The objective of the paper is to explain the development and characteristics of corporations, in ... more The objective of the paper is to explain the development and characteristics of corporations, in particular, the scale and scope of the firm's activities. Using theoretical analysis, analytical models, and historical and modern examples the paper aims to synthesise the characteristics of scale and scope economies with processes of accountability to external stakeholders. It begins by examining the nature of the conventional financial balance sheet and then goes on to examine an alternative balance sheet view of the firm. It then seeks to offer an explanation of changes in the scope of firms' activities, presenting a knowledge-based view of entrepreneurship. Finally it offers an explanation of the characteristics of business networks.
This is a repository copy of Economic development, climate change and the limitations of corporat... more This is a repository copy of Economic development, climate change and the limitations of corporate social responsibility.
The York Management School This paper is circulated for discussion purposes only and its contents... more The York Management School This paper is circulated for discussion purposes only and its contents should be considered preliminary.
... the subsequent use of plantation profits in industrial capital formation, slavery had little ... more ... the subsequent use of plantation profits in industrial capital formation, slavery had little ... Newton shows that whilst ownership concentration led to more rule-based and centralised ... Political influences, and, as White demonstrates, Anglo-American Cold War diplomacy dictated the ...
This paper examines the relationship between public houses or 'pubs' and house prices in Great Br... more This paper examines the relationship between public houses or 'pubs' and house prices in Great Britain. Using a unique dataset, comprising statistical indicators for 373 local authorities registered between 2005 and 2015, the authors investigate this relationship from a panel data perspective. The analysis identifies a strong positive association between an increase in the number of pubs and house prices, showing different patterns with regard to pubs located in urban, suburban and rural areas. Results offer an original contribution to the literature related to the economic value of pubs as important third places in Great Britain, providing the basis for potential policy choices aimed at supporting community investment.
The paper presents a conceptual framework of financial fraud based on the historical interaction ... more The paper presents a conceptual framework of financial fraud based on the historical interaction of opportunity and impediment. In the long run the character of opportunity is determined by the technical characteristics of assets and their unique, unknowable or unverifiable features. Impediment is promoted by consensus about the real value of assets, such that through active governance processes, fraudulent deviations from real value can be easily monitored. Active governance requires individuals in positions of responsibility to exercise a duty of care beyond merely being honest themselves. Taking a long run historical perspective and reviewing a selection of British financial frauds and scandals, from the South Sea Bubble to the Global Financial Crisis, the paper notes the periodic occurrence of waves of opportunity and the evolutionary response of passive governance mechanisms.
ABSTRACT Accounting-based risk management (ABRM) is a theoretically consistent and practical tool... more ABSTRACT Accounting-based risk management (ABRM) is a theoretically consistent and practical tool for calculating the cost of capital from underlying financial ratios. In this paper, a sample of ABRM-generated discount factors is used to generate risk-adjusted returns, which are compared to CAPM equivalent discount factors. In view of the debates about CAPM's validity, alternative models, the nature and scale of the equity risk premium, and the importance of discount rates in capital budgeting and asset valuation, ABRM's characteristics and resulting discount rates offer a potentially useful alternative. Results suggest that although average discount rates are comparable, their cross-sectional distributions are dissimilar, so that investors in an average risky firm are overcompensated for systematic risk when using CAPM discount rates, because CAPM discount factors overestimate risk arising from fixed costs in most firms.
The York Management School This paper is circulated for discussion purposes only and its contents... more The York Management School This paper is circulated for discussion purposes only and its contents should be considered preliminary.
The paper sets out a theoretical model linking stock market financial risk to labour market condi... more 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.
The objective of the paper is to explain the development and characteristics of corporations, in ... more The objective of the paper is to explain the development and characteristics of corporations, in particular, the scale and scope of the firm's activities. Using theoretical analysis, analytical models, and historical and modern examples the paper aims to synthesise the characteristics of scale and scope economies with processes of accountability to external stakeholders. It begins by examining the nature of the conventional financial balance sheet and then goes on to examine an alternative balance sheet view of the firm. It then seeks to offer an explanation of changes in the scope of firms' activities, presenting a knowledge-based view of entrepreneurship. Finally it offers an explanation of the characteristics of business networks.
This is a repository copy of Economic development, climate change and the limitations of corporat... more This is a repository copy of Economic development, climate change and the limitations of corporate social responsibility.
The York Management School This paper is circulated for discussion purposes only and its contents... more The York Management School This paper is circulated for discussion purposes only and its contents should be considered preliminary.
... the subsequent use of plantation profits in industrial capital formation, slavery had little ... more ... the subsequent use of plantation profits in industrial capital formation, slavery had little ... Newton shows that whilst ownership concentration led to more rule-based and centralised ... Political influences, and, as White demonstrates, Anglo-American Cold War diplomacy dictated the ...
This paper examines the relationship between public houses or 'pubs' and house prices in Great Br... more This paper examines the relationship between public houses or 'pubs' and house prices in Great Britain. Using a unique dataset, comprising statistical indicators for 373 local authorities registered between 2005 and 2015, the authors investigate this relationship from a panel data perspective. The analysis identifies a strong positive association between an increase in the number of pubs and house prices, showing different patterns with regard to pubs located in urban, suburban and rural areas. Results offer an original contribution to the literature related to the economic value of pubs as important third places in Great Britain, providing the basis for potential policy choices aimed at supporting community investment.
The paper presents a conceptual framework of financial fraud based on the historical interaction ... more The paper presents a conceptual framework of financial fraud based on the historical interaction of opportunity and impediment. In the long run the character of opportunity is determined by the technical characteristics of assets and their unique, unknowable or unverifiable features. Impediment is promoted by consensus about the real value of assets, such that through active governance processes, fraudulent deviations from real value can be easily monitored. Active governance requires individuals in positions of responsibility to exercise a duty of care beyond merely being honest themselves. Taking a long run historical perspective and reviewing a selection of British financial frauds and scandals, from the South Sea Bubble to the Global Financial Crisis, the paper notes the periodic occurrence of waves of opportunity and the evolutionary response of passive governance mechanisms.
ABSTRACT Accounting-based risk management (ABRM) is a theoretically consistent and practical tool... more ABSTRACT Accounting-based risk management (ABRM) is a theoretically consistent and practical tool for calculating the cost of capital from underlying financial ratios. In this paper, a sample of ABRM-generated discount factors is used to generate risk-adjusted returns, which are compared to CAPM equivalent discount factors. In view of the debates about CAPM's validity, alternative models, the nature and scale of the equity risk premium, and the importance of discount rates in capital budgeting and asset valuation, ABRM's characteristics and resulting discount rates offer a potentially useful alternative. Results suggest that although average discount rates are comparable, their cross-sectional distributions are dissimilar, so that investors in an average risky firm are overcompensated for systematic risk when using CAPM discount rates, because CAPM discount factors overestimate risk arising from fixed costs in most firms.
The York Management School This paper is circulated for discussion purposes only and its contents... more The York Management School This paper is circulated for discussion purposes only and its contents should be considered preliminary.
The paper sets out a theoretical model linking stock market financial risk to labour market condi... more 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.
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