Significant Stake Research Articles

État d'avancement des banques françaises en matière de gestion du risque opérationnel

The management of operational risk : where are the French banks ? Operational risks always existed and banking industry knew their existence. Plans of control and monitoring were implemented to contain them. Nevertheless, Basel II changed the analysis of this risk. The reform’s objective was so to transform a local control of fragmented risks into a global management of operational risks as market or credit risks. Operational risk so became a major concern for the French banks. This preoccupation follows from Basel regular requirements, but banks acknowledge that the operational risk management represents a significant stake to reduce operational losses and therefore minimum capital requirements. Nevertheless, the management plans of French banks remain at various states of implementation. JEL classification : G21, G28, K23

Game farms as sustainable ecotourist attractions

The main goal of this research was to determine aspects that will contribute to the development of sustainable ecotourism on game farms. In order to achieve this, empirical research was done by means of a survey sample consisting of all the active members of the South African Game Farmers Organisation. There are a total of 1244 members, of whom 50 % (n = 622) were randomly sampled for the research. In the main findings of the research, aspects were identified that are developed according to the criterion for sustainable ecotourism. These aspects include natural/conservation/environmental considerations as well as cultural aspects, such as learning local languages. Aspects that are neglected include working closely with the local community to develop new products; developing partnerships and joint ventures in which the community has a significant stake; fostering the development of community-based tourism products by providing marketing and mentoring support; and considering using local entrepreneurs in the development of community initiatives.

Indigenous Values and Water Resource Management: A Case Study from the Northern Territory

Indigenous people have a significant stake in water resource management arising from customary socio-ecological relationships, in which water is a highly valued element or property, and also from customary and contemporary management practice. In many regions of Australia, Indigenous people are also significant landowners, with rights to aquatic, living resources. Whilst rivers and wetlands are now being recognised as legitimate ‘users’ of water, Indigenous interests in water-allocation processes, including their ecological knowledge, have tended to be neglected. In a small number of Australian catchments, incipient water allocation processes are now endeavouring to acknowledge and protect Indigenous ‘cultural values’ of water and water-dependent ecosystems. Where north Australian Indigenous values have been considered, there has been a tendency to assume that a surrogate environmental flow will address cultural requirements. This paper describes the nature of Indigenous values in a specific region of the...

Governance in the Twenty-First Century University: Approaches to Effective Leadership and Strategic Management (review)

Reviewed by: Governance in the Twenty-First Century University: Approaches to Effective Leadership and Strategic Management Richard J. Herdlein Governance in the Twenty-First Century University: Approaches to Effective Leadership and Strategic Management Dennis John Gayle, Bhoendradatt Tewarie, and A. Quinton White, Jr. San Francisco: Jossey-Bass, ASHE Higher Education Report, Volume 30, Number 1, 2003, 160 pages, $26 (softcover) Governance in the Twenty-First Century University is important reading for all of those concerned about the future of American higher education. The book is well researched and documented and covers many of the critical topics facing the academy. The authors take an objective look at traditional forms of shared governance and recent attempts to incorporate the university governance system. The major question posed is whether either approach is appropriate to meeting the needs of the modern American college and university and the challenges of today's environment. The fundamental premise in the analysis is that governance structures should be evaluated from the perspective of their contribution to teaching and learning, leadership and management, use of technology, and budgeting. The book is organized into seven sections including the results of litigation, surveys, and case studies pursued over the past six years. A fundamental conclusion is that faculty, administrators, and trustees view governance differently as evidenced by empirical data and pronouncements by the American Association of University Professors (AAUP) and the Association of Governing Boards (AGB). Issues of academic freedom, control of the curriculum, promotion and tenure, faculty workload, admissions criteria, accountability, quality, and access are major focal points of the discussion. The authors emphasize the importance of organizational culture in the process and structure of decision-making. Does the system of "shared meaning" held by members of an academic community emphasize teaching and learning or take on a more commercial approach that reflects interest in customers (students), labor force (faculty), profits, net income, and productivity? It is also noted that a consensus exists that governance models fall short of expectations in the view of faculty, administrators, and trustees. Faculty tend to maintain a strong belief in shared governance and their essential role in the decision-making process. Administrators express concern about the lack of flexibility and time required to respond to necessary change while trustees tend to view their role as the "ultimate responsibility center" in all areas of governance and that "commonly accepted business standards should inform academic management." The authors display insights into potential innovations in collegiate teaching and learning methodologies by attempting to bridge the gap between theory and practice. They refer to active learning as a "low risk, high return activity" and discuss how the curriculum, teaching methods and assessment, campus climate, and the broader institutional environment are all critical components that influence student learning and understanding. Organizational culture and governance of the university are viewed as determining the extent to which these approaches can engage students in a better way to equip them to function in a complex, interdependent world. The critical [End Page 210] variable is not institutional size, student profiles, or range of programs but whether universities and colleges are viewed from the top as academic corporations or institutions intended to foster innovative teaching and learning. The impact of information technology, distance learning, needs of the adult learner for education and training, and for-profit and corporate delivery systems are discussed in relation to potentially new models of governance, administration, and management. In terms of decision-making, the authors feel that administrative process needs to be delegated downward to the most appropriate level such as the department or program and budgetary systems must reflect this responsibility-centered management. Governance in the Twenty-First Century University is more than a book about decision-making in contemporary higher education. It covers a wide range of topics dealing with important issues that impact on faculty, administrators, trustees, students, politicians, as well as the public good. Discussing how our colleges and universities function in a changing environment is an important exercise for individuals having a significant stake in the quality of the American college and university. Although the work builds on past research by Balderson (1995), Baldridge (1986), Birnbaum (1988) and others, it takes a more comprehensive...

