Segmental Disclosure Practice: Thirteen Years On

In an age of financial disclosure directed by professional standards, the changes in practice voluntarily undertaken by companies are sometimes difficult to detect. By focusing on a period prior to the introduction of SSAP 25, the segmental disclosure issue offers an opportunity to consider whether practice has voluntarily changed. An examination of the extent and quality of segmental disclosure, for a specific group of companies over an extended period, offers an indication of the need for a standard or further regulation. If it can be demonstrated that disclosure practice has improved under a primarily self-regulatory framework, the need for a standard like SSAP 25 may be questioned. The segmental disclosure practices of the same group of seventy companies are compared for the reporting years 1975–6 and 1988–9. Whilst an underlying improvement in respect to business activity disclosure is revealed, the same cannot be claimed for geographic segmental disclosure. Not only has the number of companies reporting profit by geographic segment declined but also the consistency with other aspects of the annual report has reduced.     

Japanese Foreign Direct Investment in the UK Electronic Industry: The Eclectic Approach

This article analyses the combined effects of Japanese firms' ownership and location advantages on the size of foreign direct investment (FDI). The size of FDI is measured by two proxies, the firm's employment level and its total assets. Econometric models are estimated. The estimated regression models show that the parent company's firm-specific resources and the external economies in the located region determine the flow of FDI at the time of entry of Japanese electronic firms in the UK. This result shows that empirical analysis on FDI flows should combine both the ownership and location advantages, as suggested by Dunning's eclectic paradigm.     

Political versus economic institutions in the growth process

After a decade of research on the relationship between institutions and growth, there is no consensus about the exact way in which these two variables interact. In this paper we re-examine the role that institutions play in the growth process using data for developed and developing economies over the period 1975–2005. Our results indicate that the data is best described by an econometric model with two growth regimes. Political institutions are the key determinant of which regime an economy belongs to, while economic institutions have a direct impact on growth rates within each regime. These findings support the hypothesis that political institutions are one of the deep causes of growth, setting the stage in which economic institutions and standard covariates operate.     

Poverty,disputes, and access to justice in two Indonesian provinces

This analysis explores the determinants behind the unequal access to justice services among poor Indonesians. The study analyzes the stock of observed past disputes by socioeconomic group and the demand for conflict resolution services for unresolved conflicts or “trajectories.” It also models the hypothetical demand of justice services for future disputes. Results suggest that unequal access to justice might go beyond the financial costs of seeking justice and also depends on individual preferences and community infrastructure. These findings warn against focusing exclusively on formal justice costs to improve the equal access of the poor to conflict resolution services.     

Estimating the speed of adjustment of European banking efficiency under a quadratic loss function

This paper investigates the speed of adjustment of cost efficiency to equilibrium level in the European banking industry. Our analysis provides for the first time insights into the process of convergence across European banking markets as measured by the speed of adjustment of cost efficiency. In particular, we employ a quadratic loss function specification based on forward-looking rational expectations to model the underlying dynamics of efficiency scores in the banking industry of the EU-15 region over the period 1998–2005. Results show that there is considerable variation in the speed of adjustment across banking systems, while over time it appears that continuing efforts to advance financial integration have led to some improvement in the speed of adjustment to the long-run equilibrium.     

Love thy children or money

This paper presents a simple OLG model which is consistent with observed consumer behavior, capital accumulation and wealth distribution, and yields some new conclusions about fiscal policy. By considering a society in which individuals are distinguished according to two characteristics, altruism and wealth preference, we show that those who in the long run hold the bulk of private capital are not so much motivated by dynastic altruism as by preference for wealth. In this setting, estate taxation is a questionable instrument of redistribution: it penalizes the wealthy, but favors the top wealthy. On the other hand, even though Ricardian equivalence holds, both public debt and PAYG pensions lead to a transfer of resources from the top wealthy to the other individuals.     

SURVEYING THE ECONOMICS OF PLURAL MODES OF ORGANIZATION

Why do firms concomitantly rely on more than one organizational arrangement to procure/distribute a given input/product? In this paper, we systematically review and discuss the extensive path undergone by the literature exploring this issue: the so‐called plural forms. We address two main questions: how to explain the coexistence (and often the prevalence) of plural forms in many types of businesses? Are plural forms stable or a transitory phenomenon? We describe the most prominent motivations identified in the economics and management literature that drive firms to adopt plural forms and show that their vast majority are related to the mitigation of various types of agency/transaction costs. We also demonstrate that most of the available pieces of empirical evidence suggest the stability of plural forms over time. We conclude by demonstrating the path that has been trailed by the most recent developments.     

The impact of integrated livestock disease management for food security in Togo

In sub-Saharan Africa, livestock is one of the key channels through which most households meet their food security needs. However, diseases such as the African Animal Trypanosomosis (AAT) constrain productivity. Using data from 445 randomly sampled small-scale cattle farmers, this paper investigates the role of integrated livestock disease control on household food security. Using a novel approach to link different food security measures to cattle productivity, the paper identifies the channels of impact at the household level. Methodologically, the paper estimated the propensity score matching algorithm to net out the effect of adoption. The results show that households who adopt RDU have record livestock productivity and higher consumption per capita expenditures. They tend to be more food secure, experience lower seasonal food supply fluctuations and experience a lower probability of falling below the food poverty line.