a beast of burden

How great is the burden of bureaucracy on the entrepreneur? Mike Fisher, an IEA trustee, writes from personal experience as managing director of Whale Tankers, a small private manufacturing company.     

全球化工"绿色"盎然

在过去的十年中．人们在改变化学工业发展理念和政府对待污染防治的态度方面获得了巨大进展．而且已经触及“绿色”化工。事实上，由于有“绿色”化工的诱人前景作为发展动力。全球化学工业逐步变“绿”将成为不可阻挡的发展趋势。     

Venture Capitalists, Business Angels, and Performance of Entrepreneurial IPOs in the UK and France

Abstract:  Using a unique sample of 444 entrepreneurial IPOs in the UK and France, this paper analyses the investment patterns and the stock-market performance effects of two types of early stage investors: venture capitalists (VCs) and business angels (BAs). Extending existing research, we identify important endogeneity and institutional effects. Our findings indicate that UK IPOs have a higher retained ownership and lower participation ratio by BAs, but a lower retained ownership and participation ratio by VCs than in France. BA and VC investments are substitutes, and they are endogenously determined by a number of firm- and founder-related factors, such as founder ownership and external board 'interlocks', and underwriter reputation. UK VCs are effective third-party certifying agents who reduce underpricing in UK IPOs, whereas in French IPOs they increase it by appearing to engage in grandstanding. This certification effect is more significant in UK IPOs involving both high VC and BA ownership. Finally, underpricing increases with VC participation ratio, where the higher exit of VCs seems to increase the risk premium required by outside investors, in particular in the UK.     

Restoring balance: How history tilts the scales against privacy. An Actor-Network Theory investigation

In this paper we problematize the metaphor of balance employed in the area of information privacy. Using Actor-Network Theory we conduct an historical investigation into the continuous release of the same personal data over the course of eight decades. Through the examination of actual enactments of balance over time we find that, in practice, balancing acts are conducted at local levels by local actor-networks within organizations, with limited overall organizational knowledge, raising challenges around interpreting statements made by organizational spokespersons. We also find a surprising lack of knowledge possessed by these local actor-networks about what is subsequently done with personal data and the extent to which networks that extend beyond the organization gravitate towards and form around available data. Through tracing and revealing this historical Actor-Network Theory investigation provides a means of probing and examining actual acts of balance in the area of information privacy and, through revelation, aid in the creation of the possibility of bringing the act of balance more in line with the concept.     

Inflation Targeting: What Can the ECB Learn From the Recent Experience of the Bank of England?

Establishment of the European Central Bank presents a rare opportunity to define the operations of a central bank without a prior track record. This paper asks what might be learnt from the recent experience of inflation targeting at the Bank of England before the ECB specifies an, as yet undefined, operational target. We consider whether there should be single or multiple targets and which inflation measure should be used, if at all. If inflation is targeted then a forecast of its value becomes the intermediate variable. This raises an issue of transparency and the compensating supply of information necessary to fill the gap, but too much 'openness' can also be problematic. The ECB must be accountable and the contracting approach may be useful although being seen to 'say' and 'do' the same thing is ultimately most important.     

Firm and Industry Effects of Advertising Accountancy Services

This article takes up the theme of the growing importance of the need to market financial and professional services by an examination of the case of accountancy services. Recent relaxations on the advertising of accountancy service call for an examitration of the appropriate marketing strategy for accounting firms. Discussion in the article indicates that firm size will have an important influence on the appropriateness of advertising and the form that it fakes. Advertising should form part of an integrated marketing strategy and not be seduced by the relaxation of the controls into focusing attention solely on this one aspect of marketing. As regards industry effects, advertising may be seen to reinforce concentration in the provision of both audit and particrtlarly non-audit services. There are benefits to smaller firms, however, through the use of advertising to emphasise specialist skills. In terms of conduct, advertising may help build up a barrier to entry into the provision of certain services, but is unlikely to replace price competition for the capture of audit clients as a key to the provision of non-audit services.     

The Impact of Regulation on the Strategy and Structure of Building Societies

A new Building Societies Act was passed in July 1986, radically changing the regulatory framework governing societies which had remained in force since 1962. The provisions of the Act allow societies to move into areas of activity from which they have previously been prohibited. At the same time that legislation was being passed specifically relating to building societies, the whole of the personal financial services market was experiencing what is generally seen as a revolution. Hence societies find themselves at a development crossroads at a time of great uncertainty. Although there has been much informed and some speculative comment, there has hitherto been little attempt at quantifying the likely future directions that building societies will take. This article seeks to remedy this situation by drawing upon the results of two surveys in which senior building society executives and their counterparts in other financial institutions were invited to give their views on the trends in personal financial services provision over the next five years.