Long-term return reversals-Value and growth or tax? UK evidence

This paper examines (i) whether value-growth characteristics have more power than past performance in predicting return reversals; and (ii) whether typical rational behaviour such as incentives to delay paying capital gain taxes can better explain long-term reversals than past performance. We find that value-growth characteristics generally provide better explanations for long-term stock returns than past performance. The evidence also shows that winners identified by capital gains dominate past performance winners in predicting reversals in the cross-sectional comparison. However, in the time-series analysis, when returns on capital gain winners are adjusted by the Fama and French (1996) risk factors, the predictive power of capital gain winners disappears. Our results show that capital gain winners are heavily featured as growth stocks. Return reversals in capital gain winners potentially reflect market price corrections for growth stocks. We conclude that investors’ incentives to delay paying capital gain taxes cannot fully rationalise long-term reversals in the UK market. Our results also imply that the long-term return pattern potentially reflects a mixture of investor rational and irrational behaviour.

Africa’s prospects and South Africa’s leadership potential in the emerging markets century

This article examines Africa's role in an evolving international system where powerful emerging markets, such as bric, together with established powers are shaping economic trajectories. The specific focus is on South Africa as an aspiring leader on the African continent, and on its potential for becoming an emerging market shaping the global order together with bric and the West. It is unclear whether a changing global economy in which the postcolonial world plays a greater role will result in improved developmental prospects for Africans as African countries gradually reorient themselves from the West to the South, or whether relations with emerging markets will resemble neo-colonial ties with the West. South Africa's structural weakness, stemming from serious domestic problems of a social, political and economic nature, threatens to undermine its standing in Africa and its emerging market status.

A Preference for Mephedrone: Drug Markets, Drugs of Choice, and the Emerging “Legal High” Scene

This study focuses on individuals' preferences for mephedrone, a new psychoactive substance that has emerged in several countries. We examine the reasons for mephedrone preferences, and describe the positive and negative effects of the drug experience, route of administration and consumers' views about the legality of mephedrone. Data were collected through semi-structured interviews with 45 adults who had used mephedrone since January 2010. Respondents resided in one of two jurisdictions that were characterized by different legislative controls over mephedrone. The findings suggest the importance of macro-level drug market factors that shaped people's preferences for mephedrone. Additionally, respondents' preferences were guided by pharmacological properties that helped them conceal the effects of mephedrone in public and semi-public spaces. Respondents were not deterred by the (impending) change from legal to illicit drug. The findings have implications for the study of localized drug markets, and in particular, legislative controls over emerging legal highs.

'Trusting the numbers': mineral prospecting, raising finance and the governance of knowledge

Mineral prospecting and raising finance for ‘junior’ mining firms has historically been regarded as a speculative activity. For the regulators of securities markets upon which ‘junior’ mining companies seek to raise capital, a perennial problem has been handling not only the indeterminacy of scientific claims, but also the social basis of epistemic practices. This paper examines the production of a system of public warrant and associated knowledge practices intended to enable investors to differentiate between ‘destructive’ and ‘productive’ varieties of financial speculation. It traces the use of the notion of ‘disclosure’ in constructing and legitimizing the ‘juniors’ market in Canada. It argues that though the work of ‘economics’ may be necessary in the construction of markets, it is by no means sufficient. Attention must also be given to the ways in which legal models of ‘the free-market’ can be translated and constantly re-worked across the sites and spaces of regulatory practice, animating the geographies of markets.

Knowledge as Power, Knowledge as Capital: A Political Economy Critique of Modern 'Academic Capitalism'

We are constantly reminded that we live in a 'knowledge society, and indeed that with a 'knowledge economy' a nation's international competiveness is directly linked to its ability to innovate, out-compete and successfully commercialise knowledge. INcreasingly, research within universities is being directed, incetivized and ultimately disciplined towards clear 'economic' priorities. This article offers a critical analysis - employing a broad political economy approach - of the ways in which research within universities and other places of higher learning has become increasingly orientated towards a narrow set of economic goals.

Cultured responses: the production of social capital in faith based organisations

The theoretical concept of ‘social capital’ has been increasingly invoked in connection to religion by academics, policy makers, charities and Faith Based Organisations (FBOs). Drawing on the popularisation of the term by Robert Putnam, many in these groups have hailed the religious as one of the most productive generators of social capital in today’s societies. In this article, we examine this claim through ethnographic material relating to Faithworks, a national ‘movement’ of Christians who provide welfare services within their communities. We claim that to apply the term ‘social capital’ in a meaningful sociological manner to FBOs requires a return to Pierre Bourdieu’s use of the term in order to refuse to extricate it from the practices in which it is enmeshed.

