Investor confusion and similarly identified securities

This paper extends the analysis of Rashes (2001) to examine the co‐movement of prices for a sample of UK equity securities with similar ticker symbols and names. In contrast to Rashes (2001), we find only limited evidence of price changes that could be attributed to ticker symbol or name confusion. Our results suggest that any such confusion, if it exists at all, is most likely confined to very short time horizons and is not a systematic occurrence for similarly identified securities.     

Social and political aspects of global warming

Although there is general scientific consensus that measures are needed to avert global warming and possible consequent ecological disaster, forming and implementing policies for global warming is likely to be more difficult than has been supposed. The reasons lie in the nature of the threat and the radical mismatch between it and the types of problem normally faced by democratic governments. In particular, the greenhouse effect poses major challenges to processes for consensus building and to the readiness for sacrifice in advanced industrial societies. This essay considers aspects of the international politics of global warming, and examines some of the key economic, political and social dimensions of the response of the industrial democracies so far to the threat of global warming.     

Auditor specialization, perceived audit quality, and audit fees in the local government audit market

Prior governmental research implies a positive relation between auditor specialization and audit quality, but the effect of specialization on audit fees is mixed. However, no single governmental study investigates the effect of auditor specialization on both audit quality and audit fees. Also, prior studies focus on either large- or small audit firms and often employ indirect proxies for audit quality. We study the effects of auditor specialization on perceived audit quality and audit fees. Our data represent both Big 5 and smaller audit firms and include three market-based measures of specialization. We survey 241 Florida local government finance directors and find that specialization is positively associated with perceived audit quality but not with audit fees. We also find that Big 5 auditors, often used as a proxy for higher audit quality in prior research, are not uniformly associated with increased perceived audit quality but consistently charge higher audit fees. Our results confirm a relation between measures of audit firm specialization and audit quality and raise questions regarding audit firm size and audit quality in the municipal sector. Our findings suggest that engaging specialized auditors may be good policy for many local governments.     

Constructing a knowledge‐based system to aid scenario‐based strategic planning: an application to the European airline industry

This paper explores the use of scenario planning and the design of a knowledge‐based system in strategic decision making, in the context of the European airline industry. Several innovative strategies were derived, as well as other key recommendations based on sound strategic reasoning, and participants testified to the effectiveness of the approach in stretching their thinking. The requirement to draft strategies as expert system rules, with reasons, was useful in clarifying thinking and achieving group consensus. This methodology, therefore, aids effectiveness of the scenario planning process itself, while providing a dynamic, accessible means of storing the resulting strategic thinking. Copyright © 2005 John Wiley & Sons, Ltd.     

Subcontracting and Labour Standards: Reassessing the Potential of International Framework Agreements

Attempts to regulate labour standards in multinational companies face clear difficulties, not least because companies themselves may not have the executive power to enforce terms throughout complex and fragmented subcontracting structures. In the case of international framework agreements (IFAs), this might suggest a fundamental weakness. Taking our example from the South African construction industry, this article presents an IFA in the context of both employer and union strategy. We demonstrate that a two‐track approach exists: highly interventionist approach to quality‐critical issues compared with labour‐related issues. On this basis, we suggest that, far from being over‐hyped, IFAs have yet to be taken seriously enough.     

Changing China,Changing Africa: Future Contours of an Emerging Relationship

Current China–Africa relations have been statically framed: China invests in the continent and exports resources extracted by its state‐owned enterprises and fuelled by aid flows, while simultaneously undercutting African industry through cheap exports. We frame this debate, then explore how the framework could adjust in response to changing economic realities in China, centered on the “rebalancing” of the growth model toward domestic consumption. We argue that a new wave of private sector‐led, low‐cost manufacturers may find its way to selected African shores, in the process transforming those economies and the way in which China interacts with them, both for the better.