bluuebunny/crossref_metadata_2025 huggingface dataset:
Making the Best Use of Investment Incentives
Authors: Whitman G.E.
Published: January 2008

Industrial profitability in Britain has suffered badly in recent years—and is still suffering—from the effects of rapid inflation coupled with rigorous price controls. This in turn has led to widespread liquidity problems aggravated by increasing capital needs to meet the ever mounting costs of stock and plant replacement. The survival and growth of firms depend on the ability of management to adapt to the changing business environment. Under today's conditions an acquaintance with the various forms of assistance to industry offered by the Government, and their implications, is essential for those concerned with the financial aspect of management. Intelligently used, these incentives can increase the profitability, after tax, of investment in fixed assets, as well as reinforcing the cash flow needed to finance them. The available fiscal incentives fall into two main classes: those given by way of “capital allowances” on fixed assets in taxing profits; and the range of government grants and other help available to firms operating in, or moving into, the “areas for expansion”.
An Overview of the Market for Ordinary Shares
Authors: Dobbins Richard
Published: January 2008

The objectives of this article are firstly to describe briefly the functions and operations of the stock market centred on the London Stock Exchange and secondly to illustrate recent developments in the market for equities. Statistics are presented relating to the changing pattern of UK share ownership and trading, trends in sources of new finance for industry and the decline in the number of jobbing and broking firms.
Current Account ‐ The National Enterprise Board
Authors: Goch Desmond
Published: January 2008

Ever since the National Enterprise Board set up shop with Lord Ryder in the chairman's seat, politicians and industrialists alike have been speculating on the kind of role it would come to play on the industrial scene. Its ill‐fated predecessor, the Industrial Reorganisation Corporation, had developed a swashbuckling style in its earlier days, but by the time it was forced to put up the shutters when Mr. Heath's administration decided to put it down in 1971 it had turned business opinion round a point or two in its favour to the extent that several prominent businessmen not noted for their attachment to the idea of state intervention in industry had agreed to serve as Board members.
Current Cost Accounting
Authors: Kirkman P.R.A.
Published: January 2008

In July 1973 the UK government announced that a special committee of enquiry was to be set up “to consider whether, and if so how, company accounts should allow for changes in costs and prices, having regard to established accounting conventions based on historic costs, the proposal for current general purchasing power accounting put forward by the Accounting Standards Steering Committee, and other possible accounting methods of allowing for price changes, and to make recommendations”. The twelve‐person committee under Francis Sandilands produced its 364‐page report (Cmnd.6225) in September 1975. The committee recommended that a system of current cost accounting should be adopted for listed companies, large unlisted companies, and nationalised industries for accounting periods beginning after 24 December 1977. It also recommended that a special steering group should be set up to oversee the introduction of current cost accounting. In November 1975 the government gave its qualified approval to the Sandilands recommendations, and agreed to set up a special steering group under the chairmanship of Mr. Douglas Morpeth. It is hoped that this group will produce a statement on this subject in the latter part of 1976.
Presenting Financial Information to Employees
Authors: Taylor A.H.
Published: January 2008

A Developing Activity. In a previous article it was suggested that for the purpose of presenting financial information to employees it was first essential to clarify the objectives of the exercise. If the purpose was to communicate to employees information about the progress of the company, then the selection and presentation of the information must be without any form of bias. It seemed that many of the presentations were too obviously directed towards the purpose of conveying a particular viewpoint, such as the validity of the profit motive or the relative growth of the wage cost. Many of the handouts under‐rated the intelligence of the readers by the implicit assumption that they were incapable of comprehending a figure unless it was accompanied by a humorous drawing. Some of the handouts seemed to be unduly concerned with the absolute size of the figures but left the reader without a standard for comparison, such as a past or related figure.
Financing the Movement of Goods between Countries
Authors: Waldron Robin
Published: January 2008

Most companies are finding that cashflow—that is to say, positive cash flow—is more important than profit‐making at the moment. That is not to say that in the longer term profit is not of the highest importance, but in order to survive to make profits at all liquidity is essential. The problem is not confined to the United Kingdom but is world‐wide, and its solution depends on the use of all the methods of speeding the flow of money within the organisation.
Human Resource Accounting
Authors: Trussell P. , Dobbins R.
Published: January 2008

Human resource accounting is concerned with the identification and measurement of data relating to the organisation's human resources and the communication of such relevant information to interested parties. Our objectives in this article are firstly to familiarise both financial and non‐financial managers with the techniques of accounting for human resources, and secondly to summarise the advantages and disadvantages of this additional financial reporting activity. The wide range of human resource valuations yielded by different accounting procedures is demonstrated in a research application of human resource valuation to the staff of Liverpool F.C. Ltd.
Current Account ‐ Squeeze on Trade Credit
Authors: Goch Desmond
Published: January 2008

