On the prediction of financial distress in developed and emerging markets: Does the choice of accounting and market information matter? A comparison of UK and Indian Firms

We examine differences in price delay for a sample of real estate investment trust (REIT) and non-REIT matched pairs. Results suggest an economically and statistically higher level of price delay for REIT securities, which implies heightened frictions that increase the time needed for new information to be impounded into the prices of REIT shares. The primary drivers for the observed delay differential include differences in idiosyncratic volatility, market risk, and the number of days traded. Within-REIT determinants of delay confirm findings for the pooled sample of matched pairs. Importantly, we infer find that REIT investors are not compensated for restricted information flow, as excess returns are unrelated to the price delay.     

Corporate Perceptions of the Business Case for Supplier Diversity: How Socially Responsible Purchasing can ‘Pay’

In exploring corporate perceptions of the business case for supplier diversity (SD), this paper reports on a cross-national study of large purchasing organisations (LPOs) that had introduced, or were in the process of introducing, purchasing initiatives aimed at ethnic minority businesses (EMBs). The research investigates how LPOs portray the benefits of this form of socially responsible purchasing and suggests a business case construct based on four component elements. It also highlights a number of contextual factors that appear to have shaped business case rationales. The paper concludes with a discussion of issues of cost and contingent influences affecting SD programmes and points to possible areas for future research.     

Creative marketing and the art organisation: what can the artist offer?

The poem ‘My Paintings’, written in a deliberate, uncorrected dyslexic style offers an insight into the mind of a present day avant garde bad boy of British art, Billy Childish. Constantly challenging the art establishment through public demonstrations of distaste against the annual Turner Prize,[Button, V. (1999) ‘The Turner Prize’, Tate Gallery Publishing, London.] Childish and his cohorts launched an alternative, Stuck‐ist, art manifesto,[Alberge, D. (1999) ‘Rebels Get Stuck into the Brit Artists’, The Times, Thursday 26th August, p. 7.] in the belief that it would assist in a shift in public perception of what good art is, as well as influence the creative practice of those artists concerned with more traditional, authentic forms of art. Childish's ex‐girlfriend Tracey Emin, however, has had other ideas. She has revelled in mass media exposure and now dismisses the concept of traditional painting as a valid art from.[Brown, N. (1998) ‘Tracey Emin’, Art Data, UK.] These are two examples of contrasting creative, artistic behaviour. Their creativity has resulted in varying levels of commercial success. By examining the role that creativity plays in determining how the idea for a creative product is first identified, through to its commercial exploitation, there are valuable lessons contained in such a process for both profit‐oriented and nonprofit art organisations alike. Instead of constantly fighting the conflicting philosophies of art for art's sake versus art for business sake, following the market and consumer demand, there is a much more effective method for establishing longer‐term success, which mirrors the creative practice of the artist. The existing literature on arts marketing is examined. A critique of the usefulness of current thinking is presented, with the recommendation that the formal models of marketing offered in arts marketing literatures can only ever hope to offer general advice on marketing. What is called for is a much more in‐depth analysis of how creative entrepreneurial marketers as artists can offer alternative visualisations of more appropriate models of marketing for the industry. This in turn should result in the stimulation of creative research methodologies that can inform both theory and practice within arts marketing in particular, and the wider remit of marketing in general. The use of the metaphor and the examination of published biographies of creative individuals are used to construct a manifesto of marketing artistry. Copyright © 2002 Henry Stewart Publications     

MAINTAINING MARKET POSITION: TEAM PERFORMANCE,REVENUE AND WAGE EXPENDITURE IN THE ENGLISH PREMIER LEAGUE

This paper investigates the relationship between playing success and commercial success in team sports. Utilizing a data set relating to the English Premier League that combines both financial measures and indicators of playing skills and performances, our empirical analysis is based on three behavioural equations. Our analysis indicates that on‐field success can be directly related to players’ skills and abilities and that revenue is positively related to on‐field success. Wage expenditure is also shown to systematically reflect player skills and performances. One interpretation of this evidence is that investment in players’ skills and ability buys on‐field success, with richer teams becoming ever richer and able to maintain or even build upon success by spending more on players than less successful clubs. To the extent that richer clubs are successful in their objective there is a causal link between revenue earned and competitive imbalance via investments in players. The implications of this tendency within a league are discussed in our conclusion, which also considers the potentially wider implications of our study as they relate to the evolution of firm size and issues of market share.     

Investment in organization capital

We study a firm’s investment in organization capital by analyzing a dynamic model of language development and intrafirm communication. We show that firms with richer internal language (i.e., more organization capital) have lower employee turnover, and higher diversity in skill and wages among incumbents who are promoted from within the firm. Our results also suggest that firms in rapidly changing industries are less likely to invest in organization capital, and are more likely to have high managerial turnover. Finally, our model shows that employment protection regulations lead to more investment in organization capital but less innovation.     

