Regulatory Contracts and Stakeholder Regulation

Abstract **: This paper examines the application of the concept of a regulatory contract in the analysis of UK utilities regulation. It argues that there are serious problems in conceiving of regulatory relations as analogous to contracts, though particular contracts may be a useful tool in the regulatory armoury. This is partly due to problems with principal/agent theory, which has been conceived in different ways by economists and lawyers, and partly due to the essentially political nature of regulatory relations, which make it difficult to tie down regulatory discretion in ways which resemble contractual relations. There is also ambiguity as to who is principal and who is agent, with the danger of adopting a single theoretical category for relationships which are radically different. The early legal structures adopted for UK utility regulation did have elements of a regulatory contract, but with the growth of competition and social regulation, a different model, that of a network of stakeholders, has largely replaced it. This offers the opportunity to develop more sophisticated regulatory procedures, but does not replace the need for substantive values drawn from economics but also from public service values as guides for regulatory decisions .     

Advertising bans and product demand: how does marketing affect demand for a differentiated product?

Applied economists have made extensive use of product category time series studies to investigate the effects that an advertising ban might have on markets for potentially harmful products such as tobacco and alcohol. This paper argues that such studies can cast little light on the question, partly because they contain no plausible hypothesis of how advertising influences demand in a market for differentiated products. This paper extracts such an hypothesis from literature on the psychology of consumer behaviour, and uses it in simple economic model of a differentiated product market. The analytical results are sensitive to the precise assumptions made about the competitive structure of the market. This apparently negative conclusion is an important warning against making over-generalized predictions about the effects of an advertising ban. Finally, the paper makes several proposals about how its hypothesis could be tested empirically.     

Unravelling the complexities of high commitment: an employee‐level analysis

Research within HRM has faced criticism for failing to focus adequately on employee experiences of HR practice. In particular, the ‘high‐commitment’ models fail to recognise employee perspectives on HRM, the complexities of the commitment construct and the possibility that organisations configure HR systems in various ways. This paper explores the impact of employee attitudes towards HR practices on affective, continuance and normative commitment, and intention to leave in three organisational contexts. The findings suggest that different HR systems can yield different attitudes towards HR practices, which in turn can impact on different forms of commitment and levels of intention to leave. The findings provide insights into the ways in which organisations manage the commitment process through HR practices and the response by employees to these interventions.     

创造亚洲人自己的美感

在台湾，有一位创投界的人士通过朋友找到我，希望我为他做造型设计。因为他的工作比较专业，接触的客户以日本为主，他希望做出来的发型既能够衬托他的专业，又使他看起来很沉稳。我觉得这是一个误区，一个人的专业程度是靠自身的言行举止表现出来，而不是用发型去体现，发型完全可以是时尚、活跃的。他接受了我的建议，发型做出来以后非常满意。     

Empirical tests of the float-adjusted return model

This paper implements empirical tests of the recently proposed float-adjusted return model by using Chinese stock-market data. The results show that variation in free float can explain cross-sectional variation in asset returns by about 6.7% annually, after we control for market risk, size, and book-to-market equity. In addition, we also find that size and book-to-market equity help explain cross-sectional variations in returns even after controlling for free float.     

Small Business Growth in the Short Run

This paper examines the determinants of short run employment growth in very small firms in the Services sector. The study shows evidence of non linearities in the growth-size relationship, and it is argued that these non linearities reflect the short run constraints that small firms face in adjusting to demand shocks. The paper also suggests that there are other systematic influences on growth apart from size. The paper draws on survey evidence from the Northern Region of the United Kingdom.     

Human Resource Management and Corporate Performance in the UK

The relationship between HRM and performance was explored in 366 UK companies using objective and subjective performance measures and cross‐sectional and longitudinal data. Using objective measures of performance, greater use of HRM is associated with lower labour turnover and higher profit per employee but not higher productivity. After controlling for previous years’ performance, the association ceases to be significant. Using subjective performance estimates, there is a strong association between HRM and both productivity and financial performance. The study therefore confirms the association between HRM and performance but fails to show that HRM causes higher performance.