As global competition intensifies, more companies have found that it is imperative to develop quality management systems that will continuously improve the quality of their products, simply in order to survive. Total quality management (TQM), a term widely accepted as a new management philosophy which was developed based on the management practices in Japan, may hold the key to unlock American industries’ competitive power. It is understandable that many American managers have embraced TQM with great enthusiasm since the early 1980s. China, on the other hand, adopted a policy of economic “reform and openness” in 1978; the goal of this more “open and reformed” policy was to create a better economic, social, and political environment for its state-run enterprises in order to improve their efficiency. Since then, however, western management systems ---- including total quality management ---- have been introduced to Chinese managers. Realizing the potential of TQM in helping those state-run enterprises, the Chinese government has taken a leading role in promoting the implementation of TQM. Rules and regulations have been instigated to enforce the government’s determination to pursue TQM. Moreover, the news media in China has taken an active role in the process of promoting TQM. Special programs have been produced to raise people’s attention to those quality related issues. Despite the early start and wide support received from the government, media, and industry, the effectiveness of TQM implementation in China’s state-run enterprises has been far from satisfactory. Quantity, not quality, is still a main concern of many managers in China. “Shady” products (products of suspect quality) are still sold in the markets. The overall quality level achieved by the Chinese products is clearly below the quality standard set by developed countries. Why have China’s state-run enterprises failed to reap the benefits of implementing total quality management? The main objective of this thesis is to report research that examines the recent history of quality management in China, the national movement toward TQM, the benefits some enterprises have gained since implementing TQM, and the reasons of China’s failure to reap TQM’s full benefits. It is hoped that the experience of China’s TQM implementation can assist other countries in developing a better strategy and to avoid making similar costly mistakes. / Master of Science

A key element that enables a firm to achieve better performance is a fit between environment and firm strategy. A review of the literature on strategic management reveals that this relationship is moderated by other contextual variables, and that these contextual variables have not been systematically studied. The major focus of this study was to examine the impact of an important contextual variable, property ownership type, on the environment-strategy relationship and its performance implications. To guide this study theoretically, the literature on organizational environment, strategy, the environment-strategy relationship, and property ownership was reviewed, and theoretical implications discussed. It was hypothesized that (1) firms exhibiting same ownership type were likely to respond to perceived environment with similar strategy, and such responses varied across ownership types, (2) such strategic decisions would lead to better firm performance, and (3) in addition to the indirect impact of ownership on performance through the environment-strategy relationship, ownership type also had direct impact on performance. In order to test these hypotheses, constructs were operationalized in multidimensional manner. Perceived environment was operationalized in terms of three dimensions (resource scarcity, dynamism, and complexity), and strategy was operationalized in terms of five dimensions (futurity, proactiveness, analysis, defensiveness, and riskiness). Each of these dimensions were found to be theoretically significant in previous research. The research was set in the People’s Republic of China. Two hundred and two firms were surveyed, and these firms represented four ownership types (state enterprises, collective enterprises, joint venture enterprises, and private enterprises). Analysis of results suggest that ownership type is a theoretically important variable that has significant impact on variables that subject to managerial control. Firm ownership type moderated the magnitude (in two ownership types) and configuration (in another two ownership types) of environment-strategy relationship. This moderating effect of ownership led to significant performance implications. Moreover, firm ownership also had significant direct impact on firm performance. Findings from this study contribute insight into the environment-strategy relationship and hold promise for studying strategic management issues in former centrally planned economies undergoing transition toward market economies. / Ph. D.

