MARKETS VS. MANAGEMENT: WHAT ‘DRIVES’ PROFITABILITY?

This study addresses the issue of the relative degree of variance in ROA accounted for by industry, corporate, and SBU effects while controlling for the business cycle and the interaction between the business cycle and industry. Two key articles, Schmalensee (1985) and Rumelt (1991), are discussed in detail. Research results on a recent data base (COMPUSTAT), using variance components analysis (VARCOMP) are presented that not only confirm most of the Rumelt (1991) findings, but also suggest the existence of a corporate effect, heretofore undetected.     

Toxic hazard reduction with passive mitigation systems

A major component of the United States Environmental Protection Agency's 112(r) Risk Management Program Rule is the evaluation and control of potential public exposures to toxic chemicals. The rule requires identification and evaluation of a worst case accidental toxic release scenario, but provides for the inclusion of passive mitigation systems in modeling the dispersion hazard zones that are to be communicated to the public. These passive mitigation systems can be taken into account in the consequence modeling if they will withstand the initiating event that causes the accidental release and function as intended. This paper discusses several passive mitigation systems that can be designed as an integral part of storage or processing of highly toxic chemicals. These include, but are not limited to, optimizing storage conditions, design of secondary containment, toxic vapor generation control, and enclosure design. The effectiveness of various passive mitigation systems is evaluated using consequence modeling for case studies involving highly toxic chemicals such as phosgene, chlorine, and ethylene oxide.     

ENVIRONMENTAL FINANCE: VALUE AND RISK IN AN AGE OF ECOLOGY

Environmental issues are restructuring markets and redirecting capital flows throughout the world. An outline is provided of concerns facing the development of an environmentally responsible or ‘environmental finance’ perspective. It reviews the major ways in which organizations are responding to environmental threats and opportunities in the three major branches of finance — corporate finance, investments and financial institutions — highlighting in particular novel programs and initiatives. In the past, financial concerns have exacerbated the degradation of the natural environment; in the future, they probably hold the key to their preservation.