The Corporate Governance of Australian Listed Construction Companies

Patrick Tait; Martin Loosemore

doi:10.5130/AJCEB.v9i2.3017

PDF

Published: Nov 23, 2012

DOI: https://doi.org/10.5130/AJCEB.v9i2.3017

Patrick Tait

University of New South Wales

Martin Loosemore

University of New South Wales

Abstract

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.

How to Cite

Tait, P., & Loosemore, M. (2012). The Corporate Governance of Australian Listed Construction Companies. Construction Economics and Building, 9(2), 7-16. https://doi.org/10.5130/AJCEB.v9i2.3017

Issue

Vol 9 No 2 (2009): AJCEB

Section

Articles (Peer reviewed)

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright Notice

Authors who publish with this journal agree to the following terms:

a) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share and adapt the work with an acknowledgement of the work's authorship and initial publication in this journal.

b) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

c) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Open Access Citation Advantage Service). Where authors include such a work in an institutional repository or on their website (ie. a copy of a work which has been published in a UTS ePRESS journal, or a pre-print or post-print version of that work), we request that they include a statement that acknowledges the UTS ePRESS publication including the name of the journal, the volume number and a web-link to the journal item.

d) Authors should be aware that the Creative Commons Attribution (CC-BY) License permits readers to share (copy and redistribute the work in any medium or format) and adapt (remix, transform, and build upon the work) for any purpose, even commercially, provided they also give appropriate credit to the work, provide a link to the license, and indicate if changes were made. They may do these things in any reasonable manner, but not in any way that suggests you or your publisher endorses their use.

Author Biography

Patrick Tait, University of New South Wales

Senior Lecturer

Article Sidebar

Main Article Content

Abstract

Article Details

Patrick Tait, University of New South Wales