation. Within the case study presented, five distinct stages of institutionalization were recognized. The analysis framework used provided an effective tool to analyze the internal aspects of these stages. However, it was also enlarged to incorporate specific external influences to show how they play a parallel part in affecting activity in this domain specifically. The findings further show that there is minimal normative isomorphism occurring in this domain. It is proposed that the lack of formalized education in the IR website management and operation area may be playing a key role in constraining the further development of this. Further, the thesis concludes by highlighting the critical need for senior management ‘buy-in’, identification and development of a suitable lead for this activity within the company, and the right context in which they can be allowed freedom to innovate and explore best practices applicable to the online IR function, where-ever they may be found. These features must then be balanced with the overall strategic placement of the IR website as a best practice driver, or follower, to ensure a successful, strategically aligned operation in this domain. While these issues individually have been found to be important in other rapidly innovating business domains, this thesis illustrates and explores their need for the first time, in the IR field in the context of a recognized leader in its field.

This thesis investigates governance in large Scottish charities. In particular, the focus is on internal aspects of governance, predominantly the functioning of the board. The influence of business on charities is also investigated through considering the impact of individuals with business expertise on the boards of charities. Charity governance in the Scottish context has been under-research, this thesis attempts to fill this research gap. A multi-method approach was employed, encompassing both quantitative and qualitative research. The study utilised a survey in the form of a selfcompletion questionnaire, and three case studies to examine governance in Scottish charities. Social construction provides the framework of the analysis. This thesis provides an insight into the functioning of the boards of Scottish charities, in-line with previous research in other countries, governance issues are apparent. However, in relation to the impact of business expertise in charities, there is evidence that business members of charitable boards make contributions to the governance of these organisations, and charities can gain considerable value from having outside specialists on the board.

The research study set out to establish whether the balanced scorecard suitably adapted and supported by a relevant costing system could improve the focus on outputs and thereby improve governance processes of public sector bodies. What was established from this review was that strategic planning has a role to play in achieving the agreed strategy but without engaging all of the stakeholders in the formulation process there was little chance of success. Moreover, it was indicated that frameworks would encourage greater coherence of planning effort and staff alignment and could be of significant benefit to the formulation processes. The solution developed in this case study involved novel managerial constructions which significantly adapted the Balanced Scorecard specifically for the RBGE. Lessons were taken from the literature review, paying particular attention to the identified weaknesses. The RBGE scorecard’s perspectives were not only adapted but a fifth perspective (the principal external stakeholder: Scottish Government) was included. A new accounting model (Strategic Objective Costing and Budgeting) was developed which identified staff effort allocated to completing activities that directly supported the strategic objectives. The key attribute required of management is strong leadership if these constructions are to be implemented successfully. The constructive approach to management accounting research was strengthened by including a literature review to inform analysis of the identified problem in the framework and by engaging external knowledgeable audiences to test the ideas being developed for the constructs. The constructions passed the “weak market test” and therefore were validated as suitable models.

This dissertation contributes to the international literature by examining the relation between chief executive officer (CEO) compensation and firm performance in China, especially under different types of ultimate shareholders, who have differing motivations and objectives regarding the structure of CEO compensation. I use unbalanced panel data from more than 1,300 Chinese A-share listed companies over 2005-2009 and find that performance, especially one of market-based measurement, has a significant impact on CEO compensation. CEO compensation levels have risen in recent years due to economic gains rather than poor corporate governance. Firms that operate under other central government ministries (SOECG) than those of the ultimate shareholder do not use performance as a guideline for CEO pay, although they have the highest CEO compensation level amongst all five groups. The size of the board directors and independent directors are contributes positively to CEO compensation. While the degree of ownership concentration and size of supervision board are negative related to CEO compensation. Moreover, CEO gets higher pay if independent direct especially financial one working province is same as companies headquarter. Most of these results are consistent with my hypothesis. Shareholders, managers, government, and others who must make improvements in China’s corporate governance standards should find these results useful. In addition, the findings can offer future research directions.

This dissertation examines the accessing of finance by entrepreneurs in the Beijing area of China using a bespoke survey of 452 entrepreneurs which was gathered by the researcher. Human capital theory along with theories of finance such as the pecking order theory, and agency theory provide the theoretical contextualisation of the research. Within human capital theory, innovation is the key variable which is investigated. Innovations in: (i) products, (ii) processes, (iii) work practices or workforce organisation, (iv) supply and supplier relations, (v) markets and marketing, (vi) administration and office systems, and (vii) product distribution are investigated which allows a comprehensive study which is more faithful to Schumpeter’s earlier writings. Chapter 1 provides an overview of the research. Chapters 2 will provide the theories of entrepreneurship. The companion chapter 3 will provide a review of the theories of finance and empirical studies of access to finance by small businesses. Chapter 4 completes the triumvirate and overviews credit rationing and constraints. Chapter 5 details the methodology used in the rest of the dissertation and the data set which was gathered by the researcher. The empirical contribution of the dissertation is presented in chapters 6 to 8. In each of the three empirical chapters the key focus of attention is upon seeing whether innovators fair worse, and are disadvantaged in comparison to their non-innovating counterparts. This analysis includes bivariate analysis and then multivariate regression techniques which allow innovation to be investigated in models which simultaneously controls for the characteristics of the businesses and the entrepreneurs. Chapter 6 investigates the use of sources of finance at the start-up stage of the businesses. Chapter 7 investigates the applications for external finance, whether or not the finance was successfully accessed, and also the levels of awareness of sources of finance. Chapter 8 investigates the amount of external finance sought, the amount of external finance received and the ratio of sought to received external finance. Chapter 9 concludes the dissertation on the access to finance in Beijing. In this chapter a summary of the dissertation findings will be presented. Additionally, the chapter will provide a series of discussions on the implications of the empirical results for theory, practitioners, government, policy and the entrepreneurial and small business community in Beijing, China, and beyond.

