Building successful brands: The strategic options

The debate on whether to include brands on the balance sheet has created a new interest in branding strategies. Successful brands clearly generate higher returns on sales and on investment. But quality and service, rather than advertising, is the best way of creating such brands. Acquisition strategies frequently produce inconsistent portfolios of brands. The policy towards brand extension is shown to depend upon the similarity of positioning strategies between current and new brands.     

Managing Interactions between Technological and Stylistic Innovation in the Media Industries

The processes of technological innovation have been widely researched, but their interactions with another type of innovation that is particularly important in sectors like the fashion and the media content industries have been neglected: stylistic innovation. This paper puts forward the idea that a better understanding of such interactions between content and technology in the media industries might help explaining differences in the receptiveness of firms towards new technological opportunities. The nature of the interactions, so it is argued in this paper, depends on three groups of key factors at the level of the product, the organization and the industry: among them, first, the locations of the different types of innovation in the media product's components; second, organizational factors like the identity and the reputation of a firm with respect to the above types of innovation; and third, the industry-specific characteristics of the certification environment in which the firms operate. Awards are discussed as specific instantiations of micro certification environments indicating quality with respect to stylistic and/or technological product features. To round off the theoretical part, a definition of stylistic innovation is developed with reference to the key concepts discussed in this paper. Within the media sector the literary publishing industry has been chosen to provide the subject of the empirical part. Two cases related to the introduction of eBook technology are presented: one is a study of the first digital literary publisher in Europe and the other is a case study of the first international eBook award, which mixes technological and stylistic criteria. Theory and cases lead to a number of hypotheses offered as potential departure points for future research into the interactions between innovation in style and technology.     

Innovation and Information Acquisition under Time Inconsistency and Uncertainty

When an agent invests in new industrial activities, he has a limited initial knowledge of his project's returns. Acquiring information allows him both to reduce the uncertainty on the dangerousness of this project and to limit potential damages that it might cause on people's health and on the environment. In this paper, we study whether there exist situations in which the agent does not acquire information. We find that an agent with time-consistent preferences, as well as an agent with hyperbolic ones, will acquire information unless its cost exceeds the direct benefit they could get with this information. Nevertheless, a hyperbolic agent may remain strategically ignorant and, when he does acquire information, he will acquire less information than a time-consistent type. Moreover, a hyperbolic-discounting type who behaves as a time-consistent agent in the future is more inclined to stay ignorant. We then emphasize that this strategic ignorance depends on the degree of precision of the information. Finally, we analyse the role that existing liability rules could play as an incentive to acquire information under uncertainty and with regard to the form of the agent's preferences.     

Incomplete model specification in a multi-pollutants setting: The case of climate change and acidification

This paper analyses the consequences of incomplete environmental model specification on policy design in a multi-pollutants framework. Focusing on the correlations between aerosols and greenhouse gases, the paper compares abatement and stock targets setting for various cases of incomplete model specification. Both cases of lax and stringent regulation, compared to what is socially optimum, may arise. Furthermore, the lax/stringent nature of the policies may evolve over time, so that the time horizon of policy design matters in assessing the impact of incomplete model specification.     

An Empirical Analysis of the Ethical Reasoning of Tax Practitioners

How tax practitioners approach ethical dilemmas remains generally unexplored in academic literature. We use here Rest’s original Defining Issues Test (Development in judging moral issues. Minneapolis: University of Minnesota Press, 1979; Moral development. Advances in research and theory. New York: Praeger Publishers, 1986), combined with a tax context-specific test and in conjunction with a control group of non-tax specialists, to examine tax practitioners’ moral reasoning in a social and tax context. We investigate: (i) the effect of a tax context on issues raised (finding that practitioners generally reason at lower levels than in social scenarios); (ii) whether the profession attracts people who reason at certain levels (finding that it does not); and (iii) whether practitioners are affected by training/socialization in their professional context (finding that that they are).     

