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The Saudi stock market’s performance has changed considerably over the past two decades, thus strengthening this market’s position in not only the Gulf Cooperation Council (GCC) region but also the Arab world. The GCC countries’ financial development and Saudi Arabia’s economic growth have also influenced this market. The market index, termed Tadawul All Share Index (TASI), has changed through many economic and financial crises resulting from globalisation. The Saudi stock market that commenced in 1985 is a major market in the Middle East and North Africa region, and since it has been maturing, it is defined enough to be assessed empirically. Therefore, this thesis explores the changing patterns of the Saudi stock market volatility over time, the effects of volatility pattern changes on optimal portfolio choices and the evolution of these choices. Significantly, given the increasing globalisation and financial integration in recent years, this thesis tests a new hypothesis that the Saudi stock market’s volatility is affected by global volatility spillovers (i.e. the volatility in global markets, in commodity markets during the sample periods, including the 2008 global financial crisis [GFC] and the 2014–2016 oil price shocks) with important outcomes for portfolio management. To the best knowledge of the author, this type of comprehensive analysis that offers insights on volatility origin, although critical and novel in the finance and portfolio management fields, has not been undertaken for the purpose of policy analysis in the literature and, in particular, for Saudi Arabia. The research uses advanced econometrics: cross-correlation function (CCF) and multivariate generalised autoregressive conditional heteroscedasticity (GARCH) models (i.e. Baba, Engle, Kraft and Kroner [BEKK], constant conditional correlation [CCC] and dynamic conditional correlation [DCC] models) and high-frequency daily data for 2007– 2018. The multivariate models are reliable and effective for addressing volatility transmission interactions and correlations. These models are flexible in revealing the changes in conditional variance and covariance and simplify the estimation process. These approaches are appropriate and significant in volatility origin studies. In addition, Kroner and Ng’s approach is used to determine the optimal weight and Kroner and Sultan’s approach to determine the optimal hedge ratio. The major findings and contributions of this thesis to the volatility origin area of finance and portfolio management are summarised as follows: (i) This empirical research examines the causality relationship of the TASI with global stock markets and major commodity markets during the full and crisis/shocks periods, using daily data for determining the causality in variance movements of the TASI and stock/commodity pairs. The CCF test shows that overall, the current relationship between TASI and the global stock markets is significant but finds no link between TASI and the commodity markets for all periods except the full period in which it is obvious that TASI is unidirectionally causal to crude oil. This thesis documents bidirectional causality in variance in global stock markets between TASI and some global stock markets over certain periods. (ii) In the second empirical analysis, the Saudi stock market’s trading partner stock markets and major commodity markets are analysed to ascertain volatility transmission and correlations with TASI. This analysis, based on the estimation results of the multivariate GARCH models (BEKK, CCC and DCC), shows that the volatility transmission effect and the conditional correlation behaviours in the full and crisis/shock periods differ. The findings show that transmission channel of shock and volatility spillover varies from market to market over the three periods and that TASI also reacts differently over the three periods. Over the GFC and oil decline periods, some global equity markets influenced TASI volatility to varying degrees, as revealed by the statistically significant model coefficients. This thesis documents that TASI is more integrated with global stock markets throughout the periods of GFC and oil decline. In addition, the results show highly positive conditional correlation at least at the 5% significance levels between TASI and the international stock markets during the three sample periods. (iii) The thesis findings for optimal portfolio weights and hedge ratios recommend that portfolio risk can be minimised without reducing portfolio efficiency by combining some indices of global stocks and commodities into a well-diversified portfolio with TASI. Since international portfolio diversification has become more popular worldwide, investors, portfolio managers and policymakers can apply this information to make new financial investments, recommend cautious financial regulations and implement quick, efficient policy tools.

Current accounting disclosure literature documents economic benefits for mandating International Financial Reporting Standards (IFRS) for European Union (EU) and developed non-EU countries. The critical question is whether there are economic benefits from mandating IFRS on accounting quality in emerging non-EU countries. From an emerging market perspective, this question has not yet been investigated. This thesis examines the economic benefits that IFRS mandating brings to the underpricing and long-term performance of Initial Public Offerings (IPO) firms in one of the largest emerging non-EU countries, Saudi Arabia, and provides the first empirical evidence of its effect. This is attained by investigating the singular effects of the IFRS mandate and intertemporal changes in transparency, and the joint impact of these two elements. This empirical investigation provides answers to four research questions: 1) What is the effect of the IFRS mandate on the underpricing of IPO firms in Saudi Arabia? 2) What is the effect of the IFRS mandate on the long-term performance of IPO firms in Saudi Arabia? 3) Is there a joint effect of the IFRS mandate and intertemporal changes in transparency on IPO underpricing in Saudi Arabia? 4) Is there a joint effect of the IFRS mandate and intertemporal changes in transparency on the long-term performance of IPO firms in Saudi Arabia? Data from January 2003 to December 2017 for 102 IPOs, covering 15 industries, is acquired from secondary sources. The quantitative techniques inherent in the Difference-in- Differences (DiD) research design are used to test the 9 research hypotheses, employing 174 balanced cross-sectional regression models and a battery of robustness tests. Findings show that while IFRS reduces the underpricing of IPO firms, it provides no benefits in relation to the aftermarket performance for those companies. Furthermore, although a significant joint effect on IPO underpricing in Saudi Arabia is seen from both IFRS mandating and intertemporal changes in transparency, this concurrent effect vanishes in the long-term. Intertemporal improvements in formal institutional quality are only relevant for IPO firms in the long-term and do not have any effect on underpricing. Collectively, the findings reveal that IFRS mandating has only a short-lived effect and has no lasting influence on information asymmetry for IPO firms. A number of empirical contributions for researchers, policymakers, and local and international investors in emerging non-EU countries, especially Saudi Arabia, are provided.

