Operational risk and equity prices

We use an empirical model to categorize firms into portfolios based on operational risk. Using these portfolios, we show that a strategy of buying firms in the highest decile of operational risk and shorting firms in the lowest decile of operational risk earned a positive but insignificant risk-adjusted average return of 0.72% per month from 1990 to 2000. However, from 2001 to 2010, the same strategy earned a significantly negative risk-adjusted average return of ?1.50% per month. This change occurred during a time characterized by an increasing number of high profile operational losses and regulatory changes surrounding operational risk.     

Why Marx Neither Has Nor Needs a Commodity Theory of Money

This paper argues, contrary to the standard interpretation, that money in Marx's theory is tied neither to bullion nor to any commodity basis. It is rather the sole social form of value autonomous from use-value. This is demonstrated by reference to Marx's account of the social functions of money, and by showing that to subsume 'money' under 'commodity' commits a category mistake within Marx's system. My argument is conceptual rather than historical. It seeks to locate, not to deny, the role of 'gold' in Marx's monetary theory. It has relevance to contemporary debates about the need for some new 'gold-standard' to sustain the international monetary system.     

Inverting the Classroom: A Gateway to Creating an Inclusive Learning Environment

Asserting that “elementary teachers are going to become increasingly involved with economic concepts, and that economic education at the elementary level is at an important developmental state,” Professor Ramsett explains how economics can be included in the elementary school curriculum without taking other subject matter out, and suggests approaches to the training of elementary teachers. He describes some innovative techniques being used at North Dakota's New School of Behavioral Studies, illustrates methods for motivating pupils, shows how economic concepts can be related to other subjects (such as arithmetic), and calls for cooperation between educators and liberal arts faculties in preparing the elementary teacher.     

Examining the link between skill shortages,training composition and productivity levels in the construction industry: evidence from Northern Ireland1

One of the key questions in international research addresses the tensions arising from international co-ordination and local adaptation of multinational companies' (MNCs) policies and practices. The German business system encourages MNCs to have a long-term, high-investment orientation, to practise intensive management-labour cooperation and to pursue developmental human resource management (HRM). This study analyses six major German MNCs operating in both Britain and Spain and outlines their reasons for the international co-ordination of HRM. It addresses the issue of central control versus local adaptation by looking at the transfer of German HR policies and practices. The cases show that the MNCs were able to preserve substantial ‘German-ness’ abroad. However, the results of the transfer of German HRM were not always positive due to a variety of endogenous and exogenous causes. Barriers to transfer from institutionally strong to weak environments are discussed and possible internal HR approaches are suggested to counterbalance the national business system effect. Their success will depend on head office-foreign affiliate relations shaped by factors such as cross-border communication, trust and power distribution.     

Fiscal implications of climate change

Climate change is an externality problem—so the challenges that arise in limiting it and dealing with the effects that remain are largely fiscal. The structure of the problem, however, and the uncertainty which surrounds it, make the design of proper policy responses particularly complex. This paper provides a primer on the fiscal implications of climate change, the aim being to provide a (reasonably) quick and comprehensive overview of the main analytical issues and lessons learned.     

Public Service Leaders as ‘Change Agents’ – for Whom?

Abstract

This article examines how far senior staff in English educational and health service organizations view themselves as leaders who are ‘change agents’ for government-driven reform and independent change agendas. The contribution of external leadership development provision to shaping these self-perceptions is explored. Special attention is paid to national leadership development bodies with different degrees of formal association with government. Whatever this relationship, such provision and other development support apparently reinforced a strong sense of personal agency (choice of action) associated with being a leader, empowering senior staff to adopt a modestly mediatory stance towards both reform and leadership development provision.