To research the management of risk and cost in the cladding industry, this work has evaluated current practice and deficiencies, concentrating on the lack of integration or standardisation resulting in inaccurate cost estimates, unacceptable risks and loss of profit in cladding manufacture. The research presents an approach for integrating process- and technology-orientated improvements into a knowledge-based model to improve a cladding manufacturing SME’s performance. The research also presents a management method for the selection, integration, control and implementation of this approach. Controlling data transfer between systems produces a knowledge-based model, allowing cladding industry designers and estimators to take more accurate decisions, with the objective of reducing risk and improving company profitability. This model, with the addition of external supply chain elements, is a management framework, which can be termed an agile manufacturing system. The development of this framework has raised the following data certainty questions: • What is the measured uncertainty of that data? • How can the industry control and structure high data volumes transferred between systems to produce more accurate cost models? The answers to these questions were found by applying a structured methodology for the selection, integration and control of technology in the cladding industry, but involving the human factor. In this approach, the principle of entropy was adopted to measure data uncertainty. The structured methodology was made possible by a new categorisation into Innovative, Standard and Semi-Standard cladding projects. The research applied this structured methodology, combining qualitative and quantitative methods for validating assumptions, to a cladding industry SME case-study. The case-study investigated the validity of real cost and project data and calculated data uncertainty for specific projects, categorised as described, using a risk factor percentage predicted on entropy principles, based on historical data fed back from the SME’s ERP system. This risk factor approach was similar to that previously used in the insurance and banking industries. The risk percentage formulae used were based on assumptions extracted from qualitative and quantitative methods applied to the SME, its partner companies and industry specialists. Assumptions about the gross margins for UK metal cladding projects formed part of the risk percentage formulae. The results of this case-study found that gross margins varied from 5% in standard projects to 40% in the Innovative projects. An entropy scale was proposed as a basis for comparing risk calculation results, with the highest entropy equalling 100%, signifying the highest risk possible. It was found that risk rises in the case-study were from 23% for Standard to 93% for Innovative projects. This principle of a risk factor percentage was tested in the UK cladding manufacturer SME case-study and its value to the SME was demonstrated.

This thesis examines two empirical studies. Firstly, it examines the relationship between corporate governance characteristics (relating to the size, composition of independent members, financial expertise and meeting frequency of boards of directors and audit committee) and audit quality. Secondly, the study investigates the effectiveness of corporate governance characteristics and higher quality auditors in constraining earnings management. There are three proxies of audit quality employed: audit fees, non-audit fees and industry specialist auditors. Based on data obtained from the FTSE 350 between 2005 and 2008, the first empirical findings suggest that independent non-executive directors on board demand an additional and extensive audit effort from the auditor in order to certify their monitoring function, resulting in an increase in the audit fees and the perceived audit quality. The results also indicate a positive relationship between independent board and non-audit fees, suggesting that independent board support the view that the joint provision of audit and non-audit services does not necessarily compromise auditor independence, but rather that it broadens the auditors’ knowledge and improves audit judgement. The findings from the second empirical study suggest that higher quality auditors (which either charge higher audit fees or are industry specialist auditors) are likely to reduce earnings manipulation. However, no evidence suggests that NAS fees affect earnings management. In addition, the current study finds inconsistent results linking the corporate governance characteristics and opportunistic earnings. Overall, both findings are consistent with agency theory, which states that independent board and higher quality auditors are associated with effective monitoring, which in turn helps to improve the quality of financial reporting. The findings are of potential interest to policy makers, professionals and boards of directors, especially on issues relating to audit quality and the mandating of corporate governance practices.

CORPORATE OWNERSHIP AND CONTROL STRUCTURES AND FIRM PERFORMANCE: EVIDENCE FROM CONTROL POTENTIAL, AGENCY, AND CONTROL DOMINANCE-CONTESTABILITY PERSPECTIVES ON UK LISTED FIRMS BY: ABDELLA KORMIE DINGA MATERIAL ABSTRACT The research study comprises of two preceding Chapters, three main empirical Parts, and CONCLUSION. The first Chapter, Introduction, presents the overall research objectives and questions of the study based on the existing agency perspectives regarding the issues of control and governance conflicts in modern corporations. The second Chapter, Review of Theoretical Frameworks, presents a brief account of similarities and differences between the existing theoretical frameworks relevant to the control of corporations. The review identified that the agency theory provides powerful testable models and tools that can be used in the investigation of the agency conflicts and the possible solutions that mitigate the governance problems. The three empirical Chapters follow mainly the deductive research approach of making statistical inferences using a sample of major UK listed firms in the FTSE All Share Index for the period 2003-2007. Chapter Three deals with the analysis of the state and trends or evolution of corporate ownership and control structure and some board structures of the UK listed firms. The Chapter has been instrumental in preparing the raw materials of ownership and control structure variables that are used in the succeeding two chapters. Chapter Four deals with the analysis of the relationship between ownership structure and performance using aggregate stake of all identifiable blockholders’ categories and all external blockholders in the agency perspective. Chapter Five presents analysis of the relationship among ownership, control structures and firm performance using the structural equations framework in the control dominance-contestability perspective. Finally, the Thesis closes with a Conclusion. In summary, the Theses of this empirical research study suggest the followings. Firstly, there is the prevalence of multiple significant blockholders in the modern listed firms even when share ownership is dispersed. Secondly, in the presence of multiple significant blockholders in the firm, there is a likelihood that the second-type agency conflicts between large shareholders and minority shareholders exists, and that might be the dominant force that determines the possible control configuration even in listed firms with dispersed ownership. Thirdly and finally, the traditional one-equation modelling and their estimations in the methodology of looking into the relationship of separate share ownership categories or accounting for few of the categories might not precisely identify (1) the blockholders’ (control forces’) incentives and ability of exerting control over the modern corporations, (2) the problem of endogeneity that might arise in the relationships, and (3) the way significant multiple blockholders interact and share control of the firms. Hence, the use of structural equations modelling and control dominance-contestability perspectives, in which the roles of blockholders structure control forces, internal and external governance mechanisms, and the problems of endogeneity are accounted for might be appropriate to reveal the control configuration of modern listed firms with multiple large blockholders.

There is a considerable amount of research literature available for the optimisation of supply chain management of the chemical process industry. The context of supply chain considered in this thesis is the supply chain inside the chemical complex which is the conversion of raw materials into intermediate chemicals and finished chemical products through different chemical processes. Much of the research in the area of planning and scheduling for the process sector has been focused on optimising an individual chemical process within a larger network of a chemicals complex. The objective of this thesis is to develop a multi-objective, multi-period stochastic capacity planning model as a quantitative tool in determining an optimum investment strategy while considering sustainability for an integrated multi-process chemicals complex under future demand uncertainty using the development of inorganic chemicals complex at Bamnet Narong, Thailand as the main case study. Within this thesis, a number of discrete models were developed in phases towards the completion of the final multi-objective optimisation model. The models were formulated as mixed-integer linear programming (MILP) models. The first phase was the development of a multi-period capacity planning optimisation model with a deterministic demand. The model was able to provide an optimal capacity planning strategy for the chemicals complex at Bamnet Narong, Thailand. The numerical results show that based on the model assumptions, all the proposed chemical process plants to be developed in the chemicals complex are financially viable when the planning horizon is more than 8 years. The second phase was to build a multi-period stochastic capacity planning optimisation model under demand uncertainty. A three-stage stochastic programming approach was incorporated into the deterministic model developed in the first phase to capture the uncertainty in demand of different chemical products throughout the planning horizon. The expected net present value (eNPV) was used as the performance measure. The results show that the model is highly demand driven. The third phase was to provide an alternative demand forecasting method for capacity planning problem under demand uncertainty. In the real-world, the annual increases in demand will not be constant. A statistical analysis method named “Bootstrapping” was used as a demand generator for the optimisation model. The method uses historical data to create values for the future demands. Numerical results show that the bootstrap demand forecasting method provides a more optimistic solution. The fourth phase was to incorporate financial risk analysis as constraints to the previously developed multi-period three-stage stochastic capacity planning optimisation model. The risks associated with the different demand forecasting methods were analysed. The financial risk measures considered in this phase were the expected downside risk (EDR) and the mean absolute deviation (MAD). Furthermore, as the eNPV has been used as the usual financial performance measure, a decisionmaking method, named “Minimax Regret” was applied as part of the objective function to provide an alternative performance measure to the developed models. Minimax Regret is one kind of decision-making theory, which involves minimisation of the difference between the perfect information case and the robust case. The results show that the capacity planning strategies for both cases are identical Finally, the last phase was the development of a multi-objective, multi-period three stage stochastic capacity planning model aiming towards sustainability. Multiobjective optimisation allows the investment criteria to be traded off against an environmental impact measure. The model values the environmental factor as one of the objectives for the optimisation instead of this only being a regulatory constraint. The expected carbon dioxide emissions was used as the environmental impact indicator. Both direct and indirect emissions of each chemical process in the chemicals complex were considered. From the results, the decision-makers will be able to decide the most appropriate strategy for the capacity planning of the chemicals complex.