The study sought to investigate the impact of systemic corruption in public enterprises in the Harare metropolitan area in Zimbabwe. This research study used a case and explanatory research designs as its major research approaches. The study was largely prompted by the high level of corruption in public enterprises as reported to the Anti - Corruption Commission and the media. In this study, fourteen (14) directors and twenty six (26) public enterprise officials were used as research subjects. Questionnaires, interviews and documentary reviews were used as research instruments to collect information on the impact of systemic corruption in public enterprises in the Harare metropolitan area. The study showed that low remuneration levels for both low and high level public enterprise officials, patronage appointment to higher level of management and the lack of political will to empower public enterprise officials on the evil of corruption were the causes of systemic corruption. Greed, the disintegration of work morality and ethics in the manner in which public affairs across public enterprises were being handled, were key causes of systemic corruption (see chapter 4 for details). The high level of secrecy in the management of public affairs, the lack of transparency, discipline, fairness, responsibility, equity and weak legal system on corruption were also noted to be corruption drivers. With regard the manifestation of corruption in public enterprises, it was established that systemic corruption occurred in the following forms: abuse of power, fraud, favouritism, embezzlement, weak control, extortion and ghosting.The study also showed that systemic corruption created problems such as administrative inefficiency and parasitism, a social atmosphere of tension and dishonesty within public enterprises (see chapter 4 for details). Corruption reallocated resources to the rich and powerful public officials who were aligned to the ruling party or those in authority. The study also noted that public enterprises officials were using technical complexity in procedures and regulations to conceal under-dealings.It was iv the findings of this study that rewarding for reasons not related to performance, dishonesty, over claiming expenses, falsification of reports/records and favouritism in public enterprises were high. The study also revealed that bid-rigging, shifting from core business, ghosting, and giving gratitude/gift to influence decision were some of the prevalent unethical activities in public enterprises. Against this backdrop, it is recommended that the level of remuneration in public enterprises for public officials is improved so that the minimum grounds for corruption motives are reduced. When salaries are too low, officers are obviously forced to indulge in unethical activities which in turn affect the general public directly or indirectly. It is critical that all public enterprise officials undergo training in the dimension of corruption and corporate governance as a means of empowerment. Corrupt individuals and business organisations in the Harare metropolitan area should not be employed or engaged in public related work and that public affairs must be managed in a transparent and open manner although confidentiality must be observed. The study also recommends that the appointment of public enterprise officials must be based on competence, relevant educational qualifications and experience. Another recommendation is that all cases of corruption must be treated as high level criminal cases which attract longer and deterrent court judgments (see chapter four for details). / Public Administration and Management / M.P.A.

by Leung Chui-wa. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1995. / Includes bibliographical references (leaves 72-75). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.v / ACKNOWLEDGEMENT --- p.vii / Chapters / Chapter I. --- introduction --- p.1 / Purpose of the project --- p.2 / Scope of the project --- p.2 / Methodology and literature review --- p.2 / Chapter II. --- BACKGROUND OF OFFSHORE LISTING OF CHINA ENTERPRISES --- p.5 / Reform of China state-owned enterprise --- p.5 / Development of China securities market --- p.8 / Capital needs of China --- p.11 / China's participation in global economy --- p.12 / China's resumption of Hong Kong's sovereignty --- p.13 / Chapter III --- OVERVIEW OF OFFSHORE LISTING OF CHINA ENTERPRISES.