The cheapest of all forms of working capital is that which is obtained from trade suppliers in the form of monthly account credit facilities. Although it is commonly referred to as one month's credit, in practice it usually represents about six weeks. With the customary practice of settling accounts towards the end of the month following that in which delivery of the goods or provision of the services was made, then depending on the time of the month when the event occurred the actual period of credit can vary from one to two months.
The Impact of Inflation on Accounting:
Authors: Zeff Stephen A.
Published: January 2008

It may be instructive to examine the reaction of the accounting profession to the inflationary phenomenon in the ten countries in which tentative or final positions have been taken. The record is curious indeed.
Systems Dynamics and Cash Flow Planning‐A Model for Accountants
Authors: Shehata Hussien H.
Published: January 2008

This paper aims to explore the applicability of Systems Dynamics Methodology (SDM) to the formulation of long‐range cash flow policies. It also explains how the information generated from the model aids in understanding the behaviour of cashflow through time and helps in determining cash deficits, excess cash, including timing, and the contruction of cash budgets under different cash control policies. After a brief introduction which explains the basic ideas behind SDM, the structure of the model is developed and described and the results of a hypothetical example analysed. This is followed by some comments on practical aspects of implementing the model in real life and its potential for cash flow planning and control.
Measurement of Financial Performance
Authors: Wilmott R.A.
Published: January 2008

Increases in productivity have their origins at the level of the individual firm and are reflected through improved efficiency. Improved efficiency is brought about by more effective use of scarce economic resources and unless some satisfactory measure exists for the evaluation of the effectiveness of industry in utilising the resources at its disposal, national objectives aimed at securing growth without inflation cannot be incorporated into the individual objectives of industrial firms themselves. Irrespective of the needs of the economy for growth most industrial firms have their own growth targets the assessment of which equally require a reliable measure of efficiency. To be satisfactory, the measure of efficiency employed must permit comparison of performance by firms over time, as well as comparison with other firms in the same industry and, ideally, in other industries also. There is no unanimity of opinion as to what is the most reliable single yardstick of industrial efficiency.
Finance Through Factoring
Authors: Kirkby D.
Published: January 2008

Of all the financial facilities and services that have appeared in the UK in the past ten years or so, probably the least understood is factoring. Pure debt factoring does not attract any supply of finance but is a service. The service is that of keeping the client company's sales ledgers, collecting remittances, providing credit control (deciding the level of credit the client's customers should receive) and guaranteeing payment of debtors' balances if kept within the limit suggested by the factor. It can be seen, therefore, that by using the services of a factoring company it is transferring, for a fee, the responsibility for the control of the investment in trade debtors.
Leverage in UK Companies 1967–1973 —An Empirical Investigation
Authors: Fox Robin B.
Published: January 2008

The amount of debt taken into a company's financial structure is one of the key financial decisions. When too much debt is taken on board, the company is risking technical bankruptcy if the company's cash inflow falls below the minimum level predicted. If too little debt is taken on, the company's cost of capital becomes unduly high compared with its competitors since it has failed to take advantage of the tax benefit from debt financing. The company's investment programme is impaired and the value of its equity falls on the stock exchange. This scenario might be described as the “conventional wisdom” of debt financing.
Management Accounting and Behavioural Science
Authors: Shackleton Ken
Published: January 2008

The management accountant has played an important part in commercial/industrial life. However, this role development is of comparatively recent origin compared with the wider profession of financial accounting. Whilst the early involvement of accountants in business organisations was concerned with the financial accounting aspects of the entity, organisations became more complex. This called for a re‐adjustment by the accountant in an endeavour to meet organisational demands for information. The historical development of cost accounting has been documented by David Solomons and it is clear that the major seminal influences were;
Dividend Policy and the Value of the Enterprise
Authors: Shepherd Andrew P.
Published: January 2008

“The effect of a firm's dividend policy on the current price of its shares is a matter of considerable importance, not only to the corporate officials who must set the policy, but to investors planning portfolios and to economists seeking to understand and appraise the functioning of capital markets. Do companies with generous distribution policies consistently sell at a premium over those with small payments ? Is the reverse ever true ? If so, under what conditions ? Is there an optimum payment ratio or range of ratios that maximises the current worth of the shares ?”. Although these questions of fact have been the subject of many empirical studies in recent years, no concensus has yet been achieved. Not only does the empirical evidence seem to conflict, but the underlying theory of share price determination cannot be agreed upon. This chapter surveys current theories concerning dividend policy, and seeks to reconcile them under a common set of assumptions. Then the relevant empirical evidence is presented and criticised, and finally a piece of research carried out by the author is discussed.
Economic Efficiency and the Stock Exchange
Authors: McEvoy Chris
Published: January 2008