A significant number of studies have pointed to inadequate disclosure of the hedging process by companies of both details of instruments used and the clarity of information. Following the adoption of IFRSs, UK companies started reporting under IAS 32 and 39 from the accounting year beginning from 1st January 2005. This required more relevant information to be disclosed when compared with the requirements of FRS 13 under which UK companies reported prior to 2005. The adoption was consistent with reporting practices of other countries within the EU. This study investigates the extent to which non-financial sector firms in the UK have complied with the requirements of IAS 32 and 39 and what the value of this disclosure has been to investors. The thesis reports on a sample of 182 firms using content analysis to evaluate reporting level in comparison with the requirements of the standards. The thesis also uses cross sectional analysis of the market model to assess the extent of disclosure on excess returns. The findings show that companies reported more on derivative use under the international standards than under UK GAAP, suggesting that harmonization of reporting practices are on course in the UK. Secondly, companies that reported financial instruments under these standards have a lower risk-adjusted discount rate. This translates to lower future returns and higher current prices, meaning current increased market values. Further division of companies into those who disclosed at low, medium and high levels, shows that companies that disclosed at medium and high levels have a lower risk-adjusted discount rates. This suggests reduced risk and higher current market values for these firms. These findings supports our earlier findings just as they support the theoretical insight that increased disclosure means increased transparency that should positively affect firm value and vice versa.

Numerous management scholars argue that management theory is anthropocentric and considers humans as being separate from the environment. Further anthropocentrism does not enable theory and organisations to contribute to sustainable development. To counter this it is argued theory and organisations should embrace an environmental paradigm that does not separate humans and the environment. This exploratory research attempts to identify whether any organisations operate with an environmental paradigm. The research questions focus on paradigms and some of the tensions surrounding the human-environment debate, such as; sufficiency versus profit maximisation and quoted status, money as a means or an end and notions of boundaries between the organisation and the environment. The questions are explored with individuals from 23 environmentally focused, primarily for profit, organisations. The results indicate that the organisations operate with an environmental paradigm, do not perceive of boundaries between the organisation and the environment, do not pursue profit maximisation, can demonstrate sufficiency, view money as a means rather than an end and do not have a favourable view of quoted status. Furthermore, the interviewees do not separate their world into two realms, one social and one natural. Narratives that arise include the organisations operating to a mode of mission and money and that an aphorism of “altruistically selfish and selfishly altruistic” (Maturana & Varela, 1998:197) can be applied. In short, the results indicate some challenges to conventional management theory, in particular strategy and competitive advantage, and that the organisations interviewed could help to, some extent, enable sustainable development. To close, the hope of this study it that its narratives and the conceptual tool it has prompted, provide succour to students and managers who want to develop a ‘future normal’ of theories and organisations that better enable sustainability.

The aim of this thesis is to provide insights into what the concept of audit quality means for a number of parties who have responsibilities for delivering, commissioning or evaluating audit quality in practice - auditors, AC members and quality inspectors concerning. It explores the influence of internal and external factors in the auditing setting on the construction of meaning of audit quality and how meaning is symbolised in practice. This research is based on an interpretive approach employing research methods of document analysis, semi-structured interviews and a survey questionnaire. Drawing on a symbolic interactionist framework, the research illustrates the process of giving meaning to audit quality in practice. The study identifies various constructs that give meaning to audit quality in practice - auditors' characteristics, firm's characteristics, compliance obligations, the content and control of audit procedures, financial statement quality and client service orientation. It also identifies acts such as asking challenging questions, professional appearance, the quality of interaction between auditor and AC, consultation and training, and objects such as documents and records as fundamental in symbolising audit quality in practice. The study also highlights the existence of possible conflicts between some of these constructs of audit quality and the potential for problems in audit quality in practice.The research reports that the audit practitioners predominantly framed their conceptions of the meaning of audit quality around four important constructs: client service, compliance obligations, the technical audit process or content, and individual auditors' characteristics. Client service is found to have a particular importance for the practitioners' meaning of audit quality. Their construction of the meaning for audit quality is influenced by interactions with other audit market constituents as well as by economic and societal forces in the auditing environment. Auditors perceptions of what quality means in practice are underpinned by factors such as the need to legitimise the conduct of the auditor, to restore trust and confidence in the public at large about the quality of audit services, to maintain profitability and the survival of the audit firm given the competitive and commercial pressures in the audit market, and to legitimise firm methodology and the resulting audit process to outside constituents.Amongst the AC members interviewed, the meaning of audit quality appears to be associated with the characteristics of individual auditors, in particular, auditors' interpersonal and behavioural skills, attributes of the audit firm (size and industry specialisation) and financial statement quality. The findings show that AC members perceptions of audit quality significantly depend on the 'relational' rather than the technical attributes of individual auditors. The quality of the financial statements also dominates the AC members' perceptions of audit quality rather than a technical interpretation of the quality of the content of the audit process. The AC members' conception of meaning for audit quality is influenced by interaction and communication with the external auditors. For the quality inspectors, the meaning of audit quality is mainly constructed in relation to the conduct or content of an audit. Therefore, the level of challenge to the management of the audit, and the sufficiency of evidence and documentation are important for constructing their perceptions of audit quality. They also ascribe considerable importance to the internal compliance-quality control applied within the audit firm the notion of audit quality. Overall, the study describes the multifaceted meaning of audit quality and how this is influenced and shaped by interactions - based on role expectations, self-image, economic and social factors - and illustrates the way in which various acts and objects are used to represent practical meaning for the abstract concept of audit quality in practice. These findings have relevance for auditors, other parties to audit engagements, policy makers and regulators concerned with the contribution of auditing to the financial reporting system and for academic researchers seeking to develop a deeper understanding of how that contribution is achieved in practice.