SCHOLARSHIP, STUDENTS, AND PRACTITIONERS: BRINGING SCHOLARSHIP INTO THE EXPECTATIONS OF PRACTITIONERS

ABSTRACT Increased attention is being given to bridging the gap separating thanatology researchers and practitioners. College undergraduates studying to be human service professionals represent a cohort with a significant stake in bridging this gap. Inculcating in college students expectations as well as expertise to use research as practitioners not only makes sense but also is an ethical obligation for college faculty. Two noteworthy models of academic practice—Boyer's vision of scholarship and Schon's idea of reflective practice—provide a conceptual framework for faculty engaging practitioners-in-the-making in the use of research. An example of one effort to engage students in such learning is offered, along with discussion of some implications and alternatives.

Indigenous Values and Water Resource Management: A Case Study from the Northern Territory

Indigenous people have a significant stake in water resource management arising from customary socio-ecological relationships, in which water is a highly valued element or property, and also from customary and contemporary management practice. In many regions of Australia, Indigenous people are also significant landowners, with rights to aquatic, living resources. Whilst rivers and wetlands are now being recognised as legitimate ‘users’ of water, Indigenous interests in water-allocation processes, including their ecological knowledge, have tended to be neglected. In a small number of Australian catchments, incipient water allocation processes are now endeavouring to acknowledge and protect Indigenous ‘cultural values’ of water and water-dependent ecosystems. Where north Australian Indigenous values have been considered, there has been a tendency to assume that a surrogate environmental flow will address cultural requirements. This paper describes the nature of Indigenous values in a specific region of the Northern Territory undergoing intensive natural resource management planning. I argue that the subjective, intangible and highly distinct values underpinning Indigenous people's relationships to water do not easily translate into Western environmental management frameworks, which have a utilitarian focus, and are highly reliant on objectification, quantification (e.g. environmental flows) and monetary valuations as a basis for resource allocation, regulation and management.

Reinterpretation of a metaphor: from stakes to claims

Abstract Stakeholder theory is a necessary approach to managing successful firms in today's complex economic, social, ethical and environmental context. Strategists wishing to apply stakeholder theory need to have a full understanding of the intricacies of this developing concept. A thorough application of stakeholder management requires a culture of openness and dialogue and awareness of organizational values. It is proposed that an ethically defensible approach to stakeholder theory is one that identifies key stakeholders by considering those with legitimate claims on the firm rather than just those with significant stakes in it. Stakeholder theory is a potentially important perspective in the successful management of the firm. This entails acknowledging the importance of groups other than stockholders, to encompass those who have an effect on, or are affected by, the organization. The theory has been adopted by those concerned with business ethics, as a means of leveraging consideration of corporate responsibilities into management discourses. In reviewing the development of stakeholder theory, it is held to be lacking in its normative foundations. Rather than focus on stakeholders, it is argued that managers should seek to engage with claimholders — those who have a legitimate claim on the firm. Key stakeholders need to be identified in line with organizational values. The mechanisms for ensuring an open dialogue need to be established and maintained. The stakeholder model when applied properly is a complex undertaking involving full commitment by participating organizations, coupled with a detailed understanding of the intricacies of the concept. Copyright © 2003 John Wiley & Sons, Ltd.

