Carlin, Tyrone M; Ford, Guy --- "Editorial" [2002] JlLawFinMgmt 1; (2002) 1(1) Journal of Law and Financial Management 5

EDITORIAL

Welcome to the first edition of the Journal of Law and Financial Management. The purpose of the journal is to provide a forum for the publication of research and analysis focused on the nexus of the general disciplinary areas of law (primarily business, corporate and commercial law) and financial management. The term “financial management” as used in the title of the journal, is to be interpreted broadly, and encompasses all aspects of accounting and financial reporting, finance and financial economics.

The motivation for the creation of this journal is the inextricable relationship which exists between the disciplines of law and financial management. The structure of financial systems, institutions and transactions are all shaped by the nature of the legal systems within which they operate and take place. Further, both legal and financial systems may be characterised as existing in a state of dynamic change, with a tendency towards increasing complexity.

Law and the quality of its enforcement are powerful determinants of the rights of security holders and the degree to which these rights are enforced and protected. Indeed, the efficient functioning of financial markets is in large part driven by the adequacy and timeliness of information flows and the balance of power between managers, owners (often dispersed), and other stakeholders. The confidence of investors in governance structures, clarity and accuracy of disclosure and their capacity to have their rights upheld directly influence their willingness to invest and thus the cost of capital faced by organisations seeking funds. Increasingly, these matters must be viewed not simply from the perspective of one jurisdiction, but in an evolving, international context.

This inaugural edition of the journal is comprised of four papers. The first three of these touch on questions relating to competition, and the manner in which the relevant laws and regulatory agencies operate to promote competition in markets for products and services. Given the attention being paid to questions such as these by the Dawson Committee and its review of the competition provisions of the Trade Practices Act 1974 (Cth), this collection of papers is especially timely and relevant.

The final paper, which completes this edition, contemplates the vexed issue of the “true and fair view” and its role in financial reporting. This is a concept which has fallen into and out of favour as decades have gone by. However, given revelations of waves of accounting and financial reporting irregularities both in Australia and abroad over recent periods, careful contemplation of possible improvements to regulatory frameworks relating to financial reporting is appropriate and opportune.

Ultimately, no publication such as this thrives or even survives in a vacuum. We therefore take this opportunity to thank the members of the editorial board for lending their vital support thus far, and extend a robust invitation to all scholars, practitioners and students interested in the disciplines touched on by this journal to actively contribute and participate in the construction of what we hope will grow in time to be both a valuable reference point as well as conduit for leading edge thinking in the area.

Tyrone M Carlin and Guy Ford, Sydney, November 2002.