Risk and value in labour and capital markets: The UK corporate economy, 1980-2005.

The paper sets out a theoretical model linking stock market financial risk to labour market conditions, including labour intensity and the risk arising from the specification of labour contracts. A value added analysis is conducted combining national and firm level accounts data to examine the relationship between the share of value and the share of risk, contrasting manufacturing and service industries. In conjunction with a firm level analysis, empirical support for the model is established showing rational trade-offs between the risk and value appropriations of investors and employees and a less rational accumulation of structured debt finance as the UK economy has shifted from manufacturing to services in the last 30 years. The shift to services, flexibility and deregulation has tended to promote labour intensity, inflexibility of cost structures, and, as a consequence greater financial risk

Growth, profits and technological choice: The case of the Lancashire cotton textile industry

Using Lancashire textile industry company case studies and financial records, mainly from the period just before the First World War, the processes of growth and decline are re-examined. These are considered by reference to the nature of Lancashire entrepreneurship and the impact on technological choice. Capital accumulation, associated wealth distributions and the character of Lancashire business organisation were sybiotically linked to the success of the industry before 1914. However, the legacy of that accumulation in later decades, chronic overcapacity, formed a barrier to reconstruction and enhanced the preciptious decline of a once great industry

Industrial districts as organizational environments: resources, networks and structures

The paper combines economic and sociological perspectives on organizations in order to gain a better understanding of the forces shaping the structures of industrial districts (IDs) and the organizations of which they are constituted. To effect the combination , the resource based view (RBV) and resource dependency theory are combined to explain the evolution of different industry structures. The paper thus extends work by Toms and Filatotchev by spatializing consideration of resource distribution and resource dependence. The paper has important implications for conventional interpretations in the fields of business and organizational history and for the main areas of theory hitherto considered separately, particularly the Chandlerian model of corporate hierarchy as contrasted with the alternative of clusters of small firms coordinated by networks

Does Community and Environmental Responsibility Affect Firm Risk? Evidence from UK Panel Data 1994-2006

The question of how an individual firm’s environmental performance impacts its firm risk has not been examined in any empirical UK research. Does a company that strives to attain good environmental performance decreases its market risk or is environmental performance just a disadvantageous cost that increases such risk levels for these firms? Answers to this question have important implications for the management of companies and the investment decisions of individuals and institutions. The purpose of this paper is to examine the relationship between corporate environmental performance and firm risk in the British context. Using the largest dataset so far assembled, with Community and Environmental Responsibility (CER) rankings for all rated UK companies between 1994 and 2006, we show that a company’s environmental performance is inversely related to its systematic financial risk. However, an increase of 1.0 in the CER score is associated with only a 0.02 reduction in firm’s risk and cost of capital

The association between accounting and market-based risk measures

The paper derives operating and financial measures of leverage and tests their association with market based measures of equity risk. It is the first such study to use purely accounting-based data to derive the leverage measures. In line with previous literature it conducts a new test on the relative importance of operating and financial leverage. The results suggest that operating costs have a greater impact

Comparison theory and smooth minimal C*-dynamics

We prove that the C*-algebra of a minimal diffeomorphism satisfies Blackadar's Fundamental Comparability Property for positive elements. This leads to the classification, in terms of K-theory and traces, of the isomorphism classes of countably generated Hilbert modules over such algebras, and to a similar classification for the closures of unitary orbits of self-adjoint elements. We also obtain a structure theorem for the Cuntz semigroup in this setting, and prove a conjecture of Blackadar and Handelman: the lower semicontinuous dimension functions are weakly dense in the space of all dimension functions. These results continue to hold in the broader setting of unital simple ASH algebras with slow dimension growth and stable rank one. Our main tool is a sharp bound on the radius of comparison of a recursive subhomogeneous C*-algebra. This is also used to construct uncountably many non-Morita-equivalent simple separable amenable C*-algebras with the same K-theory and tracial state space, providing a C*-algebraic analogue of McDuff's uncountable family of II_1 factors. We prove in passing that the range of the radius of comparison is exhausted by simple C*-algebras.Comment: 30 pages, no figure

A Minimalist Turbulent Boundary Layer Model

We introduce an elementary model of a turbulent boundary layer over a flat surface, given as a vertical random distribution of spanwise Lamb-Oseen vortex configurations placed over a non-slip boundary condition line. We are able to reproduce several important features of realistic flows, such as the viscous and logarithmic boundary sublayers, and the general behavior of the first statistical moments (turbulent intensity, skewness and flatness) of the streamwise velocity fluctuations. As an application, we advance some heuristic considerations on the boundary layer underlying kinematics that could be associated with the phenomenon of drag reduction by polymers, finding a suggestive support from its experimental signatures.Comment: 5 pages, 10 figure

Drag Reduction by Polymers in Wall Bounded Turbulence

We address the mechanism of drag reduction by polymers in turbulent wall bounded flows. On the basis of the equations of fluid mechanics we present a quantitative derivation of the "maximum drag reduction (MDR) asymptote" which is the maximum drag reduction attained by polymers. Based on Newtonian information only we prove the existence of drag reduction, and with one experimental parameter we reach a quantitative agreement with the experimental measurements.Comment: 4 pages, 1 fig., included, PRL, submitte

Quantum gravitational contributions to quantum electrodynamics

Quantum electrodynamics describes the interactions of electrons and photons. Electric charge (the gauge coupling constant) is energy dependent, and there is a previous claim that charge is affected by gravity (described by general relativity) with the implication that the charge is reduced at high energies. But that claim has been very controversial with the situation inconclusive. Here I report an analysis (free from earlier controversies) demonstrating that that quantum gravity corrections to quantum electrodynamics have a quadratic energy dependence that result in the reduction of the electric charge at high energies, a result known as asymptotic freedom.Comment: To be published in Nature. 19 pages LaTeX, no figure