This thesis aims to measure the level of financial literacy among Saudi workers. It also focuses on the impact of financial literacy and demographic factors including age, gender, level of education, work experience, marital status, number of children, sector of work and level of income, on household wealth of Saudi workers. These objectives were measured in an empirical study using a survey method. The data collected underwent several steps of analysis including univariate, bivariate and multivariate (multiple regression) analyses. Since Saudi Arabia is a key country in the Middle East and is part of the Middle East and North Africa (MENA) regional economic community this study focuses on one of the most important studies in the region. The study is especially important for Saudi Arabia itself for several reasons. First, financial literacy and household wealth are an important area of investigation because financial crises have affected many individuals in the country. For example, in mid- 2015 international oil prices dropped and the Saudi economy was greatly affected and in response the Saudi Arabian government reduced its budget, including salaries. Moreover, the government introduced a new taxation system in 2018 in addition to a significant increase in the basic costs of daily life requirements such as electricity, water and petroleum, which increased by more than 200%. Thus, people in Saudi Arabia were forced to change their spending patterns to accommodate their new income levels and higher daily expenses. Second, in 2013, the Saudi government revealed its intention to enhance the economic situation of the country through Saudi Vision 2030, which aims to reduce the country’s dependence on oil as its main source of income. This goal can be achieved only through effective collaboration between the government and financially literate people who have the skills required to create wealth for both themselves and their country through wise financial decision-making. This study provides practical recommendations to policymakers and key individuals in Saudi Arabia and the MENA by shedding light on the most affected segment; the financially illiterate. The study confirms that demographic issues have a significant relationship with household wealth. It also transpired that financial literacy is instrumental in many of the practical aspects of people’s day-to-day financial behaviour.

Saudi Arabia, one of the Group of Twenty (G20) economies, has fascinated the world with its increase of foreign currency reserve based on oil revenues. The sharp rise in Saudi foreign currency reserves is one of the most important features of the nation’s rapid wealth accumulation. Foreign reserves are viewed as a national source of economic growth security and financial stability. However, since the 2014–2016 oil price decline, foreign reserves have largely been spent; the depletion has been attributed to sustained government expenditure and declining oil revenues. This study addresses the financial management of the composition of Saudi Arabia’s foreign currency reserve (SFCR) during the 2014–2016 oil price decline. During this period, the Saudi government used its foreign currency reserve to cover government expenditure. Therefore, there is a need to develop a financial management strategy to mitigate foreign currency reserve depletion. The aim of this study is to identify the optimal foreign currency composition that provided a higher return during the examined period. Two approaches are considered regarding foreign currency reserve composition: univariate and multivariate generalised autoregressive conditional heteroscedasticity (GARCH) models for institutional management. The focus of this work is the portfolio composition management viewpoint during the 2014–2016 oil price decline; it considers the suggested distribution of SFCR only during this period. In particular, the research examines SFCR allocation across three groups of currency pairs: major currencies; commodity currencies; and emerging countries’ currencies. The currency groups are analysed and simulated to identify the optimal foreign currency reserve composition. Optimal weights and hedging ratios are used in this study to mitigate risk exposures of oil price volatility by adding currencies that negatively correlated with oil in the SFCR portfolio. This study provides recommendations as general comprehensive guidelines for strategic asset allocation options for consideration by Saudi Arabian Monetary Authority (SAMA) portfolio management authorities. The study uses the GJR-GARCH model, proposed by Glosten, Jagannathan and Runkle (1993) and Lamoureux and Lastrapes (1990), to understand the dynamic behaviour for each currency pair and estimate the persistence in variance using the univariate mean-variance analysis. Further, it employs the multivariate VAR(1)-GARCH(1,1) model, including the Baba, Engle, Kraft and Kroner, constant conditional correlation and dynamic conditional correlation models, to understand the interaction between oil prices and foreign currencies. In addition, cross-correlation function, introduced by Cheung and Ng (1996), also incorporates the univariate GARCH model in two steps to confirm the results of multivariate GARCH and test for the causes in variance between oil and currency pairs. Third, and finally, the optimal weight of the foreign currencies in this study is determined as suggested by Kroner and Ng (1998). The hedge ratio follows Kroner and Sultan’s (1993) approach as a policy recommendation to the SAMA to rebalance the composition foreign currency reserve portfolio. Using the above econometric models, this study will identify and select the possible currencies that can be combined with existing currencies in SAMA’s foreign currency reserve portfolio. Using the result of univariate GARCH analysis for oil and each currency will help SFCR portfolio managers in SAMA to understand the dynamic behaviour of oil and currency exchange rates. Further, it will allow SAMA to introduce an efficient currency-selection strategy that mitigates the risk of depletion by investing in foreign exchange markets. Moreover, it enhances SFCR portfolio composition and maximises dynamic asset allocations when estimating the effect of volatility spillover between oil and the currencies. In this research, SAMA seeks to protect its foreign currency reserve portfolio against price fluctuation by investing in chosen foreign currencies. In addition, the results of the multivariate GARCH models estimate portfolio weights and hedge ratios by using variances and covariances matrices. The results of the multivariate analysis reveal that based on the optimal weights and hedge ratios estimation, SAMA portfolio diversification should increase its focus on some commodities and emerging countries’ currencies to rebalance SFCR composition. This study recommends that, for example, the Japanese yen, Swiss franc, Swedish krona and Polish zloty be added to the current major currencies to reduce the impact of oil volatility.

Gulf Cooperation Council (GCC) countries are the major world suppliers of petroleum and petroleum products. Therefore, their stock markets are likely more vulnerable to changes in petroleum product prices. Moreover, the volatility of GCC stock markets is also influenced by other important global factors, such as the Morgan Stanley Capital International (MSCI) World index; as well as movements in international financial markets, particularly the United States (US) S&P 500 index. This thesis aims to investigate the independent relationship between oil prices and other global factors— including MSCI and US S&P 500 indices—among three major GCC stock market sectors (consumer discretionary, financial and real estate) in the period 2010–17 in which a major oil price decline directly affected the growth of GCC financial markets as GCC countries held 30% of the world’s proven oil reserves. The objective of the research is to identify to what extent oil prices along with other global factors affect GCC stock market volatility at the sectoral level. Studying the volatility transmission behaviours of GCC stock markets at the sectoral level gives a better understating of the volatile behaviour of GCC equity markets. It also eliminates the masking of individual sector reactions that may result in the case of studying stock markets as a single block. This research adopts various advanced econometrics quantitative methods to test hypotheses regarding the nature of volatility transmission behaviours involving GCC stock markets and a set of global factors, by using daily stock return of the selected variables under study. The methods applied include an exponential generalised autoregressive conditional heteroscedastic (EGARCH) model, vector autoregressive (VAR) model, Granger causality model, cross-correlation function (CCF) and multivariate GARCH- BEKK model. These models provide a comprehensive and in-depth view of how various selected sectors in GCC equity markets respond to volatility transmission with a set of the most influential global factors. The key research findings on volatility transmission effects between GCC stock markets and three global factors (West Texas Intermediate [WTI] oil price, MSCI and US S&P 500 index) suggest that the WTI oil price has a major influence on various selected sectors of GCC stock markets, while the MSCI and S&P 500 indices show less of an impact on the GCC sectors under study. The analysis findings are then used to obtain optimal weights and hedge ratios for building optimal, diversified portfolios that contain both oil and non-oil assets in the equity markets under study. Using advanced analysis techniques, this research aims to derive practical, in-depth implications for both GCC stock market investors and government policy makers about volatility patterns for oil prices and global factors that affect GCC stock markets.

