European integration and corporate restructuring: the strategy of Unilever,c.1957–c.19901

European integration and corporate restructuring: the strategy of Unilever, c.1957‐c.1990. While much has been written about the politics of European integration, discussion about the role of business in this process has been largely confined to lobbying activities. This article focuses on the business reaction to European integration. It highlights the constraints facing one of Europe's largest firms in building a regional detergents business. These included divergences in market demand and political obstacles to rationalization, but more serious was a corporate culture based around local decision making and consensus. The study demonstrates that a full understanding of the European integration process must incorporate a firm‐level analysis of how Europe‐wide businesses were built after 1957.     

The Withdrawal of Current Cost Accounting in the United Kingdom: A Study of the Accounting Standards Committee

Evidence from the archives of the U.K. Accounting Standards Committee (ASC) is used to trace the events leading to the withdrawal of the current cost accounting standard, SSAP 16, from 1980 to 1988. Three central issues are addressed. First, the ASC's role as a regulatory body is considered in the light of the failure to obtain compliance with SSAP 16 and to find an acceptable replacement. Second, the decline in support for SSAP 16 is explained in terms of changes in the economic environment. Third, the roles of different interest groups in the process are analysed.     

Economic Viewpoint:The Medium-term Financial Strategy

A medium-term financial plan was proposed in the October 1977 Economic Outlook. The essential idea was that the government should show that its plans for public expenditure and revenue were consistent with the objective of reducing monetary growth and thereby the rate of inflation in the medium term. The Budget speech of March 26 introduced a Medium-term Financial Strategy. (The word "Plan" is politically unacceptable.) This Viewpoint evaluates the strategy and considers some of the criticisms that have been made of it.     

Economic Viewpoint: The real wage debate

Why is unemployment so high in Britain? Is it because demand is too weak or is it because real wages are too high? Many participants in the debate are trying to insist that it must be one or the other. In practice it is perfectly sensible to believe that both causes are involved, so that a fall in unemployment will require both a rise in demand and a fall in real wages. In this Economic Viewpoint we discuss the economic analysis involved; we investigate some of the relevant evidence and we explore some policy options.     

Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies

We show that measurable managerial characteristics have significant explanatory power for corporate financing decisions. First, managers who believe that their firm is undervalued view external financing as overpriced, especially equity financing. Such overconfident managers use less external finance and, conditional on accessing external capital, issue less equity than their peers. Second, CEOs who grew up during the Great Depression are averse to debt and lean excessively on internal finance. Third, CEOs with military experience pursue more aggressive policies, including heightened leverage. Complementary measures of CEO traits based on press portrayals confirm the results.     

Inflation Dynamics When Inflation Is Near Zero

We discuss the likely evolution of U.S. inflation in the near and medium terms on the basis of (i) past U.S. experience with very low levels of inflation, (ii) the most recent Japanese experience with negative inflation, and (iii) some preliminary U.S. micro evidence on downward nominal wage rigidity. Our findings question the view that stable long‐run inflation expectations and downward nominal wage rigidity will necessarily provide sufficient support to prices to avoid further declines in inflation. We show that an inflation model fitted on Japanese data over the past 20 years, which accounts for both short‐ and long‐run inflation expectations, matches the recent U.S. inflation experience quite well. While the model indicates that U.S. inflation might be subject to a lower bound, it does not rule out a prolonged period of low inflation or even mild deflation going forward. In addition, micro‐level data on wages suggest no obvious downward rigidity in the firm's wage bill, downward rigidity in individual wages notwithstanding. As a consequence, downward nominal wage rigidity may not be enough to offset deflationary pressures in the current situation.     

ACCESS,ALLOCATION AND TRANSFERS IN COUNCIL HOUSING:

The authors of this paper consider current practices in respect of access, allocation and transfer in public sector housing.