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Previous analyses of the wage/profit relationship at a disaggregative level in Britain have given positive results for pre-war years but negative results for early post-war years. However, this is probably due to the increasingly unreliable nature of the enterprise- based profits series published in the National Accounts until 1982. We have constructed, instead, what are essentially establishment-based Census data on profits for fourteen manufacturing industries, up to 1986. We have also been able to extend the disaggregative unemployment data, the publication of which also ceased in 1982. The wage equations that we have estimated include profits and unemployment (and other variables) in an explicit Nash bargaining model, in line with widely held views as to the way that wage negotiations are actually conducted. The results obtained show a highly significant role for profits, as well as having other implications, notably the positive (hysteresis) effect of industry unemployment, by contrast with the normal negative effect of aggregate unemployment, and the important effects of relative wages - which play a large role in various disaggregative studies of the propagation of inflation.
Using a new data source on share price indices, this paper finds no evidence that the substantial variations in the reactions to the crash of October 1987 across countries are related to the structure of markets. However, trading halts and capital controls on residents may have moderated the speed of declines in some markets. The paper also examines one measure of interlinkages between markets, the trading of foreign stocks on domestic markets, and finds this to be closely related to interdependence between markets.
Corporation tax in the UK is based on an estimate of historic cost company profits. The present system was introduced in the 1984 Budget and has been in full effect since the end of the transitional period in 1986. The consequences of inflation in combination with this tax base were well known at the time.
A consumer's prior evaluation of an advertised brand is hypothesized to moderate the effectiveness of humor in advertising. Further, cognitive responses are hypothesized as mediators of the impact of humorous ads on brand attitude. The results support the hypothesized moderator role of prior brand evaluation: when prior evaluation of the advertised brand is positive, a humorous ad is more effective than its nonhumorous counterpart in changing consumer attitudes and choice behavior. When consumers have a negative prior attitude, the opposite is true: a humorous ad is less effective in changing consumer attitudes and choice behavior than its nonhumorous counterpart. The results also support the conceptualization of cognitive responses as mediators of the impact of humorous advertisements on brand attitude.
This book presents a comparative international analysis of the impact new technology and, more specifically, information technology is having on the most rapidly growing area of economic activity, the service sector. Based on a five year research programme of 39 organizations in Europe, USA and Japan, the book tackles the following key questions: 1) Why and how was the new technology introduced? 2) What impact has it had in terms of employment levels, working practices, economic returns and improvement in service quality? and 3) What new skill requirements have been generated? The book includes case studies from a wide variety of areas such as banking, retailing and healthcare and presents comparative reseach data that allows the reader to draw conclusions on how a significant technological development is being handled in different countries. The book also identifies those political factors which can influence the choice of new technology and which can obstruct the most constructive use of IT.
Company accounts provide a rich data source for the analysis of many economic issues. However, accounting conventions are often at variance with the most relevant procedures for economic analysis. This paper discusses three such problems: the measurement of profit, the valuation of the capital stock and the size of tax payments. It also provides an example of the use to which corrected company accounting data can be put, namely the estimation of a model of company investment.
Although it is now over twenty years since the European Commission first published proposals concerning the harmonisation of corporate taxes, the debate on the desirablility of any such reform has not yet achieved a high political profile. However, it seems likely that the elimination or reduction of many other obstacles to business within Europe as part of the 1992 'Single Market' programme may lead to a greater awareness of the costs of the maintaining twelve different corporate tax systems within the Community.
This paper provides an updated survey of a burgeoning literature on testing, estimation and model specification in the presence of integrated variables. Integrated variables are a specific class of non-stationary variables which seem to characterise faithfully the properties of many macroeconomic time series. The analysis of cointegration develops out of the existence of unit roots and offers a generic route to test the validity of the equilibrium predictions of economic theories. Special emphasis is put on the empirical researcher's point of view.
There is much theoretical debate about the differences between management in the public and private sectors. But what of differences between the two sets of managers? Research has shown that public managers are less positive when faced with change that their private sector counterparts. There are, however, good reasons for this.