This study is a comprehensive analysis of Initial Public Offerings (IPO) in the Indonesian market. The aim is to provide evidence on the: 1) characteristics and main determinants of gross spread and underpricing; 2) relationship of gross spread and underpricing; and 3) post-listing day performance of IPO in the Indonesian IPO market. The relationship between gross spread, underpricing, and the determinants of gross spread and underpricing was examined under 1) pooled data analysis; and 2) panel data analysis. The data used in this research are 150 IPO firms from 2007 to 2016. The data was arranged into three panel data of industry, firm size, and offer size of IPO. Further evaluation was employed to identify the relationship of gross spread and underpricing. The two-stage least squares (2SLS) regression model is adopted to identify the relationship of two IPO costs.The last evaluation on cost of IPO was the evaluation of post-listing day performance of IPO. The distribution of gross spread components shows that the Indonesian underwriting market has different fee setting practices with greater focus on management fees. Evaluation of gross spread revealed that the gross spread level of 2% emerges as the common spread, however, gross spread showed weak clustering pattern at 2%. The pooled regression model result shows that underwriter reputation is the sole significant variable in explaining gross spread in the Indonesian IPO. The relationship of underwriter reputation and gross spread is negative and significant. This indicates that more reputable underwriters have lower gross spreads than less reputable underwriters. The result is contrary from previous works and this result can be explained by the competition hypothesis and economies of scale. The panel regression provided different results on the main determinant in gross spread. The main determinant of the industry panel analysis are firm size and firm age; and the main determinant of firm size and offer size panel analysis is offer price. The result from the distribution of underpricing shows that all IPO firms in the sample were underpriced on the first day of trading at 23.73%. Hypothesis testing of the pooled analysis shows that in general, Shanghai Stock Exchange Index (SSE), firm size and firm age were significant in explaining underpricing in the Indonesian IPO market for both pooled regression model and panel regression model. Further analysis of relationships between underpricing and the determinants of underpricing was examined under a panel regression model of industry, firm size and IPO offer size. The main determinants of the industry panel were fixed asset investment, inflation rates and SSE. The main determinants of the firm size panel were SSE, firm age, and profitability. The determinant variables of SSE and all variables included in firm-specific characteristics (firm size, firm age and profitability) were significant in explaining underpricing. Hypothesis testing on the pooled data and panel analysis provided different results on the main determinants of underpricing in Indonesian IPO market. In general, the result from both analyses indicates that the SSE and firm-specific characteristics (firm size, firm age and profitability) are more significant in explaining underpricing in Indonesia. This finding confirms that investors primarily use firms’ information and the regional stock market index influence in making decision to participate in the Indonesian stock market. The evaluation on the relationship between gross spread and underpricing, found that the two IPO costs had negative relationship or substitute related. Further, the post-listing day performance of IPO in Indonesia showed lower Cumulative Average Abnormal Returns (CARs) at the 20th-day after the listing day which indicates the return received by investors decreased.

This study set out to identify the specific success factors and impacts microfinance has for poor women who predominate in microfinance programs and to articulate policies to raise poor women above subsistence level in India. The study collected data from 200 poor female member of two organisations Vagad Region Service Research Organisation and Self Employed Women’s Cooperative Bank in India. The three data sets from surveys, case studies of selected members and interviews with staff from the respective organisations were triangulated. The results indicate membership of SEWA and VLSSS, gives members access to financial and non- financial products and services which enable them to improve their general standard of living. The poor female members predominate in microfinance because they value access to credit have high repayment rates, invest in the family, and use credit to escape social restrictions. Polices that can assist poor women to rise above subsistence level include providing access to decent health care, vocational training, and functioning education system, investment in public transport and road infrastructure and licences to run a business.

Foreign direct investment (herein referred to as FDI) has been viewed through time as one of the core drivers of economic growth. Regardless of their ideological variances, many countries throughout the world today aim to increase the level of competition in order to attract FDI. This study focuses on the Kingdom of Saudi Arabia, an oil rich nation that has until now, predominantly relied on its revenue stream derived from its natural resources. However, now the Kingdom must adapt and respond appropriately to the challenges of global competition, which have consequently forced the government to invest in non-oil sectors. As a result, the Saudi government has encouraged foreign companies to invest in the nation, through its Economic Vision 2030 initiative. However, against a backdrop of declining foreign direct investment (FDI) in recent years and associated factors related to the political, business and economic environment, Saudi Arabia may find it extremely difficult to successfully implement its Economic Vision 2030 without appropriate solutions and adequate planning processes to combat these obstacles to economic growth and revenue diversification. It is therefore necessary to identify the major causes of this declining trend of FDI and implement appropriate methods to improve FDI inflows in order to meet Vision 2030’s specified objectives. In this regard, the study had two main concerns. Firstly, to investigate whether Saudi Arabia’s business environment is conducive to attract FDI, particularly in non-oil sectors. Secondly, to examine the factors that determine the motivation of foreign companies to invest in Saudi Arabia. A mixed method approach of surveying top executives of foreign firms and interviewing top managers of the Saudi Arabian General Investment Authority (SAGIA) was adopted as the research strategy. The quantitative survey data were analysed using descriptive statistics and frequency estimations (Shapiro-Wilk test). For thematic analysis of qualitative data on interviews, the method of Braun and Clark (2006) was used. The key findings are summarised as follows. The main problems of FDI in Saudi Arabia are associated with a decline in the efficiency of financial markets and credit growth, increasing interest rates, restrictive labour laws, slow pace of facilitation steps of FDI, stagnant investment climate, imbalances of crucial natural resources and insufficient guarantees and policies. The Vision 2030 contains a comprehensive plan for a large-scale skills enhancement programme to solve this problem; however, this will undoubtedly take time. Until then, the effect of skills shortage linked to the ‘Saudisation’ of FDI will continue. More than 10,000 foreign firms have closed because of this problem. The negative message sent by these companies may adversely affect the image of Saudi Arabia and thus negatively affect any future FDI inflows. The range of natural resources is very narrow, and hence, costs are high. Notably, lack of quality and consistency are important FDI deterrents. The geographic location of Saudi Arabia gives it a strong strategic advantage. However, negative factors mentioned earlier may counter this advantage compared with other strategically located countries equipped with better services. Market liberalisation in Saudi Arabia is imperfect. Currently, the country is focusing on attracting FDI from selected countries in selected sectors. But with existing limited capabilities, market liberalisation may have limited impact in increasing FDI in Saudi Arabia. Ruled by a monarchy, Saudi Arabia does not have any significant political instability. It can be considered as a stable nation. Rather, Saudi Arabia has a negative image due to gender discrimination. Lack of consistency in business regulations in dealing with the government, bureaucracy, cronyism (Wasta), poor enforcement by the legal and judicial systems and the potential effects of religion and culture have also been identified as FDI- negative factors. Progressive easing of laws and policies not conducive to FDI have been implemented since 2000 but have not been effective. SAGIA has limitations regarding simplification of approval procedures thus making it difficult for FDI seeking firms. Only limited success has been achieved by the Crown Prince and SAGIA in attracting FDI into Vision 2030 projects, primarily because of lack of support from other departments. Global investment forums are not specific to Saudi Arabia; many countries conduct similar conventions to attract FDI. Although policies are being evaluated, actual change has not occurred, even after two years of Vision 2030. Administrative weakness is a barrier to the FDI targeted in the Vision. In addition, Islamic laws are a deterrent to outsiders; at least for foreign investors, personal and religious independence need to be guaranteed to improve FDI outcomes. The findings from the study make a major contribution not only to existing knowledge but also adds to new knowledge highlighting the main problems, barriers, and obstacles of FDI inflows in Saudi Arabia. The study’s findings will also benefit both the SAGIA and foreign firms looking to invest in Saudi Arabia. The study concludes with several recommendations and future research directions.

