Contract compliance and equal opportunities

In 1983, the Greater London Council adopted a policy of 'Contract Compliance' designed to ensure that firms selling goods and services to the Council complied with its equal opportunity requirements. The initiative aroused wide interest and many other local authorities - 40 are known of to date - have been considering introducing such a policy. Although simple in essence, its execution can be complex and difficult. In April 1986, the Inner London Education Authority, a partner in the GLC policy, took over the Contract Compliance Unit following the GLCs abolition. Linda Smith explains the background to contract compliance, how the GLC, now ILEA, operates the policy; assesses its achievements and its significance and explores some of the lessons learnt in its three years of operation.     

Orange County Bankruptcy: Financial Contagion in the Municipal Bond and Bank Equity Markets

We examine the spillover wealth effects of the Orange County, California bankruptcy announcement in December 1994 on municipal bonds, municipal bond funds, and bank stocks. This bankruptcy is prominent because of unprecedented losses and because it was caused by a highly leveraged derivatives strategy rather than a shortage of tax revenues and excess spending. We find contagion in the bond market with significantly negative abnormal returns for municipal bond funds without direct exposure to Orange County and for non‐Orange County municipal bonds. In addition, our findings suggest the contagion spills over to the common stocks of investment and commercial banks that deal in or use derivatives; however, the equities of banks unexposed to derivatives are not affected.     

Budget deficits and long-term interest rates: 1973–91

This study investigates the relationship between nominal long-term interest rates and central government budget deficits during the post-Bretton Woods era in Italy. The analysis is based in an open-economy, loanable-funds framework. The cointegration results indicate, among other things, the existence of a long-term positive relationship between the long-term interest rate and the deficit. An earlier draft of this paper was presented at the Forty-Fourth International Atlantic Economic Society Conference in Philadelphia, Pennsylvania, October 9–12, 1997.     

Contrasting corporate profiles: Women and minority representation in top management positions

This paper investigates the characteristics of firms which have underrepresented groups in top management positions and those which do not. It is argued that profiles of these characteristics will be different for firms with minorities vs. women and that these profiles will be different depending on whether representation is by board membership or through officerships. A discriminant analysis found both similarities and differences in variables that were associated with these different forms of representation. It was found, for example, that size is associated with representation for both minorities and women, whereas high advertising intensity is associated with firms with women on board, but not as officers. Other findings and the implications of the study are discussed.Jerry Fryxell is an Assistant Professor of Management at the University of Tennessee — Knoxville. His current research interests are in the area of corporate culture, innovation, and strategic management.Linda Lerner is a Ph.D. candidate in the Department of Management at the University of Tennessee — Knoxville. Her current research interests include strategic management, social issues, and corporate governance. She has over ten years of management and consulting experience.     

Strong Presidential Approval or Disapproval Influencing the Expected Benefits of Voting and the Voter Participation Rate

This empirical study seeks to broaden the interpretation of the rational voter model so as to identify and better understand key determinants of the expected benefits from voting and hence key determinants of the aggregate voter participation rate in the US. Using annual data for all years in the 1960–1997 study period, this study finds that the voter participation rate has been positively impacted by strong public approval or strong public disapproval of the incumbent President, a finding unique to this literature and study period. In addition, the aggregate voter participation rate has been positively impacted by such factors as the Gulf War, which is generally regarded as having been popular among the US electorate, and a rising unemployment rate. This study also finds the voter participation rate to have been negatively impacted by the publics dissatisfaction with government, as well as by the Watergate scandal.The author is indebted to Cassandra Copeland for helpful information, comments, and guidance.     

Becoming the boss

Even for the most gifted individuals, the process of becoming a leader is an arduous, albeit rewarding, journey of continuous learning and self-development. The initial test along the path is so fundamental that we often overlook it: becoming a boss for the first time. That's a shame, because the trials involved in this rite of passage have serious consequences for both the individual and the organization. For a decade and a half, the author has studied people-particularly star performers-making major career transitions to management. As firms have become leaner and more dynamic, new managers have described a transition that gets more difficult all the time. But the transition is often harder than it need be because of managers' misconceptions about their role. Those who can acknowledge their misconceptions have a far greater chance of success. For example, new managers typically assume that their position will give them the authority and freedom to do what they think is best. Instead, they find themselves enmeshed in a web of relationships with subordinates, bosses, peers, and others, all of whom make relentless and often conflicting demands. "You really are not in control of anything, says one new manager. Another misconception is that new managers are responsible only for making sure that their operations run smoothly. But new managers also need to realize they are responsible for recommending and initiating changes-some of them in areas outside their purview-that will enhance their groups' performance. Many new managers are reluctant to ask for help from their bosses. But when they do ask (often because of a looming crisis), they are relieved to find their superiors more tolerant of their questions and mistakes than they had expected.