The belief that the London Stock Exchange is a near‐perfect market is common both among economists and the lay public. The main basis for this belief is that stock and share prices are very sensitive to the influence of supply and demand in the market. But undoubtedly the belief is also influenced by the very effective public relations efforts of the Stock Exchange Council and also the members of the exchange—the brokers and jobbers who operate the market mechanism.
The Institutional Shareholder
Authors: Dobbins Richard
Published: January 2008

This chapter reports the growth in ownership of the private sector of British industry by institutional shareholders, summarises the impact of such growth on management and the stock market, and briefly assesses its implications for the future.
Evaluating a Training Programme in the Probation Service
Authors: Ashton David , Gibbon Brian
Published: January 2008

Beginning in February 1973, an experimental course was run by Durham University Business School for Durham Probation Service. The course was an innovation as far as the Business School was concerned, as no member of staff had extensive experience in the teaching of management concepts to members of a social service department. Similarly, experience of this type of management course was, for Probation Service personnel, very limited. A feature of the course was the composition of the participant group from the Probation Service. The entire top management strata were to attend, together with the area groups of Senior Probation Officers. Figure 1 illustrates the upper organisation structure of the service.
The Economic Evaluation of Supervisor Training
Authors: Woodward Nicholas
Published: January 2008

To judge from the literature there has been a substantial amount of research carried out into the evolution of supervisor training. For the most part, however, this work has been carried out by those with psychological/sociological leanings; in fact it should more appropriately be described as “validation”, in that no attempt has been made to value the effects of the training programmes in either resource or cash terms. Thus most of the research has been concerned primarily with the factors that affect the learning process and the transfer of learning. To a large extent, therefore, economic evaluations of training have been ignored. No doubt this reflects the fact that such training is difficult to evaluate economically.
The Ownership of British Industry
Authors: Dobbins Richard , Pass Christopher
Published: January 2008

Many modern theories of managerial behaviour are based on the initial observation of the separation of ownership and control. This article is concerned with the ownership of British industry. Statistics are presented relating to the pattern of UK share ownership both now and in the future. Emphasis is placed on the persistent and rapid growth in equity holdings by financial institutions—insurance companies, pension funds, investment trust companies and unit trusts. Some concluding comments are made on the possibility of greater managerial participation by major financial institutions, and hence the possible convergence of ownership and control.
A Study of Directors' Remuneration in Thirty‐Eight Large Companies
Authors: Dobbins Richard , Lowes Bryan , Pass Christopher
Published: January 2008

Are directors remunerated as administrators or entrepreneurs? The theory of finance suggests that the objective of the firm is to maximise shareholder wealth or the current market value of the firm. Company law informs us that directors are appointed to manage the business on behalf of shareholders. However, a great deal of research suggests that the separation of ownership by shareholders and control by directors enables the managers of large companies to pursue objectives other than maximisation of shareholder wealth. This study attempts to relate selected financial variables to the amount of directors' remuneration as disclosed in published accounts. Our general conclusion is that managerial compensation is determined by the size of the firm rather than its accounting profits or market value.
Objective Setting: A Corporate Planning Approach
Authors: Lowes Bryan , Dobbins Richard
Published: January 2008

Business objectives play a vital role in providing direction and purpose for a company. Just as an individual cannot plan a route for a journey until he determines his destination, so a company needs to establish some notion of its final destination for its journey into the future before managers can begin to deploy company resources. Even in companies which do not have formal planning systems, managers must still make strategic decisions regarding investment, product development and the like which will set their course into the future, and so they must have some goals in mind in making their decisions. But whilst such companies will have objectives, in the absence of any formal planning these objectives are likely to remain implicit, being carried in the heads of executives. Thus there is always the danger that managers will operate with different goals in mind, so that the company lurches into the future in an unco‐ordinated fashion.
Corporate Social Objectives
Authors: Lowes Bryan , Pass Christopher
Published: January 2008

Mounting public criticism of big business has forced the managers of large companies to reappraise their relationships with employees, consumers and the community as they have come to recognise that companies have to work within the limits imposed upon them by public opinion and political pressures as well as the restraints imposed by market forces. These non‐market forces such as the pressures of public opinion and the urgings and threats of legislators and bureaucrats have grown in importance over recent decades, paralleling the growth of large business units. Such constraints reflect society's changing view of the role of business, and they become effective through the political process insofar as they can lead to changes in Government regulation of the private sector. Evolving social values have led to demands that companies contribute more to the quality of life than merely perform their traditional economic roles of supplying goods, providing jobs and paying taxes, and since business can only function by public consent then these expectations must be met if businesses are to survive as independent institutions in society.
Exchange Rates and the “New” International Monetary Order
Authors: Pass Christopher
Published: January 2008