For many years middle managers' work, career and future role have been the subject of gloomy descriptions, assertions and predictions. These are described and compared with studies, including our own, that give a more optimistic picture of what is happening to middle management. We also cite survey information about numbers, salaries and job mobility of UK managers, including middle managers. We argue that before generalizations, either optimistic or pessimistic, can justifiably be made, attention needs to be paid to the complexity of changes affecting middle managers' jobs, to the diversity of organizations in which middle management work and the complexity of individual reactions to these changes.
The core of this paper is a case study of how a District Health Authority (Paddington and North Kensington, now Parkside DHA following a recent merger with Brent DHA) in Inner London responded to a major new health care issue of the 1980s — Aids — but the paper also seeks to locate this case study material within wider debates. What theories are there of organisational change which could be used to illuminate policy and service change in the health care sector? How, indeed, do we best study change in health care organisations? The paper is thus in three parts. In the first section we identify some streams of literature which act as a frame of reference defining our initial research question and discuss implications for methodology. The second section presents the case itself, while the last section discusses some emerging findings.
This article presents the results of a survey which examined the technical decision making in state-owned Chinese business enterprises. The survey presented an analysis of enterprise demographic data which revealed a substantial legacy of central planning and affirmed the existence of more favored state enterprises. The survey also reaffirmed the rationality of Chinese management within the overall context of a centrally planned system and illustrated how different rationalities exist among economic systems
An authoritative study of the investment management business, focusing on the use of capital requirements for investment managers as a means of investor protection. This report was commissioned by the Investment Management Regulatory Organization.
This paper examines the relation between capital markets and corporate control in France, Germany and the UK. It compares levels of takeover activity in the three countries and describes the degree to which takeovers are associated with changes in corporate control. The paper examines the influence of regulation on forms of corporate ownership and control. It compares regulation pertaining to the rights of employees, managers and shareholders in the three countries and finds that regulatory rules are related to patterns of ownership and control changes. The paper suggests that a fundamental objective of control changes is to correct managerial failure, and that takeovers are suited to the correction of particular classes of managerial failure that cannot be readily rectified by contracts. Thus, markets with low levels of takeovers may suffer from a low level of correction of managerial failure. However, by changing ownership, takeovers may give rise to an inability of owners to commit themselves to the long-term interests of managers and employees. As a consequence, financial systems with active takeover markets may be associated with inadequate investment in firm-specific assets and an unduly short-term investment horizon. There is, therefore, a tradeoff between alternative methods of correcting managerial failure. This is particularly important for European countries facing an extension of UK takeover activity to the Continent. The process is being encouraged by the European Commission which aims to harmonize regulation on a UK-style takeover code. Harmonization of regulation may have far-reaching consequences for the structure of different countries' capital markets and, in view of the tradeoff, is of uncertain merit.
This paper investigates the sensemaking which occurred during a public inquiry into a fatal gas pipeline accident. The research conceives of the public inquiry as an important stage in crises, and investigates the role of multiple perspectives and rationalities in crisis sensemaking. Stakeholders at the inquiry are shown to differ in terms of their social organization, the cultural biases they hold, and the interpretations they make of events and risks. The paper extends the multiple perspectives approach to crises by linking this approach to theoretical developments in cultural analysis, and by showing the implications multiple perspectives have for inquiry and crisis stakeholders.
In keeping with an inaugural issue, we seek in this paper to do four things: to trace the origins of human resource management (HRM); to provide an explication and critique of it as a conceptual model; to outline the perspective which characterizes our own research programme at Warwick University, and in the process identify a range of themes and issues which the study of HRM ought to address; and finally, given the centrality of the strategic concept to HRM, to argue for an adequate treatment of strategy. in conclusion, we suggest a number of ways forward for research in the 1990s.
When a firm makes an initial public offering (IPO) of it equity, the accuracy with which its shares are priced will be an important factor determining the cost of "going public." In the United States, the United Kingdom, and Japan IPOs are systematically priced at a discount relative to their subsequent trading price. In the United States and the United Kingdom such discounts are, in average, around 10 percent and 7 percent, respectively, in normal trading conditions. In contrast, the average Japanese IPO rose in price by nearly 55 percent after one week. Existing theories seem unable to explain this persistent underpricing of IPOs across countries.
