U.S. SEC says audit firms hinder accounting fraud probes at U.S.-listed Chinese firms

U.S. SEC says audit firms hinder accounting fraud probes

Mon, Jul 8 2013

By Sarah N. Lynch

WASHINGTON, July 8 (Reuters) – U.S. federal regulators tried to persuade a judge on Monday to sanction the Chinese arms of the world’s top five accounting firms, saying their refusal to hand over audit work papers has hindered investigations into fraud at U.S.-listed Chinese firms.

In testimony during a hearing at the U.S. Securities and Exchange Commission, an SEC official alleged that Deloitte Touche Tohmatsu LLP’s failure to turn over audit records has stalled a three-year-old probe into financial fraud at a large solar power company. Read more of this post

Has China President Xi’s graft crackdown run out of steam? Analysts say candid coverage of ‘consultations’ may indicate leadership lacks will to take action

Has Xi’s graft crackdown run out of steam?

Tuesday, 09 July, 2013, 12:00am

Cary Huang cary.huang@scmp.com

Analysts say candid coverage of ‘consultations’ may indicate leadership lacks will to take action

President Xi Jinping has consulted retired party leaders on his anti-corruption and austerity campaign, the Communist Party’s official newspaper reported on Monday – a move some analysts believe is a sign that the current leadership lacks the confidence or political will to ring the changes of real political reform.

People’s Daily yesterday gave a rare glimpse into behind-the-scenes details of the intensive politburo meetings on June 22-25. The meetings assessed the anti-corruption and frugality measures that Xi launched earlier this year. Read more of this post

Chinese Cash Squeeze Causes Auto Dealer Panic

Chinese Cash Squeeze Causes Auto Dealer Panic, Group Says

By Bloomberg News  Jul 9, 2013

China’s money-market squeeze, which sent interbank borrowing costs soaring last month, may prompt auto dealers to cut vehicle orders and slow expansion plans to conserve cash, according to an industry group.

“The cash crunch has led to psychological panic among dealers over access to financing,” Luo Lei, deputy secretary-general of the China Automobile Dealers Association, said in a telephone interview from Beijing today. “So far, it hasn’t caused any real damage to the industry, but if the cash crunch continues, the impact will spread to auto dealers.” Read more of this post

Canada Loses Luster as Destination for Corrupt Chinese Cash; Canada became the first country to reach a deal with China to share forfeited assets in an effort to target international organized crime

July 6, 2013, 5:20 AM

Canada Loses Luster as Destination for Corrupt Chinese Cash

Chinese fugitives who touched down in Vancouver or Toronto with suitcases of illicit cash might find it harder to keep their fortunes.

Canada became the first country to reach a deal with China to share forfeited assets in an effort to target international organized crime, according to the official Xinhua News Agency. Once the pact is signed, one country will be able to get money back if a fugitive transfers illegal assets to the other, according to Xinhua.

“Canada is not, and will not be seen as, a safe haven for the proceeds of crime,” said Canadian Foreign Affairs Minister John Baird in a news release about the pact. Read more of this post

The world according to investors

world-investors

How To Say ‘Beer’ In Every Language While You’re Traveling Across Europe [MAP]

eurobeer-map

Widespread delisting of Chinese companies has investors rethinking due diligence and looking harder for subtle clues that something is amiss

Due diligence in China: Art, science, and self-defense

Widespread delisting of Chinese companies has investors rethinking due diligence and looking harder for subtle clues that something is amiss.

July 2013 | byDavid Cogman

Image_Web_ChinaDiligence_ex

It’s not often that the credibility of an entire class of companies is called into question at once. The aggregate market capitalization of US-listed Chinese companies1 fell in 2011 and 2012 by 72 percent—and around one in five was delisted2 —even as the Nasdaq rose by 12 percent (exhibit). Nor is delisting of Chinese companies purely a US phenomenon: since 2008, around one in ten Chinese companies listed in Singapore has also been delisted or suspended. In recent years, the aggregate market capitalization of US-listed Chinese companies has fallen dramatically. Read more of this post

Why can’t they all just get along? Stress-fuelled conflict in the workplace is increasing and ultimately warring staff are the problem of the business

Why can’t they all just get along?

July 3, 2013

Belinda Williams

Stress-fuelled conflict in the workplace is increasing and ultimately warring staff are the problem of the business.

There’s nothing more frustrating for small business owners with massive financial responsibilities than to be dragged into the perceived petty squabbles of feuding staff. But it’s actually that unsympathetic attitude that can prolong the standoff.