…… --- p.15 / China policies over offshore listings of China enterprises --- p.15 / Overall policy --- p.16 / Selection of State-owned enterprises for offshore listings --- p.17 / Selection of listing venue --- p.19 / Competition among stock exchanges worldwide --- p.20 / Australia --- p.21 / Canada --- p.22 / London --- p.22 / Singapore --- p.23 / Tokyo --- p.24 / Chapter IV. --- listings of china enterprises in hong kong and the united states --- p.26 / Current situation in Hong Kong and New York --- p.26 / China enterprises listed in Hong Kong and New York --- p.28 / Hong Kong --- p.28 / New York --- p.30 / Important issues for consideration --- p.32 / Regulatory regime --- p.32 / Offering mechanism --- p.35 / Market characteristics --- p.38 / Advantages and disadvantages of listing in Hong Kong and the US --- p.39 / Chapter V. --- trading performance of h shares and h/n share adrs … --- p.41 / Scope and methodology of the analysis --- p.41 / Findings --- p.42 / Discussion --- p.45 / Chapter VI. --- discussion and conclusion --- p.47 / Implications on SOEs and China economy --- p.47 / Implications on the Hong Kong stock market --- p.50 / appendix --- p.54 / bibliography --- p.72

by Xu Kai. / Thesis submitted in: December 1999. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2000. / Includes bibliographical references (leaves 134-135). / Abstracts in English and Chinese. / ABSTRACT (English) --- p.iii / ABSTRACT (Chinese) --- p.v / ACKNOWLEDEMENT --- p.vi / LIST OF FIGURES --- p.vii / LIST OF TABLES --- p.viii / Chapter Chapter I --- Introduction --- p.1 / Chapter 1. --- Prelude --- p.1 / Chapter 2. --- The Questions of Intra- and Inter-Organizational Dynamics --- p.5 / Chapter 3. --- Hybridization: A Historical Trajectory of Chinese Advertising Industry --- p.8 / Chapter 4. --- Competition and Professionalization: Two Challenges Facing State-Owned Ad Agencies --- p.14 / Chapter 5. --- The Basic Conceptual Framework and A Chapter Outline --- p.19 / Chapter Chapter II --- "Space, Spatial Partition and Situated Practices of A State-owned Ad Agency" --- p.22 / Chapter 1. --- "Strategic Practices, Locale, and Institutional Changes" --- p.22 / Chapter 2. --- Key Concepts and Their Linkages --- p.27 / Chapter Chapter III --- Methodology --- p.40 / Chapter 1. --- Case Study and Case Selection --- p.40 / Chapter 2. --- PrQcedure of Fieldwork --- p.42 / Chapter 3. --- Data and My Identities in Data Collection --- p.46 / Chapter 4. --- Validity of My Interpretation --- p.50 / Chapter Chapter IV --- Spatial Partitioning and Routine Practices at PAC --- p.53 / Chapter 1. --- Seaside Province and Phoenix City --- p.53 / Chapter 2. --- Physical Settings of PAC --- p.57 / Chapter 3. --- Professionalization of PAC in the Front Region --- p.68 / Chapter 4. --- The Transformation of Organizational Structure --- p.71 / Chapter 5. --- Routine and Non-routine Practices in the Back Region --- p.77 / Chapter 6. --- The Mixture of Two Systems in PAC --- p.93 / Chapter Chapter V --- Patrolling the Spatial Partition in Competition --- p.97 / Chapter 1. --- Bidding as A Critical Moment --- p.98 / Chapter 2. --- PAC's Preparation for Submitting A Bid --- p.99 / Chapter 3. --- PAC's Excellent Performances in Bidding --- p.110 / Chapter 4. --- Integration of the Two Paradigms of Organizational Management --- p.112 / Chapter Chapter VI --- Conclusion and Discussion: The Hybridization in A Transitional Society --- p.116 / Chapter 1. --- Organizational Dualism and Spatial Partitioning in PAC --- p.116 / Chapter 2. --- Social Practices in A Transitional Society: A Spatial Perspective --- p.121 / Chapter 3. --- Spatial Partitioning in Local Clients and International Ad Agencies --- p.125 / Chapter 4. --- Organizational Evolution in A Transitional Society --- p.128 / APPENDIX --- p.132 / BIBLIOGRAPHY --- p.134

by Chu Chui Kuen, Leung Chi Ming Ludwig. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1998. / Includes bibliographical references (leaves 138-141). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF FIGURES --- p.viii / LIST OF TABLES --- p.ix / INTRODUCTION --- p.1 / Background --- p.1 / Objectives --- p.2 / Methodology --- p.3 / Chapter I --- THE PROBLEM OF STATE OWNED ENTERPRISES (SOES) --- p.4 / THE SOE REFORM --- p.6 / "First Stage, 1983" --- p.6 / "Second Stage, 1988" --- p.6 / Contract Responsibility System --- p.6 / Shareholding System --- p.7 / Relationship between Contract Responsibility System and Shareholding System --- p.9 / "Third Stage, 1989" --- p.10 / Mr. Deng visited the Southern part of China --- p.10 / The 15th Party Congress --- p.12 / Chapter II --- STOCK MARKET BACKGROUND --- p.14 / Chapter III --- LISTING CONSIDERATIONS --- p.16 / Advantages of the Listing Status --- p.16 / Benefits to the PRC Government- A strong support for the SOE Reform in PRC --- p.16 / Sources of Capital for State Development --- p.16 / Reduce the dependence of the SOEs on Government subsidies --- p.16 / Reduce the risk of bankruptcy of the SOEs --- p.17 / Better