In her final article at the Financial Times, business editor Sarah Gordon summarises what she learned over 20 years and concludes, “Many businesses are badly run, but business is not bad”. It is a pretty damning conclusion, supported by the large list of examples she offers. Her conclusion does not surprise me. In my past writings I have often referred […]
We examine the effect of capitalisation versus expensing on the amount of UK firms’ research and development (R&D expenditures). We focus on the years immediately before and after the UK switched from the UK Generally Accepted Accounting Practice (UK GAAP) to International Financial Reporting Standards (IFRS) in 2005. Under UK GAAP, firms had the option to capitalise or expense […]
Fixed income markets are very large. As of 31 December, 2016 there were over $12 trillion of outstanding corporate debt from companies in developed markets. Yet, despite the size of this asset class, little research has explored the role of fundamental analysis in the context of credit markets.
Default risk, i.e., the risk that a debt issuer will not make […]
When it was reported that there had been no deaths from commercial passenger jet accidents in 2017, President Trump was quick to claim credit on Twitter: “Since taking office I have been very strict on Commercial Aviation. Good news – it was just reported that there were Zero deaths in 2017, the best and safest year on record!”
But the […]
Sometimes we ask ourselves: after the damages caused by the financial crisis, what has been done to limit the misbehaviour of those who run the banks? The answer is that a huge number of regulations has been introduced, but often they are bypassed. An example for all: the loophole in bankers’ bonus cap.
A loophole in the bonus cap
Let’s take […]
The past two decades have seen a steady increase in the number of organizations that prescribe accountability measures to improve the perception of trustworthiness of non-governmental organisations (NGOs). These include GuideStar (1994), the Sphere Project (1997), the Charity Navigator (2001), the INGO Accountability Charter (2008), and the Core Humanitarian Standard (2014). This push for accountability measures reflects a wider trend in NGO self-regulation as the best means to promote good […]