As the title suggests, this thesis focuses on the issues arising from the establishment of audit committees in listed companies in China, which hitherto have been adopted by companies on a voluntary basis alongside the pre-existing structure of supervisory boards, rather than as a mandatory requirement. Regarding this unique practice in China, this thesis attempts to address three research objectives: 1. To understand the effectiveness of supervisory boards (SBs) and audit committees (ACs) in China. 2. To understand how the operations of SBs and ACs improve the effectiveness of supervisory governance functions in China. 3. To understand the co-ordination between SBs and ACs in organisations. The first objective is investigated by applying quantitative methods of ordinary least squares (OLS) regression and analysis of panel data. It is discovered that the companies with audit committees have more effective supervisory functions when companied to those without audit committees. The second objective was pursued by applying qualitative methods in the form of two case studies constructed using interviews and surveys conducted both via telephone and in face-to-face interviews. It is found that in both the case studies audit committees were established with the expectation of enhancing the effectiveness of the companies' supervisory functions. Furthermore, the face-to-face interview survey of five listed companies reveals that companies with audit committees in China still face issues of overlapping and missing supervisory functions between supervisory boards and audit committees. Thus the third research objective, regarding the co-ordination between the supervisory board and the audit committee in the organisation to find solutions to this very problem, is particularly relevant for corporate governance in China. This objective is investigated by interviewing two governors and conducting telephone surveys. The results highlight that there is the general expectation that these structures should be co-ordinated as one unit. There is also a demand to establish an independent control system to strengthen oversight functions, to reduce oversight costs, and to ensure the independence of the supervisors and audit committee members in order that they can execute oversight tasks, and to empower them against the executive directors and senior managers by promoting their status in the organisation.

This thesis focuses on the valuation of real options when there is flexibility given by the choice between two risky outputs. We develop models to value these rainbow options and to determine optimal operating and investment policies. These models are studied in the context of commodity applications because output flexibility is particularly relevant in volatile commodity markets. We provide insights into the behaviour and sensitivities of option values and operating policies and discuss implications for decision-making.In the early stages of real options theory, research centred on basic options with closed-form solutions, modelling single uncertainty in most cases. The challenge is now to incorporate more complexities in the models in order to further bridge the gap between theoretical models and reality, thereby promoting the widespread application of real options theory in corporate finance. The new option models developed in this thesis are organised in three self-contained research papers to address specific research problems. The first research paper studies an asset with flexibility to continuously choose the best of two risky commodity outputs by switching between them. We develop quasi-analytical and numerical lattice solutions for this real option model, taking into account operating and switching costs. An empirical application to a flexible fertilizer plant shows that the value of flexibility between the two outputs, ammonia and urea, exceeds the required additional investment cost (given the parameter values) despite the high correlation between the commodities. Implications are derived for investors and policy makers. The real asset value is mainly driven by non-stationary commodity prices in combination with constant operating costs. In the second research paper, we study an asset with flexibility to continuously choose the best of two co-integrated commodities. The uncertainty in two commodity prices is reduced to only one source of uncertainty by modelling the spread, which is mean-reverting in the case of co-integration. Our quasi-analytical solution distinguishes between different risk and discount factors which are shown to be particularly relevant in the context of mean-reversion. In an empirical application, a polyethylene plant is valued and it is found that the value of flexibility is reduced by strong mean-reversion in the spread between the commodities. Hence, operating flexibility is higher when the commodities are less co-integrated. In the third research paper, we develop real option models to value European sequential rainbow options, first on the best of two correlated stochastic assets and then on the spread between two stochastic co-integrated assets. We present finite difference and Monte Carlo simulation results for both, and additionally a closed-form solution for the latter. Interestingly, the sequential option value is negatively correlated with the volatility of one of the two assets in the special case when the volatility of that asset is low and the option is in-the-money. Also, the sequential option on the mean-reverting spread does not necessarily increase in value with a longer time to maturity.

The research question is to examine and predict project-related costs during the preplanning and post-cost-calculating phase. The aim of this thesis is to identify costs earlier, which means before or at the beginning of the product planning phase, and faster, although the documents are not yet complete and the product is not defined in detail. The objective of the thesis is oriented on short cost calculation systems where a few cost-relevant key figures can be used to predict manufacturing costs at the conceptual stage of the product when the costs can be still significantly affected. The research is conducted on the company ThyssenKrupp Drauz Nothelfer, Germany, a major supplier of production equipment for the automotive industry. The epistemology of the research is based on the process of data collection and resulted in an overall conceptual framework of the research exploration. The methodology employed a deductive top-down logical system that includes descending from the more general information of the theory to the hypothesis. Seventy-three projects have been analysed and evaluated regarding the thesis approach. The method involves the analysis of projects and existing documentation. The qualitative method was used in order to verify the research results. Several cost-relevant key figures were found from data already available at the conceptual design stage. The independent variables were also checked for correlation, analysed and data limited. From these parameters, two variables were emphasised, and with the help of the parametric method with regression analysis, an equation was formed. The results show that a significant linear relationship exists between these parameters and the manufacturing costs of the product. The stated regression equation can be used throughout the early planning phase of a project to set a budget for the ongoing planning process, or to optimise the costs of the product by running the model parallel to the planning process.

This thesis consists of four essays or chapters that investigate acquisitions made by UK firms. The main focus of the research is the acquirers’ abnormal returns that are associated with the announcement of domestic and cross-border acquisitions. The research provides empirical evidence on some of the significant issues that have been raised in the literature, particularly focusing on measuring operating performance for domestic and cross-border acquisitions over the long-term. The first essay investigates acquirers’ announcement abnormal returns for acquisitions that have been conducted by UK firms, either domestically or internationally. The principal finding is that acquisitions of domestic firms appear to generate larger returns, whereas acquisitions classified as cross-border do not appear to add value to the acquiring firm. The second essay examines the characteristics of the deal, and how these impact the acquirers’ returns for both domestic and cross-border acquisitions. The characteristics considered are the method of payment, the industrial relationship between the acquirer and the target, the relative size of the acquirer to the target, the type of the target firm and the Book-to-Market ratio of the acquiring firm. The third essay investigates the directors’ overconfidence and its impact on the acquirers’ returns. Directors’ overconfidence is examined depending on the self-attribution bias by distinguishing between the abnormal returns to frequent and infrequent acquirers. The fourth essay examines insider trading via studying the relationship between the private investment decisions of the directors and the firm’s investment in respect of acquisitions it makes over the announcement date of the acquisition. Two different methods are proposed to classify directors into optimistic and neutral based on these personal portfolio trades. The fifth empirical chapter focuses on domestic and cross-border acquisitions with public targets, and studies their synergy gains and operating performance for a 3-year period after the announcement year. The aim is to try to understand what these firms gain from such acquisitions, given the apparent absence of a gain in value at the announcement of the investment. It is essential to add that the importance of this thesis comes from shedding a light on the role of acquisition activity in UK market within last 10 years domestically and internationally. Furthermore, providing a significant advice to firms not to allocate their capital in acquisitions with public targets because there is not benefit from investing in these types of investment.

