The abandoned mandatory OFR: a lost opportunity for SER?

Purpose – An important outcome of the UK Company Law Review (CLR) involved draft regulations for a mandatory operating and financial review (OFR). The unprecedented abandonment of this mandatory OFR in November 2005 threw debate about the genuine motivations underlying the CLR into disarray. This paper seeks to reinterpret the abandonment of a mandatory OFR using interview research. Design/methodology/approach – The authors conducted a series of 24 interviews with companies from the FTSE100 between May and August 2004, prior to the abandonment. Findings – The interviews showed that the OFR was perceived as an appropriate vehicle for social and environmental reporting (SER). The interviewees considered that a mandatory OFR would provide a means of forcing SER into the mainstream and making it mandatory at a basic level. The interviews revealed that processes for the identification of material SER differ widely between organisations, ranging from embryonic to highly structured. Further, interviewees believed that directors had the final veto on inclusion of information. Despite directors' inclination to hide behind materiality as a means of avoiding SER, interviewees did not view the proposed mandatory OFR as “greenwash” but as a vehicle that would increase stakeholder confidence, as processes underlying the proposed OFR would be audited. Practical implications – The research implies that abandoning the mandatory OFR represented a lost opportunity for SER. Originality/value – The paper provides new evidence on the processes of materiality decision making in the SER area as well as strong endorsement of the mandatory OFR, contrary to the government turn-around.

Mandatory and voluntary information disclosure and the effects on financial analysts: evidence from China

Purpose – This paper aims to make a comparison, different from existing literature solely focusing on voluntary earnings forecasts and ex post earnings surprise, between the effects of mandatory earnings surprise warnings and voluntary information disclosure issued by management teams on financial analysts in terms of the number of followings and the accuracy of earnings forecasts. Design/methodology/approach – This paper uses panel data analysis with fixed effects on data collected from Chinese public firms between 2006 and 2010. It uses an exogenous regulation enforcement to minimise the endogeneity problem. Findings – This paper finds that financial analysts are less likely to follow firms which mandatorily issue earnings surprise warnings ex ante than those voluntarily issue earnings forecasts. Moreover, ex post, they issue less accurate and more dispersed forecasts on former firms. The results support Brown et al.’s (2009) finding in the USA and suggest that the earnings surprise warnings affect information asymmetries. Practical implications – This paper justifies the mandatory earnings surprise warnings policy issued by Chinese Securities Regulatory Commission in 2006. Originality/value – Mandatory earnings surprise is a unique practical regulation for publicly listed firms in China. This paper, for the first time, provides empirical evaluation on the effectiveness of a mandatory information disclosure policy in China. Consistent with existing literature on information disclosure by public firms in other countries, this paper finds that, in China, voluntary information disclosure captures more private information than mandatory information disclosure on corporate earnings ability.

Molecular genetic differentiation in earthworms inhabiting a heterogeneous Pb-polluted landscape

A Pb-mine site situated on acidic soil, but comprising of Ca-enriched islands around derelict buildings was used to study the spatial pattern of genetic diversity in Lumbricus rubellus. Two distinct genetic lineages ('A' and 'B'), differentiated at both the mitochondrial (mtDNA COII) and nuclear level (AFLPs) were revealed with a mean inter-lineage mtDNA sequence divergence of approximately 13%, indicative of a cryptic species complex. AFLP analysis indicates that lineage A individuals within one central 'ecological island' site are uniquely clustered, with little genetic overlap with lineage A individuals at the two peripheral sites. FTIR microspectroscopy of Pb-sequestering chloragocytes revealed different phosphate profiles in residents of adjacent acidic and calcareous islands. Bioinformatics found over-representation of Ca pathway genes in ESTPb libraries. Subsequent sequencing of a Ca-transport gene, SERCA, revealed mutations in the protein's cytosolic domain. We recommend the mandatory genotyping of all individuals prior to field-based ecotoxicological assays, particularly those using discriminating genomic technologies.