Capital budgeting is a crucial business function and most large firms use Discounted Cash Flow (DCF) methods, particularly the Net Present Value (NPV) method which takes into account the time value of money, for evaluating investment projects. Hence, the discount rate plays a major role in the choice of capital investments, and both the selection and appropriate use of a suitable discount rate are critical to sound capital budgeting. Extensive evidence from the literature indicates that agency problems exist in capital budgeting decisions, both when choosing and when using a discount rate for this process. Managers as agents can manipulate the choice of the discount rate to maximise their own benefits. This creates an agency problem that has impacts on efficient capital investment decisions. Most firms believe that using project-specific discount rates may open up incentives for managerial opportunistic behaviour and hence they prefer firm-wide single discount rates that might moderate the managerial bias. In other words, most firms use their company-wide Weighted Average Cost of Capital (WACC) to evaluate all of their capital projects. However, company-wide WACC is not a correct approach, in that it may lead to the selection of high-risk, unprofitable projects and hence to inefficient allocation of resources. This creates a need for a systematic and verifiable method to establish project- specific discount rates. If possible, the determination of these project-specific discount rates should be tied to outside market forces that are not under the control of the manager. But the selection of suitable project-specific discount rates alone may not completely minimise agency costs, as managers’ can manipulate capital budgeting decisions to maximise their benefits. Hence, an appropriate capital budgeting framework that can further minimise agency costs and maximise company value is required. The main aims of the study are to develop a process to select appropriate project- specific discount rates that minimise agency costs and to develop a better capital budgeting framework to further minimise agency costs in capital budgeting. Such a framework should provide management incentives to achieve efficient capital budgeting outcomes leading to enhanced company value

This thesis tries to assess the Indonesia fiscal risk because of government guarantees for renewable energy development, particularly the development of geothermal power plants. These plants in Indonesia can be developed either by the PLN (a state-owned enterprise) or by private investors. When the plants are developed by private investors, they have to sell the electricity to PLN as it is the only electricity retailer in Indonesia. If PLN build power plants, it needs loans from financial institutions, but due to its financial condition, those financial institutions need government guarantees which ensure PLN’s ability to service the debts. Meanwhile, when the power plants are developed by private investors, the investors need to be guaranteed that PLN will be able to pay for the purchased power. These guarantees might create a fiscal risk for the government. The government has been stating fiscal risks in its national budget, but it only focuses on the risk exposures without estimating their probabilities. Therefore, this study tries to complete the current budget statement which provides both exposures and probabilities of fiscal risks from government guarantees for renewable energy projects. Furthermore, the government has been applying a simulation model to assess the fiscal risks but it is in a definite number which does not incorporate uncertainties. Whereas uncertainties can alter the government policy. Moreover, the government model to assess fiscal risk on the power sector incorporates general power plants which may not suitable for the renewable energy power, particularly geothermal power. It is then forecasted that it is likely there will be no government guarantee for geothermal projects for 2018 and 2019. However, with less than 10% probabilities of an exposure of up to IDR 18.8 trillion and IDR 25.2 trillion for 2018 and 2019 respectively. Under 90% certainty, the maximum guarantee exposure will be up to IDR 1.9 trillion and IDR 4.1 trillion. As results, these exposures are categorised as low risk because they are below the threshold value of 0.5% of GDP but the government will have a sufficient cash to pay the maximum possible guarantee amounts. These forecasted figured are based on a Monte Carlo simulation model, a stochastic simulation model, for renewable energy power plants. In practical, this model can act as a tool for analysing guarantee proposals, to estimate fiscal risk and economic impacts of the guarantees, to design fiscal risk control policies. Therefore, this study can be applied for decision making regarding government guarantee in Indonesia. In academic point of view, this study explains the transmission of fiscal risk from government guarantees on geothermal projects in Indonesia to the fiscal risk. It also enrich academic perspective on fiscal risk management which is differ from other literatures as it explains fiscal risk from the Indonesian government guarantees, adds knowledge on the relationship between government expenditure, government guarantees on renewable energy development and fiscal sustainability in Indonesia, and provides knowledge through a practical and applicable fiscal risk assessment approach on government guarantees. It is concluded that there will be no government guarantee exposure for geothermal projects in 2018 and 2019, so the government need not to allocate the guarantee expenditures in the national budget for the years.