The effectiveness of management accounting techniques within Libyan Peoples Committees of Municipalities [LPCMs] was investigated focusing on the current application of management accounting techniques and the factors that affect current practice of these techniques. The study investigated the role of budget preparation, budgetary control and performance evaluation within Libya and aimed to gather a current contextual overview of practices since the final lifting on United Nation [UN] sanctions and the move to the open market economic structure. As part the study the effectiveness of current practice was evaluated to help identify opportunities for further development. The study used a combined methodology approach which enabled triangulation between the various agencies involved in management accounting within LPCMs. Statistical analysis of the questionnaire survey was undertaken along with content analysis of the semi-structured interview responses to build an overview of current practice and the rationale behind the application of management accounting techniques. LPCMs are still utilising traditional methods of management accounting due to the legislative requirements and this is main motivation for the application of management accounting techniques. An overview of the role of Central Government departments and LPCMs' intradepartmental activities in budget preparation and budgetary control has been described along with the formalised parliamentary approval process. Due to the current compliance focus it has been found that effectiveness and efficiency are not considerations in performance evaluation of LPCMs. The lack of recording of non-financial information is currently hindering organisations in the development of performance evaluation indicators and minimum standards. The study found that following factors have affected the application of accounting generally and the application of management accounting techniques in LPCMs particularly: top management support, management accounting training programmes, motivations systems, adequate financial resources for accounting development, using computer systems for management accounting purposes, accounting research in Libya, Professional accounting bodies in Libya, accounting education in Libya, co-operation between universities and LPCMs, economic changes, policy of government. A number of key recommendations have been developed but all hinge on the primary recommendation that Libya parliamentarians update Financial Law (1967) to meet the new global economic demands that Libya faces.

The main objective of this study is to explain how the management accounting information system of a privatised Brazilian electricity distribution company was shaped by both inter and intra organisational factors. As a consequence, this thesis seeks to explore the key factors that influenced the dynamics of management accounting change in the privatised company. In so doing, there is a great interest in understanding the complex interaction of both intra-organisational factors (e.g. organisational culture and power relations within the company) and interorganisational factors (e.g. the electricity sector regulation system) which influenced the process of change in management accounting practices. This study adopts an interpretive case study as research method to analyse the changes in management accounting that occurred in the case company over a period of 8 years, that is, from 2000 (the privatisation year) to 2007. Face-to-face interviews semi-structured in design constitute the primary method of data collection in this study. For its theoretical framework the study draws upon institutional theory and its extensions, as well as structuration theory to explain the process of management accounting change in the case study organisation. More specifically, this study uses three theoretical frameworks that explain changes in organisations, namely: Dillard et al (2004); Seo and Creed (2002) and Bums and Scapens (2000). By combining these three frameworks, this thesis provides a new theoretical framework to understand the process of management accounting change. The analysis of this case indicates that there were profound changes in the case company's management accounting systems after the process of privatisation. In particular changes were evident in the budgetary system; the performance measurement system; and in the way that managers use the management accounting information. It was also identified that the Balanced Scorecard system played a ceremonial role in the organisation. This study also explores the regulator's role in the process of management accounting change in the case company as a source of coercive isomorphism.

Based on empirical research in two of China's biggest and most important manufacturing sectors: Auto and Electronics, this study develops an analytical framework to understand, how firms in newly industrialising economies (NIEs) develop their technological capabilities, and how this is affected by the situation of finance and the practice of corporate governance (CG). Particularly, by further adaption of the theory to the Chinese context, it attempts to answer the questions: 1) 'What is the situation of technological capabilities in the firms in the Chinese Auto and Electronics Industries?'2) 'How has the development process of technological capabilities been?' 3) 'What is the situation of corporate governance and finance in Chinese Auto and Electronics firms?' and 4) 'How can the capabilities developed be explained from the finance/corporate governance aspect?' Two frameworks are developed on the basis of previous research on technological capabilities and corporate governance. Three Propositions are derived from these frameworks. Five case studies are conducted in both sectors, and seven hypotheses are then generated from the findings of case studies. They are tested through a questionnaire survey of 195 firms in the Chinese electronics industry. This thesis makes several theoretical contributions and has several policy implications. Primarily, this study contributes to the literature on the development of technological capability in NIEs by: 1) creating a better understanding of firm-level technological capability in the Chinese auto and (especially) electronics sectors; 2) providing a thorough account and explanations of how Chinese firms with typically flawed corporate governance (CG) fail to develop dynamic capabilities; how those with better CG succeed, and why there are not more of them. In addition this study has adapted the theoretical framework (the effect of corporate governance on technological development) to the Chinese situation and enriched it. It will enlighten future applications of such theory to the wider context of NIEs in general. For policy makers, the crucial implication is that any improvement in the governance factors studied in this study will significantly boost the development of technological capability.

This thesis is concerned with the development of incentives for pharmaceutical R&D, specifically for neglected diseases. The following approaches are adopted. The short-term effects of the recent cost-containment reforms on seven financial indicators related to firms‘ R&D in Denmark, Germany, France, Japan, and the US are estimated. The dataset represents a panel data of financial statements of 1306 pharmaceutical firms for the period 1997-2007. National pharmaceutical expenditures, population, availability of credit, patent applications, and regulatory quality have been controlled for. The average treatment effects on the treated are econometrically estimated with before-after comparisons, two difference-in-differences (DiD) and three matching DiD methods. Impacts of liquidity constraints on R&D and investment are estimated with dynamic panel methods. Using frontier modelling, technical production inefficiencies are estimated and tested for independence from the stringency of national regulation. The major findings of this dissertation are: R&D indicators tend to be persistent despite the regulatory changes; tighter cost-containment regulations appear not to be associated with technical efficiency or R&D intensity of firms; cash flow has a positive effect on pharmaceutical R&D of small and young firms, but not on physical investment. Improved access to clean water appears to be the most important factor in the reduction of the neglected diseases‘ burden; evaluation of R&D schemes for neglected diseases based on 17 criteria indicates insufficient performance of the existing proposals and a number of recommendations to design better incentives are substantiated. Based on this analysis, I have designed a new hybrid public-private partnership model for financing R&D in the form of a prize screening mechanism, which relies on the innovative effort of small firms by reducing entry barriers and moral hazard problems.