Credit Unions: A Theoretical and Empirical Overview

In 2009 there were over 49,330 credit unions across 98 countries with more than 184 million members and approximately $1,354 billion in assets. There is a great diversity within the credit union movement across these countries. This reflects the various economic, historic and cultural contexts within which credit unions operate. This paper traces the evolution of the credit union movement. It examines credit union objectives, and considers issues relating to efficiency, technology adoption, product diversification, merger, failure and demutualization. The regulatory environment within which credit unions operate is also explored under the themes of interest rate regulation, common bond requirements, taxation, deposit insurance and capital regulation. The overview also considers demutualization and the costs and benefits to credit unions of altering their organizational form.

Crucial silences: When Accountability Met PFI and Finance Capital

During recent years, a wide spectrum of research has questioned whether public services/infrastructure procurement through private finance, as exemplified by the UK Private Finance Initiative (PFI), meets minimum standards of democratic accountability. While broadly agreeing with some of these arguments, this paper suggests that this debate is flawed on two grounds. Firstly, PFI is not about effective procurement, or even about a pragmatic choice of procurement mechanisms which can potentially compromise public involvement and input; rather it is about a process where the state creates new profit opportunities at a time when the international financial system is increasingly lacking in safe investment opportunities. Secondly, because of its primary function as investment opportunity, PFI, by its very nature, prioritises the risk-return criteria of private finance over the needs of the public sector client and its stakeholders. Using two case studies of recent PFI projects, the paper illustrates some of the mechanisms through which finance capital exercises control over the PFI procurement process. The paper concludes that recent proposals aimed at “reforming” or “democratising” PFI fail to recognise the objective constraints which this type of state-finance capital nexus imposes on political process.

The Development of Entrepreneurial Leadership: The Role of Human, Social and Institutional Capital

This paper contributes to the literature on entrepreneurial leadership development. Leadership studies are characterized by an increasing emphasis given to an individual leader's social and organizational domain. Within the context of human capital and social capital theory, the paper reflects on the emergence of a social capital theory of leadership development. Using a retrospective, interpretivist research method, the authors present the experience of a cohort of business leaders on an executive development programme to uncover the everydayness of leadership development in practice. Specifically, they explore how entrepreneurial leadership develops as a social process and what the role of social capital is in this. The findings suggest that the enhancement of leaders’ human capital only occurred through their development of social capital. There is not, as extant literature suggests, a clear separation between leader development and leadership development. Further, the analysis implies that the social capital theory of leadership is limited in the context of the entrepreneurial small firm, and the authors propose that it should be expanded to incorporate institutional capital, that is, the formal structures and organizations which enhance the role of social capital and go beyond enriching the human capital stock of individual leaders

Devolution and the politics of development in Northern Ireland

The reintroduction of devolution in Northern Ireland is widely interpreted as the working out of the Belfast Agreement (1998) which aimed to embed political consensus in shared institutions of the state. However, such analysis tends to be limited with regard to wider political economy readings of the devolution project and historic struggles to find an appropriate institutional fix to manage different
forms of crisis. Peace and stability have, it is argued, permitted Northern Ireland's reentry to global markets and circuits of capital with new governance structures being assembled to reconfigure `post- conflict' economic space. We argue that the onset of devolution has promoted a mix between ethnosectarian resource competition and a constantly expanding neoliberal model of governance.
Devolved neoliberal structures that sustain social polarisation may perpetuate strategies of resistance that could cut across and challenge ethnosectarian politics and deepening social segregation.

Building bridging social capital in a divided society: The role of participatory citizenship education

Participatory citizenship education has been highlighted as a strategy to promote social cohesion in divided societies whereby collaborations with Non-Governmental Organisations and inter-school links have been proposed as tools to improve social networks between schools and communities. This article explores the role and meaning of citizenship education and cross-community participation in promoting social capital and social cohesion. School survey findings, focus groups and interviews with young people and educators indicated that differences between school sectors and established allegiances with particular communities and NGOs may limit the potential for citizenship education to produce bridging social capital and serve to reproduce bonding social capital. It is argued that the introduction of citizenship curricula into segregated schools systems in divided societies may be useful to promote citizenship values and positive attitudes to the other but insufficient to promote the development of bridging social capital and, ultimately, social cohesion in the long term.