Purpose – Many theoretical financial theories attempt to explain the behaviour of stocks and the structure of their returns, namely the Portfolio Theory, the Capital Asset Pricing Model (CAPM), the Efficient Market Hypothesis (EMH), and Behavioural Finance. These theories, however, have provided incomplete and contradictory explanations regarding stock market anomalies. The aim of this research is to analyse the theory of anomalies and develop a comprehensive theoretical model based on the extant financial theories to develop an improved explanation about stock market anomalies. The principal aim of the current research is to examine the presence of several anomalies, covering macroeconomic, calendar and event variables, in a secondary stock market within Australia, namely the National Stock Exchange of Australia (NSXA), and a number of the sub-indices contained within this stock market. Design/methodology/approach – This research empirically tests the efficiency of the NSXA. The role played by each of the following independent variables is examined by applying specific statistical techniques: long and short-term interest rates; exchange rates; day of the week; weekends; months of the year; turn of the calendar year, January, turns of the month; Australian end of financial year; Australian federal election, US presidential election and sporting events Findings – The results are interesting and contradict with the existing research. Though the empirical analyse yields statistically significant results for some hypothesis and not for others, the research finds that: a clear interest rate effect for both short and longterm interest rates; an observable and strong monthly effect and suggestive relationship between the NSX Resources sub-indices and Australian federal elections. Research limitations/implications – the main limitations of the research related to: 1) the particularity of investors in the NSXA falls out of the scope of this study, they may provide further insight as to why the anomalous behaviour was observed; 2) difficulty quantifying the physical location of the companies listed on the exchange as knowledge of this may have been supportive in explaining trading patterns and anomalous behaviour and 3) the impact of market capitalization and firm size was not considered due to a lack of available data. Future research may want to incorporate firm size when undertaking analysis to determine if a relationship exists between company size and anomalies. The main implication of the research is that there is only partial confirmation for the validity of the EMH. While the EMH is not rejected in each of the tests undertaken, the fact that some anomalies are observed implies that the EMH cannot be seen as an all-encompassing theory of how stock markets operate or behave. The current research raises the concept of segmented market efficiency. Practical implications – This research indicates that the NSXA does exhibit several specific anomalies. The presence of such anomalies provides investors with greater knowledge which can be used to maximise financial returns, in both the medium and long term, by improving decisions relating to the timing of stock investment. Originality/value – To the researcher’s best knowledge the focus of stock market anomalies in an Australian context has been exclusively to examine the Australian Stock Exchange (ASX). This is the first study to focus on a "secondary" smaller, less well recognised stock market, the NSXA. Additionally, this is the first study to consider economic, calendar and event variables in an integrated model to provide an improved explanation of stock anomalies.

Lending structure, risk management and corporate governance (CG) are important banking management issues and pertinent to banks’ performance in terms of profitability and operating efficiency. Although existing research has demonstrated the link between CG, lending structure, risk management and bank performance, limited studies have established such a relationship among fast-growing joint-stock commercial banks (JSCBs) and city commercial banks (CCBs) in China. This study investigated two sets of relationships between lending structure, risk management, CG and the performance of Chinese JSCBs and CCBs from 2007 to 2014. The two relationships were: (i) between CG factors (identities of influential shareholders, ownership structure, board of directors, CEO duality), lending structure of banks and bank risk management, and (ii) between CG factors, risk management and performance of banks. The CG mechanisms employed in this study examined the structure and composition of boards, as well as ownership structure. The variables employed were board independence, board size, political connection of boards, CEO duality, nature of influential shareholders, ownership concentration, state ownership and foreign ownership. Lending structure was measured via lending asset allocation in industrial loans, commercial loans and real estate loans. The following variables were also employed to measure bank risk management: (i) capital adequacy ratio (CAR), (ii) loan-to-deposit (LTD) ratio and (iii) non-performing loan (NPL) ratio. Performance of banks was measured using return on average asset (ROAA) ratio, return on average equity (ROAE) ratio and cost-to-income (COI) ratio to reflect the profitability and operating efficiency of JSCBs and CCBs in China. The data used in this study were manually collected from the disclosed annual financial reports of JSCBs and CCBs. The sample covered 49 JSCBs and CCBs from 2007 to 2014. The two sets of relationships were expressed in a structural model that was further developed into six simultaneous equations. The equations were estimated using both an ordinary least squares (OLS) approach and a generalised method of moments (GMM) approach in EViews. This study reports and discusses the GMM estimation results because of their robustness against the problem of endogeneity. The estimation results demonstrated that among the CG mechanisms, political connection of boards, ownership concentration and state ownership have a significant effect on bank performance represented by all three measures (CAR, NPL ratio and LTD ratio), while board size does not affect any of the bank performance variables. However, no CG mechanism had a consistent effect on all three risk management variables, with board independence having no effect on any of the risk management variables. In addition, the lending structure variables had a limited effect on the LTD and NPL ratios, while CAR was not affected by any of the lending variables. The following potential policy implications arise from this study. First, JSCBs and CCBs should focus on strengthening the function of board of directors through a more meritocratic recruitment process based on required expertise and experience. As part of this recommendation, there should be fewer government-appointed directors of JSCBs and CCBs. Second, the government should be cautious about dispersing shares held by government agencies because of the positive effect of government shareholding on bank performance. Third, the public listing of JSCBs and CCBs should be encouraged to promote their performance. Fourth, government and foreign investor block shareholding should be retained to enhance the performance of JSCBs and CCBs, while block shareholding by state-owned enterprises (SOEs) should be discouraged.

Financial sector authorities have incorporated market discipline as an integral part of their banking regulatory frameworks. Accordingly, in Indonesia, the Basel II Capital Accord has institutionalized the market discipline as Pillar 3 to complement requirements under Pillar 1 (risk-based calculation of capital) and Pillar 2 (supervisory review process). In addition, the provision of a financial safety net (FSN) has been a key element of the policy response to recent financial crises. This provision, however, might potentially lead to moral hazard outcomes that could impair the incentives for market players to monitor and discipline financial institutions. In turn, this could incite more risky bank activities and increase the likelihood of a financial crisis. Therefore, a further investigation of the presence of market discipline and the impact of a FSN is imperative to develop a more credible policy to safeguard financial system stability, especially in developing economies such as Indonesia. This study investigates the presence of market discipline in the Indonesian banking sector as imposed by depositors, bond holders, and equity holders. The discipline by depositors is measured through the impact of bank fundamentals on the changes in the amount of deposits. Whereas, discipline by bond and equity holders is measured through the impact of bank fundamentals on bond yield spreads and equity returns, respectively. Bank fundamentals, in this study, are associated with the Capital Asset Management Earning and Liquidity (CAMEL) financial indicators that are commonly used by banking authorities to assess bank soundness. This study employs a dynamic panel data model using a sample of 95 banks, 70 bonds, and 11 equities. Regardless of the lack of ideal conditions for an effective market discipline in a developing market, the present study has identified the presence of market discipline imposed by depositors and bond holders, but no significant evidence of discipline by equity holders. Moreover, this study identified moral hazard implications of the provision of a FSN. These include the lessening of discipline by large and institutional depositors and the existence of the “too big to fail” (TBTF) perception among stakeholders.

