An Instrument to Measure the ‘Degree of Professionalism’ in a Professional Service

Professional services have received considerable attention. This article describes a scale to measure the degree of professionalism of both a profession and an individual pro- fessional and use of the scale to differentiate between two sub-groups of the medical profession: general practitioners and medical specialists. As expected, medical specialists were found to be more professional. Possible managerial uses of the scale are discussed.     

Going overboard? On busy directors and firm value

The literature disagrees on the link between so-called busy boards (where many independent directors hold multiple board seats) and firm performance. Some argue that busyness certifies a director’s ability and that such directors are value enhancing. Others argue that “over-boarded” directors are ineffective and detract from firm value. We find evidence that (1) the disparate results in prior work stem from differences in both sample composition and empirical design, (2) on balance the results suggest a negative association between board busyness and firm performance, and (3) the inclusion of firm fixed effects dramatically affects the conclusions drawn from, and the explanatory power of, multivariate analyses. We also explore alternative empirical definitions of what constitutes a busy director and find that commonly used proxies for busyness perform well relative to more complex alternatives.     

Loan commitments and the management of uncertain credit demand

We provide an explanation for loan commitments unrelated to borrower creditworthiness. In our model, banks can use loan commitments to reduce uncertainty regarding their own future funding needs. Given a cost advantage to banks that can acquire such information, there exists an equilibrium demand for commitments by riskneutral firms. The purchase of the loan commitment and the choice of contract terms reveals the buyer's private information regarding future credit needs. In order to ensure the sorting of the a priori indistinguishable applicants according to their private information, we show that a usage fee applied to the commitment holder's unused credit line is necessary.     

British Science Parks: Reflections on the Politics of High Technology

Science parks—high technology property developments associated with universities—have suddenly proliferated in Britain. Local authorities, universities and public sector development agencies are now eager to exploit what seems an obvious way of stimulating high technology industry. Though much of their enthusiasm is a product of self interest, it is justified by arguments that science parks provide conditions conducive to high technology industry's prosperity. These arguments are hard to accept, but then so too is the reasoning that perceives easy and instant benefits from high technology. Such euphoria is in stark contrast to the reality that will probably face many British science parks. Keywords: science parks, high technology, universities, Britain, information flow.     

Organisation strategies and industrial relations

Stuart Timperley discusses two important themes in the management of industrial relations in organisations: firstly, that it is possible, through managerial decisions and actions, to influence industrial relations and, secondly, that a case can be made for such decisions and actions to be implemented.