preservation of the state-owned assets --- p.17 / A means to cash in the share-holding of the state --- p.17 / The Benefits to the SOEs --- p.17 / Capital for initial business development --- p.18 / Channel for continuous fund-raising --- p.18 / Pressure for profitability --- p.18 / A channel for merger and acquisition --- p.18 / Publicity and credibility --- p.18 / The Choice of Stock Market --- p.19 / Domestic Markets- SHSE and SZSE --- p.19 / The Problems of Domestic Market --- p.20 / Problems with A-shares listing --- p.20 / Problems with B-shares listing --- p.27 / Low market capitalization --- p.27 / Low liquidity --- p.27 / Quota system --- p.27 / Inconvenient and time-consuming transactions --- p.28 / Poor information access --- p.28 / Poor market infrastructure --- p.28 / Overseas Market - N-shares and H-shares --- p.28 / Large market capitalization and High liquidity --- p.29 / Multiple channels for investors --- p.29 / High degree of internationalization --- p.29 / Strict listing requirement and highly regulated Environment --- p.29 / Widen sources of financing --- p.30 / Tax and other benefit --- p.30 / Hong Kong Market (H-shares) --- p.31 / International funds --- p.31 / "High liquidity, high trading volume and efficiency" --- p.32 / An efficient and well-regulated Market --- p.32 / Common cultural background --- p.32 / Chapter IV --- THE PROCEDURE FOR H-SHARE LISTING --- p.33 / Chapter V --- RESTRUCTURING --- p.36 / Formation of Company Limited for Listing --- p.36 / Restructuring --- p.36 / The Objectives --- p.36 / Clarify ownership structure --- p.36 / Organize related business --- p.37 / Improve management structure --- p.37 / Improve financial management --- p.37 / International alignment --- p.37 / The Process --- p.38 / Forms of Restructuring --- p.38 / Type I. The Single Enterprise Structure --- p.39 / Case Example: Chengdu Telecommunications Cable Co. Ltd --- p.40 / Type II. The Transformation Structure --- p.41 / Type III. The Group Holding Structure --- p.42 / Case Example: Beijing North Star --- p.44 / Type IV. The Spin Off Structure --- p.46 / Case Example: Guangzhou Shipyard International --- p.47 / The Structure After Listing --- p.48 / Employee share --- p.49 / The Central Issues in Restructuring --- p.51 / The Role of Supervisory Government Department /the Parent Holding Company --- p.52 / Under Central Economic in planning --- p.52 / After the Restructuring --- p.52 / The Role of SOEs as the Social Welfare Agents --- p.53 / Roles of the Communist Party and Employee Organizations --- p.54 / in the listed company --- p.54 / Entangled relationship with potential conflicts of interest (power) --- p.54 / Chapter VI --- ISSUES AND DIFFICULTIS IN LISTING --- p.57 / Quota System --- p.57 / Answering the Questions of HKSE --- p.58 / Restructuring --- p.58 / Unclear Company Structure and Ownership --- p.58 / Dependence on Parent Company --- p.58 / Selection of Business To Avoid Competition with the Parent Company --- p.59 / Social Burden --- p.59 / Handling of Debt --- p.59 / Accounting System --- p.60 / Fixed Asset --- p.60 / Cost of Inventory --- p.60 / Bad Debt Allowances --- p.60 / Triangle Debt --- p.61 / Legal Matters --- p.62 / Pricing of IPO --- p.62 / Setting the IPO Price --- p.62 / Business Nature of the Enterprise --- p.63 / Chapter VII --- AGENCY COST --- p.64 / The Presence of Agency Cost --- p.64 / Traditional Agency Cost before listing as H share --- p.65 / The improvement of H share in supervisory --- p.68 / "Representative of the shareholders, the board of directors" --- p.68 / and the supervisors committee --- p.68 / Responsibility of the board of directors to monitor the enterprise --- p.72 / Incentive system --- p.72 / "The ""A"" - shares" --- p.73 / The non-monetary benefit --- p.74 / Monitoring the management --- p.75 / The Independent non-executive directors --- p.76 / The supervisory committee --- p.77 / Social burden --- p.77 / Other benefit --- p.77 / Connected transaction --- p.78 / Further control on the agent --- p.79 / Chapter VIII --- TRANSACTION COST --- p.83 / Financing Means --- p.83 / Bank Loan --- p.83 / Listing as H share --- p.86 / Cost of listing --- p.86 / Other Cost for Listing --- p.89 / First time listing fee and Listing maintenance fee --- p.89 / "Auditing fee, printing charge and distribution of annual report " --- p.90 / Public Relation --- p.90 / Other charges --- p.91 / Chapter IX --- UNCERTAINTY --- p.92 / Uncertainty reduced --- p.92 / Source of Financing - Equity Financing --- p.92 / More Efficient and Effective Management --- p.92 / Preservation and Growth of State Assets --- p.93 / Reputation --- p.93 / Liquidity of Stock --- p.94 / Interest of Investors --- p.94 / Higher Autonomy --- p.94 / Uncertainty Not Reduced --- p.95 / Reliance on Parent Company --- p.95 / Foreign Currency --- p.95 / Separation of Government from the Enterprise --- p.95 / Appointment of Managers --- p.96 / Political and Economic Risk --- p.96 / New Uncertainty Introduced --- p.96 / Greater Exposure to Speculations of the Market --- p.96 / The Social Burden's Return --- p.97 / Chapter X --- CASE : SHANGHAI PETROCHEMICAL COMPANY LIMITED --- p.98 / Introduction --- p.98 / Background --- p.99 / The Ownership --- p.99 / State Control and Subsidies --- p.99 / Raw Materials Supplies --- p.100 / Sales and Marketing --- p.101 / Import and Foreign Exchange Restriction --- p.101 / "The ""Little Society´ح " --- p.102 / Financing History --- p.102 / Indebtedness --- p.104 / The Economic Reform --- p.105 / The Fundamental Changes --- p.105 / Restructuring --- p.105 / Solutions to Traditional Burdens --- p.108 / Financing --- p.112 / Share-issuing --- p.112 / Capital Structure --- p.113 / Corporate Management --- p.114 / Financial Performances --- p.114 / Tax Benefit --- p.115 / Corporate Strategy --- p.115 / Market-orientation - away from the planned economy --- p.115 / Management --- p.116 / Market Sensitivity --- p.116 / Cost Control --- p.118 / Debt Management --- p.118 / Business Development --- p.120 / The People --- p.121 / The Management --- p.121 / Employees --- p.124 / Issues Open to Questions --- p.126 / The Government as the Majority Shareholder --- p.126 / Complications in Ownership Relationship-The Majority Shareholder --- p.126 / Jinshan and the Company --- p.126 / The Role Conflicts --- p.128 / CONCLUSIONS --- p.131 / APPENDIXI THE BACKGROUND OF THE BEIJING NORTH STAR COMPANY LIMITED --- p.136 / BIBLIOGRAPHY --- p.138

The study sought to investigate the impact of systemic corruption in public enterprises in the Harare metropolitan area in Zimbabwe. This research study used a case and explanatory research designs as its major research approaches. The study was largely prompted by the high level of corruption in public enterprises as reported to the Anti - Corruption Commission and the media. In this study, fourteen (14) directors and twenty six (26) public enterprise officials were used as research subjects. Questionnaires, interviews and documentary reviews were used as research instruments to collect information on the impact of systemic corruption in public enterprises in the Harare metropolitan area. The study showed that low remuneration levels for both low and high level public enterprise officials, patronage appointment to higher level of management and the lack of political will to empower public enterprise officials on the evil of corruption were the causes of systemic corruption. Greed, the disintegration of work morality and ethics in the manner in which public affairs across public enterprises were being handled, were key causes of systemic corruption (see chapter 4 for details). The high level of secrecy in the management of public affairs, the lack of transparency, discipline, fairness, responsibility, equity and weak legal system on corruption were also noted to be corruption drivers. With regard the manifestation of corruption in public enterprises, it was established that systemic corruption occurred in the following forms: abuse of power, fraud, favouritism, embezzlement, weak control, extortion and ghosting.The study also showed that systemic corruption created problems such as administrative inefficiency and parasitism, a social atmosphere of tension and dishonesty within public enterprises (see chapter 4 for details). Corruption reallocated resources to the rich and powerful public officials who were aligned to the ruling party or those in authority. The study also noted that public enterprises officials were using technical complexity in procedures and regulations to conceal under-dealings.It was iv the findings of this study that rewarding for reasons not related to performance, dishonesty, over claiming expenses, falsification of reports/records and favouritism in public enterprises were high. The study also revealed that bid-rigging, shifting from core business, ghosting, and giving gratitude/gift to influence decision were some of the prevalent unethical activities in public enterprises. Against this backdrop, it is recommended that the level of remuneration in public enterprises for public officials is improved so that the minimum grounds for corruption motives are reduced. When salaries are too low, officers are obviously forced to indulge in unethical activities which in turn affect the general public directly or indirectly. It is critical that all public enterprise officials undergo training in the dimension of corruption and corporate governance as a means of empowerment. Corrupt individuals and business organisations in the Harare metropolitan area should not be employed or engaged in public related work and that public affairs must be managed in a transparent and open manner although confidentiality must be observed. The study also recommends that the appointment of public enterprise officials must be based on competence, relevant educational qualifications and experience. Another recommendation is that all cases of corruption must be treated as high level criminal cases which attract longer and deterrent court judgments (see chapter four for details). / Public Administration and Management / M.P.A.