The purpose of this study is to examine how corporate performance influences Chief Executive Officer (CEO) pay in UK public listed companies. Specifically it is to identify evidence of relative performance evaluation in CEO pay, following the recommendation in the Combined Code (2003) to link long-term incentive compensation to relative firm performance. The major and a novel contribution of this study is the focus on the payments received by CEOs from performance-based long-term incentive schemes. The pay-for-performance relationship is investigated in a longitudinal setting using random and fixed-effect panel data estimation methods. An unbalanced panel of CEOs is drawn from 204 of the largest, nonfinancial UK companies, between 2003 and 2007. From a principal-agent theory perspective it is hypothesised that firm performance is positively associated with chief executive pay and from a relative performance evaluation theory perspective it is hypothesised that, whilst controlling for actual firm performance, peer group performance is negatively associated with chief executive pay. The CEO compensation data are hand collected exclusively for this study and provides a level of detail not previously found in the literature. The findings demonstrate that it is crucial to distinguish between the different elements of pay and the different performance conditions that attach to those elements in order to establish a comprehensive understanding of the pay-for-performance relationship. New and convincing evidence shows that actual bonus pay is determined relative to annual FTSE-350 market performance and actual long-term pay is determined relative to three-year FTSE-350 sector performance. These findings provide robust evidence that is consistent with the principal-agent framework of executive pay and corporate performance. This study may alleviate the concerns held by some stakeholder groups that pay is not clearly linked to corporate performance. These findings will be of particula r practical importance to investors who expect the interests of executives to be aligned with those of the company shareholders, via an incentive contract that rewards executives for enhanced corporate performance and consequently shareholder wealth maximisation. The findings also confirm that changes introduced to improve corporate governance practice in the field of executive pay are working to the benefit of shareholders.

During 2007-2010 significant dislocation occurred in the financial services sector with governments having to come to the aid of a large number of financial institutions. Throughout this crisis much political, media and practitioner interest was given to reward structures within the industry and, in particular, the proportion, or mix, of different rewards provided in overall compensation. This thesis examines influences on the determination of reward mix in the UK financial services sector. Three theoretical perspectives are examined – agency, institutional and resource dependency – as potential explanations. Semi-structured interviews were conducted with reward executives from 30 financial services firms, alongside perspectives garnered from ten reward consultants. These interviews identify the strength of institutional pressures on firms to conform to an agreed reward mix norm, largely driven by historical reward patterns and reinforced by strong employee expectations that they will receive this norm. However, firms are still seen to exercise strategic choice, influenced by the extent to which they have the desire and capability to resist institutional pressures. The research also identifies which firms are likely to differentiate their reward mix from that established in the sector. The findings provide a contribution to an under-researched area in a key sector of the economy. They present both an important account of the pressures facing reward mix determination in the financial services sector at this time, and a theoretically informed approach to understanding those pressures through the presentation of a unified theory of reward mix determination.

This overview gives a summary of the research started 15 years ago in relation to the developments within the audit and governance environment. The developments focus on their impact on public sector audit activity and how these developments have been embedded in higher education (HE) programmes. The research and subsequent outputs have contributed to the introduction of innovative teaching methods that reflect contemporary developments in the audit profession. In introducing these developments the teaching approach for audit orientated modules has moved away from a didactic approach to experiential learning approach. This submission includes material from eight refereed published journal articles, one refereed paper presented at a conference and a chapter from a textbook. In addition, other journal publications and conference papers, which were presented at both national and international conferences, are mentioned as contributions to knowledge. At the time of submission of this work, one paper was under review for publication. While related areas of research were ongoing in respect of audit training within the profession and audit committees within Housing Associations. The period of research activity spans the years 1995 – to 2011. These outputs cover three key areas in terms of contribution to learning. The first area looks at the design and development of a case study as a teaching medium focusing on experiential (hands on) learning as the basis for a module on computer auditing. This was based on research into the practical audit approaches within the public sector. The public sector was the focus of the initial research as it had a requirement for the presence of an internal audit function. This focus on the public sector focus continued into subsequent research. The application of audit techniques to provide a better appreciation of auditing was introduced into module development as a consequence of the research findings. This specifically applied information technology (IT) as a tool for audit which was embedded in a case study, and more recently for forensic accounting purposes. The use of MS Office Excel as a teaching medium was used initially to replicate audit software packages and referred to as ‘Excel as an audit tool’. This was later replaced by commercial audit software using datasets. The second theme considers the impact of policies by government relating to aspects of accountability, value for money and performance measurement, again with an emphasis on the public sector audit function in verifying data used as indicators. The third area examines the working relationship between internal audit and the audit committee, with a focus on the influence of corporate governance codes on internal control requirements and risk management. All three areas identify the changing face of audit as a consequence of external pressures such as IT developments, accountability requirements, pressures on limited resources and government codes of best practice recommendations and guidelines. The integration of these developments in to HE focused initially on undergraduate modules within the BA (Hons) Accounting and Finance programme. The developments were later integrated into post graduate modules as well as acting as an information conduit for local government in Wales. The link between all three themes is that of the changes facing the audit profession and how these have been incorporated into the teaching of audit at HE level. These changes reflect the audit role in terms of the adoption of a proactive approach to responding, not only to the application of technology, but also to both public and government expectations in terms of indirect and direct requirements. This nexus between the themes is further enhanced by the use of audited information conveyed electronically for the purpose of performance verification of targets and the relationship between the efficient use of resources and good governance approaches. The recognition of the research output in the early stages was reinforced in 1998 by the award of Research Fellow from Grant Thornton and involvement with the Welsh Chief Auditors Group (WCAG) which resulted in the research focusing on Welsh local government. Further research has incorporated forensic auditing techniques and the internal audit function in the corporate arena. These were further utilised within the innovative and ground breaking development of the BA (Hons) Forensic Accounting programme. While the corporate governance work has taken the international route of comparing corporate governance codes of best practice and formed an important element within the post graduate programmes of MSc Accounting, MSc Forensic Accounting and MSc Management and Development of International Financial Systems. Funded consultancy work has produced professional body reports on the training of professional auditors in contrast to the academic development of teaching material with journal papers contributing to the knowledge of both the HE community and practitioners. Finally the research and development of lecture material has been utilised for a joint publication of a textbook on auditing entitled Auditing Fundamentals (Davies & Aston 2010). This document discusses the three themes by critiquing how the changing face of auditing influences the design and delivery of auditing modules within accounting programmes, in the context of higher education. The collection and analysis of data, and especially practitioner views, form part of the background to the research method adopted. The output and findings provide the basis of the contribution to knowledge which informs HE practice and the profession. The research output has contributed to enhancing both undergraduate and post graduate teaching material as well as reports to parties outside the higher education environment. The contribution to knowledge has been threefold, where the HE environment of undergraduate and postgraduate students have been exposed to current developments in auditing, along with an opportunity to learn via experiential learning techniques. Members of the profession have been enlightened on the issues affecting their working practices via conferences and training seminars. Finally management have capitalised on the research output and utilised this to make informed decisions. Further research opportunities have arisen as a direct result of research undertaken whilst other opportunities for disseminating knowledge and information have occurred via representations on various bodies and working parties including media interviews.