A common cause of workplace tiffs is unmanaged stress, psychologist Rebecca Henshall says. Read more of this post

Singapore’s education system should not be Finland; Education reform in Singapore is not just about planning and logic. It needs to address a societal culture; Singapore has to watch out that the competitiveness which contributes to achievement does not become destructive of people’s ability to circulate knowledge, develop their whole character and experience happiness

Singapore should not be Finland

As the national conversation continues over the future shape of Singapore’s education system, the example of Finland has cropped up now and again.

5 HOURS 19 MIN AGO

As the national conversation continues over the future shape of Singapore’s education system, the example of Finland has cropped up now and again. Should we emulate the Finnish system where tuition is unheard of, students take a compulsory national examination only at age 18-19, and teachers are given tremendous autonomy? After all, Finnish students have consistently scored among the top in the world on standardised tests — so could this be a lower-stress path to success? TODAY’s reports on Finland’s model, published in March, inspired its own “conversation” between two education experts — the National Institute of Education’s (NIE) Associate Professor Ng Pak Tee and Boston College’s Professor Andy Hargreaves. Both have worked together closely on high-performing education systems since 2011, when Prof Hargreaves visited NIE as CJ Koh Professor and Assoc Prof Ng visited Boston College as Visiting Scholar. Read more of this post

Nostalgia, long considered a disorder, is now recognized to counteract loneliness, boredom and anxiety — making life seem more meaningful and death less frightening

July 8, 2013

What Is Nostalgia Good For? Quite a Bit, Research Shows

By JOHN TIERNEY

SOUTHAMPTON, England — Not long after moving to the University of Southampton, Constantine Sedikides had lunch with a colleague in the psychology department and described some unusual symptoms he’d been feeling. A few times a week, he was suddenly hit with nostalgia for his previous home at the University of North Carolina: memories of old friends, Tar Heel basketball games, fried okra, the sweet smells of autumn in Chapel Hill. His colleague, a clinical psychologist, made an immediate diagnosis. He must be depressed. Why else live in the past? Nostalgia had been considered a disorder ever since the term was coined by a 17th-century Swiss physician who attributed soldiers’ mental and physical maladies to their longing to return home — nostos in Greek, and the accompanying pain, algosBut Dr. Sedikides didn’t want to return to any home — not to Chapel Hill, not to his native Greece — and he insisted to his lunch companion that he wasn’t in pain.. Read more of this post

New Therapies to Help Stroke Survivors Recover Language Years After Injury

July 8, 2013, 7:00 p.m. ET

New Therapies to Help Stroke Survivors Recover Language Years After Injury

Nearly 20% of stroke victims are under 55, compared with fewer than 13% in the early 1990s, according to a 2012 study

LAURA LANDRO

An estimated two million Americans who have suffered a stroke or other brain injury have the condition known as aphasia. Evidence continues to emerge showing that the brain is able to recover even many years following injury. Laura Landro joins Lunch Break to discuss. Photo: Rehabilitation Institute of Chicago. Eunice Bustillo faced a long recovery following a stroke at age 40. After a week in the hospital and a month at a rehabilitation center, she continued to have trouble with vision and motor functions. Even more difficult for Ms. Bustillo, the owner of a consulting business and the mother of a son who was 3 at the time, was overcoming aphasia, a language disorder that is a common aftereffect of stroke. Aphasia impairs the ability to process and understand language, including speaking, reading and writing, while leaving intelligence unaffected. Recovery can require intensive therapy including hours of practice to repair and reorganize damaged language functions in the brain. Read more of this post

Koreans Find Breaking Up With Chaebol Hard to Do

Koreans Find Breaking Up With Chaebol Hard to Do

Everyone loves a good perp walk. For South Koreans, Lee Jay Hyun’s made great theater.

The sight of Lee — chairman of the conglomerate CJ Group and grandson of Samsung’s legendary founder — being led away by police last week on embezzlement and tax-evasion charges has been portrayed as an early victory for President Park Geun Hye’s five-month-old government. The arrest supposedly shows that Park is serious about reining in the chaebol — family-owned behemoths that continue to dominate Asia’s fourth-biggest economy and hog much of the nation’s wealth.