Thesis (PhD (School of Public Management and Planning ))—University of Stellenbosch, 2006. / Using an investigative approach the study starts by outlining the governance quandary that exists within the public sector, with observations made over the past decade by scholars and active role players in the governance arena both in the private sector and in the public sector. It continues to show a growing need for good governance in the public sector, especially in the developing economies of emerging democracies. It uses South Africa as an example in this regard, although the discussion can just as well be applied to other countries finding themselves in a similar situation. It places the governance debate in perspective and provides the background for the development of the Public Sector Integrated Financial Governance Framework (IFGF). A brief look is taken at the reasons for the growing focus on governance in general, governance in the private and public sector, the need for governance, the basic dynamics of governance, stakeholder relationships, the regulatory framework and the role of the judiciary. It then places this understanding of governance – from a financial perspective – within the South African context. Using the South African context the study discusses the need for an IFGF, the basic requirements for such an IFGF and then as a response proceeds to discuss the role of values and principles, functional application areas and governance-related activities in an IFGF. It develops a financial governance universe, which provides an overview of the various subsections within these aspects. From this basis the study proceeds to develop the IFGF by identifying specific principles and values applicable to South Africa, followed by a description of functional application areas consisting of leadership, management and control practices required as a minimum to ensure healthy public sector financial governance. It continues to develop governance-related activities based on existing frameworks recognised by public sector agencies globally and in some instance, designed for the private sector. The study proceeds to develop these areas to enable employees in the public sector to discharge their duties in a manner that can form the cornerstone in governance excellence. Having used a deductive approach during the first few chapters to develop the IFGF, the study then proceed using an inductive process to construct the conditions and the related activities required by the IFGF. It develops detailed information on specific activities that must be in place for the IFGF to be functional. These activities provide the “how” and are grouped together based on a recognised framework. Governance effectiveness depends on a situation where all areas are considered. Lastly the study focuses on the conclusions regarding the IFGF outcomes and therefore discusses the implementation of the IFGF and the impact on the accounting system, measuring governance and keeping the IFGF updated with developments internally and externally. The study shows the growing importance for developing countries and emerging economies to demonstrate healthy governance processes and practices. However, no consensus yet exists on the approach or methodology, particularly with regard to building national ownership of and political commitment to governance (Landell-Mills, 2003:369). Fortunately similar initiatives have been forthcoming from a number of countries and, although they are each focussed differently, they provide a base for developing a public sector IFGF for South Africa in particular, but can also be used as a guideline for other emerging democracies. Developing the governance universe facilitates the process of keeping track of a multitude of possibilities that are relevant in day-to-day management. The study determined the applicable criteria that an IFGF must satisfy to attract attention when funding is required from the donor community and to provide assurance to stakeholders with limited skills and knowledge