This article traces the pursuit of competing union and central Government objectives to produce a new system of pay determination for professional civil servants. It suggests that the incorporation of these objectives into this new system had a profound effect on its structure and on the way in which it has operated.
Financial, political, and economic forces are changing the roles of personnel managers in UK local governments. A summer 1990 survey conducted by the Society of Chief Personnel Officers in Local Government revealed that personnel-related decisions were increasingly being made by line managers. Nearly two-thirds of the personnel officers stated that they had either transferred the personnel decision-making function to line managers or were planning to transfer the function in the near future. Some decisions, such as decisions requiring specialized knowledge, were still made by personnel officers.
Flexibility agreements have increased in frequency since the 1970s, and so have coincided with the increase in labour productivity in British manufacturing since then. This article analyses the content and extent of a sample of flexibility agreements culled from the specialist industrial relations press, and taking these with evidence from many other sources, seeks to interpret their nature and significance in industrial relations change, and to assess their possible contribution to the manufacturing productivity increase. The evidence suggests that they were genuine agreements, and that although not themselves directly responsible for many of the changes observed, they have often facilitated other changes in working methods.
We study the accretion of super-heavy magnetic monopoles around cosmic string loops in the very early universe. For sufficiently massive monopoles, a possible result of this accretion process is the formation of monopole-black holes, leading ultimately to a monopole-to-photon ratio comparable to the limits required by neutron star observations.
This paper compares corporate financing in the German bank-based and UK market-based systems. Large German firms pay out a lower proportion of their profits as dividends and finance a larger proportion of their investments from retentions. German banks extend more long-term finance to medium-sized firms but UK firms raise more new equity. The paper tests alternative theories of corporate finance. It finds no relation between finance and taxation, and information theories only receive limited support. Instead, it concludes that control models of corporate finance are consistent with observed patterns of finance.
The authors argue against the need for capital adequacy requirements in the regulation of investment management because the main cause of failure is fraud or irregular dealing. The European Commission, in its investment services directive, has various aims but its detailed suggestions will not achieve them. The liberal US regulations seem to be the most appropriate but the EC proposals for stricter capital requirements will be pushing the UK system in the wrong direction.
Two studies of applicants to United Kingdom medical schools show that ethnic origins of surnames is reliably assessable by independent judges, and that surnames are valid indicators of ethnic origin as determined by self-classification, showing very high specificity (97%) and slightly lesser sensitivity (84%). Ethnic origin can also be determined from residential information derived from post-codes and place of birth, information in each case being highly specific (99% and 98%) but lacking in sensitivity (25% and 33%). The addition of place of birth and post-code data to surnames provides and increase in overall sensitivity (90%) with no improvement to specificity (94%). A comparison of survey respondents and non-respondents shows that applicants from ethnic minorities are somewhat less likely to respond than non-minority applicants, although the effect is small. Responding applicants from ethnic minorities reply as quickly as non-minority applicants. Our survey confirms the feasibility of direct monitoring of the ethnic origin of applicants by asking applicants to complete a short questionnaire, and of its indirect monitoring by the use of surname. Both UCCA (Universities' Central Council on Admission) and PCAS (Polytechnic Central Admissions System) have announced that they will instigate the ethnic monitoring of applicants for admission in Autumn 1990.
Examines the financial impact of the strikes held in 1984-1985 in the mining industries on the National Union of Mineworkers (NUM) of Great Britain. Background on the mining dispute; Structure of the NUM; Finances of NUM prior to 1984; Implications of membership size, costs of disputes and relationship between union strategy and financial decision-making for the British unions..
Researchers have argued that financial distress costs and corporate tax shields can induce value-maximizing corporations to hedge their operating cash flows. We demonstrate that, for a fixed level of debt in the capital structure, the presence of personal income taxation and corporate non-debt tax shields may cause hedging to lower the value of the firm. When the hedging decision is evaluated at the optimal capital structure, hedging increases firm value.
