Do free-market governments create crisis-ridden societies?

The paper is concerned with the potential or actual impact that free-market governmental principles and policies might have, or might have had, in helping to create a more crisis-prone world. It is concerned with organizationally-induced crises where organizations and their environment interact to create disasters. The nature of the crisis-prone organization is discussed in the context of the relevant management literature. It is argued that the disastrous interaction of such an organization with its environment is promoted by a laisser-faire attitude on the part of the authorities. This is illustrated in the context of two recent British disasters involving the King's Cross Underground fire and the sinking of the Herald of Free Enterprise.Peter Curwen is Professor of Business at the Policy Research Centre of the Sheffield Business School, Sheffield Hallam University, U.K. He is editor of theReview of Policy Issues. He has published extensively in the fields of political economy, privatization, and the emerging social and industrial policy of the European Union.Dr Bill Richardson is Senior Research Fellow with the Change Management Research Centre at the Sheffield Business School. He is the author of more than fifty articles and books on the topic of Management Strategy and is editor ofSmall Business and Enterprise Development, a refereed journal which serves the small business and enterprise sector of the U.K.     

THE REGULATION EFFECT OF CREDIT RATINGS ON BOND INTEREST YIELD: THE CASE OF JUNK BONDS

This paper examines the 'regulation effect' of bond ratings of yield. It is shown that the high yield premia on 'speculative bonds' not only reflect the high probability of default, but also contain an effect of regulation. A multiple discriminant analysis (MDA) technique is used to separate the default component of yield premium from the regulation effect. The results in the study suggest that non-regulated investors, by taking advantage of the regulation effect, may earn an extra premium on a diversified portfolio of 'speculative bonds', at least for the period under this study (from January 1982-June 1987).     

Partnership and regional tourism in Brazil

Partnerships in planning for regional development can bring together stakeholders representing interests at national, regional, and local geographical scales. This paper examines a regional tourism development partnership in Northeast Brazil. It explores the effects of socioeconomic and political contexts on this collaborative arrangement, the processes of joint working, and how participation was extended to parties not attending the regular meetings. The partnership focused on coordination among government organizations at different spatial scales and with various functions, with participants largely confined to the public sector. Using this assessment, an analytical framework is presented to assist other researchers interested in this theme.     

The Denial of Slavery in Management Studies

abstract American slavery has been wrongfully excluded from histories of management. By 1860, when the historical orthodoxy has modern management emerging on the railroads, 38,000 managers were managing the 4 million slaves working in the US economy. Given slaves’ worth, slaveholders could literally claim ‘our people are our greatest asset.’ Yet a review of histories of management shows ante‐bellum slavery excluded from managerial modernity as pre‐capitalist, unsophisticated in practice, and without non‐owner managers identified as such. These grounds for exclusion are challenged. First, it is shown slavery is included within capitalism by many historians, who also see plantations as a site of the emergence of industrial discipline. Second, ante‐bellum slavery is demonstrated to have been managed according to classical management and Taylorian principles. Third, those doing the managing are shown to have been employed at the time as ‘managers’. In the idea of the manager, and of scientific and classical management slavery has therefore left an ongoing imprint in management practice and thought. A strong argument is made for not just for postcolonialist accounts of management, but for management histories in which anti‐African‐American racism is a continuing strand. The fundamental significance of the article however is its identification of slavery as of intrinsic, but hitherto denied, relevance to management studies.     

NONSTATIONARITY OF BETA AND TESTS OF MARKET EFFICIENCY

Conclusions from event type studies are usually supported by data generated from some form of the market model. This study examines the robustness of these conclusions to different static and dynamic estimates of beta when the event under investigation occurs during a period of changing systematic risk. The results indicate that when beta is nonstationary, the findings of market inefficiency (or efficiency) in previous studies may be an artifact of the static beta estimation method.     

Livelihood rights perspective on water reform: Reflections on rural Zimbabwe

The right to water has been adopted as a human right in General Comment 15 by the Committee on Economic, Social and Cultural Rights. It provides a new framework for law and policy supplanting the Dublin Principles that have too often been understood in the African context to mean water with the ‘right’ price. Does a human rights approach to water, especially in rural contexts, speak to the multiple ways in which men and women share and manage water? How are water tenure and land tenure linked in Zimbabwe's rural areas? We examine if and how local norms and practices include water within a broader right to livelihood. Substantial field research in Zimbabwe including ours demonstrates the existence of a right to water and livelihood, which can be responsive to gender and poverty. We suggest the incorporation of local norms and practices within water management laws and policies at regional, national and local levels.     

Family supportive organization perceptions and employee outcomes: the mediating effects of life satisfaction

Social exchange theory was used to understand employee perceptions of organizational support for work–family issues in this study of 373 employees from 40 New Zealand firms. These perceptions of family support were found to positively influence job and life satisfaction, and negatively influence turnover intentions and job burnout. Consequently, there is strong support for firms supporting work–family issues leading employees to reciprocate with superior outcomes. In addition, the mediating effects of life satisfaction were explored, as there have been calls to test the effects of existing relationships outside the workplace. While life satisfaction was not found to fully mediate any attitude, it did partially mediate all outcomes. Similarly, life satisfaction was also a significant predictor of all outcomes. This indicates that the role of firms in providing a supportive work–family climate is important and can consistently contribute to employee outcomes. Furthermore, the role of non-work attitudes is also important to acknowledge, and highlights the need to explore non-work aspects as potential mediators of work outcomes in social exchange relationships.     

The 1999 Small Employer Retirement Survey

Abstract

In this article we examine to what extent policyholders buying a certain class of participating contracts (in which they are entitled to receive dividends from the insurer) can be described as standard bondholders. Our analysis extends the ideas of Biihlmann and sequences the fundamental advances of Merton, Longstaff and Schwartz, and Briys and de Varenne. In particular, we develop a setup where these participating policies are comparable to hybrid bonds but not to standard risky bonds (as done in most papers dealing with the pricing of participating contracts). In this mixed framework, policyholders are only partly protected against default consequences. Continuous and discrete protections are also studied in an early default Black and Cox-type setting. A comparative analysis of the impact of various protection schemes on ruin probabilities and severities of a life insurance company that sells only this class of contracts concludes this work.     

H1N1 – the social costs of élite confusion

In May 2011, the World Health Assembly will receive the report of its International Health Regulations Review Committee examining responses to the outbreak of the 2009 H1N1 pandemic influenza and identifying lessons to be learnt. This will emphasise the need for better risk communication in future. But risk and communication are not objective facts; they are socially mediated cultural products. Responses to crises are not only simply determined by the situation at hand, but also through mental models developed over protracted periods. Accordingly, those responsible for advocating the precautionary approach and encouraging the securitisation of health, that both helped encourage a catastrophist outlook in this instance, are unlikely to be held to account. These élite confusions have come at an enormous cost to society.