A New Kind of Science

A New Kind of Science

Analyse des effets d'échelles sur le comportement de structures composites

This work proposes the study of the influence of plies layout techniques applied in a scale reduction of a laminated composite structure which is solicited in fast dynamics. By its various advantages, the scale reduction represents a significant stake for the engineer. An experimental campaign is carried out on an omega form structure. The generated conclusions demonstrate the effectiveness of similarity technique. Specifically, relations of similarity seem to be meaningful and able to reproduce the same modes of ruin damage.

Studies of Scale Effects for Crash on Laminated Structures

This work proposes the study of the influence of scaled down ply layout techniques applied in a laminated composite structure submitted to fast dynamics. By its wide-ranging advantages, scale reduction represents a significant stake for engineers. An experimental campaign is carried out on an omega-shaped structure. The energies absorbed, as well as the efforts applied in the composite structure are then compared between the scale 1 prototype with the various models established (scales 1/2 and 1/4). The conclusions generated are numerous. Firstly, in this geometrical configuration, dynamic loading does not have the same effects on the results and, secondly, the relations of similitude used seem to be able to give some solutions, if the same ruin damage modes appear.

Social Concertation, Labour Unions and the Creation of a Black Bourgeoisie in South Africa

In South Africa, one of organised labour's most revolutionary responses to globalisation and an emerging social concertation regime is the frenzied establishment of union-owned investment companies by almost all black-majority labour unions. Labour's resort to wealth accumulation, encouraged and facilitated by the state and segments of corporate South Africa, threatens to transform workers into both labour and capital, employees and employers. An evaluation of the fields of accumulation of these union investment companies shows their limited potential to advance the government's goal of creating a black capitalist class. However, a 'concertation regime' that gives organised labour a significant material stake in the economy has the potential to enhance cross-class compromises that are necessary for the consolidation of democracy in post-apartheid South Africa. Labour's wealth accumulation endeavour is shown to have contributed to the adoption (by labour leaders) of innovative industrial relations and handling of recent strikes and strains in labour's relations with the government.

Marshy and Friends: Informality, Deformalisation and West Indian Island Experience

In 1973 Jamaica was one of the most prosperous independent states in the Caribbean, but by 1990 it was bankrupt -- 'effectively in receivership' to its foreign creditors with an external debt of 4.5 billion US dollars. The intervening years have seen a decline in the ability of successive governments to promote social welfare and development. Formal control over economic policy has shifted to Washington and the IMF, while informal networks have emerged subverting state regulation. This article revisits Keith Hart's analysis of the informal economy through a description of Marshy, a Jamaican street vendor who specialises in steamed fish and bammy . It examines the experience of people caught between an unravelling state apparatus and global market interests indifferent to expectations of social justice. For Marshy and his friends, involvement in transnational informal networks involves a synthesis of the social and the economic that the 'free market' ideology denies: these networks represent a significant stake in a just global political economy.

Why Do Companies Go Public? Empirical Evidence from Germany's Neuer Markt

Comparing the balance sheet structure of privately held German firms and companies which went public on Neuer Markt, Europe's dominant stock market segment for growth firms, we analyse the determinants of initial public offerings (IPOs) of technology-based firms. The likelihood of an IPO is increasing in the proportion of intangible assets as well as R&D intensity. IPOs are more likely for firms that grew and invested a lot. Leverage is only significant in year two before flotation and increases the probability of going public. We conclude that issuers on Neuer Markt are in urgent need of equity capital to fund new investment. The analysis of the companies that went public in other stock market segments on Frankfurt Stock Exchange shows that these IPO were realised at a time when the issuers were in sound eco-nomic and financial conditions. In a second step, the evolution of ownership and control around the IPO is analysed. The controlling shareholders of the Neuer Markt companies, most often board members, keep tight control over the firm's assets even after flotation. Founders continue to hold a significant stake of voting equity and keep up to be strongly represented in the firm's management and supervisory board. Board members typically use the IPO not only as a vehicle to get new funding without any significant loss of control due to a dispersed allocation of sold shares. They even consolidate control as the relative size of their blockholding - in comparison with the other blockholders' stakes - increases.

