Private Ownership versus Institutional Ownership: Exclusion Pricing of Initial Public Offerings

The authors examine the literature with respect to the pricing of initial public offerings and focus upon the relationship of pricing to the structure and conduct of the investment banking industry. Using a data base of all share offerings undertaken in the United States over a two and a half year period, the authors find that there is considerable evidence for the proposition that large, prestigious, and well capitalised investment banks tend to price their share offerings at a higher absolute level than those not meeting such characteristics. Using classical statistical methods, the authors find that the pricing strategy of investment banks is connected to their affiliation with investment funds and unit trusts. The motives for such pricing strategies, the authors argue, lie with the affiliation of investment banks with investment funds, suggesting that the pricing of new share offerings may be a means of excluding retail investors from participating in the strong returns such issues exhibit. The authors raise legal and regulatory implications of their findings in the context of the general consolidation observed within the investment banking industry. This revised version was published online in July 2006 with corrections to the Cover Date.     

Work and Work Alternatives for Disabled Young People

This paper presents results from a population based action research study in East Devon of the needs of 383 young people aged 16-25 years with a whole range of impairments and disabilities, and 152 able-bodied controls. A comparison between these two groups is made of their current and past experiences of work and work alternatives. The aspirations and expectations of the disabled young people are also compared with those of their families and service providers, and the preferred occupations of the young people, with various profiles of disability, are explored. Although the analysis pinpoints groups of disabled young people with particularly high levels of employment handicap, there is, throughout the study group, a need for progress out of static or unstable occupational paths. The handicapping features of employment services that impede this progress are discussed together with an examination of society's response to high levels of unemployment among disabled people. The research findings, set within this context, provide a basis for action research now being undertaken in local communities within East Devon to improve employment opportunities.     

Who Cares about Water Pollution? Opinions in a Small-Town Crisis*

A survey was conducted in a small New England town following the discovery that the town's water supply had become contaminated by industrial chemicals. Principal findings include: (1) respondents from more affluent households were more concerned about the pollution problem; (2) long-term or older residents tended to be less concerned; and (3) women with young children viewed the problem as particularly serious. The first two findings are consistent with previous research on similar “technological catastrophes” and on environmental protection in general. The third finding has not appeared in environmental protection research, but it is consistent with reports from Three Mile Island. Such technological catastrophes transform environmental issues into safety issues, thereby raising parents’anxieties about the safety of their children–perhaps more so for women than for men. These safety concerns may eventually be generalized to broader environmental issues, as toxic waste and other disasters continue to occur.     

The advantages and disadvantages of different social welfare strategies

This paper presents a framework for consideration of change in or reform of social welfare systems. The author describes characteristics of the approaches to providing social welfare most commonly used in North America and western Europe. These include social insurance, employer mandates, individual mandates, voluntary arrangements (tax expenditures), means-tested programmes, and universal programmes (demogrants). He then evaluates each of the approaches in terms of its ability to achieve a set of social and economic objectives. The social protection objectives include treating people with dignity and respect, assuring complete coverage, equitably distributing costs and benefits, and operating efficiently to lower overhead. The objectives important to promoting a healthy economic environment include encouraging individual saving and work effort, fostering government fiscal responsibility, and facilitating smooth market functioning. The author concludes that there is no one correct way to organize social welfare systems, that each approach has strengths and weaknesses, and that different societies will attach different priorities to different objectives. Thus, as social goals change, we may expect that the particular mix of approaches used will also evolve and change over time.