Consumer welfare effects of introducing and labeling genetically modified food

Non-hypothetical valuations obtained from experimental auctions in three United States and two European locations were used to calculate welfare effects of introducing and labeling of genetically modified food. Under certain assumptions, we find that introduction of genetically modified food has been welfare enhancing, on average, for United States consumers but not so for Europeans and while mandatory labeling has been beneficial for European consumers, such a policy would be detrimental in the United States. (c) 2005 Elsevier B.V. All rights reserved.

Multiple-scattering in radar systems: a review

Although extensively studied within the lidar community, the multiple scattering phenomenon has always been considered a rare curiosity by radar meteorologists. Up to few years ago its appearance has only been associated with two- or three-body-scattering features (e.g. hail flares and mirror images) involving highly reflective surfaces. Recent atmospheric research aimed at better understanding of the water cycle and the role played by clouds and precipitation in affecting the Earth's climate has driven the deployment of high frequency radars in space. Examples are the TRMM 13.5 GHz, the CloudSat 94 GHz, the upcoming EarthCARE 94 GHz, and the GPM dual 13-35 GHz radars. These systems are able to detect the vertical distribution of hydrometeors and thus provide crucial feedbacks for radiation and climate studies. The shift towards higher frequencies increases the sensitivity to hydrometeors, improves the spatial resolution and reduces the size and weight of the radar systems. On the other hand, higher frequency radars are affected by stronger extinction, especially in the presence of large precipitating particles (e.g. raindrops or hail particles), which may eventually drive the signal below the minimum detection threshold. In such circumstances the interpretation of the radar equation via the single scattering approximation may be problematic. Errors will be large when the radiation emitted from the radar after interacting more than once with the medium still contributes substantially to the received power. This is the case if the transport mean-free-path becomes comparable with the instrument footprint (determined by the antenna beam-width and the platform altitude). This situation resembles to what has already been experienced in lidar observations, but with a predominance of wide- versus small-angle scattering events. At millimeter wavelengths, hydrometeors diffuse radiation rather isotropically compared to the visible or near infrared region where scattering is predominantly in the forward direction. A complete understanding of radiation transport modeling and data analysis methods under wide-angle multiple scattering conditions is mandatory for a correct interpretation of echoes observed by space-borne millimeter radars. This paper reviews the status of research in this field. Different numerical techniques currently implemented to account for higher order scattering are reviewed and their weaknesses and strengths highlighted. Examples of simulated radar backscattering profiles are provided with particular emphasis given to situations in which the multiple scattering contributions become comparable or overwhelm the single scattering signal. We show evidences of multiple scattering effects from air-borne and from CloudSat observations, i.e. unique signatures which cannot be explained by single scattering theory. Ideas how to identify and tackle the multiple scattering effects are discussed. Finally perspectives and suggestions for future work are outlined. This work represents a reference-guide for studies focused at modeling the radiation transport and at interpreting data from high frequency space-borne radar systems that probe highly opaque scattering media such as thick ice clouds or precipitating clouds.

Effects of tamper-resistant bait boxes on bait uptake by Norway rats (Rattus norvegicus Berk.)

We compared the quantity of wheat bait consumed by Norway rats (Rattus norvegicus) from: (i) wooden bait trays, made as safe as possible from non-target animals using materials available at trial sites, and (ii) three different, proprietary tamper-resistant rat bait boxes. A balanced Latin square experimental design was used to overcome operational biases that occur when baits of different types are applied simultaneously at the same sites. The consumption of bait from the four different types of bait placement differed significantly and accounted for more than 76% of the total variation. The amount of bait eaten by rats from the bait trays was approximately eight times greater than the quantity eaten from the tamper-resistant bait boxes. The three bait box designs appeared to deter bait consumption by rats to a similar extent. Tamper-resistant bait boxes are essential tools in the application of rodenticides in many circumstances but their use should not be mandatory when it is possible to make baits safe from non-target animals by other means.