This thesis investigates the phenomenon of corporate governance in the Egyptian banking sector (EBS); it aims to understand the nature of corporate governance in this context and identify the factors shaping it. Especially that these aspects had been ignored by the literature. Through grounded theory methodology, an empirical study of the nature of corporate governance in the EBS is undertaken, it identifies the factors affecting corporate governance in the EBS, the interests corporate governance is serving and as such outline the model of corporate governance prevailing in the EBS. Grounded theory methodology is illustrated by the thesis in the following ways. First, through an application of the comparative method in the open coding stage based on semi-structured interviews conducted with bank directors and executives, government officials, auditors and central bank officials, open coding developed categories and identified their properties and dimensions. Indeed, the interviews were informed by the survey of banks’ corporate governance (BCG) practices. Second, through axial coding open categories were subsumed into broader categories, and the relationships among these categories were established by means of the paradigm model. This has led to building the Bank Action Choice Matrix and the Paradigm Model of Evolving BCG in the EBS. Axial coding provided the basis of the substantive theory. Third, selective coding based on a second round of semi-structured interviews had identified the core category, verified its relationships with other sub-categories and eventually presented the substantive theory of BCG. The substantive theory was further explored in terms of the New Institutional Sociological Theory (NIST), leading to more formal substantive theory that consider corporate governance a social process affected by non-economic factors such as culture, politics, legal framework and human factors. It identified that BCG is in the process of institutionalization in the EBS. This process is geared toward the regulative pillar of institutions and the use of coercive power by the regulator, with banks adopting corporate governance seeking legitimacy. It also concluded that BCG is a political process, with powerful actors pushing to serve their interests; as such BCG is about power. Finally, it explained the heterogeneity of banks’ strategic responses to BCG institution, as some banks comply while others disguise their non-compliance, affected by internal organizational characteristics that hinder compliance and make some banks more susceptible to external obstacles. This thesis extended the use of grounded theory to explore the phenomenon of corporate governance in an unexplored context, identified the prevailing BCG model in the EBS and explained the substantive theory of BCG in terms of NIST as such offered a non-traditional perspective for corporate governance theorizing. It contributes to better understanding of NIST by accounting for institutionalization as a process and explaining the heterogeneity of organizational strategic responses. Finally, this thesis is the first attempt to combine corporate governance, grounded theory and NIST offering policy-makers useful views for BCG reform.

Most of the literature on management control systems (MCSs) shows that state-owned enterprises (SOEs) lack autonomy, do not have clearly defined objectives, and therefore have inadequate accounting systems, accountability, and control systems. Whilst some researchers claim that privatisation per se should improve this aspect of enterprise performance and accountability, others argue that change cannot be brought about without accompanying structural, cultural and external environment changes. As a result of its economic reform policy, governmental development plans, the need to join the WTO, and the need to overcome the poor performance and ineffectiveness of certain industries, the Saudi Arabian Government privatised some of its SOEs. This study is an exploratory investigation into the effect of such policy on two selected organisations and their MCSs in Saudi Arabia. Its main objective is to describe the nature of control systems before privatisation and determine the impact it has subsequently had on the companies in question. In addition, it investigates whether privatisation was the only reason for change or whether there were other influencing factors. The case study was conducted within two Saudi companies that have been privatised recently, viz., the Saudi Telecom Company and the Saudi Electricity Company. For triangulation purposes, the case study employed three modes of data collection: semi-structured interviews, examination of classified official corporate documents, and semi-structured interviews with an external related party (the Saudi Investment Authority). The main finding of the study is that privatisation alone cannot change MCSs: without changes in organisational structure, culture and the external environment, the privatisation process cannot effectively achieve its objectives. The study found out that although both companies were privatised, changes in their respective control systems were different for three main reasons. (1) The degree of competition: the telecommunication sector becomes more competitive and therefore the Telecom Company had to develop very efficient control systems so it could compete in the market. However the Saudi Electricity Company continued to dominate the market and as result there was no strong motive to apply stringent MCS. (2) Managerial power within the two organisations: Whereas in Saudi Electricity engineering managers were dominant and therefore highly influential on the kind of changes the company was seeking, in the Saudi Telecom Company accounting managers dominated and were very different in their attitude towards changing control systems. (3) Government involvement: Saudi Electricity had very limited autonomy since the Government was still the main decision maker on factors such as pricing and policy, whereas Saudi Telecom had a considerable level of autonomy in its policy making.

Effective financial reporting has become of critical importance in our economic markets and the international accounting scandals of the last decades have accentuated the role of auditing in protecting stakeholders' interests and contributing to an efficient functioning of financial markets. Auditing regulation has been at the centre of recent international debates (e.g. EU Green paper; 2010) and different regulatory interventions have been put in place in different countries and in different periods of time. From a theoretical point of view, there is a broad spectrum of regulatory choices that legislators could take, the extremes being self-regulation and government direct interventions. My empirical works focus on two extreme examples of how regulation may interact with auditing processes with the ultimate objective of improving financial information and therefore enhancing the effectiveness of financial markets. In one case, I analyze whether an example of enforced audit self-regulation is effective in improving audit quality and ultimately, reporting quality. In particular, I analyze the mandatory audit rotation rule, i.e. the rule imposing the change of the auditor after a specified period of time, as a potential means to increase auditor independence and therefore audit and reporting quality. I then study a case of direct monitoring activity on reporting quality carried out by a supervising body, namely the SEC in the U.S., and how this interacts and influences audit processes. The evidence collected may be useful to legislators in order to understand the potential effects of different audit regulatory choices and therefore to effectively address the need of high-quality auditing which strongly characterize our economic markets especially after the financial and accounting scandals.

