EXTRAORDINARY ITEMS AND INCOME SMOOTHING: A POSITIVE ACCOUNTING APPROACH

This is an empirical study of single-period income smoothing which uses an incentives-based model to explain classificatory choices. An index is constructed to measure the smoothing effect of these choices. Weighted least squares regression results indicate that classificatory choices consistent with smoothing are more likely to be observed in firms with high earnings variability, high dividend payout, substantial managerial holdings of share options and diffuse share ownership. The existence of material scope for smoothing strengthens these findings. The model as a whole is statistically significant and, although the proportion of variability in smoothing explained is modest, it compares very favourably with other accounting choice studies. The relationship between smoothing and alternative earnings management strategies, including big bath accounting, is explored.     

Pricing and Local Authorities

The erosion of local government's capacity to raise revenue from taxation might be expected to have led to changes in its approach towards charging for services. This article, based on research commissioned by the Local Government Management Board, shows that most local authorities still do not consider that charging for services would be either desirable or practical. This is not due to conservatism or inertia within local government, but the ethical and practical considerations surrounding raising revenue from a diverse set of services which are predominantly focused on social welfare.     

From coal mining to a high technology economy? the case of an innovation centre in South Yorkshire

The deep coal mining industry was in rapid decline in Britain in the 1980s and 1990s. In many localities formerly associated with the industry, there was a need to encourage diversification and innovation as a means of economic regeneration. The activities of one project which aimed at this are examined here.     

The international division of leisure: Tourism and the Third World

Despite the obvious attractions of tourism as a foreign exchange earner for a number of developing countries, the industry is dominated by the rich countries which appropriate most of the economic benefits from the tourist trade. This domination takes economic and political forms, and tends to increase over time as tour operators diversify and grow vertically. The policies open to LDCs to increase their returns are discussed, and the difficulties they may face are mentioned.     

Free banking and the stability of early joint-stock banking

Proponents of free banking argue that systems adopting theirpolicies will be stable. In this paper, we present evidencesuggesting that, in general, early joint-stock banking systemsdid not adopt free banking, and those that did proved to beunstable. In particular, we demonstrate that those systems imposingregulations were generally stable. We rationalise the successof regulation as a pragmatic solution to the time-inconsistencyproblem arising from the peculiar nature of the banking firm.Notably, we find that the ‘golden age’ of free bankingstability can be attributed to restrictions on the organisationalform of the early banking firm.     

Pluralism in retreat? A comparison of Irish and multinational manufacturing companies

Traditionally it has been argued that the industrial relations practices of multinational corporations tended to conform with the prevailing industrial relations practices of the host country. Recent arguments claim that this trend has now been reversed and a new orthodoxy prevails which originates in the multinational corporation's country of origin. Drawing on a sample of companies in the Irish manufacturing sector, this paper examines the extent of these changes through a comparison of indigenous and foreign companies. The evidence of change emerging from this survey does not fully support the hypothesis that the practices of multinationals are significantly different or that there is a new orthodoxy in industrial relations originating in the multinational sector. We suggest that the impetus for change in employment practices is not to be found in the multinational sector but in the dynamic nature of competitive markets and the increasingly international mobility of capital.