Outside Directors with a Stake: The Linchpin in Improving Governance

In recent years, numerous governance experts and activist investors have argued that outside directors should hold significant stakes in the companies they oversee. So far, however, systematic evidence that outside directors' holdings are actually associated with subsequent corporate performance has been scarce. This article provides such evidence. It examines a sample of companies that significantly outperformed their business sectors (in shareholder returns) over a 10-year period (Stars) and a matched sample of companies that underperformed their sectors during the same period (Laggards). At the outset of the 10-year period—before their performance diverged—the outside directors of the Star companies held substantially more equity (about four to five times more) than did the directors of the Laggard companies. Then, as the Stars outpaced the Laggards in performance, the disparity in director holdings grew even wider. The results strongly suggest that directors with a meaningful stake are a pivotal factor in improved governance. The article concludes with a proposal for a new approach for getting equity into directors' hands—a stock purchase matching fund for each director—that overcomes the drawbacks of currently prevailing approaches.

Management buy‐outs: the impact of ownership changes on performance

Management buy‐outs bring about a change in status of the management team from employee to owner. According to the “agency model”, this change in status provides the financial incentives necessary to ensure that company performance will improve post‐MBO. The key financial incentive present is that the rewards of better performance now accrue to the management team rather than to the previous owners. The “agency model” argues that having a significant financial stake in a company will militate against discretionary behaviour by the new owners. A sample of small management buy‐outs was analysed in terms of two performance indicators, cash management and profitability. Performance was measured against three benchmarks: prior company performance, the performance of companies of similar size and the performance of the industry average. In general, there is no real evidence of better cash management but there is some evidence of improved profitability. The results therefore, offer limited support for the role of incentives proposed by the agency model.

Sterilized Mars rock and soil analog samples available for analysis

When rock and soil samples are returned from Mars in 2008, they will be immediately placed in biological quarantine and tested for signs of life and hazard, a process that could take weeks or months. Selected subsamples, which have been biologically sterilized, could be released sooner for geochemical analysis. If signs of life or hazard are found in the martian samples, it is quite possible that only sterilized material will make it out of quarantine. Geoscientists thus have a significant stake in finding sterilization techniques that have minimal and quantifiable effects on geochemical measurements of these samples.

ISO 9000 implementation in Turkish industry

Notes that it has become a competitive necessity for firms doing business globally to acquire the ISO 9000 certification, despite the misgivings many have with regard to its true effectiveness. Turkey, an emerging industrial economy, has a significant stake in the EU markets. At present, there is no systematic study documenting the status of ISO 9000 implementation in Turkey, the profile of the certified firms, their motivation, and their organizational experience during and after the certification process; whereas such studies have begun to emerge in other countries. Provides a background on the Turkish quality movement, and reports the results of a survey conducted among large Turkish companies that attempts to provide answers to the issues raised above. The findings are revealing and should help an international manager doing or planning to do business in Turkey, or his Turkish counterpart thinking about getting certification.

IMPACTS OF TAXES TO REDUCE AGRICHEMICAL USE WHEN FARM POLICY IS ENDOGENOUS

The economic impacts of policies to reduce water pollution from agriculture have been explored in a number of studies. A standard assumption in this literature is that farm income support policies are given. However, the modern public choice view of agricultural policy suggests that significant environmental initiatives in agriculture would likely be accompanied by changes in farm income policies to protect those with a significant stake in agriculture. We explore the potential effects of such compensating adjustments on the costs and effectiveness of taxes on polluting chemical inputs in US corn production. We find that compensating farm policy adjustments can greatly increase the costs and reduce the effectiveness of the environmental protection measure. The results also indicate the potentially high costs of poor policy co‐ordination.