In the past few years there has been a radical transformation of international monetary relations. Since 1973 a large number of countries have abandoned the Bretton Woods system of fixed par values for their currencies and have adopted a variety of exchange rate arrangements. These new practices are shortly to be sanctioned by an amendment to the Articles of Agreement of the International Monetary Fund. This paper examines recent developments in exchange rate practices and the proposed role of the Fund in regard to the conduct of exchange rate management.
What is Foreign Exchange‐Risk?
Authors: Walker David P.
Published: January 2008

The controversy between the “accounting” (“translation” or “balance‐sheet”) and the “economic” (“cash‐flow”) approaches to exchange‐risk is examined. The latter approach is advocated and a conceptual frame‐work for the cash‐flow analysis is suggested. Finally it is argued that, in the long run, the cash‐flow effects of exchange rate fluctuations are offset by countervailing movements in inflation and interest rates. Exchange‐risk is therefore a short run phenomenon, stemming from unexpected changes in exchange rates.
The Forward Rate as an Accurate Predictor of Future Spot Rates
Authors: Kettell Brian
Published: January 2008

Corporate treasurers, in managing their foreign currency payables and receivables, are continually forced to decide whether to deal forward or to wait and to deal spot in the future. The forward market provides a market where, for a price, the risk of adverse foreign exchange rate fluctuations can be sold off to professional risk bearers. The last ten years have seen considerable turmoil in the foreign exchange markets. In this article I want to examine several issues. Firstly, how do you measure the cost of forward cover under flexible rates and has there been any change in the cost of cover of flexible compared with fixed rates? Secondly, to what extent is the forward market a reliable forecaster of future spot rates? Thirdly, what, if any, are the corporate hedging implications of the behaviour of the forward market?
Is Forward Exchange Control Necessary?
Authors: Paxson Dean A.
Published: January 2008

The national objectives of forward exchange controls are to restrain speculation in foreign exchange, to limit international capital flows and to affect the forward exchange rates. Restrictions on forward transactions are economic welfare costs for enterprises and banks, which are analysed in terms of risk‐return and supply‐demand theory. Empirical answers to whether forward exchange control is really necessary await collection and disclosure of company currency exposure, which itself may contribute to the national objectives implicit in forward exchange controls.
The Role of Inventory in Practice
Authors: Howard K.
Published: January 2008

Most managers are aware that inventory cannot exist without costs being incurred. In the absence of an accurate indication of what these costs are the decision on the level of stocks to be held becomes very subjective. The result is that in some instances stock levels are too low whereas in other instances the reverse is the case. This article seeks to demonstrate that it is possible to achieve significant savings through quantitative analysis which can be comprehended by managers who do not have specific mathematical skills.
The Use of Invoice Sampling to Estimate Profit Margin
Authors: Atherton Judith
Published: January 2008

When information is needed about the characteristics of a “population”, statistical sampling can save time, money and effort. Although some loss of accuracy is inevitable when dealing with samples, the error can be calculated and controlled provided the sample is carefully selected so that it is representative of the population from which it is drawn. This article discusses the application of sampling methods and sampling theory to invoice data for management information purposes, and describes a real case of a wholesale company, where it was found that invoice sampling gave better estimates of profit margins than the standard historical accounting data. An elementary knowledge of statistics is assumed.
A Simulation Problem in The Textile Industry
Authors: Pearson Peter
Published: January 2008

Quantitative problems frequently arise in production systems which cannot be solved by the standard Operational Research techniques. In such cases, a simple mathematical model can sometimes be built which simulates the real problem and enables a manager to find out what would be the effect of different policies. This paper describes how simulation was used to improve profitability in a textile company.
Capital Asset Pricing: Theory, Empirics and Implications for Portfolio Management
Authors: Theobald Michael
Published: January 2008

This paper attempts to review briefly the current position of capital asset pricing theory and testing, and to consider the implications for portfolio managers. Inevitably in a paper of this length, it is not possible to include all the material that is relevant in such a large and important area, but most of the important matters have hopefully been covered.
Modern Risk Measurement
Authors: Dimson E. , Marsh P.R.
Published: January 2008