Integrated optics for nulling interferometry in the thermal infrared: progress and recent achievements

The search for Earth-like exoplanets, orbiting in the habitable zone of stars other than our Sun and showing biological activity, is one of the most exciting and challenging quests of the present time. Nulling interferometry from space, in the thermal infrared, appears as a promising candidate technique for the task of directly observing extra-solar planets. It has been studied for about 10 years by ESA and NASA in the framework of the Darwin and TPF-I missions respectively. Nevertheless, nulling interferometry in the thermal infrared remains a technological challenge at several levels. Among them, the development of the "modal filter" function is mandatory for the filtering of the wavefronts in adequacy with the objective of rejecting the central star flux to an efficiency of about 105. Modal filtering takes benefit of the capability of single-mode waveguides to transmit a single amplitude function, to eliminate virtually any perturbation of the interfering wavefronts, thus making very high rejection ratios possible. The modal filter may either be based on single-mode Integrated Optics (IO) and/or Fiber Optics. In this paper, we focus on IO, and more specifically on the progress of the on-going "Integrated Optics" activity of the European Space Agency.

Small business lease reform - can the UK learn from the Australian experience?

This paper addresses the commercial leases policy issue of how to deal with small business tenants. The UK has adopted a voluntary solution to commercial lease reform by using Codes of Practice which is in contrast to the legislative approach adopted by Australia to attempt to solve its perceived problems with small business retail tenancies. The aim of the research was to examine the perceptions of the effectiveness of the legislation in Australia and discuss any implications for the UK policy debate. The research used a combination of literature and legislation review and a semi structured interview survey to investigate the policy aims and objectives of Australian Federal and State Governments, identify the nature and scope of the Australian legislation and examine perceptions of effectiveness of the legislation in informing small business tenants. The situation is complicated in Australia due to leases being a State rather than Federal responsibility therefore the main fieldwork was carried out in one case study State, Victoria. The paper concludes that some aspects of the Australian system can inform the UK policy debate including mandatory information provision at the commencement of negotiations and the use of lease registrars/commissioners. However, there are a number of issues that the Australian legislation does not appear to have successfully addressed including the difficulties of legislating across partial segments of the commercial property market and the collection of data for enforcement purposes.

Small business legislation in Australia: does it provide a solution to part of the UK lease reform debate?

This paper addresses the commercial leases policy issue of how to deal with small business tenants. The UK has adopted a voluntary solution to commercial lease reform by using Codes of Practice which is in contrast to the legislative approach adopted by Australia to attempt to solve its perceived problems with small business retail tenancies. The major aim of the research was to examine the perceptions of the effectiveness of the legislation in Australia and discuss any implications for the UK policy debate but the results of the research also raise questions for the Australian regime. The research used a combination of literature and legislation review and a semi structured interview survey to investigate the policy aims and objectives of Australian Federal and State Governments, identify the nature and scope of the Australian legislation and examine perceptions of effectiveness of the legislation in informing small business tenants. The situation is complicated in Australia due to leases being a State rather than Federal responsibility therefore the main fieldwork was carried out in one case study State, Victoria. The paper concludes that some aspects of the Australian system can inform the UK policy debate including mandatory information provision at the commencement of negotiations and the use of lease registrars/commissioners. However, there are a number of issues that the Australian legislation does not appear to have successfully addressed including the difficulties of legislating across partial segments of the commercial property market and the collection of data for enforcement purposes.

Building simulation

This chapter aims to provide an overview of building simulation in a theoretical and practical context. The following sections demonstrate the importance of simulation programs at a time when society is shifting towards a low carbon future and the practice of sustainable design becomes mandatory. The initial sections acquaint the reader with basic terminology and comment on the capabilities and categories of simulation tools before discussing the historical development of programs. The main body of the chapter considers the primary benefits and users of simulation programs, looks at the role of simulation in the construction process and examines the validity and interpretation of simulation results. The latter half of the chapter looks at program selection and discusses software capability, product characteristics, input data and output formats. The inclusion of a case study demonstrates the simulation procedure and key concepts. Finally, the chapter closes with a sight into the future, commenting on the development of simulation capability, user interfaces and how simulation will continue to empower building professionals as society faces new challenges in a rapidly changing landscape.

Is Energy Efficiency Priced in the Housing Market? Some Evidence from the United Kingdom.