Emerging Equity Markets: Tapping into Global Investment Flows

In recent years, many developing countries have undertaken important, policy reforms, in cluding measures intended to stimulate domestic and international investor interest in locally issued and traded shares, in order to professionalize local equity markets and mobi lize investor capital for future, more complex stages of economic growth. This study assesses emerging-market characteristics, specifically market capitalization, trading volumes, turn over ratios and cross-border equity flows. It then links these developments to international investor interest, particularly in the light of the low correlations that exist between the return performance of emerging and developed equity markets and the resulting unusually high value to asset-holders of international portfolio diversification. We then identify the princi pal quantitative and structural factors that appear to explain the differential growth and development of emerging equity markets, both conceptually and empirically, using straight forward pooled regression methodology. Policy options for improving the functioning of emerging equity markets and their linkage into one of the most rapidly evolving dimensions of global capital flows are discussed. The development of efficient domestic capital markets, especially for equities, carries with it significant potential benefits in terms of both the quantitative and qualitative dimensions of economic growth. These are achieved through improved static and dynamic efficiencies in the domestic financial market, facilitating privatiza tion of state-owned enterprises and initial public offerings, improving the process of corporate control, and tapping into global flows of portfolio investments. Further social gains may be achieved through the spread of public ownership of corpo rate shares, mutual funds, pension funds and other collective investment structures giving the general public a significant stake in the operation of the

The Structure of Privatization Plans

In recent years a vast transfer of state-owned assets to the private sector has taken place in many countries, irrespective of their level of development or the political affiliation of their government. Privatization is believed to improve economic incentives; attract managerial and technological resources from the private sector; broaden share ownership; and reduce public sector borrowing. In fact, privatization can be interpreted as an alternative form of public financing, a sort of equity financing to reduce the overhang of public debt, as the budget gains from the higher value of the firm under private ownership. In fact, the historical evidence indicates that state-owned enterprises have systematically drained public resources rather than contributed earnings, particularly in the Third World. We document strong regularities in privatization programs across several countries. The data indicate a predominance of partial, staggered sales. Even though transfer of control typically takes place rapidly, governments tend to retain a significant stake for long intervals of time. The paper also examines the traditional argument for gradual sales, namely limited market capacity, with a confidence-building rationale. Even after privatization restrains government interference, a firm is still exposed to the risk of adverse policy changes, particularly when it operates in a monopolistic market. A selling government will face investors' diffidence about its policy intentions after the sale; it may therefore structure the sale as to build policy credibility and maximize proceeds. To enhance investors' confidence, a selling government may signal commitment to current policy by retaining a stake in the firm for some time (while transferring managerial control), thus showing willingness to bear some financial cost of policy changes; as time passes,without a policy reversal, confidence and thus sale prices improve. In addition, early sales,may be deliberately underpriced in order to convince the market to absorb larger sales, which reduce the risk born by the government and therefore enhance policy risk. While the two explanations have similar empirical implications, our informal evaluation of the evidence appears more favorable to the reputation-building hypothesis than to the notion of temporary market capacity constraints. Presumably, the risk and the extent of policy change is largest for monopolistic industries or firms in protected markets, while firms operating in competitive markets are less subject to the threat of quasi rent appropriation. We find evidence that firms in such policy-sensitive sectors tend to be privatized with smaller initial sales and larger underpricing, and possibly requiring a longer time horizon before the share retained by the government can be sold. Complete sales are on average associated with manufacturing firms in competitive markets, while sales of utilities with potential monopolistic rents are more distributed over time. We document that retained stakes are explicitly meant to be sold gradually over a few years. Often, stakes in several firms are sold simultaneously, creating considerable government risk sharing across industries. The profile of privatization proceeds increases over time, suggesting gradual selling calibrated to build investors confidence. As policy credibility increases, larger initial sales become more frequent. We also document extensive underpricing, which is on average greater in privatization sales than in initial public offerings (IPO) of private firms. Underpricing appear to be largest for firms with large taxable rents, such as utilities. This is consistent with a signalling argument, since these firms are exposed to greater policy risk, and inconsistent with an asymmetric information explanation over asset values, since these firms tend to be large and well known relative to private IPOs.