Access to finance is one of the biggest obstacles facing the development of small and medium enterprises (SMEs) all over the world. The literature shows that growth and development of the SME sector is strongly linked with sustainable access to financial resources. Although a few studies have attempted to examine this relationship in Saudi Arabia, there remain knowledge gaps with respect to the relationship between the development of SME and obtaining funds from financial institutions. In order to fill this gap, this study aims to assess factors that affect access to finance from Saudi banks by SMEs in Saudi Arabia and to identify the obstacles that affect Saudi SME performance.

The uncertainty in financial markets due to the global financial crisis highlights the importance of proper prudential and regulatory practices in commercial banks, and the economic and social costs that can be incurred if risk is not adequately identified and managed. To manage risk, the global community is adopting the third generation of liquidity and capital requirements developed by the Basel Committee on Banking (the Basel III standards). There is no published study focusing on the implementation of Basel III in the Australian banking system. To fill this gap, this study develops a bank asset and liability management model using goal programming for one large Australian bank, to examine the implications of a progressive move to Basel III on key financial variables – net interest income (NII), return on equity (ROE) and return on assets (ROA) – to undertake a preliminary stress testing analysis of the bank after Basel III and to consider some of the governance and policy response issues involved. The `modelling is used to investigate the impact of progressively moving to Basel III from a Basel II base case, assuming that the bank maintains current balance sheet trends, practices and corporate governance settings out to 2019. The bank asset and liability goal programming model was also used to examine the implications of two stress scenarios: the first involves an increase of 5% in net cash outflow (NCO) and a decrease in interest income of 5%, and the second involves an increase of 10% in net cash outflow and a decrease in interest income of 10%. Finally, this thesis examines possible policy responses available to the banks, guided by corporate governance, to offset some of the effects of implementing the Basel III requirements.

Corporate governance is considered to have significant implications for the growth prospects of an economy. Well-formulated corporate governance mechanisms are regarded as important not only in reducing risk for investors, but also in protecting shareholders’ value as well as in improving and enhancing a firm’s performance. However, corporate governance mechanisms do vary between countries, as each country is unique in its political, economic, legal, culture and social contexts. Each country has its own corporate governance regulations with respect to various aspects of corporate management, which come under public domain. The United Arab Emirates (UAE) also has its own corporate governance rules introduced in 2010. The results of the study reported here evaluate the consequences of compliance with different components of the rules by UAE firms. The conclusions of the study lead to some recommendations to the UAE regulatory authorities. The purpose of this study was to investigate the extent of compliance with various components of corporate governance rules of 2010 and their relationship between corporate governance practices and performance of financial and non-financial firms and conventional and Islamic banks in the context of the UAE. The study investigated the impact of the implementation of 2010 corporate governance rules and the extent of changes to corporate governance practices two years later (in 2012). During this period, firms that operated in the UAE were experiencing the impact of the global financial crisis of 2008-2009 and its aftermath.

In recent years, the issue of effective corporate governance has attracted much attention, especially to promote an ethical business environment to ensure corporate accountability and integrity. In the academic sphere, the mainstream research on corporate governance and ethics has been performed using various ethics theories based on the premise of conflict of interest. This thesis uses a feminist perspective to analyse the corporate governance practices at BHP Billiton using the lens of the feminist ethics of care, as well as projecting the financial condition of the company using the same principles.

Four major players, touted as the Big 4, dominate the banking industry in Australia. The National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC) and Australia and New Zealand Banking Group (ANZ) dominate the Australian banking industry. However, their products and services are not largely dissimilar. Therefore it is imperative that they differentiate themselves via their service propositions. Paradoxically however, banks seem to be opting for service models that aim to reduce banker/customer face time so as to free bankers up for new business acquisition. Whilst this is an important activity that banks need to engage in, care needs to be taken not to alienate existing customers in the process. This thesis examines the relationship between the bank, its relationship manager and the end customer, and studies the dynamics within this relationship and the main factors contributing to the success of the said relationship which is critical to business success.

This study, supported by the Stock Exchange of Thailand (SET), investigated the responses of institutional investors in Thailand to corporate governance practices that promote minority shareholder rights. The study examined the compliance of banks with corporate governance standards in the commercial banking sector in Thailand and the relationship between compliance, ownership types, and bank performance. Interviews with experts from the sector preceded a survey of 173 bank executives and investors. The data were analysed using multivariate statistics and regression analysis.

This thesis explores the influence of organisational culture types (clan, adhocracy, market and hierarchy) on job satisfaction, organisational commitment and employee turnover intention in banks in the Kingdom of Saudi Arabia. The main objectives of this thesis are: (1) to examine the applicability of Quinn and Rohrbaugh's Competing Values Framework of organisational culture to a Saudi Arabian context; (2) to plot the cultural profile of Saudi banks by identifying their dominant organisational culture types; (3) to determine the extent to which organisational culture influences job satisfaction and organisational commitment among employees of Saudi banks; (4) to investigate the roles of job satisfaction and organisational commitment in mediating the relationship between organisational culture and employee turnover intention; and (5) to determine the extent to which job satisfaction and organisational commitment influence turnover intention among employees of Saudi banks.

One of the fundamental considerations for exporters in international trade transactions is the aspect of payment. In the context of financial risk management, Letters of Credit enable the exporter to substitute the credit risk of the buyer with that of his bank. The Letter of Credit is a conditional payment guarantee, relying on one hundred per cent documentary accuracy to trigger the payment. Less than one hundred per cent compliance means the loss of the payment guarantee. Non-compliance is a significant problem as, according to the International Chamber of Commerce, worldwide documentary discrepancy rates against Letter of Credit transactions have been estimated to be between sixty to seventy per cent. The mechanics of Letter of Credit transactions comprise a complex web of interactions between banks, traders and their service providers, providing a fertile ground for discrepancies and existing literature acknowledges this world-wide problem. In the UK, in 2000, losses were estimated to be AUD 305 million (£ 113) through non-compliant documents being presented under Letters of Credit – this amount did not include lost opportunities and cash flow problems. In the same year, a separate USA study of Letter of Credit transactions confirmed the high discrepancy rate, but also claimed that as long as buyers want the goods discrepancies did not translate into financial losses. The findings were refuted by others. It is the potential loss of revenue caused by the mismanagement of risk that is foremost in this research. It is estimated that the annual value of Letter of Credit business for manufacturing exports to ASEAN is approximately AUD 3.5 billion, with losses estimated to be upwards of AUD 920 million. This research aims to assist in greater understanding of the usage of Letters of Credit and the dynamics that underpin these transactions leading to a greater understanding of the interactions between Australian exporters and ASEAN importers.