New development: A game of responsibility? The regulation of health and social care professionals

The UK's law commissions in a recent joint report have recommended that individual regulatory bodies for medical and other healthcare professions receive more decision-making power and that procedural regulation (for example fitness to practice proceedings) be standardized. Patient wellbeing and professional standing of practitioners are likely to be deeply affected. The legislative process needs to be scrutinized closely to ascertain that government and regulatory bodies do not use the reform to shirk accountability and engage in a blame game.     

More strategies, more Nash equilibria

We show in this paper that for the class of two-player games with compact real intervals as strategy spaces and continuous and strictly quasi-concave payoff functions there exists a monotone relation between the size of strategy spaces and the number of Nash equilibria. These sufficient conditions for our theorem to hold are shown to be tight.     

Private Equity Involvement and Earnings Quality

Abstract:  This paper examines the relation between private equity (PE) investors' involvement and their portfolio firms' earnings quality. We operationalize earnings quality through comparative analyses of conditional loss recognition timeliness. For a sample of unlisted Belgian firms, we find that PE involvement increases a firm's willingness to recognize losses more timely as compared to industry, size and life-cycle matched non-PE backed firms. Further, we document more powerful earnings quality effects for firms backed by independent and captive PE-investors as compared to firms backed by government-related PE-investors. Finally, we find no systematic variation in earnings quality across different levels of PE ownership. Our results are robust to the inclusion of various controls and remain unaffected when we consider the endogeneity of PE investments and compare pre- and post PE investment years. The current results provide novel evidence towards the understanding of PE investors' governance implications for portfolio firms' earnings quality.     

The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data

We estimate a model of crime using panel data for the U.S. We focus on the role of labor markets, income distribution, and demographics on property crime. We find strong evidence that favorable labor market conditions have a significant negative effect on property crime. We further test this result using sector-specific wages and find that crime is most elastic with respect to wages in sectors that use low-skilled labor. We also find that income inequality has no significant effect on crime and that the proportion of young males in the population has a significant positive effect on crime.     

The Centrality of Community Capacity in State Low‐income Housing Provision in Cape Town,South Africa

The development of low‐income housing continues to be a political imperative and an urban reconstruction priority for the post‐apartheid South African state. But, even though policies for housing construction and delivery by the state are in place, in practice many homeless families initiate, direct and drive the process through which they secure state‐provided housing. I analyse in this study two such cases where homeless residents in peripherally located, poor areas of the Cape Metropolitan Area successfully accessed state‐provided housing. In both instances, homeless families organized around the different sets of capacities that structured the nature of the linkages that each forged to resources outside of their respective areas, and thus the ways in which they pursued their need for housing. I argue in this study that uneven and place‐specific, community‐based capacity often directs the manner in which communities interpret, interface with and access state‐run urban reconstruction projects such as housing provision. An analysis of community‐based capacity thus proves useful to investigate the potential and the problems that underlie state initiatives for development and the manner in which communities participate and engage with urban reconstruction and development. L'expansion du logement social reste un impératif politique et une priorité de la reconstruction urbaine pour l'État sud‐africain de l'après‐apartheid. Des politiques de construction et de fourniture de logements par l'État ont été mises en place mais, en pratique, de nombreuses familles sans‐domicile induisent, orientent et mènent le processus par lequel elles s'assurent un logement public. Cette étude analyse deux de ces cas dans lesquels des sans‐domicile vivant dans des quartiers pauvres à la périphérie de la zone métropolitaine du Cap ont réussi à se loger. Dans les deux situations, les familles se sont organisées autour des capacités spécifiques qui structuraient la nature des liens établis pour trouver des ressources hors de leurs quartiers respectifs, définissant ainsi leurs modalités d'action pour obtenir un logement. L'étude démontre qu'une capacité inégale, particulière à un lieu et à un groupe, oriente souvent la manière dont les communautés interprètent, interagissent avec et accèdent aux projets de reconstruction urbaine menés par l'État tels que la fourniture de logement. Il apparaît donc utile d'analyser la capacité propre à une communauté, si l'on veut déterminer non seulement le potentiel et les problèmes fondamentaux des initiatives gouvernementales de développement, mais aussi la manière dont les communautés participent et contribuent à la reconstruction et à l'aménagement urbains.