Colette Southam

• Jiang, G. F.; Reuer, J. J.; Southam, C.; Beamish, P. W., 2022, "The Impact of Initial Public Offerings on SMEs’ Foreign Investment Decisions", Journal of International Business Studies, July 53(5): 879 - 901.
  Abstract: This study aims to bridge the research on the internationalization of small and medium-sized enterprises (SMEs) with that on initial public offerings (IPOs). It investigates how IPOs affect SMEs’ foreign investment decisions as they internationalize. We argue that IPOs enable SMEs to engage in a period of accelerated foreign expansion, resulting in a wave-like pattern as suggested by Håkanson and Kappen’s (2017) ‘Casino model’ of internationalization. We also propose that there will be a post-IPO shift in SMEs entering less familiar locations and towards taking higher ownership stakes in new subsidiaries. We use a difference-in-differences design combined with coarsened exact matching to isolate the effects of IPOs. Our analysis of overseas investments by a matched sample of newly listed Japanese manufacturing SMEs and their private counterparts provides strong evidence that SMEs accelerate the pace of establishing new foreign subsidiaries after going public. The results also reveal nuanced changes in the location and ownership patterns in the post-IPO period. This study identifies the IPO as a significant antecedent to SME foreign expansion and offers a new explanation for intertemporal variance in the pace, direction, and commitment of the SME internationalization process.

  Link(s) to publication:

  https://www.proquest.com/docview/2680447760?parentSessionId=mVBTNEm%2BV0ZTwU885T7Qhnw%2BVZjkU2zuRM3rBfy7mtI%3D&pq-origsite=primo&accountid=15115

  http://dx.doi.org/10.1057/s41267-022-00500-2

• Aspinall, T.; Gepp, A.; Harris, G.; Kelly, S.; Southam, C.; Vanstone, B., 2021, "Estimation of a term structure model of carbon prices through state space methods: The European Union emissions trading scheme", Accounting and Finance, June 61(2): 3797 - 3819.
  Abstract: This study models the term structure of the European Union Emissions Trading Scheme. The one-factor geometric Brownian motion model of Abadie and Chamorro is replicated using the data now available and then compared with a two-factor short-term/long-term (STLT) stochastic model. The STLT model has the better statistical fit to the term structure of European Union Allowances (EUAs). A real options analysis of the value of the option to retrofit carbon capture and storage shows that forecasting phase four EUAs with the STLT model almost triples the estimated project net present value and lowers investment trigger prices by approximately 24 percent.

  Link(s) to publication:

  http://dx.doi.org/10.1111/acfi.12708

• Aspinall, T. W.; Gepp, A.; Harris, G.; Kelly, S.; Southam, C.; Vanstone, B., 2021, "Estimation of a term structure model of carbon prices through state spaces methods: a pitch", Accounting Research Journal, February 34(1): 106 - 112.
  Abstract: Purpose: The pitching research template (PRT) is designed to help pitchers identify the core elements that form the framework of any research project. This paper aims to provide a brief commentary on an application of the PRT to pitch an environmental finance research topic with a personal reflection on the pitch exercise discussed. Design/methodology/approach: This paper applies the PRT developed by Faff (2015, 2019) to a research project on estimating the strength of carbon pricing signals under the European Union Emissions Trading Scheme. Findings: The PRT is found to be a valuable tool to refine broad ideas into impactful and novel research contributions. The PRT is recommended for use by all academics regardless of field and particularly PhD students to structure and communicate their research ideas. The PRT is found to be particularly well suited to pitch replication studies, as it effectively summarizes both the “idea” and proposed “twist” of a replication study. Originality/value: This letter is a reflection on a research teams experience with applying the PRT to pitch a replication study at the 2020 Accounting and Finance Association of Australia and New Zealand event. This event focused on replicable research and was a unique opportunity for research teams to pitch their replication research ideas.

  Link(s) to publication:

  http://dx.doi.org/10.1108/ARJ-08-2020-0278

• Wei, L-Q.; Lehmberg, D.; Gupta, V.; Young, M. N.; Southam, C.; Liang, J., 2020, "From the New Editorial Team: Publishing Quality Teaching Cases", Asian Case Research Journal, June 24(01): IV - XVII.
  Abstract: On behalf of all the Board Members of the Asian Academy of Management (AAoM), we are pleased to announce that the Asian Case Research Journal (ACRJ), a teaching case-focused journal with 20-year history, is now housed by AAoM. We are especially grateful to Prof. Lau Geok Theng, the previous Editor-in-Chief, and Ms. Koh Siew Geok, the Editorial Assis-tant of ACRJ which was originally housed by the National University of Singapore. It is their continuing efforts that have laid the ground for steady progress of the journal, as we move into the next decade. Increasing global competition, rapid changes in the political and economic environments and unforeseen events such as the COVID-19 pandemic have created unprecedented challenges for organizations. Firms have to respond quickly with substantial shifts in strategy, structures and other managerial aspects. For example, digitalization and the emergence of entrepreneurship are threats for some established firms, yet opportunities for some start-ups. All the changes call for the attention of business scholars to document these developments through their research as well as teaching cases. We hope ACRJ can remain a platform for business scholars to share their insights and wisdom on business practice successes and failures.