During the past decade, there has been a revolution in investment management. If you pick up any professional investment journal in the States you will find that the articles and advertisements continually refer to Modern Portfolio Theory or MPT. At the heart of MPT is the notion of risk measurement. And nowadays, portfolio managers in almost any large American investment institution use modern risk measurement to analyse their portfolios. They realise that investment is as much about risk as return and that professionalism in their approach to risk is crucial. There are more than 20 institutions providing risk measures, and the investment community spends over $200 million per annum on MPT services alone.
Auditing the Board: A New Approach to the Measurement of Company Performance
Authors: Taffler R.J. , Sudarsanam P.S.
Published: January 2008

The role of the internal auditor is evolving rapidly. More and more his ambit is encompassing the whole range of a company's operations. His activities no longer primarily consist of checking for compliance with laid down procedures but are becoming more management orientated and focused on the appraisal of efficiency and effectiveness of operational systems in general. These developments are acknowledged in the Introduction to the new IIA Standards: (IIA, 1978, p. 1):
Internal Audit of the Budgeting Function and the Propensity for Information Bias
Authors: Lowe E.A. , Shahin I.
Published: January 2008

An account is presented of part of an extensive empirical research project concerned with the role of the internal auditing function within enterprises. The main focus of this paper is upon the propensity for bias in the information flows of the budgetary control process. A model of the “traditional” budget process is modified successively to take account firstly of the presence of information bias and secondly of the function of internal auditing as a process of feedback and “counterbias”. Further discussions of the implications for the role of the internal auditor within this context together with some prognostic conclusions are then presented.
Internal Audit Role Conflict: A Pluralist View
Authors: Morgan Gareth
Published: January 2008

This paper analyses the internal auditor's role from a perspective which emphasises the pluralist nature of organisational life. The internal auditor operates in organisational contexts where norms and values are at best only partially shared, and where the auditor's formal concern for improved efficiency and control of resource use may be viewed with varying degrees of favour. The pluralist nature of organisational life reflects itself in day‐to‐day strains, tensions and conflicts between internal auditors and auditees, which cannot be eliminated through traditional “Human Relations” approaches to organisational problems. There are inherent conflicts between audit and other organisational roles, and also insofar as its modern conception is concerned, within the internal auditor's role itself.
Program Review: Its Role in Computer Auditing
Authors: Earl Michael J.
Published: January 2008

Program review, or program audit, is becoming an accepted technique in computer auditing. This paper describes the technique and examines whether it has a legitimate role in both external and internal audit work. A program review methodology is suggested and user experience is reported and analysed. It is suggested that internal auditors in particular may value program review and are relatively well placed to exploit it.
The Developing Role of the Internal Auditor Within the Audit Spectrum
Authors: Briston Richard J.
Published: January 2008

In February 1979, I gave a paper on the subject of government auditing in developing countries at the Second Assembly of African Supreme Audit Institutions (AFROSAI) in Accra. Twenty‐four African countries were represented and nine of them contributed position papers on the three main themes of the conference:
The Marketing of Services
Authors: Cowell D.W.
Published: January 2008

The objectives of this paper are firstly to outline the scope and the content of marketing, and secondly to explore the nature of the marketing of services as distinct from the marketing of products. In fulfilling both these objectives the paper provides a background for other contributions in this collection dealing with a variety of marketing of financial services examples and situations.
An Overview of Financial Services Marketing
Authors: Wilson Richard M.S.
Published: January 2008

In this introductory overview an indication of the range of financial services that is available will be presented, along with some examples of marketing practices in relation to these services and some observations about some of the suppliers of financial services. This coverage will then be followed by a brief review of research in the field of financial services marketing, a note on careers in this field, and a summary of courses in the field.
Ethical Issues in Marketing Financial Services
Authors: Bancroft Anne L.
Published: January 2008

“A man becomes a professional, a cynic once observed, by doubling his prices, calling them fees and referring to his customers as clients. He might have added that the real professional gent doesn't advertise his services either” (OPINION from Accountancy Age, 13 August 1976.)
Bank Marketing in the Personal Sector
Authors: Howley John C. , Savage Grahame P.
Published: January 2008

During a period which has witnessed considerable growth in the number of organisations which offer banking and associated services, one of the more notable developments has been the identification of the “personal” sector as an entity by the Clearing Banks. From a position which largely considered personal banking as down‐the‐banking‐market, the banks have done a rapid about‐turn by recognising the importance of this sector. To this end they have designed ranges of services which meet the needs of this sector and have developed specific marketing strategies.
The Effectiveness of the Major Clearing Banks in Attracting New Accounts: A Case Study
Authors: Bannister D. , Brown A.P. , Dormand B.
Published: January 2008

