Co-governance or meta-bureaucracy? Perspectives of local governance 'partnership' in England and Scotland

This article assesses the nature of partnerships through the research site of local governance in England and Scotland, engaging a range of debates and literature around governance and meta-governance. The research used secondary data of local authority partnership working in England and Scotland as well as primary qualitative data from participant observation and interviews with senior officials of local authorities and partner organisations. There is little to suggest that English and Scottish practices are significantly at variance and the article advances an argument of meta-bureaucracy to describe partnerships' activities: that is to say, partnerships do not represent a growth of autonomous networks and governance arrangements but rather an extension of bureaucratic controls. State actors remain pre-eminent within increasingly formalised systems of 'partnership'

Finance, Control, and Profitability: The Influence of German Banks

Bank intermediated finance has been cited frequently as the preferred means for channeling funds from savers to firms. Germany is the prototypical economy where universal banks allegedly exert substantial influence over firms. Despite frequent assertions about the considerable power of German banks and the advantages of a bank relation, empirical support is mixed. With a unique dataset and a focus on the fragility/sturdiness of inferences, this paper evaluates German bank influence in terms of three hypotheses: 1) do bank influenced firms enjoy lower finance costs? [No]; 2) is bank influence a solution to control problems? [Yes]; 3) do bank influenced firms have higher profitability? [No]. Coupled with results about the control consequences of concentrated ownership, these results suggest that bank influence serves as a substitute control mechanism, one of several available for addressing corporate control problems.German banks, corporate finance and governance

Consumption Smoothing Across Space: Testing Theories of Risk-Sharing in the ICRISAT Study Region of South India

consumption smoothing, risk sharing, informal insurance, India

A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives

Cooperatives are characterised by mutual-benefit coordination mechanisms aimed at the fulfilment of individual behaviour and outcomes in cooperatives by bringing together new-institutionalism, behavioural and evolutionary economics. Our framework considers four main dimensions of the governance of cooperative firms: (1) the development and application of self-defined rules by the members of the cooperative; (2) the management, and appropriation of common resources and outcomes; (3) intrinsic motivations and reciprocating behaviours; (4) the implementation of suitable incentive mixes based on inclusion and reciprocity, including both pecuniary and non- pecuniary elements. An example is offered in order to highlight possible problems in the governance of cooperative firms, in particular the processes of distribution and appropriation of surplus. The example aims at introducing the discussion of the new framework of analysis.cooperative firms, common resources, motivations, incentives

Path dependence or convergence? The evolution of corporate ownership around the world

We offer a theory that sheds light on the current debate over whether the form of corporate ownership converges to the Berle-Means image. Our analytical results are threefold. First, legal rules and firm-specific protective arrangements are complementary. Secondly, corporate ownership patterns can be convergent or path dependent depending on the relative importance of these protective arrangements. We predict, for example, diffuse stock ownership in countries that impose legal limits on blockholders’ power to expropriate minority investor rights. Thirdly, we find that convergence toward diffuse share ownership is a movement towards the social optimum. Our empirical results suggest a case for the co-existence of path dependence and functional convergence (convergence to the diffuse form of share ownership through cross-listings on U.S. stock exchanges that impose more stringent disclosure and listing requirements). These results have implications for the design of executive compensation, the case for institutional investor activism and the proposal to increase shareholder power

Exploration of an agenda for transparency in the construction industry

Purpose In enhancing the market operation of the building sector, transparency is of great importance. The objective of this article is to propose an inventory of aspects of the relationships between public clients and executing parties that have the most urgent need for greater transparency. Methodology / approach The main methods used include a conceptual analysis and twenty interviews with managers of various organisations in the construction industry. Findings Based on this study, four essential points for transparency have been determined: openness about risks and costs, measuring of quality-price ratios, reasons for award or rejection and enhancement of the reputation mechanism. Research limitations / implications This study takes the Dutch context as a reference point for the analysis. When the findings are used also in other settings, it is necessary to address the differences in characteristics of the building sector. Practical implications The essential points for transparency addressed in this paper have consequences for especially the interaction between public clients and executing parties. Furthermore, conditions for transparency - like possibilities to judge quality in a more robust and transparent manner and methods for enhancing the reputation mechanism - point at necessary future research for improving transparency in the construction industry. Originality / value of the paper The Dutch construction industry is working through a transition process focused on improving its market operation, integral processes and societal added value. In this transition, transparency between clients and executing parties is of great importance.Transparency; construction sector; trust; reputation; integrity