For many years, the internet and its associated technologies have been heralded as the new frontier for SMEs and, inherently, “a good thing”. Despite this having been a common theme for at least the last fifteen years, still many SMEs are not “e-engaged. Despite significant amounts of public money being invested in promoting the Internet to SMEs, estimates for the UK range from 20 to 40 percent non- e-engagement, and substantially more in other jurisdictions. This thesis examines the barriers and drivers to e-engagement by SMEs and challenges the conventional wisdom that the Internet is a positive force for all. In particular, the research looks at the micro end of the SME spectrum, (the μSME), and identifies a number of hitherto un-examined areas of their operation and business models. Following a comprehensive review of the relevant canon of literature, a conceptual framework is derived, developed and presented. This provides the skeleton upon which the research strategy sits. The empirical data set consists of seventeen in depth case studies from a range of SMEs involved in the b2b, b2c and professional services fields. A cross case analysis was then undertaken, leading to the finalised framework. One of the key contributions of this research is the development of the conceptual model and associated framework. This allows for the identification and analysis of barriers, drivers and key determinants of the decision by SMEs and specifically of μSMEs with regard to their engagement, or not, with the Internet. Some commentators have noted that the literature on SME Internet engagement is fragmented and incoherent and that there is a need for framework development and research at the conceptual level to provide more focused research. This thesis accepts that challenge. It takes a comparative approach to both engaged and non-engaged companies, where possible in the same industry, to allow for key determinants and principle impact factors to be identified. The research provides detailed examples of the business models operated by the case companies and the factors affecting their implementation and operation. The variables affecting each SME are codified and mapped against the determinants and principle drivers. This enables the analysis to identify the barriers that filter, and in some cases entirely block, engagement with the Internet.

Libya is a developing Arab State with a small population and a large geographic area. After the Alfatah revolution in 1969, the Libyan economy changed. Most activities such as agriculture, industry, investment, and other associated services were developed. Accordingly, the number of users of financial information in Libya rose steadily and has continued to grow ever since due to economic growth and flourishing business. This situation has led to an increased need for more reliable information to enable the country's authorities to exercise full accountability concerning the efficient and effective use of the available scarce resources on the part of those entrusted with administering public programmes and activities. In a response to this need, PA was required to be conducted by auditors in 1989. Consequently, PA examinations are carried out by two separate institutions, namely the Institute of Financial Auditing (IFA) and the Institute of Investigation and Public Control (IIPC). Accordingly, a comprehensive description of the nature of PA as practised by the Libyan auditors, assessing the degree to which these practices have been effectively operated and suggesting improvements in these practices, was felt necessary. A mixed-methodological design was utilized in this study. Close-ended questionnaires and semistructured interviews are the data collection techniques. The questionnaires were sent to a sample of performance auditors and public sector managers. The interviews were also conducted with a sample of performance auditors and public sector managers. The findings of this study revealed that the Libyan experience in the field of PA shares, in various instances, a common base with what has been identified in the literature or reported in the practices of other state audit institutions. The research findings, furthermore, showed that PA in the Libyan public sector is "rarely effective" or "ineffective" due to many obstacles that the current system of PA is facing, such as "ambiguity of organizations' objectives", "lack of performance measures", "lack of a sound internal control system", and "shortage of qualified performance auditors and specialized staff from different disciplines to carry out PA investigations". In addition, the findings showed that the PA system in Libya can be improved through the adoption of certain procedures, of which the most important are improving performance auditors' skills and attention being paid to PA by the legislative and administrative officials at higher levels in Libya. Lastly, in the light of these findings recommendations were proposed to overcome the reported deficiencies and to improve PA practices in the Libyan public sector.

There are a number of audited companies in Libya which have gone into bankruptcy between 1995 and 2005. Therefore, there is a significant question about the audit quality situation in Libya. There is not itself much research about audit quality in Libya. In particular, there is not much research that has tried to measure audit quality in Libya. This study is an attempt to pursue further some of the issues around financial audit quality in Libya. Secondary data analysis presents observations of Libyan companies from 2006 to 2009 to measure discretionary accruals. It applies an appropriate type of statistical method, to identify accruals and then examine the type of audit opinion related to these statements. Findings indicate that there is earnings management in almost all financial statements. The findings divided all companies into 113 positive andl40 negative discretionary accruals. In addition, Findings indicate that auditors of the agency and auditors working for him/her self issued in general 85.7% unqualified (clean) audit opinion for financial statements that have earnings management, and 11% modified audit opinion. The results answer the first question in this study about the level of audit quality in Libya: audit quality level in Libya is low. The semi-structured interviews support finding of the secondary data analysis, that is the level of audit quality in Libya is low. Also findings indicate that in Libya there are some fundamental elements which themselves are insufficient to deal to develop audit quality. Furthermore, the Libyan audit context suffers from some obstacles and problems that prevent the development of audit quality.

The aim of this thesis is the development of a political economy of large accounting and auditing firms. The importance of this lies in the rapid growth of these firms and the lack of appropriate theories. Economists have applied the theory of the firm to accounting and have approached auditing from agency and litigation costs perspectives, while sociologists have studied the culture of accounting firms and approached auditing using concepts such as ‘legitimation’ and ‘jurisdiction’. These approaches do not recognise that to do justice to the subject matter, we must study accounting firms in the broader context of accounting and its many conceptual and practical problems. These include the conceptual framework, auditor independence, the audit expectations gap, creative accounting, and fraud. To study the accounting firm within the context of accounting the thesis develops a political economy approach that emphasises conflict between investors, managers, workers, and the state. This approach proves helpful because it encompasses all accounting and auditing problems within a framework that recognises agency and links together the profits of accounting firms with their legitimation. The method adopted is the development of a theory of the profits of accounting firms and a model of factors driving auditor independence. Following Bryer, the thesis develops the theory from Marx’s Capital by combining his analyses of ‘bookkeeping’ and ‘commercial capital’. The theory highlights that as capitalist enterprises accounting firms compete with all other capitalist firms for a share of surplus value, as well as competing with other accounting firms. However, the political economy approach also highlights the essential contradiction in accounting: that measuring and disclosing profits can exacerbate the ‘labour danger’. The provocative character of accounting means that disguise of profits is part of its nature, but that this must co-exist with the contradictory need for accurate, objective measurement of profits. The model therefore suggests that the role accounting firms play in disguise is the key to understanding their behaviour. It predicts that as the level of profits and labour militancy rises, so do investors’ demand for disguise. However, because investors need disguise, auditors cannot have full independence, and the thesis concludes that this explains why auditing is within the private sector. Its general conclusion is that rather than being a principle, auditor independence is a variable driven by investors’ needs and the capitalist tactics of accounting firms. The thesis derives and tests two behavioural predictions. First, that accounting firms will exhibit the same types of behaviour as other capitalist firms. Second, the auditor does not act independently. The thesis tests these predictions with evidence of accounting firms’ mergers and profit margins (1986 to 1995), the changes introduced in the US to increase auditor independence (2001 to 2003), and the change to limited liability partnership status (2004 to 2007) in the UK. The high levels of profits disclosed by the LLP accounting firms and the close relationship between mergers and profit margins support the hypothesis that accounting firms adopt capitalist tactics. The wide-ranging debates (1995 to 2005) and changes to auditor independence rules introduced by SEC and Sarbanes-Oxley support the hypothesis that claims of auditor independence are untrue, and that the level of audit independence is a variable. The thesis proposes further development of the theory through historical research and formalising the model.