The reality, of course, is far more complicated. Past attempts to bring tycoons to heel have also been greeted with great fanfare, only to fizzle out. In April 2008, Lee’s uncle, Samsung Chairman Lee Kun Hee, resigned after being charged with criminal tax evasion. His ignominious fall was heralded as the end of the chaebol — until then-President Lee Myung Bak pardoned him eight months later, allowing Korea’s richest man to return to work. Read more of this post

Stronger Than Steel: The Amazing Spider Web; Jap startup has produced an artificial spider thread that it claims is equal to steel in tensile strength yet as flexible as rubber

July 8, 2013, 8:08 p.m. ET

Can Spider Web Be Replicated? A Japanese Startup Thinks So.

Recreating the Silk of an Arachnid Could Produce the Most Durable of Fabrics

Spiber says its thread is spun into fabric that equals steel in tensile strength yet is flexible like rubber

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Spiber bioengineers bacteria with recombinant DNA to produce spider-thread

MAYUMI NEGISHI

Centuries before Spider-Man, people sought to harvest spider silk, a fiber that is so uniquely powerful it not only catches prey but could serve as a highly durable fabric. Pulling thread from an arachnid, however, is painstakingly slow. And putting too many spiders in close proximity makes them territorial and inclined to kill one another. Now, a Japanese startup called Spiber Inc. said it has produced an artificial spider thread that it claims is equal to steel in tensile strength yet as flexible as rubber. The company hopes to spin enough of the thread for mass production within two years, potentially opening the door to creating lighter but stronger auto parts, surgical materials and bulletproof vests. “Spider thread is amazing material—it’s so light, yet so strong and flexible. It can absorb so much energy,” said Spiber President Kazuhide Sekiyama, who came up with the idea to replicate spider thread in college during an all-night drinking session talking about “bug technology.” Read more of this post

Is this Aussie app the next iTunes sensation? Simone Eyles and Mariusz Stankiewicz are this week celebrating the 150,000th coffee sold through their mobile coffee ordering app 365cups

Is this Aussie app the next iTunes sensation?

July 5, 2013

Claire Dunn

Order a coffee from your phone and it’s ready by the time you get to the cafe. Genius.

365cups is revolutionising the takeaway coffee market.

Self-made “app-reneurs” from the bush Simone Eyles and Mariusz Stankiewicz are this week celebrating the 150,000th coffee sold through their mobile coffee ordering app 365cups. The idea, born over a cup of coffee between the former flatmates in their home town of Wagga Wagga, and launched in January 2011, is now generating more than $1.3 million in revenue for their cafe clients, with more than 1000 orders a day across Australia and New Zealand and rising. By downloading the free app for iPhone or Android smartphones, customers can place an order with their favourite (or nearest) cafe linked to the system, nominate a collection time, pay either on arrival or through credit topped up on the app, and have their order ready to go when they arrive. A monthly subscription fee paid by cafes entitles them to a virtual store where they can upload their menu, and receive customers orders via iPad or a custom-made printer. A recent initiative means cafes can directly email their app customers with loyalty programs and menu specials. Read more of this post

Lam Eyes Next $1B Opportunity; The man who helped establish the plasma etcher in the 1980s hopes to ride e-beam to the rescue of a chip-making process running out of gas

Lam Eyes Next $1B Opportunity

Rick Merritt
7/8/2013 12:30 PM EDT

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SANTA CLARA, Calif. — At 70, David K. Lam is as excited as ever about the future of the semiconductor industry and what he says is his billion-dollar opportunity to nudge it forward for the second time. Thirty years ago, Lam helped establish the plasma etcher that became a workhorse tool for cutting fine lines in chips. By fielding a reliable, automated version of the tool, the company that bore his name became the first founded by an Asian American to go public on NASDAQ. Today he has a new venture he thinks could give the industry a lift at a time when it’s getting hard to keep making chips faster, smaller, and cheaper. This time Lam is taking what many have seen as a rival technology — direct electron-beam lithography — and bringing it into the conventional process flow. “In the old days most new semiconductor technologies were disruptive now they have to be complementary — you have to find ways to use what you have,” said Lam. Read more of this post

LVMH Acquires Cashmere Clothier Loro Piana for $2.6 Billion

LVMH Acquires Cashmere Clothier Loro Piana for $2.6 Billion

LVMH Moet Hennessy Louis Vuitton SA (MC) agreed to pay 2 billion euros ($2.57 billion) for 80 percent of Italian cashmere clothier Loro Piana SpA, adding a high-quality textile producer to its burgeoning portfolio of luxury brands.

The transaction, which is subject to approval by competition authorities, values Quarona, Italy-based Loro Piana at 2.7 billion euros, LVMH said yesterday in a statement after the market closed. The family owners of the maker of $1,385 cashmere sweaters will retain a 20 percent stake in the business, Paris-based LVMH said.

