Disposable versus reusable linen: back to the future

Decisions regarding health care practices and technology are never static. As new information becomes available, and internal and external forces shift, new decisions may have to be made. Such is the decision regarding reusable versus disposable linen. Until very recently, reusable linens were not comparable with disposable linen in the quality characteristics that directly impact patient and staff safety and health. Given the current test results on the latest generation of reusable fabrics, it is time to go back to reconsider this decision for the future.     

Lifting physical and institutional barriers to development on a small‐scale irrigation scheme

If it is accepted that both the system and the individual can act as barriers to development at the micro‐level, development policy could be aimed at identifying the major causes and sources of inefficiency and removing the existing barriers to the achievement of efficiency.

In this article the major barriers to system efficiency are identified as being physical and institutional, and they include the physical structure of irrigation schemes, the land tenure system and the marketing structure. A theoretical discussion of each of these factors is used to propose more specific strategies for micro‐level rural development.     

Marketing versus public relations in selling nuclear power

All too often, the terminology and practices of public relations are used when marketing is what is really needed. This misapplication appears most often when a concept, an idea, or an intangible product is involved. Webster defines public relations as: relations with the general public through publicity; those functions of a corporation, organization, branch of military service, etc., concerned with informing the public of its activities, policies, etc., and attempting to create favorable public opinion.This definition implies a general, ongoing effort to supply information supporting the image of an organization. There is, however, a considerable difference between this kind of activity and the specific, overt process of marketing. This difference has been particularly apparent in attempts of public utilities to “sell” nuclear power plants. Utilities, of course, are monopoly suppliers and, as such, must seek a favorable image in the community. Thus, when public opposition to nuclear power plants mounted, many utilities responded with stepped-up public relations programs; the method they knew best. This article examines the experience of several utilities in locating nuclear plants and suggests how marketing techniques might be used in selling this intangible product.     

Does the Market Value Financial Expertise on Audit Committees of Boards of Directors?

We examine three‐day cumulative abnormal returns around the announcement of 702 newly appointed outside directors assigned to audit committees during a period before implementation of the Sarbanes‐Oxley Act (SOX). Motivated by the SOX requirement that public companies disclose whether they have a financial expert on their audit committee, we test whether the market reacts favorably to the appointment of directors with financial expertise to the audit committee. In addition, because it is controversial whether SOX should define financial experts narrowly to include primarily accounting financial experts (as initially proposed) or more broadly to include nonaccounting financial experts (as ultimately passed), we separately examine appointments of each type of expert. We find a positive market reaction to the appointment of accounting financial experts assigned to audit committees but no reaction to nonaccounting financial experts assigned to audit committees, consistent with accounting‐based financial skills, but not broader financial skills, improving the audit committee's ability to ensure high‐quality financial reporting. In addition, we find that this positive reaction is concentrated among firms with relatively strong corporate governance, consistent with accounting financial expertise complementing strong governance, possibly because strong governance helps channel the expertise toward enhancing shareholder value. Together, these findings are consistent with financial expertise on audit committees improving corporate governance but only when both the expert and the appointing firm possess characteristics that facilitate the effective use of the expertise.