INVESTMENT CHARACTERISTICS OF ISLAMIC INVESTMENT PORTFOLIOS: EVIDENCE FROM SAUDI MUTUAL FUNDS AND GLOBAL INDICES

The study critically reviews the application of the Sharia investment screening process, from both Sharia and practical perspectives. In practice, there appears to be inconsistencies in the Sharia investment screening criteria among Islamic investment institutions, especially in terms of the tolerance level, as well as the changing of the Sharia rules. This certainly affects the confidence in the Sharia screening criteria standards, which might adversely affect the Islamic mutual funds industry. The non-income generating aspects, such as social and environmental concerns, are not incorporated in the contemporary Islamic investment screening process. This seems to be rather paradoxical, since it contradicts the Sharia-embedded ethical values of fairness, justice and equity. The thesis contends that external audits regarding the implementation of Sharia rules should be adopted to ensure the compliance of the investment with Sharia guidelines. Furthermore, it is desirable for Sharia boards to adopt corporate governance practice and take proactive roles, especially in Muslim countries, in order to influence companies to adopt Sharia-compliant investment practices. The tolerance levels of conventional finance activities of companies in Muslim countries should be re-evaluated and lowered in the Islamic investment screening criteria. This is partly due to the popularity and wide availability of Islamic banking and alternative Sharia instruments to interest-based finance, coupled with the fact that Muslim shareholders form the majority and hence, can vote to influence companies to adopt Sharia-compliant financing modes. In addition, the study provides empirical evidence that the Sharia screening process does not seem to have an adverse impact on either the absolute or the risk-adjusted performance of Islamic equity mutual funds in Saudi Arabia, compared to their conventional counterpart equity mutual funds and also compared to their market benchmarks. This is regardless of the geographical investment focus subgroup examined and the market benchmark used (whether Islamic or conventional). Furthermore, the systematic risk analysis shows that in most cases Islamic equity mutual funds in Saudi Arabia tend to be significantly less exposed to market risk compared to their conventional counterpart equity mutual funds, and compared to their conventional market benchmarks. Thus, the assumption that Sharia investment constraints lead to inferior performance and riskier investment portfolios because of the relatively limited investment universe seems to be rejected. This implies that Muslim investors in Saudi Arabia can choose Islamic investments that are consistent with their beliefs without being forced to either sacrifice performance or expose themselves to higher risk. The investment style analysis also shows that the Sharia screening process does not seem to influence Islamic equity mutual funds in Saudi Arabia towards small or growth companies compared to their conventional counterparts of similar geographical investment focus. Moreover, the study provides empirical evidence that the performance difference between Islamic and conventional socially responsible indices is insignificant despite applying different sets of screening criteria. However, Islamic indices tend to be associated with relatively lower systematic risk compared to their conventional socially responsible counterparts. Therefore, Islamic investment portfolios can be marketed to socially responsible investors who share similar beliefs in terms of excluding certain industries such as tobacco, alcohol, pornography, defense, etc., in spite of no financial filters being used by conventional socially responsible investors. This finding is especially appealing in Muslim countries where there are usually no mutual funds categorized as socially responsible, but rather Islamic. Moreover, the study also provides empirical evidence that incorporating conventional sustainability criteria into the traditional Sharia screening process does not lead to inferior performance or higher exposure to systematic risk. The results indicate that regardless of the restriction used - whether Islamic, socially responsible or Islamic socially responsible - restricted investment portfolios do not seem to be associated with inferior performance or higher exposure to risk. This finding opens the door for Sharia scholars and Muslim investors to reconsider broader social and environmental aspects as part of the Sharia investment screening process. With regards to investment style, Islamic and Islamic socially responsible indices seem to be skewed towards growth cap as compared to their conventional and conventional socially responsible indices, while Islamic socially responsible also leans towards a large cap. This implies that despite the performance similarity between, Islamic, conventional and conventional socially responsible indices, the returns driver of each type of investment tends to be different

21st century social work: reducing re-offending - key practice skills

This literature review was commissioned by the Scottish Executive’s Social Work Services Inspectorate in order to support the work of the 21st Century Social Work Review Group. Discussions in relation to the future arrangements for criminal justice social work raised issues about which disciplines might best encompass the requisite skills for reducing re-offending in the community. Rather than starting with what is known or understood about the skills of those professionals currently involved in such interventions, this study sought to start with the research evidence on effective work with offenders to reduce re-offending and then work its way back to the skills required to promote this outcome