This paper investigates whether energy performance ratings, as measured by mandatory Energy Performance Certificates (EPCs), are reflected in the sale prices of residential properties. This is the first large-scale empirical study of this topic in the UK involving approximately 400,000 dwellings in the period from 1995 to 2011. Applying hedonic regression and an augmented repeat sales regression, we find a positive relationship between the energy efficiency rating of a dwelling and the transaction price per square metre. The price effects of superior energy performance tend to be higher for terraced dwellings and flats compared to detached and semi-detached dwellings. The evidence is less clear-cut for house price growth rates but remains supportive of an overall positive association. Overall, the results of this study appear to support the hypothesis that energy efficiency levels are reflected in UK house prices, at least in recent years.

Electricity use in the commercial kitchen

Academic and industrial literature concerning the energy consumption of commercial kitchens is scarce. Electricity consumption data were collected from distribution board current transformers in a sample of fourteen UK public house restaurants. This was set up to identify patterns of appliance use as well as to assess the total energy consumption of these establishments. The electricity consumption in the selected commercial kitchens was significantly higher than current literature estimates. On average, 63% of the premises electricity consumption was attributed to the catering activity. Key appliances that contributed to the samples average electricity consumption were identified as refrigeration (70 kwh, 41%), fryers (11 kwh, 13%), combi-ovens (35 kwh, 12%) bain maries (27 kwh, 9%) and grills (37kwh, 12%). Behavioral factors and poor maintenance were identified as major contributors to excessive electricity usage with potential savings of 70% and 45% respectively. Initiatives are required to influence operator behavior, such as the expansion of mandatory energy labeling, improved feedback information and the use of behavior change campaigns. Strict maintenance protocols and more appropriate sizing of refrigeration would be of great benefit to energy reduction.

Differentiating core and co-opted mechanisms in calculation: The neuroimaging of calculation in aphasia

The role of language in exact calculation is the subject of debate. Some behavioral and functional neuroimaging investigations of healthy participants suggest that calculation requires language resources. However, there are also reports of individuals with severe aphasic language impairment who retain calculation ability. One possibility in resolving these discordant findings is that the neural basis of calculation has undergone significant reorganization in aphasic calculators. Using fMRI, we examined brain activations associated with exact addition and subtraction in two patients with severe agrammatic aphasia and retained calculation ability. Behavior and brain activations during two-digit addition and subtraction were compared to those of a group of 11 healthy, age-matched controls. Behavioral results confirmed that both patients retained calculation ability. Imaging findings revealed individual differences in processing, but also a similar activation pattern across patients and controls in bilateral parietal cortices. Patients differed from controls in small areas of increased activation in peri-lesional regions, a shift from left fronto-temporal activation to the contralateral region, and increased activations in bilateral superior parietal regions. Our results suggest that bilateral parietal cortex represents the core of the calculation network and, while healthy controls may recruit language resources to support calculation, these mechanisms are not mandatory in adult cognition.

Electricity use in the commercial kitchen

Academic and industrial literature concerning the energy use of commercial kitchens is scarce. Electricity consumption data were collected from distribution board current transformers in a sample of fourteen UK public house-restaurants. This was set up to identify patterns of appliance use as well as to assess the total energy consumption of these establishments. The electricity consumption in the selected commercial kitchens was significantly higher than current literature estimates. On average, 63% of the premises’ electricity consumption was attributed to the catering activity. Key appliances that contributed to the samples average daily electricity consumption of the kitchen were identified as refrigeration (70 kWh, 41%), fryers (11 kWh, 13%), combination ovens (35 kWh, 12%), bain maries (27 kWh, 9%) and grills (37 kWh, 12%). Behavioural factors and poor maintenance were identified as major contributors to excessive electricity usage with potential savings of 70% and 45% respectively. Initiatives are required to influence operator behaviour, such as the expansion of mandatory energy labelling, improved feedback information and the use of behaviour change campaigns. Strict maintenance protocols and more appropriate sizing of refrigeration would be of great benefit to energy reduction.