Reviews

GRAND STRATEGY OR DRAINING LAKE WINDERMERE WITH A TEASPOON?

Chandler, J.A. and Lawless, P. 1985: Local Authorities and the Creation of Employment. Aldershot: Gower, £14.50 hardback only.

HOW IT'S DONE IN HAMMERSMITH.

Allan, M., Fenton, M. and Flockhart, A. 1985: Creating a local economic development network. A case study of Hammersmith and Fulham. Dundee Park Place Publishing/The Planning Exchange, £7.50 paperback.

ENTREPRENEURSHIP FOR THE UNEMPLOYED?

Nabarro, R., Davies, R., Cobbold, C. and Galley, N., 1986: Local enterprise and the unemployed. London: Calouste Gulbenkian Foundation. £4.00 plus 60p postage.

THE CO-OP BANK LOOKS AT CO-OPS.

P. A. Management Consultants Ltd. and Co-operative Bank plc, 1985: Workers Co-operatives Past, Present and Future. Manchester: P. A. Management Consultants (Manchester), £20.00.

HOUSING LAND: ARE PLANNERS LOSING THEIR GRIP?

Rydin, Yvonne, 1986: Housing Land Policy. Aldershot: Gower, £15.00 cloth.

MONETARISTS LOOK AT LIVERPOOL.

Liverpool Research Group in Macroeconomics, 1986: Merseyside Economic Prospect Vol. 1, No. 1 February 1986. Liverpool: University of Liverpool, £6.00.

THE FORGOTTEN DEPRIVATION OF RURAL AREAS.

Association of District Councils, 1986: The Rural Economy At The Crossroads—A Review of Rural Needs and Problems in the '80s. ADC,

9 Buckingham Gate, London SW1E 6LE. £5.00.

THE LONDON FINANCIAL STRATEGY.

Greater London Council, 1986: London Financial Strategy London: Greater London Council, £3.50 (now available from London Strategic Policy Unit, 20 Vauxhall Bridge Road, London SW1).     

Leveraged Acquisitions and the Market for Corporate Control

What is the function of the market for corporate control? Mike Wright and two colleagues outline the advantages of an active market in corporate control and review the consequences of leveraged buyouts.     

Transforming audit technologies: Business risk audit methodologies and the audit field

Business Risk Audit (BRA) methodologies have been promoted by a number of the large audit firms in response, they claim, to the challenges of the information age and corporate clients’ needs for assurance. This paper subjects their claim to critical scrutiny, drawing on the perspectives of neo-institutional theories of legitimacy, the sociology of professional knowledge and the sociology of science and technology. To bring into play new Business Risk Audit methodologies a number of the larger firms have sought, through their auditing practice, to renegotiate the bases of their professional identity and status within audit firms and to widen their jurisdictional claims over other areas of expertise. These moves have been accompanied by the legitimation and embedding of Business Risk Audit in revised constructions of the market for audit, in abstract academic knowledges, reforms of professional education, and professional regulations. In providing a constructivist account of Business Risk Audit technologies, we argue for a theory of audit change that recognises (i) the centrality of legitimation processes and (ii) the co-construction of audit technology and the audit field.     

Would Switching to Timely Reviews Delay Quarterly and Annual Earnings Releases?

The SEC recently issued a proposal to modernize and clarify the regulatory structure of securities offerings. The proposal would allow companies to access capital markets on an almost continuous basis but would require strengthening of the role of independent accountants and other gatekeepers in the registration process. The Commission is seeking comment on whether it should add to the proposed practices the fact than an independent accountant performed a timely review under SAS 71 of an issuer's quarterly financial information (SEC, 1998, p. 231). This is the most recent of several proposals, made by the SEC and others, that provides incentives for companies to purchase quarter-end (timely) reviews of their quarterly data. Some managers who currently have their quarterly earnings reviewed only at year-end (retrospective reviews) argue that having a timely review would delay interim earnings releases. Proponents of timely reviews deny that this would occur, and assert that shifting certain review procedures into interim periods would decrease the time needed to release annual earnings.We estimate the quarterly and annual reporting lags that would occur if companies currently selecting retrospective reviews switched to timely reviews. Our results indicate that quarterly earnings release lags would increase, as opponents of mandatory timely review have argued. Switching to timely review would reduce annual earnings release lags only when interim earnings contain unusual components.     

Testing the theory of PPP for emerging market economies that practice flexible exchange rate regimes

This study aims to test the long-run validity of purchasing power parity by using Fourier quantile unit root and Fourier cointegration analyses for 12 emerging market economies that practice a flexible exchange rate regime. With the Fourier approach, structural breaks are modelled as a gradual and smooth process. Fourier quantile unit root test results show that real exchange rate series are stationary for Colombia, India, Philippines, Poland, South Africa, and Turkey. On the other hand, Fourier cointegration test results reveal that purchasing power parity is valid for Brazil, Colombia, India, Mexico, South Africa, Thailand, and Turkey.     

Slack and the performance of state-owned enterprises

Organizational slack has been recognized as critical to firm performance, although its impact is not always positive. Slack may be used to fuel innovation or alternatively excess resources may be squandered on pet projects. However, most research on slack is rooted in studying private firms in developed economies, especially the United States. Whether prior research on organizational slack can readily inform our understanding of state-owned enterprises’ (SOEs) behavior is questionable since SOEs prioritize goals such as social welfare and full employment differently than do the privately owned enterprises (POEs). The differences between SOEs and POEs influence their sources and use of slack due to the nature of their ownership, budget constraints, and agency relations. To bring insight to this issue we develop an institutional change lifecycle model to study the relationship between slack and the economic and social aspects of SOE performance.     

Consumer trust and confidence in the compliance of Islamic banks

Islamic banks compete with traditional (non-Islamic) banks for customers. This article aims to provide insight into why some Muslims choose to bank with Islamic banks in Pakistan, while others do not. Specifically, it addresses the questions: to what extent are trust and confidence active influencers in the decision-making process, are they differentiated or are they one of the same? Also how does the Pakistani collective cultural context further complicate the application of these concepts? For the purposes of this article trust refers to people and their interpersonal or social relations whereas confidence concerns institutions such as banks. Drawing on interviews with Muslim consumers in Pakistan, this study provides further insight into consumer behaviour within financial services and specifically Islamic banking and contributes to our theoretical understanding of the concepts of trust and confidence.