“Loro Piana is quintessentially high-end while a lot of LVMH is mass luxury,” said Luca Solca, an analyst at Exane BNP Paribas in London, adding that he expects the market to favor the deal. With the purchase, “LVMH can acquire a trophy asset” and get growth opportunities for the future without stretching its balance sheet. Read more of this post

Brocade chair Dave House tells how he got IBM to sign up for the Intel Inside program and management lessons he adapted from Andy Grove

Tearing Up a $125M Check to Big Blue

Rick Merritt
7/8/2013 12:20 PM EDT

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House shows a plaque commemorating the Intel Inside program.

SARATOGA, Calif. – Dave House still recalls the day he wrote IBM executives a $125 million check then tore it up in front of their eyes. It was perhaps one of the boldest moves in his 13 years as a top executive at Intel, a company known for its boldness. In this second part of an interview at his home in the hills above Silicon Valley, House recounts his role in the “Intel Inside” campaign that put the x86 giant at odds with its OEM customers. Now the chairman of Brocade Communications, House also shares management lessons learned working under Intel’s Andy Grove. Dennis Carter developed the idea of branding Intel chips direct to consumers. House recalled the day Carter showed him an ad from Japan using an early version of the logo. “I said, ‘that’s Jap-lish,'” House said. “I pulled out stationary that said ‘Intel, the computer inside,’ I wrote ‘Intel Inside’ and put a circle around it and said that’s better,” he said. Read more of this post

Food companies are experimenting more and more with exotic flavors and ethnic staples to appeal to a rising number of Latino and Asian immigrants

July 8, 2013

American Tastes Branch Out, and Food Makers Follow

By STEPHANIE STROM

FOOD-A-articleLarge

Jarritos, the Mexican fruit-flavored soda in brilliant hues rarely found in nature, has entered the mainstream in California and will soon be in conventional groceries elsewhere.

NEW BERN, N.C. — If chicken producers could breed a bird with three legs, they would. These days, they can hardly keep up with the demand for thighs and other pieces of dark meat that had once been among the least desirable parts of a chicken. “Demographics are changing,” Bill Lovette, chief executive of Pilgrim’s Pride, a division of JBS S.A., told a group at the recent Chicken Media Summit here. “There is a growing population that prefers dark meat.” While the effect of changing demographics has been seen in voting patterns and employment trends, the growing influence on America’s palate of the influx of immigrants from Latin America and Asia has been more subtle, even as grocery shelves increasingly display products containing ingredients like lemon grass and sriracha peppers. Read more of this post

China faces a difficult credit bubble workout; It will take Beijing years to tackle excess credit and over-investment

July 8, 2013 11:50 am

Markets Insight: China faces a difficult credit bubble workout

By Gavyn Davies

It will take Beijing years to tackle excess credit and over-investment

The financial shock which has recently hit the emerging markets stemmed in part from a period of severe stress in the Chinese money markets, which has now been brought under control. But the challenges facing China are chronic, not acute. And since the country is much more than “first among equals” in the Brics, a prolonged slowdown in its economy would keep all emerging market assets under pressure for a long while. Read more of this post

Australia’s stock market regulator will increase scrutiny of analysts as part of a clampdown on selective briefings after questions were raised over coverage of Newcrest Mining

Australia Aims Spotlight on Disclosure After Newcrest Slump

Joe Schneider and David StringerJul 08, 2013 2:41 am ET

July 8 (Bloomberg) — Australia’s stock market regulator will increase scrutiny of analysts as part of a clampdown on selective briefings after questions were raised over coverage of Newcrest Mining Ltd. The Australian Securities & Investments Commission will make spot checks on company briefings and communications with analysts in the current half of the year, the regulator said yesterday in a statement. Newcrest shares fell 12 percent in the two days before the company announced a possible A$6 billion ($5.5 billion) writedown, raising concern of selective briefing. Australia requires companies to disclose all market-sensitive information to the Australian Stock Exchange. Newcrest has said it didn’t selectively brief analysts ahead of the announcement. Read more of this post

Why I Became a Chinese Shadow Banker

Why I Became a Chinese Shadow Banker

In the fall of 2010, as deputy head of China investment banking at UBS AG, I spoke to a group of wealthy investors in Beijing about the outlook for Chinese stocks. A rumpled, 50-something man from Hangzhou named Wang Zhigang pulled me aside afterward and asked for my advice about investing. Until then, he had made his money through curbside lending, not stocks. But, he lamented, his returns had dropped from more than 30 percent a year to a mere 23 percent. He worried about his personal fortune, which he had built up from nothing to almost 3 billion yuan (about $445 million back then).

