Open AccessThe Corporate Governance of Australian Listed Construction Companies
Author(s) -
Patrick Tait,
Martin Loosemore
Publication year - 2012
Publication title -
construction economics and building
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 20
ISSN - 2204-9029
DOI - 10.5130/ajceb.v9i2.3017
Subject(s) - corporate governance , accounting , nomination , business , remuneration , audit committee , attractiveness , independence (probability theory) , audit , stakeholder , finance , management , economics , political science , psychology , statistics , mathematics , psychoanalysis , law
This paper compares the compliance level of Australian StockExchange (ASX) listed construction and non-constructioncompanies with the ASX Corporate Governance Council (CGC)recommendations on sound corporate governance. It alsoexamines the difference in board characteristics between thetwo groups, paying particular attention to differences in boardindependence. It concludes that compared with the top 20 ASXlisted non-construction companies, listed construction companiesare less compliant overall particularly with regards to boardstructure, and have lower levels of independence both in terms ofCEO/Chairperson duality, the ratio of executive to non-executiveindependent directors and independent membership of nomination,remuneration and audit committees. These conclusions areimportant because sound corporate governance has beenassociated with higher levels of organisational resilience derivedfrom the reputational and fi nancial benefi ts of greater transparency,market value, investor attractiveness and organisationalperformance