Stock price informativeness and analyst coverage

We examine whether more analyst coverage translates into more informative stock prices and apply this to both developed and emerging markets. We measure price informativeness using the association between current stock returns and future earnings. We argue that more informative stock prices contain more information about future earnings. Results indicate that analysts' activities do not contribute to the impounding of future earnings information into current stock prices, in accordance with the view that analysts are outsiders who do not have full access to firm‐level information. We also find that analysts specialize according to industry and that “industry expertise” is limited to developed countries. Overall, our evidence is consistent with the explanation that analysts focus on gathering and mapping industry‐ and market‐level information (macroeconomic information) into stock prices. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Developing Alteratives: Energy,Offices and the Environment

This paper maps some of the social and commercial forces shaping the debate around ‘realistic’ or ‘appropriate’ levels of energy specification in the commercial office market. It discusses how the dynamics of the market, alternative lease arrangements, enhanced building management standards, technological innovation and shifts in cultural taste are all redefining contemporary office space and presenting new opportunities for environmental innovation. Drawing upon interviews with developers, investors, agents, occupiers and property researchers in Britain and France, the changing, often conflicting, priorities underpinning decisions about energy standards are explored. The paper explores possible ‘futures’ for office development processes in the United Kingdom. Highlighting the ebb and flow of the market, the paper points to the changing nature of tenant demand and current ‘opportunities’ for the development of alternative, more ‘realistic’ energy specification levels. Looking beyond the current property slump it examines the cultural and structural shifts likely to sustain any reformation of British real estate practices. In particular, the paper highlights contemporary debates around transformation of the institutional lease and legislative codification of energy and environmental standards. It is argued that this loose constellation of social forces promises a significant, new mutuality of interests between developers and occupiers which is cultivating ‘appropriate’ specification and procurement practices. Cet article retrace certaines des formes sociales et commerciales qui modèlent le débat sur les niveaux ‘réalistes’ ou ‘appropriés’ de spécification de l'énergie dans le marché des bureaux commerciaux. Il explique comment les dynamiques du marché, l'organisation alternative du bail, une meilleure gestion des immeubles, la nouveauté technologique et le changement des goûts culturels redéfinissent l'espace contemporain du bureau et présentent de nouvelles opportunités d'innovation de l'environnement. M'appuyant sur des entrevues avec des promoteurs, des agents, des occupants et des chercheurs sur les propriétés immobilières en Grande-Bretagne et en France, j'examine les priorités changeantes et souvent contradictoires qui supportent les décisions quant aux niveaux d'énergie. Cet article explore les ‘futurs’ possibles pour les processus de développement des bureaux au Royaume Uni. Soulignant le va et vient du marché, cet article démontre la nature changeante de la demande des locataires et les ‘opportunités’ actuelles quant au développement de niveaux alternatifs et plus ‘réalistes’ de spécification de l'énergie. En regardant par delà l'effrondement actuel du marché immobilier, il examine les mouvements culturels et structuraux qui pourraient supporter une réforme des pratiques des agents immobiliers britanniques. Cet article souligne en particulier les débats contemporains sur la transformation du bail institutionnel et la codification législative de la qualité de l'environnement et de l'énergie. Je soutiens que cette constellation décousue de forces sociales promet une nouvelle et significative mutualité d'intérêts entre les promoteurs et les occupants qui cultive les spécifications ‘appropriées’ et les pratiques d'acquisition.     

The compatibility of multicurrency accounting with functional currency accounting

In today's high-tech and global economy, this study introduces multicurrency accounting as an effective tool to manage resources and compares its reporting capabilities with current generally accepted accounting principles. Further, it proposes a means to integrate multicurrency accounting into internal reporting and external reporting as supplemental disclosures. Multicurrency accounting has the merit of reflecting the true exposure position of each hard currency, in addition to the dollar-based consolidated financial statement. It lends itself readily to mark-to-market accounting; its application for external reporting is foreseeable in the near future.     

Environmental management and business strategy: Towards a new strategic paradigm

There has been considerable debate in recent years regarding the direction in which environmental business strategy can be expected to develop in the future. This article seeks to investigate the extent to which firms have sought to change the basis of their strategic decision making, from a shareholder value paradigm to one reflecting an environmental focus. The results of a 1994 survey are reported and evaluated in the light of previous survey findings. Despite an increasing coverage in the literature of how individual firms have been responding to the environmental challenge, the findings of the present survey do not lend support to the view that there has been an underlying transformation in the process of strategic management. The findings tend to support the view that such a paradigm shift is more likely to take place in a legislative rather than a voluntary context.     

VALUING THE BENEFITS OF THE SOUTH DOWNS ENVIRONMENTALLY SENSITIVE AREA

Over the last few decades increasing concern has been voiced regarding the detrimental effect which many modern farming practices are thought to have on the countryside. The Environmentally Sensitive Areas (ESA) Scheme is one response to this concern and seeks to support those agricultural practices which have contributed to the distinctive agricultural landscape, which for many people typifies the British countryside. This paper uses the contingent valuation method to estimate the benefits which the general public receives from the ESA scheme in the South Downs and sets them against the estimated net exchequer costs of the scheme. The study illustrates the importance of including passive use values in benefit-cost analysis, if environmental protection is to be provided in certain marginal areas.     

The impact of citizens' groups on urban policies: towards a contextual analysis

Book reviewed in this article: Castells, M., Cherki, E., Godard, F. and Mehl, D. 1978: Crise du logement et mouvements sociaux urbains; enquěte sur la région parisienne. Godbout, J. and Collin, J.-P. 1977: Les organismes populaires en milieu urbain: contre-pouvoir ou nouvelle pratique professionnelle? Abu Lughod, J. and Hay, J. R. 1977: Third world urbanization. Costello, V. G. 1977: Urbanization in the Middle East. Aubin, H. 1977: City for sale.