Financial planning advice is becoming increasingly relevant to the economic objectives of Australians. However, the evidence suggests there are numerous ethical risks related to the provision of that advice and other factors that may be influencing the ethical decision making of financial planners and compliance officers in their respective roles. The purpose of this study was to enhance understanding of the ethical decision making of these financial planning participants within this context. This study is therefore a significant one in what is a relatively under-researched area of interest. The study’s purpose was converted into seven research questions, two of which concerned the primary types of unethical conduct occurring in the provision of financial advice and respondent perceptions of the current ethical issues they face in their respective roles within financial services organisations. Nine hypotheses were linked to the other research questions to measure whether there were statistically significant relationships between different constructs, and to test respondent perceptions of the ethical climate and culture of their organisation.

In this research study we have adopted Mason and Wilson's (2000) definition of being financially literate as "the ability to make informed judgments and to take effective decisions regarding the use and management of money". Keeping this definition in mind, certain financial skills are identified as important for apprentices, to rightfully be considered financially literate. These skills include basic financial mathematical skills, cash and financial management, basic knowledge of payment methods, superannuation, loans, investments and the ability to source financial assistance. Through analysing the survey data we found that a significant percentage of apprentices do not possess the required financial skills identified in this study to manage their finances effectively. It was also found that apprentices lack understanding of more complex payment methods such as credit cards and EFTPOS, as a result these are not used on a regular basis. Major areas of concern are knowledge of superannuation, interest rates and personal loans. Finally, the data revealed that apprentices could identify the importance of financial management and its benefits. Unfortunately this is often not put into practice. Hence a major indication from the study was that apprentices lack most basic knowledge and confidence to actively manage their finances effectively. This study has identified that apprentices would benefit from an effective education program aimed at improving their financial skills. For an apprentice to feel comfortable with their current financial position, they need to be confident with both their current asset position and debt level. With this understanding, a financial education program primarily aimed at teenager and young adults is well advised, to engage the major areas in order to give apprentices confidence in their financial position. Once this has been achieved they can then move on to improving their knowledge of payment methods and other financial products.

This thesis examines the trends, patterns and determinants of Japan's foreign direct investment (FDI) in Thailand during the period 1970 to 2003, taking into account the up to date literature and most recent data. The research consists of analyses of the trends and patterns of Japan's FDI in Thailand, literature reviews of the theories and empirical studies of FDI in general and in particular of FDI in Thailand, and an econometric analysis of the determinants of Japan's total FDI in Thailand and Japan's FDI in Thailand's manufacturing and services sectors.

The aim of this study was to assess the usefulness of Output Based Budgeting (OBB) in the Victorian government in two ways using the decision-usefulness model and the budget process model as theoretical frameworks. First, this study aimed to examine the usefulness of information generated by OBB in the Victorian budget papers from the users perspective. Second, this study aimed to investigate the consequences of using OBB in Victorian government departments.

The last two decades have been a critical period for Thailand's development. From the mid 1980s to the beginning of the 1990s, the Thai economy performed remarkably well and was a showcase for the world economy. Having achieved a double-digit growth rate for a brief period, Thailand in the late 1980s was regarded as the fastest growing economy in the world by the World Bank and the IMF. With prospects of further rapid economic growth, the Thai government accepted Article VIII of the IMF, which required Thailand to liberalise and deregulate its financial system. Accordingly, Thailand removed most regulations on its financial system from 1989 to early 1994. Consequently, the country enjoyed further economic growth and large volumes of capital began to flow into Thailand's financial market. Unfortunately, the story of Thailand's success was short lived and soon ended, after the financial liberalisation was completed. Finally, economic growth came to a sudden stop and the crisis erupted in July 1997. This thesis investigates the contribution of financial liberalisation to the crisis in Thailand by focusing on four main issues: the sequence of financial liberalisation, capital controls, exchange rate policy and asymmetric information. In addition, this study also examines time-series data and other information to explore the consequences of financial liberalisation for the crisis in Thailand.

The banking industry in Oman is of major importance to Oman's economy, yet the banks continue to conduct their banking transactions using traditional methods. A strong banking industry supports economic developments significantly through its efficient financial services. The role of the banking industry in trying to achieve the objectives outlined by the Sultan of Oman will depend heavily on the industry's capabilities. This requires banks to introduce changes (both at the procedural level and at the informational level) such as the banking industry moving from traditional distribution channel banking to electronic distribution channel banking. Given the prevalence of Internet technology adoption by the banking industry in developed countries, the reason for the lack of such an innovation in developing countries such as Oman is a fruitful research question. The aim of this thesis is to explore managers' perceptions of Internet technology and their tendency to adopt it in the banking industry.

The primary aim of this study is to examine Thai equity fund performance during the period 1992-2000. The achievement of the primary aim will involve investigation of fund performance in sub-periods of expansionary and contractionary market environments, the relationship between investment performance and risk, and the correlation between the risk-adjusted performance measures. The secondary aim of this study is to investigate the persistence of fund performance between a subsequent period and a series of prior periods of varying length. This study of persistence will lead to an exploration of an optimal past performance information set of equity funds in Thailand.

Arguably, the single largest innovation in global financial markets in response to financial deregulation and financial innovation over the past two decades has been the emergence and spectacular growth of derivatives markets. The dramatic emergence of derivatives has caught many Central Bankers unaware and only recently has the Bank of International Settlements (BIS) started investigating seriously the impact of derivatives on policy issues. However, what is needed is further insight into and analysis of the impact of derivative growth on macroeconomic policy and the macroeconomy. Such insights should enable policy makers to use derivatives to their best advantage. Therefore, the purpose of the study is to examine how monetary policy transmission changes in the presence of derivative markets.

Industrial development finance institutions (IDFIs) in developing countries have been experiencing serious financial distress since the early 1970s due to persistent loan defaults. Despite the application of a number of remedial measures, industrial loan default problems continued to haunt the IDFIs. The massive loan loss has not only impaired the viability of many financial institutions, but also made them dependent on government bail-outs. The problem of persistent industrial loan default has become a most important and serious issue that has attracted the attention of bankers, financial market operators, international lending institutions such as the World Bank and policy makers in developing countries. Bangladesh is chosen as a case study because it is an interesting example of the persistent industrial loan default problem.