This paper presents a two-period model in which dividends act as a signal of the stability of the firm's future cash flows. It is demonstrated that firms with more stable future cash flows pay a higher dividend. Dividends are a credible signal because the promise of a higher dividend, ceteris paribus, increases the probability that the firm will have to issue equity and pay underwriting costs. Empirically testable implications of the model relating to the cross-sectional determinants of the level of dividends are also discussed.
In this paper the choice of risky debt maturity structure is analyzed in a sequential game framework. The focus is on the set of viable equilibria when there are not transaction costs associated with the choice of debt maturity structure. It is shown that when changes in firm value are independent over time, both short- and long-term debt pooling are Nash sequential equilibrium outcomes. However, only the short-term debt pooling outcome satisfies the universal divinity refinements. Relaxing the assumption of independent changes in firm value, it is demonstrated that a separating equilibrium in which higher-quality firms issue short-term debt and low-quality firms issue long-term debt may exist. Furthermore, conditions exist under which long-term debt pooling is the universally divine outcome.
This paper reveals the author's theory of method for conducting longitudinal field research on change. The paper also discusses a range of practical problems in carrying out time-series research in organisational settings. The practical problems include dealing with time in longitudinal research; issues of site selection; choices about data collection and degrees of involvement; the importance of clarifying research outputs, audience, and presentation; and finally handling problems of complexity and simplicity associated with longitudinal comparative case study research on change. The paper concludes by discussing some ethical issues of longitudinal research field research, and managing a community of researchers.
Shopping from home appears an intuitively more attractive proposition in the North American environment than perhaps anywhere else in the world. This article reviews the rather mixed experience of operators in the US in practice and considers in particular the prospects for growth of some of the more advanced interactive schemes. At the end of 1988 J.C. Penney's “Telaction” service and the IBM/Sears Roebuck “Prodigy Interactive Personal Service” were operating. The failure of the J.C. Penney service in April 1989 has had an unsettling effect on operators, advertisers and suppliers alike. The implications of this failure for teleservice prospects in the US in the years ahead are considered.
Studies of music in advertising have tended to characterize music as a nonsemantic, affective stimulus working independently of meaning or context. This implicit theory is reflected in methodology and procedures that separate music from its syntax of verbal and visual elements. Consequently, the consumer's ability to judge and interpret music as part of an overall rhetorical intention is overlooked. This article proposes an alternative theory-that music is meaningful, language-like-and calls for both interpretive and empirical research as ways of exploring a richer, potentially more explanatory concept
An overview of the market system as a cultural institution is presented, and the concept of cultural meaning for material artifacts is discussed. The authors propose a system for representing cultural meaning of objects; this system can summarize the convergence of meaning for most material objects across individuals, subcultures, and time.
The paper reports a major part of the results of a research project on trade union ballots in the 1980s, concerned with the role of ballots in collective bargaining. The project investigated the changes made by unions in the conduct of collective bargaining as a result of government legislation on ballots, through analysis of union rule books, interviews with national level officials, and case studies of collective bargaining at local level.
This article examines the refusal of two UK manufacturers to adapt their strategic ‘repertoires’ to the recessionary and structural changes of the 1980s. From being industry leaders in 1980, both companies were relegated to overseas control by the end of the decade. Developing both institutionalist and contextualist approaches to organization, the article argues that this fatal resistance to change derived from the deep social structural roots of these two companies' politics and cultures. Conservative managers were able to defy new capitalist logics by drawing upon alternative social structural sources of power, legitimacy and inspiration. The article concludes by considering the implications of this plural structuring of organizations both for organizational theory and for the management of change in practice.
This paper describes methods by which manufacturing task description and control may be modelled by a formal string grammar with varying degrees of non-determinism. We first describe the sorts of formal grammars which are useful for these purposes, and provide an introduction to the terminology together with an example of the technique applied to the processing and control decisions made in a commercial production facility. The link between task decomposition and control is modelled by a grammar whose productions may change depending on control decisions, permitting multiple hierarchical decornpositions of high-level tasks. Task strings are embellished into longer strings with sufficient detail to describe the process at the level of concern. Such longer strings are themselves further decomposed until finer atomic tasks are reached.