This case study reports on the ways in which the five major clearing banks (Lloyds, Barclays, Midland, National Westminster and Williams and Glyn's) attempted to attract new student accounts at the beginning of the academic year 1978‐1979; how successful they were in obtaining these new accounts; and what were the major influences that attracted students to join particular banks.
The Marketing of Building Societies' Services
Authors: Barnes Paul A.
Published: January 2008

The business of Building Societies is readily defined: to raise funds from members and to make advances to members by way of mortgage of property. They operate on a “cost plus” basis, setting the rate which they pay to savers at a level necessary to attract sufficient funds and charging a rate of interest on mortgages that covers tax and expenses and produces a surplus. Apparently they do not charge what the market will bear, and they are reluctant to raise the mortgage rate of interest. Although they compete with each other and strive for commercial efficiency, they conceive of their function as partly a social service, and it is this aspect which justifies the use of the term “the Building Society Movement”. Nevertheless they are part of the financial market of attracting and providing funds placing them in competition with banks, finance houses, insurance companies, and so on.
The Role of the PR and Advertising Agency in the Marketing of Financial Services
Authors: Short Simon
Published: January 2008

“Financial services” is a shroud which seems to unify a number of activities which are in reality quite diverse. Statistics of advertising are one indication of marketing activity in this sector. They include categories as diverse as “boroughs and corporations” advertising loans to the public, “credit cards” offering at one and the same time credit facilities and a means of payment, and “prospectuses” which are invitations to invest, usually in quoted securities, while “insurance and assurance companies” could include anything from life offices advertising their reversionary bonuses to insurance brokers commending their services as risk management consultants. The common factor throughout is money; usually money changing hands for a monetary return, but the market may be consumers, industry, or banks and other financial institutions worldwide.
Recent Research in Financial Control
Authors: Puxty Anthony G.
Published: January 2008

In a collection of papers such as this, which refers to “financial control” both in the title and in the heading for this introductory essay, it would seem appropriate to begin by defining how the author views the meaning of the expression. Definitions are always problematic, since they at once clarify and limit: but a fairly general attempt at definition would be something like the following:
An Action Approach to Control Systems
Authors: Murray Gavin , Puxty Anthony G.
Published: January 2008

The role of budgets in organisations has received much attention from accounting theorists over the 20 years since Stedry's experiments on budget‐setting. In that time there has been a difference of emphasis between theorists in the United States, who have concentrated on the relation of the budget to the individual, and the European theorists, who have been more concerned with organisational aspects of budgets (Cooper, 1981). Individual and organisational aspects are not, of course, completely different: there is a considerable mutual influence between them. Nevertheless, the tradition is somewhat different, and the related discipline has in the USA tended to be psychology, whereas Europeans have tended to turn more to systems approaches to the sociology of organisations.
Financial Control Systems in Dynamic Environments
Authors: Lowe E.A. , Puxty A.G.
Published: January 2008

In the previous paper control was considered as a process at the level of the individual and the group. In this paper, it is intended to broaden the approach to control to consider the control of the total organisation within its environment. This is done by considering the financial control system as it is generally conceived, and offering a critique, before suggesting an alternative approach to control.
Determinants of Financial Control Systems for Multiple Retailers — Some Case Study Evidence
Authors: Piper J.A.
Published: January 2008

This paper considers the financial control systems (FCS) used by four multiple outlet retailers. The FCS of the four organisations are compared and considered in the light of task complexity, environmental pressure and management aspirations for profit growth. The data were collected by means of case studies and although the sample is small the case studies illustrate differences from which a relatively simple framework for FCS analysis is developed.
Organisational Effectiveness — A Critique and Proposal
Authors: Lowe E. Anthony , Fong Soo Wai
Published: January 2008

It may be well argued that in modern industrial society bureaucratic organisations are the predominant means of marshalling society's resources in order to produce desired goods and services. Because bureaucracies influence the creation and distribution of scarce wealth and resources, one must necessarily be interested in the assessment of their organisational utility. The commonly used evaluative concept of effectiveness is complex and requires careful definition. It is often couched in terms of financial measures like profit, profitability, return on investment, but we shall argue that these criteria are insufficient and moreover cannot be applied to all organisations. Clearly financial measures are necessary to a definition of organisational effectiveness but they are not sufficient in themselves. For example, a firm may enjoy a high rate of return on investment because of a monopoly power conferred upon it by society. Some adjustment must, however, be made for that matter in concluding about its effectiveness. Explicit research into the concept began to emerge about 20 years ago but the term remains controversial and still somewhat ill‐defined. As Steers (1977) pointed out, there is no generally recognised theory on the concept, no agreement on its criteria of measurement, determinants and influences.
Determinants of Investment—An Economist's View
Authors: Copeland Laurence
Published: January 2008