He hardly needed my advice, I told him. “With your performance, even Ba-Fei-Te should farm out some money for you to manage!” I said, referring to Warren Buffett’s name in Chinese. Read more of this post

Shadow banking bolsters China Inc as Beijing tightens credit? “There’s the risk of quenching thirst by drinking poison”

Shadow banking bolsters China Inc as Beijing tightens credit

9:14pm EDT

By Samuel Shen and Michael Flaherty

SHANGHAI/HONG KONG (Reuters) – Wang Zhiyong, the founder of a Shanghai-based gift card company, tried twice to get a bank loan for his business and failed both times. So Wang turned to China’s vast network of alternative lenders, opting for a so called “curb side” loan. Such a loan is just one segment of the country’s shadow banking system, which includes pawn shops, credit guarantee firms, trust companies and other mechanisms as sources of funds for Chinese borrowers. “Banks never lend a hand to start-ups like us,” said Wang, 40. “They only go after big companies and state-owned firms.” The dearth of bank credit available to China’s millions of small to mid-sized companies is expected to tighten as authorities seek to rebalance the world’s second-biggest economy. Read more of this post

India Suspends ‘Buy India’ Provisions after just five months

Updated July 8, 2013, 5:55 p.m. ET

India Suspends ‘Buy India’ Provisions

R. JAI KRISHNA

NEW DELHI—India on Monday suspended its “Buy India” guidelines, which had come under fire, after just five months. The entire policy “will be revisited and reviewed,” according to a statement on the prime minister’s website. The guidelines, introduced in February, mandated that electronic goods purchased by the government contain a certain proportion of locally made hardware. “There have been some reservations,” India’s telecommunications secretary, M.F. Farooqui, said on the sidelines of an industry event in New Delhi. “We wanted to address that.” Global investors had requested that India reconsider the policy, said Guarav Verma, head of the New York office for the U.S.-India Business Council. International companies had told the government that the policy might prompt them to set up operations elsewhere, he added. Read more of this post

Fracking Firms Face New Crop of Competitors; Schlumberger, Halliburton, Baker Hughes Struggle to Distinguish Themselves as Smaller Rivals Crowd the Marketplace

July 8, 2013, 7:31 p.m. ET

Fracking Firms Face New Crop of Competitors

Schlumberger, Halliburton, Baker Hughes Struggle to Distinguish Themselves as Smaller Rivals Crowd the Marketplace

ALISON SIDER

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So many companies have jumped into the hydraulic-fracturing business that the price of performing the key part of the oil- and gas-drilling technique has plunged in recent years, forcing fracking’s pioneers to play up new technologies to stand out. Schlumberger Ltd., SLB +0.94% Halliburton Co. HAL +0.48% and BJ Services, a company that is now a subsidiary of Baker Hughes Inc., BHI +1.25% once did nearly all the hydraulic-fracturing work in the U.S., helping energy companies unlock previously unreachable oil and natural gas in shale formations and ushering in a boom in domestic energy production.

Read more of this post

Central Bankers Hone Tools to Pop Bubbles

July 8, 2013, 11:04 p.m. ET

Central Bankers Hone Tools to Pop Bubbles

DAVID WESSEL and ALEX FRANGOS

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In Seoul’s upscale Gangnam neighborhood, made famous by pop star Psy’s viral music video, government curbs on real-estate lending froze a market in which home prices had been rising as fast as 25% a year. In Toronto, housing prices reversed their rapid rise and fell for five months after the government changed rules to effectively increase monthly payments on new loans. But in Tel Aviv, home prices kept right on climbing—up 11% over the past year for a three-bedroom apartment—even after the central bank boosted minimum down payments and made mortgage lending less attractive to banks.

