The Corporate Governance Effects of Audit Committees

Arguments associated with the promotion of audit committees in many countries are premised on their potential for alleviating weaknesses in corporate governance. This paper provides a synthesis and evaluation of empirical research on the governance effects associated with audit committees. Given recent policy recommendations in several countries aimed at strengthening these committees, it is important to establish what research evidence demonstrates about their existing governance contribution.A framework for analyzing the impact of audit committees is described, identifying potential perceived effects which may have led to their adoption and documented effects on aspects of the audit function, on financial reporting quality and on corporate performance. It is argued that there is only limited and mixed evidence of effects to support claims and perceptions about the value of audit committees for these elements of governance. It is also shown that most of the existing research has focused on factors associated with audit committee existence, characteristics and measures of activity and there is very little evidence on the processes associated with the operation of audit committees and the manner in which they influence organizational behaviour.It is clear that there is no automatic relationship between the adoption of audit committee structures or characteristics and the achievement of particular governance effects, and caution may be needed over expectations that greater codification around factors such as audit committee members' independence and expertise as the means of correcting past weaknesses in the arrangements for audit committees. The most fundamental question concerning what difference audit committees make in practice continues to be an important area for research development. For future research we suggest (i) greater consideration of the organizational and institutional contexts in which audit committees operate; (ii) explicit theorization of the processes associated with audit committee operation; (iii) complementing extant research methods with field studies; and (iv) investigation of unintended (behavioural) as well as expected consequences of audit committees.     

A political-economic theory of relevance: Explaining climate change inaction

Why have societies failed to effectively respond to climate change? We address the question of climate change inaction by (1) examining how an unambiguously ominous report about climate change (IPCC 2018) was made palatable by news media and (2) explaining why climate change is typically unthematized in everyday life. Drawing on Adorno and Schutz, we develop a political-economic theory of relevance. The imperative to accumulate capital is not only a social-structural reality but also shapes why particular facts are regarded as relevant in experience (topical relevance) as well as how relevant material is interpreted (interpretative relevance) and acted toward (motivational relevance). Applying this framework, we (1) argue that media popularizations of the IPCC's dire Global Warming of 1.5°C (2018) are constituted by relevance systems conditioned by a capitalist social context and (2) strengthen Ollinaho's (2016) Schutzian explanation for climate change inaction by examining how productive relations and the culture industry perpetuate climate change irrelevance in everyday life. Schutz's framework helps conceptualize the intricacies of ideology and, when revised with Adorno's sociology, shines new light on an old question: the relations between social conditions and knowledge.     

A perfect fit: connecting family therapy skills to family business needs

The purpose of this article is to encourage family therapists to become more interested in family business practice. It does so in three ways: (a) highlighting the number of therapists already involved in family business issues; (b) showing the parallels between family business and family therapy by applying family business research findings to couples therapy; (c) discussing how family therapists already have the practice wisdom to be effective in working with family business clients. Limitations of this practice are also discussed along with suggestions for overcoming them.     

Fertility in China: An uncertain future

As one of the world’s two population ‘billionaires’, the future of China’s population is truly of global significance. With its very low fertility and a rapidly ageing population, it might appear that the country’s famous (or notorious) family planning restrictions are somewhat anachronistic. Here, we explore the process of reform seen over the past three decades and, most recently, in late 2013. We suggest that the popular notion that the family planning restrictions are acting as a pressure valve suppressing a pent-up demand for childbearing, particularly in rural China, is likely to be inaccurate. We also suggest that further reform of the restrictions will not solve the problems of population ageing or many of the other issues widely associated with the restrictions. We conclude that the prospects for further reform are wide-ranging, but likely to be beset by many challenges.     

Shifting the bell curve: the benefits and costs of raising student achievement

Benefit-cost analysis was conducted to estimate the increase in earnings, increased tax revenues, value of less crime, and reductions in welfare costs attributable to nationwide implementation of rapid assessment, a promising intervention for raising student achievement in math and reading. Results suggest that social benefits would exceed total social costs by a ratio of 28. Fiscal benefits to the federal government would exceed costs to the federal treasury by a ratio of 93. Social benefits would exceed costs to each state treasury by a ratio no lower than 286, and fiscal benefits would exceed costs to each state treasury by a ratio no lower than 5, for all but two state treasuries. Sensitivity analyses suggest that the findings are robust to a 5-fold change in the underlying parameters.     

School,Social-Communicative,and Academic Challenges Among Delinquents and Juvenile Sexual Offenders

This study explores the association between student factors and delinquency by comparing two groups of adjudicated youth in six Midwestern residential facilities: 331 young men committed for a sexual offense, and 171 committed for a nonsexual offense. Statistically significant findings include juvenile sexual offenders exhibiting a greater number of delinquent behaviors and greater academic and social difficulties compared with their counterparts adjudicated for a nonsexual offense. Additionally, path analysis revealed that school experience was negatively associated with delinquency for both groups. For juvenile sexual offenders, academic difficulties were associated with delinquency through their school experience. Among general delinquents, delinquency was directly associated with social difficulties and school experience. Implications for interventions and future research are discussed.     

Stochastic relaxation,Gibbs distributions and the Bayesian restoration of images*

We make an analogy between images and statistical mechanics systems. Pixel gray levels and the presence and orientation of edges are viewed as states of atoms or molecules in a lattice-like physical system. The assignment of an energy function in the physical system determines its Gibbs distribution. Because of the Gibbs distribution, Markov random field (MRF) equivalence, this assignment also determines an MRF image model. The energy function is a more convenient and natural mechanism for embodying picture attributes than are the local characteristics of the MRF. For a range of degradation mechanisms, including blurring, non-linear deformations, and multiplicative or additive noise, the posterior distribution is an MRF with a structure akin to the image model. By the analogy, the posterior distribution defines another (imaginary) physical system. Gradual temperature reduction in the physical system isolates low-energy states (‘annealing’), or what is the same thing, the most probable states under the Gibbs distribution. The analogous operation under the posterior distribution yields the maximum a posteriori (MAP) estimate of the image given the degraded observations. The result is a highly parallel ‘relaxation’ algorithm for MAP estimation. We establish convergence properties of the algorithm and we experiment with some simple pictures, for which good restorations are obtained at low signal-to-noise ratios.