This project provides various points of view to determine whether the private sector can build-own-operate-transfer pubhc infrastructure projects more efficiently than the public sector and will use as an example the building of the City Link Project. The project will argue the advantages of it being managed by the private or public sector. Some consideration will be given to the argument that the Victorian State Government simply does not have the capital or the expertise to complete a public infrastructure project the size of the City Link.

The purpose of this research is to attempt a comparative study of the impact of size on foreign exchange risk management practices using manufacturing firms in the Western Region of Melbourne. This is to provide evidence to either support or refute the results from the other studies conducted whereby large companies and multinational corporations were used to determine whether size has a significant impact on risk management practices of a firm. Specifically, this study investigated the risk management practices in manufacturing firms using company specific variables identified from the related literature reviewed viz: policy and responsibility, degree of centralisation, foreign exchange forecasting, risk management objectives, hedging strategy and policies, and computerisation of risk management.

This thesis examines the predictability of asset prices for an Australian investor. Evidence supporting the mean reversion alternative to the random walk hypothesis is presented, with a discussion of potential models, both linear and nonlinear. The normality and homoscedasticity assumptions are investigated and their use in asset models is validated. A study of fund performance is carried out and value is found to be added by timing asset allocation but not by stock selection, though there is no correlation between past and present rankings of managers. The difficulty of proving mean reversion or reversion to trend, other than for large deviations or extremes, and the actual performance by managers, implies a strategy of allocation at these extremes. That is, managers should adhere to their policy portfolios and let markets run short term; making appropriate large strategic moves when markets have moved to extremes.

Beginning in the late 1970s foreign banks were allowed to enter into China in line with the country's overall economic reform and opening up program. Recently, many of the world's larger banks have entered the Chinese market and have settled into a strong presence in China, mainly through branches, operating subsidiaries and representative offices in coastal cities and Special Economic Zones. However, unlike other Australian industries which are strengthening their operations or cooperative undertaking in China, in respect of their number of operating institutions in the Chinese financial market Australian banks are behind many foreign banks such as those of the United States, Japan, Hong Kong, UK and France and so on. There has been no systematic study of Australian banking industry entry into the Chinese market to date. This study attempts to identify the opportunities and challenges which foreign banks will face in the second stage of the Chinese economic and financial reforms. The study will also compare and evaluate the market strategies of French and Australian banks in China. The survey focused on both Chinese and foreign banks in China. The findings indicated that the second stage of the Chinese economic and financial reforms should bring opportunities to foreign banks which should outweigh their challenges or difficulties. The study also indicated that Australian banks were in unfavourable position as compared with French Banks, and the business strategies of Australian banks are more conservative than those of the French banks.

There is increasing interest in employee participation in the workplace. This has in part been attributed to support for the process by Government, employers, unions and tribunals. During the 1980s, legislative support was provided by the Federal Government in the form of the industrial democracy provisions of the Public Service Reform Act 1984. Since the late 1980s, the federal industrial tribunals have encouraged the adoption of participation as a vehicle through which change might occur, such change being driven by the economic imperatives of global competition and its importance to the Australian economy. The Australian Industrial Relations Commission (AFRC), in 1991, required the parties to include provisions for consultation in their enterprise agreements and insisted on enterprise bargaining being conducted in a consultative manner. Employee participation has thus become an important management tool in the application of human resource policies and policy objectives. Past research has shown that middle and frontline management commitment and support for employee participation programs are key factors in determining the effectiveness of such programs. This study explores middle and frontline management responses to the implementation of employee participation within the Australian Taxation Office and the impact of that program on middle and frontline managers in that organisation. Adopting a case study approach, the study uses evidence from two branch offices of the Australian Taxation Office to show the responses of middle and frontline management to the adoption of employee participation as a means of introducing a performance management program and the impact of that initiative on middle and frontline management in those branches.

Insolvency practice, has in recent years undergone many changes with the introduction of the Voluntary Administration scheme under Part 5.3A of the Corporations Law. So significant are these changes that current statistics show that as much as 48 % of all external appointments over "insolvent" companies are by the appointment of a Voluntary Administrator. The scheme fails to allow the largest class of creditor, the unsecured creditor, the right to initiate the appointment of an Administrator over an insolvent company in order to protect their interests. This study aims to identify the rationale behind the exclusion of such a right, the cost/benefit of introducing the right to unsecured creditors and the possible social and economic consequences of including such a right into Part 5.3A of the Corporations Law. It is concluded that whilst the Voluntary Administration scheme continues to operate in the manner that it does, overall returns to creditors will not increase unless unsecured creditors are given the right to initiate the appointment of an Administrator. Extensions to the existing appointment process are suggested and reviewed.

The term "offshore banking" has many meanings. The most common definition involves an institution that is situated in a country which deals with foreign currencies and with non-residents. The following characteristics may have a substantial bearing on the success of an OBC : ocation/time zone, political situation, economic stability, advanced telecommunication facilities, skilled personnel, the legal system, the secrecy of the banking system, foreign exchange relations and above all favourable taxation legislation and absence of certain government regulations. Absence of any of the above characteristics may inhibit the conduct of business by an Offshore Banking Centre. This thesis makes an assessment of these reconditions. Despite the vital importance of such an assessment, little attention has been paid to it in the recent past.

In this thesis the extent private shareholders read and use information contained within company annual reports is examined. More specifically the thesis will be concerned with gathering information to establish the following: 1. the extent to which shareholders read the various sections contained in the annual report; 2. the reason why shareholders fail to read sections contained in the annual report; 3. the sections in the annual report investors have difficulty understanding; 4. the extent to which annual reports are found useful by shareholders for investment decision making; 5. the respondents personal characteristics; 6. whether any significant relationship exists between the shareholder's personal characteristics and the extent to which they read and use certain sections of the annual report.

Over the last two decades, the extent of corporate restructuring has gathered momentum both in Australia and internationally. In particular, the 1980's signified major developments in financing instruments which facilitated corporate restructuring transactions. While the nature of corporate restructuring may take a variety of forms, two popular forms which have increased in prominence over the last two decades are the leveraged buyout (LBO) and management buyout (MBO). As the development of MBOs is relatively recent, and little Australian research on MBOs has taken place, this research paper focuses on MBOs.

Information technology has gained considerable prominence among both researchers and practitioners concerned with economic development in recent years, because of its potential to transform fundamentally both economic activity and the global relationships within which development takes place. Developed countries have set out to harness this potential, as is evident in the increasingly pervasive profile of this technology in these countries and the importance attached by these countries to its adoption and diffusion. These trends in the developed countries and the implications generated by the revolution in information technology have made it critical for the developing countries to be also involved in the race to exploit information technology for rapid economic development.