Central bankers everywhere else are watching these experiments closely, among them Ben Bernanke, chairman of the U.S. Federal Reserve. He and his counterparts around the world, seared by the worst financial crisis in 75 years, are searching for ways to halt borrowing binges before they morph into bubbles, and to push lenders to shore up their defenses before the next crisis arrives. Read more of this post

LVMH’s Bernard Arnault has collected scores of brands but his quest for Hermès has ignited a fierce handbag war

July 8, 2013 6:55 pm

Luxury: Object of desire

By Scheherazade Daneshkhu

LVMH’s Bernard Arnault has collected scores of brands but his quest for Hermès has ignited a fierce handbag war

Bernard Arnault, the billionaire head of French luxury goods group LVMH, once dismissed a question about a rival group, saying: “As far as competitors, there are two I admire: Chanel and Hermès.” That was soon after Mr Arnault’s tenacious “handbag war” for control of Gucci, the Italian leather goods maker, ended in rare defeat at the hands of arch-rival François Pinault’s PPR group (now known as Kering) more than a decade ago. Now Mr Arnault is involved in a second handbag war – this time for Hermès – regarded as the crème de la crème of luxury goods companies for the quality and craftsmanship of its bags and silk scarves and ties. Read more of this post

Hedge funds lose 2-second edge on econ report; Reuters agreed to end its practice of giving high-frequency traders an early look at potentially market-moving consumer survey results that could mean millions of dollars in profits

Hedge funds lose 2-second edge on econ report

Kevin McCoy, USA TODAY11:45 a.m. EDT July 8, 2013

STORY HIGHLIGHTS

Results from consumer surveys will no longer go early to high-frequency traders

High-speed computers are able to make trades within the two-second gap

Reports also not being distributed early to news organizations

Financial information giant Thomson Reuters Monday agreed to end its practice of giving high-frequency traders an early look at potentially market-moving consumer survey results that could mean millions of dollars in profits. Changing the policy amid an investigation by New York Attorney General Eric Schneiderman, the company said it would no longer provide early access of the University of Michigan consumer survey findings issued every other Friday at 9:55 a.m ET. Financial information giant Thomson Reuters Monday agreed to end its practice of giving high-frequency traders an early look at potentially market-moving consumer survey results that could mean millions of dollars in profits. Read more of this post

Earnings Management to Avoid Additional Disclosures: Evidence from Germany

Earnings Management to Avoid Additional Disclosures: Evidence from Germany

Joerg R. Werner Frankfurt School of Finance & Management gemeinnützige GmbH

Hanno Dachwitz Frankfurt School of Finance & Management gemeinnützige GmbH

March 28, 2013

Abstract: 
This paper sheds light on measures undertaken by firms to avoid additional mandatory disclosure requirements. Basically, the firms analyzed in our setting have a choice between laying off employees or exerting some kind of earnings management to avoid increased disclosures. Based on a sample of German firms, we empirically show that earnings management is more likely to occur compared to other measures under such circumstances. The paper contributes to the literature dealing with costs of mandatory disclosures.

Going Beyond Heroic-Leaders in Development

Going Beyond Heroic-Leaders in Development

Matthew Andrews Harvard University – Harvard Kennedy School (HKS)

June 10, 2013
HKS Working Paper No. RWP13-021

Abstract: 
Leadership is an under-studied topic in the international development literature. When the topic is broached it is usually in support of what might be called a ‘hero orthodoxy’: One or other individual is identified as the hero of a specific achievement. The current article offers a three part argument why this orthodoxy is problematic and wrong for many developing countries, however. It suggests first that heroes have not emerged in many countries for a long period and individuals who may have been considered heroes in the past often turned out less than heroic. It posits second that heroes are actually at least as much the product of their contexts as they turned out to be the shapers of such. It proposes third that the stories about hero-leaders doing special things mask the way such special things emerge from the complex interactions of many actors – some important and some mundane. Leadership, it appears, is about multi-agent groups and not single-agent autocrats. The conclusion posits that romantic notions of heroic-leadership in development become less convincing when one appreciates these three arguments. It calls development theorists and practitioners to go beyond the heroic-leader perspective.

Crying Wolf Leadership Style and Ways

Crying Wolf Leadership Style and Ways

Kim Cheng Patrick Low BusinesscrAFT Consultancy (Asia Pacific); University of South Australia; Bang College of Business – Kazakhstan Institute of Management; Universiti Brunei Darussalam

July 3, 2013
Business Journal for Entrepreneurs, Volume 2013, Issue 2 p. 51-67

Abstract: 
The well-known tale involves a shepherd boy who often misleads or deceives nearby villagers into thinking a wolf is attacking his flock. In this paper, as the title suggests, through literature review and discussion, the academician-practitioner examines the features, the workings and the various ways of crying wolf leadership. It is basically about leaders who keep on crying, “Wolf! Wolf!”, urging and exhorting their people of crisis ahead or that the sky might fall sooner than expected. The associated advantages and disadvantages of such a leadership style are also examined.

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