Work and nonwork : Europe in the 1980s and beyond

Through an understanding of major trends in employment, unemployment and informal work and in patterns of life, possible alternative futures in work and nonwork may be identified. Communications and information technologies (IT) may themselves transform the recent transformations in work and nonwork, and already disadvantaged groups may further suffer unless fully involved in the policy processes relating to IT and its products.     

Education, Work and Wages in the UK

Abstract. This paper is concerned with the relationship between education, wages and working behaviour. The work is partly motivated by the sharp distinction in the literature between the returns to education and the effect of wages on labour supply. Education is the investment that cumulates in the form of human capital while labour supply is the utilization rate of that stock. Yet, variation in education is usually the basis for identifying labour supply models – education is assumed to determine wages but not affect labour supply. Moreover, it is commonly assumed that the private rate of return to education can be found from the schooling coefficient in a log-wage equation. Yet, the costs of education are largely independent of its subsequent utilization but the benefits will be higher the greater the utilization rate. Thus the returns will depend on how intensively that capital is utilized and we would expect that those who intend to work least to also invest least in human capital. Indeed, the net (of tax liabilities and welfare entitlements) return to education will be a complex function of labour supply and budget constraint considerations.
Here we attempt to model the relationship between wages, work, education and the tax/welfare system allowing for the endogeneity of education as well for the correlations between the unobservable components of wages and working behaviour. We use the estimates to simulate the effect of a new UK policy designed to increase education for children from low-income households.     

Economic progress and skill obsolescence with network effects

Summary. We construct an OLG model with network effects to examine skill obsolescence when individuals can choose technological vintages. In the absence of transfer payments, some regions of the parameter space have unique stationary equilibria, others have unique cyclical equilibria, and others have multiple stationary equilibria. All equilibria are Pareto efficient. However, rat race equilibria can exist in which all agents currently alive prefer a slower rate of progress than occurs in equilibrium. When contemporaneous transfers are allowed, equilibria are unique everywhere, but a cycle still exists, and a rat race can still arise in equilibrium. Allowing intertemporal transfers (debt) ensures that all equilibria are stationary. In the relevant parameter range, the introduction of debt can eliminate cycles and increase the long-run growth rate. No rat race equilibria exist when debt is allowed.Received: 3 January 2002, Revised: 3 June 2004, JEL Classification Numbers: 041, J24, O33. Correspondence to: Ian P. KingEarly versions of this paper were presented at the West Coast Macro Workshop, the Mid-West Macro Meetings, the Canadian Macroeconomics Study Group Meetings, and the Society for Economic Dynamics Meetings. We would like to thank V. V. Chari, Merwan Engineer, Don Ferguson, John Hillas, John Knowles, Dan Peled, Dan Usher, Linda Welling and Julian Wright for helpful comments. We are especially grateful to an anonymous referee for some very useful and substantive comments.     

The Bank of England quarterly model of the UK economy

The Bank of England first acquired a macroeconomic model of the UK economy in early 1973, and used it for forecasting in June and July of that year. The initial model was obtained from the London Business School (LBS), but the last 14 years or so have, on the part of both the Bank and the LBS, led to developments which now make the models no closer to each other than to other large scale models of the UK. This article describes the structure and central properties of the current version of the Bank model, which has some 663 variables, 134 of which are modelled by behavioural equations, 153 by technical equations, 212 identities and 164 exogenous variables. In order to provide a transitional step between the kind of models with which most macroeconomists are familiar and the full scale version of the Bank model, one part of the article presents a very simple stylized version of the full model. This is a stepping stone to the full model which is described and analysed on a sectoral basis in Part 3, with a complete listing of equations in Part 4. Some of the simulation properties, and hence full model dynamic responses, are considered in Part 5.     

Workplace values and beliefs: an empirical study of ideology,high commitment management and unionisation

This study is unique in that it examines both managers' and workers' values and beliefs about employment relationships. It found that managers consider the employment relationship in their own workplaces unitarist rather than pluralist, but have mixed ideologies when considering society as a whole. Workers are strongly pluralist when considering society as a whole, but their workplace ideology is somewhat unitarist. A modest union impact on workers' perspectives is found, but little evidence to suggest union's effect commitment to the employing organization. Workers' commitment is to personal careers first and the organization second, while managers put the organization ahead of personal careers. Correlations exist between unitary views of the employment relationship, increased High Commitment Management (HCM) practices, and high levels of commitment. The purpose and contribution of this study is that it reports an assessment of the relation between workplace attitudes and beliefs and the efficacy and influence of management and union initiatives designed to impact them.