  Link(s) to publication:

  http://dx.doi.org/10.1142/s0218927520010014

• Dwyer, B.; Duncan, K.; Southam, C., 2020, "Small-scale private equity: demand versus supply", Accounting Research Journal, April 33(2): 363 - 380.
  Abstract: Purpose: This paper aims to bridge the gap between theoretical dissertations on the demand and supply for equity by Australian small and medium-sized enterprises (SMEs) and the reality of the capital raising markets. Design/methodology/approach: The mixed-methods approach includes questions integrated into a survey of 26,000 SMEs paired with semi-structured interviews with the CEOs or Chairs of the 15 Australian small-scale private equity (SSPE) firms. Findings: Contrary to capital structure theory expectations, 46 per cent of Australian SMEs are interested in equity funding, despite a stated ability to acquire additional debt. The authors reveal a mismatch between supply and demand for SSPE with few SMEs able to meet private equity (PE) firms’ stringent investment criteria. Research limitations/implications: The population of Australian SSPE firms is small and interviewee responses are qualitative and are not easily replicated. Practical implications: To improve SSPE market liquidity, SMEs must overcome severe information asymmetry to demonstrate their quality and reduce the cost of due diligence for PE firms. One relatively easy step is for SMEs to voluntarily adopt auditable financial controls on SMEs similar to publicly traded firms. Originality/value: Few studies focus on small firm equity, which is essential to economic growth and innovation. The authors use a large data set of Australian SMEs and unique informationally rich interview data on the population of Australian firms in SSPE, an industry known for its lack of transparency.

  Link(s) to publication:

  http://dx.doi.org/10.1108/ARJ-05-2019-0096

• Siegrist, M.; Bowman, G.; Mervine, E.; Southam, C., 2020, "Embedding environment and sustainability into corporate financial decision‐making", Accounting and Finance, March 60(1): 129 - 147.
  Abstract: The business case for sustainability can be built upon: (i) cost reduction from efficient resource utilisation, (ii) revenue enhancement, (iii) risk management, and (iv) intangible assets. However, executives often adopt a short‐term perspective owing to executive compensation, investor pressure, and decision‐making criteria tied to fixed financial reporting systems. We propose an integrated conceptual framework, which highlights how firms could embed environment and sustainability into their long‐term financial decision‐making framework. To give this goal structure, the firm could adopt: (i) longer‐term executive compensation plans, (ii) longer‐term financial reporting, and (iii) flexible financial decision‐making models which embed intangibles.

  Link(s) to publication:

  http://dx.doi.org/10.1111/acfi.12533

• Mark, T.; Southam, C.; Bulla, J.; Meza, S., 2016, "Cross-category indulgence: Why do some premium brands grow during recession?", Journal of Brand Management, January 23(5): 114 - 129.
  Abstract: Reports about luxury categories and premium brands growing during recession are multiple. This marketplace behavior, however, is counterintuitive to what traditional economics would predict. The authors propose and test a theory to explain why demand for premium brands may grow despite a contraction in the economy. They define cross-category indulgence as the strategy of moving across categories (in contrast to moving within category) to satisfy the desire to indulge while dealing with budgetary constraints. The authors test empirically for cross-category indulgence using a unique dataset that compares dining in with dining out. They find support for cross-category indulgence and rule out other possible explanations for the increase in demand for a premium brand. The authors discuss that premium brand managers that understand this marketplace behavior and create opportunities for their brand to be the leader in their category may alleviate a decrease in demand for their brand during tough economic times.

  Link(s) to publication:

  http://dx.doi.org/10.1057/s41262-016-0004-6

• Power, I. M.; McCutcheon, J.; Harrison, A. L.; Wilson, S.; Dipple, G. M.; Kelly, S.; Southam, C.; Southam, G., 2014, "Strategizing carbon-neutral mines: A case for pilot projects", Minerals, May 4(2): 399 - 436.
  Abstract: Ultramafic and mafic mine tailings are a valuable feedstock for carbon mineralization that should be used to offset carbon emissions generated by the mining industry. Although passive carbonation is occurring at the abandoned Clinton Creek asbestos mine, and the active Diavik diamond and Mount Keith nickel mines, there remains untapped potential for sequestering CO2 within these mine wastes. There is the potential to accelerate carbonation to create economically viable, large-scale CO2 fixation technologies that can operate at near-surface temperature and atmospheric pressure. We review several relevant acceleration strategies including: bioleaching of magnesium silicates; increasing the supply of CO2 via heterotrophic oxidation of waste organics; and biologically induced carbonate precipitation, as well as enhancing passive carbonation through tailings management practices and use of CO2 point sources. Scenarios for pilot scale projects are proposed with the aim of moving towards carbon-neutral mines. A financial incentive is necessary to encourage the development of these strategies. We recommend the use of a dynamic real options pricing approach, instead of traditional discounted cash-flow approaches, because it reflects the inherent value in managerial flexibility to adapt and capitalize on favorable future opportunities in the highly volatile carbon market.