This article stresses the importance of investment to the firm and the economy. The author argues that the level of investment is largely determined by the balance between the expected rate of return and the cost of capital.
Investment Planning and Control A Guideline
Authors: Lawson G.H. , Pike R.H.
Published: January 2008

This article gives guidelines to accountants on the practical aspects of sound capital investment planning and control systems.
Risk Analysis for Capital Investment Decisions
Authors: Fung W.K.H. , Stapleton R.C.
Published: January 2008

There are two ways in which the risk of a capital project can be described. This article outlines these two approaches: Sensitivity Analysis and Probability Analysis, and emphasises the connection between the two methods. The output of a computer model of the sensitivity of the project to underlying factors is used as input for a probability analysis. The methods are illustrated with a case study, the MM Co Ltd.
The Accounting Rate of Return and the DCF Rate of Return
Authors: Lawson G.H. , Stark A.W.
Published: January 2008

The accounting rate of return on capital employed (RRCE) still enjoys extraordinary popularity as a criterion of achieved financial performance, as a divisional and corporate financial objective, and as a public policy index of relative profitability. Its popularity may in no small way lie in the presumption that the RRCE provides, in the form of a single magnitude, a comprehensive criterion for measuring the ex post and ex ante profitability of capital investment. Moreover, the components of the RRCE calculation can be taken directly from the traditional accounting records — the hallmark of respectability.
The Valuation of a Going Concern on a Cashflow Basis
Authors: Lawson G.H.
Published: January 2008

This article contains a specification of an analytical model, occasionally described as a “fundamentalist” approach, which reflects the principles and recommendations contained in the exposure draft constituting the previous article. A computer‐based version of this model is described elsewhere. The estimation problem which constitutes the second stage of the fundamentalist approach necessarily has close affinities with the exploration of a company's financial future under alternative assumptions — a task for which computer‐based models are a veritable necessity.
The Growth and Development of Occupational Pension Funds
Authors: Fanning David
Published: January 2008

This paper gives an account of the growth and impact of pension funds in the United Kingdom, describing the marked growth in scheme membership and in the influence and strength of the pension funds. The consequences of that growth are discussed and attention is drawn to the problems of funding pensions in a climate of uncertainty and inflation.
Portfolio Management for Pension Funds
Authors: Witt Stephen , Dobbins Richard
Published: January 2008

The implications of modern portfolio theory for pension fund investment management are examined and compared with actual behaviour. It appears that the extent to which pension funds diversify goes far beyond that required for risk reduction, and therefore possible alternative motives are suggested. There is also some evidence of excessive equity trading.
Accounting for Pension Costs
Authors: Young J.M
Published: January 2008

This paper explores the background to the work of the Accounting Standards Committee in attempting to formulate an accounting standard on pension costs for the United Kingdom. Taking into account fundamental accounting concepts and typical actuarial practice, suggestions are made for a practical system of treatment and disclosure of pension costs in the employer's accounts.
The Impact of Pension Costs on Corporate Performance
Authors: Fanning David
Published: January 2008

Highlighting the likely development of substantial actuarial deficits in pension funds providing final salary‐linked retirement benefits, this paper draws attention to the very real dangers of unfunded pension liability. It identifies the drain on the corporate life blood of maintaining present levels of pension fund contributions, and argues for the return to the state scheme of contracted‐out pension schemes.
Managerial Participation by Pension Funds and Other Financial Institutions
Authors: Cuthbert Norman , Dobbins Richard
Published: January 2008

Pension funds are rapidly acquiring voting control of UK quoted companies. Who, if anybody, should have the legal right to use the votes attached to pension fund shareholdings — pension fund managers, employees, employee representatives, members of the TUC, members of the Government, civil servants, or perhaps members of a stakeholders' council? This article sketches a few scenarios.
Short‐Term Forecasting of the Economy
Authors: Sparkes John R. , Witt Stephen F.
Published: January 2008

At all levels of economic management — from the economy to the company — forecasting is widely accepted as a crucial aspect of policy making. The purpose of this paper is first and foremost to give a brief, simplified explanation of the method of shortterm (up to two years ahead) national income forecasting used by, for example, the Treasury. Under the 1975 Industry Act the Treasury is required to publish its economic forecasts: one is published at the time of the Budget in the Financial Statement and Budget Report; a second usually some six months later. A technical manual describing the structure of the model of the economy used by the Treasury is also published; and under the 1975 Act the model itself is available for public use.
An Empirical Comparison of Alternative Forecasting Methods as applied to the UK Foreign Holiday Market
Authors: Witt Stephen F. , Rice Robin A.C.
Published: January 2008