that objectives are achieved effectively and efficiently in an ethical environment. The benefit of this framework is that it has passed the first scrutiny in South Africa namely that of the Provincial Treasury of the Provincial Government Western Cape (PGWC) public sector audit committees in the public sector (PGWC) and is currently being subjected to a four-year implementation process, starting with an awareness phase in all Departments of the PGWC. During this process the senior management of all the departments are being exposed to the principles contained in the IFGF and their practical observations and suggestions will be applied towards formulating an updated version of the Governance Framework of PGWC (Draft version 2.20e). This is significant, because it represents a healthy interaction between academic research and practical application, a process that is more often than not balanced, but appears to be in favour of either the one or the other.

published_or_final_version / Business Administration / Master / Master of Business Administration

An initial public offering (IPO) of equity provides a significant source of finance for Malaysian companies. Due to the existence of inequalities of wealth within Malaysian society as a result of its colonial heritage, the government has used IPOs to redistribute wealth among ethnic groups with the main objective being to increase the involvement of the Bumiputera (local indigenous people) in the corporate sector. This thesis consists of three inter-related studies on Malaysian IPOs that were listed on the Bursa Malaysia (formerly known as the Kuala Lumpur Stock Exchange) during the period 1990 to 2000. In particular, this study investigates post-IPO performance using alternative performance approaches (market-based and accounting-based) and the earnings management explanation for observed performance. The results from the first study indicate that Malaysian IPOs significantly overperform their benchmarks when performance is measured using both equally-weighted cumulative abnormal returns (CARs) and buy-and-hold abnormal returns (BHARs), except when matched companies are used as the benchmark. However, this significant overperformance disappears when returns are calculated on a value-weighted basis and also when Fama-French (1993) three-factor regressions are employed. Cross-sectional analysis reveals differential performance related to year of listing, issue proceeds and initial returns. The results from the second study using accounting-based measures provide strong evidence of declining operating performance in the IPO year and up to three years following an IPO. The year-to-year analysis reveals that the declining performance is greatest in the year immediately following the IPO. The deterioration in performance is more pronounced when accrual-based operating performance measures are used. The difference in the results using accrual-based and cash flow-based approaches suggests the existence of earnings manipulation by the IPO manager. The investigation of the possible sources of operating performance changes suggests that post-IPO declines in asset turnover parially explain the poorer operating performance. Univariate analysis of the association between family relationships, retained ownership and post-IPO operating performance produces little evidence to explain the deterioration in operating performance. However, underpricing partially explains the deterioration when the cash flow-based performance measure is used. The results from the third study reveal that Malaysian IPO companies employ income-increasing strategies around offerings, and that these strategies were more prevalent during the East Asian crisis period, especially for those companies that provided a profit guarantee. Analysis of the assöciation between the magnitude of earnings management in the IPO year and post-IPO performance provides some evidence to support the view that aggressive earnings management at the time of an IPO subsequently leads to poor stock market and operating performance. Overall, the evidence in this thesis supports the consensus that has emerged from the international debate on studies involving long horizon returns, which suggests that the magnitude of long run performance depends on the method employed to measure performance. The evidence derived from the accounting-based measure of operating performance supports the existing international evidence that operating performance declines following IPOs. The results also provide a degree of support for the earnings management explanation of post-IPO performance. These findings have implications for investors, security analysts, companies and accounting standard setters.