  Link(s) to publication:

  http://dx.doi.org/10.3390/min4020399

• Chung, C. C.; Lee, S. H.; Beamish, P. W.; Southam, C.; Nam, D., 2013, "Pitting real options theory against risk diversification theory: International diversification and joint ownership control in economic crisis", Journal of World Business, January 48(1): 122 - 136.
  Abstract: This study examines how MNE divestment decisions differ according to real options versus risk diversification perspectives. We develop competing hypotheses in relation to international diversification and joint ownership control. Empirical results give consistent support to the real options perspective. We find that large MNEs with greater international diversification are less likely to divest their subsidiaries during times of economic crisis. The negative effect of joint ownership control is however manifested in both crisis-stricken and non-crisis country subsidiaries as well as in their interaction effect.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jwb.2012.06.013

• Boeh, K.; Southam, C., 2011, "Impact of initial public offering coalition on deal completion", Venture Capital, October 13(4): 313 - 336.
  Abstract: Measures of underwriter and top management team prestige have been shown to signal the underlying quality of a company in an initial public offering (IPO). We extend these measures to include the entire coalition (i.e., managers, board, venture capitalists (VCs), underwriters, auditors, and both sets of lawyers) and surprisingly find VCs to have the highest explanatory power in predicting IPO outcomes (completion or withdrawal). Companies with deep management and a separation of the CEO/chair role are more likely to hire prestigious underwriters and successfully complete IPOs. Although companies with prestigious VCs are more likely to have prestigious underwriters, companies with VC-backing are more likely to withdraw the offering, likely to take advantage of better market opportunities. Companies with prestigious underwriters are more likely to have successful IPOs, although we show that the capabilities of underwriters and other intermediaries are more likely driven by activity level (i.e., market share), rather than prestige in affecting IPO outcome. Using an agency framework, we test how signals of monitoring, information asymmetry, bonding, and incentive alignment affect IPO outcomes and show that signals of lower agency costs are associated with a greater likelihood of IPO completion. Finally, because many of these measures are shown to endogenously affect IPO completion, a selection bias may exist in previous IPO studies as up to 70% of IPOs filed annually are not completed. © 2011 Copyright Taylor and Francis Group, LLC.

  Link(s) to publication:

  http://dx.doi.org/10.1080/13691066.2011.642148

• Southam, C.; Sapp, S., 2010, "Compensation Across Executive Labor Markets: What Can We Learn from Cross-Listed Firms?", Journal of International Business Studies, February 41(1): 70 - 87.
  Abstract: There is wide consensus that chief executive officers (CEOs) of US firms earn significantly more than their Canadian counterparts. Using a matched sample, we find that the majority of this difference is due to US CEOs earning 50% more than CEOs of Canadian non-cross-listed firms. We find no such US premium'' for Canadian cross-listed firms, because the use of options allows the cross-listed firms to keep pace with their neighbors to the south. While firms that list only in Canada compete in the labor market defined by their national boundary, cross-listed firms appear to be competing directly with their US counterparts for executive talent. In investigating alternative explanations for the elimination of the compensation differential for Canadian cross-listed firms, we find evidence consistent with both the bonding and the rent extraction hypotheses.
• Gyles, C. L.; De Grandis, S. A.; Southam, C.; Brunton, J. L., 1988, "Cloning and Nucleotide Sequencing of the Genes Determining Verocytotoxin Production in Porcien Edema Disease Isolates of E. coli", Microbial Pathogenesis, December 5(6): 419 - 426.
  Abstract: The structural genes determining the edema disease principle were cloned from the total cellular DNA of iEscherichia colii strain 412 (O139: K82) isolated from a case of porcine edema disease. An assay for cytotoxicity in Vero cells was used to detect the edema disease principle. A 7.5 kb iEcoiRI-iSailI fragment specifying cytotoxin production was subcloned in pUC18. Sequences which specified production of cytotoxin were localized to a 0.9 kb region by transposon Tn5 mutagenesis. A 2.4 kb iEcoiRI-iBgilII fragment encompassing this region was subcloned into pUC18. Using nucleotide sequence analysis, two open reading frames separated by 12 bp were identified. They encoded proteins of 319 (A subunit) and 87 (B subunit) amino acids which both had N-terminal sequences typical of iE. colii signal peptides. Comparison of these with the published sequence for the Shiga-like toxin II (SLT-II) showed 91% overall nucleotide sequence similarity. The nucleotide sequence similarity extended to 200 base pairs upstream of the putative A subunit translational start site suggesting a common regulatory mechanism. The deduced amino acid sequences of the processed A and B subunits had 94% and 84% similarity, respectively. These findings confirm the close genetic relationship between SLT-II and edema disease principle.

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