David K. Round

As China approaches economic superpower status, its need to achieve considerably higher standards of corporate governance is becoming paramount. Despite impressive recent advances in its capital and stock exchange markets, the on-going overhang of state ownership in its former state-owned enterprises, together with an unwieldy and ineffective dual board governance system, has left China facing major corporate governance problems that will deter the private investment necessary for its continued growth. This paper illustrates these problems, and suggests possible reforms that will provide the foundation for the efficient further development of China's capital markets that is needed to help China become a major economic superpower.

In previous work, little evidence of share‐price response to Australian price‐fixing investigations was found. However, these investigations often involve a small part of a company’s operations and antitrust penalties have tended to be relatively small; in fact, some weak support was found for a greater response by investors when penalties were expected to be more significant. Mergers, on the other hand, clearly represent a much more significant event, and we would anticipate a clearer share‐price response both to announced mergers and to associated antitrust challenges. While such studies have been done in other countries (primarily for the US), we know of no prior research of this sort for Australia. In this paper we focus on a sample of about 50 mergers and acquisitions involving Australian companies from 1996 to 2003, examining the impact on share prices of the announcement of these mergers both on the firms involved and on rival firms. For those which were challenged by the Australian antitrust enforcers, we also consider the impact of the announcement of such a challenge.

Although there has been much speculation about the possible links between gambling and crime rates, relevant quantitative evidence has been practically non-existent in Australia to date. This paper reports the results of research that utilised a model designed to investigate the potential relationship between electronic gaming machine expenditures and property (income-generating) crime rates reported to police in local areas in South Australia in 2002–2003. The research found that the higher the expenditures on gaming machines in a particular local area per adult, the higher the income-generating crime rate in that area. No such relationship was found between gaming machine expenditure and non-income-generating crime rates. However, further research is required before any policy-relevant conclusions can be drawn.