There are two distinct types of forecasting model in which past experience is used as an indicator of the future, and these may be termed “causal” models and “non‐causal” models. (An extensive discussion of these model types appears in Robinson and Wood and Fildes.) Non‐causal (naive) models simply extrapolate past history on the forecast variable and disregard those forces which caused the particular pattern for the time series. The object is to select the type of curve which provides the closest fit to a given historical series, and complex statistical procedures exist for carrying out this exercise. The great problem with forecasting by extrapolation is that it presupposes that the factors which were the main cause of growth in the past will continue to be the main cause in the future, which may be incorrect, and if this is the case the use of this technique will result in poor forecasts. If one considers sales of foreign holidays as an example, one realises that there may be significant changes in the variables affecting these sales, such as income changes, fare changes, and changes in exchange rates. In order to forecast sales of foreign holidays reasonably accurately it is therefore necessary to construct a causal model in which sales are explicitly related to the determining forces.
Market Efficiency and the use of Accounting Data in Bankruptcy Forecasting
Authors: Wood Douglas
Published: January 2008

In finance the proposition that market prices in company securities are efficient in respect of public information has received substantial confirmation over the years (Fama, 1970, 1976). Since efficiency means that there are no systematic trading rules which generate abnormal returns and since the public information concerned consists to a large extent of published accounting data, it is somewhat surprising to find that a stream of empirical work (e.g. Altman, 1971) using the same data claims to provide predictions of bankruptcy or quasi‐bankruptcy which are of considerable accuracy and usefulness.
Forecasting Exchange Rates: Theory and Practice
Authors: Morgan John H.
Published: January 2008

Since the widespread introduction of floating exchange rate regimes amongst the major currencies in the early 1970s, the problem of correctly anticipating exchange rate fluctuations is one that corporate treasurers of companies having any international dealings have had to face in order to manage successfully the exchange risk inherent in international contracts.
Developments in Employee Reporting
Authors: Hussey Roger
Published: January 2008

The topic of employee reporting has attracted the interests of practitioners and academics in recent years, particularly in relation to the annual published financial ducuments, known as an Employee Report, used by a number of companies. The practice of giving financial information to employees can be traced back to the last century, although its more popular use dates from the Second World War.
The Optimal Use of Information, Collective Bargaining, and the Disclosure Debate
Authors: Pope Peter F. , Peel David A.
Published: January 2008

It is commonly believed that trade unions act irrationally in collective bargaining either by “picking numbers out of the air” or by forming biased forecasts of information. Such views either imply that information disclosure to unions is useless or that discretionary disclosure could confer an advantage on management. This article presents an alternative model of unions which relies on expectations being formed rationally and based on the optimal use of information.
The SOFI Model: Theory, Practice and Applications
Authors: Galitz L.
Published: January 2008

Decision making by companies is becoming more and more difficult all the time. The growing uncertainty that characterises the economic environment today is a significant factor causing problems, which are compounded by the effects of stiffer competition as companies find themselves competing in a world market.
Modelling the Investment Behaviour of the UK Pension Funds
Authors: Cohen Ivan K.
Published: January 2008

Nowadays the provision of a pension is regarded as commonplace; it is felt incumbent upon society to provide an income for those it considers ‘too old’ to be further gainfully employed. Yet only a century ago — a mere three generations — the provision of a pension was regarded as a luxury only available for a lucky few. Indeed, this change in social attitude has been far more noticeable in the post‐1945 period than before. Nonetheless, the task of this paper is not to consider the causes of such social change, but rather the effects.
How Are The Firms' Securities Valued?
Authors: Ward Lynne M.
Published: January 2008

This article contrasts the traditional and the modern approaches to the valuation of securities. The new ideas are straightforward and the models simply describe the way in which many professional investors go about the business of maximising their wealth. The article is divided into two sections. The first focuses on modern portfolio theory to demonstrate the fundamental investment tradeoff between risk and return. The second presents a pragmatic approach to security valuation for investors who no longer believe in earnings multipliers.
How Should Firms Assess New Projects?
Authors: Parker Neil
Published: January 2008

Modern financial theory has changed our way of thinking about numerous issues on the practical side of finance, many of which were previously regarded as the sacrosanct domain of experts, steeped in jargon and knowledge, and beyond the ken of that ordinary mortal, the layman. The main contribution of the new theories has been in practically helping us go about investing in shares, usually shares in publicly quoted companies. Thus it helps the external investor in the market in deciding in which share to invest, depending upon his own attitudes towards risk and return.